Insurance Journal West 2021-04-19 by Insurance Journal

APPLIED PROTECTS THE TITANS OF INDUSTRY. ®

Accepting large workers’ compensation risks. Most classes. All states, all areas, including New York City, Boston, and Chicago. Few capacity and concentration restrictions. Simplified financial structure covers all exposures.

EXPECT THE WINNING DEAL ON LARGE WORKERS’ COMPENSATION. Call (877) 234-4450 or visit auw.com to get a quote.

April 19, 2021 • Vol. 99 No. 8

Contents

Idea Exchange

Special Report

News & Markets

Tech Firms Under More Scrutiny, Unhappy with D&O Insurance

New Federal Flood Insurance Rating Plan to Start Oct. 1

12 P/C Insurers Show 2020

Underwriting Profits Despite COVID-19: Fitch

14 Q1 Activity Signals Record

Insurer M&A Deals Ahead in 2021: S&P

Supreme Court Declines to Hear Appeals on Workplace Religious Bias

27 Businesses Filing More

30 Special Report: What

Young Agents Think Survey: Optimism High Among Young Agent Leaders

What Young Agents Like MOST

What Young Agents Like LEAST

36 How Young Agents See Diversity

COVID Lawsuits and the Stakes are Higher

Engaging and Developing Younger Generations

Tech Talk: Finding Best and Brightest Agency Talent Demands New Approach

The Competitive Advantage: Why Agencies Need to Improve Key Metric Measurements

Fearlessness Forecasts Success

Minding Your Business: 10 Rules for Family Businesses

Ask the Insurance Recruiter: Three Steps to Improve Your Hiring Process

Closing Quote: Why Nonstandard Auto Is More Critical Than Ever

Departments 6 Opening Note 4 | INSURANCE JOURNAL | APRIL 19, 2021

10 Figures

11 Declarations

17 Business Moves

20 People

26 My New Markets

INSURANCEJOURNAL.COM

Your Best Choice for Contractor General Liability You have many choices when it comes to your contracting risks, which is why we have worked hard to make our exclusive product your best choice. The Best Choice program is built in partnership with CNA, an ‘A’ rated premier carrier and one of the largest U.S. Commercial Property and Casualty insurance companies, providing over 120 years of experience, and it’s only available at BTIS. Learn how your business can make the best choice at: hub.btisinc.com/bestchoice Or give us a call at 855.359.5529

HIGHLIGHTS • Quote and bind online in minutes No apps or supplementals

• eSignature for faster, contactless processing • Faulty Workmanship Coverage Endorsement • Contractors Miscellaneous Tools & Small Equipment Coverage • Optional business description limitation buy-back for residential & commercial carpentry • No fee blanket additional insured endorsements • Sub costs up to $100,000 or 25% of annual gross receipts, whichever is higher • ‘A’ Rated by A.M. Best (04/20) TOP CLASSES • Door/Millwork Installation - metal

• Plumbing Residential

• Carpentry Interior

• HVAC no LPG

• Painting Interior/Exterior

• Landscape Gardening

• Plumbing Commercial

• Handyman

• Tile/Stone Installation

• Drywall

Opening Note Write the Editor: awells@insurancejournal.com

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

What Young Agents Think

his issue of Insurance Journal features exclusive results from the 2021 Young Agents Survey where nearly 300 young agents nationwide shared their views on the insurance industry and their experience as an agent. (see page 30 for the full report). This special report also features the professional stories of six successful young agents and young agency owners. They share their own journey into the insurance world, how they overcame challenges from the pandemic, and offer a few tips on what it takes to make it as an independent agent. Also, don’t miss The Jacobson’s Group’s Tony Cañas column on how to engage and develop the younger generation of insurance professionals. (see page 38) This year’s Young Agent Survey revealed a renewed sense of optimism. Most young agents are happy with their career choice and the insurance industry. And year after year young agents cite the freedom and challenges that come with the job of an independent agent as perks of the job. However, there are some things young agents would change about the insurance industry, or their career, if given the chance. Here are the top 10 things that young agents responding to the survey value most in their current workplace. What do you offer your young agents? 1. Compensation and flexibility for my family life. 2. Having a great support staff and a good compensation package. 3. Flexibility, listening to ideas, and compensation. 4. A manager that allows staff who are good at their jobs to work without micro-management. 5. Camaraderie, support, on-the-job training with a mentor. 6. Honesty, respect, and appreciation. I do not stay in work environments that do not have these things. 7. The ability to work at home because it helps your mental health. 8. Flexibility, open door policy from leadership, a fun environment with work-life balance. 9. Teamwork and communication. 10. Empathy, understanding and compassion.

‘A good workplace environment includes positive internal agency relationships, providing good work-life balance, and competitive compensation.’

Andrea Wells Editor-in-Chief 6 | INSURANCE JOURNAL | APRIL 19, 2021

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: Tony Caldwell, Tony Cañas, Troy Korsgadens, Jim Sams Columnists: Chris Burand, Mary Newgard, Catherine Oak, Tom Wetzel

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 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

SUBSCRIPTIONS:

Call (855) 814-9547

or visit ijmag.com/subscribe

Outside the US, call (847) 400-5951 Insurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semi-monthly by Wells Media Group, Inc., 3570 Camino del Rio North, Suite 200, San Diego, CA 92108-1747. Periodicals Postage Paid at San Diego, CA and at additional mailing offices. SUBSCRIPTION RATES: $7.95 per copy, $12.95 per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this publication is derived from sources believed reliable and is subject to reasonable care in preparation and editing, it is not intended to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult competent professionals for application to their particular situation. Copyright 2021 Wells Media Group, Inc. All Rights Reserved. Content may not be photocopied, reproduced or redistributed without written permission. Insurance Journal is a publication of Wells Media Group, Inc. POSTMASTER: Send change of address form to Insurance Journal, Circulation Dept, PO Box 708, Northbrook, IL 60065-9967 ARTICLE REPRINTS: Contact (800) 897-9965 x125 or visit insurancejournal.com/reprints

“Price, coverage,

service, access and longevity rarely come together. PHLY checks all the boxes.”

Philadelphia Insurance Companies offers an extensive package of risk protection services. From general, professional and excess liability to automobile, property, and management liability lines including protection for directors and officers, employment practices, crime, fiduciary, cyber and more. Few carriers can bring it all together like PHLY. Experience the PHLY difference.

Call 800.873.4552 Visit PHLY.com

Tom Morrin Sr. Vice President The Graham Company

AM Best A++ Rating

Ward’s Top 50 2001-2020

97.4% Claims Satisfaction

120+ Niche Industries

Philadelphia Insurance Companies is the marketing name for the property and casualty insurance operations of Philadelphia Consolidated Holding Corp., a member of Tokio Marine Group. All admitted coverages are written by Philadelphia Indemnity Insurance Company. Coverages are subject to actual policy language.

News & Markets New Federal Flood Insurance Rating Plan to Start Oct. 1

By Alwyn Scott

undreds of thousands of Americans will pay significantly more to insure their homes in coastal areas and flood zones under new rules released this month by the Federal Emergency Management Agency (FEMA), the first major update to its pricing system in half a century. The agency said that, over the coming year, it will

phase in a price-setting method that marks an epochal shift in the National Flood Insurance Program (NFIP), which was set up in 1968 to cover property in flood-prone areas. New premiums will be based on a property’s value, risk of flooding and other factors, rather than simply on a property’s elevation in a flood zone. They will take effect on Oct. 1, 2021, for new policies and April 1, 2022, for the rest, FEMA said.

The NFIP currently provides $1.3 trillion in coverage through more than 5 million policies in the U.S., but has been losing money for years and is currently $20.5 billion in debt. The new rules will mean hefty increases for expensive properties in wealthy coastal enclaves, said Jeremy Porter, head of research and development at First Street Foundation, a Brooklyn-New York based nonprofit that

studies flood risk. Current flood zone-based pricing was “basically a subsidy to people,” Porter said. Under FEMA’s new system, “pricing is based on your insurance risk.” FEMA said it expects 4%, or more than 200,000 policies, will see significant premium increases, while about 1.15 million will see decreases, noting the change makes prices “more equitable.” In a study released in February of flood-prone properties rather than policies, First Street determined that more than 4 million would face increases and the average premium in flood zones would be $7,895 a year. The numbers in First Street’s study are higher than FEMA’s because only about 30% of flood-prone properties carry NFIP coverage, Porter noted. The changes mark the first update to FEMA’s pricing methods in 50 years, and are based on updated technology and FEMA’s evolving knowledge of flood risk.

2021 Copyright Reuters. 8 | INSURANCE JOURNAL | APRIL 19, 2021

INSURANCEJOURNAL.COM

The Network That Works! Join the Commercial Insurance Network that Works for You!

Smart Choice has allowed me to get direct appointments with carriers that I wouldn’t have been able to get on my own or even through referrals.

Our revenue has been significantly bolstered working with Smart Choice – we’re hitting bonus multipliers we wouldn’t be able to reach otherwise – like 4.5% in aggregate instead of 2.5%.

Gain access to top-tier carriers, grow your business and qualify earlier for profit sharing -- all with lower production requirements. These independent agents chose Smart Choice, shouldn’t you?

•

NO FEES – EVER

•

ADD SUPPORT – WITHOUT ADDING PAYROLL

•

RETAIN OWNERSHIP – NO BUY BACKS

•

ACCESS TO 100+ CARRIERS – AND 3,000 PRODUCTS

•

GROW YOUR BOOK – INCREASE YOUR REVENUE

•

COMMERCIAL – PERSONAL – EXCESS – LIFE

The impact on our agency has been significant. We were able to reach the commission cap in a very short period of time which now allows us to be paid 100% of the commission from the carriers. We also qualified for profit sharing this year which greatly impacted our agency’s revenue.

Partnering with Smart Choice has had a HUGE impact. I have grown my business far more than I could have expected.

Contact us and find out why more independent agents choose Smart Choice than any other insurance network. WWW.SMARTCHOICEAGENTS.COM

888.264.3388

Figures

$225K The amount for which a Fargo, N. D., birdseed production company has settled with OSHA following an investigation into a severe and life-altering injury to an employee. The probe stemmed from an incident in August 2020 when a Red River Commodities employee suffered multiple lacerations and the partial amputation of his leg when caught in an operating grain bin auger. OSHA cited the company for numerous workplace safety violations.

2.9 Billion

The amount of loss caused by Hurricane Delta in the U.S., the National Hurricane Center said in a recent report. The hurricane, which swept ashore in southwestern Louisiana in early October 2020, was linked to six deaths in the U.S. and Mexico, the NHC said. Delta made landfall as a Category 2 storm near Creole, La. 10 | INSURANCE JOURNAL | APRIL 19, 2021

10,000 The number of homes damaged in Alabama and Georgia after “supercell” storms swept across the region in March, according to catastrophe modeler CoreLogic. CoreLogic said the severe weather outbreak was especially dangerous because of long-tracked tornadoes, one of which extended for more than 100 miles. The storms also led to flash flooding across portions of Tennessee, with many areas receiving between six to eight inches of rain and some receiving more than 10 inches, leading to Nashville’s second wettest two-day rainfall total in history.

$500,000 The Maryland Insurance Administration (MIA) issued civil administrative orders carrying penalties of nearly this amount against five individuals and four companies for insurance fraud and acting as public adjusters without a license. After its investigations, the administration imposed a combined $480,000 in administrative penalties in three administrative orders. Reports of these activities often follow disasters or storms and have spiked during the pandemic, the administration added in a press release. INSURANCEJOURNAL.COM

Declarations Virus Lawsuit Liability

“This is the most aggressive COVID liability bill in the United States of America. What this bill does is says, ‘If you’re doing the right thing, you’re protected.’” — Florida House Speaker Chris Sprowls on the state’s new COVID-19 liability law that protects Florida businesses, governments and healthcare providers from coronavirus lawsuits if they made a good effort to follow guidelines to prevent the spread of the virus. In order for a lawsuit to move ahead, a plaintiff would have to show that the defendant deliberately ignored guidelines. The measure’s opponents said it will deny access to the courts for people who were damaged by the disease or whose relatives died from the virus. The bill was signed into law by Gov. Ron DeSantis on March 29.

No BI Coverage Trigger

“While the court is sympathetic to the economic consequences resulting from the closure of plaintiff’s movie theater, the court concurs with the majority view that loss of use of the premises due to COVID-19 related government orders does not constitute direct physical loss of or damage to property that would trigger business income coverage under the policy.” — Justice Timothy Driscoll wrote in the Supreme Court of the state of New York, Nassau County, decision dismissing a movie theater’s claims that its insurer is responsible for covering its COVID-19 related losses and that its insurance brokers were negligent in providing insufficient coverage. The Supreme Court found that the brokers were not negligent, as Soundview’s inability to recoup its COVID-19 losses from its insurers was not a result of the brokers’ ability to provide adequate coverage.

COVID-19 Lawyer Shield

“Trial lawyers are getting upset about this because they can’t take things to litigation.” — Rep. David Cook, a Republican from Globe, Ariz., explained why he voted for a measure to give businesses, nursing homes and others a broad shield from lawsuits related to COVID-19.

Ford v. State Court Lawsuits

Medical Care Kickbacks

“Instead of basing decisions on patient needs, these health care providers sought to maximize their own income. Activities like this reflect a complete lack of patient care.” — Debra Knight, deputy commissioner of Compliance and Investigations for the Texas Department of Insurance, Division of Workers’ Compensation, said after the final defendants in a North Texas medical center healthcare and workers’ comp fraud scheme were sentenced. The DWC said surgeons, physicians and hospital administrators received kickbacks for steering patients, including many in the workers’ comp system, to Forest Park Medical Hospital. Fourteen defendants were sentenced to a combined 74-plus years in federal prison and ordered to pay $82.9 million in restitution. INSURANCEJOURNAL.COM

“By every means imaginable — among them, billboards, TV and radio spots, print ads, and direct mail — Ford urges Montanans and Minnesotans to buy its vehicles. … Ford cars … are available for sale, whether new or used, throughout the States, at 36 dealerships in Montana and 84 in Minnesota. And apart from sales, Ford works hard to foster ongoing connections to its cars’ owners.” — U.S. Supreme Court Justice Elena Kagan wrote in a majority opinion after the Court concluded Michigan-based Ford Motor Co. can be sued in the state courts of people who were killed or seriously injured in accidents involving Ford vehicles. The justices unanimously rejected the company’s argument that its ties to Minnesota and Montana were too tenuous to allow it to be sued in those states by accident victims.

CNA Cyberattack

“We are well into the restoration phase and making significant progress across our internal systems to return our environment to a fully operational state.” — Chicago-based commercial lines insurer, CNA, commented in a statement on the expected return to fully operational status of corporate email and other functions as it continued to recover from a March 21 cyber attack. In an April 1 security update, the company said it is now safe to conduct business and communicate with the insurer via email. APRIL 19, 2021 INSURANCE JOURNAL | 11

News & Markets P/C Insurers Show 2020 Underwriting Profits Despite COVID-19: Fitch

espite considerable operating challenges in 2020 from the global COVID-19 pandemic, U.S. property/ casualty (P/C) insurers saw a statutory underwriting profit for the third consecutive year, with an average 99% combined ratio, according to Fitch Ratings in a new report. In addition to the fallout from the pandemic, U.S. P/C insurers faced a deluge of catastrophe events, including several hurricane landfalls, California wildfires, a Midwest derecho and claims from civil unrest, which added substantially to the 2020 industry loss ratio, said the report titled “U.S. Property/Casualty Market Update: Results Stable Despite 2020 Challenges; Hardening Market Boosts Profit Opportunity.” This higher catastrophe loss experience was offset by core loss ratio improvement in commercial property and liability lines as a result of “substantial recent price increases and re-underwriting efforts, as well as sharp improvement in personal and commercial auto results tied to reductions in claims frequency in the pandemic-induced economic downturn,” the report explained. While industry policyholder surplus dropped sharply in Q1 2020 from equity market turmoil, asset markets rebounded and operating earnings materialized resulting in a record surplus increase to $914 billion at year-end, added Fitch.

Underwriting Performance in 2021

Fitch predicted that new claims related to the coronavirus pandemic would gradually subside in 2021. “Underwriting performance is anticipated to improve in 2021, largely due to continued positive pricing momentum in commercial lines, barring another year of substantially higher than historical norm catastrophe losses,” said the report, noting that the combined ratio is projected to shift downward to 96%–97% in 2021. “Market surveys indicate that pricing continues to increase at a level unseen since 2003, the last true commercial lines 12 | INSURANCE JOURNAL | APRIL 19, 2021

hard market,” continued Fitch. “Rate increases are driven by past larger catastrophe losses in property lines, poor experience tied to claims severity and rising litigation-related costs in liability segments, and the introduction of considerable claims uncertainty tied to pandemic-related losses.”

Pandemic Claims Uncertainty

Several product segments have pandemic-related commercial insurance claims, which are likely to be subject to litigation that will take several years to resolve, such as business interruption and professional

liability, including directors and officers, errors and omissions, and employment practices liability coverage, said Fitch. “To date, the industry largely has been successful in maintaining that physical damage to property is required to trigger a BI loss. However, individual litigation outcomes remain a source of uncertainty, given the remaining large volume of outstanding claims and suits.” Fitch said, the long-term health effects of the coronavirus and success of vaccination efforts are not fully known. The potential longer-term effects, “particularly for healthcare industry workers, could prove a source of greater future workers’ compensation losses.” On a more positive note, Fitch explained, insurers may experience favorable 2020 accident-year reserve movement tied to underestimating benefits from claims frequency declines in such segments as automobile insurance, workers’ compensation and general liability. Further, considerable uncertainty

remains regarding ultimate costs and consequences for the industry of the pandemic, said Fitch, which recently reported that the coronavirus would cost approximately $9 billion in incurred losses for 50 publicly traded North American re/ insurers. When including Lloyds of London and large European multinational insurers, losses total more than $30 billion, said Fitch, noting that additional incurred losses are likely to be reported in the coming year, but at a reduced volume compared with 2020. Other highlights on U.S. insurers in the Fitch report include: • Insurers may experience favorable 2020 accident-year reserve movement tied to underestimating benefits from declining claims frequency in segments such as auto and workers’ compensation. • All catastrophe losses added approximately 8 points to the 2020 industry loss ratio versus a historical norm of 4.5 points. • Workers’ comp remained highly profitable due to continued strong favorable reserve development. Further, workers’ comp experienced the most abrupt premium decline tied to the sudden change in employment and continued weak pricing trends. • The loss ratio in personal and commercial auto declined by 8 and 7 percentage points, respectively, as a result of sharp claims frequency declines during 2020. • Commercial auto rates rose last year by an average of 10%. • Long-tail liability segments, including umbrella business, experienced the highest rate increases of any segment in 2020. Commercial property increases averaged 13% for the year. • Other liability lines were the only major segment to see increasing premium growth as price increases accelerated in response to past poor experience and the uncertainty of pandemic-related claims in multiple areas. • Homeowners and commercial property loss ratios increased by 9 and 8 points, respectively. INSURANCEJOURNAL.COM

News & Markets Q1 Activity Signals Record Insurer M&A Deals Ahead in 2021: S&P

nsurance carrier mergers and acquisitions could reach historic levels in 2021 based on early indications from a robust first quarter, according to a new Standard & Poor’s report. U.S. and/or Bermuda based acquirers or acquisition targets achieved an aggregate deal value of nearly $21.2 billion, the S&P Global Market Intelligence report found. That result exceeded the full year tallies from 2019 ($19.6 billion) and 2020 ($19.4 billion). Early data suggests insurance carrier M&A activity could double for all of 2021 compared to previous years to more than $40 billion, and the report suggests it “could mark one of the strongest years in the last quarter century.” Two companies could shape that final 2021 deal value number: The Hartford and AIG. Chubb made a failed $23 billion takeover offer for The Hartford, in March, but industry observers expect the insurer to remain an enticing target. The S&P report notes that The Hartford’s future independence is 14 | INSURANCE JOURNAL | APRIL 19, 2021

in doubt, and its acquisition could spike the M&A deal-making total considerably higher. Another factor that could push the insurance industry M&A deal total even higher: When and how AIG plans to separate its life and retirement business. Potential options include an initial public offering, but the insurer has signaled it is open to a private sale of a nearly 20% stake in the business. If The Hartford is sold and AIG finds a partner to invest in its life and retirement business, S&P said aggregate M&A deal value could surpass $71.6 billion – a level surpassed twice in the last 24 years with inflation factored in.

P/C Versus Life

Deal value for the life, annuity, accident and health insurance sector in 2021 could hit between $29 billion and $32 billion, depending on whether AIG’s plans to sell part of its life and retirement business go through. This is a high point life insurance hasn’t reached since 2001, S&P noted, when AIG beat out Prudential to acquire American General.

On the other hand, deal value for P/C carrier transactions are as low as they’ve been for a first quarter since 2013, S&P said, hitting at just $923.5 million. S&P predicts P/C deal value for the year will ultimately hit around $10.5 billion. This figure factors in median inflation-adjusted activity for the final three quarters of the previous 10 years That added to the Q1 total. number will surpass $38.9 billion, S&P said, if The Hartford is sold, “at price that approximates the tangible book multiples that ACE Ltd. agreed to pay in its 2016 acquisition of Chubb Corp…” There’s at least one factor that could affect the ultimate M&A deal value for carriers: Biden increasing the corporate tax rate from 21% to 28% as proposed. “Anticipation that a Biden administration and a Democratic Congress would raise the top individual tax bracket led to a surge of broker/agency deal making in December 2020,” the S&P report notes. “Whether history repeats itself in 2021 may ultimately depend on the contents, timing and legislative manifestation of those ideas.” INSURANCEJOURNAL.COM

Celebrating 20 Years! #InsurBanc_Can Your agency needs growth opportunities to enhance your value. And you need the right business partners to make that happen. With capabilities in 50 states and 20 years of experience, InsurBanc has in-depth insurance knowledge for financial insights, capital and cash management services, and can help you build a strong foundation.

InsurBanc.com/Can

866.467.2262

THINK AGAIN. Our expertise in professional lines goes beyond serving niche markets. We are a full-service underwriting and claims handling facility for Management Liability, Financial Institutions Liability, Professional Liability and Medical Professional Liability. We contemplate a full range of exposures, from small to large and from conventional to cutting-edge. Whether you are a private company, non-profit, financial institution, public company or a group or individual, Hudson’s seasoned team of underwriters will craft personalized products that fit your needs. When there’s no room for error, THINK HUDSON.

Rated A by A.M. Best, FSC XV

HudsonInsGroup.com Coverages underwritten by Hudson Insurance Company and Hudson Excess Insurance Company.

Business Moves better by A.M. Best. After the transaction, the staff of CBIG’s LPL programs will remain in place, led by Neil P. McGowan. All of CBIG’s brokers will receive automatic, initial appointments with McGowan and its full range of products and capabilities. Coverage is available in all 50 states and Washington, D.C.

Midwest

Kemper Corp., American Access

Casualty

National

East

Private equity firm Odyssey Investment Partners has joined with management of SIAA (Strategic Insurance Agency Alliance), the nation’s largest alliance of independent insurance agencies, to acquire the company. New Hampshire-headquartered SIAA says its model and operations will remain unchanged under the new ownership plan. Jim Masiello, SIAA’s chairman and founder, will retire after a successful career in the insurance industry as a “champion for independent insurance agents,” according to the announcement. CEO Matt Masiello will continue to lead the organization along with the rest of the SIAA management team. SIAA was founded in 1995. It was created to serve larger retail insurance agencies and was modeled after SAN Group, a partnership formed in 1983 that focused on small agencies. Insurance Journal ranks SIAA as the largest agency partnership. At year-end 2020, SIAA reached $9.6 billion of total in-force premium, up from $8.9 billion at YE 2019. SIAA also signed 527 new member agencies last year, the second highest number in the history of the company. Odyssey’s portfolio of insurance firms also includes Tysers (formerly Integro), MontpelierRe and York Insurance Services. Goldman Sachs served as financial advisor to SIAA on the sale while Odyssey was advised by Piper Sandler.

& Stone

Odyssey Partners, SIAA

INSURANCEJOURNAL.COM

Hub International Limited, Finn Global insurance brokerage Hub International Limited has acquired the assets of Finn & Stone Inc. Finn & Stone Principals Chip and Jonathan Ams and the Finn & Stone team will join Hub New England. Finn & Stone is a full-service independent insurance agency with locations in Manchester and Springfield, Vermont. It has been providing personal and business insurance solutions to the southern Vermont community for 60 years. Headquartered in Chicago, Illinois, Hub International Limited is a full-service global insurance broker providing risk management, insurance, employee benefits, retirement and wealth management products and services. It aims to grow organically and through acquisitions to expand its geographic footprint and strengthen industry and product expertise.

The McGowan Companies, Couch Braunsdorf Insurance Group

The McGowan Companies, based in Fairview Park, Ohio, has acquired the assets of the wholesale division of Liberty Corner, New Jersey-headquartered Couch Braunsdorf Insurance Group Inc. CBIG’s wholesale division will be re-branded under the McGowan brand. CBIG’s wholesale division specializes in writing lawyers professional liability. CBIG administers multiple, exclusive LPL programs through carriers rated “A” or

Kemper Corp. has closed its previously announced acquisition of Downers Grove, Illinois-based American Access Casualty Co. and its related captive insurance agency, Newins Insurance Agency Holdings LLC, and its subsidiaries (collectively AAC). AAC provides specialty private passenger auto insurance in Arizona, Illinois, Indiana, Nevada and Texas. Pursuant to the terms of the acquisition agreement dated Nov. 22, 2020, the total cash transaction is valued at approximately $370 million. AAC’s multi-channel distribution strategy, agency relationships and deep ties to the markets it serves — particularly Hispanic communities — have driven strong growth and consistent profitability, according to Kemper’s November 2020 announcement.

Hub International, KC Insurance Group

Chicago-based Hub International Limited has acquired the assets of KC Insurance Group LLP in Overland Park, Kansas. KC Insurance Group is an independent insurance agency serving the Kansas City area and specializing in personal lines insurance. The agency offers a wide variety of products including auto, home, renters, boat, motorcycle and umbrella insurance. Cory Schnabel, owner of KC Insurance Group, and the agency’s team will join the Hub Mid-America region.

South Central

Relation Insurance, McGhee Insurance Northwest Arkansas Relation Insurance Services Inc., based

continued on page 18

APRIL 19, 2021 INSURANCE JOURNAL | 17

Business Moves continued from page 17 in Walnut Creek, California, has acquired the assets of The McKinney Group, dba McGhee Insurance Northwest Arkansas, in Rogers, Aarkansas. The acquisition represents Relation’s entry into Arkansas. McGhee serves personal and commercial line clients in the Northwest Arkansas area. McGhee, led by Brandi McKinney, will join Relation’s Central Region. Relation Insurance Services is an insurance brokerage that offers risk management and benefits consulting services through its family of brands across the U.S.

Keystone Agency Investors, Garrett Insurance Agency

Pennsylvania’s Keystone Agency Investors (KAI) has partnered with Kerrville, Texas-based Garrett Insurance Agency to facilitate KAI’s entry into that state. Founded in 1918, Garrett Insurance Agency is an independent insurance agency offering a suite of personal, commercial, group health insurance, financial services and workers' compensation. The company’s product suite includes coverage for farms and ranches, business owners, consultants, manufacturers, contractors, professionals and many others. The team also features an in-house subsidiary — Frantzen, Kaderli & Klier — to specifically handle agricultural business placement and benefits. KAI is a strategic partnership between Keystone Insurers Group and Bain Capital Credit. Its partnership structure allows owners to monetize their most important asset while continuing to operate their agencies, leveraging growth through enhanced resources and support as they prepare for leadership succession. Penwell Bowman + Curran LLC provided legal counsel to KAI on the transaction, and Reagan Consulting Inc. provided due diligence advisory.

Southeast

Alera Group, E3 Outsource

Alera Group, an employee benefits, financial services and risk management company, has acquired E3 Outsource, an 18 | INSURANCE JOURNAL | APRIL 19, 2021

employee benefits management and technology firm. The E3 Outsource acquisition provides enhanced employee benefits services to Alera Group clients in more than 100 locations throughout the country. Headquartered in Lake Mary, Florida, and serving clients throughout the country, E3 Outsource offers an employee benefits helpline for clients and their employees. According to Bernie Falco, president of E3 Outsource, joining Alera Group will allow the company to increase collaboration and resources for companies nationwide. The E3 Outsource team will continue serving clients in their existing roles. Alera Group has more than $500 million in annual revenue offering employee benefits, property/casualty, retirement services and wealth management services to clients across the U.S.

Sterling Seacrest Partners, Pritchard & Jerden

Sterling Seacrest Partners Inc. and Pritchard & Jerden will merge and operate as Sterling Seacrest Pritchard. The newly merged firm will employ more than 300 insurance agents and service team members with eight offices in Atlanta, Birmingham, Columbus, Little Rock, Savannah and Tampa. Sterling Seacrest Pritchard will offer clients a risk management and employee benefit program platform.

West

Marsh & McLennan Agency, PayneWest

Marsh & McLennan Agency LLC has acquired Missoula, Montana-based PayneWest Insurance. PayneWest will operate as MMA’s Northwest regional hub under PayneWest CEO Kyle Lingscheit. Lingscheit will report to MMA Chairman and CEO David Eslick. All of PayneWest’s more than 700 employees will join MMA and continue to work from its 26 locations across the region. PayneWest provides business insurance, surety, employee benefits and personal insurance services to companies and individuals across the Northwest through

offices across Idaho, Montana, Oregon and Washington. MMA is a subsidiary of Marsh established in 2008 to serve as a platform for the middle market. MMA offers commercial property/casualty, personal lines and employee benefits to midsize businesses and individuals across North America.

K2 Insurance Services, Loss Run Pro

K2 Insurance Services, based in San Diego, California, has invested in Loss Run Pro LLC (LRP), headquartered in Missoula, Montana. LRP is a subscription software service that simplifies the loss run process by automatically generating and delivering loss run requests. LRP also provides tracking and other tools to improve this process. LRP’s technology allows loss runs to be generated, signed and delivered electronically via a computer or mobile device. Brenden Corr is the senior director of Business Development for LRP and will work to expand and build relationships with carriers and brokers, both nationally and internationally.

MS Amlin, International Transportation Marine Agency

MS Amlin is acquiring managing general agency International Transportation and Marine Office and its associated subsidiaries. Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals. The primary subsidiary International Transportation & Marine Inc. provides marine and other specialty lines of insurance. ITMA specializes in light commercial trucking and offers coverage for auto physical damage and motor truck cargo products unbundled from the auto liability exposure. ITMA partners with appointed producers at both the wholesale and retail levels. Don Kaitz will retain his role as chairman of Arizona headquartered ITMA, and the business will continue to be led by Eric Kaitz, CEO, and remain a stand-alone MGA business. INSURANCEJOURNAL.COM

Program Administrators

COMMUNITY ASSOCIATIONS DIRECTORS & OFFICERS PROGRAM PROGRAM OVERVIEW ELIGIBLE “NOT FOR PROFIT” ASSOCIATIONS

PRODUCTS

• Condominium Associations

• Directors & Officers Liability (including EPLI) for Not-For-Profit

• Homeowners Associations (HOAs)

LIMITS

• Cooperatives

• D&O/EPLI limits $1mm to $5mm

• Master Associations

• Excess D&O or Umbrella Coverage Available

• Property Owners Associations • Commercial Associations

TERRITORY

• Timeshares

• Nationwide

• Townhome Associations

CARRIERS

• Mixed Use

• A.M. Best “A” Rated Carriers/Admitted Paper or Higher

SPECIAL FEATURES SPECIAL COVERAGES & FEATURES INCLUDE, BUT ARE NOT LIMITED TO:

• Defense of failure to maintain or obtain insurance claims

• Defense and indemnity of monetary claims

• Third party non-employee discrimination claims

• Defense of non-monetary claims

• Employment Practices Liability and Employee Discrimination claims

• Broad definition of Insured including directors, officers, trustees, the entity, community association/property manager (“CAMS”), volunteers, committee members, employees and leased employees • Defense of breach of third party contract claims

The Fair Housing Act prohibits discriminatory housing practices because of a person’s race or color, religion, sex, national origin, familial status, or disability. Low-income and subsidized housing is eligible.

• Full Prior Acts Coverage • Broad Definition of Wrongful Acts • Personal Injury Offense and Publishers Liability Coverage

Please see quotes and policies for exact terms, conditions, and exclusions. Coverage may vary from policyholder to policyholder, from product to product, and from state to state; therefore terms, conditions, and exclusions of a given policy may not comport with the general information presented in this flyer.

Tim Lee | tlee@mcgowancompanies.com | www.mcgowanprograms.com | 440.333.6300 x3639

People National

Berkshire Hathaway Specialty Insurance (BHSI) has

expanded its U.S. Executive & Professional Lines leadership team, naming Shelley Norman as senior vice president for Management Liability in its Central region, and promoting Kevin Gallagher to senior vice president for Management Liability in its East region and Sean Cox to senior vice president for Management Liability in its West region. Norman joins BHSI after more than 25 years at American International Group (AIG), where she was most recently Financial Lines zonal executive. Her previous roles at AIG include head of Private NonProfit Management Liability for the U.S. and Canada and chief underwriting officer for the Private Non-Profit, Management Liability team. She is based in BHSI’s Chicago office. Gallagher, who has 20 years of industry experience, came to BHSI in 2013 as vice president for Executive Lines. He was previously assistant vice president for Arch Insurance’s Executive Assurance and Financial Lines Group. He is based in BHSI’s New York office. Cox, who has more than 16 years of experience in executive and professional lines, joined BHSI as vice president for Executive Lines in 2014. He was previously assistant regional underwriting manager at AIG. Cox is also based in the New York office.

East

Risk Placement Services (RPS) has

Jeff Harvey

hired Jeff Harvey as executive vice president of casualty for its brokerage division. In this role, he will support growth of the large casualty practice in the Northeast region and provide additional support for the entire country. He will serve out of New York City and report to John Head, president of national brokerage at RPS. This position is a new role created for Harvey and his skill set in the casualty marketplace to support RPS’ growth in this area. Previously, Harvey was excess liability practice leader for the Northeast at Willis Towers Watson.

Union Mutual of Vermont Companies has hired Jennifer Hanus as a marketing

representative responsible for the southern New England writing territories of Connecticut and Western Jennifer Hanus

Massachusetts. She is currently based in Rhode Island. Hanus brings more than 10 years of industry experience to her role with Union Mutual. She has previous experience as an agent, primarily in commercial lines, throughout southern New England and Long Island, New York. She has also worked on the carrier side, starting her career with Liberty Mutual. After a comprehensive training period, Hanus will be introduced to agencies throughout the first quarter. Union Mutual of Vermont Companies, founded in 1874, is a property/casualty insurance group consisting of Union Mutual Fire Insurance

20 | INSURANCE JOURNAL | APRIL 19, 2021

and New England Guaranty Insurance Company Inc., both based in Montpelier, Vermont; and Community Mutual Insurance Company, based in Latham, New York. The three companies write a total of $186 million in direct premium annually through independent agents throughout New England and New York.

Southeast

Southern Insurance Underwriters Inc. (SIU) added Robin Mote to the Commercial

Garage Underwriting team. Mote comes to SIU with more than 30 years of experience in the insurance industry, with the last 14 of those years being in commercial garage. Prior to partnering with SIU, Mote served at another managing general agency as a senior commercial garage underwriter for 14 years. Mote began her career in the insurance industry as a file clerk and later became the claims call center manager. She also has experience writing personal auto. Established in 1964 by W.C. Duesenberg, SIU is a 56-year-old managing general agency located in the Atlanta, Georgia, area. SIU offers a range of products and markets to more than 3,000 independent insurance agents including personal property, workers’ compensation, inland marine, professional lines, forest products, commercial transportation and commercial property/casualty.

Appalachian Underwriters Inc. (AUI) added William Chambers as director of Digital Partnerships. Chambers comes to AUI with more than five years of

experience in the insurance industry, with former roles in underwriting and digital partnership management at a leading specialist insurer. While managing digital partnerships, he was directly involved in implementing third party technologies and leveraging homegrown capabilities to grow the company’s online small business program across multiple distribution channels. In this newly developed role, Chambers will build out Appalachian’s digital partner strategy from a distribution and vendor perspective in order to provide a more automated, simplified and competitive offering for AUI’s appointed agents. According to Bob Arowood, principal of AUI, the new position will work to grow insurtech carrier partnerships and enhance its marketing and capabilities of each online service. Appalachian Underwriters Inc. is a full-service managing general agency and wholesale insurance brokerage, providing independent agents with a national outlet to multiple specialized markets for workers’ compensation, commercial specialty and personal lines of insurance.

The Doan Group, a Woodland Capital Holdings company, hired Roger Crowley as vice president of Sales and Operations. According to Tim Davis Jr. of Woodland Capital, Crowley has experience at an insurance carrier and with a service provider. The Doan Group is a comprehensive auto, specialty vehicle, heavy equipment and continued on page 22 INSURANCEJOURNAL.COM

People continued from page 20 property appraisal company with franchise owned and supplier resources in all 50 states. It was founded by Ronald Doan in Buffalo, New York, in 1981. The Doan Group was acquired last summer by Woodland Capital Holdings, an investment and management group owned by the Davis family, who also founded and own SCA Appraisal Company.

South Central

Dallas, Texas-based independent retail brokerage firm,

Boyd, Shackelford, Barnett & Dixon (BSBD Group), hired Lad Williamson as vice president of

Employee Benefits. Williamson will help oversee the company’s employee benefits operations by tailoring customized employee benefit plans for middle market and up companies that want to maximize employee participation while reducing overall costs. Williamson comes to BSBD with experience at a large national broker, as well as a national payroll company where he aided clients in the benefits and HR space. BSBD is an independent retail brokerage firm that specializes in property/casualty, employee benefits and high net worth personal lines with offices in Plano and Dallas, Texas. Hotchkiss Insurance, a full-service Texas-based independent agency, named

Shannon McPartland

Shannon McPartland as its

newest partner. A member of the Houston team, McPartland joined the

agency in an account management capacity and transitioned to focus on sales in 2012. He serves clients in a range of industries throughout the state. Hotchkiss Insurance has offices in Dallas, Fort Worth, Houston and San Antonio, Texas. Los Angeles, Californiabased wholesale insurance brokerage firm, Brown & Riding (B&R), added JulieAnne Lenzsch and Bill Lally in the firm’s Houston, Texas, office. Lenzsch and Lally have focused on property risks throughout their careers and specialize in real estate, construction and marine risks. Both join B&R with titles of senior vice president and senior property broker. Lenzsch and Lally will further enhance the company’s presence in Texas as well as the national stage as its Texasbased property, casualty, environmental and other specialties continue to grow.

Midwest

Understory, a Madison,

Wisconsin-based provider of insurance products and services focused on climate change, has appointed Neil Irwin as chief strategy Neil Irwin officer. Irwin brings more than three decades of insurance industry leadership experience to the role across multiple geographies including Asia, the United States, Europe, the Middle East and Africa. Previously, Irwin served as CEO of Central and Eastern

22 | INSURANCE JOURNAL | APRIL 19, 2021

Europe, Middle East and Africa for Willis Towers Watson. He also spent 15 years at Marsh, where he served as regional managing director for the Middle East and North Africa. Former Ohio Supreme Court Justice Judith L. French has been appointed director of the Ohio Department of Insurance, effective February 8. In addition to serving as a justice, French has also been a member of the Ohio Tenth District Court of Appeals, chief counsel to Ohio Governor Bob Taft, chief counsel to Ohio Attorney General Betty Montgomery and deputy director for legal affairs at the Ohio Environmental Protection Agency. Anthony Hanes has joined Chicago-based Ryan Specialty Group’s

Anthony Hanes

Stetson Insurance Funding as

president. Stetson specializes in financing commercial and personal lines insurance premiums for the excess and surplus lines insurance industry. As president of Stetson, Hanes will focus on further developing RSG’s premium financing offerings to continue to enhance the company’s capabilities for the benefit of its brokerage client base and their insureds. Hanes joins Stetson with three decades of experience in the finance industry. He previously served as managing director of Sales & Marketing

for National Partners PFco, a premium financing company based in Denver, Colorado. Prior to that, Hanes was first chief operating officer for Budget Installment Corp. (BIC) and executive vice president of Sales & Marketing after BIC was acquired by BankDirect Capital Finance in 2009.

West

Poms & Associates has named Jo Anne Roque as vice president of risk services and Nikki Evaniuck as senior account manager. Roque is a member of the Poms & Associates risk services team that serves the New Mexico Public Schools Insurance Authority. She joined Poms & Associates from Alliant Insurance Services, where she spent more than 15 years in the public entity specialty group. Her previous work experiences also include Marsh and Arthur J. Gallagher & Co. She resides in Northern California. Evaniuck works with Poms & Associates clients in a variety of industries. She previously worked at LBW Insurance & Financial and spent more than 10 years at Arthur J. Gallagher & Co. She resides in the Santa Clarita area of California. Poms & Associates also named Jennifer Harrington as senior client advisor. She is based in Austin, Texas. Poms & Associates is an independent commercial insurance brokerage and risk management firm headquartered in Woodland Hills, California. INSURANCEJOURNAL.COM

“We’ve never cancelled a class of business. It’s a hard market, but it’s up to us to raise the bar and provide the coverage our clients really need…” – Rick J. Lindsey, CEO and Founder, Prime Insurance Company

HARD MARKET INSURANCE: HOW WE CAN HELP Prime Insurance Company is the solution for a hardening market. First and foremost, we have never cancelled a class of business and we don’t plan to. We believe a key to our success is managing risk vulnerability at the client level, to make sure we are addressing all risks at a realistic price. “We believe a strong customer orientation, coupled with disciplined in-house underwriting and expert in-house claims handing, are the key to growing and sustaining profitable business.” explains Rick J. Lindsey, CEO and Founder of Prime Insurance Company. We are also forward thinking in order to address emerging risks. For example, we proactively launched communicable disease liability coverage as an optional policy add-on. Other companies are tightening guidelines while we are seeking new solutions to ensure our policyholders don’t have any gaps in coverage.

WE OFFER MORE OPTIONS FOR A HARD INSURANCE MARKET When other carriers decline coverage or consider a risk undesirable, we are here to help. We have a long history of working with clients with previous adverse claims, loss history, and other circumstances that often lead to denial from insurance companies. After all, we have written thousands of risk classes, which means we have likely encountered a similar situation and found a way to provide coverage.

SOLUTION-ORIENTED HARD MARKET INSURANCE At Prime, we take a solution-based approach, working personally with each client to identify their individual needs.

We still believe in ‘character’ underwriting, and in today’s environment that is de-humanizing the process with automation and AI, that is a unique differentiator. We get to know the people we are insuring, in addition to their risk profile. We overcome market challenges with highly customized insurance solutions, skilled underwriters, and a lot of work and effort to understand specialty risks and how to cover them. This makes -our work very valuable to clients who are experiencing limited options. Agents working with us are able keep writing business, offering insurance solutions where others cannot. Despite this level of customization, we are efficient, and speed is a priority, even in these challenging conditions. We aim to respond as promptly as possible so that we can offer quick quotes. And if a claim arises, you can rest assured that we will work just as quickly to resolve it fairly.

COVERAGE SPOTLIGHT – D & O While the need for this coverage is greater than ever, D & O suffers all the characteristics of a hard market. Your clients are facing new risks with employees returning to the workplace, attempting to meet diversity and sustainability goals, protect their data from increasing cyber threats, all while recovering from the pandemic – for which they could also be liable if understating its impact. While other carriers are scaling back capacity, Prime continues to service the D & O needs of its clients. With our coverage, comes the strength of Prime’s in-house legal team of 46, including 12 attorneys, should claims arise.

FINANCIAL STRENGTH Mr. Lindsey is proud of the fact that the company has never cancelled a class

of business, thanks to Prime’s record of high-quality coverage at realistic prices. The 2020 operating results of Prime Insurance Company and its subsidiary Prime Property & Casualty Insurance (PPCI) reflect our experienced team of underwriters and risk management practices and the outcomes of our exemplary claims and litigation team. In 2020, Prime Insurance Company reported a combined ratio of 72.1 on net earned premium of $100.8 million and PPCI reported a combined ratio of 68.0 on $68.6 million in net earned premium. Mr. Lindsey’s customer-focused approach has resulted in double-digit growth rates for both gross and net premiums for the last 5 years. The focus on honesty and partnership has managed over 70,000 claims. Our insureds view their relationship with us as valuable, rare and unique.

MEETING YOUR CLIENTS’ NEEDS IN 2021 AND BEYOND With the Prime Insurance Company team behind you, we will adapt and innovate together to come through the hard market intact. We care about each insurance producer and each insured. And we consider our work a partnership with you and your clients. The best way to find out how we can help you and your clients with a hard insurance market is to get in touch with one of our team members. To get started with a quote, use our online application today. You can also call Prime Insurance Company at 800-257-5590 or email info@primeis.com.

tre

A M

BEST c el

For latest ratings visit www.ambest.com

News & Markets Supreme Court Declines to Hear Appeals on Workplace Religious Bias

By Andrew Chung and Lawrence Hurley

he U.S. Supreme Court on this month sidestepped a chance to further expand religious rights, turning away two cases in which employees accused companies of violating federal anti-discrimination law by insufficiently accommodating requests for time off to meet religious obligations. The justices declined to hear appeals by two men of different Christian denominations — a Jehovah’s Witness from Tennessee and a Seventh-day Adventist from Florida — of lower court rulings that rejected their claims of illegal religious bias. Lower courts found that the accommodations the men sought would have placed too much hardship on the employers. In a dissent, conservative Justices Neil Gorsuch and Samuel Alito said the court should have taken up the case from Tennessee. The Supreme Court has taken an expansive view of religious liberties in a number of important cases in recent years. 24 | INSURANCE JOURNAL | APRIL 19, 2021

At issue in the cases was the allowances companies must make for employees for religious reasons to comply with Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on religion as well as race, color, sex and national origin. Gorsuch wrote that religious rights under the employment law are “the odd man out” because they do not receive as much protection as other rights guaranteed under federal law, such as those that apply to the disabled. “Alone among comparable statutorily protected civil rights, an employer may dispense with it nearly at whim,” Gorsuch wrote. Under the law, employers must reasonably accommodate workers’ religious observance or practices unless that would cause the company “undue hardship” — which the Supreme Court in a 1977 case determined to be anything more than a minor, or “de minimis,” burden. Critics of the “de minimis” standard have argued that it particularly harms

religious minorities. Last year, in a similar appeal that the court declined to hear that involved a member of the Seventh-day Adventist Church, three conservative justices — Alito, Gorsuch and Justice Clarence Thomas — indicated that the court should consider overruling the 1977 precedent. The Tennessee case involved Jason Small, a leader in the Jehovah’s Witnesses congregation in the Memphis suburb of Collierville who worked as a dispatcher at Memphis Light, Gas and Water, a large public utility. Small missed work in 2015 to attend worship on the Good Friday holiday as well for a congregational duty the following Wednesday even though his requests for time off had been denied. Small was suspended for two days without pay. The company said Small missed work on “multiple occasions.” The Florida case involved Mitche Dalberiste, a Seventh-day Adventist. GLE Associates, a Florida company that performs work-site safety monitoring, revoked his job offer after he disclosed that he would be unable to work on the Sabbath, which he observed from sundown on Friday to sundown Saturday. GLE, in a court filing, said Dalberiste lied about his ability to work on weekends and said it regretted being dragged into a “special-interest fueled lawsuit attempting to circumvent Congress.” Dalberiste is represented in part by the Becket Fund for Religious Liberty, a religious rights legal group. Both men sued in federal court, alleging religious discrimination in violation of Title VII. In Small’s case, the Cincinnati, Ohiobased 6th U.S. Circuit Court of Appeals ruled that accommodating him would cause more than “de minimis” hardship on the company’s operations and other employees. The Atlanta, Georgia-based 11th U.S. Circuit Court of Appeals issued a similar ruling against Dalberiste.

2021 Copyright Reuters INSURANCEJOURNAL.COM

A deeper understanding of your business. We’re industry experts who help protect customers in specialized segments, including technology. Let us tailor a solution that targets your business’ unique needs. To learn more, talk to your broker or visit intactspecialty.com

Intact Insurance Specialty Solutions is the marketing brand for the insurance company subsidiaries of Intact Insurance Group USA LLC. Coverages may be underwritten by one of the following insurance companies: Atlantic Specialty Insurance Company, a New York insurer; Homeland Insurance Company of New York, a New York insurer; Homeland Insurance Company of Delaware, a Delaware insurer; OBI America Insurance Company, a Pennsylvania insurer; OBI National Insurance Company, a Pennsylvania insurer; or The Guarantee Company of North America USA, a Michigan insurer. Each of these insurers maintains its principal place of business at 605 Highway 169 N, Plymouth, MN 55441, except The Guarantee Company of North America USA, which is located at One Towne Square, Southfield, MI 48076.

My New Markets Creative Commercial Lines

Market Detail: Creative Underwriters (www.

creativeunderwriters.com ) offers property coverage for the following risks: Adult day care program; amusement; animal services; apartment house; auto service risks; bakery; bar/tavern; beauty/barber shop; bed & breakfast; caterers and halls; church; club; condominium/homeowners; consultants program; day nursery or preschool program; distributors & wholesalers; dwelling; employment risks; exercise & health studio; flea market program; golf course, miniature golf course, driving range; grocery/convenience store; halfway house; home health care; lessor’s risk; light hazard products manufacturing; machine shop; martial arts studio; medical equipment supply stores; mobile home parks and campgrounds; motel; office building; pawn shop; restaurant/deli; schools; selected mercantile; shopping center; sports camps/clinics/ leagues; surfing/paddle board instruction & beach equipment rental; swimming pool management/lifeguard; tanning salon; telecommunications – commercial; vacant building; warehouse; welding; wind and solar energy; woodworking/ cabinetmaking. General liability coverage available for: Alarm installation program; artisan contractors; boat deck construction; communications equipment-residential; contractors equipment rental; demolition contractors program; detective or investigative; entertainment; excavation/grading of land; exterminators & pest control; food & beverage manufacturing; foreclosure/eviction cleanup; general contractors; hotels/motels/ hunting clubs, preserves & shooting ranges; janitorial; landowners; landscaping; machinery and equipment – installation, servicing or repair; outfitters and guides; owners and contractors protective liability; parking lot/ driveway; pressure cleaning; push cart and flea market vendors; recycler; remodeling; security and patrol; special events; swim and racquet club; swimming pool contractors, dealers and installers; swimming pool maintenance; transportation services; tree trimmers; and truckers. Available limits: As needed Carrier: Unable to disclose States: Ala., Ark., Colo., Dela., Ga., Idaho, 26 | INSURANCE JOURNAL | APRIL 19, 2021

Ill., Ind., Iowa, Ks., Ky., La., Maine, Minn., Mo., Neb., Nev., N.M., N.C., N.D., Ohio, Okla., Ore., Pa., S.C., S.D., Tenn., Utah, Va., Wash., W. Va., and Wisc. Contact: Rhonda Daugherty at 800-7694321 or e-mail: PandC@creativeunderwriters.com

Garage Products

Market Detail: American Management

Corporation (www.amcinsurance.com) provides coverage for garage risks involved in the selling and servicing of “autos.” Service operations engaged in repairing, towing, servicing, salvaging and valet parking of “autos” are also eligible. Coverages include: Garage liability & scheduled auto liability; garagekeepers and in-transit schedule; auto physical damage for scheduled service units; dealers physical damage – non-reporting only; medical payments; fire legal liability; uninsured motorists/underinsured motorists; personal injury protection; garage property (non-admitted only). Unique classes that will be considered: antique/ class auto dealers; antique/classic auto restoration; auctions; bedliner installation; car wash – full service; emergency vehicle sales and service; horse trailer sales and service; truck tractor sales and service; van conversion; mobile mechanics; mobility equipment sales and installation; motorcycle/ATV sales and service; motor home sales and service; oil and lube shops; parking structures; roadside assistance; salvage yards; scooter/moped sales and service; tow truck operators (non-fleet); RV/travel trailer sales and service; truck stops (rural); and valet parking services. Available limits: As needed Carrier: Lloyd’s of London States: Ala., Ariz., Ark., Calif., Colo., Fla., Ga., Idaho, Ill., Iowa, Ks., Ky., La., Miss., Mo., Neb., Nev., N.M., Okla., Ore., Tenn., Texas, Utah, and Wash. Contact: Dylan Flores at 501-932-5821 or e-mail: Dylan.flores@amcins.com

Alarm Contractors Program Market Detail: Amwins Program

Underwriters’ (www.amwins.com) alarm contractors insurance program focuses on protecting various types of alarm contractors that are enlisted to install, test, service,

and repair commercial and residential alarm systems. The program is available on an admitted in partnership with a carrier rated “A-” by A.M. Best. Amwins Program Underwriters’ Alarm Contractors program is available nationwide. Eligible accounts for the program include: Fire, burglar, access control, closed circuit television; commercial & residential; sales & service; installation. Lines of coverage offered by the program: General liability – Errors and omissions endorsement, lost key coverage, care, custody, & control; where required by contract: additional insured; waiver of subrogation; inland marine; miscellaneous tools & equipment – property, building, business personal property, equipment, fixtures, furniture, merchandise; and umbrella. Limits for line of coverage: general liability - $1million/$2 million; inland marine - $100,000; property - $1 million; umbrella - up to $5 million. Submission requirements for alarm contractors accounts: alarm contractors supplemental application; industry standard applications for all lines requested; five years currently valued loss runs (or resume of key personnel if in business less than five years); and copy of contracts utilized. Available limits: Minimum $5,000 Carrier: Fortegra Specialty Insurance, admitted States: All states Contact: Shawn Fabors at 214-220-9854 or e-mail: shawnfabors@amwins.com

This section brought to you by Insurance Journal's sister website:

www.mynewmarkets.com

Need a Market? Find It. FAST INSURANCEJOURNAL.COM

STRUGGLING TO GET YOUR INSURED ON THE ROAD? Young drivers, new CDLs, unfavorable loss history, colorful MVRs, Drive away exposures we can do it all!

Call the commercial auto experts... We’ve got you covered. PACIFIC GATEWAY INSURANCE AGENCY 28470 Avenue Stanford Suite 325 Phone: (800) 354-4844 - Fax (661) 257-5988 Valencia, CA 91355 www.pgiainsurance.com - License # 0C04869

We oﬀer a wide variety of commercial auto, garage, property, and general liability products. A Berkshire Hathaway Company

News & Markets

Industry Watchers Weigh-in on ‘Concerning’ California Workers’ Comp Bills By Don Jergler

handful of workers’ compensation bills make their way through state Legislature every year that catch the attention of those watching the space — for better or worse. A few bills this year have a pair of industry watchers more than a bit concerned. Mark Walls, vice president, communications and strategic analysis for Safety National, has already been sounding the alarm over Assembly Bill 1465, which would require the administrative director of the state’s workers’ compensation system to establish a statewide medical provider network, called the California Medical Provider Network, and give employees the choice to treat within their employer’s MPN or the CAMPN. John Norwood with Norwood Associates, an industry lobbyist, called it a “terrible bill.” He said there have been no discussions regarding this issue, and there are no studies or other information supporting the need for this change. “Implementation of something like this will likely adversely affect medical care received by injured workers and substantially increase costs to the state and employers,” Norwood said. Next in line on Walls’ list of worries is W2 | INSURANCE JOURNAL | APRIL 19, 2021

Senate Bill 213, which creates presumptions for any healthcare worker involved in direct patient care and broadly defines “injury.” “It’s a rebuttable presumption,” Walls said. The bill as worded may apply to infectious diseases, cancer, musculoskeletal injuries, post-traumatic distress, respiratory diseases and of course COVID-19. “The problem with presumptions is that they change the ground rules on workers’ compensation,” Walls said. Walls said the bill would create another “class of worker,” requiring employers to bear the burden of proof if they want to refute a claim, which Walls believes would increase costs for employers. Norwood had similar feelings on SB 213. “It’s another bad bill that will start the state down the road of enacting presumptions for workers’ comp in the private sector,” Norwood said. Another bill on Walls’ watchlist is Senate Bill 335. The bill would reduce the timeframe to dispute claims from 90 to 45 days, and 30 days for certain conditions.

“It’s a significant reduction in the time allowed for disputing a claim,” Walls said. The bill allows up to $17,000 in medical treatment to be authorized until a claim is accepted or denied, up from the $10,000 the law currently allows. “California’s the only state that I know of that mandates that workers’ comp pays for unauthorized medical treatment before a claim is accepted,” Walls said. He said the reduction in the timeframe makes it difficult to get a worker in to be seen and evaluated. “It’s not possible to get an exam that quickly,” he said. “What we foresee that doing is forcing employers and carriers to deny more claims,” he said, adding that there’s a double-edged sword, because there are penalties in the bill for excessive denials. Senate Bill 788 would “prohibit consideration of race, religious creed, color, national origin, age, gender, marital status, sex, sexual identity, sexual orientation, or genetic characteristics to determine the approximate percentage of the permanent disability caused by other factors,” and would express the Legislature’s intent to eliminate bias and discrimination in the workers’ comp system. Walls said over the last several years in California some legislators have been attempting to undermine permanent disability apportionment in the guise of ending discriminatory practices in the workers’ comp system, and he views this as the latest attempt to do just that. “What they’re actually trying to do is eliminate apportionment,” Walls said. “Ultimately, what this does is reduce legitimate apportionment.” He explained that if, for example, an older worker has a preexisting condition that would lead to PD apportionment, that wouldn’t be allowed because would be considered age discrimination, he said. “SB 788 is just another attempt to undermine PD apportionment,” Walls said.

‘Implementation of something like this will likely adversely affect medical care received by injured workers and substantially increase costs to the state and employers.’

INSURANCEJOURNAL.COM

We Seal

the Deal MonarchExcess.com Professional Liability: D&O, EPLI, Misc E&O, Medical Professions, Legal Malpractice, Accountants, Media Liability, A&E, Technology, Cyber Burbank 818-249-0100 / Fresno 559-226-0200 / Rancho Mirage 760-779-5555 / San Diego 619-521-2170 / Simi Valley 805-577-6800 San Marcos 760-891-2811 / Arizona 877-406-8026 / Hawaii 818-425-9847 / Miami, FL 305-569-6734 / Lic. #0L09546

News & Markets Businesses Filing More COVID Lawsuits and the Stakes are Higher By Jim Sams

he anniversary of COVID-19 shutdown orders brought an upturn in both the number of business-interruption lawsuits against insurers and the amount of damages they are claiming. In the past month: • A New Jersey hospital system, RWJBarnabas Health, sued Zurich American Insurance Co. seeking $2.5 billion in damages from a virus that sickened 1,000 patients and killed nine staff members. • Caesers Entertainment filed suit against 60 carriers seeking $2 billion in damages caused by restrictions at its Las Vegas resort casino. The company said it paid $25 million in premiums for $3.4 billion in coverage through a variety of “all-risk” policies, most of which did not include virus exclusions. • Denison University, Kenyon College, Ohio Wesleyan University and the College of Wooster filed suit against their 16 insurers seeking $1.2 billion in coverage. The consortium of private colleges say their insurers turned their backs on them after the virus made their facilities unsafe and uninhabitable. Also, some of the recent filings were made by groups of businesses against a single, or multiple insurers. For example, on March 16, six restaurants and a fitness center in New Jersey filed a class-action suit in Bergen County Superior County against six carriers. On the same day, 26 Ohio dental practices filed suit against Amco Insurance Co. in the U.S. District Court in Toledo. “We are seeing larger and more sophisticated business-interruption filings now,” said Steve Badger, an insurance defense attorney with the Zelle law firm in Dallas. “It appears a lot of them have waited on the sidelines to see how things progressed before filing suit.” He said the increase in filings isn’t surprising. Many plaintiff attorneys waited to see how the courts ruled on early claims to see how to draft their lawsuits to maximize INSURANCEJOURNAL.COM

their prospects for coverage. Insurers are continuing to win the large majority of cases that have been decided so far through motions to dismiss or for summary judgment. In fact, Badger said in recent weeks the ratio of wins to losses tilted even more heavily toward insurers. What’s more, guidance issued by the Centers for Disease Control and Prevention this month handed insurers another strong argument to use against business-interruption lawsuits that claim SARS-coV-2 causes physical damage by clinging to surfaces. The CDC said the virus spreads predominately through droplets in the air. “It is possible for people to be infected through contact with contaminated surfaces or objects (fomites), but the risk is generally considered to be low,” the agency said. A litigation tracker posted online by the Hunton Andrews Kurth law firm shows that 126 COVID-related insurance lawsuits were filed in state and federal courts in March, compared to 70 in February and 36 in March. That was the largest number of cases filed since August. Another tracker maintained by the University of Pennsylvania’s Carey Law School shows that insurers have won in 243 cases in early rulings compared to 52 for plaintiffs, a ratio of about five to one. Those totals do not include cases that were

dismissed without prejudice. The tracker says 1,538 business-interruption suits have been filed so far. Since March 15, courts granted insurer motions and dismissed 46 cases with prejudice, while denying insurer motions or granting summary judgment for the plaintiff in just five cases. In other words, insurers have won almost nine out of 10 cases decided in the past few weeks. Badger said plaintiff’s attorneys will have a hard time reversing an obvious judicial trend. “The risk of spread through property is very, very minimal,” he said. “You can go to Walmart and buy a can of Lysol that kills COVID on property.” Plaintiff’s attorneys aren’t calling it quits. Michael S. Levine, a partner with Hunton Andrews Kurth in Washington, D.C., says the tide may change when cases reach the appellate courts. He said his law firm has at least two cases before the 11th Circuit Court of Appeal, two before the 3rd and one before the 1st. Levine agreed with Badger that insurers have been winning an even larger share of cases lately. “It’s the ongoing trend,” he said. “Unfortunately, most of these are in the federal courts. I see that as a snowball going downhill. It will continue to grow in movement until an appellate court puts the brakes on it.” APRIL 19, 2021 INSURANCE JOURNAL | 27

Spotlight: Directors & Officers Tech Firms Under More Scrutiny, Unhappy with D&O Insurance

ith premiums rising and carriers narrowing their terms and conditions, technology companies’ satisfaction with their directors and officers (D&O) liability insurance has plummeted in 2021. Insurance broker Marsh found in a new study that only about 45% of customers in the sector see their D&O cover as adequate now compared to 84% in 2020. About 35% view their coverage neutrally, up from 13% the year before. A solid 20% said their D&O coverage isn’t adequate versus just 3% in 2020. Why the change? Marsh suggests that a variety of factors are involved, with a big cause being increased management risks at the same time that public trust in the tech sector is declining. COVID-19 risks are a factor, too, and have contributed to price hikes. Marsh noted that D&O pric-

ing for tech companies jumped nearly 40% in 2020, while property pricing grew almost 30%. Price hikes hit for cyber, tech errors and omissions (E&O) and casualty coverage, excluding workers’ compen-

sation. D&O insurers are also narrowing their terms and conditions and increasing their underwriting scrutiny, leading to a more selective deployment of capital, according to Marsh. Marsh’s annual study surveys communications, media, technology and emerging industry risk professionals and executives globally, and 170 responded for its 2021 report. Among additional findings: • 37% of respondents said they expect their D&O liability risk to be more of a concern in the next three to five years. Nearly 20% said COVID-19 has worsened that risk. • About 3% of respondents said “trust” is not discussed within their organizations today, while 64% said they believe that establishing greater

28 | INSURANCE JOURNAL | APRIL 19, 2021

trust can help moderate their cost of risk or keep it below that of their peers. • 72% ranked data security and privacy as a top business risk, while 54% said digital interruption was at the top of their list of concerns. • 20% of respondents reported that the pandemic has had a significant adverse effect on their revenue or represented an existential threat to their business. • 63% of respondents are increasing retentions, and 54% are exploring integrated, structured or alternative risk programs as a result of market conditions. The full report is Marsh’s 2021 Global Technology Industry Risk Study.

INSURANCEJOURNAL.COM

Special Report: Young Agents Survey What Young Agents Think

Survey: Optimism High Among Young Agent Leaders

By Andrea Wells

Young Agents' Biggest Challenges Finding new markets

22.1%

Finding new employees

33.1%

Finding new customers

49.6%

Finding new motivation

20.6%

Finding new efficiencies

27.6%

30 | INSURANCE JOURNAL | APRIL 19, 2021

espite ongoing concerns over the pandemic, young agents say they felt supported by their agencies over the past year. A majority of young agents felt satisfied with how their agency responded to COVID-19 and rated their agency’s pandemic response plan at 4.25 on a scale of one to five, with one being “least satisfied” and

five being “most satisfied.” Young agents also felt a renewed optimism when it came to their outlook on the U.S. economy with 18.3% reporting that their view on 2021’s economy is “very optimistic” and 26.6% feeling “optimistic.” That’s up from a year ago, when just 8.0% of young agents surveyed reported their outlook on the U.S. economy in 2020 as “very optimistic,” while 19.3% viewed it as “optimistic.” INSURANCEJOURNAL.COM

Profile of Young Agents In addition, nearly twothirds (61.3%) are “very optimistic” or 22.6% are “optimistic” that their 2021 income will be greater than their 2020 income. This is up from 2020, when 48.3% reported they were “very optimistic” and 28.1% were “optimistic” about their projected income. The annual Insurance Journal survey polls the opinions and views of independent agents 40 years old and younger. About 300 young agents responded to this year’s online survey. Below are what a few of those young agents had to say about their careers in insurance.

Tyson Rochelle ‘Rookie of the Year’: Tyson Rochelle

That is not to say the past year has been difficult, especially for new sales. “I’m going to be honest, it definitely sucked,” said 27-year-old Tyson Rochelle, who opened Brightway Insurance’s Tyson Rochelle Agency in Fort Worth in late 2019. That didn’t stop Rochelle from being named Brightway’s “2020 Rookie of the Year” for being the highest-producing agency owner based on new property/casualty policies written during the prior year — his INSURANCEJOURNAL.COM

first year as an agency owner. Making sales during a pandemic was difficult, but people still needed insurance, Rochelle said. “The pandemic made it a little harder to go out and shake a hand, but you can always make more calls on the phone than you can ever meet people in person in one day,” he said. Rochelle admits that building relationships over the phone can be challenging. “Some people gave me the time of day. Some didn’t, but enough gave time, and it worked out. I was able to do pretty good my first full year in.” Rochelle’s first entry into the insurance world began with a “young” college recruiter from Goosehead Insurance. “I received a degree in business marketing with a concentration in sales, so I knew I wanted to do some type of sales,” he said. When he met recruiters from Goosehead at a career fair, Rochelle was impressed. “They were young. We hit it off,” he said. They offered Rochelle a job, and he jumped into insurance. “I liked it. I liked the culture. I liked selling insurance.” A couple of years later he realized he wanted to own his own agency. “What I really like about insurance is that it’s super flexible,” he said. “The products don’t really change. Obviously, you have got to know your carriers, but that’s something that you can learn. And since we just focus on home and auto, you can really become an expert.” Running his own agency

Older Side of Young 61.7% are 31 to 40 years old. 38.3% are 30 and under. Career Choice 85.5% consider insurance to be a permanent career choice; 12.0% are unsure; 81.4% would recommend career choice to another young person — but 13.6% are not sure they would while 5.0% wouldn’t recommend being an agent. Experience 26.0% have less than three years in insurance; 17.3% have three to five years; 29.6% have six to 10 years; 17.0% have 11 to 15 years; 10.1% have more than 15 years. Education 63.0% have a college degree; 10.1% have a master’s, doctorate or other advanced degree; 50.7% have completed or are working on an insurance designation. 62.2% have an insurance agent mentor. Family Affairs 55.2% work in family owned agencies. 26.0% are members of the family that owns the agency. Size 31.4% work for agencies generating $5 million or less in P/C premium. 23.1% work for agencies generating $6 million to $25 million in P/C premium. 34.3% work for agencies generating more than $26 million. 89.5% are privately held independent agencies. Employment Status 88.8% are independent agents; 12.4% presently are sole owners of an agency; 20.1% share ownership with a partner(s). Ownership Dreams 67.5% do not presently own an agency; of these, 53.8% would like to own someday and 26.5% of those feel very confident ownership dreams will come true — but 35.5% don’t believe it will happen. Book of Business 63.5% target mostly commercial lines; 36.5% target mostly personal lines. Gender ID 58.9% Male 41.1% Female 48.7% Describe their political affiliation as Republican, 14.7% Democrat, 13.9% Independent, and 8.1% Libertarian. Ethnic Background 89.7% White/Caucasian 5.5% Hispanic/Latino 1.8% Black 1.8% Asian 0.7% Native American 2.9% Other or did not wish to say What Young Agents Do 51.5% attend local business or community meetings; 56.6% volunteer in the community; 12.0% get involved in local politics; 62.4% use Facebook; 72.6% use LinkedIn; 23.7% use Twitter; 11.3% write a blog; 55.8% utilize insurance coverage or other checklists; 79.6% take insurance courses online.

continued on page 32 APRIL 19, 2021 INSURANCE JOURNAL | 31

Special Report: Young Agents Survey continued from page 31 brings new challenges to overcome every day. “I really like that no two days are the same,” he added. Rochelle tells other young

people to consider insurance as a career but to think longterm. “The big thing with insurance sales are the residuals — you’re in the driver’s seat on

Young Agents’ Outlook on Their Career

Outlook on the Future of the Independent Agency System

2.6%

42.4%

Cautious

36.1%

Not Optimistic

Young Agents’ Outlook on Keeping Current Job

Optimistic Cautious

Cautious 41.6%

Not Optimistic

22.3%

Optimistic 65%

Not Optimistic

Independent Agents’ Ability to Grow Commercial Lines Market Share

38.5%

Not Optimistic

Believes 2021 Income Will Be Greater Than 2020

2.9%

Very Optimistic

38.3%

Cautious

Cautious Not Optimistic

Independent Agency Channel’s Ability to Advance in Technology Use

5.9%

2.5%

Very Optimistic

11.7%

Optimistic 22.6%

61.3%

Optimistic

44.9%

Not Optimistic

Outlook on U.S. Economy in 2021

Very Optimistic

13.9%

Optimistic

30.4%

Cautious

10.2%

Very Optimistic

27.3% 21.2%

3.1% 8.8%

Very Optimistic

29.9%

9.9%

Optimistic

Agency’s Ability to Attract Quality Talent

0.7% 4.4%

Independent Agents’ Ability to Grow Personal Lines Market Share

Very Optimistic

17.5%

Optimistic

57.3%

29.9%

you’re older,” he said. He also advises younger people to listen and learn as much as possible. “There is so much stuff as far as insurance training on YouTube and

4.0%

Very Optimistic

10.2%

what you’re going to make,” he said. “Insurance is about building a book of business … you put in the work while you’re young, and you can really reap the benefits when

Cautious 43.4%

Not Optimistic

Total Compensation in 2020 vs. 2019

18.3% 26.6%

Very Optimistic

13.9%

Optimistic

Very Optimistic 33.2%

Optimistic

Cautious

Cautious 50.4%

Not Optimistic

More Opportunity for Men vs. Women

Not Optimistic

Opportunities in Family-Owned Agencies

7.1%

Basically True

More in 2020 than 2019 14.5%

24.1%

Less in 2020 than 2019 75.1%

37.2%

About the same

Provides more opportunities 28.9%

Basically False No Opinion/Other

Provides fewer opportunities

39.7%

Doesn’t matter 10.8%

30.7%

How Young Agents Became an Owner Acquired or bought a family agency 13.8%

25.0% 18.7% 5.0%

35.0% 2.5%

32 | INSURANCE JOURNAL | APRIL 19, 2021

Acquired or bought a non-family agency Opened a start-up agency Turned my captive agency into an independent agency ESOP (employee stock ownership plan) Other

INSURANCEJOURNAL.COM

podcasts. Really deep dive and become an expert,” he said. “I’m 27 now. I can grind it out, really perfect my craft and make a good living.”

with Brightway Insurance and decided to go out on her own. In February 2021, she opened The Carolyn McGhee Brightway Insurance office in Atlanta. Life isn’t easy sometimes, but that doesn’t deter

McGhee. She is the first and only sibling in her immediate family to graduate from high school, earn a bachelor’s degree and a master’s degree, and open and run a business. “I’m very mind-strong and headstrong,” she said. “I

focus on one goal and then on getting to the finish line.” McGhee was born and raised in the inner city of Atlanta to a single mother who raised four kids. “I lost my oldest brother at

continued on page 34

What Young Agents Think

Carolyn McGhee Captive to Independent: Carolyn McGhee

Another new Brightway agency owner, Carolyn McGhee, 31, began her insurance journey with State Farm. “I had just finished undergrad school, and I was looking for a paycheck to pay the bills,” she said. McGhee studied political science in college, but at the time, not many government agencies were hiring. “When I got into State Farm, I began to explore different development programs within the company to see exactly where this particular career could take me,” she said. McGhee spent five years working in various capacities with claims at State Farm before thinking about sales. “When I took an interest in the sales part of insurance, I found out that I was able to meet new people, and I love that part of it — building that personal relationship,” she said. She spent two years in sales for State Farm before leaving to pursue a graduate degree. She returned to State Farm until she met INSURANCEJOURNAL.COM

Basically Basically True False

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

76.8% 18.1%

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

30.8% 50.7%

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

19.2% 59.4%

I have one or more areas of specialization.

75.3% 19.3%

Much of my production supports older producers in the agency.

22.8% 66.3%

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

43.8% 54.4%

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

65.7% 31.0%

Success in this business is mostly about building relationships.

88.0% 8.4%

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

28.6% 60.8%

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

14.6% 71.5%

The agency ranks could use more women and minorities.

43.8% 31.4%

I have already completed or am working to complete a CPCU, CIC, ARM or other insurance designation program. 50.7% 41.6% I wish my agency would expand into new markets.

24.8% 54.7%

I think my compensation is fair.

71.9% 20.7%

I think my agency's management is fair.

83.5% 8.4%

I believe advancement is based on relationships more than performance.

25.2% 62.0%

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

62.8% 25.2%

The industry has been too slow to adopt new technology.

59.9% 31.0%

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

55.5% 24.1%

APRIL 19, 2021 INSURANCE JOURNAL | 33

Special Report: Young Agents Survey continued from page 33 the tender age of 15 due to gun violence,” she said. “My neighborhood was surrounded by drugs, poverty and street violence. I was determined to have a better future, and I knew that this could only be done through consistent hard work and higher education.” Her passion for helping others fits right into helping her insurance clients. “I always had a passion for helping people so becoming

have to walk into boldness in this new career,” she said. “I don’t have to prove myself because I feel that my work ethic, my character, will speak for itself.” Success is about work ethic, grind and hustle, she added. “Being a Brightway agent is all about being a pillar in the community,” McGhee said. “It will allow me to use my platform to help change the lives of individuals through community involvement and I can spread educational

an insurance agency owner allows me to do just that, while still building a legacy for my family and being in control of my destiny and having a positive impact on my community,” Mc Ghee said. McGhee wants to be a leader in her community and believes that serving as an agent can help do that. Her youthfulness doesn’t stand in her way. “When I do networking events, sometimes I’m probably the youngest person in there. But I realize that I

wealth through workshops about insurance.” As an entrepreneur, she can also be a role model to individuals who grew up in the same type of inner-city neighborhood that she grew up in. “I am striving to become the first self-made millionaire, as well, in my family. God, dedication, hard work and consistency — I have no doubt I will accomplish that,” she said.

Young Agent Opinions on Current Employer Excellent

Good

Fair

Poor

Outlook for the future of my agency

72.0%

25.6%

2.4%

0.0%

Access to quality markets

63.0%

30.9%

4.9%

1.2%

Relationships with carriers

63.0%

34.6%

1.2%

Agency’s culture

61.3%

30.0%

8.8%

0.0%

Use of technology

38.8%

45.0%

12.5%

3.8%

Use of social media to market/brand agency

24.7%

33.3%

37.0%

4.9%

Employee relationships

51.9%

40.7%

6.2%

1.2%

Recruiting

24.7%

25.9%

32.1%

17.3%

Matt Fuqua Be Curious: Matt Fuqua

At 35, Matt Fuqua, sales team leader at AssuredPartners, manages a team of 40 producers for the company’s Louisville, Ky., and Southern Indiana offices,

What Young Agents Think About the P/C Industry

Excellent Good

Fair

Customer service Public image Treatment of employees Professionalism Ethics Career attractiveness to young professionals Use of technology Marketing and advertising

27.1% 59.3% 19.1% 32.2% 29.2% 53.9% 33.5% 57.0% 33.7% 49.5% 18.3% 24.5% 16.9% 44.5% 20.2% 46.5%

12.1% 1.5% 34.8% 13.9% 14.8% 2.2% 9.2% 0.4% 14.3% 2.6% 34.4% 22.7% 31.3% 7.4% 26.7% 6.6%

34 | INSURANCE JOURNAL | APRIL 19, 2021

Poor

INSURANCEJOURNAL.COM

which accounts for about $30 million in property/casualty and benefits revenue. He also continues to build his personal book of business, which currently stands at about $2 million in revenue. Fuqua enjoys playing golf, and a conversation with a fellow golfer led him to an internship at Neace Lukens. After graduating college in

2008, he was offered a fulltime position. A few years later, the firm was bought by AssuredPartners. “Shortly thereafter, I got to buy into the company and that ended up being an incredible opportunity, and really, luck had played into it,” he said. For Fuqua and especially his team of producers, the pandemic has been tough.

What Young Agents Like Most 1.

Everyday is something different. This job is never repetitive. 2. Flexibility, freedom, and the opportunity to run my own business. 3. The ability to work in any industry with interesting companies. 4. I really enjoy getting to learn about different businesses and how they operate. 5. I love that every day is different. I also like the competitiveness of the business. I love to win while also hate losing. 6. The ability to pursue my own individual passion, while being rewarded for doing exactly that. 7. I love the balance and ability to be able to create my own schedule, to a degree, along with a substantial earnings potential. 8. I enjoy showing companies the best way to manage and finance the risk associated with their business. 9. 100% the people I get to work with and build relationships with. 10. The knowledge I have gained in the insurance industry. I find my commercial, life insurance and retirement planning skills gained are invaluable. 11. Family business is actually pretty fun. I like the small mom-and-pop shop vibe versus the big corporate world. 12. Job freedom and not having to sit at a desk every day. Every day is different. 13. The opportunity to work and partner with multiple different industries. The opportunity to network with new people. 14. The relationships I have formed with my clients throughout the years, and the fact that I am a trusted advisor to them. … I love just talking with them and having lunch and just talking about life. 15. I love helping people. I love educating young clients. I feel if you take the time to educate the buyer, you will earn a customer for life.

INSURANCEJOURNAL.COM

But there are two sides to that story, he added. “Younger people with books of business, I would say, flourished. But as far as writing new business, from my standpoint or from what I saw with my producers, it was tough,” he said. Businesses didn’t want to see outside salespeople. “Whether you were selling

insurance or selling whatever, it didn’t matter. Nobody wanted outside salespeople in their office.” Virtual selling can be “very tough,” he said. “It’s hard to sell somebody virtually unless they’re really, really unhappy with their current situation. So, if somebody is just on the fence, and their

continued on page 36

What Young Agents Like Least 1.

Being in personal lines at the moment, my least favorite part is the large amount of time that is spent talking to customers who have been conditioned to focus solely on price. 2. Having to deal with mostly incompetent underwriters. 3. The [lack of] access to markets in difficult classes of business. 4. The difficulty getting prospects to care about insurance/ risk management. 5. Losing accounts. 6. Until COVID-19, this was one of the last industries to adapt to the modern way of doing business. 7. Rejections. You have to have thick skin and learn to get over rejections/losses quickly. If you don't learn to deal with rejections, then you will be miserable. 8. A lot of different carriers means a lot of product knowledge, which makes me feel like I don't know everything about all of them. 9. Stress. This job can be insanely stressful. A lot of it comes from pressure from the sales side and strict deadlines. 10. Dealing with claims adjusters. 11. The perception that insurance people are like “used car salesman.” 12. Having to compete with the “big guys.” They can move faster, offer more technology, and can market so much more. 13. The agency owners that we have are resistant to remote work. That is probably my least favorite thing. 14. Recruiting and managing people. 15. It can feel lonely at times as you are establishing processes and culture; 100% on your own without any validation that what you are doing is the right thing to do until results come in.

APRIL 19, 2021 INSURANCE JOURNAL | 35

Special Report: Young Agents Survey How Young Agents See Diversity 1.

I’d like to see the industry known for insurance professionals coming from all walks of life, and that success can be reached in our industry no matter who you are. 2. To not push it for the sole sake of sounding relevant and politically correct. A great agent is a great agent regardless of gender or race. 3. Get more women and minority producers. 4. I think the industry, especially the carrier side, has done a better job with focusing on diversity over the last 10 years. Definitely still room for improvement though! 5. We need more women and minorities in the work force! How do we do that? 6. If the candidate is qualified for the job and carries good interpersonal skills, speaks professionally and has insurance knowledge, I don't think it matters in terms of gender/race. 7. Awareness that we need more minority professionals in this industry. It is a very white business. Women are very well represented in my agency though, which is great. 8. A better understanding of unconscious bias. 9. Stop making race, gender or background such a big damn deal and just treat people fairly. Having programs like a diversity or inclusion program is freaking racist. Do a better job at hiring good, honest people regardless of race, ethnicity, gender, etc. 10. Attract different races to the industry and provide the resources to educate/coach them so they can enhance the talent pool. 11. I feel like the companies are very diverse because they’re all headquartered in big cities, but small towns don’t have much diversity. 12. Where I live in Miami, there is already a lot of diversity. However, when I travel for training, I see very little diversity in insurance. Making a considerable effort to seek out young, talented diverse people is what I am looking to do with my agency. 13. I'd like to see more diversity in upper management of agencies and carriers. 14. I think people need the space to discuss the issues in our industry because of the lack of diversity. More push for diverse leadership. 15. Would like to see a focus on programs helping lower income neighborhoods with professional career programs, to prepare them for their future; to allow them the same opportunities I had.

36 | INSURANCE JOURNAL | APRIL 19, 2021

continued from page 35

current broker does an okay job, selling them virtually is pretty hard to do.” One of the challenges for younger producers is credibility, and building that virtually is even more challenging. But youthful looks or lack of credibility won’t matter if the producer is knowledgeable about the coverages they are selling, Fuqua said. “What I tell my younger producers is to be very curious. Ask lots of questions to everybody in the office, whether it’s the service team or other producers,” he said.

Mariah Arriola Summer Job: Mariah Arriola

When Mariah Arriola took a summer job at Geico, she never thought insurance would be her career choice. But then she met with Arizona-based RightSure Insurance’s Executive Vice President Felicia Duarte, a family friend, during her sophomore year in college. “She told me, ‘We’re hiring. We’re looking for college students. It’s very flexible. You can do your homework there. It’s great,’” Arriola told Insurance Journal. She interviewed and was offered the job. That was six years ago. “It was awesome,” said the

now 24-year-old Arriola. “I learned so much, so quickly. I first started by sending out applications for DriveTime customers who were just needing to get [new cars] off the lot. You start as a shipper, and then I moved to sales.” When she graduated college in 2018, RightSure offered her the opportunity to earn the Certified Personal Risk Manager designation and Certified Insurance Counselor designations through the National Alliance. She earned those designations in one year. While Arriola still works with DriveTime customers, she now has added personal lines sales including homeowners, auto and recreational lines, as well as some more affluent clients. “I’m kind of like a hybrid agent," she said. Her favorite thing about being an independent agent: the relationships and getting to know her clients. “Along the way, you’ll make your mark, and customers actually want to know a little bit more about what you’re selling them, versus like, ‘Hey, I just need a homeowners policy. Just give me the lowest priced one,’” she said. “There’s a lot of potential for growth if you want it. It’s not going to come to you." Her advice for others just starting out in the insurance world: always be open to learning more. “There’s always something new with carriers or underwriting. It’s always changing,” she said. “It takes a lot to stay in the loop of what’s going on to be a good agent.”

Family Business: Matt Frank

Matt Frank, 32, grew up in INSURANCEJOURNAL.COM

Matt Frank the insurance business. His father, Walt Frank, vice president and shareholder at Robertson Ryan & Associates, has spent more than 40 years in the insurance industry. He never planned on joining his father’s industry, but that changed when the 2008 recession hit. It made finding good internships difficult during Frank’s college years. In 2011, he took a chance, applied at Liberty Mutual and spent the next five years working as a commercial underwriter. “I wasn’t thinking about insurance in college, but I didn’t shut the door on it either,” Frank said. After gaining valuable technical insurance knowledge at Liberty Mutual, he jumped into the independent agency channel four years ago, joining the same agency as his father, Robertson Ryan & Associates, based in Milwaukee, Wisconsin.

'I love the ability to make my own schedule, to be extremely flexible.' The agency side of the business is where he feels INSURANCEJOURNAL.COM

best. “I wanted to control my own destiny, and at Robertson Ryan, I get to control everything I do,” said Frank, who is now a vice president at the firm. “We all own our own books of business. I’m an independent contractor, and that was very attractive to me.” There are a few disadvanTrevor Hash tages to being fully indepenSurety Business: Trevor Hash dent, but the pros outweigh Twenty-six-year-old Trevor those cons, he said. Hash has spent his entire life “I love the ability to make around the insurance world. my own schedule, to be extremely flexible,” he said. His father has been a surety bonding specialist for many “But you have to be driven and have a lot of self-control.” years. “I always told myself I’d never get into the busi Frank’s underwriting expeness, and then after college, rience has helped him build it seemed like a pretty good his book at Robertson Ryan. “It’s definitely been very career,” Hash said. helpful to help launch my career,” he said. “I’m growing my business, and I’m selling with confidence, too.” He says the pandemic made selling more difficult in a virtual world, but in his view, there are positives to that as well. “While I’m already meeting with clients in person now that I’m Hash began as a surety vaccinated, it’s a lot easier underwriter working to do a Zoom call or a phone alongside his father for two call and now clients are way years and decided to make more okay with doing that,” the switch to the agency he said. “In the past, you’d side. In February 2020, he have to drive out to have was hired as the director of an appointment, meet with surety for Haylor, Freyer & them in person, and that really wasn’t always efficient, Coon based in Syracuse, N.Y., leading a team of nearly 40 especially on smaller surety producers. Then, the accounts.” pandemic hit. The comfort level of customers with Zoom is leading “With COVID, it’s really to greater efficiencies in tough right now to go knocking on doors, and there’s no sales. “Now, it’s just nice just events to go meet people,” to be able to have a 20-minute Zoom call with a client Hash said. “In some ways, to go through their renewal, it’s moving us back to the old ways of cold calling and without having to even leave solicitation that way.” my house," he said.

'People my age and younger are looking for quality of life now, [jobs] where the money is great, but with work-life balance.'

But Hash added that COVID has opened new doors for other unique ways to solicit on digital platforms. “I think COVID has pushed things forward maybe five years, where now [senior leadership is] forced to buy into digital platforms,” he said. “They’re starting to see the value." The push to go digital and work from home options that came with the pandemic are huge benefits to younger agents, Hash said. “People my age and younger are looking for quality of life now, [jobs] where the money is great, but with work-life balance,” he said. Hiring new talent is competitive, and to get good people, agencies need to differentiate, Hash added. “I think working from home now with the capabilities of Zoom is definitely a big advantage for a lot of people,” he said. While Haylor employees are back in the office, the firm maintains work from home options, two or three days a week. That has been a perk when attracting new talent to the agency. “Some of our competitors in the area brought everyone back into the office, and we’ve been lucky enough to pick up a couple of people because we’re able to offer those kinds of benefits," he said. He offered a word of advice for senior leaders: listen. “Younger people can bring different insight, different ideas, and innovation to stale topics or initiatives.” For an industry that has remained largely unchanged, that’s important, he said.

APRIL 19, 2021 INSURANCE JOURNAL | 37

Idea Exchange: Young Talent Engaging and Developing Younger Generations

he insurance workforce is undergoing substantial shifts. Remote work has become the norm, automation and techBy Tony Cañas nological advancements have impacted most roles, and five distinct generations are working alongside one another. At one end of the spectrum, Traditionalists (born before 1945) and Baby Boomers (born between 1946 and 1964) are retiring at rapid rates, having started their careers in a time before personal computers and the internet. At the other end, members of Generation Z (born after 1996) are accepting their first jobs, many not remembering a world without smartphones and social media. As older generations retire, insurance organizations must focus on cultivating the next generation of leaders. Attracting young professionals to the insurance industry is key and many organizations such as the Insurance Careers Movement, Gamma Iota Sigma and Invest are making great strides in promoting the insurance industry’s extensive attributes. However, once you’ve recruited these individuals into your organization, it’s vital to commit to their long-term growth and development. While there’s

38 | INSURANCE JOURNAL | APRIL 19, 2021

no one-size-fits-all approach, having a general understanding of what drives today’s young professionals will help insurance organizations build a strong and diverse internal talent pipeline and retain employees for years to come.

Flexibility

For younger employees, work is something you do; it’s not a place you go. In light of COVID-19 and the resulting virtual work environment, this sentiment rings even more true. Keep in mind that members of Generation Z are incredibly comfortable interacting online. Many started their first professional positions during the pandemic and even completed college coursework in virtual classrooms. Members of this generation prefer to work independently, meaning they see even less reason to commute into an office daily. While members of the slightly older Millennial generation (born between 1981 and 1996) are accustomed to going into a physical office, they also seek flexibility in hours and location. Some carriers were allowing employees to work from home at least once a week prior to the pandemic. In The Jacobson Group’s 2021 "Q1 Insurance Labor Outlook Study," conducted in partnership with Aon plc, we found more than half of insurers are planning to offer full-

time remote work when offices reopen. More than three-quarters of insurers will provide occasional remote work options. If your organization is planning to reinstate full-time, on-site workweeks, now’s the time to reevaluate and consider a solution that enables you to remain on par with the competition.

Management Styles

Given the environment in which each generation grew up, there are a few common tendencies among Gen Zers and Millennials. Members of Generation Z were predominantly raised by Generation X and bring that shared competitive edge to their work. They are comfortable with authority and although they seek autonomy, desire frequent and direct feedback. The majority of Millennials were raised by Baby Boomer parents and have a collaborative mentality. They prefer their managers play the roles of coaches and mentors. Perhaps surprisingly, members of Generation Z typically prefer face-to-face conversations over written communication. Since in-person meetings are unlikely for the foreseeable future, ensure you’re leveraging video chat as frequently as possible. Millennials still value instant messaging and email; yet also appreciate the sense of connectivity garnered from a video call. As you

INSURANCEJOURNAL.COM

tailor your management and communication styles to be most effective, take these generalizations into account, yet also ask your employees about their personal preferences. Most entry- and junior-level roles have an element of routine. Consider the areas you may be able to gamify to keep employees engaged in more monotonous tasks. This could take the form of team competitions, point systems and rewards programs, or even virtual leaderboards. Help them understand how the work they are doing is impacting larger company goals. By making work fun and engaging, young professionals will be more productive and feel a sense of connectivity to their role and organization.

Career Development Opportunities

Now that Millennials have anywhere from about five to nearly 20 years of experience under their belts, they’re seeking to move forward in their careers. Older Millennials are approaching senior management ranks and ready to join Generation X in taking on the executive and leadership positions left vacant by Baby Boomers and Traditionalists. They’re driven by a sense of shared purpose, yet easily frustrated by a lack of upward mobility. Members of Generation Z tend to think about their careers in a non-traditional and less linear way than previous generations. Rather than specializing in one area, they have interests that span several

INSURANCEJOURNAL.COM

departments and skills that can be applied in a number of areas. Use this agility to your advantage. If your organization doesn’t already have a formal career development program, now is the time to create one. As a part of this program, ensure you’re providing visibility into all opportunities within your organization, and communicating the skills, attributes and potential steps that will help someone get there. Encourage traditional mentorships, as well as peer-mentoring relationships, to help prime young professionals for eventual leadership opportunities or to assist them in developing specific skills. Both Gen Zers and Millennials seek stability and desire to grow with a company; however, if they don’t see a clear future, they won’t hesitate to keep looking.

Ongoing Support

As a whole, younger generations expect more from their employers than those before them. Diversity, equity and inclusion is a primary focus throughout the entire industry, and a critical element for Generation Z. As the most diverse of the generations, failing to represent minority groups in all levels of your organization is even more apparent to Gen Zers. Explore how your organization is prioritizing DEI, starting with the executive team. How can you ensure minority voices are represented? How can you build a diverse and equitable talent pipeline?

Financial and mental health are also areas where a lack of employer participation will be evident. Student loan assistance is becoming standard across all industries. Get out ahead of the competition by incorporating this offering within your current benefits program. Wellness programs should also be prioritized. In a 2019 study by Mind Share Partners titled “Mental Health at Work Report,” half of Millennial respondents and 75% of Generation Z respondents shared they had left roles for mental health reasons. Younger generations are more open about depression and anxiety. Help normalize these feelings and support individuals by providing resources and tools for assistance. The insurance industry remains a candidate-driven market and what tomorrow’s leaders desire in a long-term employer is shifting. Take a fresh look at your retention strategy, talk with younger workers to better understand their unique needs, and help pave the way for ongoing success within your organization. Cañas is a Property and Casualty Client Advisor with The Jacobson Group, a provider of talent to the insurance industry. Cañas is also the co-founder and chief motivational officer at Insurance Nerds and co-author of the best-selling book Insuring Tomorrow. Phone: 800-466-1578. Email:tcanas@ jacobsononline.com.

APRIL 19, 2021 INSURANCE JOURNAL | 39

Idea Exchange: Tech Talk

Finding Best and Brightest Agency Talent Demands New Approach

By Tom Wetzel

ll talk and very little action.” Two co-founders of a firm dedicated to helping insurers and agencies “meet their talent needs deliver a blunt assessment of the industry’s recruiting performance and what must change to improve it. “The argument that the insurance industry doesn’t understand the next generation is just a crutch,” says Sharla Floyd, one of the co-founders of Verto LLC. The company name comes from Latin, in which one of the meanings is to transform. “If we are to attract our fair share of the best and brightest of the current and future

40 | INSURANCE JOURNAL | APRIL 19, 2021

generations, only a major transformation in both messaging and outreach efforts will deliver the results we want,” says Noelle Codispoti, the other co-founder. Prior to founding Verto, both women started their careers at insurance companies before working for Gamma Iota Sigma, the national scholastic insurance fraternity. “Keep the messaging simple and authentic,” says Floyd. “If an agent or someone from an insurer goes to a classroom to talk about insurance careers, keep it real. Tell your best story. Don’t talk about policies and claims, don’t even mention the words. Talk about outcomes, talk about real situations that students can relate to.” Floyd adds that attitude and approach are also critical elements. “Agents are great at selling and going after new business,” she says. “Think of the recruiting process as a sales process. It’s about cultivating relationships. You understand the prospects and what they are looking for. You then use consistent messaging, discipline, and perseverance to find the right people. At the same time, agencies and insurers alike need to understand how they are

being perceived when they talk to students about insurance careers. Don’t come off as sounding like you are just trying to find someone to fill a spot. Make it clear you want to find the best and brightest and that’s why you came.” Codispoti adds that agencies should think long-term when building a relationship with a local high school or college. “Our industry does have a great story to tell but we don’t tell it enough,” says Codispoti. “We can’t preach or lecture or ask for a chance to pitch only when we have a job opening. We all want a quick fix to the problem; however, the solution takes time, and you have to keep at it.” Floyd says that according to the Bureau of Labor Statistics, only 4% of the next generation is looking at insurance as a career. “That means only 6% of this generation has actually heard about insurance as a viable career,” she says. “Our experience tells us that persistence pays off.” In 2008, the National Association of Surplus Line Offices (NAPSLO) and the American Association of Managing General Agents (AAMGA) launched an ongoing recruiting campaign, regularly showing up on many college campuses year after year. “When the two associations merged in 2017 to create the Wholesale & Specialty Insurance Association, recruiting efforts kept right on going,” she said. Floyd added the Risk and Insurance Management Society (RIMS) has consistently maintained strong recruitment efforts. “Risk managers are not trying to fill entry-level positions,” she says. “RIMS understands, however, the need to attract as many as possible to choose insurance as a career if they are to have the opportunity to find the right people later. The truth is, we need them more than they need us.” Wetzel is CEO of Thomas H. Wetzel & Associates, an insurance marketing firm for independent agents whose signature services include a partnership with LivePerson to bring HIPAA-certified messaging and IBM Watson to the insurance industry, the Wetzel Digital Roadmap, website design and maintenance, and content creation. Website: www.wetzelandassociates. com. Email: twetzel@wetzelandassociates.com. INSURANCEJOURNAL.COM

Idea Exchange: The Competitive Advantage Why Agencies Need to Improve Key Metric Measurements in Today’s Economically Challenging Times

gency executives can greatly increase the success of their organizations if they know how many customers they By Chris Burand have. That sounds fundamental. However, I find that most agencies do not have solid counts. They think they do, but they do not. Similarly, knowing your retention rate would benefit the agency because slight changes in retention rates make outsized differences in growth and profit. Most agencies estimate retention but virtually 100% of agencies measure retention incorrectly. Insurance companies measure retention incorrectly, too. Knowing whether an agency is growing its customer base is critical. Otherwise, in a hard market, many people are going to congratulate themselves for growth when the growth is nothing but inflation.

42 | INSURANCE JOURNAL | APRIL 19, 2021

Some agency executives think their agencies are growing, when in reality, their customer count is decreasing. Rates are just increasing faster than the customer count is decreasing, but at some inflection point, no matter how much rates increase, there will not be enough customers left to support the agency. These are basic metrics. More sophisticated measures are virtually worthless if an executive does not get these measures correct. Too much wishful thinking and sloppiness exists now, and agencies’ proclivity to not pay attention to reality will last for a while. Here are suggestions for those wanting longer term success.

historical counts are wrong as often as they are correct. The reasons vary by agency management platform and agency procedures. Getting these counts correct is vital. Measure the policy counts, too. Understanding whether clients think highly enough of the agency to move their business to you is obviously critical, far more critical than whether commissions are increasing. Client growth is core to whether an insurance distributor is

1. Measure the number of accounts you have every year. Then run your historic

reports to learn if the historic account counts are different from the original counts. I see this happen often, and the differences are material. The

INSURANCEJOURNAL.COM

achieving real organic growth rather than faux organic growth. As more carriers move toward contingency plans focused on policies in force (PIF) counts, knowing whether the carriers are counting policies correctly is in an agency’s best interest. I, for one, would always want to reconcile their counts with my own reports carrier by carrier.

2. Measure retention correctly. When

humans were still using stone tablets, retention was difficult to measure. Now, if an agency (or carrier) is inputting data correctly and in a timely fashion, retention should be easy to measure. Run a report of all of your clients as of January 1. Then run a report of the clients that have been with the agency for at least one year as of December 31. That is your retention. Do be careful how rewrites are handled. Rewrites can distort new business figures and retention numbers.

3. Measure whether your accounts are getting larger or smaller.

If you do not have accurate account and policy counts, measuring precisely what is happening to your account size is impossible. The goal, especially in a hard market, is to see average commission per account increase. Measure it by premium, too. If accounts are getting smaller, there is almost certainly something going wrong. One of the factors I am seeing is that commission rates are decreasing ever so slightly, by tenths. The reasons for average commission rates decreasing vary, but the impact is significant. Most agency executives are missing this point because in most cases, carriers are not issuing commission reductions. Somehow and someway, commission rates are decreasing. Another cause of commission per account decreasing could be a reduction in policies per account (and no one can measure cross-sales if the account and policy counts are not accurate). In tough times, people may not purchase as many policies. INSURANCEJOURNAL.COM

Similarly, people may reduce limits and other coverages. If this happens, your E&O exposures are increasing without proper documentation. If the agency is growing commissions but not client counts, the odds are high your clients will be shopping more in the near future. Getting ahead of this certainty makes considerable sense.

4. Stay on top of late pays. So much

knowledge has been lost in agencies since the last hard market. Keep in mind that in most situations, a policy cannot be canceled for nonpayment if the client enters bankruptcy. The agency eats the loss. Also, an increase in late pays indicates future retention declines. Staying on top of these situations helps prevent bad debt and may help you and your clients who are suffering financial difficulties.

5. Keep extra money in your bank account. Cash is king in tough economic

times. Depending on what the economy incurs, as well as your clients, you may need more cash. A good example for some agencies is that lots of premiums will be returned due to audits. You will have to return commissions, and your producers may need their paychecks adjusted for their share of the returned commissions. A good probability is that many producers will not have any money to return so the agency will need to adjust paychecks going forward. Meanwhile though, an agency will need extra cash to cover the difference.

6. Enter SIC/NAIC code data. Knowing

what industries your clients are in and being able to run accurate reports is extremely valuable. So much is changing so quickly that the only way to be nimble enough to move with the market, to even get ahead of the market, rather than reacting after the fact, is to have good data. Most agencies have failed to enter this data into their agency management systems. Therefore, they do not really know how much of their book is affected by shutdowns or booms. They do not know how to plan for the future based on their client base. They cannot use this data to build strategically. Instead, efforts are on a case-by-case basis with no overall strategy. As a result, the agency loses. These are six simple but essential metrics every single agency should be tracking if the goal is to succeed and protect the agency. The measures take relatively little extra effort, but some extra effort is required. Accuracy is important. I always get a kick out of the benchmark reports where some agency reports their retention is 95%. When I ask for proof, the answer is always that it is an estimate. They won an estimate contest against all the other agencies estimating their retention. Real measures are critical to your true success rather than headline success. Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-4853868. E-mail: chris@burand-associates.com. APRIL 19, 2021 INSURANCE JOURNAL | 43

Idea Exchange: Agency Management

Fearlessness Forecasts Success R

ecently I had a conversation with a well-known author and sales coach of high performers in which we discussed critical characteristics of successful commercial lines producers. One stood out to me. This consummate coach of high performers identified fearlessness as a key trait that superstar By Tony Caldwell producers possess, and I couldn’t agree more. After helping hundreds of entrepreneurs create new insurance agencies, I think it is a tremendous forecaster of success as an agency founder. At the same time, however, as I reflected on our conversation, I realized there is no such thing as fearlessness, which literally means the absence of fear. Everyone, including superstar producers and agency founders, is afraid. So the absence of fear simply is not part of the human condition. If it were, we would not, and could not, have survived as a species. When it comes to successful selling or entrepreneurial activities, the role of fear, or the lack of it, is not in the emotion itself; rather, it is in the behavior that takes place in response to it. All successful people are able to act regardless of their fear, and that is a different characteristic altogether. It is known as courage. But courage is also not an innate human quality. A person is not born with courage. It is a learned behavior. It is a habit. It is a behavior and habit that anyone can develop. Here are some practical tips for developing courage and fear conquering (fearlessness). 44 | INSURANCE JOURNAL | APRIL 19, 2021

Tip 1: Practice

‘When what you fear has no power to constrain you, you become truly fearless.’

When I was first training to be a pilot, I was deathly afraid of stalling the airplane. Stalling occurs when an airplane quits flying, and if uncorrected it results in a spin, which can be very dangerous and even fatal. During my training, I once put the airplane in a spin. That created a tremendous fear for me of stalling the airplane. That fear, in turn, led to poor performance as a pilot. Fortunately, I read a story about Sean Tucker, a world champion aerobatics pilot, who had experienced the same kind of paralyzing fear of stalls. Sean learned to deal with his fear by doing hundreds of stalls. Practicing the thing he was fearful of allowed him to conquer his fear and become “fearless.” After practicing stalls hundreds of times myself, I grew no less fearful of stalls, but I learned to perform well despite my fears. Practicing anything that scares us creates what I call “inurity.” Inurity is what you get used to, and what you get used to loses its power. When what you fear has no power to constrain you, you become truly fearless.

Tip 2: Interpretation

Another thing that can help us develop the ability to conquer fear and its limits on our progress, is interpretation. How we decide to view scary, negative and unpleasant things, including failure, determines the power they have over us. The biggest cause of fear and the paralyzing inaction and poor performance on the part of entrepreneurs and producers is the prospect of failure. Another is the possibility of being embarrassed or of being shown to be incompetent, inadequate or unable. What superstars learn is that failure is not fatal and when interpreted and seen with the correct lens it INSURANCEJOURNAL.COM

rapidly leads to improved performance. When you develop the habit of reflecting on every scary or unsuccessful venture, you turn failure into a learning opportunity. And in doing so, you rob failure of its emotional power. It is that emotional power which makes fear so potentially paralyzing and that prevents progress. Successful people teach themselves how to interpret scary things as opportunities to improve. As the 19th century philosopher Friedrich Nietzsche said, “What doesn’t kill you makes you stronger.” Almost nothing a producer or entrepreneur faces is death-defying, so reviewing experience as an opportunity to learn becomes transformative for those willing to try it.

Tip 3: Accommodation

New activities, unfamiliar experiences or opportunities outside our perceived level of expertise will always create a certain level of fear for us. It is also true that even

routine activities may not lose their ability to frighten us. For example, even as an experienced pilot with thousands of hours flying all kinds of airplanes under every conceivable condition, I still experience fear every time I climb into a cockpit. But I understand this fear and use it to sharpen my performance. In this way I do not avoid fear, but I also don’t conquer it. I accommodate it within myself. This is how veteran soldiers are able to face the terrors of battle that seem impossible to those of us who have never had that experience. It is also this accommodation that allows some to become super producers and others to become successful agency founders. Dan Sullivan, the founder of The Strategic Coach program, says, “The entrepreneur who isn’t scared isn’t making progress.” This certainly applies not only to entrepreneurs, but also to athletes, producers and anyone who seeks to be a

high performer. Conquering our response to fear is what fearlessness really is. This courageousness can be created, encouraged and coached. Those who win in sales and entrepreneurial activities are those who are willing to put fearlessness in action into practice. Understanding that anyone can become “fearless” with practice, interpretation and accommodation means that anyone willing to make the effort can become a successful commercial lines producer or agency founder. With this knowledge you can move your own performance to a higher level and also coach your team to a place that perhaps you, and they, previously believed impossible. Those who struggle can become superstars as they become “fearless.” Caldwell is an author, speaker and mentor who has helped independent agents create over 250 independent insurance agencies. Website: www.tonycaldwell.net. Email: tonyc@oneagentsalliance.net.

Our umbrella’s easier than this. Save time and get standalone personal umbrellas online in minutes, no signed application needed with an Admitted carrier, rated A XV by A.M. Best. Quote now at PersonalUmbrella.com.

3 MINUTES. 4 QUESTIONS. $5 MM.

Available nationally. Underwriting criteria varies by state. Visit us online for guidelines. A.M. Best rating effective March 2021. For the latest rating, visit ambest.com. California Insurance License 0D08438

INSURANCEJOURNAL.COM

APRIL 19, 2021 INSURANCE JOURNAL | 45

Idea Exchange: Minding Your Business 10 Rules for

Family Businesses

amily businesses are the backbone of the U.S. economy. There are 5.5 million family businesses in the United States. According to the U.S. Bureau of the Census, about 90% of American businesses are family-owned or controlled. Ranging in size from two-person partnerships to Fortune 500 firms, these businesses account for half of the nation’s employment and half of the Gross National By Catherine Oak Product. Wow. These are amazingly high statistics. The secret to a successful family business is based on treating it like a business, not as an extension of the family. There are many family run insurance agencies. The successful ones tend to incorporate the following 10 basic rules.

1. Do not create a job for a family member. Either you have an opening for

which they qualify, or you do not. If there is no suitable opening, wait until you need to hire someone and/or they have the appropriate qualifications.

2. Have the family member work somewhere else first. They must prove

to themselves, to you and to the other employees that they can succeed on their own. It is also far healthier for the business to have them come in with some outside experience, fresh ideas and training. It is not necessary that it be in an insurance company or agency, although this would be helpful.

3. Treat family members the same as any other employee. Avoid the two extremes

— either cutting them too much slack or riding them harder than other employees.

Family members might try harder, or they might not try at all. They need motivation from the owner or their manager, just like any other employee. Apply all agency rules to family members and adhere strictly to performance evaluations and salary administration. Give family members responsibility and authority as they become ready for it. Don’t second-guess their decisions within the parameters of authority you have granted. This is difficult to do with any employee and much more troublesome with family members, especially children.

4. If possible, have family members report to non-family employees. Just

because someone has the same last name of the owner does not mean they have the same level of authority and everyone needs to know this. Keep in mind, treat them like any other employee. See rule 3.

5. Build a firewall between family and business issues. Do everything that you

can to de-emphasize the family relationship when around other employees. Never discuss family matters in front of other people in the agency. Use the family member's name and try not to call each other dad, mom or junior during business hours. Likewise, don’t discuss business at family gatherings, since this can put a strain on family relationships and bore other people in the family.

‘Treat family members the same as any other employees.’ 6. Be clear about the business succession plan. Family members

should know the perpetuation plan so they know what is expected from them long before they are old enough to come into the agency. Don’t expect them to read minds. Pay attention to any child that might resent all the time in the past that was spent with the agency instead of them. Passive aggressive behavior by a jilted child can be 46 | INSURANCE JOURNAL | APRIL 19, 2021

INSURANCEJOURNAL.COM

very destructive to the business. Also, rivalries between siblings can wreak havoc on an otherwise successful business. If necessary, heal old wounds with the help of professional counseling. It is also recommended that children who are not associated with the agency should not be owners. Non-active owners might not appreciate what it takes to run the business and sometimes are a “fly in the ointment.”

7. Have one clear successor. It usually is

never a good idea to leave a business to two people (family members or not) on the basis of 50/50 ownership. The buck always has to stop some place. And two siblings can already have some built-in differences of opinion that make decisions more difficult to handle effectively. It can work in some cases, but these are the exceptions. At a minimum, put one outside person on the board of directors as a deciding vote. See rule 8.

cannot be a part of it. This is where tough love comes into play. Children do best when the rules are clearly spelled out and consistently followed. The new motto needs to be, “It’s nothing personal, it’s just business.”

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/ marketing, and perpetuation planning. Phone: 707-935-6565. Email: catoak@gmail.com.

THINK OUTSIDE OF THE BOX Sell More. Retain Better.

8. Create a board of directors that includes non-family members. When

Prospect Management Pipeline Reporting ISV Partner Producer Goal-Setting Producer Production Management

advice is needed on dealing with sticky issues, it’s important to have someone involved without familial emotional attachments. Use outside professionals, such as CPAs, attorneys or consultants. If there often seems to be impasses, it might be a good idea to give voting rights to the non-family board member.

9. Sell the business and don’t gift it. Most people do not appreciate something they got for free. The concept is that if they pay for it, or have to sacrifice something for it, they will value it more and do a better job of running the agency. Also, keep the IRS in mind. You must properly value the ownership you turn over to family members either through gifts or cash transactions. 10. Make sure all participating family members agree to these guidelines.

There is no sense in having guidelines or rules if no one agrees to them or if the rules are sporadically implemented. All family members must buy-in to these “rules” for the family business or they

GROW Your Agency Today! www.veruna.com

Veruna_InsuranceJournalAd_April21.indd 1

INSURANCEJOURNAL.COM

4/5/2021 1:21:24 PM

APRIL 19, 2021 INSURANCE JOURNAL | 47

Idea Exchange: Ask the Insurance Recruiter Three Steps to Improve Your Hiring Process

n January, my spouse and I made a spur of the moment decision to sell our house. It was exciting and nerve wracking all at the same time. It was hard to ignore the parallels between this experience and the hiring process. One lesson that stuck out was the fact that being prepared made all the difference. We could have just thrown the sign in the front yard but that would have increased the chance of the process falling spectacularly apart. Instead, we took time to fix up a few “to do” list items and make the house shine. Getting your agency’s house “market ready” is equally as necessary to ensure a successful hire. Don’t throw a posting out and let the chips fall where they may. Improve your interview process in three easy steps.

Step 1: Conduct Market Research to Finalize the Job Description

What type of employees do you want, and what type of employees can you get? There are a lot of houses listed in my community, but once I finalized my requirements there were only a few that made the cut. You need to go through the same market analysis before advertising your job. Just because there are insurance people in town doesn’t mean they are

prospects for you. 1.) Compile a list of direct competitors and review their directory of employees that fit the title, experience, education and so forth that meet your job profile. 2.) Run a LinkedIn search to determine who beyond your centers of influence are looking for jobs or are trying to relocate to your area. 3.) Review your candidate database for notes on compensation, benefits, PTO and other hard costs you know to be true about candidates at this level of position in your market.

Step 2: Fix, Update and Enhance Your Process Before the First Interview

What will applicants think when they walk in our door? There were a few fixer upper projects I had to do before our first showing. The same action applies to your interview process. Before you interview a candidate, take a minute to: 1.) Fix the broken parts of your process. Determine brokenness by looking at failed hires. Did you have a rogue hiring manager? Did you wait too long to address sensitive topics like compensation? Did the last interview go seven rounds, each getting more ridiculous by the hour? 2.) Update your process into the 21st century. Ease the burden on candidates. Personality profiles, applications, non-competes and offer letters must be done electronically through fillable PDFs forms and DocuSign. 3.) Enhance the process by infusing your culture at every turn. Our realtor said some people remove all personal family photos, but I kept a few up. I wanted buyers to see what it felt like to live in my house. Take candidates around for a tour. Show them brand videos and social media posts highlighting your amazing people. Create an informational overview with

stats, highlights, awards, benefits and any other notable pieces of information about your company. Give this to candidates before their first interview.

By Mary Newgard

Step 3: Create a Checklist for Hiring Managers and Candidates

What if this process goes all the way to an offer? Are we all on the same page about what it takes to get there? A checklist was hugely helpful in closing on our new house. I was able to make sure all my questions were answered and not a single piece of paperwork was missing. The same works for hiring a new employee. Communication is the easiest way to impress a candidate. Downstream the process and set timelines you can stick to. Here are examples of items that fall on the checklist: 1.) Profile test: Yes or No? 2.) Application: First step or right before an offer? 3.) Due diligence: Background check, drug screen, non-competes and references (Yes or No?) If yes, when? 4.) How many interviews and with whom? 5.) Who creates an itinerary? 6.) What interview questions and topics are covered in round one, two, or beyond? 7.) What is the total compensation package: Salary, variable comp, benefits (including waiting period), PTO, VTO, 401(k), working hours, remote vs. office, start date, review, onboarding schedule, training schedule?

Newgard is partner and senior search consultant for Capstone Search Group, a national recruiting firm dedicated to the insurance industry. Email: asktherecruiter@ csgrecruiting.com.

April 19, 2021

Insurance Company of Greater New York 200 Madison Avenue, Third Floor New York, NY 10016

Greater New York Mutual Insurance Company 200 Madison Avenue, Third Floor New York, NY 10016

Strathmore Insurance Company 200 Madison Avenue, Third Floor New York, NY 10016

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

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 021186200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

April 19, 2021

ACE Fire Underwriters Insurance Company 436 Walnut Street Philadelphia, PA 19106

Pacific Employers Insurance Company 436 Walnut Street Philadelphia, PA 19106

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.

April 19, 2021

Physicians Mutual Insurance Company 2600 Dodge Street Omaha, NE 68131

TypTap Insurance Company 3001 SE Maricamp Road Ocala, FL 34471

The above company has made application to the Division of Insurance to amend their Certificate of Authority 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 Property and Casualty Insurance in the Commonwealth of Massachusetts.

INSURANCEJOURNAL.COM

Advertisers Index Access Home Insurance SC3, S3 www.accesshomeinsurance.com Applied Underwriters www.auw.com 2, 3, 52 Builders & Tradesmen's Insurance Solutions www.btisinc.com 5 EZLynx www.ezlynx.com 21 Golden Bear Insurance www.goldenbear.com 13 Hudson Insurance Company www.hudsoninsgroup.com 16 Insurance Technologies Corp. www.getitc.com 41 Insurbanc www.insurbanc.com 15 INTACT Insurance www.intactspecialty.com 25 JM Wilson www.jmwilson.com S2, M2 M.J. Hall & Company www.mjhallandcompany.com W3 McGowan & Company, Inc. www.mcgowanins.com 19 Monarch E&S Insurance Services www.monarchexcess.com W4 Nationwide Mutual www.nationwide.com 29 Omaha National Underwriters www.omahanational.com E1 Pacific Gateway Insurance Services www.pgiainsurance.com W1 PersonalUmbrella.com www.personalumbrella.com 45 Philadelphia Insurance Companies www.phly.com 7 Prime Insurance www.primeis.com 23 Smart Choice Agents Program www.smartchoiceagents.com 9 Summit www.summitholdings.com SC1, S1 Veruna www.veruna.com 47

APRIL 19, 2021 INSURANCE JOURNAL | 49

Closing Quote Why Nonstandard Auto Is More Critical Than Ever

ustomers, insurance carriers and their dis-

tribution need nonstandard auto protection for drivers By Troy Korsgaden now more than any time in history. Although some carriers have declined to cover higher-risk drivers in the past, that could change, partly as a result of economic turmoil caused by the COVID-19 pandemic. Early in 2020, both consulting firm McKinsey & Co. and BMS Group, a reinsurance broker, predicted that the U.S. could see a surge in the market for nonstandard auto insurance. On January 4, Allstate Corp. bought nonstandard auto insurer National General Holdings Corp. for about $4 billion in cash. Allstate scaled its auto insurance business as COVID-19 crushed traffic on roads and reduced claims. National General reported about $5.6 billion in gross written premiums in 2019, with nonstandard auto policies accounting for 44%. Another noteworthy deal, which was completed on the last day of 2020, was State Farm’s purchase of nonstandard insurance provider Gainsco for about $400 million in cash. It is State Farm’s first acquisition of another insurance company in its 98-year history. Let’s examine why a renewed focus on this type of insurance is important for customers, carriers and

distribution. We’ll start with the key part of this equation: the customer.

The Customer

According to IBISWorld, the market size of the U.S. automobile insurance industry is approximately $311 billion in 2021. Estimates vary regarding the prevalence of nonstandard coverage. Various experts say it makes up anywhere from 20% to 40% of premiums for personal auto insurance. Just because one family member has driving issues shouldn’t knock out the entire family unit from getting the type of protection they need. Those issues can include a DUI, multiple accidents, SR-22, being recently nonrenewed from a preferred policy and poor credit — factors that can prevent drivers from qualifying for preferred policies/rates. The average household today has multiple vehicles and often multiple drivers. They expect and demand a “one-stop shop” for all their insurance and financial needs. This includes providing protection, even when the household account is not a preferred risk.

embracing the nonstandard market with expertise pricing, thus providing customers with sustainable protection solutions. However, most carriers are looking to form strategic alliances or to purchase existing nonstandard carriers as partners. The customer has spoken: carriers must provide a “one-stop shopping experience.” Not doing so opens the door to competition.

Distribution

Finally, increasing the focus on nonstandard coverage can benefit distribution’s ability to provide unrivaled service. Whether advisors are employee-led, contractor-led, brokers, firms, agents or team members, the way forward is to provide unrivaled service, advice and product solutions. Most practitioners would not want to try to make a living on nonstandard auto only. But ignoring it altogether means a significant missed opportunity. The firm owners, brokers and agencies that have a laser focus on the economics business

realize they must provide real solutions for all of their clients, even in situations that are complex, difficult and risky. Providing nonstandard service and solutions not only wins new business, it also sustains relationships. Great relationships lead to referrals and additional opportunities. To provide unrivaled service requires that we focus on factors other than price. If you do not want price to be the only issue, you must separate yourself from the competition. Offering nonstandard coverage when your competition does not is one way to leap ahead. The nonstandard auto market has never been more important. As our great industry retools, this is one priority that needs to be at the top of the list as we serve our customers. Through Korsgaden International, Korsgaden serves as a consultant, speaker and vendor to most every insurance carrier in the United States and abroad, including nonstandard carriers and their affiliates.

The Carrier

Until recently, most of the largest carriers focused on the “preferred market.” A few of the leading carriers have had affiliate companies/ brands to provide nonstandard solutions for their customers. Other preferred carriers tried to provide a “near-standard“ option, only to get clobbered in many instances. Progressive and Geico are examples of companies

50 | INSURANCE JOURNAL | APRIL 19, 2021

INSURANCEJOURNAL.COM

Presented by

SURVIVAL OF THE FITTEST — At this year’s summit, some of the newest InsurTechs out there will make their case for support, survival, and success. We’ll examine the impact of COVID on growth strategies and evaluate the financial tools InsurTechs are using to survive and thrive.

Setting the Stage for InsurTech in 2021

How InsurTech Is Responding to COVID

The Elevator Pitch: InsurTech Entrepreneurs

InsurTech Survival Tools

Join us for this free VIRTUAL event | May 12, 2021

A VERY SPECIAL THANKS TO OUR SPONSORS

Presenting Sponsors

Supporting Sponsor

Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied.® For information call (877) 234-4450 or visit auw.com. Follow us at bigdoghq.com.