Insurance Journal West 2022-11-07

Contents

& Markets

8

Bad Driving, Inflation Among Factors Pushing Increase in Auto Loss Ratios

NCCI: Almost One Quarter of COVID Claimants Suffer Prolonged Symptoms

As Homeowners Rebuild After Ian, a Cooling New Housing Market Drops Material Costs

Court Dismisses 32 COVID-19 Business Insurance Cases Against Erie Insurance

Special Report

Closer Look: Top 50 Commercial Lines Leaders

BRONZE Best Agency to Work For – East: USI Insurance Services

BRONZE Best Agency to Work For – Midwest: Ansay & Associates

BRONZE Best Agency to Work For – South Central: Glenn Harris and Associates

BRONZE Best Agency to Work For – Southeast: Robins Insurance

BRONZE Best Agency to Work For – West: LP Insurance Services

Special Report: On the Road: Tough Trucking Market Brings Challenges, Opportunities

Spotlight: Agency E&O Survey

Closer Look: 4 mportant Aspects of Agency E&O Coverage

2022 Premium Finance Directory

Idea Exchange

Minding Your Business: M&A Deals Makers & Deal Breakers

Models, Moats and Moat Mortality

48

Ask the Insurance Recruiter: 9 Talent Acquisition Goals for Insurance Organizations in 2023

Closing Quote: It’s Time for the Industry to Get on the Same Page About MFA

Conventional to complicated. Traditional to atypical. No matter the complexity, we’ve got you covered.

BTC. THC. OSB.

of it gets our TLC.

Opening Note

Chairman of the Board 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

Women Leaders Women

are leaving top roles in U.S. firms at higher rates than ever before. Women leaders are switching jobs at higher rates than men in leadership, too, according to “Women in the Workplace 2022, ” the largest study on the state of women in corporate America by McKinsey & Co. and LeanIn.org. The organizations, which analyzed data from 12 million employees at more than 330 companies, have been tracking the state of female workers since 2015, with the findings published in an annual report.

The study says this trend could have serious implications for companies going forward.

“Women are already significantly underrepresented in leadership,” the study said. “For years, fewer women have risen through the ranks because of the ‘broken rung’ at the first step up to manager. Now, companies are struggling to hold on to the relatively few women leaders they have. And all of these dynamics are even more pronounced for women of color.”

This trend in no way shows that women leaders are less ambitious than their male coun terparts. However, the study reveals that woman leaders face obstacles their male leader peers do not.

“Women leaders are just as ambitious as men, but at many companies they face head winds that make it harder to advance,” the study said. “They’re more likely to experience belittling microaggressions, such as having their judgment questioned or being mistaken for someone more junior.”

For example, they are far more likely than men leaders to have colleagues question their judgment or imply that they aren’t qualified for their jobs. Women leaders are also more likely to report that personal characteristics, such as their gender or being a parent, have played a role in them being denied or passed over for a raise, promotion, or chance to get ahead.

Also, the study’s authors pointed out that it’s increasingly important to women leaders that they work for companies that prioritize flexibility, employee well-being, and diversity, equity, and inclusion.

“If companies don’t take action, they won’t just lose their women leaders; they risk losing the next generation of women leaders, too,” the study said.

Although women are broadly underrepresented in corporate America, the talent pipeline varies by industry. Some industries struggle to attract entry-level women (e.g., Technology: Hardware; IT and Telecom; Engineering and Industrial Manufacturing), while others fail to advance women into middle management (Energy, Utilities, and Basic Materials) or senior leadership (Oil and Gas).

The good news: The study found that women in insurance industry leadership roles fared pretty well in representation compared to other sectors. For insurance, women leaders held manager roles at 53%, senior managers at 40%, vice presidents at 40%, senior vice presidents at 35% and C-suite at 31%.

Wells

Staff Accountant Sarah Kersbergen | skersbergen@wellsmedia.com

EDITORIAL V.P. of Content Andrea Wells | awells@insurancejournal.com

Executive Editor Emeritus Andrew Simpson | asimpson@wellsmedia.com

National Editor Chad Hemenway | chemenway@insurancejournal.com

Southeast Editor William Rabb | wrabb@insurancejournal.com

South Central Editor/Midwest Editor Ezra Amacher | eamacher@insurancejournal.com

West Editor Don Jergler | djergler@insurancejournal.com

International Editor L.S. Howard | lhoward@insurancejournal.com

Assistant Editor Jahna Jacobson | jjacobson@insurancejournal.com

Content Editor Allen Laman | alaman@wellsmedia.com

Columnists & Contributors

Contributors: Jim Sams, Keith Savino

Columnists: Catherine Oak, Barry Rabkin, Mary Newgard

SALES / MARKETING

Chief Marketing Officer Julie Tinney | jtinney@insurancejournal.com

West Sales Dena Kaplan | dkaplan@insurancejournal.com Romeo Valdez | rvaldez@insurancejournal.com Kelly DeLaMora | kdelamora@wellsmedia.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

Sr. Sales & Marketing Coordinator Laura Roy | lroy@insurancejournal.com

Marketing Administrator Alberto Vazquez | avazquez@insurancejournal.com

Marketing Director Derence Walk | dwalk@insurancejournal.com

DESIGN / WEB / VIDEO

V.P. of Design Guy Boccia | gboccia@insurancejournal.com

Web Team Lead Josh Whitlow | jwhitlow@insurancejournal.com

Ad Ops Specialist Jeff Cardrant | jcardrant@insurancejournal.com

Web Developer Terrance Woest | twoest@wellsmedia.com

Web Developer Jason Chipp | jchipp@wellsmedia.com

V.P. of New Media Bobbie Dodge | bdodge@insurancejournal.com

Videographer/Editor Ashley Waldrop | awaldrop@insurancejournal.com

ACADEMY OF INSURANCE

Director Patrick Wraight | pwraight@ijacademy.com

Online Training Coordinator George Jack | gjack@ijacademy.com

Contact (800) 897-9965

‘Women are already significantly underrepresented in leadership.’

Bad Driving, Inflation Among Factors Pushing Increase In Auto Loss Ratios

By Jim Sams

auto insurers are coping with the largest direct loss ratio in 20 years because of factors that include historic inflation, a deterioration in driving behavior and sky-high jury awards, the American Property and Casualty Insurance Association says in a new report.

U.S.

APCIA said the direct loss ratio for auto physical damage reached 77.1% in the third quarter of 2021 — after reaching an historic low of 45.2% during COVID-19 business shutdowns in the second quarter of 2020.

The report says traffic levels regained as pandemic restrictions eased and were within 1% of pre-pandemic levels in the first half of this year. Along with the return to the roads came a 10% increase in the fatal accident rate from 2020 to 2021, the largest percentage increase in history. U.S. private passenger auto losses jumped 25% from 2020 to 2021.

“One of the things we ask in the report is, is this the new normal?” said Robert Passmore, the APCIA’s vice president for personal lines. “What is the new normal?

Normal is definitely more expensive. The report noted the inflation rate peaked above 9% in July, before dipping to 8.3% in August. But U.S. auto insurers are facing a variety of additional factors that are expected to continue pushing claims costs up into 2023 or longer.

The report includes several statistics that illustrate this trend:

Private passenger collision claim severity reached a record $5,743 in the first quarter of 2022, up 36.5% since the same period in 2020. Average bodily injury claim severity is up 24.2%.

Personal auto loss ratios climbed to 78.4% in the second quarter of 2022, compared to a quarterly average of 65% from 2016 to 2020.

The number of miles traveled on U.S. highways increased to 1.305 billion in the first five months of 2022, up from 1.119 billion during the same period of 2020, according to the Federal Highway Administration. The latest number is only slightly below the pre-pandemic level, which was 1.316 billion miles in the first

five months of 2019.

The traffic fatality rate reached 1.33 per 100 million vehicle miles traveled in 2021, up from 1.1 per 100 million in 2011, accord ing to data from the National Highway Traffic Safety Administration.

The average verdict for a lawsuit with more than $1 million awarded increased nearly tenfold from 2010 to 2018, rising to $22.3 million from $2.3 million, according to the American Transportation Research Institute. Personal injury judgments increased 320% in 10 years, to $125,366 in 2020 from $39,300 in 2010, according to data from Current Award Trends in Personal Injury.

The number of auto thefts jumped 25% from 2019 to the first half of 2022, reaching nearly 500,000 vehicles stolen with losses amounting to $4.5 billion.

The report says auto insurance rates have not increased enough to keep up with increasing costs. Direct written premiums for personal auto increased just 4.6% since last year, far below the rate of escalating losses.

Markets

NCCI: Almost One Quarter of COVID Claimants Suffer Prolonged Symptoms

By Jim Sams

Nearlya quarter of workers’ compensation claimants who were treated for COVID-19 experienced persistent symptoms or a relapse months later, according to a new study by the National Council on Compensation Insurance.

The researchers found workers who were hospitalized for COVID-19 were more likely to suffer “long-COVID” — 47% com pared to 20% of COVID patients who were not hospitalized. Overall, 24% of claimants suffered long-haul symptoms within 270 days of receiving acute care.

Claims costs were also much higher for claimants who experienced prolonged symptoms, especially if they were treated at a hospital. The report says treatment for long-COVID patients who were hospital ized cost an average of $216,000 per claim, compared to $40,000 for long-COVID claimants who were not hospitalized and $7,000 for claimants who were not hospitalized and did not suffer long-term effects.

Dr. Michael Choo, chief medical officer for Paradigm, worked with NCCI research ers on the report. The team studied 7,651 COVID-19 claims with accident dates from March 1, 2020 through June 30, 2021.

The researchers identified patients as having long-COVID if medical treatment for symptoms of the disease was reported more than 30 days after hospital discharge or the reported accident date, but no longer than 270 days after. That effectively gave each claim an eight-month observa tion window.

NCCI spokeswoman Christine Pike said the 270-day window was chosen so researchers could observe claims over a specific period with the most recently reported medical treatment data available.

The researchers found that females were more likely to report long-COVID, outnumbering males nearly four to one. However, females also make up greater

percentage of the workforce in the health care occupations that were most likely to contract the disease.

Long-COVID sufferers reported a variety of symptoms, most of which impacted the pulmonary and cardiovascular systems, the report says. Some experienced per sistent debilitating symptoms while others experienced a relapse.

The report says 1% of COVID claimants died from the disease, but 12% of those who were hospitalized did.

Claimants who were hospitalized and suffered long-COVID had longer duration claims. Medical treatment lasted 159 days on average for hospitalized COVID claim ants, with 89 days of that on temporary disability for the long-COVID patients. For long-COVID claimants who were not hospi talized, the duration of medical treatment was 93 days and temporary disability was 64 days.

Medical treatment for COVID claimants who were hospitalized but did not experience long-term symptoms lasted 26

days, with 35 days of indemnity benefits. For claimants who were not hospitalized and did not have long-COVID, medical treatment averaged 11 days and indemnity payments 19 days.

The data indicates that COVID-19 patients become less likely to exhibit long-term symptoms over time. While 47% of hospitalized COVID claimants reported long-COVID within the 270-day post-treat ment window, only 14% of those claimants reported symptoms after 240 days. For the 20% of non-hospitalized COVID claimants who reported long-COVID symptoms, only 4% did after 240 days.

The report states that because data was collected only through the first quarter of 2022, the impact of more infectious Omnicron COVID variant on long-COVID is unknown.

“However, we feel encouraged and reas sured by the progress that has been made toward prevention and more effective treatments for COVID-19 infections,” the report concludes.

AND THAT’S A WIN!

The California surplus lines stamping fee will decrease from .25% to .18% effective January 1, 2023.

The Surplus Line Association of California is committed to fostering a healthy, fair and competitive marketplace. Our board of directors, under the leadership of Janet Beaver, unanimously decided to lower California’s stamping fee from .25% to .18%.

Faced with historic inflation, concerns of recession, global political unrest, and emerging from Covid-19, the Surplus Line Association of California continues to grow its services for stakeholders while reducing cost. And that’s a win!

slacal.com/stampingfee

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Special thank you to the SLA’s own Iona Vinson for starring in this public service ad.

LEARN MORE

Figures $15

Million

The amount University of Iowa Hospitals & Clinics will pay employees who filed a class-action lawsuit alleging overtime and other payments were improperly paid. The plaintiffs, including about 11,000 workers, argued that managers didn’t pay overtime, bonuses, or accrued leave as quickly as state and federal laws require. The six employees who led the lawsuit will each receive $10,000. The other workers will each receive a share of the remaining $11.6 million. The lawyers will take home $3.4 million.

$10 Million

The amount a New Orleans Saints player was sued for in connection with an assault in Las Vegas during Pro Bowl weekend. Saints running back Alvin Kamara already faces a felony battery charge in the alleged assault of Darnell Greene Jr., who was leaving a club at a hotel and casino at about 6:30 a.m. Feb. 5. The lawsuit, which was filed in Civil District Court of Orleans, includes stills from surveillance footage at the hotel and casino, as well as a photo of the alleged victim after the beating and details from the police report.

$15 Million

The number of lawsuits over COVID-19 business interruption insurance claims against Erie Insurance that were dismissed in October by U.S. District Judge Mark R. Hornak in Western Pennsylvania. Hornak concluded the claimants failed to “plausibly plead” that they are entitled to coverage under their Erie policies.

The additional amount in coverage Harvard University is seeking from insurers for its defense of its affirmative action admissions program. The university has already exhausted $25 million in insurance coverage defending its program and wants its $15 million excess policy issued by Zurich Insurance to cover costs above that amount. Zurich maintains Harvard missed the dead line for notifying it of its claim. Students for Fair Admissions filed suit in 2014 over Harvard’s program and a Department of Justice investigation launched in 2017.

Declarations

Radioactive Contamination

— Said Ashley Bernaugh, president of the parent-teacher association at a suburban St. Louis, Missouri, school that has significant radioactive con tamination. A Chemical Data Corp. report confirmed fears about contamination at Jana Elementary School in the Hazelwood School District in Florissant raised by a previous Army Corps of Engineers study. The school sits in the flood plain of Coldwater Creek, which was contaminated by nuclear waste from weapons production during World War II. Inhaling or ingesting these radioactive materials can cause significant injury, the report said.

Carbon-Capture Project

“This landmark project represents largescale, real-world progress on the journey to decarbonize the global economy.”

— Dan Ammann, president of ExxonMobil Low Carbon Solutions, said about an agreement with EnLink Midstream to reduce industrial carbon dioxide emissions in Louisiana. Captured emissions from the CF Industries ammonia production plant in Donaldsonville — the top greenhouse gas industrial emitter in the state, based on Louisiana’s 2021 Greenhouse Gas Inventory report — will be trans ported through EnLink’s existing pipeline network and “injected into deep, underground geologic forma tions” on ExxonMobil property in Vermillion Parish. Officials estimate the startup date to be in 2025.

California Benzene

Public Adjuster Swarm

“We have bad public adjusters swarming impacted areas, soliciting, and trying to make a quick buck. Not only do individu als need more time to get out of a public adjuster contract during a state of emer gency, we need to reduce the percentage a public adjuster is entitled to immediately following a storm, ensuring their motives are aligned with helping Floridians get back on their feet.”

— Florida’s chief financial officer, Jimmy Patronis, said on Oct. 19, three weeks after Hurricane Ian made landfall and damaged thousands of properties in southwest Florida. The area has seen a large increase in adjusters, plaintiffs’ attorney adver tisements, and contractors hoping to benefit from insurance claims, according to various reports.

Fossil Fuels and Insurance

“Insurance is the Achilles heel of the fossil fuel industry and has the power to accelerate the transition to clean energy.”

— Peter Bosshard, author of a recent report by Insure Our Future, an alliance of groups that track insurers’ policies on fossil fuel industries, said regarding the report’s finding that 62% of reinsurance companies — which help other insurers spread their risks — have plans to stop covering coal projects, while 38% are now excluding some oil and natural gas projects. Insure Our Future said its annual scorecard of 30 companies ranked Allianz, AXA and Axis Capital best for their coal exit policies, while Aviva, Hannover Re and Munich Re came out on top for oil and natural gas.

— Drew Michanowicz, co-author of a new study that shows gas stoves in California homes are leaking cancer-causing benzene.

Connecticut Workers’ Comp

— Connecticut Gov. Ned Lamont said after the state’s insurance department approved an average decrease of 3% to workers’ compensation pure premium loss costs in the voluntary market. This marks the ninth consecutive year rate have declined, with premiums cut by $300 million over this span, reflecting decreases in the number of workplace injuries and claims filed, according to the state. The rate decrease is effective Jan. 1, 2023.

“This decline in workers’ compensation insurance premiums is good news for Connecticut businesses. … Additionally, it is good news for workers as it signifies the fact that workplaces are getting safer and safer.”

“It sounds so cliche, but it takes your breath from you.”

“What our science shows is that people in California are exposed to potentially hazardous levels of benzene from the gas that is piped into their homes.”

Moves

quartered in Iselin, New Jersey. Since its founding in 2011, World Insurance has completed 160 acquisitions and serves its customers from more than 250 offices across the country.

Midwest

Arthur J. Gallagher & Co., Cason, Huff & Schlueter Insurance

Arthur J. Gallagher & Co. acquired Quincy, Illinois-based Cason, Huff & Schlueter Insurance.

National Oliver Wyman, Avascent

Oliver Wyman has entered into an agree ment to acquire Avascent, an aerospace and defense management consulting firm focused on the corporate and private equity sectors.

The deal is expected to close before the end of the year.

The global management consulting firm and subsidiary of Marsh McLennan said Avascent complements Oliver Wyman’s strong position and reputation across the aviation, aerospace and defense industry globally.

For more than 15 years, Avascent has been a specialist management consulting firm serving clients across aerospace, defense and government sectors. Avascent is also a boutique private equity and M&A advisor in the A&D space and the combi nation of Avascent and Oliver Wyman will create a team with experience in deal and post-transaction work.

Avascent is based in the U.S., Canada, UK and France, with an extended network of clients and senior advisors around the world.

A team of approximately 130 profession als, including 10 partners, will join Oliver Wyman and will be integrated into Oliver Wyman’s Transportation & Services and Private Capital practices.

Berkshire Hathaway, Alleghany Corp.

Warren Buffett’s Berkshire Hathaway Inc. and Alleghany Corp. announced

that all regulatory approvals relating to the proposed $11.6 billion acquisition of Alleghany by Berkshire Hathaway have been received.

The deal was first announced in March 2022.

At a special meeting held on June 9, 2022, the stockholders of Alleghany voted to approve and adopt the agreement and plan of merger.

East

World Insurance

Insurance brokerage World Insurance Associates reported that it recently closed on purchasing three insurance agencies in the Northeast.

World Insurance acquired Michael F. Iacangelo & Co. of Belleville, New Jersey, on Sept. 1, 2022.

Iacangelo, founded in 1957, sells person al lines coverages.

Also on Sept. 1, World Insurance acquired Cotten Coverage Insurance Agency of Farmingville, New York.

The Cotten Coverage agency provides property/casualty personal lines and com mercial lines on Long Island. The agency was founded in 1991 by Bob Cotten and his wife, Karen.

On Aug. 1, World Insurance Associates acquired O’Brien and Gibbons Insurance Agency of Worcester, Massachusetts.

Founded in 1961, O’Brien and Gibbons is retail personal and commercial lines agency.

World Insurance Associates is head

Terms of the transaction were not disclosed.

Founded in 1923, Cason, Huff & Schlueter is a retail insurance agency specializing in personal and commercial insurance as well as life, health and disability insurance to clients in Illinois and Missouri.

Mike McCaughey, Patty McCaughey, Bryan Feldner, Eric Frese, Mary Kinscherf and their associates will remain in their current location under the direction of Ryan Isaacs, head of Gallagher’s Midwest region retail property/casualty brokerage operations.

South Central

Inszone Insurance Services, Proctor Insurance

Inszone Insurance Services acquired Proctor Insurance, its fifth acquisition in the state of Texas.

Based in Houston, Proctor offers busi ness and personal lines, and specializes in hotels and motels. The agency was founded by Jeff Proctor in 1988.

Southeast

Arthur J. Gallagher, SeaCoast Underwriters

Arthur J. Gallagher & Co.’s wholesale brokerage, binding authority and programs division known as Risk Placement Services acquired Florida-based SeaCoast Underwriters.

The terms were not disclosed.

Founded in 1996, SeaCoast is a whole sale specialist, a managing general agency with binding authority, and a surplus lines broker for admitted and non-admitted insurers. Headquartered in Lake Mary, Florida, SeaCoast specializes in commer cial property/casualty, flood and excess flood, personal lines, and transportation and garage risks in Florida and 13 other states.

Davies, Insurance Risk Services

Davies, a professional services and technology company serving the insurance market, has agreed to purchase Insurance Risk Services, a Florida-based firm that provides inspections for underwriting.

Insurance Risk Services, or IRS, is based in Lake Mary, Florida. It specializes in residential and some commercial inspec tions, telephone audits and drone roof inspections.

Choice Financial, Georgia Pines

Choice Financial Group, a regional insur ance agency based in Virginia Beach, has acquired Georgia Pines Agency, expanding its footprint into Georgia, Florida and California.

GPA, headquartered in Kennesaw, Georgia, is a full-service agency with 12 offices and 65 employees. Co-founders Michael Heidelberger and Steven Roy will continue to oversee operations.

Bob Hilb, founder and former CEO of the Hilb Group, a major insurance broker, is CEO of Choice Financial.

The acquisition is the 10th for Choice since it obtained capital support from Northlane Capital Partners, the company said. Choice now has offices in 11 states.

Hilb, Allegacy Benefits

Hilb Group acquired Allegacy Benefit Solutions, a credit union service organization based in Winston-Salem, North Carolina. The move means that Allegacy Federal Credit Union is getting out of the employee benefits business, according to news reports. The unit has about 20 employees and most of those will transition to Hilb.

Hilb Group is a national property/casu alty and benefits brokerage that has grown

nationwide through multiple acquisitions in recent years.

Hotaling, Akumen Insurance

Hotaling Insurance Services, a brokerage and risk management team, has merged with Akumen Insurance Advisors of South Florida.

The deal becomes effective Jan. 1. Terms were not disclosed.

Akumen CEO Vince Castro will become regional president of Hotaling Insurance, and the Akumen brand will be known as Hotaling Insurance Services Doral.

Hotaling opened a Miami office in 2018.

Both firms have offered commercial and personal lines of insurance.

West

Risk Strategies, Relation Education Solutions

Risk Strategies has acquired Relation

Education Solutions from Relation Insurance Services.

The deal adds key capabilities to Risk Strategies’ national education practice.

A division of California-based Relation Insurance Services, Relation Education Solutions' offerings complement existing Risk Strategies' education practice capa bilities, including student health plans, international benefits, faculty and staff benefits, and cultural exchange health plans, while expanding the existing portfolio in areas such as student athletics, amateur sports, and recreational programs.

Relation Education Solutions provides insurance brokerage and program adminis tration services for more than 950 colleges and universities across the country.

Risk Strategies is a specialty national insurance brokerage and risk management firm offering risk management advice and insurance and reinsurance placement for property/casualty, employee benefits and private client services risks.

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National

QBE International Markets appointed Sean Dollahon, vice president, U.S. marine manager, and Katie McCord, vice president, senior marine underwriter.

With nearly 20 years of industry experience, most recently as Inland Marine Manager at AIG and prior to that as vice president, South Region Ocean Marine at Liberty Mutual Insurance, Dollahon brings a wealth of expertise on the intricacies and challenges of the market.

McCord brings more than 15 years of industry experience in both the U.S. and London marine markets to her new role at QBE. Prior to joining, she served as national marine prac tice leader, at IMA Financial, and underwriting officer, marine, at Liberty Mutual Insurance.

Insurance broker Lockton added Deborah Hirschorn as managing director, U.S. cyber and technol ogy claims leader.

Hirschorn is based in New York, New York, and joins Lockton from Berkshire Hathaway Specialty Insurance.

AXA XL Insurance promoted Michael McKinley to lead its Construction Primary Casualty Insurance business in North

America.

Based in Atlanta, McKinley has more than 25 years of insur ance industry experience, including six years spent on Zurich Insurance’s Construction team.

Embroker named David Derigiotis as chief insurance officer.

Derigiotis previously served as cor porate senior vice president and national professional liability practice group leader for Burns & Wilcox, an international wholesale broker and MGA. He has 20 years of experience in the insurance industry.

East

Plymouth Rock Assurance Corp. appointed Paul Measley as chief claims officer.

Measley joins Boston, Massachusetts-based Plymouth Rock from GEICO. He spent nearly 30 years at GEICO in various roles, most recently developing aspects of GEICO’s corporate claims strategy, including digital claims, systems, first notice of loss, personal injury protection, subrogation, training and auditing.

Burns & Wilcox, a global wholesale insurance brokerage headquar tered in Farmington Hills, Michigan, added Carrie Chappie to its

Pittsburgh management team as associate managing director.

Chappie will oversee the Pittsburgh office’s day-to-day operations and growth strategy. With over 30 years in the industry, she most recently worked at Conway E&S, where she served as president of wholesale.

Midwest

Ryan Specialty, headquar tered in Chicago, Illinois, announced promotions to key new roles within the under writing managers specialty.

Tom Curran has been appointed chief wholesale distribution officer.

Curran has over 25 years’ experience in the industry and most recently served as chief marketing officer for WKFC Underwriting Managers and its subsidiaries, CorRisk Solutions and AgRisk Underwriters, all Ryan Specialty managing general underwriters.

James Shaffer has been appointed chief retail distribu tion.

Shaffer has served as executive vice president, sales and marketing for SUITELIFE Underwriting Managers for the past three years. Prior to Ryan Specialty’s acquisition of the SUITELIFE business from Venture Programs Inc. in 2019, Shaffer served as executive vice president of that organization.

Valley Insurance Agency Alliance (VIAA), a network of nearly 150 independent insurance agencies in Missouri and Illinois, promoted Linsey Morris to commercial lines coach.

Her responsi

bilities include working with the company’s development team to assist its Independent Strategic Member (ISM) alliance with attaining technology and revenue goals. Morris will pro vide commercial technology assistance that specifically focuses on risk management, marketing, and prospecting.

Prior to joining VIAA, Morris worked for sister company Powers Insurance & Risk Management as a commercial account manager. She has more than 15 years of personal lines insurance industry experience.

South Central

Iroquois named Jo Gonzalez as a regional manager for Texas, where she will fur ther expand Iroquois’ presence by partnering with independent insurance agencies and select carriers.

Gonzalez most recently served as a director of sales for an independent adjusting firm building relationships with commercial carriers across the south central U.S. She has also held sales leadership roles at Encompass and Kemper where she established a virtual sales team and partnered with agents across Texas and the United States.

Iroquois Texas is part of Allegany, New York-based Iroquois Group.

Platinum Specialty Underwriters, based in Connecticut, promoted Jeri Lucas to managing director for Platinum Construction, a program Lucas created. This exclusive program focuses on

Sean Dollahon

Katie McCord

Deborah Hirschorn

David Derigiotis

Carrie Chappie

Michael McKinley

Linsey Morris

Jo Gonzalez

small to mid-size artisan con tractors and local contractors working with select individual wholesale producers.

Lucas, based in Texas, has led multiple MGAs, managing profitable books of business for construction and general P/C. She and her team have extensive knowledge of writing difficult classes.

Distinguished Programs, a national insurance program manager, named Beth Fulton as regional sales executive covering South Central states, including Arkansas, Louisiana, Oklahoma and Texas.

Joining Distinguished Programs from her recent position as the director of marketing for Zenith Insurance Company’s central region, Fulton brings over 18 years of insurance experience.

She is based in Austin, Texas.

Southeast

Wholesale insurance brokerage firm Brown & Riding named Justin Peterson and Brenda Roberson to its national casualty practice, focusing on Florida.

As casualty brokers, Peterson and Roberson will specialize in complex casualty risks and new residential construction in Florida.

Brown & Riding, headquar tered in California, has 18 offices across the country.

Columbia Insurance Group made Michael Portanka regional vice president for the Southeast United States. Based in Atlanta, he will have responsibility for success fully growing the commercial lines business in the five-state region.

Headquartered in Columbia,

Missouri, Columbia Insurance Group provides comprehensive property/casualty insurance to policyholders in 14 states.

McGriff, a commercial insur ance broker and subsidiary of Truist Insurance Holdings, named Lanette Norgan vice president of its energy practice, based in Birmingham, Alabama.

Norgan, who has experience in employee benefits and property/ casualty insurance in the energy sector, will also serve as account executive.

Willis Towers Watson, a global advisory and broking company, named Samuel Stern director of financial, executive and professional risks (FINEX) for the Southeast.

He will be responsible for client retention and building the FINEX market in the South.

Shonda Manigault has been promoted to associate director for the Southeast FINEX commercial team to work with Stern in developing strategy.

Manigault has been the lead broker on some of the largest accounts within the region.

Georgia-based Southern Insurance Underwriters named David Green practice leader for professional lines.

Green, who previously was the new business manager for real estate errors and omissions at NormanSpencer Agency, will focus on

E&O, directors and officers and miscellaneous professional coverages.

Jacksonville-based One Call, a care management firm for the workers’ compensation industry, named Juan Perez chief financial officer.

Perez was previously CFO at WellPath, a health care company based in Tennessee. Perez is a certified public accountant who has led accounting and finance departments for other compa nies before joining WellPath.

West

California Insurance Commissioner Ricardo Lara made appointments to the California Automobile Assigned Risk Plan Advisory Committee, the Curriculum Board, and the Workers’ Compensation Insurance Rating Bureau Governing Committee.

These statewide programs are based in Sacramento.

The terms for the new CAARP Advisory Committee appointments end on Nov. 10, 2023.

Doug Heller has been reappointed to public member representative seat. He is the director of insurance for the Consumer Federation of America. Previously, he served as the executive director of Consumer Watchdog. He is also an appointee to the Federal Advisory Committee on Insurance.

Cynthia Strathmann has been reappointed to public member representative seat.

Strathmann is executive director for Strategic Actions

for a Just Economy, a non-profit economic justice organization that advocates for tenant rights, healthy housing, and equitable development in Los Angeles. Formerly, Strathmann was a research and policy analyst for the Los Angeles Alliance for a New Economy and a research assis tant professor at the University of Southern California.

Bernardo de la Torre joins the committee as a public member representative.

He is the owner of Law Offices of Bernardo de la Torre in La Mirada, a law firm spe cializing in the representation of injured workers founded in 1985.

Curriculum Board appointee Michael Lujan is the principal consultant of Michael Lujan Consulting Group LLC.

Previously, Lujan was the inaugural director of sales for Covered California. He created the curriculum required to cer tify licensed agents to enroll in the program and successfully trained, certified and appointed more than 14,000 agents in the first year.

Lujan joins the life agent trade association representa tive seat with a term ending on Oct. 14, 2025.

WCIRB Governing Committee appointee Lynne Davidson is president of Tito’s Tacos Mexican Restaurant.

Davidson has been a board member of the California Restaurant Association for the past 28 years and is a past board chair of the Los Angeles chapter of the California Restaurant Association.

Davidson has been reappointed to the insured employer representative seat, with a term ending on Oct. 14, 2024.

Lanette Norgan

David Green

Juan Perez

Closer Look: Commerical Lines Leaders

Commercial Lines Leaders

Top 50 Commercial Lines Agencies

About the Commercial Lines Leaders: The 2022 Commercial Lines Leaders in this special feature are taken from Insurance Journal’s Top 100 Property/Casualty Independent Agencies as reported in August. This list utilizes only the 2021 commercial lines property/casualty revenue numbers of the independent agencies and brokerages that submitted data to the Top 100 agencies report. For more information on Insurance Journal’s Top 100 Property/Casualty Independent Agencies list, contact awells@insurancejournal.com.

1 Acrisure $1,756,372,897 $16,221,866,751 $2,347,119,636 12,793 Grand Rapids, Michigan

2 Lockton $1,629,139,000 $20,521,888,069 $1,755,563,000 9,328 Kansas City, Missouri

3 Alliant Insurance Services Inc. $1,585,547,796 $10,065,628,814 $1,943,452,876 9,529 Irvine, California

4 HUB International Ltd. $1,522,975,317 $12,000,000,000 $2,017,825,215 15,081 Chicago, Illinois

5 AssuredPartners Inc. $1,303,699,241 $8,000,000,000 $1,507,408,268 8,279 Lake Mary, Florida

6 USI Insurance Services $1,192,945,494 $9,260,000,000 $1,304,201,153 8,661 Valhalla, New York

7 BroadStreet Partners Inc. $712,880,000 $5,629,000,000 $921,760,000 5,360 Columbus, Ohio

8 EPIC Insurance Brokers & Consultant $603,450,800 $4,220,000,000 $678,511,800 2,830 San Francisco, California

9 NFP $559,385,531 $4,080,390,000 $632,589,166 6,849 New York, New York

10 Alera Group $435,000,000 $480,000,000 3,500 Deerfield, Illinois

11 RSC Insurance Brokerage Inc. (DBA Risk Strategies Co.) $380,173,642 $2,933,561,615 $442,820,067 3,271 Boston, Massachusetts

12 IMA Financial Group $342,992,241 $6,122,497,000 $450,130,337 1,707 Denver, Colorado

13 PCF Insurance Services $340,000,000 $2,600,000,000 $470,000,000 2,492 Lehi, Utah

14 Baldwin Risk Partners $265,514,985 $2,900,000,000 $487,768,057 3,300 Tampa, Florida

15 Woodruff Sawyer $233,000,000 $2,694,300,000 $235,600,000 566 San Francisco, California

16 Higginbotham $212,684,000 $1,900,000,000 $239,303,000 2,000 Fort Worth, Texas

17 Insurance Office of America Inc. $208,078,674 $2,067,052,014 $223,186,545 1,364 Longwood, Florida

18 Hilb Group $208,043,498 $284,433,293 1,958 Richmond, Virginia

19 Leavitt Group $197,974,548 $1,315,969,278 $261,716,764 2,224 Cedar City, Utah

20 Cross Insurance $131,166,000 $1,958,923,400 $207,942,000 1,093 Bangor, Maine

21 Cobbs Allen/CAC Specialty $129,161,761 $1,186,250,000 $145,021,560 326 Denver, Colorado

22 High Street Insurance Partners $119,000,000 $224,000,000 1,800 Traverse City, Michigan

23 Heffernan Insurance Brokers $109,043,216 $735,261,295 $150,716,937 581 Walnut Creek, California

24 Hylant $102,865,658 $877,603,303 $111,703,038 851 Toledo, Ohio

25 INSURICA Inc. $100,062,144 $784,901,467 $120,574,551 663 Oklahoma City, Oklahoma

26 BXS Insurance** $100,000,000 $828,000,000 $110,000,000 782 Gulfport, Mississippi

27 World Insurance Associates LLC $98,673,447 $1,114,288,512 $154,346,670 1,479 Iselin, New Jersey

28 TrueNorth $73,078,370 $570,000,000 $108,200,000 488 Cedar Rapids, Iowa

29 The Liberty Company Insurance Brokers $71,400,000 $571,200,000 $92,400,000 647 Gainesville, Florida

30 Sunstar Insurance Group $58,500,000 $585,000,000 $90,000,000 550 Memphis, Tennessee

31 Graham Company $56,506,382 $413,701,571 $68,258,577 210 Philadelphia, Pennsylvania

32 Houchens Insurance Group Inc. $54,349,853 $394,360,608 $58,723,870 345 Bowling Green, Kentucky

33 Patriot Growth Insurance Services LLC $53,350,000 $372,800,000 $104,450,000 1,175 Fort Washington, Pennsylvania

34 Marshall & Sterling Enterprises Inc. $52,710,603 $390,797,463 $77,110,179 531 Poughkeepsie, New York

35 Sterling Seacrest Pritchard $47,987,427 $421,391,467 $53,822,577 299 Atlanta, Georgia

36 Towne Insurance** $47,930,124 $325,048,695 $65,832,414 422 Norfolk, Virginia

37 Horton Group $46,130,000 $356,935,000 $53,318,000 400 Orland Park, Illinois

38 Starkweather & Shepley Insurance Brokerage Inc. $44,851,384 $326,135,435 $67,640,828 266 East Providence, Rhode Island

39 Lawley LLC $43,532,579 $357,630,835 $57,230,801 424 Buffalo, New York

40 Eastern Insurance Group LLC** $43,526,136 $320,524,689 $76,071,244 404 Natick, Massachusetts

41 Shepherd Insurance $43,270,860 $332,015,517 $58,008,213 431 Carmel, Indiana

42 ALKEME $42,766,000 $285,000,000 $61,034,000 300 Ladera Ranch, California

43 Bowen, Miclette & Britt Insurance Agency LLC $41,168,190 $288,485,652 $46,224,997 210 Houston, Texas

44 Robertson Ryan & Associates $38,261,373 $307,000,000 $57,931,594 419 Milwaukee, Wisconsin

45 Professional Insurance Associates $35,000,000 $275,000,000 $60,000,000 75 San Carlos, California

46 Moreton & Company $34,999,520 $230,000,000 $39,523,484 240 Salt Lake City, Utah

47 Huntington Insurance** $34,563,000 $165,000,000 $40,563,000 353 Columbus, Ohio

48 The Mahoney Group $33,442,342 $271,578,655 $49,130,885 190 Mesa, Arizona

49 The Buckner Company Inc. $33,026,066 $234,273,777 $34,427,893 202 Salt Lake City, Utah

50 Inszone Insurance Services LLC $32,001,854 $213,345,694 $45,787,268 218 Rancho Cordova, California

2021 2021 2021 2022 Commerical Total Commercial Total P/C Total Main Rank Company Name Lines Revenue Lines Premium Revenue Employees Office

& Markets

As Homeowners Rebuild After Ian, a Cooling New Housing Market Drops Material Costs

By Allen Laman

IfHurricane Ian would have made landfall in Florida, say, six months ago, the costs of reconstruction could have been even higher than the already staggering estimates now coming from the Sunshine State.

Inflation is indeed set to bump up rebuilding price tags. But one insurance expert told Insurance Journal how a softening in the new home construction market has contributed to the unkinking of supply chains and reductions in the prices of many types of building materials.

“Inflation will exacerbate repair and rebuilding costs from Ian above and beyond the effect we would ordinarily see from demand surge,” said Bob Hartwig, an industry veteran who currently works as a professor of finance at the University of South Carolina’s Darla Moore School of Business and serves as director of the school’s Center for Risk and Uncertainty Management.

“There is a small silver lining in this, in that as it turns out, because the Federal Reserve has been raising interest rates for the past several months, this has cooled the housing market, and it’s been cooling the new home market,” Hartwig added. “The headline rate of inflation, which is about 8.5% today, is somewhat lower for

building materials.”

An Oct. 14 blog post from the National Association of Home Builders (NAHB) shared that the prices of building materials decreased 0.3% in September (not sea sonally adjusted) according to the latest Producer Price Index report. The post also shared that PPI for goods inputs to residential construction, including energy, declined for the third consecutive month in September (-0.1%).

“Prices have fallen 2.3% since June, the largest three-month drop since April 2020,” reported NAHB. “However, these modest price declines have occurred when material prices were already at extremely elevated rates.”

Stonybrook Capital, a strategic advisory and investment banking firm, reported that Hurricane Ian will result in the largest ever insured loss event in nominal dollars at an estimated price tag of more than $75 billion. Catastrophe modeler RMS said a “sizable portion” of losses from the hurricane will be from “post-event loss amplification and inflationary trends,” when it released an initial best estimate of $67 billion in insured losses from Ian. Modeler Karen Clark & Co. similarly worked in these factors when coming up with an insured loss estimate for Ian of $63 billion. [Updated estimated loss predic tions have declined from initial figures.]

Temporary surges in inflation aren’t unusual following natural disasters that leave a large footprint of destruction. Demand surges commonly follow catastro phes like Ian, driving up the prices of basic commodities related to homebuilding and construction — such as plywood, lumber, concrete and other materials.

Those costs are built into insurance policy rates. What isn’t factored in, however, is the country’s accelerated national underlying annual inflationary trend, which was reported as being north of 8% in September. This underlying inflation is “definitely a problem,” Hartwig said, “but less of a problem than it would have been six months or a year ago, and that’s because of the cooling of new home construction, which is leading to greater availability for building materials and even labor.”

On the provider end, he explained that insurers will look to build that inflationary trend into 2023 rates and beyond. When this happens, Hartwig estimated hundreds of thousands of Floridians will experience dramatic increases in premiums. Others may be dropped from their providers entirely.

“Double-digit percent increases in virtually every case,” he said. “And many others are going to find that their insurer is potentially going to non-renew them. Others are going to be in a situation where their insurer went under, and so they will be seeking coverage elsewhere.”

The road to rebuilding could be a long one. With inflation at a four-decade high and labor and materials still high in demand, CoreLogic, a data and analytics services provider, anticipates recovery will be slow and difficult.

Still, while labor markets — including construction — are tight, they aren’t quite as tight as they would have been back in April or last fall. Typically, following an event like Ian, many contractors will descend on the impacted area simply because much work is needed, Hartwig said.

Court Dismisses 32 COVID-19 Business Insurance Cases Against Erie Insurance

By Andrew G. Simpson

that was either the Ultrapack Plus Policy or the UltraFlex Policy.

Afederal

judge has dismissed 32 lawsuits over COVID-19 business interruption insurance claims against Erie Insurance, concluding the claimants failed to “plausibly plead” that they are entitled to coverage under their Erie policies.

The ruling by U.S. District Judge Mark R. Hornak in Western Pennsylvania reflects the opinions of other courts that have rejected allegations that COVID-19 viruses and government shutdowns cause direct physical damage and loss that triggers business interruption coverage. The opinion also reflects the analysis the same judge gave in dismissing similar claims against Cincinnati Insurance, Travelers Insurance and Hartford Financial Services.

Plaintiffs in this multidistrict litigation included retail stores, restaurants, car deal erships, hair salons, and dental practices located in the District of Columbia, Illinois, Maryland, New York, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.

Each plaintiff had an “all risk” commer cial property insurance policy with Erie

While their businesses may be different, their legal claims were similar to those asserted by business owners in a multitude of similar cases nationwide. The Erie cases were consolidated under Judge Hornak in January 2021.

Plaintiffs in this multidistrict litigation included retail stores, restaurants, car dealerships, hair salons, and dental practices located in the District of Columbia, Illinois, Maryland, New York, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.

Both Erie policies cover direct physical loss or damage to covered property resulting from an insured peril. Both policies contain a “law or ordinance” exclusion. The UltraFlex also contains a virus exclusion.

After Erie denied their claims, the plain tiffs filed suits alleging that Erie wrongfully denied them coverage under the income protection, extra expense, civil authority, dependent property, and/or sue and labor coverage provisions. They asserted two covered causes of direct physical loss or damage: the COVID-19 virus itself and the mandated shutdown rules issued by gov ernments to mitigate the virus’s spread.

The parties’ primary dispute, as in many other cases, was whether those events caused “direct physical loss of or damage to” covered property.

Erie argued that “direct physical loss of or damage to” property unambiguously “requires a tangible, concrete physical harm” to the property, which “cannot be plausibly alleged” by the plaintiffs. The judge agreed.

The district court considered the laws and rulings from the various plaintiffs’ states where similar cases have been decided, noting that while no high court in those states has yet ruled, other courts have and the “near-uniform dismissal” of claims like plaintiffs’ applying the law of the jurisdictions involved in this MDL

presented an “uphill precedential path” for the claimants. Hornak said the central question was whether those decisions were “correct predictions of how the involved jurisdiction’s highest court would decide claims” that mirror those of plaintiffs.

The court said that there is “not a persua sive basis” to conclude that these cases were not soundly decided and are not reliable indicators of the path the federal court should follow.

The court rejected the claimants’ allega tions that the virus particles can become affixed to and remain stable on surfaces for hours or from one to 14 days, and in that way “change” the surfaces. “[T]he natural plausible inference from those allegations

is that the virus particles dissipate on their own, after those numbers of hours or days have passed, without any human intervention. Based on those allegations, the impact that COVID-19 virus particles have on property on which it is present is wholly unlike the impact that, say, a fire that burns all or part of a structure has on property where a fire has occurred,” the

opinion states. The court also rejected the argument that the absence of a virus exclusion in some policies means coverage should be provided under those policies.

The court additionally denied the plea that Pennsylvania’s reasonable expecta tions doctrine in insurance law entitles a policyholder to coverage based on the pol icyholder’s reasonable expectations even if the terms of the insurance contract clearly and unambiguously preclude coverage.

The court concluded: “[I]t is self-evident that the COVID-19 pandemic has had detrimental consequences to people all over the world that cannot be overstated.

However, it can also be accurate that the Erie Policies to which the Plaintiffs in this MDL were parties do not provide coverage for the additional consequences that Plaintiffs assert that they as property and business owners suffered as a result of the pandemic and the associated government orders limiting how the properties could be used.”

Special Report: Best Agency to Work For

East

At USI, Engaged Employees Feel Seen, Heard And Respected

By Jahna Jacobson

It takes a lot of skill, orga nization and compassion to make more than 9,000 people feel like a family. But the leadership and team at USI Insurance Services are up to the challenge.

Valhalla, New Yorkheadquartered USI has 9,379 employees and an annual revenue of over $2 billion. Its size and national presence could make employees feel lost in the crowd, but instead, USI team members feel seen and heard. The responses submitted by USI employees to Insurance Journal’s 2022 Best Agencies To Work For survey reflect the pride they have in their com pany, which has been selected as the Bronze award winner for IJ’s East region.

“USI is a progressive com pany and has a good balance of the national footprint with regional offices,” one nominating employee said. “I feel respected and that my contributions matter.”

“USI promotes leaders and

employees to take ownership in their individual and team performance,” an employee said. “The communication, systems and processes around performance are consistent and valuable to all employees at any level.”

Senior Vice President and Chief Human Resources Officer Kim Van Orman said it’s all about building a culture that goes above and beyond when it comes to employees, in and out of the workplace.

“It’s critical that employees feel a strong sense of support and belonging when they show up for work each day,” Van Orman said. “I am a firm believer that prioritizing ongo ing investments in DE&I, career development, and reward and recognition programs will continue to drive higher levels of employee engagement and workplace satisfaction among all organizations.”

The efforts help grow an even stronger team.

“USI strives to engage me as an employee,” one nominating employee said. “USI ensures its

performance engagement and salary are tops to attract and retain top talent. Also, USI’s dedication to career pathing to invest in the advancement of the employees is top in the industry.”

Another employee said, “USI does an incredible job providing clear, transparent, and obtainable career advancement opportunities. I started 3+ years ago at USI and was promoted multiple times because I was able to hit the performance metrics that were clearly stated at the beginning of my career. USI leadership is very supportive and has an interest in seeing new employ ees succeed.”

Many employees mentioned the company’s amazing benefits, excellent salaries and performance-based bonuses.

“I have worked several places in my career, and USI, by far, is the most employ ee-driven company,” one nominator said. “From senior management down, everyone is approachable, takes the time to know you, and you feel that they want you to enjoy working there.”

USI recognizes and rewards employees for exceptional performance and dedi cation each year through its national

Summit Awards program. Summit honorees receive company-wide recognition, additional bonuses, and the opportunity to participate in a bucket list experience custom-tailored to them.

This year the company expanded the prize to make 200 employees USI shareholders in 2022. The move establishes a path for all employees to have an ownership opportunity in the company and build long-term wealth, Van Orman said.

And the care doesn’t stop when employees walk out the door. USI Cares helps associates and their families in times of need or crisis.

“Our employees have a vari ety of needs and face unique challenges in their personal and professional lives, which is why we help them access financial, medical, housing, social, and emotional support through our employee assistance program,” Van Orman said.

“We have an unmatched depth of leadership throughout the organization from the corporate level to the local office,” Van Orman said.

“USI has built a culture of respect, fairness, profession alism, cutting edge client solutions (and more), which is nothing short of remarkable,” he added.

USI Insurance Services Valhalla, New York

Special Report: Best Agency to Work For

Midwest

Ansay & Associates: Committed to Clients, Employees, Community

By Allen Laman

Take five-star customer service, add in a fourstep strategic process — and what do you get? An award-winning organization. That organization, Ansay & Associates, an independent insurance agency based in Port Washington, Wisconsin, has built success by identifying needs and exposures, develop ing strategies, and implement ing and monitoring programs. Creating value for customers is key. Treating employees right is part of the winning equation, too.

A&A has received Insurance Journal’s 2022 Best Agencies To Work For Bronze award for the Midwest region based on employee responses to IJ's annual “Best Agencies” survey.

A&A is family owned and was founded in 1946. Today, the organization has locations scattered throughout the Badger State.

Per the Ansay website, the company’s plan for the future remains the same as it was in the beginning: Utilize relation ships and a solutions-based approach to help people and businesses reach their goals.

“I feel honored and proud of the culture that my father helped build,” Mike Ansay, chairman and CEO of Ansay & Associates, wrote in an email. “His legacy was built around the phrase: ‘You have to give to get.’ It’s a motto I fully embrace and fulfill daily.”

The IJ survey respondents clearly appreciate that legacy. They praised the company’s positive culture, strong empha sis on community involvement and effective leaders. Many responses pointed to the importance placed on employ ee care.

“We are a communi ty-focused organization, offering many opportunities for employees to get involved with local organizations and individuals in need of support,”

wrote one employee. “Our benefits package and employer contribution is above average in the market, we offer flexibil ity in working environments, and there is plenty of room for advancement. Continued education goals are strongly supported as is the advance ment of technology resources and tools we use to increase efficiencies.”

They added: “I cannot imagine working anywhere else!”

One respondent commended A&A for not only caring about the wellness of employees, “but also the needs for individ uals and businesses.” Another response noted how leadership “is open and transparent and listens to individuals, and makes them feel valued.”

“Ansay is a family-owned business that brings all of its associates together and works well as a team,” another survey respondent noted.

Still another said: “The leaders of the agency see me

as a person, not a number. My efforts are seen and appreciat ed.”

One employee praised the work of the agency’s leadership, stating: “The owner truly cares about his employees from a personal standpoint and a business standpoint. He understands how important his producers are. He keeps all of us informed on company and industry changes and is on the forefront of the industry. He is seen every day and leads the business by example.”

Another said: “Ansay & Associates is a great company to work for. Ansay prides them selves on their commitment to clients and employees as well as community involvement. We have a great group of employees including manage ment who are always looking towards the future.”

For his part, Mike Ansay praised the positive contribu tions to the agency brought by the people who work there.

“Our people make all the difference,” he wrote. “We are focused not only on growing our client base but also giving our current clients the best possible customer experience. Our agency continues to evolve and improve, finding ways to innovate and be leaders within the industry.”

Ansay & Associates Port Washington, Wisconsin

A working team at Ansay & Associates

Special Report: Best Agency to Work For

South Central

GHA — A Fun, Professional Workplace With Purpose

By Jahna Jacobson

AtGlenn Harris and Associates, the whole company is a team, and the team is family. That includes three tail-wagging “Directors of Morale” — com pany dogs Smoky, Mocha and Chief.

The overwhelming sense of camaraderie is just one of the reasons Glenn Harris employ ees responded en masse to Insurance Journal’s 2022 Best Agencies to Work For survey, making the agency IJ’s Bronze winner for the South Central region.

Of course, accolades are nothing new to Glenn Harris, which has also been voted Best Local Insurance Agent by The Oklahoman’s Reader’s Choice Awards five years in a row, including in 2022.

“Insurance market condi tions change regularly, and, as an independent agent, we can select from a variety of carriers and programs,” a nominating employee said. “This makes me very proud to represent an agency so strong in Oklahoma City.”

Founded in 1987, the firm currently has 34 employees and 10 producers, with annual revenue between $11 million and $25 million. The team serves the Oklahoma City area and clients through out Oklahoma.

“I’ve worked at three insurance agencies in my career and have never found a more welcoming, growing,

and full of opportunities than Glenn Harris & Associates,” said one nominating employee. “We have a great team with a purpose!”

“We are a family,” said another nominating employee. “We have a great team and really back each other up for work and personal stuff.”

The teamwork extends across departments and throughout the agency, employees said.

“I’m in the commercial department, and should one of the account managers be out for any length of time, we work together to assist with work flow so the work is not doubled up on one person,” said one employee. “We have meetings to check up on how everyone is doing and if one of the account managers needs extra help.”

“GHA is a fun but profes sional place to work,” said an employee. “Mr. Harris treats his employees well, from celebrating birthdays to being

understanding. The office is … comfortable to be in but also half the team gets to work from home.”

Offering remote work options has helped the compa ny retain staff and secure top talent from other locations.

“Since Covid, several employees are able to work from home 100 percent of the time, which has increased pro ductivity, saving on expense commuting to and from work,” a nominating employee said.

On top of their competitive salaries and remote work options, Glenn Harris offers employees health, dental, vision, 401(k), pension, monthly luncheons, birthday recognitions, an annual bonus, holiday pay and a legendary holiday party.

“Knowing that our employees are happy and feel appreciated are the most important factors in a continued, successful, and growing agency,” a nominating employee said.

The family atmo sphere and confidence in the team frees the employees to work toward their common and ultimate goal.

“We make a day go by fast with a smile, a laugh and hard work,” said Tonda Walters, personal lines team lead. “We diligently provide our clients with the best coverage and rates available from one of our many preferred carriers.”

So how does Glenn Harris make it work across depart ments and remote employees?

“Create an exciting, energetic and enjoyable place to work! Ensure you acknowledge, promote, and supply your staff with the needed avenues to advance themselves in their career,” said Chloey Benson, who works in accounting.

The learning and growing begin the day you walk in the door and never stop, said another nominating employee.

“I am proud to be a part of the GHA family because that is what this agency is,” the employee said. “We have team leads who welcome and train newcomers; we have an accounting team who does any and everything for the office and its needs.”

“We have an absolutely amazing office manager/HR who keeps the office aligned as well as alive, and account managers continuously make the world go round while smiling,” they added. “And to put a cherry on top, we have three extraordinary morale-supporting pups.”

‘We make a day go by fast with a smile, a laugh and hard work.’

Glenn Harris and Associates Oklahoma City, Oklahoma

Glenn Harris and Family

Special Report: Best Agency to Work For

Southeast

At Robins, Positive Leadership and a Talented Team Drive Success

By Jahna Jacobson

Theteam credits amazing leadership. Leadership gives all the kudos to an incomparable team.

That mutual admiration, trust and respect has led Robins Insurance in Nashville, Tennessee, to be selected as Insurance Journal’s 2022 Best Agencies to Work For Bronze award winner for the Southeast region.

“They are respectful, have a good, laid back and non-micro management style that trusts their employees and provides much respect and flexibility,” one nominating employee said.

“The core values of the agency are at the center for what they do and how they treat their clients,” said another nominating employee. “While growth is the goal, the top of management truly cares about his employees and wants the best for them always.”

CEO Van Robins says that while any agency can invest in a management system or office space, or develop great processes, it’s the talent that makes it work.

“Top-level talent is hard to come by,” he said. “I believe it’s the only durable differentiator for independent insurance agencies. … Top talent — the best subject matter experts available, delivering custom ized insurance solutions and excellent client care — is not easy to replicate.”

Providing great service grows from the positive atmo

sphere, employees said. One cited benefits like flexible work schedules, new challenges and a fun workplace, and added, “I love the feeling of helping people feel comfortable and complete with their insurance needs.”

The employees are also engaged in how the agency is run day-to-day.

“Robins focuses on employ ee involvement and opinions to create policies and procedures,” an employee said. “It is a collaborative environment where employees’ opinions and knowledge are appreciated and acknowledged.”

One thing several employees said helps the agency shine is specializing in insuring niche risks, such as entertainment, hospitality, education, nonprof its, churches and real estate.

“(We have) specialized departments with their own specialties,” an employee said. “(We’re) focused on that specif ic risk. Very knowledgeable in each area.”

“The producers have the highest of standards and presentation I have ever seen; this is why the commercial department is such a success,” said another survey respon dent. “The positive manner in which they interact with the account managers is refreshing and respectful.”

Employees have a custom ized talent development plan with training and educational opportunities focused on the agency’s niche clientele.

“We have a ‘work where you’re weak’ philosophy to training and development,” CEO Robins said. “The idea is

to create the strongest, most well-rounded team members possible. We try to recruit people who value that kind of talent development.”

If you want happy employ ees that create satisfied clients, you’ve got to start from within, he said.

“Be intentional about creating a corporate culture and identity — and be able to articulate it. Use that culture to recruit top talent,” he said. “The best account managers will attract the best producers and vice versa, which creates a virtuous cycle of growth and development.”

Robins Insurance Nashville, Tennessee

The joyful team at Robins Insurance.

Special Report: Best Agency to Work For

West

LP Insurance Services — Empowering Clients, Enabling Dreams

By Allen Laman

Ofcourse, LP Insurance Services protects and defends clients when things go wrong.

But those who work for the Reno, Nevada-headquartered company see themselves as more than guardians. They see how their work removes stress from business owners and empowers them to go beyond. They see themselves as enablers of dreams.

“By protecting, we also enable (them) to go deeper,” explained Brian Cushard, LP’s president, in a phone interview. “To stretch a little farther.”

LP Insurance this year has earned Insurance Journal’s 2022 Best Agencies To Work For Bronze award for the West region. The independent brokerage firm won the award based on employee responses

to IJ's annual “Best Agencies” survey.

“It’s a great feeling,” Cushard shared in an email. “I believe one of the highest compliments in any professional arena is when a team willingly praises their workplace. I certainly think LP is an amazing compa ny as well as being a genuine part of the communities we serve. It seems our team feels the same way.”

According to the company’s website, LP is an established yet growing commercial and personal insurance brokerage firm. The organization spe cializes in property, casualty, surety, workers’ compensation, employee benefits and personal insurance solutions — with an emphasis on risk management services.

LP’s roots can be traced back to Granata/Lucini Insurance, which launched in Reno in

1927. Ninety-five years later, LP has grown into a leading regional brokerage with 226 employees and offices in Nevada, Arizona, California and New Mexico.

“We are committed to the strong relationships we’ve built with our clients, employees, partners and communities,” reads an excerpt from the company’s website. “It’s the LP Difference, and it’s what makes us, us. From commercial and personal insurance to an established and growing risk management arm, we offer our support because we’re focused on doing what’s right.”

IJ survey respondents praised the company’s positive work environment, strong community involvement and respected reputation. Others pointed to attainable growth opportunities. Many employ ees compared the bonds they share with colleagues to a family.

“LP Insurance Services is a fast growing agency but have maintained a commu nity within the agency,” one employee wrote. “The COO, president (and) CFO all are very approachable and engag ing individuals. They always make you feel like you are important to the growth of the company. I enjoy working for a company that appreciates its employees and does random gestures of appreciation. When a person does not dread coming to work it is a great place to work.”

Added another: “My agency

is large but it feels like family. Individuals are valued. The investment in training is extensive and those responsible for training are hardworking and determined.”

Cushard explained in his email that LP leaders “consis tently reiterate to our team that if something is important to them, it is important to us. And then we act on it.”

In an industry built on rela tionships, LP leaders “show our team that they are important,” Cushard wrote.

“Listen to your team and do your best to be genuinely connected to one another,” Cushing responded when asked for advice to other agencies striving to become a Best Place to Work. “Like any great relationship, it boils down to trust and communications. If the team knows why we are doing (or not doing) something because leadership has been openly communicative, then there’s mutual trust and understanding.”

LP Insurance Services Reno, Nevada

LP’s team donates to the Nevada Humane Society in Reno.

Brian Cushard

Markets

Commissioner Says 2021 Colorado Wildfire Losses Surpass $2B

Awildfire

that destroyed nearly 1,100 homes and businesses in suburban Denver last winter caused more than $2 billion in losses, making it by far the costliest in Colorado history, the state insurance commissioner said.

Commissioner Michael Conway provid ed the updated estimate during a meeting with residents who lost homes to the so-called Marshall Fire in Boulder County and other Colorado wildfires in recent years, The Denver Post reported.

The Boulder County fire broke out unusually late in December following months of drought and is blamed for at least one death. Official estimates released days after the fire put the losses at more than $500 million.

Experts say the winter grassland fire that blew up along Colorado’s Front Range was rare but that similar events will be more common in the coming years as climate change warms the planet, sucking the moisture out of plants, and as suburbs grow in fire-prone areas.

Conway said additional insurance claims and assessments of the scope of rebuilding from the wildfire prompted the new esti

mate. “We’re estimating now it will be $2 billion in claims if not more,” he told residents.

Investigators have yet to determine what caused the Dec. 30 fire, which was fed by winds up to 100 mph and raced from the Rocky Mountain foothills eastward through unincorporated Boulder County and into the cities of Superior and Louisville. Another 149 homes and 30 businesses were damaged.

According to the Rocky Mountain Insurance Association, the state’s costliest wildfire had been the 2020 East Troublesome Fire in Grand County, which destroyed 366 homes and caused $543 mil lion in property damage. The association also says the Marshall Fire ranks 10th on a list of costliest wildfires in the nation. That list is led by the 2018 Camp Fire in Northern California, which it says caused $10 billion in property losses.

The Camp Fire killed 85 people,

California Judge Rules for Bakery Over Same-Sex Wedding Cake

destroyed nearly 19,000 homes, businesses and other buildings and virtually razed the town of Paradise.

A Colorado Division of Insurance anal ysis found that 67% of homeowners who lost their homes in Boulder County didn’t have enough insurance to replace them, the newspaper reported.

Following the wildfire, lawmakers passed several bills boosting firefighting resources and mitigation planning for fires that, owing to climate change and the West’s megadrought, have become a year-round threat in Colorado.

Copyright 2022 Associated Press. All rights reserved.

ACalifornia

judge has ruled in favor of a bakery owner who refused to make wedding cakes for a same-sex couple because it violated her Christian beliefs.

The state Department of Fair Housing and Employment had sued Tastries Bakery in Bakersfield, arguing owner Cathy Miller inten tionally discriminated against the couple in violation of California’s Unruh Civil Rights Act.

Miller’s attorneys argued her right to free speech and free expression of religion trumped the argument that she violated the anti-discrimination law. Kern County Superior Court Judge Eric Bradshaw ruled that Miller acted lawfully while upholding

her beliefs about what the Bible teaches regarding marriage.

The decision was welcomed as a First Amendment victory by Miller and her pro-bono attorneys with the conservative Thomas More Society.

“I’m hoping that in our com munity we can grow together,” Miller told the Bakersfield Californian after the ruling. “And we should understand that we shouldn’t push any agenda against anyone else.”

A spokesperson said the fair housing department was aware of the ruling but had not determined what to do next. The couple, Eileen and Mireya Rodriguez-Del

Rio, said they expect an appeal.

“Of course we’re disappointed, but not surprised,” Eileen told the newspaper. “We anticipate that our appeal will have a different result.”

An earlier decision in Kern County Superior Court also went Miller’s way, but it was later vacated by the 5th District Court of Appeal, which sent the lawsuit back to the county.

The decision comes as a Colorado baker is challenging a ruling he violated that state’s anti-discrimination law by refusing to make a cake celebrating a gender transition. That baker, Jack Phillips, separately won a partial U.S. Supreme Court victory after refusing on religious grounds to make a gay couple’s wedding cake a decade ago.

Copyright 2022 Associated Press. All rights reserved.

Markets

Pipeline Operator Agrees to $50M California Spill Settlement

Apipeline

operator has agreed to pay $50 million to thousands of Southern California fishermen, tourism companies and property owners who sued after an offshore oil spill last year near Huntington Beach.

A proposed settlement between Amplify Energy Corp., which owns the pipeline that ruptured in October 2021 and spilled 25,000 gallons of crude oil into the Pacific Ocean, and the businesses and residents was filed in late October in federal court in Santa Ana, court documents show.

Under the proposal, the Houston-based energy company would pay $34 million to commercial fishermen and $9 million to coastal property owners. It also would pay $7 million to waterfront tourism operators, including businesses that provide surf lessons and leisure cruises and shops that sell swimwear and fishing bait.

A federal judge still needs to sign off on the proposal for it to take effect. A hearing is scheduled for Nov. 16.

“This is a really dramatic first step and a dramatic compensation for these victims of this terrible tragedy,” said Wylie Aitken, co-lead counsel for the plaintiffs, whom he estimated number more than 10,000. The proposal requires Amplify to install a leak detection system and provide spill

training to employees, steps that the company also agreed to in a plea deal with federal authorities. It also would require Amplify to increase staffing on an off shore oil platform, court papers show.

The leak occurred about 4 miles offshore and sent blobs of crude washing ashore in surf-friendly Huntington Beach and other coastal communities. While less severe than initially feared, the spill shuttered the beaches in the area for a week, fisheries for more than a month, oiled birds and threatened area wetlands.

Amplify had no comment and referred to a statement issued when the agreement was reached in August calling it a “reason able and fair resolution.” The company said it would continue to seek damages from shipping vessels accused of dragging anchor and damaging the pipeline months before the leak.

Amplify has $200 million in liability insurance coverage for spill-related claims and as of March the company had incurred costs of about $111 million, according to the court papers filed by the plaintiffs.

Earlier this year, Amplify reached a plea deal with federal authorities for negligently discharging crude oil. The company, which authorities said failed to respond to leak detection system alarms that should have alerted workers to the spill, agreed to pay a combined $13 mil lion in fines and expenses incurred by government agencies.

Amplify contends that two commercial shipping vessels damaged its pipeline when they dragged their anchors across it during a January 2021 storm. The proposed settlement doesn’t apply to the operators of those ships or to an organization that helps oversee marine traffic, which has also been brought into the litigation.

Copyright 2022 Associated Press. All rights reserved.

Southern California School District Ordered to Pay $45M in Abuse Case

Ajury

ordered Southern California’s Santa Monica-Malibu Unified School District to pay $45 million to the family of autistic twins who were physically abused and restrained by an aide at their elementary school.

The lawsuit filed in 2019 alleged a district employee, Galit Gottlieb, used corporal punishment including physical restraint and battery against the two special-needs students when they were in second grade at Juan Cabrillo Elementary in Malibu.

A Los Angeles Superior Court jury found in favor of the plaintiffs . After the verdict, district Superintendent Ben Drati issued a statement to the newspaper calling the decision “not justified by the evidence

presented.”

“We are committed to and care about our students, especially those with disabilities. We respect the judicial process and recognize that the trial is only the first phase,” Drati’s statement said.

The lawsuit brought by Charles and Nadine Wong accused officials of failing to act after suspicions of abuse were raised in 2017 by district employees. A bus driver said she witnessed Gottlieb physically restrain the boys and punish them by putting hand sanitizer on their cuts, according to court documents. The twins, Christian and Christopher, are nonverbal and couldn’t express to their parents what was happening to them. But there were signs that something was wrong, including

unusually aggressive behavior by the boys.

“As a parent, you know something is wrong when your child is treating everyone different,” Nadine Wong told the news station. “You know yourself and you look at your child and you say, `What has happened to you?’ But they can’t tell us.”

The district and Gottlieb were named as defendants along with with several other school administrators. District officials have called for an independent review of the case and the jury’s verdict.

A spokesperson for the told the Daily Press that “any settlement in this case will be covered by insurance and not from the district’s general fund.”

Copyright 2022 Associated Press. All rights reserved.

Rural New Mexico Eyes Insurance Fight Amid Wildfires

By Susan Montoya Bryan

Manueland Marcy Silva combed through the charred rubble that used to be their home, searching for any salvageable bits in the wake of the largest wildfire in New Mexico history.

Manuel found two of his high school wrestling medals. Gone was the bedroom furniture Marcy’s grandpa built as a gift, her wedding dress and their children’s toys.

The family was only one payment away from owning their single-wide mobile home and like many other northern New Mexico residents whose homes were in the path of the flames, the Silvas were uninsured.

After scorching more than 530 square miles of the Rocky Mountain foothills, the government-sparked wildfire is helping to shine a light on what New Mexico officials are calling a crisis, where insurance coverage for everything from homes to workers compensation comes at premiums that often make it unobtainable for many in the poverty-stricken state.

New Mexico officials are banking on a California insurer relocating to the state and selling policies to low-income and underserved areas. But the multimil lion-dollar merger involving California Insurance Co. has been clouded by payto-play allegations and remains stalled in court.

In late October, a California judge stopped short of granting New Mexico’s request to intervene in the case but cleared the way for the state to weigh in on a proposed plan to resolve ongoing conservatorship proceedings.

Attorneys for New Mexico argued during the hearing that the need for more insurers has only intensified since the proceedings began more than three years ago. They pointed to businesses having a difficult time securing adequate workers compensation coverage.

New Mexico Attorney General Hector Balderas told The Associated Press that he’s concerned about families not being able to insure their homes as the risk of

wildfire and post-fire flooding escalate amid climate change.

“I’m very concerned that moving forward these natural disasters are either going to raise premiums or we’re going to be in a deeper crisis like Florida, where insurance providers don’t want to come to New Mexico because it’s a very challenging market to insure,” he said.

Wildfires have burned about 11,000 square miles (28,490 square kilometers) across the U.S. so far this year, slightly outpacing the 10-year average. The season started early in New Mexico when the U.S. Forest Service failed to take into account the ongoing drought and mea sures meant to lessen the fire danger were whipped out of control by strong winds.

The federal government agreed to funnel $2.5 billion in recovery funds to New Mexico in what members of the state’s congressional delegation described as a “down payment” on what would be a decades-long recovery.

While the relief money has been cele brated by New Mexico officials, residents in remote villages scattered throughout the mountains say they have had a difficult time filing claims with federal emergency managers and that there’s no system for quickly getting families the help they need.

Mike Maes has armored his home with sandbags and a ladder is nearby so he and his family can escape to the roof in case of more post-fire flooding.

“I’m not the type of person to go beg for help or go cry for this, that and the other but I’m tired,” he said, lamenting that he has been forced to take time away from his barbershop business to clean up debris and truck in water for flushing toilets and taking showers now that the well on his property has been ruined.

He tried to get insurance years ago but it would have cost more than what he could

have insured his property for.

The Silvas said the cost of insuring a single-wide mobile home manufactured in the 1970s was insurmountable. And the home used a wood-burning stove for heat _ like many homes in rural New Mexico.

Marcy Silva works in information technology at New Mexico Highlands, and Manuel is employed by the San Miguel County Public Works Department. They would have opted for insurance if it was affordable. For now, they and their two young children are living with Manuel’s parents. They hope to buy another mobile home, but acknowledged that the historic pace of inflation isn’t helping and there’s more work to do to restore their property.

“The best way that I can explain it is that it’s been like a never-ending nightmare that just seems to be getting worse and worse,” Manuel said.

California Insurance Co. officials have given assurances to Gov. Michelle Lujan Grisham and state insurance regulators that they would fill the policy gap in New Mexico.

Consumer Watchdog, a Los Angelesbased progressive advocacy group, said New Mexico regulators should be cautious about letting CIC operate in the state. The group sued California regulators in 2020 for emails and other communications after reports surfaced that California Insurance Commissioner Ricardo Lara accepted political donations from insurers, despite promising during his 2018 campaign not to do so.

Lara at the time apologized for accepting political contributions from people asso

ciated with Applied Underwriters – CIC’s parent company – and other insurers. He returned more than $80,000 to insurers and other donors with business before state regulators.

Those associated with Applied Underwriters included lobbyist Eric Serna, who retired in 2006 as New Mexico’s insur ance superintendent after state officials suspended him over conflict-of-interest issues.

Lara came under scrutiny again this year when Consumer Watchdog voiced new concerns about a series of transactions involving insurance industry donations and independent groups working to support his reelection.

Jerry Flanagan, the consumer group’s litigation director, said the situation facing California and New Mexico homeowners when it comes to wildfire is heartbreaking. Statistics compiled by the insurance industry show about 15% of properties in the two states are at risk of wildfire. Only

Montana, Idaho and Colorado have higher percentages.

“Unfortunately, what insurance compa nies want from political officials is usually bad for consumers,” Flanagan said. “So it’s kind of like an out of the frying pan into the fire situation for New Mexico consum ers because you need some coverage but the history with California Insurance Co. is that they can’t be trusted.”

The company disputes the allegations and said every insurer in California engag es in some form of lobbying.

Jeffrey Silver, the company’s general counsel, wrote in an email that CIC has provided coverage across California and that the number of complaints from policyholders and claimants for years has been in the single digits compared to the tens of thousands of policies issued and millions of people covered.

Silver said it’s time California releases its “stranglehold” and clears the way for the company to do business in New

Mexico, where he said it still would be subject to regulatory oversight. Balderas said what appeals to him is that CIC would be moving its executives and capital to New Mexico once the conservatorship is resolved and would be subject to state regulation and taxation.

“I believe you can hold a company more accountable if they’re headquartered and provide services in the state,” he said.

Attorneys are hoping for a resolution next year, but that leaves people like Maes at a difficult impasse. Describing life without basic utilities and the potential for devastation that comes with each rain storm, Maes took a long pause. He said he and his neighbors are tucked away and forgotten and that it’s been hard to cope with all the devastation.

“It’s just an ongoing thing over and over again,” he said. “I don’t see light at the end of the tunnel, but there is hope.”

Copyright 2022 Associated Press. All rights reserved.

News

Markets

Landscapers Find Car Reported Stolen in 1992 Buried at California Mansion

Three

decades after a car was report ed stolen in Northern California, police are digging the missing convertible out of the yard of a $15 million mansion built by a man with a history of arrests for murder, attempted murder and insurance fraud.

The convertible Mercedes Benz, filled with bags of unused concrete, was dis covered in late October by landscapers in the affluent town of Atherton in Silicon Valley, Atherton Mayor Rick DeGolia said, reading a statement from police.

Although c adaver dogs alerted to possible human remains on Thursday, none had been found more than 24 hours after technicians with the San Mateo County Crime Lab began excavating the car, DeGolia said.

Police believe the car was buried 4 to 5 feet deep in the backyard of the home sometime in the 1990s _ before the current owners bought the home. The car was reported stolen in September 1992 in nearby Palo Alto, he said.

Later, the technicians had been able to excavate the passenger side of the con vertible, which was buried with its top down. They also opened the trunk where they found more bags of unused cement. Cadaver dogs were again brought back to the house and again “made a slight

notification of possible human remains,” DeGolia said.

Atherton Police Cmdr. Daniel Larsen said the dogs could be reacting to human remains, old bones, blood, vomit, or a combination of those things. He said the possible owner of the car is believed to be deceased but officials are waiting for DMV records to confirm that.

Larsen said the current homeowners were not under investigation.

The sprawling home with a pool and tennis court was built by Johnny Lew, a man with a history of arrests for murder, attempted murder and insurance fraud, his daughter, Jacq Searle, told the San Francisco Chronicle.

She said the family lived at the proper ty in the 1990s, which is when Atherton police believe the car was buried and that her father had died in 2015 in Washington state.

In 1966, Lew was found guilty of murdering a 21-year-old woman in Los Angeles County. He was released from prison after the California Supreme Court reversed the conviction in 1968, citing hearsay evidence that should not have been allowed at trial, The Chronicle reported, citing court records.

Records showed that in 1977 Lew was convicted of two counts of attempted

murder, also in Los Angeles County, and spent three years in prison.

In the late 1990s, Lew was arrested for insurance fraud after he hired undercover police officers to take a $1.2 million yacht “out west of the Golden Gate Bridge into international waters and put it on the bottom,” The Chronicle reported.

Larsen wouldn’t say if police believe the vehicle was registered to Lew. “We have heard that name come up, but we have not confirmed through our sources that he in fact owned that vehicle,” Larsen said.

The sprawling home and property is valued at least $15 million, according to online real estate listings. Atherton is one of the wealthiest towns in the U.S., with about 7,000 residents within its nearly 5 square miles.

The c ase may be similar to one earlier this year in Alabama, in which authori ties in April unearthed a Hummer vehicle that had been reported stolen in 2016.

The owner of the vehicle had filed an insurance claim on the missing ride and received $22,000 from the insurer, but he was charged with insurance fraud this year after the Hummer was exhumed.

Copyright 2022 Associated Press. All rights reserved.

My New Markets

Cyber Insurance Marketplace

Market Detail: Builders & Tradesmen’s Insurance Services Inc. BTIS provides comprehensive Cyber coverage for a newly expanded list of business types. This broad market serves over 1,000 eligible class codes, including recently added options for $50-100 million revenue businesses, such as retail and food services, hospitals and healthcare, finance, technology, construction and many more. Coverage focuses on minimizing disruption and financial loss from cyberattacks. Policies include detailed security reports, active risk monitoring and dedicated recovery team.

Available Limits: Not disclosed. Carrier: Rated A++ by AM Best. States: Available in 50 states plus District of Columbia.

Contact: Barron Hess; bhess@btisinc.com; 855-359-5529.

Hard to Place Property Insurance

Market Detail: Transportation Risk

Underwriters offers a property insurance program for hard to place risks including dry goods, non-hazardous; sprinklered storage or hazardous storage chemicals; oils, aerosols, biofuels, fireworks, explo sives; vacant property/chapter 11; wood workers; cold storage; EPS risks with or without cooking; plastic injection molders; recyclers — wood, paper, cardboard, metal or rubber; medical centers, admin. Prefers small to mid-size enterprise businesses; can do primary or excess layers. Usual list of conditions, exclusions/warranty and NMA — LMA clauses to apply. Submission requirements: full details — COPE and pictures inside and out; plus 5-year claims record; survey and prop forms if available. If not available, indications will be subject to survey report within 60 days of inception at underwriter’s expense. Appointment required.

Available Limits: Rates start at 1%; schedules of values — $2 million up to $100 million with maximum capacity or line of $4 million. Minimum premium $50,000. Carrier: Not disclosed. States: Available in most states. Not available in Alaska, Hawaii and District of Columbia.

Contact: underwriting@transportation risk.com; 800-977-9884.

Firearms

Market Detail: SAGE Program

Underwriters provides workers’ compen sation coverage for the shooting sports industry, with over 50 years of insurance program expertise. Expertise includes underwriting indoor and outdoor ranges, trap and skeet, retail gun stores, firearms and ammo manufacturing risks. Has pen. Available Limits: Not disclosed.

Carrier: Admitted; rated A-XII by AM Best. States: Available in most states and District of Columbia. Not available in Alaska, Hawaii, Massachusetts, North Dakota, Ohio, Washington and Wyoming.

Contact: Chuck Holdren; info@sageuw. com; 833-724-3111 x 700.

Contractual Liability Insurance

Market Detail: Lexington National provides insurance coverage to service contract providers, obligors, manufac turers and retailers. Our AM Best A- rated paper ensures compliance with state regulations and third-party lenders. Lexington National is licensed to issue CLIPs in every state except Hawaii and Washington. LNWS is available to act as an obligor/provider in every state except California, Hawaii, and Washington. Service contracts: Auto —- service contracts associated with automobiles including VSC, GAP, tire and wheel, etch, key replacement and others. Consumer goods — mechanical breakdown and ADH for consumer electronics, appliances, fur niture, jewelry, sporting goods and more. Designated contracts — covers commercial and other agreements where contractual risk transfer is desired. Home — home warranty and related service contracts and is flexible to adapt our CLIP and Obligor

services to meet the needs of our cus tomers. Partners: insuretech companies; franchise and independent auto dealers; automotive; consumer goods; third party administrators; manufacturers.

Available Limits: Not disclosed.

Carrier: Rated A- by AM Best. States: Available in most states plus District of Columbia. Not available in Hawaii and Washington.

Contact: Ronald Frank; rfrank@lexington nationalinsurance.com; 800-951-2663.

LvPlace - Real Estate (Hazard and Flood) and/or Non-Real Estate Collateral

Market Detail: Lawrence Victoria Inc. offers a professional insurance tracking system. Servicer tracks insurance, then its insurance tracking system handles all private labelled notifications when there is exposure; notifications sent to bank or direct to borrower. Benefits include: complete compliance safety-net; allows servicer complete control over the process; removes letter tracking duties; prompts borrowers to maintain insurance. Ideal users are servicers who want to maintain control of their LPI program; compliance oriented with focus on a fail-safe system for required letter language, letter prepara tion and letter timing compliance. Works direct with insured or via sub-agents. Has worked with agents since 1976 to help grow their business by offering superior programs, pro-active compliance support and high touch service.

Available Limits: Not disclosed.

Carrier: Not disclosed.

States: Available in all 50 states plus District of Columbia.

Contact: Jamey Lawrence; jamey@lviainc. com; 440-349-0775.

This section brought to you by Insurance Journal's sister website: www.mynewmarkets.com

Need a Market? Find It. FAST

By Andrea Wells

Thedemand for transportation services remains strong and experts believe that trend will continue throughout 2023. That’s good news for transportation insurance experts. At the same time, the trucking sector today faces challenges, including ongoing driver shortages, rising operational costs, skyrocketing medical and litigation costs, and others.

But transportation insurance specialists say those challenges can also open the door to new opportunities and that data-driven technology is helping truck ing firms and their insurance partners navigate these bumps in the road.

“Inflation is affecting everything,” said Mark Gallagher, vice president of national transportation at broker RPS, during a recent webinar on the transportation sec tor. “We've seen costs rise in equipment and values of repairs, cargo values and replacement of vehicles.”

RPS’s recent 2022 U.S. Transportation Market Outlook noted that the rise in oper ational costs has already led to an increase in consolidation in certain sectors of the trucking industry, with larger firms buying up smaller operators as they struggle with the increased cost pressures.

Improving safety scores and embracing loss control services are key in the tough transportation market, especially as truck ers themselves come under higher scrutiny every time a loss occurs, Gallagher added.

“The typical trucker out there is operating safely, but unfortunately there's a stigma,” said Craig Moss, vice president of underwriting at Paramount, an ISC Company in Tyler, Texas, that focuses exclusively on the trucking industry. When there is an accident with a large truck, the driver is often seen at fault, he said. “We paint truckers all with the same brush and because we're in a litigious society, I think truckers get a bad rep.”

Social inflation and nuclear verdicts are concerns for both insureds and insurance carriers.

“Carriers are challenged with these verdicts, which are being fueled by rising medical costs and the high costs of

litigation, including litigation funding,” according to RPS’s Gallagher.

'There are certain large law firms out there that have the ability to obtain nuclear verdicts as a result of finding something egregious in the claim. ... That is a concern ... for every transportation cli ent out there ...'

Nuclear verdicts — cases that exceed $10 million in payments — are becoming increasingly prevalent.

“There are certain large law firms out there that have the ability to obtain nuclear verdicts as a result of finding something egregious in the claim,” noted Gallagher. “That is a concern for every transportation client out there, and they are increasingly coming under scrutiny every time a loss occurs.”

Moss agreed. “Unfortunately, truckers are being stigmatized, and in my opinion, they’re also being sought out in a lot of instances,” he said.

Data Paving the Way to Safety

There are many tools to reduce risk, including dash cams, sensors, real-time monitoring and other telematics devices. The tools that enable data analytics have been especially helpful to the insurance industry for rating, underwriting, and classifying the best-in-class trucking firms and their drivers.

The Central Analysis Bureau (CAB) is one organization that has become the “gold standard” in underwriting trans portation risks, according to Moss. CAB turns federal data submitted to the Federal Motor Carrier Safety Administration (FMCSA) into better intelligence that insur ers and managing general agencies, like Paramount, are using to better evaluate driver safety and performance.

CAB, part of Randall Reilly’s Risk Intelligence Division, is a data supplier to the insurance, motor carrier and other business sectors.

“CAB data has helped tremendously in underwriting,” Moss said. CAB provides a “safety score” that uses “cold hard facts” to validate underwriting decisions, he said.

CAB evaluates data based on reportable continued on page 30

Special Report: Trucking

and recordable accidents and incidents.

Moss notes that the data isn’t always driven by an accident. “It just has to be reportable … CAB can tell you where the accident or incident happened, what the conditions were [in that location], was the street wet or was it raining or snowing, what the violations were [if any], who the driver was, and more.”

When it comes to accurately underwrit ing and pricing, the CAB data makes a huge difference, Moss says.

“It allows us to look at a specific trucking company’s safety record and determine where their rates should be,” he said.

“It helps true up the rates so you’re not offering bad rates to good clients. … We can then price risks accordingly and not price based on the overall industry.”

Moss says CAB scores have become “The Bible” when it comes to improving trucker safety. Trucking operators are able to make adjustments to improve their overall safety performance based on the data. And underwriters “can identify good risks versus mediocre risks versus bad risks.”

Over time, Moss sees the information making a big difference in how truckers operate.

“Data driven technologies, like CAB, are allowing the trucker to make a better decision on who they're hiring for drivers,”

Moss added. That’s because they can pull data on a specific driver. “They're not hiring the bad guys; they're hiring the good guys.”

The end result is safer drivers and safer trucks on the roads, he added.

This is important because large trucks often mean severe injuries, as well as fatalities. Big rig accidents experience a fatal collision with a vehicle in 74% of all crashes, 81% of all injury cases, and 76% of all property damage cases, according to the Federal Motor Carrier Safety Administration.

RPS’s Gallagher said that the trucking clients who keep their safety scores in check will be the accounts that insurance companies want to retain. As the cost of insurance continues to rise, risk management and embracing loss control services will be more important than ever, he added.

“We ask clients to embrace risk control services and utilize those services and adopt technology in your vehicles that allow for sharing of the data through telematics systems,” he said in the RPS webinar. “In the end, it will likely improve your client's margins.”

Some insurance carriers offer discounts on either premiums or the equipment, he added. Some carriers are even mandating telematics systems such as forward facing

and driver facing cameras as a requirement for coverage.

Non-Fleet Trucking

Mike Mitchell, RPS area president, says that when it comes to the “non-fleet” space, which typically is thought of as one to 10 trucks, there are new entrants from the insurtech world.

“We are seeing some new markets enter into the marketplace for non-fleet — a lot of insurtechs and a lot of tech nology involved with the new markets that are coming in,” Mitchell said in the RPS webinar. “They're trying to find that edge over some of these carriers that have been in the business for a long time and trying to find that competitive advantage.”

This is leading to an uptick in usagebased insurance, he added. “We've seen this in the personal lines world, and now we're starting to see this carryover into the commercial trucking space, as well.”

Cover Whale Insurance Solutions Inc., launched in 2020, is one commercial auto insurtech looking to improve driver safety and reduce insurance premiums along the way.

Cover Whale CEO and Founder Dan Abrahamsen says agents can get a bindable quote in under three minutes on Cover Whale’s portal. But even better

are the extra embedded risk management services that the insurer can provide to improve driver safety through technolo gy, he said.

The Cover Whale Driver Safety Program is a combination of advanced dash cams, driver coaching, and insurance coverage that is aimed at enhancing driver safety, lowering costs, and ensuring compliance with vehicle usage policies.

“With the purchase of our policy, insureds get their driver set up with a dual-facing, AI dash camera, but we like to call it an ‘event recorder’ to really try to highlight some of the privacy concerns,” Abrahamsen said. “It's not recording you 24/7. It's recording in the case of an event, so if the device senses there might be an accident, or the truck’s trying to avoid an accident, the recorder will snap some short video around those events.”

trucking firms that face tight profit margins as the costs of fuel and equipment have skyrocketed in recent years. But price isn’t everything, Abrahamsen says.

“We recognize that an improvement in safety is real, and that is measurable. People, and even our drivers, can get excited about that,” he said.

Even drivers who didn’t want a dash cam but found themselves wrongfully blamed in an accident changed their opinion on the device, he said.

“Even in our own portfolio, we have drivers that maybe at first didn't want the dash cam, but were involved in a claim and we had the video that proved they weren't at fault,” he said. “So we're really trying to ‘exonerate’ as much as possible, and I

Market at a Glance

think in a lot of ways the event recording from dash cams help do that in the worst of all situations.”

Telematics is a huge conversation with transportation carriers today, said Eden Hancock, RPS area senior vice president, in the webinar, stressing that it's not “big brother” watching.

“That's not what it is anymore.

Transportation companies are getting past that and going ahead and doing it from a safety standpoint,” she said.

But insurance companies also want access to that telematics data.

Let insurance companies have access to that data to help offset the rising costs of insurance, she advised. “So don't be afraid.”

Abrahamsen says getting drivers com fortable with on-board technology such as dual-facing dash cameras takes a little bit of time but the benefits in driver safety performance and ultimately better pricing on good accounts is a value-add. That’s when they realize that their safe driving can help them get an even better rate on renewal, he said.

“We're really trying to buck the trend of just blanket rate increases for everybody,” he said.

Through technology and usage policies “we’re trying to really identify which drivers are the ones that should be getting the discounts because their driving history and information shows that they've been operating really safely, and they shouldn't just get that 15% rate increase everybody's getting this year,” he said. “Sorry, we don't buy into that … we're working to tailor pricing based on driving behavior.”

Cover Whale focuses on the smaller fleets, those with 20 trucks or less, or even the owner-operator trucking firm.

Better insurance pricing is important to any businessowner, especially small

Trucking

serves as a barometer of the U.S. economy, representing 72.2% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the American Trucking Association (ATA). Trucks hauled 10.93 billion tons of freight in 2021. Motor carriers collected $875.5 billion, or 80.8% of total revenue earned by all transport modes.

The For-Hire Truck Tonnage Index published by the ATA shows that demand increased 0.5% in September after rising 2.1% in August. In September, the index equaled 118.8 versus 118.2 in August.

Compared with September 2021, the index increased 5.5%, which was the thirteenth straight year-over-year gain. In August, the index was up 6.7% from a year earlier. Year-to-date through September, compared with the same period in 2021, tonnage was up 4%.

“The latest gain put tonnage at the highest level since August 2019 and the third highest level on record,” said ATA Chief Economist Bob Costello.

But increased demand for freight transportation continues to be met with driver shortages. The ATA estimates that the current driver shortage rose to 80,000 in 2021 – an all-time high for the sector and that figure is expected to double by 2030. To keep up with growing trucking demand over the next decade, trucking firms will need to hire one million new drivers to close the gap caused by demand for freight, projected retirements in the sector, and other issues, according to the ATA.

The total cost of trucking operations also grew by 12.7% in 2021 to $1.855 per mile, the highest on record, according to recent data from the American Transportation Research Institute (ATRI).

Leading contributors to this increase were fuel (35.4% higher than in 2020), repair and maintenance (18.2% higher than in 2020), and driver wages (10.8% higher than in 2020). On a cost-per-hour basis, costs increased to $74.65.

Insurance costs are also up on average. Overall, smaller trucking fleets — those with 100 or fewer trucks — spend more on average, about 4.9 cents more per mile than fleets with more than 100 trucks. While larger fleets spent less than smaller fleets on insurance premiums per mile, the advantage was offset by higher out-ofpocket incident costs per mile for large fleets, the ATRI says.

'We're really trying to buck the trend of just blanket rate increases for everybody.'

Spotlight: Agency E&O Survey

Agency E&O Premiums Rise Again 3 Years in a Row, More Agencies Report Paying More for E&O Coverage

Comparison of Changes in E&O Premium By Region

By Andrea Wells

Agency E&O survey.

Region Decreased Increased Same

errors and omis sions premiums have risen on average for three years in a row, according to Insurance Journal’s annual

AgencyMidwest 16.0% 84.0% 58.0%

East 0.0% 100.0% 57.0%

South Central 25.0% 75 .0% 30.0%

Southeast 28.0% 72 .0% 32 .0%

West 12.0% 88.0% 38.0%

Some 70.5% of respondents saw an increase in their agency E&O renewal premium in 2022. That’s up from 58.4% of respondents who saw increases in E&O renewal premiums

Why Change in E&O Carriers

Risk Management Steps Implemented in

in 2021, and up from 50.2% who saw increases in the 2020 agency E&O survey.

Those owners and buyers of agency E&O coverage don’t see the upward trend on pricing coming to an end next year either. The survey found that 68.6% predict another increase at their next renewal; that’s up from 61.8% in the 2021 survey and up from 53.8% in 2020 survey.

Hired a third-party to perform an agency audit 5.7%

Enhanced agency focus on internal quality control 58.9%

Developed/updated agency procedural manual 34 .8%

Recent E&O Restrictions, Exclusions or Underwriting Changes

Deductible 44 .6%

Company insolvency 15.8%

Certain breaches of personal data 7.9%

Insured vs. insured 3.0%

Fraud, dishonest acts, illegal acts, false advertising, discrimination 8.9%

Services provided but not covered 6.9%

Pollution and/or mold 5.0%

Restrictions on excess/surplus lines 6.9%

Bodily injury/property damage 1.0%

Fines and penalties 5.0%

Fiduciary failure of money 3.0%

Libel, slander 1.0%

Patents & trade secrets 3.0%

Licensure 2.0%

Other 24 .0%

Almost half (47.0%) of the agency E&O buyers who responded to the survey said the increase in premium was due to a rate increase from the agency’s E&O carrier while another 38.3% of respondents cited the increase came from agency growth/expansion/ acquisition. Only 7.4% said the increase was due to the agency’s own claims experi ence while 4.7% reported the increase was due to changes to underwriting risk factors (other than growth). Just 7.4% noted the increase in premium was due to changes in their policy such as higher limits of

coverage; that’s up from 2.3% who reported higher coverage limits as the reason in the 2021 survey.

It’s no surprise that more agencies are placing business

Annual Cost of Agency E&O Coverage

of

Agency E&O Premium Change in the Past Three Years

No. 1 Reason

Comparison of Changes in E&O Premium By Region Region Decreased Increased

Agency E&O Premium Change in 2022

to 2021

Why Change in E&O Carriers

Agency E&O Premium Change in the Past Three Years

Risk Management Steps Implemented in Past Three Years

Prediction on E&O Premium Change at Next

of

Recent E&O Restrictions, Exclusions or Underwriting Changes

with Agency

Agency growth/expansion/acquisition

Change to underwriting risk factors (other

Changes in policy such as

Spotlight: Agency E&O Survey

Carrier’s rates increased

Changed our carrier 6.0%

Our agency ’s own claims experience 7. 4%

Don’t know

One area that has continued to change is agency E&O deductibles. Some 44.6% of respondents reported a recent change to policy deductibles. That’s slightly down from 51.1% of agencies that reported changes to deductibles in the 2021 survey.

Company insolvency exclu sions (15.8%), changes to fraud,

acts, illegal acts, false

(8.9%), and certain breaches of personal data (7.9%) were other areas survey respondents

as recent changes in cov erage. However, a majority of

New E&O Risk Management in the Past

respondents (71.2%) continue to report satisfaction with E&O terms, conditions and limits on their agency E&O policies, which was a slight decrease (73.0%) from satisfaction levels reported in the 2021 survey.

Year-after-year, the vast majority of respondents (83.4%) continue to report that the number one reason they carrier agency E&O coverage

E&O Limits Purchased

is to protect the assets of the agency. Only 10.1% reported increasing their agency E&O limit at the last renewal.

In surance Journal’s Agency E&O Survey collected 225 responses from agency owners nationwide via an online survey in late September and early October 2022. For more information, email: awells@ insurancejournal.com.

$2 million or less per claim 45 .4%

$3 million per claim 14.9%

$4 million per claim 4.0%

$5 million per claim 17.8%

$6 million to $10 million per claim 14 .4%

million-plus per claim 1. 2%

Most Important Issues When Selecting E&O

E&O from Agent

Agencies with Risk Management Plan to Mitigate E&O During Natural Disasters

Yes, we have a specific risk manage plan for

have some steps

place

are planning to write a plan for

disasters 20.5%

31.4%

disasters 3.9%

we do not have an E&O disaster risk management plan 44 .2%

Why Premiums Increased

Agency growth/expansion/acquisition 38.4%

Change to underwriting risk factors (other than

Changes in policy such as

Carrier’s rates

4.7%

7. 4%

47.0%

Changed our carrier 6.0%

Our agency ’s own claims experience 7. 4%

Don’t know 3. 4%

Closer Look: Errors & Omissions

4 Important Aspects of Agency E&O Coverage

By Patrick Wraight

Errors and omissions (E&O) coverage is one of those topics that people have a love/hate relationship with. For the most part, professionals who need E&O cover like to know what coverage they have, when it covers them, and how they can get it as cheaply as possible. On the other hand, this is one of those topics where the infor mation can be contradictory, depending on to whom you’re listening.

As with many aspects of life, we find that a reasoned approach to this topic is the best approach. I am aware that people will disagree with my assessment and that’s

OK. We can disagree. We’ve all been wrong before. As we look at E&O coverage, we are considering four important considerations.

The Need E&O insurance is designed to protect the insured from themselves and the people that work for them. The worst pos sible reason to buy insurance is that someone said that you need it, like when an insurance agent attempts to secure an appointment with an insurance company and the company wants to see their E&O decla rations to make sure that they are covered. E&O insurance is necessary because insurance agents are professionals in the insurance business.

Having written that, I’m aware that many agents are counseled to avoid the term professional because that might open the door to additional E&O exposure. My response to that is very simple. If you aren’t a professional, why do you need E&O insur ance, because E&O coverage is meant to protect professionals against those times when they make a mistake, an error or omission? If you aren’t a pro fessional, why do you have to go through a licensing process to certify that you meet your state’s minimum standards of education and training to receive a license? If you aren’t a professional, why are you spending so much money as a member of professional

associations for insurance professionals?

No. Insurance agents are professionals who go about their daily business, and in that daily business they work in several phases of insurance transactions. They have access to the companies that want to sell insurance to people, and they know the people to whom those companies want to sell insurance. They have access to people who want to buy insurance and they work to discover what insurance they need to buy so that they can connect with the companies that sell that insurance.

The Exposures

So why do insurance agents

Closer Look: Errors & Omissions

need E&O insurance? The short answer is that they are people and, believe it or not, people make mistakes. As much as we think that we are right all the time, it turns out that we make mistakes, and we make them as often as the people that we complain about on the highway. Some mistakes are avoidable, but since no one is 100% infallible, we simply can’t not make mistakes.

Some mistakes come from people who are not properly trained in processes, procedures, coverages, or other difficult issues they will face.

Other mistakes arise when the team is over-committed. That is to say that we’re so busy sometimes that we miss details. It’s like that time you were supposed to get that vehi cle added to that one policy and the endorsement request form was sitting on your desk and someone put a file on top of the form, and you didn’t find the form until after the claim came in. Yeah. It’s like that.

This is what E&O coverage is for. It’s about those mistakes that are totally avoidable, but because we’re people, they happen.

The Common Reaction

It seems that the most common advice and reaction to the potential of an E&O claim is to reduce the potential of loss.

That’s great. We approve of proper risk management that starts with education, changes in procedures, standardization, and constant review. But that’s not exactly what happens.

Instead of learning about the risk and conducting a proper risk assessment, we see agen cies going the other direction. They choose to deny their place

as the expert in the insurance policy. They limit helping their clients to asking if they have life insurance or would you like us to try and bundle your home and auto policies. It’s the insurance equivalent of asking if you want the combo or just the sandwich. They choose not to act like an expert so they can reduce the likelihood of an E&O loss.

Some simply refuse to deal with the issue and chalk poten tial claims up as part of the cost of doing business. They accept that claims will happen without taking the effort to ensure they are minimized or mitigated before they happen.

Let’s be honest with each

other. If you talked to a client who was buying insurance and you saw that their building showed no pride of ownership or that they had the attitude that the building is insured so who cares what we do with it, you would (I hope) choose not to do business with that client?

But the agency that tells their staff not to help people might just take the order and make sure the check clears, or they just think claims are going to happen, so let’s not worry much about it. We’ll just keep a high retention, keep cash in the bank and hope for the best.

Risk Mitigation

Maybe it’s an overstatement

that those attitudes are out there and maybe not. Whether you think it’s a problem or not, there is something every agency can be doing instead and that’s truly acting like the insurance and risk professional that you should be.

This starts with recognizing that the risk is real because people make mistakes, and you simply cannot by fiat declare that no mistakes will happen.

Well, you can but that would be a mistake and you’ll soon find yourself thinking about the big mistake that you just made and deal with the looks that the rest of the team will give you.

Accepting the fact of mistakes does not mean that

you should limit the number of mistakes that could be made by limiting the number of ques tions the team asks or offerings the team makes. Nor does it make sense to just accept that mistakes will happen so you might as well have a big bank account called Mistake Fund. It means that in recognizing it will happen, you take steps to stop as many mistakes as possible.

Start with education and no, I don’t mean going out for the $24.99 all you can eat CE buf fet. I mean real education. Send your people to classes. Help them to choose designation programs that fit their needs and interests, and the needs

of your office. Invest in the education and growth of your team. Help them to learn the policies that you sell, and not just the names and numbers, but know the policies. Help them to learn the importance of reading and understanding insurance policies.

Insurance is complicated and it isn’t just the policies that are complicated — exposures are complicated. Businesses and personal lives are more integrated than ever, and things are just a mess all over the place. Your team needs to be always learning new things and learning the old things over again because we forget.

As a side note, you might get the impression that I’m not a CE fan, which is incomplete. I think the CE system is broken and that too many of us call getting your CE requirements the educational program. The way CE is done must be fixed, but that is another topic for another day.

As the team begins its education, the next step is to build a system.

Systems are ways that we keep from making mistakes.

How do you think I get anything done? It’s the system that keeps me on task, or at least keeps me from getting too far off task.

That means that as an agency principal, you need to work with the team to create processes and procedures that keep the team from making mistakes. There should be risk exposure checklists. There should be conversation checklists. There should be documentation checklists.

Yes, it takes time to create procedure manuals. It takes even more time and effort to train on procedures and man

uals. Then, you have to make sure to keep them up to date so that you don’t forget new things or important changes to the procedures.

signatures and keep copies in the management system. In a digital environment, there is no excuse for a lack of documenta tion.

I have one more thought about mitigating the risk of an E&O issue and it’s probably the most important one of all.

It’s all about communication.

Procedures create consis tency and consistency creates habits and habits reduce how much thinking everyone has to do. It’s not that people go about their business like zombies. It’s about letting people think about the important things, like how to best cover your clients’ exposures. Besides that, con sistency in dealing with clients is one more way to reduce your E&O exposure.

One of the procedures that an agency needs is a documentation procedure. The team shouldn’t ask what should be documented, how, where, or when to document. Here’s the short answer for your procedure. Document everything. Document every offer of coverage. Document every option. Document every suggestion. Document every phone call. Document every email. Everything.

If you have an agency management system or cus tomer relationship manager, you already have a place to document everything. It’s just a matter of making it important enough so that the team does it. It’s already got the functionality to provide a place for notes. It already lets you import emails and documents. Make it easier on yourself and ditch the paper forms and scanner. Just use electronic

Starting with the leadership communicating the proce dures, especially changes to procedures, you must communicate more than you’re comfortable. You should be overcommunicating with your team. I don’t mean telling them weird things like what your uncle Harry does for a living, but communicating, over and over again, all that they should be doing to help your clients.

Open communication all around the office about the important things in the office creates a safe place for the team to communicate with you. When they feel like communication is safe, they won’t hide when they’ve made a mistake. It’s a step toward the people owning their mistakes and working with you to get them corrected. It might even be that open communication gets something in front of you early enough that it doesn’t become a claim later.

One thing is certain. Your E&O exposure is big enough, and the people that you serve will be plentiful enough (we hope) that you’re bound to have claims eventually.

Hopefully, your awareness of that possibility makes you a better leader and a better team. Hopefully, you learn how to better serve your clients. Hopefully, you learn how to mitigate that risk and stay in the business a good long time.

E&O insurance is necessary because insurance agents are professionals in the insurance business.

Idea Exchange: Minding Your Business

M&A Deals Makers & Deal Breakers

Whyare some transactions or “deals” most likely to happen or not happen? There are a number of factors that come into play and those of us in the industry call them deal makers and deal breakers.

Every deal needs to be judged on its own merits. However, there is often a pattern that develops during the merger and acquisition (M&A) process. Below are a few examples based on my experience with numerous buyers and sellers of insurance agencies from the past 30 years.

By Catherine Oak

Five Deal Breakers and How to Avoid Them

1. Compatibility. Lack of good compat ibility between the parties, occurs when due diligence was not done properly. For example, merging a sales and service orga nization might sound good initially, but in the end can lead to disaster. Buyers and sellers need to understand and appreciate each other’s background and business philosophy before closing a deal.

How to avoid: Bring in a third party to properly assess each firm. An unbiased opinion will prevent issues overlooked by rose colored glasses. The key is for the seller to factor in how the buyer will run the business. The buyer also needs to understand and appreciate how the business was run to date and take proper steps for a smooth transition.

2. Owners are not ready to sell. The owners may think they are ready to sell and aren’t. When it comes down to the wire, they can’t pull the trigger. Some sellers are afraid to go home to do the

“honey do” list. They have no real hobbies and look at selling/retiring as “dying.” We have actually had clients contract illnesses before signing the final deal.

How to avoid: The seller needs to sit down and review everything, including selling the business, life after the sale, and financial equity. Again, outside experts can assist with this process. Unfortunately, some sellers will get cold feet no matter what, so the buyer needs to exercise patience. Selling a firm can be similar to facing death for some people. After all, the business has often been the largest part of a typical seller’s life. The key to this deal breaker is getting career counseling and having patience for the process to unfold.

3. Price. Owners often have an over-in flated opinion of the price of their firm. They have “heard” today that firms are

going for two and a half to three times commissions, but their profit margin is only in the 15%-20% range. The rumors on the street are usually a case of terms that require a good deal of growth in revenues and profit in the future to get the top dollar or multiple, or the firm is very profitable, i.e., EBITDA in the 25% to 35% range.

How to avoid: Buyers need to know what a fair price is for an agency and stick to it. Buyers should understand what price makes financial sense for them. Sellers need to educate themselves on agency value, especially their own and the full impact of the terms of deals.

4. Giving up control. Many owners and sellers like sales and often become tired of the job of managing the agency. Despite that, they are usually afraid to give up control of the firm. They aren’t sure what

life will be like when they aren’t calling the shots. Most sellers have been running their own business for many years and might lack the skills or temperament to work with a partner or for a new owner.

How to avoid: Sellers need to evaluate what it is they are getting into and consider what it would be like to work for someone else. Buyers need to provide a way to make the transition seamless, such as providing the seller with as much authority as possible, and have a clear understanding of what the seller’s “hot” buttons are.

5. No transition plan. A lack of a transition plan will make a closed deal go sour. A buyer might tell the seller that nothing will change and the seller anticipates that. However, both the buyer and seller might not have understood each other’s business model and may be kidding themselves.

How to avoid: The seller needs to under stand that things will change, and the buyer needs to realistically state that fact. During the “courting” process the buyer and seller must consider how the integra tion will take place and try to preserve the best aspects of the cultures of each firm.

Five Deal Makers

1. Build rapport. An automatic real connection should develop between buyer and seller. Synergy is when 1+1=3 or 4! These are the special deals when the potential seems boundless. The key is to make sure that the connection is real and not two salespeople trying to wow each other.

2. Ideal post transaction roles. This occurs when the seller and buyer will be able to do what they like to do best. The

role might include things like the ability to write accounts they could not land before due to having additional markets and being able to provide new services to their clients. Or perhaps a seller wants to just service key accounts and not worry about management.

3. Resolved weaknesses. Agency weaknesses that the seller or buyer cannot solve themselves are resolved with the transaction. The ideal transaction includes complimentary strengths and weaknesses, rather than just more of the same strengths or weaknesses.

4. Effective business succession. The deal should provide the much needed perpetuation plan for the owners that they were unable to do with their own key people and/or family members.

5. Smooth transition. When both parties are straightforward about the future integration of the firms, the owners will feel that change will be acceptable and not too drastic. The seller might secure from the buyer an “office” to go to, where they can stay as long as they want. This is the opposite situation of Deal Breaker number five, when the two parties ignored that change will occur, and both sides underestimate how much, and its impact. The ideal scenario is when the transition is planned, and the buyer and seller remain flexible.

The difference between a successful transaction and one that falls apart is a clear understanding of the relevant facts. Use of a third party will remove the biases and personal feelings that too often cloud judgment. The making of a good deal for all parties takes time, patience and expertise.

Oak is the founder of the international consulting firm, Oak & Associates, based in Northern California and Bend, Oregon. The firm specializes in financial and management consulting for independent insurance agencies, including valuations, mergers, acquisitions, sales and marketing planning as well as perpetuation planning. Phone: 707-935-6565. E-mail at catoak@gmail.com.

Idea Exchange: Technology

Models, Moats and Moat Mortality

Insurancecompanies, like all companies regardless of industry, should have several management capabilities — a strategy to differentiate themselves in the marketplace, a business model to enable the strategy, a moat to defend the business model, and a plan to strengthen (or replace) any deteriorating or dying components of the moat.

In this column, I will discuss business models, moats and moat mortality. But, because moats depend on the existence of business models, I will discuss business models in some depth before moving on to moats and moat mortality.

I’m not going to discuss corporate strategy. Of course, I wouldn’t disagree with any person about the critical importance of companies needing to have a strategy (e.g., an initiative that provides a company with a unique, differentiating position in their markets of choice). However, I plan to put aside any discussions of strategies for other writers and columnists.

Business Models

By Barry Rabkin

or corporation or both) accomplish a job (i.e., fulfill a need) affordably, conveniently and effectively.

Second, the firm establishes a profit formula to deliver the value proposition in a profitable manner.

Creating a Robust Business Model

Start with the key question: What is a business model? Investopedia defines a business model as “a company’s plan for generating value to targeted market segments through its provision of products or services (or both) and simultaneously generating a profit.”

There are many other descriptions of business models available from a mul titude of management texts and similar sources. However, the essence of a what I consider a traditional business model comes down to four major components: a value proposition; a profit formula; a set of resources; and a set of processes.

Diving Into the Four Components

First, a firm creates a value proposition, which should be defined in a manner by the firm to help someone (e.g., consumer

Third, the firm identifies the resources it needs (i.e., buildings, equipment, people, skills, products, technology and technol ogy applications) to support the value proposition (and deliver it profitably).

Fourth, processes are created and maintained that are required to support the firm’s value proposition and resources simply and affordably.

I believe that firms need to take a further step to create what I call a “robust business model.” My concept of a robust business model is the expansion of the traditional business model with three components — activities, technology applications and technologies.

Consider the process of providing customer service, which encompasses several activities, technology applications and technologies, of which:

One activity is a CSR searching for the information to answer a customer’s question.

Two supporting technology applications are: 1) the CSR using a System of Record (SoR) that the information is stored in the CSR is searching for; or 2) the CSR asks a SoR for the information using an enterprise virtual assistant.

Two supporting technologies enabling the technology applications are: 1) a data repository located on-premises or off-premises, or 2) an AI-enabled voice recognition system that responds to the CSR with the requested information by transforming textual information into sound.

My rationale for expanding the traditional business model is driven by two realities:

Processes are comprised of one or more activities that can be, and usually are but not always, supported by one or more technology applications that can be, and usually are but not always, supported by one or more technologies.

Companies need to explicitly monitor and manage trends and challenges of the three expansion components of the robust business model with the same importance as explicitly monitoring and managing the trends and challenges of the four compo nents of the traditional business model.

Managing to the Critical Realities of an Industry

There is an extremely critical point that company executives must keep in

mind regarding creating and managing traditional or robust business models. Firms, regardless of industry, must always manage to the realities of their industry. Operating, market, competitive and regu latory dynamics are not equivalent among and between industries. Business models that are appropriate for information tech nology or telecommunications firms are not appropriate for insurance companies. A business model that is appropriate for property/casualty insurance companies is not appropriate for life insurance compa nies.

What are some of the critical realities — whether an insurer has a traditional or robust model — of our insurance industry?

Insurance firms must always conduct commerce in a manner which: is underscored by the reality that no line of insurance is a commodity; complies with insurance regulations in the jurisdictions the insurer conducts commerce; offers products that are priced according to sound actuarial principles; takes into consideration that the industry’s product is a legal contract with terms, conditions, and restrictions.

Those four insurance realities reinforce that an insurer cannot wholesale take a business model used by another industry.

Consider the reality of paying claims. Yes, insurers are in the business of paying claims but only the claims or the parts of a claim that meet the terms, conditions and

restrictions of the claimant’s policy. There will be situations when claims can’t always be paid immediately or even in a time frame that any reasonable person would consider as real time even if claimants have been conditioned by other industries conducting commerce in real time or near real time.

Why?

Insurance fraud happens unfortunately far too often. Advances in technology including Deep Fakes will accelerate insur ance fraud. (Might the emerging metaverse become a fraud amplifier?) Lawyers, whether in-house or outside counsel, will always be critical players in the insurance industry, as will Special Investigative Units (SIUs).

Moats

With my business model discussion as context, let’s turn to moats.

The word “moat” is used as a term to describe the resources a firm uses to pro tect and enable its business model. Firms, regardless of industry, wanting to become and remain successful, need a defensible moat to protect and support their business model.

It is very chic, very “au courant,” to discuss moats as if the essence of a moat is entirely comprised of technologies or technology applications. I find it extremely frightening to believe that technology and technology applications are the be-all and end-all of protecting any firm’s competitive success, inclusive of insurance companies.

There are more, and more significant, attributes beyond technology or technology applications that could (or should) comprise a moat and work in an interdependent manner. As an example, I show 10 attributes in the visual (p. 47) that could comprise a moat.

Note that Cost (Low or High) means only one or the other for a specific product, service or business unit. I realize that the same firm can employ both low cost and high cost moat components depending on the product, solution or market segment.

Moreover, I believe successful firms are built on two (and preferably more) of the moat attributes (with a few insurance

on page 47

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• Evolving with the times – As a division of MetaBank, our financial strength and stability offer our partners peace of mind that we will be here today, tomorrow, and in the future

• Partnering for the future – As a good corporate partner, our programs evolve and enhance the benefits you can offer your insureds, increasing your retention

Agile Premium Finance 475 Half Day Road, Lincolnshire, IL 60069 Phone: (269) 365-6747 Email: GGriffin@agile-pf.com www.agile-pf.com

• Driven by innovation and backed by Valley National Bank (NASDAQ: VLY), Agile is one of the fastest growing companies in premium finance.

• Offering convenient, efficient premium finance technology solutions designed to make your days more productive.

• Agile takes great pride in offering the best customer experience for both agent partners and insureds. We go above and beyond to deliver for our clients.

Premium Finance Directory

COST Financial Group, Inc.

807 W. Highway 50, Ste. 4, O’Fallon, IL 62269

Phone: (800) 844-2678, Fax: (618) 206-3223

Email: daveg@costfinancial.com www.costfinancial.com

Avian Premium Finance

2550 N. Hollywood Way, Ste. 201 Burbank, CA 91505

Phone: (818) 333-5900, Fax: (818) 333-5901

Email: marketing@avianpremiumfinance.com www.avianpremiumfinance.com

• Decrease the down payment by financing your broker fees. We also offer discount renewals with down payments as low as 15%.

• Increase your agency revenue by adding referral fees. Over 8% in APR to your agency.

• We have a customer service team dedicated to keeping your accounts current and contacting your insureds before their policy cancels.

Capital Premium Financing

12235 S. 800 E, Draper, UT 84020

Phone: (800) 767-0705, Fax: (800) 700-3170

Email: info@capitalpremium.net www.capitalpremium.net

• Industry leading Agency Revenue Programs

• Highest level of Agent/Client service available in the industry

• Local presence, multiple payment options, and online access

• COST makes it easy for YOU TO OWN your own Premium Finance Company

• COST does the set-up, COST runs the back room, YOU EARN ALL THE PROFIT

• Let COST’s 33 years’ experience put the PROFIT from YOUR premium financing IN YOUR POCKET!

Cypress Premium Funding, Inc.

28202 Cabot Rd., Ste 435, Laguna Niguel, CA 92677

Phone: (949) 487-0602, Fax: (949) 487-0640

Email: info@cypressfunding.com www.cypressfunding.com

• Competitive Rates and Terms

• Immediate Funding

• Cancellation Prevention Programs

Capitol Payment Plan

52 Corporate Circle, Ste. 208, Albany, NY 12203

Phone: (866) 639-1333, Fax: (518) 862-7522

BankDirect Capital Finance

150 N. Field Dr., Ste. 190, Lake Forest, IL 60045

Phone: (877) 226-5456

Email: info@bankdirectcapital.com www.bankdirectcapital.com

• Commercial premium finance solutions that offer agency revenue opportunities, multiple payment options for insureds and cancellation prevention.

• Effortless technology makes the process fast and efficient as well as puts the latest tools at your fingertips, such as e-signature, e-down payment and more.

• Our expert team takes a consultative approach to deliver a best-in-class partnership experience.

Brokers Financial Services

19500 Middlebelt Rd., Ste. 360 W Livonia, MI 48152

Phone: (248) 478-8723, Fax: (248) 478-8729

Email: nmorrison@brokfinsvc.com www.brokfinsvc.com

• Competitive flexible rates and payment plan options

• Fast and efficient payment to Brokers and Insurance companies

• 24/7 live phone customer service for our agents and clients

Email: sternj@cappay.com www.cappay.com

• Committed to helping insurance agents maintain their competitive edge through premium financing solutions since 1979

• Leading local experts to address the unique needs of the personal lines business

• State-of-the-art products and programs that maximize efficiency in quoting, leaving more time to focus on your customers

ClassicPlan Insurance Premium Financing

13750 Pipeline Ave., Chino, CA 91710

Phone: (800) 347-6481, Fax: (909) 628-5490

Email: info@classicplan.com www.classicplan.com

• Most lines of business accepted, including Cannabis

• Mobile App, credit card payments, ACH and more for insureds payment submission

• Extra services to help increase retention and market your agency

FIRST Insurance Funding Corp.

450 Skokie Blvd, Ste. 1000, Northbrook, IL 60062

Phone: (847) 572-4650

Email: jim.miller@firstinsurancefunding.com firstinsurancefunding.com

• Premium Finance – Simplified with our customizable online loan process that works wherever you and your insureds are

• Most complete payment options in the industry for your insureds including Amex, Visa, Mastercard, Discover or by bank account for down payments and installments

• Agency lending, 401K management, Deposit services, and Capital Leasing programs

• Training options for everyone in your agency

Premium Finance Directory

General Agents Acceptance Corporation

23441 S. Pointe Dr., Ste. 220, Laguna Hills, CA 92653

Phone: (949) 470-9674, Fax: (800) 568-5462

Email: james@mygaac.com www.mygaac.com

• Our Insurance Premium Finance Program increases retention by calling customers before cancelling & allowing them more time to pay.

• We offer competitive rates & exceptional customer service.

• You can quote online or send us the quote from the carrier & we will quote the finance agreement for you.

gotoPremiumFinance.com

6200 Canoga Ave., Ste. 400, Woodland Hills, CA 91367

Phone: (888) 875-4000 Ext. 2135, Fax: (818) 610-2066

Email: sales@gotopremiumfinance.com www.gotopremiumfinance.com

• A unique one of a kind paperless premium finance billing option that is also designed to help agents grow their insurance business and increase their income.

• Nationwide premium finance provider for agents, MGAs & insurance companies.

• Online quoting, online payment options, real time account status, online cancellation holds, customized notice delivery & more.

Insurance Finance Company, LLC P.O. Box 315, Des Moines, IA 50306-1315

Phone: (800) 247-4190, Fax: (515) 223-0226 Email: Brian@ifcorp.biz or banstoetter@ifcorp.biz www.ifcorp.biz

• Re-Engineering PREMIUM FINANCE from the Agent Up!

• Celebrating 50+ years in business

• Fanatical Service – Flexible rewards and agency incentives – Competitive terms.

Johnson & Johnson Preferred Financing, Inc.

200 Wingo Way, Ste. 200, Mt. Pleasant, SC 27464

Phone: (800) 868-5573, Fax: (843) 724-7085 Email: finance@jjpf.com www.jjpf.com

• Finance most lines of coverage both Commercial and Personal lines

• Online software for 24/7 access to quoting, account management and reporting

• Multiple funding options for Money in & Money out!

Liberty Premium Finance, Inc.

4 Centerpointe Dr., Ste. 300, La Palma, CA 90623

Phone: (800) 229-8793, Fax: (562) 356-0131 Email: sporter@libertypf.com www.libertypf.com

• Flexible monthly payment options for commercial insurance policies

• Quote, bind and archive your contracts with our easy-to-use online quoting center

• Pay by mail, phone, online or in person with credit card, check or check by fax

Mountain West Premium Finance 2535 Kettner Blvd., Ste. 3-A2, San Diego, CA 92101

Phone: (888) 280-0235, Fax: (619) 697-0326

Email: mike@financepremium.com www.financepremium.com

• ZERO Down - 100% Financing

• Auto-Renewal Premium Financing

• Form Your Own Premium Finance Company

Imperial PFS

1055 Broadway, 11th Fl, Kansas City, MO 64105

Phone: (800) 838-2350, Fax: (816) 627-0502

Email: marketing@ipfs.com www.ipfs.com

• The size and independence of Imperial PFS® provides the financial strength and flexibility to handle a wide range of accounts from large, complex deals to those that are smaller and more streamlined.

• As a nationally-recognized premium financing leader, Imperial PFS® is committed to developing technology resources and services to best meeting the needs of Agencies and their Insureds.

• Nationwide strength, local service – Imperial PFS® is powered by a network of more than 30 branches strategically located across the United States and in Puerto Rico.

Monarch Premium Resources, Inc.

28202 Cabot Rd., Ste 435, Laguna Niguel, CA 92677

Phone: (949) 487-0602, Fax: (949) 487-0640

Email: info@MonarchPremium.com www.monarchpremium.com

• Exclusive financing arrangements for brokers of Monarch E&S

• Interactive Web site for account viewing, reports and On-line payments

• Financing Commercial and Personal Lines Insurance Premiums

NCMIC Finance Corporation 14001 University Ave., Clive, IA 50325

Phone: 1-(800) 600-9250, Fax: 1-(800) 630-9250

Email: LLogan@ncmic.com www.nfcfinance.com

• Real relationships with people who care about you and your business.

• Immediate funding, because we know how important it is to maintain your revenue flow.

• Programs with low down payments tailored just for you – not one-size-fits-all solutions.

P1 Finance

280 Technology Pkwy, Ste. 100, Norcross, GA 30092

Phone: 1 (877) 395-6770, Fax: (404) 745-0737

Email: customerservice@P1Finance.com www.P1Finance.com

• NOW HIRING: Experienced professionals are needed in multiple departments to ensure we continue to provide industry-leading service as P1 continues to grow month over month

• TECHNOLOGY: Best in class, web-based digital technology for 24/7 access, iPad, iPhone and Android App, IVR, for 24/7 access for your customers account status and payments

• VALUE: Customizable and flexible payment options and pricing terms to maximize the profitability of your business

Premins Company

132 32nd St., Ste. 408, Brooklyn, NY 11232

Phone: (800) 599-3279, Fax: (718) 376-8330

Email: info@premins.com www.premins.com

• Commercial and personal financing for over 50 years

• Batched once-a-week cancellations with free/low fee payment options

• Get answers and quotes quickly with our fast and effective customer service on the phone and on our customized website

Premium Finance Brokerage, LLC

P.O. Box 623, Jarrettsville, MD 21084

Phone: (866) 381-6501, Fax: (866) 381-6502

Email: tlarsen@premiumfinancebrokerage.com www.premiumfinancebrokerage.com

• Guaranteed Lowest Interest Rates

• Access to several national premium finance companies through one point of contact

• Flexible payment options, cutting edge technology and a service pledge that’s put in writing

Premium Finance Consulting, LLC

Phone: (408) 800-3876

Email: info@premiumfinance.consulting www.premiumfinance.consulting

• Is your agency large enough for a profit sharing arrangement?

• Is creating your own premium finance company appropriate for you?

• We can assist you in finding the best premium finance relationship for your agency.

Prime Rate Premium Finance Corporation

2141 Enterprise Dr., Florence, SC 29501

Phone: (866) 669-0937, Fax: (800) 677-9850

Email: info@primeratepfc.com www.primeratepfc.com

• Financing commercial accounts nationwide

• User-friendly 24/7 Web-based access

• Exceptional customer service

SIUPREM, Inc.

P.O. Box 105611, Atlanta, GA 30348

Phone: (678) 498-4730, Fax: (678) 498-4747 Email: info@siuprem.com www.siuprem.com

• Independently owned, full service online premium finance company servicing independent agents since 1969.

• Industry leading technologies providing real-time data for online policy service by the insured or the agent.

• SIUPREM CARES. Each time a commercial policy is financed with SIUPREM $5 of the proceeds will be committed toward Breast Cancer Awareness and Research.

Stetson Insurance Funding, LLC 6450 Transit Road, Depew, NY 14043

Phone: (866) 856-1112

Email: sales@stetsonfunding.com www.stetsonfunding.com

• Stetson is a Ryan Specialty Group (RSG) company that provides financing for RT policies and to Independent Agents, nation wide.

• Competitive financing for all of your agency billed commercial lines business, including cannabis.

• Customized rates, terms, reporting and revenue programs to meet all of your agency’s needs.

• Experienced, versatile team available to facilitate all of your finance requests—after hours features including chat queues and automated phone systems.

• Our e-Complete offering allows your agency to effectively turn agency billed items into direct bill by eliminating your need to collect the down payment.

South Bay Acceptance Corp. 10751 Deerwood Park Blvd., Ste. 2000 Jacksonville, FL 32256

Phone: (800) 393-2012, Fax: (888) 328-6747 Email: contact@sbac-finance.com www.sbac-finance.com

• Flexible premium financing programs with multiple benefits for your agency and their insured’s!

• 24/7 Online Quoting access, account status verification, activate your own quotes immediately!

• Creative Producer compensation options ready to provide you additional income!

Southern Access Capital, LLC 2231 Arlington Ave. South, Birmingham, AL 35205

Phone: (800) 806-1244

Email: info@southernaccesscapital.com www.southernaccesscapital.com

• Experienced Professionals - Providing Great Service - Competitve Rates

• Licensed in Alabama, Mississippi, and Louisiana (Personal & Commercial Lines).

• No Premium Requirements - No Long Term Contracts - Easy Account Management

Stonemark

8501 Wade Blvd., Ste. 620, Frisco, TX 75034

Phone: (800) 955-0083

Email: service@stonemarkinc.com www.stonemarkinc.com

• Cannabis and Personal Lines Financing

• Online Payments & Account Status – make payments or review insureds’ accounts, including payment history, 24/7

• Online Quotes system gives agents the option of producing finance quotes and finance contracts anytime

Thrifty Financial Services, Inc.

1691 Main St., Springfield, MA 01103

Phone: (800) 919-0015, Fax: (800) 736-5177

Email: thriftyfin@aol.com www.thriftyfinancial.com

• The premier premium finance provider for Massachusetts insurance agents for over 25 years.

• Seamless quoting integration with SinglePoint rater from Boston Software - requiring zero duplicate data entry for the agent.

• Unmatched technology and services proven to boost the customer experience for both insureds and agents.

US Premium Finance

280 Technology Pkwy, Ste. 200 Norcross, GA 30092

Phone: 1 (866) 246-9691, Fax: 1 (866) 246-9692

Email: customerservice@uspremiumfinance.com www.USPremiumFinance.com

• SERVICE: Knowledgeable network of experts delivering the best customer experience in the industry

• TECHNOLOGY: User-friendly software with 24/7access to quoting and your customer database

• VALUE: Flexible terms and competitive rates to maximize the profitability of your business

Western Premium Finance, LLC 555 Eldorado Blvd. Ste 200, Broomfield, CO 80021

Phone: (303)-252-0020

Email: brigitte@westernpf.com www.westernpremiumfinance.com

• Flexible terms, competitive rates, customized programs for niche markets such as cannabis; instant quote capability through our cloud based platform

• Chartered and headquartered in Broomfield Colorado we are self-funded and currently licensed for commercial insureds in 23 states

• Premium Loyalty Program that will reward our partner agents and their producers with generous BENEFITS PACKAGES!

Idea Exchange: Technology

cause any of the components of the moat to deteriorate to the point of being useless? What will cause the firm’s moat to last more than one month, three months, one year, or longer?

Moats will dry up. The attributes of a moat will age, wither and die over time. The mortality of a moat depends on a host of factors including, but certainly not limited to:

• Emerging technologies and their applications

• Changing customer needs, expectations or demands

• Staff reductions

• Damage to the firm’s brand/reputation

• Labor shortages

industry-related comments):

Culture: The ability to create and maintain a shared sense that cascades throughout the firm from the boardroom to every functional department and support depart ment (i.e., infrastructure staff, cleaning staff, cafeteria staff) of the firm’s value-add to its target markets.

Scale: The ability to reach and retain the numbers of customers the firm requires to generate profitability shaped by the realities of the industry (e.g., hockey stick growth is an unreasonable request for scale in the P/C insurance industry).

Brand/Reputation: The ability to create and maintain a strong, positive mindshare in the marketplace.

Technology Applications: The ability to create, maintain and update the portfolio of applications from current and emerging technology to profitably get and keep current and future targeted customers.

Customer Focus: The ability to create and maintain the firm’s abilities to develop a laser focus on current and future targeted customers, but insurers should maintain claimant satisfaction according to the realities of the insurance industry.

Logistical Efficiency: The ability to create and maintain an efficient delivery system of the firm’s products and services to the firm’s current and future targeted customers regardless of the product or service being purchased and regardless of the customer’s location.

Cost (Low or High): The ability to establish

the prices of products and services that simultaneously adhere to regulatory requirements, meet (if not exceed) current and future targeted customer expecta tions, and generate profit for the firm.

Product Design: The ability to continually craft, inclusive of design considerations where applicable, products and services to meet, if not exceed, the needs the firm’s current and future targeted customers. Of course, insurers must always adhere to product or service regulatory require ments.

In-depth Industry Knowledge: The ability to continually build, maintain and update the firm’s knowledge of current and planned regulations, pathways to profitability, and market requirements and expectations of the specific industry lines of business it conducts commerce and of the larger industry the firm in which the firm participates.

In-house Talent: The ability to attract and keep the wide array of talented profession als the firm needs to get and keep current and future targeted customers.

Moat Mortality

“Guests, like fish, begin to smell after three days.” — Benjamin Franklin

Regardless of which attribute or com bination of attributes a firm uses to create its moat, a key question arises: What is the quality of the moat? That is, how fleeting is the defensibility of the moat? What might cause the moat to dry up? What might

• Changing economic policies (at local, state, federal, or international levels)

• External shocks (natural, man-made, acts of war) to supply chains

• Strength of new competition

Moat attributes will deteriorate. Examples of deterioration include special ized industry knowledge becoming known by competitors; technology applications copied by competitors; or the current technologies and associated applications your firm has implemented replaced by competitors deploying newer technologies that enable effective and/or efficient applications to what were your target customers.

The major ongoing challenge is for each insurance firm to continually determine the mortality of each of the components of the company’s moat.

Finally, people who know me know that I believe that technology and associated technology applications components of a moat will dry up more quickly than other moat components. If you’re a (re) insurer looking for a long-term competitive advantage for your insurance firm based on using new(er) technologies to protect your business model, I have a bridge to sell you.

Content influenced by and excerpted from Rabkin’s book, “From Stone Tablets to Satellites: The Continual Intimate but Awkward Relationship Between the Insurance Industry and Technology,” published on June 28, 2022, by Wells Media Group.

Idea Exchange: Ask the Insurance Recruiter

9 Talent Acquisition Goals for Insurance Organizations in 2023

Sourcing

is the number one problem most insurance organizations tell me they have with recruiting. While finding candidates is important, that’s like saying your company’s revenue will grow if you get more prospective clients. We all know there’s a lot more to the equation than cranking up the cold calls.

To achieve meet your 2023 hiring goals, I recommend using what works in sales and service for recruiting. Below are ways you might look at to help you run your business more successfully. It can also be applied to talent acquisition.

1. Create Efficiencies

How do you determine if your recruiting is efficient? Do you use data or feelings? Numbers are the only way to optimize your process. Data examples include:

• Number of openings and hires

• Average time open

• Candidate database growth

• New hire compensation

• Recruiting costs.

2. Expand Initiatives Enterprise-Wide

Is your company’s recruiting proactive or reactive? Reactive is common for most insurance organizations but not a good approach. Consistent, company-wide talent management starts with:

• Monthly discussions among executives about talent acquisition

• Collaboration between hiring managers to share information, successes and best practices

• Talent acquisition/HRs can become more consultative versus transactional.

3. Build Communication Cross Channels

When you elevate discussions about talent acquisition these benefits emerge:

• Hiring managers

feel more supported by HR and Operations

• The candidate experience improves

• Career opportunity engages increases.

4. Define and Refine Roles

By Mary Newgard

Did you know some of the largest independent agencies have their internal recruiters consistently working on 50-70 job requisitions? That volume is insane and unsustainable.

• Hire more internal recruiters to reduce workloads;

• Create specialists for each part of the process;

• Segment teams to manage workflow;

• Leverage technology (ATS and HRIS systems) to build a meaningful candidate database.

5. Process Consistency

The president of 400-person inde pendent insurance agency said, “We do such a great job hunting and dragging new business opportunities in the door, turning them into clients, onboarding and managing them. Why can’t we do that with employees?”

• Where does your process break down — sourcing or screening candidates, setting up interviews, candidate communication, offer prep and presentation, competing against counters or reneges during onboarding?

• Do hiring managers ask recruiters to work on openings that have no chance of being filled?

• Do internal recruiters have difficulty generating multiple/comparison candidates?

6. Feedback Drives Decisions

You know what your clients need, right? You know when they are ticked off about their insurance, correct? Well, do you know how candidates feel when they interview with you? Job seeker feedback is

just as valuable to your recruiting process.

1. Do applicants know all the steps of your hiring process?

2. Do you debrief with candidates after an interview?

3. What are your company reviews on Google, Indeed and Glassdoor?

7. Brand Differentiation

There are thousands of jobs posted online that look like yours. What makes your opportunity stand out? Marketing prominence is critical to recruiting success.

• Social media is a non-negotiable. If you don’t get it, care to get it or understand how to make it work in recruiting, hire someone who knows how to leverage it.

• Stop posting job descriptions. Start writing compelling job advertisements.

• “What is your value proposition as an employer of choice?” The lack of an answer or very inconsistent ones among hiring managers needs to be cleaned up.

8. Balancing Short and Long-Term Needs

1. Are your hiring projections for 2023 solely based on new hires?

2. Have you accounted for employees that will retire, go on performance plans, be fired or resign? This is the first step to

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Applied Underwriters

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Monarch E&S Insurance Services www.monarchexcess.com W3

Pacific Gateway Insurance Services www.pgiainsurance.com W1 Pathward www.pathward.com 15

Philadelphia Insurance Companies www.phly.com 9 Shelly, Middlebrooks & O'Leary www.shellyins.com S3 Surplus Line Association of California www.slacal.com 11 Tejas American General Agency www.taga1.com SC3, S1 Texas Mutual www.texasmutual.com SC1

ensure that you work ahead of the curve not just on current openings.

9. You Are Driven by a Will To Win

“There are more candidates out there,” is the biggest lie about talent acquisition. Hiring managers who buy into this lie will never adhere to a process. If they believe more candidates will materialize, then they never make timely hiring decisions and compete for available candidates.

Competing for top talent means:

• Every hiring manager adheres to a consistent hiring process.

November 7, 2022

Nassau Life and Annuity Company One American Row Hartford, CT 06103

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

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has request ed 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.

• A candidate database means you know the candidate before the job is open.

• You do not make excuses for or negotiate away time and resources for recruiting even when other business objectives seem more important.

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

November 7, 2022

Monroe Guaranty Insurance Company 9025 River Road, Suite 300 Indianapolis, IN 46240

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

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has request ed 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.

November 7, 2022

Standard Life and Casualty Insurance Company 4525 S. Wasatch Blvd., Suite 150 Salt Lake City, UT 84124

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

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has request ed 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.

November 7, 2022

American Century Life Insurance Company 1333 W McDermott Dr. #200 Allen, TX 75013

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

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has request ed 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.

Closing Quote

It’s Time for the Industry to Get on the Same Page About MFA

Carriers,

By Keith Savino

technology vendors and agencies across the industry have ramped up multi-factor authen tication (MFA) over the last sever al years, either for com pliance reasons or to enhance their overall cyber security measures beyond passwords and user IDs.

MFA authenticates system or website users through additional ID verification, such as by text message or email.

For agents, sorting through the various carrier and vendor MFA methods and requirements has been like navigating the Wild, Wild West. MFA has created many business challenges for agencies, including extra time, stress, and workflow delays and interruptions, according to a survey of agencies, carriers and insurance technology vendors performed by the Agent Council of Technology (ACT) earlier this year.

Part of the issue for agents has been the industry’s incon sistent rollout of MFA, with some companies and vendors requiring it and others planning to at some point. Nearly half of the agents responding to the ACT survey said their car rier partners required MFA to access agency-carrier portals, while 41% said their carriers did not. Eleven percent of respondents said they weren’t sure if MFA was required by their carriers.

There are huge inconsis tencies across the industry on what MFA methods are being used on various platforms. Fewer than half of agent respondents to the survey said their carrier partners are using similar MFA implementations.

Despite its challenges, what is clear is that MFA is not going away. Of the carriers that responded to the ACT survey, 60% said MFA is now part of all independent agent interactions. More than 20% of carriers that haven’t implemented MFA yet said they planned to do so this year.

Agents can play an important role in pushing the industry to improve MFA implementation

and employ a more stream lined process. Here’s how:

Educate. The goal of MFA is to strengthen cybersecurity to better protect company and cli ent data. Not only are breaches or ransomware attacks increas ing in frequency and sever ity, but state regulators are enacting and enforcing stricter data security requirements of financial services companies, including insurance companies and agencies.

MFA alone isn’t enough to stop cyberattacks from happening. But it is one of the most universally effective tools currently available. If applied correctly, the extra layer of security MFA provides can block more than 99.9% of account compromise attacks, according to Microsoft.

Agencies should ensure they are educated on the benefits of MFA and how to manage it effectively. This includes understanding how MFA will affect the agency’s onboarding and termination process for employees with access to carrier or vendor portals.

Communicate. One of the biggest frustrations agents have when it comes to carrier imple mentation of MFA is the lack of communication about timing and what method will be used. Some carriers are mindful of how MFA can disrupt business and provide plenty of notice, while others do not. Nearly 20% of agents who responded to the ACT MFA survey said they were given one week or less by their carriers to prepare for MFA implementation.

Carriers need to know this is

a huge disservice to agents, and it is up to agents to tell them. Agents must also talk with their carriers about MFA pain points, including timing and if partic ular systems or requirements affect the agent’s ability to do business with them.

Advocate. Agents should be aware of how the MFA process can be made easier, including federated ID management systems, and they should advocate for industry adoption.

A consistent identity management framework, like SignOn Once by ID Federation, enables participants to connect with less friction in the process. Agents access a single identity management solution, probably through their agency management system, and then have trusted access to every participating carrier or vendor through one login. This elim inates the need for multiple sign-on IDs and passwords and even multiple MFA processes.

Every Identity Provider is thoroughly vetted before being added to the system.

The industry needs to adopt common standards for federated identity management to solve current credential management challenges. It is time we put our heads together and work collaboratively to solve these cybersecurity challenges.

Savino is a member of the ID Federation board of directors, and is a principal and managing partner for PCF Insurance Services and Broadfield In surance Agency, where he specializes in cyber insurance. He can be reached at: keiths@broadfieldinsurance.com.

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