Workers’ Compensation
We distinguish our Workers’ Compensation coverage by providing value-added services before, during, and after a claim.
Upfront loss control measures
Responsive claims handling
Facilitation of quality medical care (when an accident does occur)
We’ve been successfully protecting our policyholders and their employees since 1983.
THE TENNESSEE INSUROR
Phone 615.385.1898
Toll Free: 1.800.264.1898
Email: marketing@insurors.org
Editor: Ron Travis
Publisher: MarketWise, Inc
INSURORS OFFICERS
President ..............................Kym Clevenger, CPCU, CIC, CAWC
IIABA National Director ........................John McInturff III, ARM
VP Region I, President-elect ......................................Bobby Sain
VP Region II .........................................Battle Bagley, III, CIC, CPA
VP Region III ................................................................Kevin Ownby
Treasurer ......................................................Richard Whitley, CIC
Secretary ................................................................Jamie Williams
Director, Region I ............................................Andrew Maddox
Director, Region I ............................................Pam Lofton-Wells
Director, Region I ........................................................... Cy Young
Director, Region II ................................. Matt Felgendreher, CIC
Director, Region II ......................................................... Chip Piper
Director, Region II .....................................Cameron Winterburn
Director, Region III ...................................................Josh Gibbons
Director, Region III .................................................... Tim Goss, CIC
Director, Region III .................................................. Stuart Oakes
Director, Young Agents ............Samantha Organek, CIC, CISR
Immediate Past President ................. Matt Swallows, CIC, CRM
Display advertising rates, deadlines and specifications may be obtained by writing to Insurors of Tennessee, 2500 21st Avenue South, Suite 200, Nashville, TN 37212, calling 615.385.1898, e-mailing marketing@insurors.org or online at www.insurors.org
Tennessee Insuror is provided to all Insurors of Tennessee members and associate members as a member service.
INSURORS OF TENNESSEE
2500 21st Avenue South, Suite 200 Nashville, TN 37212-0539
www.insurors.org
The 113th Tennessee General Assembly
We Present a Recap of the Session...
Tennessee's 2024 Legislative Session Recap
The 2024 legislative session in Tennessee concluded on April 25. It was another successful session for the Insurors of Tennessee’s efforts to protect the livelihoods of Tennessee’s independent insurance agencies and communities across the state that you serve. Although the legislature had not yet adjourned when the previous issue of the Tennessee Insuror went to print, we highlighted key insurance bills of interest that Insurors was engaged on throughout the session. Below is a general overview of legislation considered and debated this session, with a focus on the state’s $52 billion budget and issues impacting small business, healthcare, education, and other miscellaneous legislation of interest.
State Budget and Funding
Tennessee’s FY 2025 budget, enacted by the General Assembly, incorporates significant changes and new allocations aimed at addressing various state needs and priorities. The budget includes a notable $100 million deposit to the state's “rainy day” fund, which is $80 million more than initially proposed. This will elevate the state’s reserve funds to $2.2 billion by the end of FY 2025, providing a substantial financial cushion.
The budget also includes substantial new spending, totaling $209 million for various initiatives. Among the largest expenditures are $86 million for additional capital projects, including significant improvements to the I-24 industrial site and the UT Health Science Center's anatomy lab. Additionally, there are allocations for fire, rescue, and emergency management equipment, as well as economic development funds targeting nuclear development and film incentives.
Education funding is another priority in next year’s budget. Although the proposed $144 million for Education Freedom Scholarships remains unspent (the bill failed to pass), these funds were nonetheless retained in the base budget for potential future use (a strong signal that the governor and legislative leadership plan on renewing the effort next year). The budget also provides for recurring costs related to new laws expected to increase incarceration expenses and covers deployment costs for the Tennessee National Guard to the U.S. Southern border.
Overall, the enacted budget reflects Tennessee's priorities: bolster financial reserves while making targeted investments in infrastructure, emergency services, and economic development, with the goal of preparing the state for future fiscal stability and growth.
Small Business Issues
The 113th General Assembly concluded its 2024 session with significant reforms in tax, labor, and tort laws, alongside passing the $52B budget noted above. Many of these changes are set to positively impact small businesses across Tennessee.
In tax reforms, Governor Bill Lee led the overhaul of the franchise tax, eliminating the property measure and transitioning all businesses to a net worth measure. This reform will save 100,000 businesses approximately $400 million annually and allow for $1.5 billion in refunds for past overcollections. Additionally, the Senate advanced a constitutional amendment to ban a statewide property tax. The measure would have to pass with two-thirds majority in the next general assembly before going to the voters on the ballot in 2026.
Assembly Adjourned April 25, 2024
Labor reforms saw the alignment of the statute of limitations on unpaid wage claims with federal standards, reducing the period to three years. Clarifications were also made to the definition of "work" under the Fair Labor Standards Act, excluding minimal activities like going through security from compensation. Several proposals that would have increased employer liabilities were defeated.
In tort reform, new legislation protects businesses from lawsuits related to the use of third-party technology (i.e. “cookies”) on their websites. This measure aims to prevent unanticipated litigation for violations of Tennessee's 1994 wiretapping statute, ensuring businesses are not unduly penalized for using common online tools. At least one Tennessee business was facing a lawsuit claiming the business violated the state’s wiretapping statute for use of industry standard website “cookies.” The new law clarifies that such is not a violation of the wiretapping statute.
These reforms collectively reduce regulatory and financial burdens on small businesses, marking the 2024 session as a pivotal period for Tennessee's business community.
Education Initiatives
Governor Bill Lee's top priority, expanding educational choice through “Education Freedom Scholarships” to allow families statewide to utilize state funding for private school tuition, stalled after the Republican supermajority in both chambers failed to agree on the details (including cost). To opponents, the legislation was “school vouchers” by another name. Despite this setback, Lee and Republican leaders have pledged to continue working on the plan next year, reflected in the fact that the FY25 budget included $144 million earmarked for such a program.
Firearms/Teacher Concealed Carry
A controversial bill allowing certain school employees to carry concealed weapons on school grounds was passed and signed by Governor Lee. Local districts have the option to opt in or out of this policy. Notably, many school systems have already announced their intent not to participate in the program.
• Since 2013, current law has allowed teachers and staff with prior law enforcement experience to carry concealed firearms on school grounds. This includes former police officers and sheriff deputies under certain conditions. Pub. Ch. 801 extends this right to all school staff, irrespective of their law enforcement background, provided they meet several requirements.
• Under Pub. Ch. 801, any school faculty or staff wishing to carry a concealed handgun must complete at least 40 hours of school-specific policing training approved by the Peace Officer Standards and Training (POST) commission annually. This mirrors the current requirement for those with law enforcement experience. The cost of training, handguns, and ammunition must be borne by the individual, not the school or Local Education Agency (LEA).
• Additionally, staff must be certified by a licensed Tennessee healthcare provider in the psychiatric or psychological field as being free from impairments per the Diagnostic and Statistical Manual of Mental Disorders.
• The Tennessee Bureau of Investigation (TBI) will conduct criminal background checks and fingerprint processing.
• Staff must also maintain a valid state handgun carry permit and receive written authorization from the school's director, principal, and chief law enforcement officer. If any of these three parties deny authorization, the staff member cannot legally carry a concealed handgun on school grounds.
Healthcare Reforms
Scope of Practice Adjustments: Legislation was passed to expand the roles of nurse practitioners and physician assistants, allowing them to provide a broader range of services without direct physician oversight.
Certificate of Need (CON) Reform: A bill that aims to streamline the process for healthcare facilities to expand or establish new services was passed.
Medical Malpractice Reform: Changes were made to the process of filing and adjudicating medical malpractice claims, aiming to reduce frivolous lawsuits and lower healthcare costs.
Abortion Travel Restrictions: A bill establishes a criminal offense for adults to help minors seek an out-of-state abortion without a parent's approval.
Miscellaneous Legislation
Travel for Gender-Affirming Care: A bill was approved that imposes civil penalties on adults who help minors cross state
lines to receive gender-affirming care without parental consent. This is the first law of its kind in the nation.
Death Penalty Expansion: Legislation was passed to allow the death penalty in certain child rape cases, despite bipartisan concerns about its constitutionality.
HOW RELIABLE IS YOUR WORKERS’ COMPENSATION CARRIER?
East Bank Authority: A new Metro Nashville agency was established to oversee development on the East Bank.
Tennessee State University Board: In response to ongoing criticism of the TSU administration, legislation was passed to replace the entire board of the historically Black college. Governor Lee quickly appointed new board members, who held their first meeting shortly after.
Artificial Intelligence in Music: A Lee administration priority, known as the ELVIS Act, was passed to protect musicians from unauthorized AI-generated impersonations, ensuring that the legacy of artists like Elvis Presley is preserved.
Anti-Foreign Influence Legislation: Several bills aimed at reducing foreign influence in Tennessee's manufacturing, agriculture, real property, and higher education sectors were introduced. A bill that prohibits foreign entities from acquiring agricultural land in Tennessee, requiring any existing interests to be divested within two years if found in violation. This bill passed both houses despite concerns about potential indirect fiscal impacts. A bill that sought to deny tax credits and economic incentives to companies from certain
foreign countries and a bill to require agents of foreign principals from specified countries to register with the state and provide detailed business statement both failed due to lack of funding.
Looking Ahead
While the session saw many successes, several proposals did not make it through. Notable among these were artificial intelligence and cybersecurity, healthcare reforms, and the expansion of school choice programs. These issues are expected to be revisited in the next legislative session, as they remain priorities for the governor and leadership in the legislature.
Help Us Help You!
There’s no better time to help make sure InsurPacTN has the resources it needs to support candidates that support independent agents. Doing so is easy: just visit https://www.insurors.org/donate-to-insurpactn/. Of course, please do not hesitate to reach out to me or any of the staff at Insurors with questions. For those that have already contributed, we greatly appreciate your support! u
BY Trey Moore, Government and Legal Consultant for Insurors
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Save the Date - October 5-8, 2024
Each fall we convene to acknowledge the many successes in the independent insurance industry in Tennessee. This 'crown jewel' of our events features many enjoyable activities and engagements within our association. We strive to host a quality trade show for our carriers and vendors to exhibit their new products to our agency members. Along with our trade show, we host speaker sessions, free time activities, tours, CE opportunities, social hours, football parties, live music, and our longstanding association breakfast where we recognize the agents and company representatives who are making tremendous impacts with the Insurors of Tennessee!
Scan the QR code above... For more information Register as an Attendee Exhibit Booth Registration Become a Sponsor
Our host, The JW Marriott, is located at 201 8th Ave South, in Nashville. Reservations opened on June 12 and will close on September 13. Register early to reserve your spot. Find a preliminary schedule of events on page 13. u
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Scan for more details and to register
Schedule - All times Central - details subject to change
SATURDAY, October 5
4:00pm - 5:30pm - Young Agents Committee Meeting (by invitation)
6:00pm - 8:00pm - Football Party
Location: Bristol Room Dress: Casual
SUNDAY, October 6th
8:00am - 11:00am - Board of Directors Meeting
Location: Bristol Room
10:00am - 1:00pm - Exhibitor Setup Time
Location: Griffin Ballroom
11:30am - 12:30pm - Past Presidents Luncheon (by invitation)
Location: Brentwood Room Dress: Business Casual
12:00pm - 5:00pm - Onsite Registration Table Open
Location: Griffin Pre-function
1:00pm - 5:00pm - Trade Show and Reception
Location: Griffin Ballroom Dress: Business Casual
5:00pm - 7:00pm - Exhibitor Breakdown Time
Location: Griffin Ballroom
7:00pm - 10:00pm - Opening Night Party
Location: The Valentine on Lower Broadway Dress: Casual
MONDAY, October 7
7:30am - 9:30am - Association Breakfast & Annual Meeting
Location: Griffin Ballroom Dress: Business Casual
8:00am - 12:00pm - Onsite Registration Table Open
Location: Griffin Pre-function
9:45am - 10:45am - Breakout Session #1: Ethics CE filed
Location: Griffin Ballroom Dress: Business Casual
11:00am - 12:00pm - WINS Panel Breakout Session
Location: Griffin Ballroom Dress: Business Casual
11:00am - 12:00pm - Breakout Session #2: Beyond the Cyber Policy filed
Location: Belle Meade Room Dress: Business Casual
12:00pm - 1:15pm - All Attendee Luncheon
Location: Griffin Ballroom Dress: Business Casual
Exhibitor Door Prizes!
1:30pm - 3:30pm - Martin & Zerfoss + Chubb Special Event CE with Songwriter Show
Location: Ole Red on Lower Broadway Dress: Casual Registration + Additional fee required - limited seats available!
1:30pm - 3:30pm - Soup-er Bowl with the Young Agents
Location: Griffin Ballroom Dress: Casual All attendees welcome to join!
3:30pm - 5:00pm - Free Time
5:00pm - 6:00pm - InsurPACTN Donor Reception (by invitation)
6:00pm - Company Night Dinner on your own
9:00pm - 11:00pm - Young Agents Night Out
Location: TBD Dress: Casual
TUESDAY, October 8
8:00am - 10:00am - Member Appreciation Breakfast
Location: Griffin Ballroom Dress: Business Casual
10:00am - 11:00am - Board Member Portraits & Group Photo
Location: Griffin Ballroom Dress: Business Professional
IT'S TIME
1. Register to attend and make hotel reservation
2. Register for an exhibit booth at the Trade Show and Member Reception
3. Become an Insurfest Sponsor
More than an account.
A relationship.
For more than 60 years, we’ve built a business based on basic principles: handle claims quickly and fairly, provide superior service and put people first. At FCCI, we help businesses thrive, manage risks and face the future with confidence.
InsurTech Insights Conference: AI Meets IAs
BY Dave Evans, Senior Associate, Aartrijk
At the June 2024 Insurtech Insights conference in New York City, more than 5,000 attendees representing every facet of the insurance industry came together to present, demonstrate and discuss the most recent innovations. This year's conference focused on generative artificial intelligence (AI) and the industry's accelerated acceptance of AI to extract data to deliver better outcomes in underwriting, claims, service and sales.
The arrival of ChatGPT in late 2022 meant that generative AI could be harnessed by companies to automate administrative tasks, assist with creative ideas and code software. At Insurtech Insights, it was evident from the panels and presenters that the insurance industry is indeed embracing AI.
In the opening general session, Casey Kempton, president of personal lines for Nationwide, discussed how technology is being applied to better adjudicate claims and to provide agents with tools to serve clients.
However, Kempton noted that consumers can be distrustful, pointing out the use of drones to inspect roofs and telematics to illustrate how some people feel this technology is an intrusion on their privacy. “Agents can help in dispelling those notions by educating their customers to the benefits gained ... speed, accuracy and lowering the cost of insurance."
Another session, “Brokers and Carriers in the Digital Age," highlighted the potential uses of technology within existing realities. An overriding theme that both carriers and managing general agents (MGAs) face is “whether to build or buy" stated Eric Ayala, managing director of the Americas at Novidea. This issue dovetails with the challenge carriers face with con-
solidating legacy systems, an issue that independent agents are well aware of as carriers grapple to upgrade their systems seamlessly.
Josh Curry, executive vice president at BMS Re, pointed out that the buyer personas that can be gleaned from data will increasingly inform the approach of the agent. He also indicated that automation is being adopted in the small commercial insurance space, which will aid the distribution of those products. Curry mentioned that an opportunity for synergy can be gained by using AI to match the customer's needs with the appetite of the carrier.
The session that followed, “Carriers and Agents: Stronger Alliances through Digital Innovation," continued the theme of harnessing technology to better serve the agent and customer. Sivan Iram, co-founder and CEO of Flow, said that the starting point should be the question: “What is the pain point that you are trying to solve?"
The answer should drive how to employ technology to get the job done. “An important consideration is recognizing what needs to be changed and what doesn't need to be," Iram added, discussing how agents tend to hate portals due to the need for multiple passwords and, as a result, agents still prefer conducting business over email.
Jack Ramsey, vice president, agent channel, at Next Insurance, commented during the session that he believes the smaller the commercial policy premium, the more customers need to be able to generate instant quotes because the operating margins are too slim for agents to expend time on servicing tasks.
He used the example of permitting customers to generate certificates of insurance as an efficient use of technology that aids the agent.
Adam Chadroff, principal at Equal Ventures, opined that while at first agents were fearful of digital innovation, they are now not only embracing it but also asking for it. Agents are now more focused not just on the service aspect but their entire customer experience journey—from initial contact to quoting, binding, onboarding, and facilitating customer self-service.
An overarching theme throughout the conference was that the customer experience in the insurance industry has historically lagged behind other industries. Now, with the ever-increasing capabilities of large language models (LLMs), the gap is closing. This advancement is not just reserved for the largest carriers and brokers, as evidenced by Jimmy Padia, founder of Floatbot, during his presentation on how AI is breaking new ground to help carriers and agents.
Padia highlighted how AI-powered chatbots and voicebots assist with claims submissions, starting with the first notice of loss. Customers call to report a claim 95% of the time, he shared. Using Floatbot's 24/7 “digital adjuster," the call is answered by tapping into the carrier's data so the AI voicebot can have a meaningful conversation with the insured. Remarkedly, the conversation is not stilted. The result is that the adjuster's time involvement is reduced by an average of 25%.
It's important to note that AI agents perform sentiment analysis to gauge whether the customer is feeling satisfied with the interaction. Since Floatbot employs a “human-in-the-loop" approach and a person can jump into the call if needed.
AI-powered voicebots can also serve the role of a customer service representative for insurance agencies. During Padia's demonstration, he used the example of a customer calling the agency because they are purchasing a car. “Lexi" the AI agent can tap into the customer's policy data so that coverage can be added. The example customer did not know how to access the vehicle identification number (VIN), and Lexi provided four ways for the consumer to locate it. The conversation sounded very much like a human interaction.
The takeaway from this year's Insurtech Insights conference is that innovation is coming fast, creating efficiencies throughout the entire insurance ecosystem and independent agents can harness it all.
Next year's Insurtech Insights conference is June 4-5, 2025, in New York City. It will provide a telling window into how industry stakeholders are adapting technology—and AI in particular—to produce efficiencies that could not be conceived of just a few years ago.
Insuror of Tennessee magazine readers can use discount code BIGI30 to receive 30% off next year's event. Early-bird registration is now open. u
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• Leverage Higginbotham’s consistent 20% compound annual growth rate
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Meet Pigg Insurance Agency, Hendersonville Gary Pigg, Principal
In our continuing series on small town market agencies, we are happy to introduce you to the Pigg Agency located in Hendersonville, Tennessee. For those of you who are not familiar with the area, Hendersonville is in Sumner County just outside of Nashville, north and east of the city. The area was first settled in 1784. The town was named after William Henderson, who was the first postmaster of the community, and was a way stop on Gallatin Pike between Nashville and the county seat of Gallatin in the late 1700s and 1800s.
Today, Hendersonville has a population of around 61,753 based on the 2020 census. The city is located on the shores of Old Hickory Lake and offers many parks and recreation opportunities to its residents in addition to a wealth of shopping and dining options. Most of its residents live in Hendersonville and work in Nashville. Hendersonville is best known as the home of Johnny Cash, where he and June Carter Cash lived on the lake for years until his death. Many other notable celebrities and professional sports figures call the city home today.
The agency is owned and managed by Gary Pigg who has deep roots in the community and extensive experience in the insurance business. Today, the agency primarily offers property and casualty insurance including personal and commercial lines to customers across the region. They represent America’s leading insurance companies offering a broad array of insurance products. In addition, the agency sells life and health insurance products.
As a result of Gary’s interest in classic cars and the classic car community, he participates in several classic car associations and groups which organically led to the development of a classic car spe -
cialty practice within the agency. In fact, through Gary’s work and relationships in this segment, the agency is consistently one of Hagerty Insurance Company’s top writers of classic car insurance products in the state of Tennessee.
Reflecting Gary’s interest in classic cars, part of the agency office is creatively modeled after the inside of a retro Texaco Gas station from an earlier era. The agency also owns a nicely restored yellow 1936 Ford Panel truck that Gary utilizes as a promotional vehicle at classic car and community events in the area. To compliment the truck and the brand, Gary also has a large yellow pig, color coordinated with the panel truck, mounted on a trailer that can be pulled behind the vintage truck to attract attention and help folks remember the name of the agency. Gary is clearly a creative marketer!
Gary is a graduate of Hendersonville High School and attended Middle Tennessee State University in Murfreesboro. While he started going to college to study to become a pharmacist, after three years he altered course and entered the business world.
One of Gary’s first jobs out of college was working for the recently opened Opryland, U.S.A. in the operations department, first as ride operator and then advancing to an operations manager. Working for Opryland U.S.A. at the time was enjoyable, however it did not pay well. Gary left Opryland and accepted a job with J.C. Penny, working there until he was offered a position selling life insurance with Harvey Gardner & Associates in 1980. This started Gary’s journey in the world of insurance.
Through the 1980s and 1990s, Gary was a producer, partner, or principal in several agencies in the Nashville area. In 2000, he formed the Pigg Insurance Agency where he was the sole principal in the business. For a brief time, his wife Mary also operated an agency to meet strategic business needs. That agency was eventually merged into the current Pigg Insurance Agency.
Gary’s wife, Mary, was an integral part of the agency’s success, first encouraging Gary to start his own agency and suggesting that he purchase a building along the way to house the agency. In addition to being the agency’s bookkeeper, Gary describes Mary as the firm’s cheerleader and motivator, spurring the business forward in an ever-changing marketplace.
Through the years, six of Gary’s family members worked in the agency. Today, two family members, Michelle and Reagan, continue to work in the agency, contributing to the ongoing success of the agency by meeting the insurance needs of their clients.
If you’re ever visiting or driving through Hendersonville look for a gentleman driving a 1951 Ford truck. The truck was a birthday present from his wife. You may also spy Gary in his yellow 1936 panel van. Be sure to give Gary a nod and wave as is a Tennessee tradition. u
As a mutual company, we are owned by our policyholders. We focus our time, attention, and resources on delivering superior financial strength and stability, a comprehensive product portfolio, and most of all, on doing what’s right for policyholders. To us, policyholders are much more than insurance consumers. And because of that, all of our business decisions are made with a policyholder-first focus.
For more information about our products, please contact one of our territory managers at 615-889-2740.
Brent Potts ext 7514
Jane Kinard ext 7518
Andy Wilder ext 7545
From Your President
Kym Clevenger
presented by
“It's hard to believe we are already at the half-way point of 2024.”
I hope you are all enjoying your Summer and finding some time to relax and unwind. Even though our business can be challenging and even stressful at times, it is important to decompress, get regular exercise, and take time out of your busy schedule to take care of yourself. Your health and well-being are key to being able to excel in your career, be at your best for your family and to simply enjoy life. With the summer heat, be sure to stay hydrated since dehydration can sneak up on you quickly. As many of you know, earlier in my life I was a nurse who worked in acute care settings. So, once in awhile my inner nurse just comes out. Thank you for indulging me and please do take care of yourself.
It is hard to believe we are already at the half-way point of 2024. I hope business is going well for your agency or organization. I know we continue to encounter insurance market turbulence by varying degrees depending on the line of business and location. In Tennessee, while we have some challenges, we are truly fortunate not to be dealing with the significant issues insurance agencies
are encountering in other states such as Florida, California and others with significant exposure to hurricanes or wildfires. As many of you are aware, dramatic increases in pricing and the availability of insurance in those states are causing significant issues. If you write business in those states, you know.
While we do not have direct exposure to hurricanes or major wildfires in our state, we are encountering significant “rogue rain events” where localized areas in the state of Tennessee can get 10 to 12 inches of rain in under 24 hours. This causes severe localized flash flooding and, in some cases, systemic river flooding. What was once a rare weather anomaly is now becoming the norm. Even areas that are not in official flood plains can and do become victims of significant flooding. In fact, over 25% of flood claims filed across the nation come from areas that are not on official FEMA Flood maps. The topography of hills and valleys in Tennessee and the many rivers, creeks and lakes we are blessed with in normal circumstances can cause severe flooding in extreme rain events. In cities
and major metropolitan areas, development, over development, and inadequate storm water systems contribute to the flood issue in our state.
All this to say, as professional independent insurance agencies we need to make sure we talk with our insureds about the fact that their homeowner policy excludes claims from rising water or floods and document the conversation. It is an opportunity to educate our clients about the exposure to flooding they may not know they have and how flood insurance can help protect them in the unfortunate event their home floods.
If you need more information about flood insurance, you can consult with Stephen Holmes at the Insurors Tennessee office at sholmes@insurors.org or 615.515.2609. If you need a market for a Flood Insurance Program, the Big “I” offers a product through Selective Insurance. Selective Insurance has been a National Flood Insurance Program (NFIP) Write-Your-Own company (WYO) since 1984 has been the Big "I" Flood program partner for the primary NFIP flood policy since September 2001. The Insurors of Tennessee and the Big “I” is here to assist you with information and solutions.
From Your President- Continued
So far this Spring and Summer, we have had great turnout at the various Young Agent and WINS events we have offered across the state. Both organizations are growing and becoming more effective in defining their respective missions and being able to support their constituencies as they go forward. I encourage them to keep up the good work!
Since 2024 is an election year, we need to be able to support those candidates in Tennessee who are willing to hear and consider the issues we consider to be important for our business and for insurance consumers in our state. If you have not yet contributed to InsurPacTN or InsurPac at the national level, please consider a contribution now. You can do so by visiting the Insurors of Tennessee website at www.insurors.org/ donate-to-insurpactn/ or scan the QR code for a direct link. We appreciate anything you can offer to strengthen the financial resources available to both PACs.
The 131st Insurors of Tennessee convention is quickly approaching. The Insurors board and staff have been busy planning and putting in place a great event once again for this year on October 5-8, at the beautiful J.W. Marriott Hotel &
Conference Center in downtown Nashville. If you have not already marked your calendar to attend, please consider doing so now. Registration is now open for attendees, to become a sponsor, to be an exhibitor or any combination of the three at www.insurors.org/annual-convention or scan the QR code for a direct link.
I hope to see you in Nashville this Fall!
Finally, as a longtime resident of Knoxville, a graduate of UT, and an avid fan of the University of Tennessee Volunteers, I want to congratulate the Vols baseball team on winning the 2024 College World Series held in Omaha. Coach Tony Vitello, the world-class players, and exceptional baseball staff brought home a national championship for the first time in history. It is no small feat, to achieve such a victory against fierce competition in the SEC tournament all the way through the regionals, the super regionals ultimately culminating in success in Omaha. I am proud of our head baseball coach, the coaching staff and young men who represented our university, our city, and our state so well. This was truly a historic moment in Tennessee athletics! u
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From Your CEO
Ron Travis presented by
Summer Breezes, Good Times, and Baseball!
I hope you all are enjoying your summer and doing well. It is a time of vacations, picnics, boating on the lake, watching baseball, and good times spent with family and friends. As I mention baseball, we are extremely proud of the University of Tennessee Volunteers baseball team for winning the College Baseball World Series just held in Omaha, Nebraska. Running the gauntlet through the SEC tournament, the regionals, super regionals, and the finals of the World Series required great skill, grit, and an absolute “no quit” attitude from the players and the coaches to claim victory. Theirs is a metaphor for what it takes to be successful in our personal lives and in our business careers. I know all of you Vol fans and Tennesseans in general are excited with the success of the program winning the College World Series for the first time in school history. Congratulations to Coach Tony Vitello, the coaching staff, the players, and the entire UT baseball program!
It is hard to believe we are already at the half-way point of 2024. Working together, your association has accomplished quite a lot already this year across many initiatives. As you will note from the article written by our Government Affairs Consultant Trey Moore, there were several legislative measures introduced in the Tennessee General Assembly that warranted our attention. Did you know that during the 2024 session of the Tennessee General Assembly, lawmakers introduced almost 3,000 bills for consideration. This
is not atypical for most legislative sessions these days. While many of those bills were not insurance related or did not tangentially impact upon our industry, they still require review and attention. We simply must ensure the interests of this association and our members are protected. It is important to note that many of these bills are not passed for one reason or another. Some are deferred for further study in committee at a future date. On behalf of the Insurors board, I want to personally thank Trey Moore for his advocacy work and the representation he helps provide at the Tennessee General Assembly.
In Washington D.C., our legislative affairs team at the Big “I” office constantly stands watch evaluating legislative and executive measures moving through the nation’s capital. Our own leadership and legislative affairs committee is very much involved in advocacy efforts in D.C. in support of the Washington office. As I am sure you recall from our earlier communications this year, we had a large contingency of members who travelled to Washington for the Spring Conference to communicate about legislative priorities and to meet with members of the Tennessee delegation. This is always time well spent to help shape legislation in Congress and executive orders that may emanate from the White House.
So far this Spring and Summer, we have had Young Agents events across the state to create opportunities to gather for fellowship, to learn, and to build the relationships that will propel their careers and this association forward in the future. With the leadership and guidance provided by Jake Smith and Kyra Garrison, the Young Agents are on the move as an organization and rapidly evolving to become an even more important part of
this association. These folks are quite literally the future of your agencies and this association, so we ask that agency principals continue to encourage the younger members of your staff to get involved with the Young Agents of Tennessee.
Another topic I want to briefly address is that of recruitment. We need to be sure that as members across the state of Tennessee, we are reaching out to insurance agencies, insurance carriers and others in our industry who are not currently members. While there have been agency consolidations over the past few years, there have also been agency formations as well. I also know, we do not count every agency or company operating in Tennessee as members. I have a small ask. If you know of an insurance agency or organization in your area that is not a member, please reach out to them and invite them to join our association. You can refer any potential candidates to Jake Smith or Kyra Garrison so they can make contact with the candidates to answer questions, provide information or sign them up for membership. I appreciate your help in growing our association.
Finally, the Insurors of Tennessee annual conference is just a few months away on October 5-8, 2024, at the J.W. Marriott in Nashville. The Insurors staff has been busy making plans and arrangements to deliver a truly informative and enjoyable conference this Fall. We will be providing you with greater details about the event in the coming weeks and months. You can visit the Insurors of Tennessee website at www.insurors.org/annual-convention to register as an attendee, become a sponsor, an exhibitor or any combination of the three you will be participating as in 2024. We are looking forward to seeing you there in just a few months! u
Tennessee Young Agents '24 Future Leaders Spotlight
presented by
Sopheary Le • Senior Territory Manager, Liberty Mutual Insurance Company
In this issue of the Future Leader Spotlight, we are pleased to present Sopheary Le who is a Senior Territory Manager for Liberty Mutual Insurance Company. Specifically, Sopheary is responsible for working with independent insurance agencies in the Memphis area, West Tennessee, and Northern Mississippi. She has been employed with Liberty Mutual for almost three years now. As a Senior Territory Manager, she is responsible for building and maintaining relationships with agency principals and staff, assisting agencies with placing commercial accounts with Liberty Mutual, helping them to reach their goals, and acting as a liaison between the agencies and the company. As most people in the insurance industry know, company Territory Managers or Field Representatives are critical in creating mutual success for agencies and insurance companies.
Prior to her employment with Liberty Mutual, Sopheary was employed by a couple of Memphis area insurance organizations for several years where she learned about the insurance industry from the ground up. Through these organizations she gained valuable experience and knowledge on the way to her present position.
Sopheary is a graduate of the University of Memphis where she earned a Bachelor of Business Administration degree in Hospitality and Resort Management. She also did additional post graduate work earning a Master’s of Business Administration degree and a Master’s of Science degree in Finance from Webster University. Webster University specializes in the delivery of high-quality online education programs in addition to curriculum offered through its physical campus located in St. Louis, Missouri. Clearly, in addition to her insurance industry experience, Sopheary has the business knowledge and critical thinking skills to power success in the rapidly evolving world of insurance.
As we talked about any challenges she faces as a Senior Territory Manager, she immediately talked about the “hard mar-
ket” and how difficult it is to not always be able to help her agency partners with pricing or underwriting requirements in the current market conditions. She understands the business reasons and does her best to explain decisions to her agency partners. This is a challenge echoed across the industry and is not unique to any one insurance company or the experience of any specific agency. Insurance companies are adjusting to frequency and severity trends to reflect the exposure they are experiencing. Nevertheless, depending on the line of business and location, the challenges are real.
When asked what she enjoys the most about her job, she enjoys building and keeping relationships with the great people she works with in the agencies in her territory. She appreciates their commitment to their clients, their communities, and their professionalism. Mostly, she enjoys the wonderful people she gets to work with each day in the agencies, at Liberty Mutual and across the industry.
Sopheary serves as a Company Liaison on the Young Agents Committee of the Insurors of Tennessee. When asked about her experience on the Young Agents Committee, she was enthusiastic describing the benefits of being part of the organization and having the opportunity to meet with young insurance professionals from across the state. As she describes, “It is very enlightening and informative to hear about the challenges and opportunities the future leaders of our industry encounter.” She also appreciates the opportunity to share her insights from the insurance company perspective with the group to help them navigate the relationship between insurance agencies and insurance companies. Together the Young Agents are working together to improve and enhance our business. In the process, they are also gaining valuable exposure as to what it takes to lead an organization and be part of a board of directors.
When asked about her thoughts relative to the Insurors of Tennessee as an association, Sopheary was very complimentary explaining the value she sees the association bring to insurance agencies, and more specifically agencies that may
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not have the internal resources or capabilities to meet the demands of a rapidly changing insurance marketplace. She also appreciates how the association brings insurance companies, insurance services organizations and agencies together to their mutual benefit. She also sees the education and professional development opportunities the association provides as a key to the ongoing success of our industry now and into the future.
Sopheary is a lifelong resident of Memphis where she attended elementary school, high school, played soccer and grew up enjoying the Memphis community. As previously mentioned, she also attended and graduated from the University of Memphis. In short, Sopheary’s roots run deep in the Memphis community.
Her family immigrated from Cambodia with the help of Catholic Charities in the 1980s escaping the exceedingly difficult years of Khmer Rouge rule in that country. She is a first-generation American citizen and by any measure has overcome challenges and obstacles to be highly successful. Sopheary’s story and that of her family is one we all celebrate as Americans.
Sopheary has a ten-year-old son Derek who is at the center of her world. She enjoys spending time with him doing various activities together including taking him to soccer practice and watching him play in matches. She is always encouraging and supporting Derek as a student and is more than pleased that he is doing so well in school. Sopheary is proud of the young man he is becoming.
When Sopheary has time to relax and unwind, she enjoys a wide range of activities including recreational soccer, pickle ball, and scuba diving. She is a certified scuba diver and is looking forward to her first opportunity to go diving in ocean waters soon. She said she enjoys changing up her hobbies and recreational activities from time to time to gain new experiences.
Sopheary is a valued member of the Young Agents, the Insurors of Tennessee, and our industry. This is a young woman on the move with a very bright future. We appreciate Sopheary for taking the time out of her busy schedule to talk with us for the development of the article. u
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Most Americans Do Not Fully Understand Their Insurance Coverage
The Trusted Choice® survey revealed that while most U.S. insurance consumers don’t fully understand the policies they have purchased, 86% believe they do.
National Insurance Awareness Day was June 28. Trusted Choice® surveyed consumers about their insurance acumen. Results revealed most Americans do not fully understand the insurance coverages they have purchased, yet 86% believe they do.
"Because insurance protects people's most important assets, it's crucial that policyholders understand their coverage. But unfortunately, our survey shows there is a considerable insurance knowledge gap among consumers," said Charles Symington, Big "I" president and CEO. “Independent insurance agents can bridge that gap by serving as a resource on coverage expectations versus realities, especially in this difficult insurance market where many people need more guidance."
The national survey of 400 consumers who have home, auto, pet, jewelry or personal umbrella insurance revealed some key coverage misconceptions:
1) Flood damage: 56% of Americans are unaware that a standard homeowners policy does not cover flood damage.
2) Home renovations: 70% are unaware that a standard homeowners policy does not cover materials or fixtures that are installed during renovations.
3) Home inventory: 46% do not have or are unsure if they have a home inventory of major household items in case they need to file a claim.
4) Business use of vehicle: 55% are unaware that a standard auto policy does not cover business use of the vehicle.
5) Items stolen from vehicle: 44% incorrectly believe that personal items stolen from their car are covered by a standard auto insurance policy, though it is in fact a standard home or renters insurance policy that typically covers such theft.
6) Parking tickets: 57% are unaware that a parking ticket, in general, won't affect a driver's auto insurance premiums.
The results demonstrate the critical need for independent agents to help consumers navigate the various nuances of the insurance market and ensure consumers purchase the coverage they require.
“Insurance coverage can be confusing. Consumers often think they have a strong grasp on understanding their policies, but oftentimes they don't. An independent agent is best equipped to walk consumers through the entire process— from shopping for coverage to purchasing a plan and filing a claim," said Kevin Brandt, executive director of Trusted Choice. “With their unbiased guidance and personalized approach, they empower individuals to navigate policies with clarity and confidence, ensuring they truly understand their coverage and make informed decisions."
BY Olivia Overman, IA Content Editor
On Vehicle Automation—Federal Regulators Have Some Catching Up To Do
Shopping for a new car? If it’s been a while since you’ve set foot in a dealership, you may feel as if you’ve stepped into the future. Many models on dealer lots today promise to relieve you of much of the drudgery of driving — controlling your speed and lane position and in some cases changing lanes or allowing you to take your hands off the wheel.
Hailing a ride in Phoenix? You can be picked up by a fully autonomous car with no driver, using an app on your phone to unlock the doors and tell the car where you want to go. Unfortunately, nobody knows whether either of these technologies — the partial automation available to consumers or the driverless vehicle fleets deployed on a more limited basis — are safe. Federal regulators have struggled to stay ahead of the risks that come with innovations. Commonsense guardrails are missing, and a lack of crashreporting requirements have left researchers like me without the robust data we need to evaluate the safety of these systems.
Last month, a group of six U.S. senators sounded the alarm about the hands-off approach to automation taken by the National Highway Traffic Safety Administration (NHTSA). In a letter to the agency, they warned that inappropriate use of partial driving automation systems, fueled in part by misleading marketing practices, is putting road users at risk. They also highlighted that highly automated vehicles — what the public often thinks of as "self-driving cars” — are being tested on public roads without having to meet any additional safety requirements or performance standards beyond those of conventional vehicles. The senators urged the agency to address these problems and require more complete reporting about the use of automation in a crash.
The missive from Capitol Hill echoes calls for NHTSA to take more decisive action that my IIHS colleagues and I have been making for years. Automation has the potential to reduce or eliminate human mistakes and enhance safety, but we have yet to find consistent evidence that existing automated systems make driving safer. What is clear is that automation can introduce new, often foreseeable, risks. Unfortunately, by not requiring complete data about crashes involving automation, NHTSA has made it harder to reduce these risks.
In their letter, Senators Edward Markey, Richard Blumenthal, Peter Welch, Elizabeth Warren, Ben Ray Lujan and Bernie Sanders pointed out that drivers are using partial driving automation systems on roads and in circumstances that the technology was not designed for and that, even when used in appropriate locations, the technology can encourage driver complacency, overconfidence and distraction.
Nobody should be surprised that drivers are misusing these systems. Back in 2016, I submitted a comment on behalf of IIHS on NHTSA’s initial Federal Automated Vehicles Policy. In it, we warned NHTSA that drivers were apt to confuse partial driving automation systems with more advanced automation, resulting in misuse and overreliance. We recommended that the agency require automakers to develop strategies to decrease the likelihood of mistakes and mitigate their costs. That includes constraining the use of partial driving automation systems to the roads and conditions they were designed for. The National Transportation Safety Board subsequently made similar recommendations to NHTSA following multiple fatal crash investigations involving Tesla vehicles equipped with Autopilot.
As the senators pointed out, one likely reason drivers are misusing these systems is advertising that exaggerates their capabilities, which NHTSA and other government agencies should take action to curtail. This, too, is not a new concern. In 2019, IIHS researchers published the results of a survey that showed a link between names like “Autopilot” and people’s misperceptions about how much of the driving the system could handle.
We know a lot less when it comes to more highly automated fleets. News reports, social media, and similar outlets have painted a comical and dismal picture of “robot cars” being stumped by traffic cones, driving in endless circles before picking up a fare, or getting stuck in construction zones. Unfortunately, this is also how we typically first hear of safety failures and crashes.
The issue is further complicated when automated vehicle companies are not transparent or truthful. In their letter, the senators expressed concern that Cruise withheld information from NHTSA and California officials after one of its vehicles dragged a pedestrian who had been struck by another vehicle. They also cited an investigative report last year that revealed the company was aware that its vehicles often fail to detect children. IIHS evaluates whether new passenger cars automatically apply the brakes to avoid children and adults; many new vehicles do. It is unimaginable that a company deploying highly automated vehicles would not have to demonstrate mastery of such a basic crash avoidance function.
The senators urged NHTSA to require more complete reporting about the use of automation in a crash. Researchers like me need this data to fully understand the effects of these technologies on safety. NHTSA itself needs it to guide the development of new regulations. In 2017, I drafted comments and gave testimony to NHTSA to encourage the agency to develop and maintain a database of vehicles equipped with partial driving automation systems. Such a database could be connected to crash databases or to HLDI’s insurance claim database in order to evaluate real-world safety. IIHS has used this approach to successfully document the safety benefits of driver assistance technologies like automatic emergency braking.
NHTSA has taken some steps to collect data. In 2021, the agency issued an order requiring manufacturers to report a property-damage or injury crash if the equipped automated driving system or partial driving automation system was
in use within 30 seconds of the crash, or, for vehicles with partial automation, an airbag was deployed or the vehicle was towed away.
Unfortunately, the records are duplicated, unverified or incomplete and include vague or inconsistent descriptions of crash severity and damage. Some records also are redacted because they purportedly “contain confidential business information.” For example, more than 80% of crash narratives involving vehicles with partial automation were redacted for this reason, and nearly one-quarter of crashes involving highly automated vehicles cite this reason for not reporting whether the vehicle was in the operational design domain when it crashed. The database facilitates reporting to initiate defect investigations but could do more to help researchers analyze systems’ safety and performance.
Beyond this weak reporting requirement, NHTSA has yet to issue any regulations to ensure driving automation systems are safe. Instead, it has limited itself to what the senators called “after-the-fact responses” — investigating defects and recalling vehicles that already have a safety problem. Recent NHTSA probes into Tesla’s Autopilot and Ford’s BlueCruise partial driving automation features following multiple fatal crashes illustrate how the agency is struggling to coax the horse back into the barn.
Because of NHTSA’s inaction, IIHS has stepped into the role of de facto regulator. We developed and recently rolled out a ratings program that encourages manufacturers to incorporate safeguards to help ensure drivers use the technology responsibly and appropriately. But this program doesn’t address all the issues with automation. And while automakers often respond to our ratings by improving the safety of their products, unlike NHTSA, we can’t compel them to make changes.
We applaud the six senators who put NHTSA on notice about its lack of action to regulate driving automation technology and added weight to the long-standing call for action. NHTSA is charged with saving lives, preventing injuries and reducing costs from traffic crashes. It’s time for the agency to take a hard look at how automated systems are affecting those goals.
BY David Kidd, Senior Research Scientist, Insurance Institute for Highway Safety u
Association Update
WINS Hosted Spring Social Events in Chattanooga and Memphis
Chattanooga at Lookout Winery
The Women in Insurance (WINS) event in Chattanooga was a resounding success! Held on a beautiful evening at the scenic Lookout Winery, the event brought together women from across the insurance industry for a night of networking, learning, and camaraderie. A special component of this event was
an engaging talk by our guest speaker, Dave Moore - West Bend Insurance – Enterprise Loss Control Consultant, whose insights, experiences, and humor left a lasting impression on all attendees. Guests enjoyed delicious, freshly made pizza while taking in the breathtaking views of the surrounding river and mountains. The relaxed atmosphere allowed for meaningful conversations and connections, making it a perfect setting for both professional and personal growth. Thank you to everyone who attended and made this event unforgettable.
Memphis at Shelby Farms Park
The WINS event at Shelby Farms Park in Memphis was a truly unique and memorable experience! The picturesque setting of Shelby Farms provided the perfect backdrop for an afternoon of learning, networking, and baby goats. We were honored to have Cindi Gresham, retired President of Boyle Insurance Agency, Inc., and Laura Gaunt, IPFS Sponsor, as our keynote speakers. Cindy and
showcasing the strength and camaraderie of the women in our industry. A special thank you to Cindi and Laura for their inspiring talks and to everyone who joined us at Shelby Farms Park. We can't wait to see you at our next event which will be our breakout session at Insurefest in October! u
Laura shared their extensive knowledge and experiences, offering invaluable insights into the insurance industry and inspiring all in attendance with their stories of success and resilience. One of the highlights of the event was the delightful opportunity to interact with baby goats! The event was a wonderful blend of professional development and lighthearted fun,
CALENDAR OF EVENTS
Watch for details of a WINS Breakout Session at Insurors of Tennessee Annual Convention Insurfest
October 5-8, 2024
At the JW Marriott, Downtown Nashville
Association Update
Young Agents Social Held in May
Thank you ICW Group for hosting our Chattanooga Young Agents social at OddStory Brewing Co. in May! Everyone had an amazing time. It was so good to see all the young agents who were able to join together to make the evening so memorable. See you at our next event at Insurfest. Watch the schedule for details.
With BBSI, you’ll have a dedicated Business Unit team who knows you and your business. In addition to payroll support and our full suite of consulting services, you’ll have access to our unique pay-as-you-go workers’ compensation program. BBSI will help you look at your business holistically in order to improve your efficiency, mitigate risk, and reduce administrative burdens.
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Your attorney clients know their firm inside and out. You know your markets and your competitors. At Swiss Re Corporate Solutions, we have the capabilities and the financial strength to meet the risk needs of insureds for Lawyer’s Professional Liability. Whether the risk is basic or complex, we believe there’s only one way to arrive at the right solution. And that’s to work together and combine your experience with our expertise and your strengths with our skills. Long-term relationships bring long-term benefits. We’re smarter together.
Being knowledgeable of NFIP coverages and changes is crucial in communicating the need for
Selective and Big “I” Flood leverage a variety of channels to keep members up to speed, including:
Continuing education classes offered by state associations and taught by Selective Territory Managers or other industry experts
Regularly issued communications from Selective about NFIP legislative changes and how they impact agents and customers
Numerous publications providing industry updates:
Insurance News & Views weekly e-newsletter Two for Tuesday weekly e-newsletter Big I Advantage® Newsletter publication
Independent Agent magazine special features NFIP reform announced in state association publications
Access to Big "I" Virtual University, which has a section dedicated to the answering the most dif�icult �lood insurance questions and offers links to the most important NFIP news.
Company Briefs
CRC Group & INSUREtrust to Form Cyber Practice Group, Enhancing Specialty Capabilities
CRC Group, a leading wholesale specialty insurance distributor in North America, announces the integration of INSUREtrust, formerly housed in Starwind, into its Wholesale Brokerage Division. This strategic combination bolsters CRC Group’s cyber capabilities and expertise and broadens INSUREtrust’s network. The newly formed cyber practice group reinforces CRC’s commitment to providing innovative solutions in the rapidly evolving cyber insurance landscape.
INSUREtrust, an industry leading provider of specialized cyber insurance brokerage, products, and risk management tools, brings a wealth of experience and exclusive offerings that further strengthens CRC Group’s alreadyformidable cyber portfolio. This inclusion empowers CRC Group brokers with enhanced resources and expanded avenues for delivering comprehensive cyber risk solutions to their clients.
According to Commercial Solutions Chief Executive Officer Mike Brennan, “The incorporation of INSUREtrust into the CRC Group family is a testament to our dedication to staying at the forefront of the industry. With INSUREtrust’s expertise in cyber insurance, we are poised to offer our clients unparalleled solutions to mitigate cyber risks effectively across our entire platform.”
INSUREtrust President and Chief Executive Officer Christiaan Durdaller will lead the newly formed Cyber Practice Group, ensuring delivery of best-in-class solutions to clients coast to coast. “INSUREtrust’s exclusive products will significantly augment CRC’s excellent capabilities to address the evolving needs of clients in the cyber insurance landscape,” says Durdaller. “This strategic integration underscores INSUREtrust’s and CRC’s capability to deliver innovative and tailored solutions to meet the dynamic challenges of the modern business environment.”
INSUREtrust’s exclusive products will complement CRC Group’s strong existing suite of offerings, further solidifying its position as a premier provider of specialty insurance solutions.
Ryan Specialty Announces RT Specialty Executive Leadership Promotions
Ryan Specialty Holdings, Inc. is pleased to announce executive leadership team promotions for Ryan Turner Specialty (“RT Specialty”), the wholesale brokerage division within
Ryan Specialty. These executive changes, effective October, reflect the continued growth and evolution of the firm, as well as the depth of talent on the RT Specialty executive leadership team.
Edward F. McCormack will become Chief Executive Officer of RT Specialty. Ed has been President of RT Specialty since 2016 and previously served as Chief Operating Officer and General Counsel. He joined RT Specialty at its inception in 2010.
Brenda (Ballard) Austenfeld and Michael T. VanAcker will become Co-Presidents of RT Specialty. Brenda is currently CEO and President of RT National Property and will continue in this role in addition to becoming Co-President. Brenda joined RT through the acquisition of Westrope in 2013 where she was a partner. Brenda has spent 30+ years in the insurance industry and currently serves as President of the Board of Directors for the Wholesale & Specialty Insurance Association (WSIA) as well as a member of the Board of Directors for the Council of Insurance Agents and Brokers (CIAB).
Michael is currently Executive Vice President of RT Specialty and previously served as Chief Operating Officer of both RT Specialty and Ryan Specialty and Controller for RT Specialty. Michael has spent his entire career in the insurance industry, starting his career at PwC before moving to Ryan Specialty in 2011. He is a licensed Certified Public Accountant in the State of Illinois.
These promotions follow Ryan Specialty’s recent announcement that it will implement a leadership succession plan, also effective October 1, 2024. As part of the plan, Patrick G. Ryan, the Founder, Chairman, and CEO of Ryan Specialty, will transition to the role of Executive Chairman, and Timothy W. Turner, President of Ryan Specialty and Chairman and CEO of RT Specialty, will become CEO of Ryan Specialty and retain his role as Chairman of RT Specialty.
Commenting on these new appointments, Tim Turner said, “I’m very excited about these well-earned promotions. All of these individuals are proven strategic leaders, have more than a decade of experience in senior positions within RT Specialty, and enjoy excellent relationships with clients, carrier trading partners, the larger insurance industry, and the entire RT Specialty team.
Ed and I have worked alongside each other since the inception of RT Specialty, and he is a very strategic, thoughtful leader who is well positioned to be an excellent CEO. Along with Marissa Moscowitz as Chief Operating Officer, this exceptional executive team will continue to lead RT Specialty forward in delivering exceptional service and outstanding outcomes for our clients and carrier trading partners.”
Company Briefs continued
BlueCross Elevates Michael Eiselstein to VP of Product Strategy and Individual Markets
BlueCross BlueShield of Tennessee has chosen Michael Eiselstein as vice president of product strategy and individual markets. He will succeed Kelly Paulk, who held the position since 2016 and will retire early next year. In this role, Eiselstein will lead teams in product strategy for all commercial business, including individual, group insured, self-funded plans, and health and wellness offerings, and have responsibility for the Individual/Marketplace line of business. He’ll oversee regulatory, compliance, and audit processes and provide leadership to operations, sales, and strategic marketing areas.
“Michael has been instrumental in strategy, research, and development for the wide range of products we offer members and employer groups, while always keeping the focus on affordability,” said Robin Young, SVP, operations & chief marketing officer. Part of BlueCross for more than 25 years, Eiselstein most recently served as product development director. In an earlier role as director of individual products, he oversaw the launch of BlueCross plans on the Healthcare.gov Marketplace and developed strategies for business growth. He’s
also held positions in product management, underwriting and actuarial analysis.
RLI Promotes Deb Millum to Vice President of Claims
RLI Corp. announced today the promotion of Deb Millum to Vice President, Claims. In her new role, Millum will assume executive leadership and oversight responsibility for RLI’s Transportation, Non-Transportation Auto and Personal Umbrella product claims. Millum joined RLI in 2017 as Director, Claim Counsel and was promoted to Assistant Vice President, Claim Counsel in 2019. She brings nearly 30 years of insurance claim and legal experience to her new role. Millum holds a Juris Doctorate degree from the University of Dayton School of Law and a Bachelor of Science in Aeronautical Administration from St. Louis University.
“Deb brings deep claim and legal expertise to her new role,” said RLI Corp. Chief Operating Officer Jen Klobnak. “Her extensive industry experience, coupled with her proven leadership ability and collaborative approach, make her a valuable addition to our claim leadership team.” u
INDEPENDENT MEMBER AGENCIES PREMIUMS WRITTEN
2020 PROFIT SHARING DISTRIBUTED TO MEMBERS
INDEPENDENT AGENCY START-UPS ASSISTED $400M+ 140+ 20+ 5 $4M $3M
2020 BONUSES DISTRIBUTED TO MEMBERS
WAYS TO EARN ON A SINGLE BOOK
Anderson, Bedford, Bledsoe, Blount, Bradley, Campbell, Cannon, Carter, Chester, Claiborne, Clay, Cocke, Coffee, Crockett, Cumberland, Davidson, Decatur, Dekalb, Dickson, Fayette, Fentress, Franklin, Giles, Grainger, Greene, Grundy, Hamblen, Hamilton, Hancock, Hardeman, Hardin, Hawkins, Haywood, Henderson, Hickman, Jackson, Jefferson, Johnson, Knox, Lauderdale, Lawrence, Lewis, Lincoln, Loudon, Macon, Marion, Marshall, Maury, McMinn, McNairy, Meigs, Monroe, Moore, Morgan, Overton, Perry, Pickett, Polk, Putnam, Rhea, Roane, Rutherford, Scott, Sequatchie, Sevier, Shelby, Smith, Sullivan, Tipton, Trousdale, Unicoi, Union, Van Buren, Warren, Washington, Wayne, White, Williamson, and Wilson
Supporting Our Communities
Why You Should Plan a Summer Community Service Event
Planning a community service event can be a stress reliever for office workers. Benefits include injecting joy and purpose into work, inspiring employees, building team spirit, boosting job satisfaction and enhancing company reputation.
Most employees value volunteering. A 2021 survey showed that 95% of Generation Z job seekers find it essential for their work to have meaning and 62% look to join a company that shares their values.
Organizing a community event doesn't have to be time consuming. Partnering with nonprofits or local businesses can make the process easier. To get the most out of a summer
Here Are Just a Few of Our Recent Service Heros
Young Agents raised $1750 in just one hour for the local Child Advocacy Center. The break-out session was held during the Young Agents Conference where participants designed their own tie dye t-shirts.
volunteer project, let employees lead, keep it simple and achievable, and recognize team members who volunteer.
Highlighting your community service can differentiate you in a crowded market and attract new customers and employees. It's important to communicate your community involvement, as people like to associate with businesses that support causes they care about.
Please share your community service event details and photos with kgarrison@insurors.org so that we can publish your event in this magazine. Perhaps your event will inspire and motivate others to do the same. u
Widener Insurance Agency, Johnson City, spent an afternoon walking a 5K to raise money for Ronald McDonald house.
During the WINS breakout session at the Young Agents Conference, we were able to collect $350 along with 89 items to donate to Dress for Success Nashville !! Thank you to everyone who donated for your support and generosity!
Education Calendar
The Insurors of Tennessee offers education opportunities to member agents across a wide range of insurance specialties that satisfy individuals at many different experience levels. If you are looking to further your career, seeking a professional designation, or need to satisfy continuing education requirements, check out the variety of courses available. Additional course options and details of each class can be found online or by contacting Teresa Durham at tdurham@insurors.org or 615.515.2607.
Register for CISR & CIC at www.insurors.org under education. Classes with (*) have option for in person or webinar event.
CISR
7/11 Insuring Personal Auto Exposures* Nashville
8/22 Life & Health Essentials* Nashville 10/17 CISR Agency Operations* Nashville
CIC
7/31-8/1 Commercial Property * Nashville
9/25-26 Ruble MEGA Seminar * Nashville
10/2-3 Personal Lines* Nashville
11/20-21 Commercial Casualty * Nashville
Other
10/5-8 Insurefest Nashville
Additional courses for designation programs are offered on-demand at your own pace and as live webinars.
The National Alliance for Insurance Education & Research is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website: www.nasba.org. Advanced Curriculum Rating = 20 CPE Credits. For more information regarding administrative policies such as complaint and refund, please contact our offices at 800-633-2165.
Additional Courses
Additional courses are available On-Demand and as Live webinars at the IIABA Virtual University *check the VU site for course offerings, CE and pricing (independentagent.com/vu)
From The National Alliance (www.scic.com)
Choose from the following programs CIC, CRM, CISR, CPRM, CSRM, Dynamics, RGS, MEGA, PROFOCUS, WTH, Intro, Producer School, Ethics, Flood and other. Choose by topic, location, delivery method and/or date.
From The Institutes (ceu.com/customer/insurors-tn ) Insurors of Tennessee has partnered with CEU, powered by The Institutes, to provide you with relevant and convenient online insurance continuing education (CE) courses. Through our partnership with CEU, you will enjoy a 35% discount on any of CEU’s relevant, practical courses when you log in. More than 150 course topics.
ABEN Webcasts
(insurors.aben.tv)
The below are examples of the webcast classes that are available at insurors.aben.tv. View website for more.
Your Big "I"
Auto Claims Severity Up Significantly Since 2020 With No Sign of Slowing
BY AnneMarie McPherson Spears, IA news editor
The high claims severity that plagued the personal auto insurance market in 2023 shows no signs of abating, according to the “2024 LexisNexis® U.S. Auto Insurance Trends Report," released today, which offered various other insights into the auto insurance market.
Bodily injury severity has risen 20% from the end of 2020 to the end of 2023, according to the report, while severity for all material damage coverages has increased 47%. Contributing factors include parts and labor shortages, storage costs, attorney involvement and increases in medical treatment costs.
In a separate study in 2023, LexisNexis commissioned a market research study to learn about third-party claimants who hired an attorney in auto claims—a major contributor to claims cost increases.
Distracted driving violations increased by 10% from 2022 to 2023. Young drivers are most susceptible to distraction, with distracted driving violations by Generation Z increasing 24% from 2022, and 66% from 2019. The same violation increased 9% from 2022 among millennials.
Following an auto accident, 85% of claimants were approached by one attorney while about 60% heard from two or more. Among the claimants who hired an attorney, 51% received a higher settlement amount, the study found, and of the claimants who used legal counsel, nearly two-thirds would definitely do so again, with another quarter saying they probably would.
Further, total loss claims have increased 29% since 2020, with more than 1 in 4 collision claims in 2023 deemed total losses. In cases of total loss, 46% of consumers were dissatisfied with their claims experience, with 40% of respondents saying it took a month or more for full payment for their claim.
As total miles driven returned to 2019 levels in 2023, the risky driving patterns that emerged during the COVID-19 pandemic continued to rise, with all moving and non-moving driving violations increasing 4% year-over-year in 2023. Major speeding violations were up 10% from 2022 to 2023—and up 36% from 2019. Additionally, driving under the influence (DUI) violations grew 8% from 2022 to 2023.
While risky driving behavior persists, many insurers haven't updated their pricing models to reflect those changes, the report warned.
As carriers seek to alleviate the inflation and high claims costs that contributed to a property & casualty combined ratio of 105% in 2023, significant rate increases of 14% reduced pressure on profits but also led to a drop of three percentage points in retention from 83% to 80%, LexisNexis found.
Among respondents with auto insurance at the end of 2023, 41% had shopped at least once for a new policy in 2023. Many ended up switching, causing the number of new policies to rise 6.2% in 2023. Meanwhile, insurance industry advertising spending decreased roughly 45% from its height in 2021.
With low-risk customers prompted to jump to better options in the market, insurers may be retaining policies with higher risk at the wrong price, the report points out. “Insurers who are not actively engaged in managing the change in risk in their renewals may find it difficult to maintain profitability. The lack of a consistent renewal strategy could also threaten new business rate competitiveness. Insurers can update renewal underwriting strategies by leveraging predictive internal and external data and models to help maintain price to risk."
Meanwhile, electric vehicles (EVs) are another emerging factor in personal auto. As the EV market continues to emerge, with a 54% increase in EV sales in 2023 over 2022, insurance risks also continue to grow. Claim frequency and severity for EVs were respectively 17% and 34% higher than for private passenger autos overall. And while EVs still only comprise 1.5% of all private passenger autos, they accounted for 2.3% of the total claims payment among all personal autos in 2023. u
Meetings- Mark Your Calendars
Big "I" National Fall Conference
Big "I" Education Convocation
September 3-6, 2024
Big "I" Fall Leadership
September 4-8, 2024
Young Agents Leadership Institute
September 5-7, 2024
Insurors of Tennessee Annual Convention -Insurfest
October 5-8, 2024
Nashville, TN
Coming to Nashville in 2025 !
Big "I" National Fall Conference
September 9-14, 2025
JW Marriott
Indianapolis, IN
JW Marriott
Downtown Nashville
Registration is Open
Details to be Announced
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