Primary Agent - June 2024

8 Q&A WITH JASON RODRIGUEZ AND DR. JEFFREY BENSON JR.

Jeffrey Benson Jr., DBA and Jason Rodriguez, CIC – both of Prominent Insurance Services, an IA&B member agency in Wilmington, DE – offer insights on creating a more diverse independent agency system.

13 VOICES FROM THE AGENCY FORCE

IA&B member agents Nicole Palmer and Dana Page share their perspectives on diversity and inclusivity in the insurance industry. 16 HOW DIVERSITY CREATES A WINNING TEAM

Karen DiGioia, of Herbein HR Consulting, explains why a diverse workplace is a critical asset for independent agencies.

A DIVERSE INDEPENDENT AGENCY CHANNEL

I recently attended our national legislative conference in Washington, D.C., along with 30 IA&B member agents. (See photos on page 20.) This event is always a highlight for IA&B – and for me. However, it had even more meaning this year. Dr. Jeffrey Benson Jr., a memberagent from Delaware, was the winner of the prestigious Dan Fulwider Award, presented at the conference to an independent agent for his commitment to community service. Get to know Jeffrey and what a wonderful representative he is of IA&B and our industry in his interview on page 8.

The legislative conference came on the heels of another highly successful IA&B Women’s Conference, where over 185 insurance professionals gathered for a day of networking, learning, and growing. The praise continues to come in that this event is both needed, and empowering, for women in our industry.

I also recently served as a volunteer judge for the Future Business Leaders of America (FBLA) State Leadership Conference in Hershey, PA. This event brought together nearly 5,000 high school students from across Pennsylvania to compete in a host of business-related events. I observed an extremely diverse and talented group of students, showcasing the next generation. IA&B had a booth at this event, hoping to entice this audience to consider a career in insurance.

How are these all related? Each event highlighted diversity in its own unique way – showing how diversity is a key piece to our industry’s current and future success. IA&B is committed to promoting, supporting, and highlighting a diverse independent agency channel. Not only will these efforts benefit our current member agencies, but they will allow us to expand our search for future insurance professionals. It’s a win-win situation, and one we are proud of. Enjoy this issue which celebrates, and looks at ways to grow, our industry’s diversity.

Until next time,

Jason F. Ernest President & CEO

INSURANCE AGENTS & BROKERS

650 Wilson Lane, Suite 200 Mechanicsburg, PA 17055

191 Main Street, Annapolis, MD 21401 800-998-9644 | IABforME.com

IA&B BOARD OF DIRECTORS

OFFICERS

Sarah Brown, CIC, CRM, AFIS - Chair

Keller Brown Insurance Services | Shrewsbury, PA

Andrew Enders, Esq. - Vice Chair Enders | Harrisburg, PA

MEMBERS

Lisa Parry Becker, CPIA

Parry Insurance Langhorne, PA

Greg Bennett Famous & Spang Associates Aberdeen, MD

Kate Dawson, CPIA Ferri Dawson Insurance Murrysville, PA

Len Gieseler, LUTCF

Evans Hauseman & Richard, Inc. Pottstown, PA

Bruce D. Kraft, AAI, CIC Arbor Insurance Group Allentown, PA

Debra McAfee

McAfee Insurance Agency, LLC Wilmington, DE

Shayne McIntosh, CIC

JPI Insurance Associates Dillsburg, PA

Chris Miller, CIC

Miller Insurance Protection Team Jonestown, PA

Michael Papa, CIC, MBA

Diversified Insurance Industries, Inc. Hunt Valley, MD

Bill Purdy Purdy Insurance Agency, Inc. Sunbury, PA

Kent Reynolds, CIC Blue Ridge Risk Partners LLC Hagerstown, MD

David Rivell, CIC, CRM Element Risk Management West Chester, PA

Jason Rodriguez, CIC Prominent Insurance Svcs Wilmington, DE

Donna Roper E K McConkey & Company York, PA

Candace Shoupe, AAI, AIC CBM Insurance Agency New Castle, DE

Bob Smyrl, CIC

Robert L. Smyrl, Inc. Hatfield, PA

Michael Thomas Lighthouse Insurance Svcs Gambrills, MD

NATIONAL DIRECTORS

Mike Ertel (PIA)

The Jacobs Company | Columbia, MD

Diana Hornung, CIC (IIABA)

IOA National, Inc. | Wilmington, DE

Mark Monroe (IIABA)

Griffith Insurance, LLP | West Chester, PA

QUESTION:

ANSWER:

CLAIRE-IFICATION

IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR

Are you a member with a question? Contact Claire to find the answer at 717-918-9202 or ClaireP@IABforME.com.

Can agencies implement a “no cash” policy for walk-in payments?

In Pennsylvania, the Insurance Department has adjusted its position and opened up the ability for agencies to refuse cash payments if certain conditions are met. First, it is important to note that there is nothing in statute to prohibit an agency from refusing cash payments. By the same token, it is legal tender, and refusing cash could cause issues of timeliness of payment, resulting in lapses or cancellations for non-pay.

To avoid issues, agencies should: 1) document their process to avoid any possible claims of discrimination or other complaints; 2) consider what the agency will do in an event where not accepting cash could cause a lapse in coverage (having a contingency plan in place for such circumstances may avoid issues); and 3) check their agency agreements to make sure that refusing cash payments does not violate any contract terms.

Maryland is also flexible. According to the Maryland Insurance Administration, there is nothing in statute or regulation that requires a producer to accept cash payments. As long as the producer is treating all policyholders the same in this regard, they do not view this policy as a problem. In other words, Maryland mainly focuses on consistency of treatment so that the agency does not run into a potential discriminatory practice issue.

In Delaware, House Bill 299 was enacted in 2022. The law prohibits businesses from refusing cash payments, except in limited circumstances that would generally not apply to insurance agencies. Businesses also should not discriminate against individuals paying with cash. The use of machines that convert cash into prepaid cards is an acceptable alternative for those who do not want to deal with cash, but only so long as the device is on the premises, provides a receipt with the amount of cash

deposited, does not charge a fee, and the prepaid card is not subject to an expiration date. The law became effective Jan. 1, 2023.

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

Also available in audio format

ARE VARMINTS COVERED?

By Bill Wilson

In an insurance career that spans seven decades, I’ve responded to dozens, maybe hundreds, of questions about homeowners’ coverage for damage caused by animals. The types of animals involved in these claims include mice and rats, squirrels, roaches, snakes, turtles, bats, pigeons, goats, raccoons, skunks, carpet beetles, spiders, dogs, deer, bears, chipmunks, and the list goes on and on.

Just about every homeowners’ policy I’ve ever reviewed excludes damage caused by birds, rodents, and insects. So, in my list above, we can immediately rule out coverage under these policies for mice and rats,

roaches, pigeons, carpet beetles, squirrels, and chipmunks.

So, sticking with the list above, what about snakes, turtles, bats, goats, raccoons, skunks, dogs, deer, and bears? Might damage caused by these types of animals be covered? The answer, so often the case in insurance, is … maybe.

Using Insurance Services Office’s (ISO’s) HO 00 03 as a model homeowners’ form – prior to the 1991 edition of this form – in addition to birds, rodents, and insects, also excluded were “domestic animals” and “vermin.” Addressing the first term, for example, dogs are usually considered “domestic animals,” so

we can remove dogs from the above list of animals that might be covered. Likewise for cats…. I’ve been involved in a few cat urine and claw damage claims.

With traditional pets, the “domestic animals” language was not problematic. However, sometimes disputes arose about the meaning of the word “domestic” when other animals were the cause of loss. One such claim in Indiana involved a herd of goats that managed to get inside a rural home and caused extensive damage.

When the homeowner called his agent, the CSR told him the damage was covered because “domestic”

refers to animals like dogs and cats. Unfortunately, the adjuster disagreed and based his denial on the word “domestic” meaning “domesticated.” On that basis, damage caused by a goat or cow could be excluded but probably not damage by a deer or bear. (As an E&O learning point, be very careful as an agent in suggesting that something is or isn’t covered without confirming that, where possible, with the carrier’s claims department.)

As a result of this potential ambiguity, in 1991 ISO replaced the “domestic animals” language with “animals you own or keep.” So, in the immediate example above, if the goats belong to the homeowner, there is no coverage, but if they belong to a neighbor, there is coverage. The same thing applies to animals like dogs and cats on the 1991 and later editions of the ISO HO 00 03.

Returning to our original list above, one would assume that damage caused by wild animals like bats, raccoons, and skunks would usually be covered even under the “domestic animals” language. However, note that, in addition to birds, rodents, insects, and animals you own or keep, the exclusion in 1991 also applied to any animal that would be considered “vermin.” So, the question is, what is “vermin”?

When I was with the Big “I” national association, I did extensive case law research and wrote a lengthy and detailed article called “What is a ‘Vermin’?” I reprinted the article on my blog at InsuranceCommentary. com if you want to read a greatly expanded version of this article with case law citations.

Essentially, in my research, I could find no precedent-setting case law that upheld a claim denial based on the “vermin” wording in homeowners’ exclusions. It was almost universally found to be an ambiguous term. Using this research, the Big “I” national technical affairs committee convinced ISO to remove the word “vermin,” and its associated ambiguity, from the exclusion.

As a result, in their 2011 countrywide homeowners’ program revision, ISO essentially adopted the exclusion in their commercial property Special Causes of Loss form and replaced “vermin” with “Nesting or infestation, or discharge or release of waste products or secretions, by any animals….” This change continues in the current 2022 edition of the ISO HO 00 03 form.

To illustrate the impact of such policy language revisions, prior to the 2011 change, I had assisted several agents in getting claims paid for damage caused by bats nesting in attics, the primary damage being caused by their waste products. The downside to the 2011 revision in ISO’s HO 00 03 form is that these claims are clearly not covered anymore.

On the other hand, many other claims that were arguably unjustly denied based on the “vermin” exclusion are now covered. The point of lobbying ISO for this change was to remove or limit the ambiguity of an exclusion so that all parties can better understand whether a loss exposure would or would not be covered.

So, now answering the question “Is animal damage covered by an ISO homeowners’ policy,” we can replace

“maybe” with “it depends.” I guess that’s a good thing?

Bill Wilson, CPCU, ARM, AIM, AAM is the founder and CEO of InsuranceCommentary.com and the author of seven books, including “When Words Collide…Resolving Insurance Coverage and Claims Disputes.” He can be reached at Bill@InsuranceCommentary.com.

Also available in audio format

LIVE CE WEBINAR

Be prepared to have tough conversations about rising premiums. This course reviews how inflation across other industries impacts personal insurance – and how to explain it to insureds.

INFLATION & PERSONAL LINES: HELPING INSUREDS UNDERSTAND

JUNE 25 1-4 PM

CE PA/DE: 3 GEN MD: 3 PC

IA&B Members: $75 (save $30!) Non-Members: $105 Register today.

IABforME.com 800-998-9644, option 1

INSURANCE EDUCATION SCHOLARSHIP APPLICATIONS

Apply for the next round of insurance education scholarships by Friday, Aug. 2.

IA&B will award two individuals with full designation scholarships – one for a CIC designation and another for a CISR designation. Plus, member agencies will receive scholarships to send an employee to a CIC course, CISR course, or CE webinar. Scholarships to attend licensing study courses are available throughout the year.

IA&B introduced the insurance education scholarship program in late 2018 to support the future of the independent agency system. The scholarship program aims to develop new talent and support existing agency staff through insurance education. Each year, IA&B awards about $10,000 in scholarships.

Applications are available online: IABforME.online/scholarships

Questions?

Contact IA&B Marketing Assistant Sarah Haas SarahJ@IABforME.com | 800-998-9644, ext. 104

IA&B YOUNG AGENT AWARD

NOMINATIONS ARE OPEN

Are you or someone you know a rising star in our industry? Nominate yourself or someone else for the 2024 IA&B Young Agent Award. Nominations are due by Friday, June 21.

IA&B will recognize three exceptional young agents – one from Pennsylvania, Maryland, and Delaware – for this honor.

WHAT’S IN IT FOR THE WINNERS:

• Receive recognition at an award ceremony at the IA&B Young Agent Conference in Gettysburg, PA, on Oct. 28 & 29.

• Highlighted in the IA&B Primary Agent magazine, Young Agent Issue

• Featured in a video produced by IA&B

AWARD CRITERIA:

• Must be a licensed P&C agent

• Employed for at least one year by an IA&B member agency in PA, MD, or DE

• 40 years old or younger on Oct. 1, 2024

• Made community contributions through volunteering or service

• Example of emerging-leader status in the field

• Participated in IA&B events, education, or other happenings

Nomination forms are available online: IABforME.com/Agent-Award

Questions? Contact IA&B PR Director Karen Robison KarenR@IABforME.com | 800-998-9644, ext. 606

DELAWARE MEMBER AGENTS MEET WITH STATE LAWMAKERS

Independent agents attended a late-April Insurance Industry Reception in Dover alongside more than a dozen lawmakers, as well as other insurance industry leaders. IA&B joined as a sponsor of the event, which aims to foster a closer working relationship between the insurance industry and lawmakers.

Pictured (left to right): Sen. Russell Huxtable; John Savant, IA&B; Ashley Stafford, Williams Insurance Agency; Sen. Kyle Evans Gay; Sen. Spiros Mantzavinos; Rebecca Giacometti, Wolff Insurance Agency; Debra McAfee, McAfee Insurance Agency; Peter Wolff, Wolff Insurance Agency

Q& A

with

JASON RODRIGUEZ & DR. JEFFREY BENSON JR.

Prominent Insurance Services CEO Jason Rodriguez, CIC (L in photo) and Managing Partner Jeffrey T. Benson Jr., DBA (R in photo) are committed to advancing minorities’ participation and leadership in the insurance industry. Prominent Insurance Services is a full-service independent agency in Wilmington, DE which also offers franchising opportunities.

Rodriguez is chairman of the Delaware Association of IA&B, serves on the IA&B Board of Directors, and is a member of the Big “I” Diversity Council.

Benson earned his Doctor of Business Administration from Wilmington University earlier this year. His dissertation focused on the impact of diversity within the insurance industry’s senior leadership and its effects on African American advancement.

Q. First and foremost, how did you each get your start in the insurance industry? Tell us about your career paths.

A. Jason: I first dipped my toes into the insurance world when I was running a transportation company. Managing commercial auto insurance was crucial for my business, and it sparked my curiosity about the industry. I got to talking with my local insurance agent, who was handling my policies, and I was fascinated by how pivotal their role was in protecting businesses. That inspired me to get licensed myself. I quickly realized the real impact we as agents have in safeguarding our clients’ interests. It’s been an exciting journey ever since!

A. Jeffrey: My journey into the insurance industry is a testament to the unpredictable twists and turns that shape a career path. Right out of high school, I enlisted in the United States Air Force. Once I returned home, I was

looking for new opportunities that ultimately landed me in the car business. It was while working there that fate intervened, and I bumped into a district manager from Combined Insurance. We spoke briefly, and he asked if I knew anything about the insurance business. After giving me the rundown, he asked if I would like to join his company as a life/health insurance sales agent. I accepted the offer, stepping into a new chapter that seemed to have been waiting for me all along.

This move was more than just a career shift; it was a transition into a role where I could make a tangible difference in people’s lives by helping them secure their future and protect what matters most to them.

Q. What’s your favorite part about working in our industry?

A. Jeffrey: One of the most fulfilling aspects of working in the insurance industry is the opportunity to educate individuals, families, and business owners about their insurance needs. This role is not just about selling policies; it’s about providing valuable information and guidance that can protect people’s health, assets, and financial future.

We, as insurance professionals, play a crucial role in helping clients understand the complexities of various insurance products and how they can be tailored to fit individual circumstances. This educational process empowers clients, enabling them to make informed decisions about their coverage. It’s about creating a sense of security and peace of mind for clients, knowing that they are protected against unforeseen events.

A. Jason: My favorite aspect of working in insurance is definitely the opportunity to educate our clients about the nuances of policy limits and coverages. We believe in

‘mission over commission.’ Our commitment is to ensure that clients are well-informed and equipped to make decisions that protect their most valued assets.

Q. Let’s talk about racial and ethnic diversity in our industry. According to the U.S. Bureau of Labor and Statistics in 2023, insurance sales agents were 80.6% white, which is certainly not representative of the general population. What do you consider the biggest roadblocks to addressing this disparity?

A. Jason: The biggest roadblocks to enhancing diversity in the insurance industry often include a lack of visibility and accessibility. Many talented individuals from diverse backgrounds might not see insurance as a viable career path due to a lack of representation or awareness of the opportunities it presents.

A. Jeffrey: Addressing racial and ethnic diversity in the insurance industry, or any industry, requires an understanding of the multifaceted roadblocks that contribute to such disparities. I identified six of the major roadblocks in my dissertation. [See sidebar.] Addressing these requires a concerted effort from all levels of the industry. It involves not only reevaluating and adjusting recruitment and retention practices but also fostering an organizational culture that values diversity, equity, and inclusion.

Q. What are the benefits to a more diverse independent agency system?

A. Jeffrey: In the dynamic landscape of the insurance industry, the integration of diversity within an agency heralds a multitude of benefits that ripple through various facets of the business and its community. By adopting an environment rich in cultural, linguistic, and perspective diversity, agencies are positioned to craft services and communications that resonate with a wide array of client needs, effectively broadening their market reach. This tailored approach is bolstered by agents who mirror the demographic diversity of their clientele, enhancing the capacity for empathy and understanding, and thereby elevating the quality of customer service. Such personalization fortifies client relationships and cultivates loyalty.

In sum, a more diverse independent insurance agency system is not only beneficial for the business in terms of growth, innovation, and competitiveness but also plays a critical role in serving the community more effectively. It reflects a commitment to equality and inclusion, driving

Continued on page 10

6 MAJOR ROADBLOCKS TO INCREASING DIVERSITY

Dr. Jeffrey Benson Jr. identified the following items in his dissertation, which focused on the impact of diversity within the insurance industry’s senior leadership and its effects on African American advancement.

1. LACK OF AWARENESS AND ACCESS: Many individuals from underrepresented groups might not be aware of the career opportunities available in the insurance industry. This lack of awareness can stem from limited exposure to the field or the absence of role models and mentors who look like them or share similar backgrounds.

2. EDUCATIONAL AND ECONOMIC BARRIERS: Access to education and professional development opportunities can be a significant barrier. The costs associated with obtaining the necessary qualifications or certifications can be prohibitive for some, especially for those coming from economically disadvantaged backgrounds.

3. RECRUITMENT PRACTICES: Traditional recruitment strategies may inadvertently favor candidates from more homogenous backgrounds, especially if they rely heavily on networks and institutions that lack diversity. This can create a cycle that perpetuates the lack of representation.

4. CULTURAL AND INSTITUTIONAL BIAS: Implicit biases have affected hiring, promotion, and retention practices. These biases may not always be overt or intentional, but they can influence decision-making processes in ways that disadvantage candidates from diverse backgrounds.

5. INCLUSIVE ENVIRONMENT: Creating an environment where employees from all backgrounds feel valued and included is crucial. Without a commitment to inclusivity, even diverse hires may find it challenging to stay and thrive within the organization.

6. LACK OF TARGETED DIVERSITY INITIATIVES: Without specific initiatives aimed at increasing diversity, efforts to change the status quo can be slow or ineffective. This includes scholarship programs, internships, mentorship opportunities, and community outreach programs designed to attract and support candidates from underrepresented groups.

Continued from page 9

positive social change while simultaneously advancing business objectives.

A. Jason: A diverse agency brings a plethora of benefits, including developing a deeper understanding of the diverse needs of clients, fostering innovation through a variety of perspectives, and enhancing problem-solving capabilities. It ultimately leads to more personalized service and stronger relationships with a broader client base.

Q. What advice would you give to agency management who want to be part of the solution but don’t know where to begin?

A. Jason: Start with active engagement and sincere conversations about diversity within your team. Implement training sessions focused on diversity, equity, and inclusion. Actively recruit from a broader pool of candidates and create internship opportunities that introduce a more diverse group to the insurance industry.

A. Jeffrey: The journey toward fostering diversity, equity, and inclusion (DE&I) within an organization is a multifaceted and ongoing process that begins with a foundational commitment from senior leadership. This commitment must be clear, deliberate, and woven into the fabric of the organization’s mission and values, with leaders setting the tone through their actions and decisions. To understand where the journey must go, an initial baseline assessment is crucial. By examining the current state of diversity through team composition, hiring practices, promotion rates, and employee feedback, organizations can pinpoint areas needing improvement.

From this assessment, setting specific, measurable goals for diversity hiring and retention becomes the next critical step. Targets might include enhancing the diversity of the candidate pool, improving retention rates for underrepresented groups, and making tangible progress in cultivating an inclusive workplace culture. Achieving these goals necessitates a multilayered approach, beginning with comprehensive training programs for all employees that address unconscious bias and cultural competency, highlighting the intrinsic value of diversity, equity, and inclusion.

Additionally, revising recruitment and hiring practices is essential to attracting diverse talent. This means expanding recruitment efforts to reach organizations, schools, and communities that serve underrepresented groups and scrutinizing job descriptions and interview processes to remove biases. However, attracting diverse talent is only

one piece of the puzzle. Creating an inclusive culture where every employee feels valued, heard, and included is paramount. This involves promoting the establishment of employee resource groups, implementing inclusive policies, and fostering open communication.

To support the professional growth of all employees, the provision of mentorship and career development opportunities is crucial, ensuring those from underrepresented groups have equal chances to advance. Holding management accountable by integrating DE&I objectives into performance evaluations emphasizes the importance of these efforts. Celebrating and communicating the successes along this journey not only acknowledges progress but also reinforces the value of DE&I initiatives to the organization and its personnel.

Recognizing that the creation of a diverse and inclusive workplace is never complete, it’s important to regularly reassess goals, strategies, and practices, and to be ready to make adjustments based on feedback and outcomes. This continuous cycle of commitment, action, evaluation, and improvement is essential for organizations seeking to not just attract diverse talent, but to thrive on the principles of diversity, equity, and inclusion.

Q. Our organization is fortunate to have you two –thought leaders on the areas of diversity, equity, and inclusion in our industry – in our membership. What one key message would each of you like other IA&B members to take away from this interview?

A. Jeffrey: The key message I’d like to leave with IA&B members is to view diversity, equity, and inclusion as an ongoing journey rather than a fixed destination. The landscape of DE&I is ever-evolving, as are the communities and clients we serve. It’s vital to continuously educate ourselves, engage in meaningful dialogue, and reflect on our practices and policies. Success in DE&I doesn’t come from checking boxes but from adopting a culture of continual learning, adaptation, and genuine commitment to change. Let’s approach DE&I with the understanding that every step forward enriches our organizations, improves our service to clients, and strengthens our communities.

A. Jason: My key message is simple: Embrace diversity, equity, and inclusion not just as a moral imperative but as a strategic advantage. By doing so, we ensure our industry is more reflective of the society we serve and better equipped to handle the complex challenges of the future. It’s about building a resilient, innovative, and inclusive industry that benefits everyone.

DR. JEFFREY BENSON JR. RECEIVES NATIONAL COMMUNITY INVOLVEMENT AWARD

Dr. Jeffrey T. Benson Jr. – of Prominent Insurance Services, an IA&B member agency in Wilmington, DE – is the recipient of the 2024 Dan Fulwider Award for Community Involvement. Trusted Choice presented the award during the Big “I” Legislative Conference & Convention in Washington, D.C.

The award, named in memory of an avid philanthropist and former government affairs coordinator and membership liaison for the Independent Insurance Agents of Iowa, recognizes the Big “I” member who has gone above and beyond the call of service to truly make a lasting difference in their community over the past year.

Benson was celebrated for his deep commitment to fostering community growth and advocating for social change in Seaford and Wilmington, DE. He volunteers to mentor young men in his TeamLYFE brand – which stands for Live Your Future Everyday – participating in innovative programs such as “The Gentlemen’s Club” with Seaford Middle School and High School and “Boy Meets World” with Sussex Montessori School.

Benson has made significant contributions to local education and the empowerment of Black male students as the former director of the Black Male Initiative at Delaware State University, a program in which he is still heavily involved. Benson

is also involved in numerous other community service initiatives, from the “Donuts with Dudes” event to distributing gifts and resources to families in need.

together we can make a difference

Erie Insurance’s culture is one of dignity and respect, founded in our core values and emblematic of our belief system.

We strive to create an environment where customers, agents and employees reflect the diversity of the communities where we all live and work.

Our commitment isn’t measured in just words or intention, but in action.

That’s why ERIE is proud to be a sponsor of Insurance Agents & Brokers (IA&B).

Dana N. Page, CIC, API, AU, AIC

Job title: President

Agency: Craig S. Mader Insurance & Performance & Mader Insurance

Location: Gambrills, MD

What’s your favorite part of working in insurance?

People are my motivation for working in this industry. Whether providing home, auto, commercial, or life insurance, I’m in a field that restores people after devastation and provides tools to help them build generational wealth and security. Because of this universal need, community is built into every transaction, touchpoint, and conversation. That’s what I love about this business.

What do you consider the independent agency channel’s greatest strengths and weaknesses when it comes to diversity?

A major strength is being able to represent various toptier carriers with solid products. This allows independent agents to diversify our coverage offerings so we’re not turning down business.

As for weaknesses, minorities and women are still underrepresented in the insurance broker industry, particularly among agency principals and owners. A broader pool of visionaries can only enrich and expand our position in the marketplace and benefit the people we serve. We need a path to make that happen.

How can our industry be more inclusive?

Our industry needs to respond not only to diverse communities and people groups. We must accommodate diversity of thought and direction in a post-COVID marketplace. Products and services must expand to offer solutions for the growing wave of entrepreneurs, investors, and individuals whose new normal encompasses multiple disciplines, ways of living, thriving, and building legacy.

Nicole Palmer, CPIA

Job title: Account Relationship Manager

Agency: Keller-Brown Insurance

Location: Shrewsbury, PA

What’s your favorite part of working in insurance?

My absolute favorite thing is talking to people to help them to understand their personal home and auto coverages. When I started in the insurance industry seven years ago, it was very intimidating to me, as insurance is very complex. So, for me to be able to explain things to clients with understanding and comprehension makes me feel empowered.

What do you consider the independent agency channel’s greatest strengths and weaknesses when it comes to diversity?

The channel’s greatest strength when it comes to diversity is its ability to serve a diverse customer base. Independent agents have the option to work with several carriers, which allows them to meet the needs of different individuals and communities. This inclusiveness allows agents to serve a wide range of clients regardless of background and/or circumstances.

A weakness is the lack of representation and inclusion of diverse agents. Historically the insurance industry has been dominated by white males. A lack of diversity among agents can lead to limited, if any, perspective regarding servicing a diverse customer base.

How can our industry be more inclusive?

The insurance industry can and should ensure there is diversity in the field. One way to be more inclusive is to be more open in hiring practices. In those agencies that are diverse, it’s also important to discuss and address topics that affect other races and genders. The more we know about one another, the better we can understand one another.

PLATINUM PARTNER PROFILE

Insurance Agents & Brokers proudly recognizes Erie Insurance as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.

CHIEF EXECUTIVE OFFICER

Timothy G. NeCastro, President and CEO

HEADQUARTERS

It’s the rare individual who is motivated by a genuine desire to help others. And it’s the rare company that puts that principle into practice.

At Erie Insurance, we’ve been helping people make things right since 1925, working side-by-side with the best independent agents in the business.

Our agents and employees are energized by a clear sense of purpose, performing to the best of their ability, because they know the work they do benefits millions of customers’ families and businesses. It’s part of being Above all in SERVICE® and it’s why we’re so committed to the independent ERIE agents who live and work in the communities they serve.

On the strength of these relationships, Erie Insurance has risen to become one of the nation’s most respected property/casualty and life insurers.

Today, we’re a FORTUNE 500® company operating in twelve states and the District of Columbia, with approximately 7 million policies in force. We’re the 12th largest auto insurer, the 12th largest home insurer, and the 13th largest business insurer in the United States. Erie Insurance is one of only five companies that made the rankings in every category for Forbes Magazine’s annual list of America’s Best Insurance Companies. Erie Insurance Group has earned A.M. Best's rating of A+ (Superior), and Erie Family Life Insurance Company has earned A.M. Best's rating of A (Excellent).

Erie Insurance’s founding principle is: “To provide our policyholders with as near perfect protection, as near perfect service as is humanly possible, and to do so at the lowest possible cost.” That same principle guides us today.

We still adhere to disciplined underwriting, fair pricing and a prudent investment philosophy. We still practice the Golden Rule–treating others as we want to be treated.

We still thrive on the ERIE family spirit, employees and agents working together as a team for the good of our customers and the communities we serve.

At our core, we still believe the truth in our founder H.O. Hirt’s words:

Success in business is not a matter of tricks or gimmicks…it is just a matter of simple common sense, mixed with just plain decency. - H.O. Hirt

Erie Insurance Founder

Thanks to these partners for supporting the independent agent network.

PLATINUM PARTNERS

Acuity

Erie Insurance

Keystone

Millers Mutual Insurance

NJM Insurance Group

Penn National Insurance

GOLD PARTNERS

Chesapeake Employers Insurance

Chubb

EMC Insurance Companies

Farmers of Salem

Iroquios Mid-Atlantic Group

Liberty Mutual Small Commercial / State Auto / Safeco Insurance

MMG Insurance Company

Mutual Benefit Group

Nationwide

POM Insurance

Progressive

How Diversity Creates a Winning Team

I’m not sure about you, but I love a broad range of foods. One day I’m craving a burger, the next day it’s bean enchiladas. Later in the week, maybe a vegetable stir fry or a curry. Pizza. Spaghetti. Jambalaya. Shrimp and grits. So many options – and I love them all!

I grew up on a pretty basic meat and potatoes diet, not unusual for the 20th century American midwestern suburbs. When I look back now, the foods I ate as a child seem bland. Over time, I introduced my palate to a wider range of flavors and spices. I can still enjoy meals that remind me of my childhood but don’t want to eat that way every day. Variety – as the saying goes – truly is the spice of life.

In the same way, employing people with diverse backgrounds adds to your agency. By hiring employees with a variety of skills and perspectives, we add depth to our organizations and improve performance. Diversity is about more than regulatory compliance; it’s a business strategy that yields benefits for everyone.

Why does variety/diversity matter?

Imagine if you will, a room with eight people who were born in the same year, grew up in the same neighborhood, went to the same college, graduated in the same year, and had the same major – for example’s sake, let’s say they all majored in biology. In the room next to them is a group of eight people with little in common – one is a millennial, one Gen Z, two are boomers. One is from the Bronx. Another is an Iowa farmer. One double majored in art history and English. Another is a gym teacher. Yet another, a park ranger.

Now let’s give each group a name and bring the two rooms together for a game of Trivial Pursuit. The first is Team Same; the second, Team Varied. Let’s see how Team Same and Team Varied do in a round of Trivial Pursuit.

By Karen DiGioia, Herbein HR Consulting

Team Same rolls the die. They get to pick their category and confidently go with Science and Nature.

The first question is read from the card: “What’s the shape of a camel’s spine?” This is an easy one for our bio majors, all of whom know that, despite those humps, a camel’s spine is straight.

Team Same rolls the die and again lands on Science and Nature. “What color does litmus paper turn if a solution is acidic?” Everyone on Team Same knows this one, too. “Red or pink” is their answer, and they are correct. At this point, Team Same is feeling pretty darn confident. Two rolls, two correct answers. All these educated minds on one team –this should be easy!

Team Same rolls again and lands on Arts and Literature. The question this time around is “What Richard Adams book includes an account of Bigwig’s encounter with a fox?” Dang. Team Same isn’t so comfortable with this topic. The timer runs out. Team Varied has a chance to answer.

Team Varied takes a few moments to discuss amongst themselves. The English major readily knows the answer as “Watership Down,” and the park ranger, who was a liberal arts major in college, agrees. Team Varied answers correctly, advances, and rolls the die. They land on Sports and Leisure. The English major rolls his eyes. “Don’t count on me for this one,” he says to his teammates.

The question this time is “What soccer player was known as The Black Pearl?” Again, the team members take a few moments to chat. They turn to the gym teacher, hoping her expertise in sports will pay off. As expected, it does, and the team confidently goes with her suggested response, “Pele!”

Our game continues, with Team Varied at the helm. Next topic – Geography. “How many U.S. states border

TEAM DIVERSITY

California?” The park ranger, who worked for five years in California National Parks knows the answer is three.

Now our piece lands on Science and Nature. Team Same, who was beginning to feel a bit despondent, perks up. Maybe they’ll get control back. The question is read: “Which chemical element is a primary component of fertilizers and is essential for plant growth?” Oh no, Team Varied’s farmer easily knows that the answer is Nitrogen.

At this point, you may be saying, I get the idea, but what does this game of Trivial Pursuit have to do with an insurance agency? Just as Team Varied, because of the diverse backgrounds, experience, and knowledge across the team, had a clear advantage over Team Same, organizations with employees who have diverse backgrounds, educations, and life experiences are at an advantage over organizations that don’t. Diversity brings with it a broader internal perspective and understanding within an organization which, in turn, positions an organization to serve the needs of a broader customer base.

Interestingly, it’s not just a matter of broader perspectives and knowledge. Studies have shown that diverse teams are more likely to question their assumptions, examine facts, and look at things objectively. Diverse groups, as a rule, share and process information more carefully than homogeneous ones, which tend to drive more accurate outcomes.

So, let’s apply this to an agency. Hypothetical Agency

A has 12 employees – they are all straight Caucasian women between the ages of 35 and 45 who grew up in Wilmington, DE. What are the potential disadvantages of an insurance agency that meets this demographic profile? I posed this question to ChatGPT. In the section that follows, ChatGPT’s answer appears in italics followed by a bit of commentary from me.

Employing only straight Caucasian women between the ages of 35 and 45 from Wilmington could lead to several potential disadvantages for an insurance agency:

Lack of diversity: By limiting the workforce to a specific demographic, the company may miss out on diverse perspectives, experiences, and talents that could benefit the organization. This lack of diversity may hinder innovation, creativity, and problem-solving abilities.

Comments: As was the case with Team Same in our hypothetical game of Trivial Pursuit, if we employ only

people with similar backgrounds and experience, our agency is limited – like an orchestra where everyone plays flute. There’s nothing wrong with the flute, but the fullness of the orchestra is dependent upon the richness, blend, and variety that comes from each instrument playing together.

Ineffective marketing and customer relations: Limiting the diversity of the workforce may hinder the company’s ability to effectively understand and connect with a diverse customer base. This could lead to missed opportunities for growth and customer retention.

Comments: You’re probably familiar with the saying that goes something along the lines of “Before you judge a person, walk a mile in their shoes.” While probably not its initial intent, this saying has relevance when considering the importance of diversity in an organization. Just as individuals bring unique perspectives shaped by their life experiences, a diverse employee base ensures that the organization is equipped to understand and address the varied needs of its customers.

To follow this metaphor through: An organization where some employees have “walked” in sneakers, others in steel-toed work boots, still others in high heels, and even a few that prefer bare feet, is better positioned to understand the needs of customers (and potential customers) who “walk” in those same shoes.

By building an employee base with a diversity of perspectives, the organization becomes better equipped to tailor its products, services, and interactions to meet the diverse needs of its customer base. If we fail to do so, the agency may inadvertently overlook or misunderstand the needs of customers who do not fit that mold. This can result in missed opportunities for engagement, satisfaction, and ultimately, customer retention.

Limited pool of talent: By narrowing the scope of eligible candidates, the company may struggle to attract and retain the most qualified individuals for various roles. This limitation could hinder the agency’s ability to adapt to changing market demands and technologies.

Comments: It’s a real challenge to find employees. To maximize your talent pool, it’s important to ensure that you are casting your agency’s recruiting net broadly. How do we cast a broad net? By posting positions in a wide

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range of places in search of candidates – not just talking to your neighbors and others in your social circle. By ensuring that job “requirements” truly are required for the job (is that college degree in business really needed for success?). By offering the option of remote work, wherever feasible. By considering non-traditional workers: second chance workers, semi-retired workers, part-time workers. By using inclusive language in job postings. All of these strategies will increase your talent pool and also increase the diverse nature of your prospective employees.

Negative impact on morale: Employees from other demographic groups may feel marginalized or undervalued, leading to decreased morale, productivity, and engagement. This could contribute to higher turnover rates and difficulty in building a cohesive team.

In the context of an insurance agency, where complex issues are addressed daily and innovative solutions are Continued FROM page 17

Comments: In the question that I posed to ChatGPT, my hypothetical agency had complete adherence to the gender, age, sexual orientation, and ethnicity of the defined profile. But what if the agency had 12 employees that fit the profile and then hired someone who didn’t fit that profile? Pretend that the new hire is you. You may see things differently than your co-workers and, as a result, you may feel marginalized or undervalued. You may struggle to connect with and contribute to the morning water cooler chat (is that still a thing?). You may feel uncomfortable speaking up at meetings, especially if your perspective is different than everyone else’s. This can lead to morale issues that in turn can impact your productivity and engagement. Statistics have shown that you’re much more likely to look for another job and to do so quickly. The more diverse the organization, the less likely it is that any one employee will look around and feel they don’t “fit in” and decide to take their talents elsewhere.

Potential for discrimination and regulatory compliance risks: Restricting employment based on race and age could raise legal concerns and accusations of discrimination. Discriminatory practices can result in regulatory investigations and penalties from government agencies, damage the company’s reputation, lead to lawsuits, and result in financial penalties.

Comments: We’ve been focusing on the benefits of a diverse workforce; however, we shouldn’t ignore the legal implications of hiring practices that are overtly discriminatory. Employment practices that favor a select group are against the law and create significant risk for the agency.

restricts its workforce to straight Caucasian women between the ages of 35 and 45 may face significant challenges related to diversity, legal compliance, talent acquisition, organizational culture, and market competitiveness ultimately impacting its long-term success and sustainability. Embracing diversity and inclusivity can foster a more vibrant and resilient workplace that better serves the needs of both employees and customers.

Obviously, the question that I posed to ChatGPT is extreme and hopefully unrealistic. However, it helps to point out the impact that lack of diversity brings.

Diversity isn’t just about meeting quotas or ticking boxes; it’s about recognizing and embracing the unique perspectives, experiences, and talents that individuals from different backgrounds bring to the table. Just as a variety of ingredients enhances the flavor of a dish or a diverse set of instruments creates a harmonious symphony, a diverse workforce enriches the fabric of an organization.

asset. A team composed of individuals from a variety of racial, ethnic, gender, sexual orientation, age, and cultural backgrounds brings a breadth of knowledge, creativity, and problem-solving approaches that, together, can lead to more robust decision-making and better outcomes for clients. And if that’s not the definition of a winning team, I don’t know what is.

Karen H. DiGioia provided this article on behalf of Herbein HR Consulting, IA&B’s contracted human resources consulting firm. As a benefit of membership, IA&B members can contact Karen for HR advice at 484-465-1201 or khdigioia@ herbein.com.

We’re with you every step of the way

IA&B MEMBERS ATTEND

LEGISLATIVE

CONFERENCE

Over 30 IA&B members from throughout Pennsylvania and Delaware traveled to Washington, D.C. this spring to attend the annual Big “I” Legislative Conference. The event brings together over 1,000 independent agents from across the country to talk with lawmakers about issues important to them and their clients.

Pennsylvania IA&B members met with nine federal lawmakers from Pennsylvania and their staff: Reps. Chrissy Houlahan (PA-06), Susan Wild (PA-07), Dan Meuser (PA-09), Scott Perry (PA-10), Lloyd Smucker (PA-11), John Joyce (PA-13), GT Thompson (PA-15), and Chris DeLuzio (PA-17), as well as Sen. Bob Casey.

Meanwhile, Delaware IA&B members met with all three federal lawmakers: Rep. Lisa Blunt Rochester, Sen. Chris Coons, and Sen. Tom Carper.

Topics of discussion during these legislative visits included flood and crop insurance, the hard market, and legislation to avoid a looming tax increase for many independent agencies in 2025.

If you’re interested in becoming more involved with IA&B’s advocacy efforts, or attending next year’s Big “I” Legislative Conference, contact IA&B Government Affairs Director John Savant at JohnS@IABforME.com or 717-918-9214.

“I truly appreciated attending the Big “I” Legislative Conference. I found value in the conversations with colleagues and legislators to move the needle on important insurance issues and to be at the heart of where the decisions are made. I would love to attend again next year!”

– Jessica Entwistle, Liberty Insurance Agency, Pittsburgh (pictured above left, with Ashley Stafford, Williams Insurance Agency, Rehoboth/Wilmington)

Top: IA&B's Delaware contingent meets with Rep. Blunt Rochester.

Middle left: Mark Sammarone and Kyle Rheiner, both of Arthur Hall Insurance, traveling between meetings.

Middle right: Jason Rodriguez, of Prominent Insurance Services, and Claire Pantaloni, of IA&B, traveling between meetings.

Bottom: Several of IA&B's Pennsylvania members in between meetings.

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VISION

A

MISSION STATEMENT

To serve as a driving force to champion independent agency success by educating, consulting, advocating, and fostering community in Pennsylvania, Maryland, Delaware, and beyond.

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Editor: Karen Robison KarenR@IABforME.com 717-918-9209

Contributing editors: Jennifer Ross, Megan Fioretta, Sarah Haas

Sales Account Executive: Rebecca Sieg | 717-430-2351 rebecca.sieg@theygsgroup.com

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