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ALSO INTHISISSUE: ________________ 12 trends to transform every career Do’s & dont’s of E&O policy reviews Insuring condo unit owners
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Contents PRIMARY AGENT MAGAZINE After the storm: insurance agents’ E&O lessons learned In the wake of a natural disaster usually comes a flood of E&O activity. Here, Fireman’s Fund’s Sally Combs offers an in-depth look at what the industry has seen following recent catastrophes and what agents can do to reduce their exposure.
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Page 12 IA&B Marketing Center Be an agent of change and support your regional Make-A-Wish® chapter. Then leverage your good deeds to demonstrate the vital role that you play within the community. The new Marketing Center provides opportunities to join in association-wide fundraising events, as well as resources to support agency-level charitable giving.
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Twelve certainties that will transform every career and create new ones The times, they are a-changin'. As technology continues to impact our lives, workers in today's ever-changing labor market need to be prepared. In this article, futurist Daniel Burrus forecasts 12 certainties that will transform the workforce.
Page 26 Mission Statement Primary Agent delivers ideas to help Insurance Agents & Brokers’ members negotiate their unique position as guardians of trust between insurance consumers and companies while facing the challenges of maintaining a small business. Primary Agent also supports IA&B’s mission to preserve and advocate the American Agency System.
Get social with IA&B
In every issue 4 5 6 8 10 15
Chair of the Board’s Message Member FAQ State News Preventing E&O Coverage Corner Glance at Events
22 25 IBC IBC IBC
Tools You Can Use IA&B Partners Advertisers Index Classified Ads Last & Least
Subscriptions: Non-member price: $2.25 per copy or $15 per year. All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two months prior to publication. Advertising rates furnished upon request. Address inquiries to: Primary Agent Editor 5050 Ritter Road Mechanicsburg, PA 17055-0763 Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347 Periodical postage paid at Mechanicsburg, Pa. and additional entry post office. Ride-along enclosed. Postmaster: Send address changes to above address. Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2013-6 is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.
Copyright 2013. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.
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Valley Forge Service Branch: 800.333.3622
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© Copyright Employers Mutual Casualty Company 2013. All rights reserved.
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Board of Directors
Norman F. Basso, CPCU
Officers
Chair of the Board’s
Norman F. Basso, CPCU Chair of the Board York, Pa. G. Greg Gunn, CIC Vice Chair of the Board Lemoyne, Pa.
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S
S
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Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P Immediate Past Chair of the Board West Chester, Pa.
Members
Sandy: our wake-up call
Joyce M. Bailey, CIC, CRM, CPIW Newark, Del. Henry “Butch” Bradley, Jr. Forest Hill, Md. Timothy P. Burris Mifflintown, Pa. N. Lee Dotson, CIC, AAI Wilmington, Del.
Whether you called it a hurricane, a post-tropical cyclone, a “superstorm” or “Frankenstorm” (remember that one?), Sandy was our wake-up call. Most of our agencies and our customers escaped without much harm, but the same cannot be said for our friends in New Jersey and New York. This month’s feature article offers a look at agents’ E&O lessons learned from recent natural disasters (think: Sandy and Katrina to name a few). Fireman’s Fund shares common missteps and how to avoid them.
Michael P. Ertel Columbia, Md. John L. Frankenfield Telford, Pa. John B. Hollister Milford, Pa. Diana M. Hornung Hanby, ACSR Wilmington, Del. Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa.
Beyond E&O prevention, I also encourage you to think about your agency’s emergency planning. IA&B provides a customizable business-continuity manual as a free benefit of membership. Visit www.iabgroup.com/EPM to learn more.
Michael F. McGroarty Sr. Pittsburgh, Pa.
June 1 marks the start of hurricane season. While last October’s storm is fresh in our minds, let’s use it to spur our efforts to protect our businesses — no matter what Mother Nature has up her sleeve. We are all busy, but please take just a little time to plan now. It will save you major headaches and will benefit your agency and customers later.
Craig S. Mader Gambrills, Md.
Until next month,
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Robert S. Klinger, LUTCF, CPIA Germantown, Md. Douglas A. Loesel, CPCU Erie, Pa.
Ann Gallen Moll, CIC Reading, Pa. Joseph R. Pastor, CPCU, AAI Oil City, Pa.
Norm Basso
April E. Ressler, CIC Altoona, Pa. Scott C. Rogers, CPIA* York, Pa. David B. Wasson Sr., CIC State College, Pa. Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** New Castle, Del.
* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director
Driving members to distinction. [4]
Member FAQ QUESTION: I insure a condo unit owner, but I’m not sure I fully understand the need for increased loss assessment coverage. Is it really needed?
ANSWER: How does the policy respond?
Like anything else, it is up to the customer to make a decision on what they want to cover and for how much. As a producer, however, you should offer the coverage and be able to explain how it works. Let’s look at it this way: If you offered the coverage and it was declined, you are obviously less vulnerable to an E&O claim than if you didn’t offer the additional coverage at all.
As a producer, you already know that ISO’s unendorsed unit owner’s policy (HO-6) only provides $1,000 of property loss assessment coverage and the same for liability. The increased loss assessment endorsement will allow the unit owner to select a different limit, e.g. $10,000. However, if you are using an ISO policy, the edition date for the HO 04 35 endorsement (Supplemental Loss Assessment Coverage) is important. The increased loss assessment form has recently been modified as part of the commercial changes implemented by ISO. This change is for the better, but what your carriers are using and what your customers have on their policies today may not match the new language. It’s important to keep that in mind as you review your accounts. Naturally, many companies use proprietary forms, and you should inquire as to your carriers’ position on this issue:
Initially, you may need to educate your customers about what loss assessment coverage is. Contrary to what some unit owners think, the insurance will not pay when they are assessed for a new roof, repaired sidewalks or new carpet in the hallways if they result from a maintenance expense. The coverage will only pay for an assessment that results from a covered cause of loss. Example of covered property claim — A new roof is needed after damage from a storm. The condo association’s policy deductible was $25,000 and unit owners are assessed a portion of that deductible.
w 10 00 version – even with a $10,000 increased limit, the unit owner’s policy still contains a $1,000 sublimit for any assessment that stems from a condo association deductible.
Example of covered liability claim — A significant payout is incurred after a child is severely injured on the premises. The condo association policy limits are insufficient, and all unit owners are assessed for the difference.
w 05 11 version – The endorsement does away with the $1,000 sublimit due to an association deductible. The coverage will be triggered up to the endorsement limit (in this case $10,000), even if the unit owner is assessed for the deductible.
That’s where loss assessment coverage comes in. In some cases, the loss assessment can be significant. Needless to say, it is not generally something the unit owners had budgeted for. In addition, in recent years, an increasing number of condo associations have selected higher deductibles to contain premium increases. This can affect a unit owner’s likelihood of being hit with an assessment. So, is the coverage useful? Yes.
Maryland members have an additional item to keep in mind: The condominium statute was amended to provide that a condo association may recoup the cost of the deductible up to $5,000 from a unit owner if the cause of damage originated from his or her unit, regardless of negligence. Whether this exposure will be covered under Coverage A or under an Increased Loss Assessment endorsement may also need to be a part of your discussion with the carrier.
DO YOU HAVE A QUESTION? Email it to us at iab@iabgroup.com. Please use “Primary Agent FAQ” in the subject line of your message. You can also fax your question to 717-795-8347. We look forward to answering your questions!
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State News Primary Agent | June 2013
Feds issue new Form I-9 Use the revised Form I-9 to comply with the U.S. Department of Homeland Security. As announced in Agent Headlines, the new form was mandatory as of May 7, 2013.
Member agents mix business with pleasure at annual convention Workers’ compensation reform, CE and networking headlined DAIAB’s 56th annual convention in Rehoboth Beach. Nearly 250 DAIAB member agents and company personnel attended the May 29-30 event, which is a staple gathering for who’s who in the Delaware independent-agent community. Highlights of the convention included: w A roundtable discussion with Delaware Compensation Rating bureau representatives and other stakeholders about workers’ compensation reform proposals w Two CE tracks with seminars taught by fan-favorites Jerry Milton and Betsy Tribendis w DAIAB Awards Luncheon recognizing the contributions of CSRs, fellow agents and company representatives who support the association A sincere thank-you to those who attended — and sponsored — the event.
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As a reminder, employers must maintain a Form 1-9 on file for everyone hired after Nov. 6, 1986. The forms are used to verify employment eligibility. DAIAB provides an online resource that explains the requirements and exceptions. Review DAIAB’s resource: www.iabgroup.com/de/ FormI9_FAQ.html (agency administrators only) Access DAIAB’s HR Solution: www.iabgroup.com/HR (agency administrators only) Download the new form: www.uscis.gov/files/form/ i-9.pdf
Sandy offers lesson in ordinance or law
New data-breach study makes some noise If a wall of security falls in an agency and no customers hear about it, does it raise an alarm? Unlike the tree-fallsin-a-forest philosophical experiment, there's no debating who should hear about a data breach. Delaware is one of 46 states that require notification. According to a report released this spring by The Hartford Steam Boiler, over half of U.S. small businesses fall victim to a data breach, but only onethird of those surveyed notified customers that their personal information was compromised. DAIAB's Web resource on the topic explains the state's Computer Security Breaches Act, when it applies and how to comply — including a sample notification letter.
The feds last spring announced new standards for Superstorm Sandystricken homeowners and businesses rebuilding with disaster aid. The move offers a stark reminder about ordinance or law exposure. Whether customers are affected by weatherrelated events or simply changes in the Construction Code since the dwelling was built, ordinance or law coverage often is overlooked. DAIAB’s online resource explains the coverage built into homeowners' and commercial property policies and when it can fall short. It also offers recommendations for producers, including a sample customer letter, for discussing possible gaps and endorsements. www.iabgroup.com/de/ ordinance_law
Take a Power Hour Get the scoop on the latest industry topics and trends in an hour’s time. As a reminder, DAIAB offers free, members-only Power Hour webinars every other month. Watch the DAIAB website and Agent Headlines for the latest offerings. And catch up on any you’ve missed. The library of ondemand Power Hour recordings (again, they’re free for members to access) include: w The Changing Façade of Homeowners’ Insurance – Are You Ready for the New HO Form? w Concurrent Causation: Coincidence, Happenstance or Just Dumb Luck? w Coordinating Condo Coverage w Extra-territorial Provisions: Drawing the State Lines on Workers’ Compensation
www.iabgroup.com/de/ privacy/breach
w NFIP Update w Online Gold Mine: Discovering Valuable Resources at iabgroup.com w Out of Dodge but Still in Danger: Hidden Coverage Issues for Vacated Properties www.iabgroup.com/ power_hour
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Preventing Primary Agent | June 2013
ERRORS AND OMISSIONS
WHEN WAS THE LAST TIME YOU READ YOUR E&O POLICY? The Utica National E&O Program supplied this article. Insurance Agents & Brokers Service Group Inc. is the exclusive agent for the Utica E&O program in Delaware, Maryland and Pennsylvania. For questions regarding this article or your E&O coverage, contact IA&B at 800-998-9644 or iab@iabgroup.com.
presented with an E&O claim, that the agency didn’t have the coverage the agent thought they did.
While most agencies have an errors and omissions policy, it is questionable whether they have the time to review it and truly know how to use it. Sometimes the situation is obvious, such as if you are presented with a summons and complaint, while other times it may be questionable whether it is appropriate to contact your E&O carrier. Because any two situations are rarely exactly alike, there are some good rules to go by – do’s and don’ts – that can help in these instances.
Know your limits and how they work. Typically, agents only have one time a year to modify their limits – at renewal time. In determining the “right” limit for your agency, realize that the size of the agency is not a determinant of the potential size of an E&O claim. Big claims happen even with small agencies. While E&O claims arising from personal lines tend to be smaller, big E&O claims happen with all types of agencies.
The do’s Read your E&O policy. This is great way to understand what your E&O policy covers and what it doesn’t. Every E&O policy has exclusions, so review them to determine to what degree those exclusions are of concern for your agency. Check to ensure you are covered for what you do and what you sell. Over the years, there have been many situations where the agent found out, after being
E&O limits are provided on a per-claim/aggregate basis, so don’t hesitate to ask the underwriter for options. Regarding the per-claim limit, $1 million is insufficient. Regarding the aggregate, secure a limit that is a multiple of the per-claim limit. For example, $2 million per claim/$6 million aggregate.
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Understand how the deductible works. Are you only required to pay the deductible if your agency is determined to be liable — or are you responsible for defense costs on claims even where your agency is absolved of any wrongdoing? If you are unsure, contact the underwriter or a representative of the agents’ association, if you secured coverage through it. Don’t wait for an E&O claim to occur to find out. Use the resources/expertise of your E&O carrier. Your E&O is more than just a policy. Most E&O carriers provide their agentcustomers with resources to help those agents manage their E&O exposure. In most cases, this involves the usual articles and tips. However, the staff of many E&O carriers (typically the claims and underwriting folks) are readily available to answer questions on procedures or a multitude of other E&O
matters. If a potential E&O matter surfaces, agents should not hesitate to contact the claims staff for their perspective. They will help guide you regarding your future actions. Report any claim, error or concern promptly. The earlier the agent advises the E&O carrier of an issue, the quicker the carrier can begin to begin its discovery to determine what happened. The don’ts Don’t admit liability or commit to a payment. Over the years, there have been situations where after an agent committed an error, he or she automatically presumed the E&O policy would pay. This is not always the case. An E&O policy is based on the concept of legal liability. In other words, if the agent made a mistake, legal liability would still need to proven before the policy will pay. There are many defenses E&O carriers can apply to eliminate or reduce the degree of the agent’s legal liability. For example, in most states the client has a duty to read his or her policy. By doing so, the client would be able to determine, hopefully before the claim, that coverage was not what they thought it was. If it was determined that the client did not read the policy, any eventual settlement could potentially be modified. It might be natural for an agent to want to admit they made a mistake and to advise a client that the agency’s E&O policy will pay. After all, the agent probably feels terrible and wants the customer taken care of. However, just as an agent advises a customer not to admit liability if the customer is involved in an auto accident, agents should follow their own advice. If a client suffers a loss only to find out they will not be fully
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The IA&B Sales Center staff invites agencies to contact them to learn more about their current E&O coverage or for a complete review of their insurance program.
800-998-9644, option 2 paid or not paid at all, the agency should contact its E&O carrier immediately for guidance/direction. An admission of liability could impair the ability of your errors and omissions carrier to settle the claim at the best possible terms. In some situations, it could actually jeopardize your E&O coverage. Other don’ts w Don’t approve any recorded or written statements concerning the alleged error or omission.
w Don’t discuss the matter with anyone other than your own personal counsel or E&O carrier representative. w Don’t allow the inspection, copying or removal of any records without discussing it with your E&O carrier. Your E&O is serious business In many respects, the decisions you make regarding your errors and omissions coverage – carrier, limit, deductible, etc. — are among the most important decisions you will make during the year, and can only be made before the claim. Yet the other set of decisions, those made after you have been presented with a claim, are equally important. Work with your E&O carrier to make sure you understand your coverage and how it works. This should give you the peace of mind to help you sleep better at night.
w Don’t alter or make changes to any records pertinent to the claim.
Coastal Homeowners Insurance ISO HO3/HO6 Immediate Quotes 15% commission on new and renewal business Primary and Secondary Homes are eligible.
For an appointment, contact:
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Coverage Primary Agent | June 2013
CORNER
CLAIMS CAN BE FUNNY
JERRY M. MILTON, CIC Jerry M. Milton, CIC teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He is also the education consultant for IA&B, working with CISR, CIC and continuing education programs.
When our insureds have a claim, we want to make sure they’re paid fairly and promptly. Most claims are fairly straightforward and are handled without any problems. However, once in a while, the claim reports may contain a funny sentence or two that will put a smile on your face. If you Google “weird insurance claims,” you’ll discover some of the bizarre statements claimants have made.
I ran down the steps and when I got to the end, my feet wouldn’t stop. My head injuries have created a permanent increase in my libido which has led to two affairs and has ruined my marriage. The doctor gave me a disease for my occupation and said I must change jobs.
Here are a few of my favorite statements made by Workers’ Compensation claimants. I inherited this occupational disease. I looked into the hose to see why the water did not come out. It came.
I was working on my job and got a pain at the end of the week. In performing the job of which I am capable, I didn’t know the machine was on and I was showing my new helper what not to do and I did. I over asserted myself and got a hernia.
I done something I shouldn’ta done, and now my back hurts.
The accident unnecessarily occurred on account of a misjudgment. Carrying roll roofing, I caught my toe on a piece of tin that was froze in the
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ground. The tin flipped against me, causing me to trip, letting the roofing fall into the bucket of tar. Tar splashed out, burning my arm, and causing me to jump back into the ladder, which fell against me, knocking me into the building, breaking my tooth. Thus, I was burned, bumped and broke. My favorite Workers’ Compensation claim supposedly occurred way back in the 1960s. I first read this claim in the mid-1970s, and I still laugh every time I read it. Here it is: Dear Sir, I am writing in response to your request for additional information in Block 3 of the accident report form. I put “lost presence of mind” as the cause of my accident. You asked for a fuller explanation, and I trust the following details will be sufficient.
I am a bricklayer by trade. On the day of the accident, I was working alone on the roof of a new six-story building. When I completed my work, I found I had some bricks leftover, which, when weighed later, were found to be slightly in excess of 500 pounds. Rather than carry the bricks down by hand, I decided to lower them in a barrel by using a pulley, which was attached to the side of the building at the sixth floor. The rope was secured at the ground level, and I went down and untied the rope, holding tightly to ensure a slow descent of the bricks. You will note that in Block 11 of the accident report form that my weight is 135 pounds. Due to my surprise at being jerked off the ground so suddenly, I lost my presence of mind and forgot to let go of the rope. Needless to say, I proceeded at a rapid rate up the side of the building. In the vicinity of the third floor, I met the barrel, which was now proceeding downward at an equally impressive speed. This explains the fractured skull, minor abrasions and the broken collarbone as listed in Section 3 of the accident report form. Slowed only slightly, I continued my rapid ascent, not stopping until the fingers of my right hand were two knuckles deep into the pulley. Fortunately, by this time I had regained my presence of mind and was able to hold tightly to the rope, in spite of the excruciating pain I was now beginning to experience. At approximately the same time, the barrel of bricks hit the ground and the bottom fell out of the barrel. Now devoid of the bricks, the barrel weighed approximately 50 pounds. I refer you again to my weight of 135
pounds. As you might imagine, I then began a rapid descent down the side of the building. In the vicinity of the third floor I met the empty barrel coming up. This accounts for the two fractured ankles and severe lacerations of my legs and lower body. Here my luck began to change slightly. The encounter with the barrel seemed to slow my descent enough to lessen my injuries when I fell into the pile of bricks and fortunately only three vertebrae were cracked. I am sorry to report, however, that as I lay there on the pile of bricks, in pain, unable to move, I again lost my presence of mind and I let go of the rope, and I lay there watching the empty barrel descend directly onto me. That explains the two broken legs. Regards, All of the above are purported to be true. I don’t know if they are or not. I don’t really care. They add a little bit of levity to my life. I know this article did not advance nor add to your knowledge of insurance at all. However, I hope it brought a smile to your face and gave you a chance to laugh a little.
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[ 11 ]
ERRORS & OMISSIONS
After the storm: insurance agents’ E&O lessons learned How natural disasters expose agencies
In the wake of a natural disaster usually comes a flood of E&O activity. Here, Fireman’s Fund’s Sally Combs offers an in-depth look at what the industry has seen following recent catastrophes and what agents can do to reduce their exposure.
Primary Agent | June 2013
M M
ore often than not, a second wave of claims against insurance agents by their clients follows a natural disaster. As parties find themselves without the coverage they expected after a catastrophe, it appears to be a natural reflex for them to look to their insurance agents and brokers to fill the perceived gap. Sometimes, this second wave, for whatever reason, is just a ripple. Katrina, following on the heels of a year that saw four major storms sweep through Florida, generated a veritable tsunami, as did Ike. It [was too early at the writing of this article] to predict what kind of E&O activity will follow Sandy.
For the most part, the types of allegations and claims that surface after an individual loss (such as a house fire) are the same we see after a catastrophe, just on a greater scale because of the number of people impacted — failure to procure a certain kind of coverage, failure to place coverage at all, failure to obtain adequate limits or failure to advise certain coverage was necessary. But there are certainly best practices that can minimize the resulting exposure and enhance the likelihood of a successful defense. To some extent, the claims following the string of hurricanes we experienced in 2004 and 2005, and particularly after Katrina, or Ike, have their own characteristics. The number, severity and landfall of hurricanes vary from year to year, but certainly exposure exists in most eastern and Gulf coastal areas during every season. Therefore it is useful to look at the common causes of E&O claims, along with suggestions about possible ways to prevent or minimize the losses. It will be impossible to completely eradicate claims by clients who feel they lack the insurance coverage they needed to compensate them following a natural (or manmade) disaster, just because we operate in a very litigious society. The fact that a claim is made does not necessarily mean that there is liability on the part of the agent, as there are often viable defenses to such claims. Following certain best practices can help to eliminate some of the problems that lead to claims in the first place, enhance the prospect of a successful defense, and reduce the impact of the claims that are made. Before we embark on a discussion of the actual claims patterns, however, we want to ask the agency force:
Hope for the best, prepare for the worst Hurricanes, fires, floods, chemical spills, pandemics … the emergencies that could threaten a small business’s livelihood are endless. But member agency owners can prepare for the worst with IA&B’s Emergency and Business Continuity Planning Manual. The Web-based manual walks agency owners through cataloging their business contacts, outlining their operational needs, prioritizing their critical functions and completing risk analyses. The information personalizes a plan, which includes timelines, implementation guidelines and recommendations for an agency in crisis. The finalized manual is stored online, so an agency can access it anywhere with an Internet connection. www.iabgroup.com/EPM
How prepared are you? Agents live and work in the same communities as their customers and are just as vulnerable to the effects of a hurricane or other natural disaster. Not surprisingly, a number of agents saw their offices seriously damaged, destroyed or made inaccessible after Katrina, Ike and Sandy. What was a
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ERRORS & OMISSIONS
surprise following Katrina and Ike was the number of agents that completely lost all of their records, did not have them backed up and had no plan in place to resume business as rapidly as possible. This made defense of claims that were made against them particularly difficult, especially as key employees dispersed and were hard to contact. So far, we have not seen the same issues post Sandy. The key is planning for recovery. While many agents’ clients have disaster recovery plans, those same plans may be deficient among the agents. Disaster recovery planning is not new. There are many vendors available that provide temporary staff, technology, communications, connectivity, space and power recovery after the unthinkable happens, relatively inexpensively. However, many agents don’t perceive an exposure because they “are not near a flood plain,” “don’t live near the coast” or “have never been sued by a client.” The fact is an
agency needs a recovery plan, including off-site data storage, to cope with post-disaster losses, not just to aid in their own defense, but to keep their business running efficiently.
Wind and flood coverage problems It can’t come as any shock that following a hurricane, most E&O claims arise from some problem with wind or flood coverage, especially as the standard market restricts its writings in hurricane-prone areas, making it necessary to obtain coverage through special markets, wind pools and the NFIP. Let’s look at some of the specific issues: No coverage in place at the time of the storm; delayed submission or failure to submit paperwork Coverage is not effective in wind pools, the Fair Plan or NFIP until the application and premium payment are received by the Plan. Many of the claims we have seen involved instances in which the insured
agent took an application and premium payment from their client, and then for some reason delayed sending it in or simply failed to do so at all. In other instances, it appeared that the paperwork was mailed, but the Plan claimed to never have received it, and there was no proof of mailing in the agent’s file or follow-up to see what had happened when the policy was not timely received. By the time the problem was detected, either a moratorium was in effect (as the storm approached the area), or the storm had hit and the damage was done. Beyond making sure that clients understand exactly when their coverage is to become effective (such as when the carrier receives and accepts the risk, when premium is paid, after any applicable waiting period, etc.), having clear written (and enforced) procedures in place for processing, placing and tracking business is essential for any agency. It sounds simple, but breakdowns in
Glance at Events JUNE CALENDAR
Date
Topic
Location
3-4
James K. Ruble Graduate Seminar
Annapolis, Md.
4
William T. Hold—Commercial Lines
Mechanicsburg, Pa.
CISR—Elements of Risk Management
Pittsburgh, Pa.
E&O Risk Management
Erie, Pa.
William T. Hold—Commercial Lines
Hagerstown, Md.
6
Power Hour—Lease Exposures Exposed
12:00 Noon – 1:00 p.m.
11-13
P&C Licensing Study Course
Lehigh Valley, Pa.
L&H Licensing Study Course
Mechanicsburg, Pa.
13
Commercial Changes Seminar
Altoona, Pa.
17-20
CIC—Agency Management
Erie, Pa.
CIC—Life & Health
Lancaster, Pa.
18
CISR—Personal Residential
Wilkes-Barre, Pa.
19
CISR—Personal Residential
Philadelphia, Pa.
20
CISR—Elements of Risk Management
Baltimore, Md.
25
Dynamics of Services
Lehigh Valley, Pa.
26
CISR—Commercial Property
Lancaster, Pa.
5
POWER HOUR • JUNE 6 • 12:00 NOON - 1:00 P.M. IA&B’s Power Hour is a free, member-only webinar held every other month on topics of immediate concern to agents. These live, hour-long webinars are led by industry topic experts who can speak to member concerns and offer valuable solutions. LEASE EXPOSURES EXPOSED Covering leased properties can easily lead to oversights and errors. There are several moving parts that need to be examined closely. As a result, the lease or the policy, or both, may need to be adjusted to work together. Miss that step and you potentially have a coverage gap. To help us weed through the hazards of lease exposures, Jerry Milton, CIC, will walk us through property leases, explaining standard contractual provisions and how to properly endorse the policy so that it may respond. The presentation is sure to debunk a few myths, and will break down the issues by reviewing: ◗ the indemnification provision of the lease ◗ who insures the building (property owner or tenant), and resulting problems that arise ◗ waivers/releases and legal liability ◗ proper treatment of improvements and betterments and coinsurance issues For more information or to register, go to: iabgroup.com/powerhour
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ERRORS & OMISSIONS
Best practices can help to eliminate some of the problems that lead to claims in the first place, enhance the prospect of a
successful defense, and reduce the impact of the claims that are made.
communication and process are a frequent cause of E&O claims. What procedure is to be followed once a producer takes an application? Is it immediately entered into a tracking system? Is it clear who is responsible for taking the next steps to get the application (and premium) to the appropriate carrier or plan? What process is in place to follow up if the policy is not received in a timely fashion from the carrier and transmitted to the client?
Are efforts to follow up documented? Do you maintain proof of mailing when critical time-sensitive documents are transmitted? Who checks the coverage to make sure it matches what was requested and follows up to seek corrections if there are errors? If you do not have written office procedures in place, there are vendors that provide off-theshelf templates that provide an excellent foundation which can be customized to fit an agency’s unique requirements. Once the procedures are established, it is important that all employees within an agency clearly understand them and that full compliance is required. Many successful agencies have quality-control measures in place to track compliance with the processed applications to assure that everything is running smoothly. Evidence of insurance provided at close of escrow before premium paid and submitted Banks or other lenders typically require that insurance is procured to protect their collateral, and they want assurance that required coverage is or will be placed before they will proceed with closing on real estate transactions. In a number of instances, agents provided binders or other evidence of flood or wind coverage at the
[ 16 ]
time of closing, before the premium was paid. However, while this practice is appropriate when a standard homeowners’ policy is involved (because coverage can be bound by the agent without payment of the premium), no coverage placed with the wind pool or flood plan is effective until the premium is actually paid and submitted to the Plan. Further, the agent has no authority to bind the Plan to coverage. Thus, when the storm(s) struck just a short while later, there was no coverage in effect, and the Plan(s) would not honor the unauthorized binder. The banks and property owners claimed that the binders led them to believe that coverage was actually in place and that they did not understand that coverage was contingent on premium payment. Had they understood this, they claimed, they would have immediately tendered payment so coverage became effective. The error made is understandable, and also preventable. The agent can provide the coverage quote and other evidence of coverage that will be in place once the premium is paid, with clear notice that the coverage will not, in fact, become effective until that happens and the application and payment are received by the Plan. If there is a waiting period that may
Primary Agent | June 2013
apply, this should also be noted. Of course, when the agent receives the premium, they should promptly submit it with the request for coverage to the Plan, keep a record of the transmittal and track on diary until policies have been issued and received. No contents coverage on wind or flood policy In some instances, the agent in question simply misunderstood that when a carrier moved to exclude wind coverage from the homeowners’ policies they wrote in hurricane-prone zones, that the restriction also applied to contents coverage. While they diligently replaced dwelling coverage in the applicable wind pool, contents coverage was not included, and when Katrina struck, the involved customers were consequently without wind coverage for their contents. More often than not, though, there was no record in the agent’s file of a specific request for contents coverage, or no indication this had been offered and declined. When the client found themselves without contents coverage after the hurricane(s), they looked to their agent, raising a variety of allegations: that a specific request was not acted on; that the agent should have pointed out the need for the coverage; that the agent should have understood the
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client wanted/needed the same coverage they had on their homeowners’ policy, etc. These claims are difficult, as while the reality may be that the clients only procured the insurance their lender required (the dwelling coverage), they rarely will admit that is the case. Likewise, the nature of the relationship an agent has with his or her client may not place them in a position of having any duty to advise the client of the coverage they should have. However, having no documentation at all to counter the claims by the client can impair the ability to defend the
agent, especially given the propensity of juries to “side” with the party they perceive to be a victim when there is an uncovered loss. Therefore, legal duty questions aside, it may be advisable for agents to document offers of coverage, automatically provide quotes for contents coverage when dwelling coverage is requested, quote wind and flood coverage, and then maintain documentation when the client declines the coverage offered. In addition to greatly enhancing the chances of a successful defense of an E&O claim, this practice could also increase
ERRORS & OMISSIONS
Using replacement cost estimators without fear Arming oneself with a disclaimer can be the best protection when handling a double-edged sword like replacement cost estimators. IA&B offers members a disclaimer that producers can use and tailor to their agency as they see fit. www.iabgroup.com/de/ rc_estimator
agency revenues as customers accept the additional coverage offered.
(Lenders require flood coverage to be in place typically only when property is in Flood Zone A). As in the case of contents coverage, the agent may not have a legal duty to offer the coverage to their client. However, if a written offer was made to every client in areas potentially subject to flooding, with the rejection of the coverage documented, it is very likely that many of the suits that arose would have been easily defended. Most parties in Mississippi and Louisiana are no doubt acutely aware of the need for flood coverage in certain areas—even those that rarely saw flooding in the past. What about in other areas, such as the Northeast, that has not seen a serious hurricane strike for a long time? Would now be an excellent time to remind your clients of the potential exposure and provide quotes for the coverage?
No flood coverage at all
No coverage for other structures or pool cages
This is very similar to the situation involving the lack of contents coverage. As has been highly publicized, many parties have claimed that they did not have flood coverage because their agent allegedly told them “they did not need it,” either because the homeowners’ coverage they had in place covered “hurricane damage,” or because it was not “required.”
Citizens (in Florida), state wind pools, the Fair Plan and the NFIP have specific rules regarding how coverage applies to separate structures, docks or, as we most commonly saw, pool enclosures. In some instances, coverage must be separately applied for the structure to be insured, or specifically requested at the time of application. It is
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extremely important to stay on top of each Plan’s requirements and procedures, make sure that you ask the client the appropriate questions when taking an application, and document all conversations and transactions to avoid problems
Inadequate limits Insurance limits that are insufficient to cover the clients’ damage have long been one of the top causes of E&O claims, whether following on the heels of a catastrophe or not, but are magnified following a disaster because of the spike in construction costs that typically follows an event involving damage to many parties. There are a number of problems that commonly arise. Inadequate dwelling or contents limits overall For the most part, we would like to say that it is the client’s obligation to assure that the coverage they purchase is adequate to meet their needs. When the client specifies the limits to be obtained, there is generally no responsibility on the part of the agent to confirm that the amount procured is inadequate. It is when the agent supplies the limits or assists in their calculation that problems can arise. Then, the agent will likely be held to a standard of using reasonable care to assure that the limits selected are “correct.” When they turn out to be insufficient,
Primary Agent | June 2013
form calculator instead of the more detailed format.
they are subject to attack by the client. Here are some of the more common problems we have seen in the limits arena:
◗ We have had clients say they asked for higher limits and, instead of turning the request into the carrier, the agent has told them that the amount generated by the “cost estimating” system is the maximum the carrier in question would offer, without referring the request to the carrier.
◗ Agents estimate the square footage used to calculate replacement cost without verifying the correct amount. ◗ Agents calculate replacement cost using a replacement cost estimating system and do not adequately account for upgrades in the client’s property or using the short
It sounds simple, but
breakdowns in communication and process are a frequent cause of E&O claims.
◗ Agents set limit based on purchase price, or ask for a real estate appraisal. The
Cross-Sell Strategy
#21
EPLI COVERAGE
“ Addressing the growing concerns of clients can grow your business.” Paula Hutchinson, Kansas City Branch Senior Marketing Representative Employee lawsuits are more likely to occur than a fire. Include EMC’s Employment Practices Liability coverage to make certain your clients are protected from all the risks they may face. It’s just one of the many reasons policyholders Count on EMC®.
Valley Forge Service Branch: 800.333.3622
|
www.emcins.com
Home Office: Des Moines, IA
© Copyright Employers Mutual Casualty Company 2013 All rights reserved
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ERRORS & OMISSIONS
reviewed for the adjustment that may be necessary because of upgrades.
Don’t take business interruption coverage for granted Read up on the benefits, and how to avoid the pitfalls, of business interruption coverage. www.iabgroup.com/de e_o/bus_interruption_cvg
problem with this approach is that the cost to rebuild is not the same as appraised value, and the purchase price can be higher or lower than that cost. (This could also lead to limits that are too high, in that appraisals typically include the value of the land on which the property sits.) ◗ Owners advise the agent that they have engaged in property renovations, but this information is not forwarded to the carrier, and the limits are not
◗ In other instances, the agent maintains higher limits were suggested, but were declined by the customer, yet there is no written documentation in the agent’s file of either the offer or the rejection. The limits on the wind or flood policy are lower than those on the homeowners’ policy We understand that the limits on the policies obtained are often the amounts the client requests, or are the minimum amount the client is required to carry by their lender. We also realize that while the homeowners’ limits may be automatically increased by the carrier over time, this is not the case with the wind or flood policy. We are not suggesting that there is necessarily a legal duty on the part of the agent to assure the limits are consistent, but a “prevention” best practice would be to have clear documentation regarding how the limits were established, sending a letter to the client that they should let you know if they desire higher limits at any time, asking whether an adjustment is desired on the wind or flood policy when adjustments are made to the HO limit, and documenting the response.
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The main point to keep in mind when it comes to assisting a client with the establishment of limits is that if they end up being inadequate, you will be the first party they turn to for recovery of the difference. Attention to detail, accuracy and documentation, as well as employing the assistance of the carrier, are all practices that will help minimize the impact of the E&O claims that will inevitably follow.
Coverage bound outside of carrier guidelines Because carriers tend to limit their exposure in catastropheprone areas, it is very important that agents with binding authority be very familiar with their carriers’ guidelines and appetite to assure there is no violation of requirements. A fair number of the claims we have received over time are those by the carriers seeking recovery from the agent for the losses they sustained when the agent bound them to a risk that was ineligible for coverage and they were consequently required to respond to a claim.
Confusion regarding how off premises power failure and sewer/water backup coverages apply Commercial claims The majority of claims we see after a catastrophe have been generated by personal lines accounts, but commercial
Primary Agent | June 2013
account claims are on the rise. Many of the same issues present in the personal lines arena appear in commercial claims. Some of the more common additional problems leading to claims: ◗ No, limited or inadequate business interruption coverage ◗ No coverage for off-premises power failure (and confusion regarding how the coverage applies, as well as the various endorsements/levels of coverage available in the marketplace). For example, some forms exclude coverage for loss due to damaged overhead power lines, and many forms also contain flood exclusions. There are separate endorsements available for direct damage/food spoilage, etc.
_____________________________________________
Sally Combs, technical director, professional liability claims, at Fireman’s Fund Insurance Company, authored this article. This publication provides general information and recommendations that may apply to many different situations or operations. Any recommendations described in this publication are not intended to be specific to your unique situation or operation. Consult with your staff and specialists to determine how and whether the information in this publication might guide you in developing specific plans or procedures for your situation or operations. This publication does not substitute for legal advice, which should come from your own counsel. © 2013 Fireman’s Fund Insurance Company, Novato, Calif. All rights reserved.
◗ Lack of flood coverage at a particular location ◗ Application of a coinsurance penalty because limits were inadequate ◗ Inadequate limits because a policy has been changed from a blanket limit to a specified location limit and the specific location limit is inadequate Do you employ the use of a written exposure checklist to aid you with identifying the coverage a commercial risk may require? Do you put all quotes and proposals in writing and document any time the coverage is rejected by the client? Are all of the binders you issue authorized by the carrier, and if they are issued by an intermediary broker or the carrier, are they consistent with the coverage requested? Do you review applicable forms and compare the policies issued with the coverage requested? These are all practices that may help minimize any E&O claim you may face. This is a very broad overview of the claims made against insurance agents after the hurricanes of the last decade. As we head into another hurricane “season,” now is a good time to review your procedures to see what you can do to help you avoid the next “ second wave.”
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®
a Berkshire Hathaway company A strong company just got stronger! We are proud to have joined the Berkshire Hathaway Group – and give you one more reason to consider requesting a GUARD agency appointment. Visit www.guard.com/apply or call 800-673-2465, ext. 4567! Property and casualty insurance for small- to mid-sized employers – workers’ compensation coverage is our traditional specialty.
Tools
YOU CAN USE
Quick Response (QR) Code
QR
(or quick response) codes are showing up everywhere – on milk cartons and business cards, in bus shelters and instruction manuals, on museum exhibits and sporting-event tickets … even on the Facebook headquarters’ rooftop. So what are these mysterious barcodes and what could they mean for your agency?
First developed in the early ‘90s to track vehicles during manufacturing, the two-dimensional codes are now common in advertising and packaging. Smart phone users download an app that allows them to scan the QR code, which typically includes a hyperlink sending them to a designated Web page. The possibilities are endless for your agency, but a few best practices follow.
Choose a mobile device-optimized landing page
Shorten the destination URL to improve “scanability”
Scan with smart phone to access QR code ideas for agents.
Test the code before publishing Make the scan worth their while
Provide instructions near the code
Creating a QR code is simple — and free. Enter “create QR code” in a search engine and choose from numerous vendors. Generating your own code is instantaneous.
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DAIAB Marketing Center Make-A-Wish support ®
Confirm your commitment to community
Be an agent of change and support your regional Make-A-Wish chapter. Then leverage your good deeds to demonstrate the vital role that you play within the community. DAIAB makes it easy to join the cause, the cause that Trusted Choice ® agents across the country are supporting. And collectively, when independent agencies unite to support the Make-A-Wish Foundation, the benefit of their generosity on the charity — and the secondary benefit of advancing the image of the independent agency system and the Trusted Choice brand — grow exponentially. The DAIAB Marketing Center provides opportunities to join in association-wide fundraising events, as well as resources to support agency-level charitable giving.
Resources: Contacts: Find your regional Make-A-Wish chapter and its contact information. Make-A-Wish staff help small businesses like yours do big things for charity every day. They’re available for help coordinating a fundraiser or to attend your event. Events: Learn what DAIAB has planned to support MakeA-Wish. Your association will spearhead events throughout the year that agencies are encouraged to join. Previous fundraising efforts included a Jeans for Wishes ® day and support of a Walk-for-Wishes in Washington, D.C. Materials: Rely on Make-A-Wish for fundraising ideas and marketing materials to launch and sustain them. Member agencies have access to the Wishmakers At Work ® website for everything from online banner ads to posters to gain employee buy-in and the community’s support. Donations: Use the DAIAB-specific online donation portal to support Make-A-Wish. Instructions also share where to mail checks. All monies will be earmarked as part of the “Insurance Agents of Change” campaign.
Marketing Center tip! Toot your own horn! When consumers see their insurance agency doing its part to better the community, your image improves and their trust and loyalty grow. Look no further than DAIAB’s PR/media relations resources within the Marketing Center for template press releases and a media contact database. Visit the Marketing Center: www.iabgroup.com/de/marketing
Platinum Profile Insurance Agents & Brokers proudly recognizes Berkley Mid-Atlantic Group as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.
FEATURED PARTNER Berkley Mid-Atlantic Group
PRESIDENT & CHIEF EXECUTIVE OFFICER Kevin W. Nattrass
COMPANY LOCATIONS Home Office, Glen Allen, Va. PA/OH Region, Harrisburg, Pittsburgh & Erie, Pa. Capital Region, Glen Allen, Va. Carolinas Region, Charlotte, Nc. 1-800-283-1153
A.M. BEST RATING “A+” (Superior)
WEBSITE www.wrbmag.com
Berkley Mid-Atlantic Group's home office in Glen Allen, Va.
B
erkley Mid-Atlantic Group (BMAG®) is a regional commercial property and casualty carrier organized into three full-service territories with local claim, underwriting and risk management teams located close to its customers and policyholders. BMAG®’s policies are issued exclusively through independent agents serving clients throughout the Mid-Atlantic Region, including Delaware, Maryland, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia and Washington, D.C. BMAG® is a member company of W. R. Berkley Corporation, an insurance holding company founded in 1967 that is among the largest commercial lines writers in the United States.
BMAG® takes a generalist approach to underwriting, with a focus on middle market commercial accounts within the service, manufacturing, retail, construction, wholesale and finance industries. Additionally, with its Marine and Select Market divisions, BMAG® offers niche-oriented coverages for transportation, schools, social services and public entity organizations. BMAG®’s business approach is predicated on sound, disciplined underwriting practices, always “doing the right thing” for agents and policyholders and is further exemplified in its core values of.... The carrier is committed to “Insuring the Future of Business”® through its independent agency relationships.
Listed below are those companies that strongly support the independent agency system and Insurance Agents & Brokers. Thank you for your continued sponsorship.
WHAT IS IA&B PARTNERS? The IA&B Partners program gives company and allied businesses the opportunity to demonstrate their commitment of support to independent agents and receive maximum market exposure. As an IA&B Partner, you will also realize the benefits of IA&B membership to help you succeed in the insurance industry.
DO YOU SEE YOUR NAME? To become an IA&B Partner, choose the sponsorship package that matches your commitment of support. Contact the Member Sales Center at 800-998-9644, 717-795-9100 or visit us online at www.iabgroup.com to get started.
PLATINUM LEVEL
BRONZE LEVEL
ACUITY Berkley Mid-Atlantic Group Donegal Insurance Group Erie Insurance Group Harleysville Insurance HM Insurance Group Insurance Agents & Brokers Service Group Inc
Aegis Security Insurance Co
Liberty Mutual Insurance
Encompass Insurance
MMG Insurance Company Millers Mutual Group Millville Mutual Insurance Co Mutual Benefit Group Penn National Insurance Selective Swiss Re The Main Street America Group Utica National Insurance Group
First General Services
Agency Insurance Company AmWINS Program Underwriters Inc Auto-Owners Insurance Company Briar Creek Mutual Insurance Company Builders Insurance Group Chubb Group of Insurance Companies Countryway Insurance Company
Foremost Insurance Group Goodville Mutual Casualty Company Guard Insurance Group Harford Mutual Insurance Co Hanover Fire & Casualty Insurance Company Insurance Alliance of Central PA Inc Insurance House Insurance Placement Facility of PA Keystone Insurers Group Inc
GOLD LEVEL ISU Insurance Agency Network Progressive Westfield Insurance
SILVER LEVEL Access Insurance Company Allied Insurance American Mining Insurance Co Cumberland Insurance Group Frederick Mutual Insurance Co Juniata Mutual Insurance Co PSBA Insurance Trust The Philadelphia Contributionship
Lebanon Valley Insurance Company Mercer Insurance Group Merchants Insurance Group Mercury Casualty Penn PRIME Municipal Insurance Reamstown Mutual Insurance Company Rockwood Casualty Insurance State Auto Mutual Insurance Company TAPCO Underwriters Inc The Brethren Mutual Insurance Company The Motorists Insurance Group The Mutual Service Office Inc Travelers Tuscarora Wayne Insurance Company Zenith Insurance Primary Agent June 2013
Primary Agent | June 2013
Technology U P DATE
12 CERTAINTIES THAT WILL TRANSFORM EVERY CAREER AND CREATE NEW ONES
DANIEL BURRUS Daniel Burrus is considered one of the world’s leading technology forecasters and business strategists, and is the founder and CEO of Burrus Research (http://www.burrus.com/), a research and consulting firm that monitors global advancements in technology driven trends to help clients understand how technological, social and business forces are converging to create enormous untapped opportunities. He is the author of Flash Foresight (available at www.amazon.com).
As technology continues to impact our lives, workers in today’s ever-changing labor market need to be prepared with skills to adapt and succeed in the workplace. The problem is, we live in an uncertain world, and because of the high levels of uncertainty we all face, people of all ages and career levels are finding it difficult to know what new skills to learn, what courses to take, and what degrees to get that will provide them with the most opportunity going forward. Uncertainty keeps us stuck in the present.
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Certainty, on the other hand, gives us the confidence to make a decision, to move forward, and to invest time and money to learn new things. Over the past thirty years, I have developed and proven the power of the science of certainty. The science of certainty involves a scientific method of separating Hard Trends – trends that will happen – from Soft Trends – trends that might happen. This method is currently being used by many Fortune 500 companies including IBM, Deloitte, and Pratt & Whitney to name a few, to provide an accurate roadmap of the opportunities that are ahead.
Primary Agent | June 2013
That’s why I’m launching a list of 12 Certainties that will transform every career, and create new ones. By providing an accurate roadmap for anyone who wishes to increase their personal career relevancy in a world of transformative change, you can now make career and education decisions with confidence. The list highlights technologies that are now, and will continue to transform present and future careers. As you read through the list, ask yourself how each one will play a key role in your industry and your personal career path.
1. Mobile Hardware, Software and Services will continue to rapidly evolve creating many new careers, as all phones become smartphones and our primary computer and tablets continue to evolve as our laptop replacement. This new level of mobility will allow any size business to transform how they market, sell, communicate, collaborate, educate, train and innovate.
2. Remote Visual Communications will become a primary relationshipbuilding tool for businesses of all sizes as employees use smartphones, tablets and laptops, in combination with current video conferencing systems, to communicate at new levels with customers, partners and employees.
3. Social Business Enterprise Management will grow rapidly as organizations shift from an Information Age “informing” model to a Communication Age “communicating and engaging” model. New careers will emerge as Social Software for business rapidly
grows with applications to enhance relationships, collaboration, networking, social validation and more. Social Search will increasingly shape careers as marketers, researchers and those on Wall Street create applications and services to tap into millions of daily tweets and Facebook conversations, providing real-time analysis of many key consumer metrics.
4. Cyber Security and Forensics
More tech-know The world of technology — inside and outside of the agency — is changing rapidly. The DAIAB website contains a plethora of resources to keep you up to speed on: w Agency workflows w E&O
careers will grow rapidly as we become increasingly connected and dependent on computer systems and machines using intelligent sensors connected to just about everything. Careers in data and information forensics will grow rapidly as the need to solve cyber crimes increases.
w Emerging trends in technology
5. Additive Manufacturing
w Website & Internet
(3D Printing) will create many new careers in manufacturing as this revolutionary technology allows any size company to manufacture quickly, locally and with far fewer costs. Additive manufacturing builds things by depositing material, typically plastic or metal, layer by layer until the final product is finished. Examples of final products today include jewelry, iPhone cases, shoes, car dashboards, parts for jet engines, prosthetic limbs and much more.
6. Gamification of Education will create many new careers as corporations and educational institutions at all levels accelerate learning by using advanced simulations and skill-based learning systems that are self-diagnostic, interactive, game-like and competitive, all focused on giving the user an immersive experience thanks to a photo-realistic 3D interface.
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w Industry issues w Managing technology w Marketing w Security/identity theft
Log on to learn more. www.iabgroup.com/de/ technology
7. Cloud Services and Virtualization will be increasingly embraced by businesses of all sizes, as this represents a major shift in how organizations obtain and maintain software, hardware and computing capacity. IT is rapidly becoming an on-demand service that is rapidly transforming all business processes resulting in a rapid evolution of current careers as well as creating new careers in every functional area.
TECHNOLOGY UPDATE
8. Big Data and Real-Time
11. Connected Intelligent
Analytics describe the technologies and techniques used to capture and utilize the exponentially increasing streams of data with the goal of bringing enterprise-wide visibility and insights to make rapid critical decisions. This new level of data integration and analytics will require many new skills and cross-functional training in order to take advantage of new opportunities as well as breakdown the many data and organizational silos that still exist.
Objects using chips, microsensors and both wired and wireless networks will create a rapidly growing “Internet of things” sharing real-time data, performing diagnostics and making remote repairs. Many jobs will be created as we add intelligent connected sensors to bridges, roads, buildings, homes and much more. By 2020, there will be well over a billion machines talking to each other and people will install them.
9. Intelligent ePersonal Assistants using natural language voice commands was launched with Apple’s Siri, which was rapidly followed by Google, Microsoft and others all offering what will become a mobile electronic concierge on your phone, tablet and television. The technology will rapidly evolve and soon every profession from retailers to maintenance workers will have a Siri-like assistant. Adding an e-personal assistant to support an existing product and/or service will create many new careers.
Automation will take a giant leap forward thanks to networked sensors, artificial intelligence, and Siri-like voice communications, taking the next level of repetitive jobs from humans. This will create many new career opportunities from design, programming and installation to service and maintenance, to name just a few.
10. 3D Web will transform today’s Internet experience (which is like looking at a flat piece of paper with a few photos, embedded video and a few hyperlinks) to a true 3D experience, similar to todays video games, where you can virtually walk into a showroom, look around and both listen to and see the new car you are interested in, or whatever the website is trying to show you. This will employ many new graphic artists, designers and programmers.
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12. Advanced Robotics and
You don’t have to know the physics of a telephone in order to use it. You do have to know it exists and how to creatively use it to accomplish your goal. Don’t wait until next year, or the year after, or until you’re laid off. Invest the time to identify what you need to learn right away so that you will thrive both now and in the future, either in your current career or a new one.
Classified ADVE RTI S E M E NTS
SOUTHEAST PA PRODUCERS & AGENCIES Professional agency since 1926 located in Feasterville, Bucks County, Pa. Call for confidential information and a review of our services. Contact Ray Reinard at 215-375-8600, Ext. 119.
If you would like to place a Classified Advertisement, simply fax your ad on company letterhead to 717-795-8347, and we will take care of the rest.
Ad Index
Top wedding insurance claims Welcome to the wedding season — one peppered with awkward toasts, never-ending first dances and, yes, insurance claims. Here, are the most common wedding insurance claims of 2012: 3%
military deployment
6%
attire (dresses, tuxedos and other)
9%
damage
10%
theft
14%
weather
15%
venue issues
Guard Insurance Group . . . . . . . . . . . . . . . . . .21
19%
illness and injury
IA&B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
24%
vendor problems
IA&B Partners Program . . . . . . . . . . . . . . . . . . .23
Source: www.propertycasualty360.com
Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC
----------------------------------------------------------------———————------The Last & Least column is dedicated to the industry’s oddities — from creative claims and kooky coverages, to (tasteful) jokes and strange stories. Submit yours to iab@iabgroup.com, subject line: Last & Least. The editor will happily protect sources’ anonymity upon request.
Atlantic Specialty Lines, Inc . . . . . . . . . . . . . . . .11 Coastal Agents Alliance . . . . . . . . . . . . . . . . . . . .9 EMC Insurance Companies . . . . . . . . . . . . .3, 19
Millers Mutual Group . . . . . . . . . . . . . . . . . . . .IFC Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .17 PennPRIME . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Preferred Property Program . . . . . . . . . . . . . . . .1 ThinkRisk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
8F ,OPX UIF %SJMM If you have clients involved in the rapidly expanding Marcellus Shale natural gas industry—and who doesn’t these days?—Interstate has the coverages you need for water haulers, dumps and other ancillary classes.
If your client hauls any commodity for the natural gas drilling industry, Interstate can insure them!
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