Oregon Agent | Q1 2023

OREGON AGENT Q1 2023

CONNECT & EDUCATE SYMPOSIUM MARCH 9-10 INN AT SPANISH HEAD LINCOLN CITY, OR

IN THIS ISSUE: Introducing Our New Board Members 2023 Upcoming Events

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CONTENTS CONNECT & EDUCATE SYMPOSIUM

Big I Oregon PO Box 68366 Portland, OR 97268

March 9-10 Big I Oregon’s answer to education that matters. This event will elevate you with your clients and includes breathtaking views, meals and time for networking & fun.

- PAGE 6

Phone: 503-274-4000 Fax: 503-274-0062 Toll Free: 866-774-4226

PRESIDENT’S MESSAGE......................................5 Moving Members Forward in 2023

Big I Oregon Staff

THE DIRECTOR’S CORNER...............................10 Reflecting on 2022 and Looking Ahead for the New Year

Tyra Dressel | Executive Director tyra@bigioregon.com

TECHNOLOGY.............................................................14-15 2022 Agency Growth Study: Digital Agencies Grow Faster

LeeAnn Smelley | Director of Member Engagement leeann@bigioregon.com Melissa Reed | Director of Agency E&O oregoneoteam@bigioregon.com Lyra Roberts | Agency E&O Senior Account Executive oregoneoteam@bigioregon.com April Pitz | RLI Administrator April.Pitz@iiaba.net Roger Beyer | Big I Oregon Lobbyist roger@rwbeyer.com Jill Tieu | Bookkeeper jillt@bigioregon.com

NEXTGEN........................................................................18 A Season of Change COMMERCIAL LINES...........................................20-21 4 Things to Expect From Cyber Liability Insurance in 2023 AGENCY OPERATIONS......................................24 Building a Better Work Culture LEGISLATIVE UPDATE........................................26-27 Oregon Legislative Outlook E&O.....................................................................................30-31 Top Risks and Challenges Facing Independent Agents

ADVERTISER INDEX Applied Underwriters................................32 auw.com/us

Iroquois Group............................................7 iroquoisgroup.com

Aspera Insurance........................................21 asperains.com

Rothert Insurance......................................27 rothertinsurance.com

Berkshire Hathaway GUARD....................31 guard.com

UFG................................................................3 ufginsurance.com

Griffin Underwriting Services.................2 gogus.com

Western National......................................17 wnins.com

IPFS................................................................15 ipfs.com

For more information on advertising, contact Kaylyn Staudt at kaylyn@iiaw.com.

The Oregon Agent is a publication of the Independent Insurance Agents and Brokers of Oregon and is published quarterly by Independent Insurance Agents of Wisconsin. Big I Oregon reserves the right in its sole discretion to reject advertising that does not meet Big I Oregon qualifications or which may detract from its business, professional or ethical standards. Big I Oregon and IIAW do not necessarily endorse any of the companies advertising in the publication or the views of its writers. The publisher cannot assume responsibility for claims made by advertisers, context provided by the editor, or for the opinions expressed by contributing authors.

4 | Q1 2023 |

MOVING MEMBERS FORWARD IN 2023 I am very proud to work with the Big I Oregon staff and Board of Directors in moving members forward in 2023!

By: Russ Schweikert Big I Oregon President Ashland Insurance, Inc.

There are two separate and distinct messages I’d like to communicate this quarter.

First: What an AMAZING plan and execution in 2022 by outgoing President Lyndsay Kooistra and the leadership team, Tyra Dressel and LeeAnn Smelley! Impactful work this year: • •

•

•

Returned to full in-person events, new and improved!

Continued deep dives into Big I operations, efficiencies, finances, policies & procedures, modernizing and boosting service levels to members! As President Lyndsay says, “Teamwork makes the dream work,” and these professionals proved it. Our internal actions are even more balanced and professional than before, thank you Executive Director Tyra for your drive!

Re-invigorated the board, including the introduction of service committees for members not in leadership positions to participate on a less formal level in areas of the committee members’ personal passions.

Everyone will see escalation in quality in the years to come. We encourage members to consider a committee to help influence the future of our organization.

Re-calculating and spiking member value, both for carriers, associate partners and for agents. Specifically: LeeAnn’s focus on articulating the worth of membership, including visual depictions, messages of inspiration, working with national, etc.

When LeeAnn decides to be of service, her creativity knows no bounds. Great job in all aspects!

•

PRESIDENT’S MESSAGE

2022 was a year of “questioning everything.”

What is not helpful? What is a waste of member resources? What can we do to raise value to agents? A wholesale facelift is what occurred, and I believe all of us will see enhanced value in membership for years to come.

Second: Many of our agencies and carriers are pivoting out of the COVID-19 “lockdown era” with new energy and successful workforce plans. However, if given the opportunity, there are still roles to be filled and new team members to be identified.

It feels as though we have been focused on treating the symptoms for decades. This maintains status quo and a minimum level of work force overall.

But... what if we stop treating the symptoms and transition to a culture shift of attraction rather than promotion? What if Big I Oregon helped us, from Portland (the most populous city in the state) to Greenhom (the least populous city in the state), to create a brand that positioned our industry as positive, profitable, fun, professional, trustworthy, helpful, accessible, cooperative, essential, neighborly, sympathetic, etc.?

Big I Oregon staff and I are working with Big I National to generate and distribute online and social media resources to push out to agencies to excite and attract winners throughout our communities about the abundant possibilities in the insurance career paths. From high schools to community colleges, to public and private higher education, to vocational rehabilitation, to workforce development strategists, to headhunters and economic revitalizing nonprofits, we are a healthy, growing, interesting and important industrial segment. Let us begin a process of improving public perceptions of how individuals benefit from being in the insurance and risk management industry collaboratively. | Q1 2023 | 5

CONNECT & EDUCATE SYMPOSIUMN MARCH 9TH & 10TH INN AT SPANISH HEAD LINCOLN CITY, OR RESERVE YOUR ROOM TODAY! MENTION BIG I OREGON FOR SPECIAL RATES.

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2023 EXECUTIVE COMMITTEE RUSS SCHWEIKERT President

LYNDSAY KOOISTRA Immediate Past President

DEBORAH MOHR Vice President

Agency/Company Relations Chair Ashland Insurance, Inc. Ashland, OR 29 Years

Membership Chair LaPorte Insurance Portland, OR 21 Years

Deborah Mohr Consulting Forest Grove, OR 27 Years

JENNIE WEILAND President-Elect

TIM CUNDARI Finance Chair

STEPHEN SMELLEY National Director

Events Advisory Chair HUB International Northwest Portland, OR 22 Years

Education Chair Cundari Insurance Portland, OR 28 Years

Product & Services Chair Goldfinch Consulting Beaverton, OR 36 Years

TYRA DRESSEL Executive Director Big I Oregon Portland, OR 30 Years

bigioregon.com

2023 BOARD OF DIRECTORS MARK ATKINSON

KAITY BLACKSHER

KRISTON CORRELL

INSURPAC/OIPAC Chair Atkinson Insurance Group Portland, OR 40 Years

NextGen Immediate Past Chair Atkinson Insurance Group Portland, OR 18 Years

MICHELLE GALLARDO

CHRIS HUWALDT

STEVE LACESA

DALLAS ROSS

The Partner’s Group Tigard, OR 19 Years

PayneWest Insurance McMinnville, OR 28 Years

Oak Tree Insurance Lake Oswego, OR 39 Years

Procurement Chair Timmco Insurance - Cornell Portland, OR 10 Years

JUUL Insurance Agency North Bend, OR 25 Years

ANGELA ED DAVIS WILLIAMS NextGen Chair Legislative & Government Huggins Insurance Affairs Chair Salem, Services OR Maps Insurance Salem, OR 58 Years

TJ SULLIVAN

DELLAS WALDO

ANGELA WILLIAMS

Hagan Hamilton Insurance Solutions Sheridan, OR 26 Years

Field-Waldo Insurance, Inc. Ontario, OR 6 Years

NextGen Chair Huggins Insurance Salem, OR 20 Years

THE DIRECTOR’S CORNER

By: Tyra Dressel Executive Director of Big I Oregon

REFLECTING ON 2022 AND LOOKING AHEAD FOR THE NEW YEAR

Happy New Year! The start of the year tends to wax nostalgic as I reflect on the past 3 years as Executive Director of Big I Oregon. I’m proud of what our small but mighty team has accomplished on behalf of our members, and I continue to be amazed at the breadth and depth of resources that we have at our fingertips to assist members in their growth, training, and leadership. As I head to the Winter Leadership Meeting for Big I in Savanah Georgia, it will be with gratitude for the years of service Ed Davis our outgoing National Director has given in this position with integrity, determination, and civility. He was an excellent representative and voice for the agents of our state. I’ll now be joined by Stephen Smelley our new National Director who will have big shoes to fill, but I know his passion for the independent agents’ perpetuation and professionalism will serve our state well into the future and at the national board meetings.

A new year would not be complete without a resolution or two. As your Executive Director, you have my resolve to continue building and collaborating with other states and national to harness the power of collective resources so that Oregon’s members can grow and thrive. It will be through our newest partnership SOAR that we will answer the call of the need to attract quality new talent to the industry with staunch support.

You also have my resolve to expand the opportunities our members have to be involved, collaborate and share their talents. The expansion of our committees is a passion that Russ Schweikert, our new President, and I share. Board Members chair our committees and members from around our state serve on the committees. Meetings are virtual so you may participate no matter where you live. This year we have added the opportunity for Associate Members to join a committee as well. Whether you are an Associate Member or an Agency Member I encourage you to reach out and find the committee that fits your interest and talents.

10 | Q1 2023 |

Our NextGen Committee is a stellar example of wonderful things happening when people come together. In 2016 Lyndsay Kooistra, our Immediate Past President, resurrected the Young Agents (now known as NextGen) and they have been connecting, engaging, and giving back ever since! I am writing this article the morning after they held our Annual Ugly Sweater Holiday Party. They took it up a notch this year and included “Carol-aoke”: When an attendee in an ugly sweater grabs the mic and sings their favorite tune.” If you have not already seen it, check out our short video that includes a couple of “Carol-aoke” moments on our Big I Oregon YouTube channel.

Bob Rosson, our former Finance Committee Chair and Board Member, sums up his time with Big I Oregon, “I have been involved with Big I Oregon as a finance committee member or board member for many years. Although being involved with the board had many positive impacts, I really enjoyed making connections with fellow board members and insurance agency owners. These connections have proven valuable in several ways, personal and professional. I have made friendships with those I only previously knew casually. Professionally, it is important to network with fellow agency owners and leaders. I loved having others to call on for an alternative opinion or solution. This could be an internal agency issue or a coverage challenge for a client. I encourage others to get involved…it is well worth it!”

As the Executive Director of this vital and growing organization I am proud of the collaboration of independent agents we have fostered. We have built a community of insurance professionals that strive to give back through sharing their industry knowledge, business prowess, and difficult experiences that have made them better at what they do. You may be in business for yourself, but with membership in Big I Oregon you are never alone. My challenge to our members in 2023, make a connection, join a committee, and step out and share your experience!

Annual Ugly Sweater

Holiday Party

NextGen Committee: Angela Williams, Mallory Neal, Kaity Blacksher, Dallas Ross, Tyler Ross

Deborah Mohr, Deborah Mohr Melissa Castellano, Chubb &&Denise Consulting, Todd Blacksher Kaity Moore, Iroquois Blacksher, AtkinsonNorthwest Insurance

Dave Markel, Safeco & Tyson Bodewig, Kennedy Restoration, Singing Karaoke

Dallas Ross, Timmco Insurance, Inc, Jennie Weiland, HUB International Northwest, LLC

Eric Seim, Travelers, Casey Manley, PGE, Sean Manley, J.D. Fulwiler & Co, Lyndsay Kooistra, LaPorte Insurance, Jennifer Colonna, Travelers

Tyra Dressel, Executive Director & LeeAnn Smelley, Director of Membership Engagement, Big I Oregon and Mallory Tyler, Make-A-Wish Oregon

Scott Esqueda, Oregon Mutual Insurance Company, Ugly Sweater Winner

Melissa Castellano, Chubb & Denise Moore, Iroquois Northwest

Ed Davis, Maps Insurance Services, LLC, Elodee Chapman, BELFOR Property Restoration & Pat Davis

Gregg McDonal, Santa, Shane Hillier and Buddy the Elf, Matthew McMuldren, both with RoHillCo Puroclean, rocking the Karaoke mic!

Insurance Services, LLC

Make-A-Wish Oregon Recipient, Skylar, telling us her journey and how much MakeA-Wish Oregon means to her. | Q1 2023 | 11

2023Premier Partners THANK YOU TO OUR PREMIER PARTNERS FOR THEIR CONTINUED SUPPORT!

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12 | Q1 2023 |

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TECHNOLOGY

2022 AGENCY GROWTH STUDY: DIGITAL AGENCIES GROW FASTER By: AnneMarie McPherson Spears Independent Agent News Editor

Highly digital agencies grew faster than their less digital counterparts in 2021, according to the Liberty Mutual and Safeco Insurance “2022 Agency Growth Study,” continuing the growth gap trend seen in 2020’s study.

Meanwhile, the study’s “Agent for the Future Index,” which scores high and low digital adopters on a 10-point scale based on the average number and complexity of digital tools used, demonstrated that both high and low digital adopters were using approximately the same number of digital tools in 2021 as they were the year before.

In 2020, high digital adopters scored a 6.76 on the index, and a 6.78 in 2021. Low digital adopters scored 2.76 in 2020, and 2.82 in 2021.

The Agency Growth Study divided agencies into three groups: low, medium and high digital adopters, based on the number of digital tools they used. In 2021, low and medium digital adopters grew their revenue an average of 10% year over year, but high digital adopters grew 17% year over year—a Some specific digital tools did show 70% higher growth rate than other agencies. decreases. For example, 82% of agencies said they used social media in 2020, but that And the difference in growth has increased declined to 73% in 2021. And 72% said they since the previous year. In 2020, low digital used digital marketing in 2020 compared adopters’ revenue grew 7.4%, while high to 63% in 2021. While the same number digital adopters saw 12%, a more than 60% of agencies reported having social media higher annual growth rate for highly digital accounts, fewer reported using paid social agencies. ads.

However, this year’s study did uncover a slowdown in digital adoption. As coronavirus pandemic worries eased, agencies returned to old ways. In late 2020, 58% of agencies said that adding new digital capabilities was part of their five-year growth plans. In late 2021, that dropped to 47%.

14 | Q1 2023 |

Many agencies aren’t tracking which digital tools drive business growth, the study found, with less than half of respondents who contribute to agency marketing activities saying they track the source of new business from digital marketing. But among agencies who do track digital marketing efforts, the agency Facebook account, email marketing and unpaid SEO activities were the most effective new business generators.

“This suggests that agencies may be missing out on some digital opportunities that could help drive new business,” the report noted.

“Tracking the impact of digital marketing efforts can help agencies decide where to focus and invest for the most impact.”

The report also identified respondents that said their agency was aiming for aggressive growth. Those growth-oriented agencies— approximately one-third of survey respondents—were more likely to be high digital adopters and invest in digital tools. Of agencies that identified as growth-focused, 52% use a self-service portal, compared to 43% of agencies that are aiming for slow and steady growth. And 49% of growthfocused agencies use video calls, compared to 29% of slow and steady agencies. Live online chat, video quotes and policy reviews, paid Facebook ads and chatbots or artificial intelligence (AI) were also tools that growthfocused agencies were more likely to have than their slower-growth peers.

Those aggressive-growth agencies grew their annual revenue at a rate more than double that of agencies planning for slow and steady growth—and they don’t plan to slow down. When asked about their five-year agency growth plans, 60% of growth-focused agencies said they planned to invest in new digital capabilities, as opposed to 42% of slow and steady growth agencies.

Fifty-five percent said they planned to increase their marketing investment, as opposed to 35% of slow and steady agencies. And 30% planned to hire a dedicated marketing specialist, compared with just 11% of

slow and steady agencies.

“When independent agents invest in digital, they are investing in the future of their business,” said Tyler Asher, president of independent agent distribution, Liberty Mutual and Safeco Insurance. “Digital can create business efficiencies, improve customer satisfaction, and—as this research shows—benefit the bottom line.”

“As agencies look ahead to 2023 and consider how a potential economic downturn may impact business, digital can and should be at the forefront,” Asher added. “Now is the time for agencies to invest further and get more strategic about digital transformation to ensure the business is built for resilience.”

This article was originally featured on independentagent.com in November.

DARREN EVERSOLE | 503.957.5460 | darren.eversole@ipfs.com Copyright © 2021 IPFS Corporation. All rights reserved.

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NEXTGEN

By: Angela Williams NextGen Chair Huggins Insurance

A SEASON OF CHANGE

January 1st is traditionally a date symbolic for change. New Year’s resolutions are created, the accounting year starts over, change of leadership occurs, laws change. “To everythingturn, turn, turn. There is a season-turn, turn, turn.

And a time to every purpose, under heaven.” If I am being honest, I do not like change. I prefer traditions, same routines, same restaurants, same beauty products…you get the idea. Over the years, I have discovered my resistance to change can cause me to have tunnel vision and I can miss out on something incredibly good in my life. Why is change hard?

In 2023, my first glimpse of change will be as the new Chairman of the NextGen committee.

For the next year, I have the pleasure of leading a team of insurance professionals where our goals are to focus on supporting and developing independent insurance professionals who are under 45 years old or have less than five years experience in the insurance industry. As the chairman of the committee, my goal is to partner with agencies and get more young insurance professionals involved in Big I events.

It’s important to hire young new agents, and train them up to create the next generation of insurance professionals. Remember it’s important not just to be a boss, but to be a mentor.

As agents, we know change in the insurance industry is inevitable.

Change will happen, it’s just a matter of time.

Is your office about to embark on a season of change? Change in agency ownership and/or leadership change? New agency management system? New employees in the office? Whatever change lies ahead for your agency, it’s important to get employee buy-in for a smooth transition.

First, meet with your team and lay out the vision for the agency. Involve the team and personalize responsibilities. Be consistent and make sure communication is always happening within the team. Always keep the team involved and lead by example with a positive attitude. A positive attitude will give you the power to motivate, the power to inspire and the power to influence others.

What change will you encounter in 2023? A new monarch will be crowned in 2023 with the coronation of King Charles III. This will mark 70 years since the coronation of Queen Elizabeth. Talk about generational and historical change. As you find yourself in the trenches of change, I encourage you to look forward and don’t look back. We can learn from the past, by not repeating the same mistakes. Embrace the future with an open mindset, courage and expectations of excellence. Find your community with family, friends and industry professionals and encourage one another with positivity and tenacity. “To improve is to change; to be perfect is to change often.” Winston Churchill

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MORE INFO? CONTACT:

LeeAnn Smelley

Director of Member Engagement

NextGen Liaison leeann@bigioregon.com

| Q1 2023 | 19

COMMERCIAL LINES

4 Things to Expect From Cyber Liability Insurance in 2023 By: Ann Seaberg Independent Agent Contributor

While cyber insurance has been around for more than 25 years, it is constantly evolving to counter the ever-changing tactics employed by cybercriminals against critical infrastructure, financial platforms, operational technologies and cloud-hosted environments.

This means that the cyber liability market must also change underwriting processes and develop coverages, as well as factor in increased regulatory influence, according to Risk Placement Services (RPS) “2023 U.S. Cyber Market Outlook.”

The last two years have resulted in doubleand triple-digit premium rises following an influx of claims related to increased cybercriminal activity, according to the report.

Further, capacity continues to be a challenge, which is a problem driven by increased demand, more judicious limits deployment and some players exiting the market.

Although premium increases of between 15% and 25% may still be common at renewal, advancements within the market may provide respite for rate hikes as the market begins to adjust, the report said.

As the market continues to evolve, here are four things the report says that agents can expect in 2023: 20 | Q1 2023 |

1) Increasing regulatory oversight. If the billions of dollars a year being spent on cyber losses wasn’t enough of an issue, cyber risk has shifted from being purely a business risk to a risk to society as a whole. And while direct intervention in the cyber insurance market has so far been limited, dozens of cyber-related laws are in the works, with a particular focus on data privacy.

Specifically, the efficacy of making ransom payments and even potentially banning them altogether is currently being debated.

Yet, the one thing that remains certain is “as long as ransomware attacks remain both lucrative and anonymous, they will not suddenly disappear because a state law says certain sectors cannot pay,” said Steve Robinson, area senior vice president, RPS. 2) Ransomware-as-a-service is expected to be one of the most pressing threats.

“Ransomware firms are now effectively licensing out proprietary ransomware software that is leading to much wider-scale attacks with more potential facets to it,” said Bryan Dobes, area senior vice president, RPS. “This makes it much less likely that an organization—or even a cybersecurity firm— will be able to pinpoint exactly how an attack is developing.”

Additionally, cybercriminals are now often bypassing the negotiation phase, deleting

or selling data if initial ransoms are not paid or if third-party forensics firms are involved. Ransomware attacks are evolving to take down systems and prevent business operations, so traditionally unaffected sectors that don’t hold a lot of data, such as wholesale distribution and manufacturing, face a much bigger threat.

3) Tightening policy wording. Many insurers are starting to exclude cyberterrorism events, state-backed attacks, and infrastructure attacks from coverage. With varied approaches from insurers, general mandatory endorsements can include significant implications for policies.

Another concern is the systemic risk from the widespread use of third-party cloud providers, in response to which insurers are introducing sublimits or exclusions for claims that result from a specific large-scale attack.

One example is war exclusions, meaning that an insurance policy won’t cover state-backed attacks influenced by the Russia-Ukraine conflict. “We are starting to see insurers exclude cyber terrorism events,” said Zach Kramer area assistant vice president, RPS. “We are also starting to see exclusions relating to infrastructure attacks and carriers broadening their stance on what is considered infrastructure.”

4) More sophisticated underwriting for cyber risks.

As the market matures, so does insurers’ understanding of threats. The increased implementation of insideout underwriting with the use of “behind the firewall” technologies will enable underwriters to craft programs and pricing more commensurate with the risk, according to RPS.

Further, tailored endorsements around security measures are making businesses more resilient in the face of attacks.

While approaches to the ever-changing risks of the cyber insurance market vary, it remains clear that the market has the potential to be dynamic and offers greater promise to those taking a measured and proactive approach to reducing risk.

“As the cyber insurance industry has taken on, in our view, an unfair share of criticism relative to enabling the ransomware epidemic to flourish, the irony is that the insurance industry is leading the way to promoting improved defenses and operational resiliency to these ever-evolving threats,” said Steve Robinson, RPS area president and national cyber practice leader, in the report.

This article was originally featured on independentagent.com in November.

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| Q1 2023 | 21

Insurance Agents Errors and Omissions Coverage That’s Right For Your Business Why Big “I” Professional Liability and Swiss Re Corporate Solutions Prompt, local service: You can expect superior customer service, in-house underwriting authority and prompt turnaround on quotes, policy delivery and answers to questions.

More premium discounts: Qualifying agents can save over 50% in premium discounts including the loss control, claims free, agency operations improvement review, efficiency and carrier concentration credits.

Deductible savings: Loss only deductible available along with deductible reduction feature offering up to 100% savings of deductible (up to $25,000) per claim with proper documentation Claims handling: Prompt and thorough claims handling by an experienced staff made up primarily of licensed attorneys that stand ready to support policyholders with any potential incident and claim.

Agency risk management tools: Access to experienced E&O Risk Management team through our partnersand online tools for agency risk mitigation Exclusive: A Big “I” member exclusive policy form and premium credits filed on a Risk Purchasing Group basis giving Big “I” members tailored coverage.

Member oversight: A Professional Liability Committee including IIABA member agents oversees an directly influences the program. Our program was designed by agents for agents.

Swiss Re Corporate Solutions Policy Form Highlights Big “I” Professional Liability program and Swiss Re Corporate Solutions pride ourselves on offering the strongest coverage form in the marketplace that continues to evolve to meet the changing needs of the agents. Review the preferred policy form and you will find that these are just a few of the coverage benefits: • Rate A+ by A.M. Best • Claims-made coverage with full prior acts available • Limits of liability up to $25 million • Broad definition of covered professional services and activities • Comprehensive definition of insured • Aggregate deductibles available • Defense cost outside the limit • $25,000 1st Party Personal Data Breach • $1,000,000 3rd Party Personal Data Breach sublimit available • 60/40 consent to settle clause • Crisis Management coverage; up to $20,000 per policy period for fees, costs and expenses incurred within 6 months of a crisis event • Deductible reduction up to $25,000 per claim with proper documentation, no limitation to the number of claims • Catastrophe Expense $25,000 per incident, $50,000 per policy period • Regulatory defense $100,000 per policy period in addition to the limit of liability • Several options to earn premium discounts up to 30%

If you have anyany questions, please contact Melissa If you have questions, please contact Reed at oregoneoteam@bigioregon.com.

LeeAnn Smelley, leeann@bigioregon.com.

The information provided is for general informational purposes only and you should review the policy form and any applicable endorsements for complete policy language. Please note that all applications are subject to review, underwriting and approval by Westport Insurance Corporation, a member of Swiss Re Corporate Solutions.

PROFESSIONAL L I A B I L I T Y.

Our E&O Team is growing...

Meet Lyra Roberts Big I Oregon’s Agency E&O Senior Account Executive Tell us a bit about yourself.

I am a born and bred Oklahoman, with a brief stint in

Dallas where I caught the insurance bug. It is my nature to help people, especially those in need. This is often

done through volunteer work with Regional Food Bank of Oklahoma, Citizens Caring for Children and Habitat

for Humanity. I am excited to be a part of the team and I

What is the most enjoyable part of your

needs.

Agents look to me as their go-to source for means to

What is your background and how does it help you in your current position?

thoroughly enjoy working with Tyra Dressel, LeeAnn

I hold a bachelor’s degree from University of Oklahoma,

sustain and grow the independent agency system.

look forward to helping you with your agency E&O

Price College of Business (go Sooners!) with emphasis in marketing. This foundation has given me the skills to

successfully market products – not just provide a quote

or answer coverage questions. For the past ve years I

job?

avoid situations that could rise to an agency E&O loss. I Smelley, Melissa Reed and Big I Oregon members to When you’re not eating, sleeping and

breathing E&O insurance, what hobbies and activities do you enjoy?

was a Territory Manager for a mid-west P&C carrier but

Wedding plans are keeping me busy - my ancé and I

an E&O Program Manager. With over 18 years in the

keep us busy with sports – football, baseball and karate.

prior to that, 13 years were spent at Big I Oklahoma as

insurance industry, I can’t think of a better eld to be in.

are tying the knot next year. Our three school age kids

I am doing college tours with my high school senior and preparing for (sniff!) her moving away from home.

Learn more about the Big “I” Professional Liability program by contacting Lyra at oregoneoteam@bigioregon.com or 703-706-5376.

AGENCY OPERATIONS

BUILDING A BETTER WORK CULTURE By: WAHVE

For employers trying to attract talent in one of the toughest labor markets in recent history, the shift in what employees want has not gone unnoticed.

The Bureau of Labor Statistics reporting 280,000 job openings in the finance and insurance sector in September 2022. Agencies and brokers alike have witnessed the struggle to attract and retain top talent firsthand. Unfortunately, that struggle is expected to continue through 2022.

Therefore, it’s up to your organization to find ways to become more attractive to job seekers. Yet how should you go about it? Simple – by paying attention to what employees want. Ironically, the answer isn’t more pay. It’s more work-life balance.

The Employee Wishlist A recent Unum survey found that the top three job criteria for employees was generous paid time off, flexible and remote work options, and paid family leave. They also want to feel connected to the organizations they work for – a MetLife study revealed another list of employee must-haves: purposeful work, career training and development, wellness programs, and a supportive work culture.

That last one is where many organizations tend to stumble. Understanding the health of your work culture is more than feeling that everything is in order. It takes a deep look into your operations, an alignment with your organization’s goals, and the level of support you offer to your workforce. Are employees motivated? Do they feel supported? Do managers make time to check in with employees?

Are company values espoused by everyone in the organization?

Delivering a better work culture is not difficult.

It requires a shift in managing employees. We suggest starting with these areas: 24 | Q1 2023 |

Communication Managers should be talking with employees daily. One-on-one conversations can be as simple as a quick check in to see what the employee is working on or more in-depth depending on the employee’s needs or concerns. Your organization should schedule weekly team meeting that are concise and to the point. Also, meet with employees monthly to go over progress and ensure employees have the resources needed to resolve any issues.

Flexible work and schedules Flexible flexible work – remote/hybrid schedules and flexible hours worked – gives your employees the ability to better manage their time and improve their productivity. John’s best hours for productivity, for example, could be early mornings or late evenings. Removing the requirement to be present from 9-to-5 means John is able to give you his best work when he’s most focused. Measure productivity by goals met, not hours clocked.

Ample tools and resources Are your employees working with an IT handicap?

Upgrade equipment and watch the productivity improve. Do your employees have access to mentors, training, or other career improvement/ advancement tools? Investing in your employees’ careers helps with retention, productivity, and overall business improvement.

A More Attractive Organization Those changes require you to trust your employees.

Encourage your employees to carve out their best workday schedule and their best work location.

Help them move ahead in their careers. Adopt a more open communication and make sure your managers are doing all they can to make each employee feel connected to the organization and valued for their talent.

An attractive work culture isn’t tough, but it does take a commitment to positive, ongoing change to how you interact with and support your workforce.

Paying attention to what job seekers want and what your employees need is easier than replacing key talent. And smarter, too.

LEGISLATIVE UPDATES

Oregon Legislative Outlook By: Roger Beyer Big I Oregon Lobbyist

This article was written in December 2022.

Tina Kotek will be the next Governor and she is now working to assemble her team to run the state. When she is sworn in on January 9th, we will get the first look at how she plans to govern: will she look to work in a bi-partisan, inclusive manner or return to her past style of-my way or the highway approach? How she sets the tone will have a big impact on the legislative session which begins in earnest the following week.

A near modern day record number of freshmen will be entering the 2023 legislative bodies. In the Senate, five of the thirty members will be new, but four of those are moving over from the House of Representatives. In the House, twenty-one of the sixty members will be new with two of those returning after a break in their service. This is the largest number of new legislators since 2003, in which we saw 36.

In addition to the 20 new members, 5 current Senators and 14 current Representatives have never experienced committees conducted in person or have very little, if any, experience meeting with constituents or lobbyists in person.

26 | Q1 2023 |

All the new members, the recent lockouts from the public and the Democrats losing one seat in the Senate and two in the House, will make for a very interesting and trying session in 2023.

While Democrats will continue to control both chambers in the legislature, they no longer have a super majority in either chamber and these dynamics could mean trouble for those in new leadership roles.

In the House, Speaker Dan Rayfield will be returning along with Democrat Leader Julie Fahey and Republican Leader Viki BreeseIverson. These three successfully navigated the 2022 short session as new leaders. Time will tell if they can successfully negotiate these new hurdles they now face.

For the first time in 20 years, Peter Courtney is not returning as the Senate President.

Democrat leader Rob Wagner has been chosen by his caucus to be the next president and Kate Lieber will succeed him as caucus leader. Tim Knopp will be returning as Republican leader so this new team will need to figure out how to work together to run a successful session.

As I write this, we are still waiting for the new leaders to make committee chair assignments.

I don’t expect a big change in the House, as Speaker Rayfield is the person who appoints the current chairs. With the new President of the Senate, just about anything is possible.

As committee chairs control their agendas, these assignments will forecast the direction for the 2023 session.

All three constitutional amendment proposals on the ballot were passed and two of the measures could greatly affect all future legislative sessions.

Measure 111 makes affordable health care a fundamental right. How the legislature will balance this new requirement with the funding of schools, public safety and other services is yet to be seen. I foresee lawsuits in the future if people from any of these new interest groups are unhappy with the outcome of a legislatively passed budget.

Like we have seen in other states, judges, not legislators, may now have the final say on state budgets.

Measure 113 prohibits a legislator with ten or more unexcused absences from running in the next election. This will fundamentally end the practice of legislative walkouts as, unless it is staged in the final days of a session, all the participants would be, in practice, “quitting” the legislature.

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This certainly will change the “tools” available for the minority party to use as they try to be relevant in the discussions.

The combination of M111 and M113 may help make the minority party more relevant as legislators work to balance the budget. I believe there will be less money to fund these new “fundamental needs.” This could lead to the desire for increased taxes, which will play right into the Republicans’ hands as there will now be the need for at least some Republicans to vote “yes” in order to increase revenue.

The 2023 session began on Monday, January 9 with organizational days and the rest of the week for training. Official business kicks off on the 17th and must end by June 25th. The initial list of bills will be available on the 9th, but I have already heard talk of some bills we have seen or heard about previously. DCBS is reintroducing the bill to prohibit the use of credit scoring for auto policies and the bill to prohibit insurance companies from using state wildfire maps to change or cancel fire insurance was introduced by the Senate Wildfire Committee. I expect there will be other reoccurring measures, in addition to the new ones to be worked on.

Commercial

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Flood

A trusted supporter of the Big “I” Oregon

| Q1 2023 | 27

Big I Oregon

Events

Check Out Our Event List for 2023

March

910 April

2628

Connect & Educate Symposium Take a beautiful getaway and earn up to 12 hours of CE, approved OR/WA. Inn at Spanish Head - Lincoln City, OR

National Legislative Conference Every spring, more than a thousand agents visit Capitol Hill offices to lobby members of the House, Senate and their staffs on issues that directly impact independent agents and customers.

Renaissance Downtown Hotel Washington D.C.

InsurCon2023 August

2022

Big I Oregon's yearly in-person event that attracts agents from all over the state of Oregon. Enjoy a beautiful resort location combined with workshops, golf, an exhibit hall, entertainment and networking.

Sunriver Resort - Sunriver, OR

Visit bit.ly/bigiornextgen for the NextGen-hosted event list.

For detailed information:

bigioregon.com

Drives for Dreams Benefiting Make-A-Wish World Wide Wish Day

Registration Registration includes food and two beverage tickets per person:

APRIL 20, 2023 Top Golf 5505 NE Huffman St. Hillsboro, OR 97214

• $75 per person

OR BUY A BAY ($700): • admission & golf for 6 people • food & 2 drink tickets per person • includes $200 donation to Make-a-Wish

There will also be an online auction with items ranging from experiences to wine!

SCHEDULE: 4:30 P.M. TO 5 P.M. SOCIAL 5 P.M. TO 7 P.M. GOLF

Register today at bigioregon.com/events | Q1 2023 | 29

E&O

TOP RISKS AND CHALLENGES FACING INDEPENDENT AGENTS By: Mallory Cornell IIAW Vice President & Swiss Re Approved Auditor

Talent It comes as no surprise that an agency’s ability to attract and retain top talent will save them a tremendous amount of money in the future. Independent insurance agencies have overwhelmingly reported that employee turnover is a top risk they face in upcoming years. A recent study from the Center for American Progress estimated that for positions earning less than $75,000, the cost of firing and hiring a new employee was roughly 20% of that position’s salary.

Agency Operations Procedure Manual Consistency in practices and procedures is a critical component to efficient agency operation as well as E&O claim prevention. Adhering to procedures will not only establish a pattern of invariable practices aiding in the defense of an E&O claim but it will also improve customer service among agency personnel. Procedure manuals should be reviewed at least annually and updated to reflect changes within the agency.

Data Protection & Privacy Regulations Handling and protecting sensitive information is now one of the most critical responsibilities faced by the modern insurance agency. Data breaches are occurring as often in small 30 | Q1 2023 |

businesses as they are in large businesses. It is critical that insurance agents understand and comply with the requirements of the federal and state regulations, such as the Gramm-LeachBliley Act (“GLBA”).

Coverage Checklists Using checklists can not only help an agency increase revenue, but it will also help reduce E&O exposures and streamline a process. It is easy for us to forget things. When you do something that involves multiple steps, it’s likely that you can forget one or two of them.

Using checklists ensures that you won’t forget anything and is a helpful tool for onboarding new employees.

Documentation and Agency Management Systems Documenting all interactions with customers and carriers and every insurance transaction can be critically important to the defense of an E&O claim. Without time-stamped documentation, an agency will be left with little more than its employees’ memories of conversations that may have taken place years earlier, and your E&O carrier may recommend that you settle your claim.

E&O Limits Determining the proper limits for your agency is one of the most important decisions you can make to protect the agency’s future. Agents need to consider how much they could afford to pay out of pocket as well as the worst possible mistake someone within the agency could make.

Those figures provide a good idea of potential financial impact and the E&O limits to consider.

Marketing Plan With the eruption of digital marketing and the diverse client-base an agency needs to target, having a robust marketing plan is important for agencies of all sizes. There are many reasons a marketing plan can have problems, but fixing those problems is essential to ensuring growth and prosperity for an agency.

Mission Statements Many agencies claim to have mission statements, but few of them are understood and followed by employees. If your customers were shown your mission statement, would they agree that it describes your business? If not, it is important to take another look at your mission statement and then use it to develop your strategic business plan.

Strategic Business Planning Oftentimes the idea of strategic business planning can seem daunting to agency owners and key decision-makers of the business.

Setting aside the time to determine what you want your business to look like and how you are going to get there should be a top priority. Putting these thoughts on paper is a worthwhile exercise because it solidifies and melds the thoughts of many individuals into a plan which everyone can believe in and work towards.

Perpetuation Strategy You might not be shocked to hear that agency principals are getting older, but did you also know that perpetuation remains a very low priority? There is so much to consider with an agency perpetuation plan: agency value, buy/ sell agreement, agency ownership, internal, external, planned retirement, sudden death, and they are all important to prepare for as part of the plan of the agency life cycle.

Are you looking to find new tools and resources that benefit your agency or obtain feedback on potential challenges your agency faces?

Complete our free Operational Agency Evaluation. After completing, you will receive a report, instantly, that’s made just for you and your agency’s needs!

Thank you for your business & Happy New Year.

| Q1 2023 | 31

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