Issuu

OREGON AGENT Q3 2022

INSURCON 2022 AUGUST 21-23 • SUNRIVER RESORT Are you All In for an incredible lineup of events? IIABO.ORG/EVENTS PAGES 10-13

IN THIS ISSUE: LEGISLATIVE UPDATES 2022 BIG I LEGISLATIVE CONFERENCE HIGHLIGHTS

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CONTENTS INSURCON2022

Big I Oregon PO Box 68366 Portland, OR 97268 Phone: 503-274-4000 Fax: 503-274-0062 Toll Free: 866-774-4226

Big I Oregon Staff Tyra Dressel | Executive Director tyra@bigioregon.com LeeAnn Smelley | Director of Member Services leeann@bigioregon.com Travis Wills | Operations Coordinator travis@bigioregon.com Melissa Reed | Director of Agency E&O 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

This two and a half day event is “All In” casinothemed featuring headliners, workshops, 6 CE credit vouchers, Exhibitor Showcase and so much more. - PAGES 10-13 PRESIDENT’S MESSAGE......................................5 Washington D.C. - 2022 Big I Legislative Conference THE DIRECTOR’S CORNER...............................10 Join Us for InsurCon 2022 VIRTUAL UNIVERSITY...........................................16-17 17 “Tests” to Decide: Employee or Independent Contractor E&O.....................................................................................22 Can Your Website Be Used Against You? LEGISLATIVE UPDATE........................................26-27 The Importance of Political System Involvement INDEPENDENT AGENT.......................................28 Master Your Agency’s Growth Potential With The Sales Velocity Metric

ADVERTISER INDEX ACUITY...........................................................29 acuity.com

IPFS................................................................21 ipfs.com

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

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

Aspera Insurance........................................6 asperains.com

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

Berkshire Hathaway GUARD....................17 guard.com

RPS................................................................25 rpsins.com

EMC................................................................31 emcins.com

UFG................................................................3 iroquoisgroup.com

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

Western National......................................19 wnins.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 | Q3 2022 |

PRESIDENT’S MESSAGE

WASHINGTON D.C. 2022 BIG I LEGISLATIVE CONFERENCE By: Lyndsay Kooistra Big I Oregon President LaPorte Insurance

Washington, D.C. is one of my favorite places to be. Since I was young, I’ve loved politics and even got to meet one of my Senators on my first trip to D.C. when I was 10. I spoke to him more than my parents did, not that they didn’t try. In college I interned in D.C. for a summer, working as an unpaid intern in news radio, then at a PR firm. I spent a lot of time “on the hill,” frequenting museums, discovering the city and figuring out which establishments didn’t check IDs. In 2018 I headed back to lobby on behalf of Big I and felt right at home. I was a little intimidated to speak to our Congressional Senators and Representatives. Over the COVID years of lobbying via Zoom, I broke free of my shaky voice and gained a stronger, confident speech to let our elected officials and their staff know what we need to protect our industry and policyholders. On this trip, that mission didn’t change and my determination was unwavering. The Big I Team from Oregon made progress in our quest to work on behalf of all of you, the Independent Agents & Brokers of Oregon. Our team consisted of Tyra Dressel, LeeAnn Smelley, Steve Smelley, Kaity Blacksher, Todd

Blacksher, Dallas Ross, Deborah Mohr, Pat Davis & Ed Davis. This is Ed’s last trip to DC as National Director. He’s passed along his wisdom and resilience to the rest of us. Our group was a great mix of experience and tenacity. We each took on different topics to share time and influence among the team. We communicated seven talking points to our federal politicians. All of them were bipartisan and, in my opinion, easy to get on board with. Not only do they benefit the insurance industry but our policyholders as well. We found that if we told stories, had real life examples, and kept things fun, we got through to people. We mostly met with staffers due to COVID but did have a sit-down meeting with Representative Kurt Schrader. 1. Maintain Small Business Tax Fairness – We support H.R. 1381/S. 480, the Main Street Tax Certainty Act which would make the 20% small business deduction permanent. Otherwise, it is scheduled to expire in 2025. This deduction is relied upon by many independent agents and our clients, giving us all the ability to expand, hire more employees and better serve our communities. 2. Extend & Reform the National Flood Insurance Program – NFIP expires September 30th, 2022. We support a longterm reauthorization, specifically H.R. 4699/S. 2915. | Q3 2022 | 5

Both would allow for private insurance to satisfy continuous coverage requirements, as well as keeping it as an option with NFIP. The more choices we can provide our clients the better! 3. Advocate for Legal Protections for Independent Insurance Agents – We support H.R. 1996/S. 910 the SAFE Banking Act which creates a safe harbor for agents and brokers who choose to do business with the cannabis industry. 4. Protect the Federal Crop Insurance Program – The current Farm Bill expires in 2023 and it is imperative to support policies strengthening the stability and effectiveness of the FCIP. President Biden’s Fiscal Year 2023 budget proposal fully funds the FCIP and strengthens crop insurance. 5. Safeguard Against Future Pandemics – Even though there are still lawsuits pending, there are not any bills in front of the House or Senate to force insurance companies to pay the loss of income that was experienced by businesses during the pandemic. We are advocating for a solution for future pandemics, if we can’t outlaw them all together (great idea from Steve Smelley), similar to TRIA or PPP. 6. Preserve Employer Sponsored Health Insurance – We oppose H.B. 1976 and S. 386 the Medicare for All bills, as it would end Group Health Insurance which 180 million Americans are actively using. We drew on the fact that employers are struggling to find employees and one of the ways to attract and retain the best talent is from their benefits offerings.

7. Defend State Regulation of Data Security for Insurance Consumers – We want to make sure that states still can regulate, respond, fine, and penalize when there is a cyber breach or attack, rather than at the federal level. If Congress considers a national data security standard, it is important that it is scalable and reasonable. For more details on these talking points please reach out to the Big I Oregon office – support@bigioregon.com. In summary, our days at the Big I Legislative Conference were great! I’m a bit partial but our Oregon contingent was the best! We made our meetings fun, engaging and left our elected officials offices with a smile. You’ll be hearing from me about donating to InsurPac and why it is so important. Please make a note that the 2nd Tuesday of every month is our Virtual Legislative Update, noon – 1pm. We’ll have a call with Roger Beyer our Oregon Lobbyist discussing local political topics, as well as meeting those running for State and Federal Office. Hope you can join us virtually for those!

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6 | Q3 2022 |

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For over 40 years Iroquois has helped agencies grow their revenue and strengthen their independence. Visit IroquoisGroup.com to explore what we can design for your agency. Denise Moore, CIC Regional Manager | Oregon & Idaho (503) 396-2225 dmoore@iroquoisgroup.com iroquoisgroup.com

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2022 EXECUTIVE COMMITTEE

LYNDSAY KOOISTRA President LaPorte Insurance Portland, OR 20 Years

MARK ATKINSON Immediate Past President Atkinson Insurance Group Portland, OR 39 Years

JENNIE WEILAND Vice President PayneWest Insurance Beaverton, OR 21 Years

RUSS SCHWEIKERT President-Elect Ashland Insurance, Inc. Ashland, OR 28 Years

TIM CUNDARI Finance Chair Cundari Insurance Portland, OR 27 Years

ED DAVIS National Director Maps Insurance Services Salem, OR 57 Years

TYRA DRESSEL Executive Director Big I Oregon Portland, OR 29 Years

bigioregon.com

2022 BOARD OF DIRECTORS TJ SULLIVAN Legislative Chair BH Insurance Salem, OR 25 Years

KAITY BLACKSHER NextGen Chair Atkinson Insurance Group Portland, OR 17 Years

MICHELLE GALLARDO NextGen Immediate Past Chair The Partner’s Group Portland, OR 18 Years

DALLAS ROSS Timmco Insurance Beaverton, OR 9 Years

TRISH FULWILER J.D. Fulwiler Insurance & Co. Portland, OR 25 Years

DEBORAH MOHR Assured Partners Forest Grove, OR 26 Years

MARTY KANTOLA Nicholson and Associates/ Portland Division Portland, OR 38 Years

STEVE LACESA Oak Tree Insurance Lake Oswego, OR 38 Years

MATT PIDCOCK Valley Insurance LaGrande, OR 18 Years

KRISTON CORRELL JUUL Insurance Agency North Bend, OR 24 Years

BOB ROSSON Timmco Insurance Portland, OR 28 Years

STEPHEN SMELLEY Goldfinch Consulting Beaverton, OR 35 Years

THE DIRECTOR’S CORNER

By: Tyra Dressel Executive Director of Big I Oregon

As your Executive Director, I am constantly exploring ways to connect the plethora of benefits to our busy and engaged agency members. At this year’s legislative conference, I attended the State Executive meetings focusing on proactively adding to our member products and services cadre. As always, I come away from these encounters rejuvenated and challenged. An important caveat is that agency members are a busy crew pulled in many directions to serve their clients and employee needs ultimately. So with that lens, we’ve decided to continue offering virtual training and information sessions that keep our agency members’ time constraints in mind. Beginning this month, we will feature a new Big I Oregon touchpoint; Zoom sessions to highlight benefits. Key players will host these monthly sessions for the specific member benefits we’re highlighting. Jennifer Becker, Senior Director, Agent Development, Research, and Education IIABA, will explore Big I Hires on June 14th at 2 pm. Sign-ups will be available on our Education & Events Calendar on our website www.bigioregon.com, and your confirmation will include the Zoom link. You’ll be able to hop on, listen, ask questions, and leave understanding how you can utilize another valuable member benefit. Big I Oregon is devoted to working hard for our members and continually challenging ourselves to bring events, education, and advocacy in multi formats for impactful engagement. As our association grows in membership and Premier Partnerships, we’ve quickly discovered that expansion is needed for our state. As so many of you can attest, uniquely qualified candidates and an interested employment pool are quite low these days. So I am ecstatic to announce that Travis Wills has joined Big I Oregon as our new Operations 10 | Q3 2022 |

JOIN US FOR INSURCON 2022 Coordinator. He brings expertise in association database management, processes, and the ability to serve members with an eye for detail and a love of being a strong supporter behind the scenes. Travis spent many years at California Special Districts in addition to working for a multi association management firm. He is looking forward to rolling up his sleeves and working alongside LeeAnn, Melissa, and myself to enhance our online member experience, including social media management and on-site assistance with our in-person events. He looks forward to learning about all the resources Big I Oregon offers and meeting our members at our annual convention in Sunriver. There is so much happening and much to be excited about but what currently has me dancing is InsurCon 2022! This most definitely is the event to attend, and Big I Oregon is “All In”!! We have something for everyone and numerous reasons to be in Sunriver August 21-23: It’s In-Person • Future of the Industry Panel • Casino Night • Golf • Community Give Back • Additional Attendee Discounts • Networking • NextGen Putt-Putt • Tyler Asher, President, Independent Agent Distribution/Liberty Mutual • Kentucky Derby • Legislative Update & the Governor Race • Dan Ferrari, Sr. Vice President, Independent Agent Distribution/Liberty Mutual • The Beautiful Sunriver Resort • Exhibitor Showcase • Big I Oregon Member Savings • Kabir Syed, MBA, Senior Insurance Industry Executive & Thought Leader, Founder of Ennabl Inc. • Six Hours ABEN CE Voucher, a $144 Value • Cornhole Tournament • Interactive Sessions • Ethics. Join us to connect, grow and gain valuable insight to take your business to the next level! We can’t wait to SEE YOU in Sunriver!!

INSURCON

2202

Annual Convention

AUGUST 21-23RD SUNRIVER RESORT

Future of the Industry Panel Monday, Aug 22nd: KABIR SYED, MBA

Senior Insurance Industry Executive & Thought Leader Founder of Ennabl Inc.

TYLER ASHER

President Independent Agent Distribution Liberty Mutual

DAN FERRARI Sr. Vice President, Independent Agent Distribution/Liberty Mutual

STEPHEN SMELLEY Panel Moderator Founder/Goldfinch Consulting Incite Performance Group/Adviser

Big I Oregon is "All In" for our annual convention! We've got something for everyone. Join us to connect, grow, and gain valuable insight; to take your business to the next level.

| Q3 2022 | 11

AGENDA

2022 2022

E V E N T sunday | 8/21/2022

Golf Tournament/Meadows Course Team Building Activity

Kentucky Derby Opening Kick-off

Cornhole Tournament & After Party

Monday | 8/22/2022 Content to challenge the way you think abouT your business! Monday Morning Mastery

Trusted Choice Coalition

InCite Advisors

Big I Hires/WAHVE Agency Revolution

R E G I S T R A T I O N Member

399

Add'l Same Agency

199

NextGen &/or Guest

199

Golf Tournament add

149

Alternate Activity add Non Member 17 and Under

Questions? Contact: leeann@bigioregon.com

79 649 75

Future Industry Panel Luncheon

Annual NextGen Putting Tournament Live 3 HR CE

6 HR Voucher for Online CE

Cocktail Hour/Exhibitor Showcase Interactive Casino & Dinner

tuesday | 8/23/2022 Legislative Breakfast

Election Candidates State Legislators

Lobbyist/Roger Beyer

THERE’S STILL TIME TO MAP OUT YOUR SUMMER! Are you “All In” for InsurCon 2022: • Casino Night

• Incredible Speakers

• Golf Tournament

• CE & More!

Join us for another NextGen hosted Putt-Putt event -- this time in Sunriver!

INSURCON 2022 AUGUST 21-23 • SUNRIVER RESORT

iiabo.org/events

| Q3 2022 | 13

2022 Premier Partners THANK YOU TO OUR PREMIER PARTNERS FOR THEIR CONTINUED SUPPORT!

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VIRTUAL UNIVERSITY

17 “TESTS” TO DECIDE: EMPLOYEE OR INDEPENDENT CONTRACTOR By: Chris Boggs Executive Director Risk Management & Education, IIABA

“I don’t have any employees; they are all independent contractors.” “What makes them independent contractors,” the agent asks. “I pay them using a 1099.” OK, so most readers know that the reality of an “independent contractor” is not dependent on how the person is being paid – even if they are paid in mustard. The reality of an independent contractor relationship is based on the facts of the relationship. What follows are 17 “tests” to aide in deciding if the relationship is truly that of an independent contractor or an employee. If more than one or two “tests” are failed, the person is likely an employee based on the facts. And when employee status exists, workers’ compensation must be provided, and a premium must be paid. 1. Degree of control. When the worker is a true independent contractor, the contracting party does not have the right to control the method or manner of job performance – only the outcome. If the methods and manner are controlled, that’s an indication of employee status.

16 | Q3 2022 |

2. Right to discharge. The contracting party does not have the right to discharge an independent contractor as long as contractual obligations are being met. The right to discharge for or without cause is sign of an employee. 3. Right to delegate work. An independent contractor has the right to bring in whomever it wants to accomplish the purpose of the contract. The lack of such ability indicates employee status. 4. Right to hire and fire. An independent contractor has the right to hire and fire help in the performance of the contract. Lack of this right is a sign of employment. 5. Payment practices. Independent contractors are paid by the job not by the hour, week, month, etc. 6. Training. The contracting organization should not provide or require training for the contractor or any inexperienced employees of the independent contractor. 7. Skills. Independent contractors are generally seen as skilled workers. 8. Duration of the relationship. Independent contractors are hired for a specified time period. Continuous, ongoing work indicates employee status. 9. Hours worked. An independent contractor is allowed to set work hours. Employees are told when to show up, take breaks, and leave.

10. Independence. An independent contractor is allowed to and does work for a number of persons simultaneously. If not allowed, that indicates employee status. 11. Tools. Independent contractors provide their own tools. 12. Bids. Independent contractors generally bid for work. Lack of a bidding process often indicates employment status. 13. Profit or loss. Independent contractors may enjoy a profit or suffer a loss from the work bid.

17. Reports. Independent contractors are not required to submit oral or written reports or attend meetings (other than safety meetings) held by the contracting party. Compare the reality or facts of the relationship to these “tests,” if any “test” points to an employer/employee relationship, investigate more closely. Calling someone an independent contractor doesn’t make it so; paying them with a 1099 doesn’t make it so. To be a true independent contractor requires true independence from the contracting party.

Neither the IRS nor the jurisdictional workers’ compensation authority look kindly upon such 14. Contractual intent. The intent of the parties deception. The IRS will get its money and so will to create a independent contractor relationship the regulatory authority. As an agent, don’t take must be in writing. the insured’s “word” that a person or group of persons is/are independent contractors – ask 15. In business. The independent contractor is the questions. Make sure the insured “passes a principal of his/her own business. the test.” 16. Sequence of work. An independent contractor is allowed to determine the sequence of its work (not the sequence in which the trade is to be performed).

More information on the various methodologies available for deciding between an independent contractor and an employee is available from Big I’s legal department and can be found on the Virtual University website.

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PERSONAL LINES

THE ERA OF VEHICLE HACKING IS HERE. ARE INSURERS READY? By: Andrew Blancher, CPCU Picture a day in the hopefully not-to-distant future when we’re all fully back to our prepandemic routines (nice, isn’t it?). You’re back in the groove of your morning commute, looking forward to picking up on your audio book as you hop into the driver’s seat and start your truck. But rather than the normal hum of the engine turning over, nothing happens. Well, not nothing. Your media console lights up with an ominous message: “This vehicle has been hijacked. To unlock your truck, please forward five CryptoCoins to the following address.” There goes your good day.

A new era of vehicle risk The above scenario is a fictitious but entirely plausible account of just one of the emerging risks associated with vehicle hacking. Think of vehicle hacking as a cyberattack targeting various access points in a connected vehicle (that is, a vehicle that can wirelessly communicate and share data with other devices, platforms and internal and external networks and systems.). 20 | Q3 2022 |

Once a vehicle has been breached, an auto hacker can wreak all manner of havoc. Vehicle hacks could include: • shutting down the car or truck and demanding a ransom to restart it • commandeering the steering, braking, HVAC or other vehicle controls from the driver • denial of service attacks that temporarily disable a vehicle • encryption of personal or business data stored on, or accessed via, the connected vehicle As connected vehicle technology continues to evolve towards greater electronic control and wireless communication, the opportunities for malicious exploits will likely only grow. Every Bluetooth radio, telematics unit, tire pressure sensor, or remote keyless entry built into a vehicle could become a potential vector for a crippling cyber intrusion. Indeed, by 2023 nearly 70 percent of light-duty vehicles and trucks sold globally are expected to feature Internet connectivity, while 76 million connected cars are projected to be sold in that same year.

As connected vehicle technology proliferates rapidly, the state of vehicle cybersecurity doesn’t appear to be keeping pace. According to one industry expert quoted by the Detroit Free Press, the security status of internetconnected vehicles today “is pretty much the same as computers in the 1980s.” It’s a sobering assessment, especially when you consider how many cyberattacks are executed against computer systems that are often safeguarded by the most up-to-date technology. Fleet owners may emerge as a particularly ripe target for vehicle hackers. As one vehicle security firm noted, “By invading the command and control of the fleet management system, a talented hacker could potentially shut down an entire fleet currently traveling on the road. While recent attacks indicate that hackers require about $500 to release a single vehicle, it would take a king’s ransom to get all those trucks back into operation.”

insurance needs for vehicles equipped with connected vehicle technology. The endorsement is generally designed to cover certain expenses for private passenger auto and light/medium trucks associated with diagnosing, restoring, and repairing a vehicle after a hack. The coverage provides for the cost of repairing a vehicle’s computer system, temporary transportation expenses, and even ransom payments, among other related costs. (ISO customers can access ISO Circular LICA-2020-229 for the details on the draft coverage language and rule.) As the road becomes a target-rich environment for hackers, we’re working to stay ahead of this emerging risk by providing insurance coverage solutions that can help minimize and mitigate this 21st century threat.

A new endorsement and rating rule to cover certain vehicle hacking risks While vehicle hacking hasn’t yet become as pervasive a real-world threat as computer hacking, vehicle manufacturers are already on notice. In 2015, one automaker was forced to recall 1.4 million vehicles following the revelation from security researchers that a vehicle series was vulnerable to remote takeover. The ubiquitous software updates that desktop and mobile computer owners are so accustomed to are now becoming routine for vehicles as well. Risk transfer options must also keep pace with evolving vehicle technology. At Verisk, we’ve developed a new, optional Auto Hacking Expense Coverage endorsement and corresponding rating rule to help insurers address the

| Q3 2022 | 21

E&O

CAN YOUR WEBSITE BE USED AGAINST YOU? By: Mallory Cornell IIAW Vice President & Swiss Re Approved Auditor

Absolutely. As much as your website is a strong tool for advertising, posting information, getting referrals and even accepting payments, it also has a growing potential to be used against you in an E&O claim. Website content should receive the same consideration as a paper document when it comes to making promises and touting the skills of the agency being represented. Here are just a few risk management tips to keep in mind when evaluating the risks that may be present on your agency website.

From a content perspective, be mindful of the information and articles you are posting. If the content was created by the agency, are all the statements factual? The more specific the information being provided, the higher the risk of allegations against the agency for providing inaccurate advice. If the information is from another source, does the agency have permission to post it and has all the information been reviewed for accuracy? Also, be mindful of that helpful “click here” button provided to make it easier to contact the agency. A customer may decide to send personally identifiable information through the system creating a potential data breach exposure. These are just a few quick tips to remember when you’re reviewing or creating your website. Take a moment to review your website and ask yourself some important questions.

First and foremost, what standard of care are you setting through promises on your website. Avoid making impossible promises that could be difficult to defend at your E&O trial. Examples of this language found on websites include:

• Do you have a privacy statement on your website? • Are appropriate disclaimers included on your site? • Is all content on your website accurate and do you have permission to post it? • If you collect information or payments on your website, are you compliant with state and federal privacy and data breach notification laws and regulations?

1. “We start by taking the time to learn your business. We ask the right questions to uncover your unique requirements and individual concerns. Then we help you to understand your potential for risk, no matter how elusive it may seem.”

Contact me today at Mallory@iiaw.com to learn more about how I can assess your website and assist you in preventing it from being used against you in the event of a claim.

2. “We address your need for a comprehensive risk management program and can reduce your overall cost, increasing your profitability and productivity.” 3. “We dig into the insurance specs to make sure you include all proper coverages on every job you bid.” 22 | Q3 2022 |

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 any questions, please contact 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.

| Q3 2022 | 23

AGENCY OPERATIONS

CULTURE GETS HUMAN and more employees are thinking like my friend. “[Culture] is being reshaped in a crucible fired by the pandemic, the acceleration of automation, the rise of millennials and Gen Z in the workforce, and the Great Reshuffle,” the report noted. “Employees are demanding—and quite often getting—more freedom to work A close friend is deep in the throes of a job hunt. While he’s been with his current company where and when they want and more attention to their well-being.” for seven years, he’s seeking new opportunities now. There are a few traditional reasons, such The report found that this new culture as the fact that there aren’t a lot of chances embraces employees as humans first and for him to take on new projects or grow his workers second, with “flexibility, asynchrony, career, or that his compensation is stagnant. trust, belonging, and a holistic focus on wellBut perhaps the most important reason being” becoming the most important qualities is that my friend, once a work-from-home in a workplace. skeptic, adjusted his lifestyle to accommodate teleworking during the pandemic, and now For me, one of the most interesting tidbits that he’s experienced all the benefits that from the study was that flexibility wasn’t just a flexible work environment can offer, he’s good for employees—it can help companies, hooked. He’s had more time with loved ones too, by driving them “away from presenteeism (particularly his children); less time spent and toward performance.” It takes a strong, commuting and therefore more time available authentic company culture to support for hobbies or athletic pursuits (he’s become this, because accountability and trust are very fond of his morning neighborhood stroll); and the ability to pitch in more with household paramount, but it also means this structure “will work well no matter what time zone you chores and the caring of an ill and elderly live in or what time of day you do your work.” relative. However, his current employer is And when employees are satisfied with their still operating as if it’s 2019 and this flexibility companies’ time and location flexibility, they’re is a temporary situation. Its return-to-office 2.6 times more likely to be happy at their jobs, plans make no mention of telecommuting, and more than twice as likely to recommend asynchronous working or flexible schedules. working for that company, LinkedIn found. This is a big mistake. A new report from LinkedIn Talent Solutions called the 2022 Global Clearly, we’re never returning to (work) life as we knew it. What are some ways your company Talent Trends finds that company culture has culture has shifted, and what are you doing to undergone a massive overhaul—and more help mold it to this new, flexible future?

By: WAHVE

24 | Q3 2022 |

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LEGISLATIVE UPDATES

THE IMPORTANCE OF POLITICAL SYSTEM INVOLVEMENT By: Roger Beyer Big I Oregon Lobbyist Written April 4, 2022

The Oregon Legislature wrapped up the 35day session on Friday, March 4th, three days prior to the constitutional deadline. From an overall perspective, 271 measures were introduced this session and 117 passed. Five of those passed were budget bills and most of the rest had agreement of legislative members and groups. With the strong revenue forecast and the continued influx of federal funds there was plenty of money for legislative pet projects. Policy wise, except for the natural resource sectors, it was a quiet session. With the primary election just around the corner, things are about to quickly heat up. This year the Governor’s race has garnered most of the attention with officially 36 candidates, 17 Democrats and 19 Republicans. Others will also be in the field, as I will explain in detail shortly. On the Democrat side, it really comes down to two, Tina Kotek and Tobias Read. 26 | Q3 2022 |

These two are well known among state Democrats and have garnered most of the major endorsements and money. The Republican field is currently wide open. Of the 19, none are well known or can be labeled as the frontrunner. Four have raised or have more than one half million dollars in the bank, and a couple of others seem to have their own money to spend if they desire. It appears that 30% of the vote could win the nomination and as of now any of these six: Bridget Barton, Christine Drazen, Jessica Gomez, Bud Peirce, Stan Pulliam and Bob Tiernan could achieve that percentage. This does not include the expected independent, Betsy Johnson, who will not appear on a primary ballot for either party but must submit approximately 25,000 signatures to appear on the November election ballot. She has raised more money (more than $2 million) than any candidate from either party and has more than $4 million on the bank, which is 4 times more than any other candidate.

This means that for the first time since 1930, when Julius Meier was elected, as the first person to serve as governor who was not a member of a major political party, an Independent has a real shot at winning the Governor’s office. In that election, the Republican front runner died prior to the election opening the door for Meier, a former Republican, to win as an Independent. Johnson, a former Democrat, now has an opportunity to repeat history. This unprecedented occurrence demonstrates the importance of being involved in our political system. It is important we take advantage of this opportunity by registering to vote, doing our homework on the candidates, getting involved with those you think will best represent you and, most importantly, casting a vote for that person. To help you get involved and stay on top of the latest goings on, Big I Oregon hosts monthly political forums. The second Tuesday of each month at noon, via Zoom, we have been hearing from gubernatorial candidates and others about the latest issues and what is happening in our state. You may register on the Big I Oregon

Personal

website by clicking on the calendar on the home page www.bigioregon.com. Getting involved can be done in multiple ways: by financially supporting the candidate of your choice, donating to OIPAC (the political action committee of Big I Oregon), donating to InsurPac (the national Big “I” political action committee), attending town halls or going to campaign events where you can get to know the candidate personally and volunteering time to help get them elected. Donations can be made on our website, www.bigioregon.com, under Advocacy, Make an OIPAC Contribution. If you do any of these items and the person wins the election, you will have put yourself in a position to be the “insurance expert” for that new state lawmaker. This will pay dividends for you and your industry for as long as that person remains a lawmaker in the state. Do not miss this chance to be involved in the most interesting election of the past century.

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INDEPENDENT AGENT

MASTER YOUR AGENCY’S GROWTH POTENTIAL WITH THE SALES By: Jennifer Becker VELOCITY METRIC Big “I” Director of Education Programs

The annual Best Practices Study, a joint initiative between Reagan Consulting and the Big “I,” provides valuable insight into operations, finances and benchmarking information to the independent agency channel and wider insurance industry. With over 3,000 data points, the study contains a trove of valuable information agency owners can apply to their own agencies. But if you don’t want to delve too far into the study, the sales velocity metric is one highly impactful area your agency should immediately consider. Reagan Consulting developed the sales velocity formula and metric to compare an agency’s new business against other firms and report it in the Best Practices Study. Expressed as a percentage, sales velocity is calculated by dividing the new business written in the current year by the prior year’s commissions and fees. Sales velocity is among the most important drivers of organic growth and may be one of the most important indications of an agency’s ability to succeed and perpetuate over the long term. Organic growth is growth that is not acquired and an area an agency should also monitor carefully. The Best Practices Study provides the results in six different revenue categories to ensure it is comparing apples to apples. Test out the formula with your agency’s numbers and compare your results to Best Practices agencies. In the 2021 Best Practices Study update, the most recent report, agencies between $2.5 million and $5 million in revenue have an average sales velocity of 14.2%, with the top quartile achieving 23.8%. In the $10 million to 28 | Q3 2022 |

$25 million revenue range, the average is 12.5% and the top quartile is 20.1% An agency’s organic growth is driven by four primary factors: exposures, rate changes, client retention and new business generation. The first two are mainly outside the agency’s control. The last two are items an agency can proactively manage. Best Practices agencies build cultures of accountability where producers must consistently produce new business at levels consistent with other Best Practices agencies. The keys to excellent sales velocity? Developing a strong sales culture that drives high new business per producer and building the production force the right size for your agency. Best Practices agencies never stop looking for the right talent and aggressively invest in recruiting and developing young producers. Successful agencies also provide the training and tools to develop their staff, so be sure your agency is equipping producers to succeed with accountability, training, support and branding. The greatest potential for significantly improving your agency’s performance starts with one simple metric: Sales velocity. It allows you to isolate your agency’s new business contribution to your organic growth results. Focus on what your agency can do to impact the metric and drive results based on new business activity. Now is the time to take stock of where you stand, then utilize the proper tools for the specific practice or performance gaps to get the process started for your agency.

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