GREENMOUNTAIN


This Month's Feature Surviving Changing Markets
Ihopeeveryoneisenjoyingtheirsummer months!Withtheheatcomesunpredictable weatherandpotentialforflooding.Speaking offlooding,ourbeautifulStateofVermont wasrecentlyhithardwithfloodingand impactingseveraltownsinVermont, includingourCapitol Thedevastationfrom thishistoricfloodingwillcreatehardshipsfor manyresidentsandbusinessownersacross thestate.VIAAhasbeen,andwillcontinueto be,dedicatedinprovidingmemberswith importantupdatesandresourcesinatimely fashion.Thevolumeofinformationis overwhelming,butweendeavortoseparate themostimportantandusefulinformation aboveallelse.Letusknowwhatelsewecan dotosupportyouinrecoveringfromthis disaster.
Plansforthe2023VIAAAnnualConvention arewellunderwaywithregistrationnow open Theeventwillbeheldatanewlocation, KillingtonGrandResort,onSeptember18-20, 2023.Wesecuredincredibleovernight lodgingpricingandloweredtheregistration feestomaketheeventaffordableforall.Take
acoupleofdaysouttoenjoynetworking, learning,relaxationandinteractionwith companiesandvendors–youdeservea break!VisitVIAA.orgfordetailsand registration.Thegoalistocometogetherin personforfunentertainmentinadditionto somefantasticcontinuingeducation.After receivinggreatfeedback,wedecidedtobring backHospitalitySuitestopromote networkingamongstourmembers,carriers, andvendors.Youwillnotwanttomissit!
Anotherexcitingchangehappeningthisyear isthatwearemovingourAnnualMeetingand BoardInstallationtoNovember.Savethe dateforMonday,November13,2023.The EvolvingLeaderswillalsoholdtheirmeeting atthesametimewithaluncheontofollowin Montpelier Moretocomeonthedetailsas wegetcloser.
Onbehalfoftheboard,thankyouforyour continuedsupport.Ican’twaittoseeyouat theAnnualConventioninKillington!
Ifyouhavequestions,Iinviteyoutocontact reachmeat:Jfleury@therichardsgrp.com.
VIAA has posted several resources to help you and your insureds as you recover from recent flooding. As an agency, if you need assistance with your agency, you can apply for assistance through the Trusted Choice Disaster Relief Fund. Learn More
The 2023 VIAA Annual Convention will take place on September 1820 at the Killington Resort in Killington, VT. You're invited to attend this premier event including independent insurance agency members, Evolving Agents, and companies throughout the state of Vermont. Register Here
Agents, Carriers and other Insurance Professionals enjoyed a great day golfing at Vermont National on July 24. Check out the photos and play highlights.
After an extended period of low premiums and abundant capacity, we are now in the midst of a hard insurance market. Trusted Choice® is proud to announce the release of its Hard Market Toolkit. The toolkit assists Big “I" member agencies in navigating the current insurance market and helps them effectively communicate with their clients about its complexities. Learn More
Trusted Choice® and TechCompare vendor Textel are co-hosting a webinar, “Using Text Messages for Marketing & Improved Customer Experience" on Aug. 23 at 1:00 p.m. ET. Learn More
Rep. Llyod Smucker reintroduced the “Main Street Tax Certainty Act" and was joined by over 80 cosponsors in the U.S. House of Representatives. The Big “I" supports this bipartisan legislation, which would make permanent the 20% small business deduction (Section 199A) passed as part of the 2017 Tax Cuts & Jobs Act. See More
The independent agency channel is holding ground and making slow, steady gains in lines of business penetration, including homeowners, according to the Big “I" 2023 Market Share Report. See More
Cashmanagementinvolvesmonitoringand controllingcashinflowsandoutflows,investingidle fundsandmaintainingexpenses.It'sanessential aspectofrunninganysuccessfulbusinessand independentinsuranceagenciesarenoexception. Regardlessoftheirsize,focusorlocation,agencies needtomanagecasheffectively
Withinterestratescurrentlyontherise,independent insuranceagenciesneedtobeespeciallymindfulof theircashmanagementpracticestomaximizethe valueoftheircash,ensuretheyhavethefundsthey needwhentheyneedthem,reducetheriskof financialdifficulties,
Effectivecashmanagementisessentialforall strategies,fromexpandinganexistingagency, startinganewone,orsimplymaintainingfinancial stability.Forexample,ifanagencyislookingto expand,itneedstohavethecashflowtosupport newhires,marketingcampaignsandothergrowth initiatives.Ontheotherhand,ifanagencyisfocused onmaintainingfinancialstability,it needstobe
mindfulofitsexpensesandcashflowtoavoid financialdifficulties.
Automatedcashmanagementsweep productscanbeavaluabletoolfor independentinsuranceagencies.These productssimplifythecashmanagement process,reducingthetimeandeffort spent onmanualmoneymanagementbyhelping monitorandcontrolcashinflowsand outflows,investidlefunds,andminimize expenses—allowingagenciestomaximizethe valueoftheircash.
Cashmanagementsweepproductsallow agenciestoautomaticallysweepexcess cash outoftheiroperatingaccountsintohighyieldingaccounts,helpingthemtoearnmore ontheirfunds.Agenciesdonothaveto monitorinterestratesortransferfunds manually,whichfreesuptimeandresources forothertasks.
Theyalsoallowagenciestooptimizetheir commissionflow—anothercrucialaspect of aninsuranceagency'sfinancialhealth.By maximizingcommissionflow,agenciescan earnhigherreturnsonidlefunds,improve theiroverallcashflowandensurethey have enoughcashonhandtocoverexpensesand investingrowthopportunities.
Itisimportanttorememberthatthe insuranceindustryisconsistentlyevolving, anditisessentialforindependentinsurance agenciestobeproactiveandresponsive to changesinthemarket.Nowmaybethe perfecttimetoreevaluateyouragency's bankingrelationshipandtakeadvantageof risingrates.
Bytakingadvantageofarisingrate environmentandoptimizingcash managementstrategieswithacash
managementsweepproduct,agencies canbuildfinancialstrength and positionthemselves forsuccessin the longterm.
PatriciaSmithisvicepresidentanddirectorofcashmanagementservices ofInsurBanc, adivisionof Connecticut CommunityBankN.A.Shemanages anddevelopseffective cash managementsolutionsfor independentinsuranceagencies across thecountry.
Reprinted withpermission fromthe Independent Agent Magazine, copyright Independent Insurance Agentsof America.
UnionMutualannouncedthatTheNationalAllianceforInsuranceEducation andResearchhasnamedJennZandyofUnionMutualasVermont OutstandingCSRoftheYear. Asastatequalifier,Zandynowcompetesatthe Nationallevel,whichwillannounceawinnerlaterthisyear.
TheCSRoftheYearawardrecognizesthe contributionsandcommitmentofthosewhoserve clientswithintheinsuranceindustry. Inthe submissionessay,Jennnotesthathermother instilledinherearlyonthat‘everyonehasthesame hopes,dreams,andfearsasyoudo’andthis reminderhasaidedherwellinnavigatingdifficult conversationswithinherrole Jennhasbeenwith UnionMutualforover25years,primarilywithinthe CustomerSupport’sbillingteam.
VermontMutualInsurancehaswitnessedthecatastrophicimpacttothehomes andbusinessesintheirownneighborhood.Toassistthoseinneed,Vermont Mutualiscommittingsignificantfinancialassistance,and,similartotheir $1M COVIDreliefcontribution,theyaredirectingthefundstocommunitypartners whoarebestequippedtogetreliefintothehandsofthosewhoneeditmost. Readmore.
U.S. NEWS & WORLD REPORT, DISABILITY
TheHanoverInsuranceGroup,Inc.recentlywasnamedtoU.S.News&World Report'slistof2023-2024BestCompaniestoWorkForandwasalsorecognizedby theDisabilityEqualityIndexasa2023BestPlacestoWorkforPeoplewith Disabilities.
ChrisHynes,SHRM-CP,Human ResourcesLeaderforTheConcord Group,hasbeenselectedasaRISE 35Under35awardwinner.The annualRISEAward,hostedbyRISE Professionals,recognizestoprising talentwithintheInsuranceIndustry nationwidewhoaremakingan impactintheircompany, community,andtheIndustryasa whole.
TheInsuranceLibraryAssociation ofBostonrecentlynamedVermont MutualInsuranceGroup®President &CEO,DanielC.Bridge,astheir InsuranceProfessionaloftheYear for2023.
TheAwardispresentedeachyear toanindividualwhoexemplifies thequalitiesofaninsurance professionalwithastrong understandingandrespectforand fromtheinsuranceindustry.
VermontMutualInsuranceGroup®hasagainbeenrecognizedasoneofthe Top50PropertyandCasualtyinsurersintheU.S.byWardGroup,anAon company,andoneoftheindustry’smostrespectedbenchmarking organizations.Thisisthe15thconsecutiveyearthattheVermont-based insurerhasbeendesignatedasaWardTop50P&Cinsurer.
TheMEMICGroupcontinuesaddingexperiencedinsuranceindustrytalenttoexpand itsEasternRegionbookofbusinesswiththerecenthiresofunderwritersJulieM. SmithintheSoutheastandJeremyCardinNewEngland.
ProductionUnderwriterJeremyCardjoined MEMICinApril,bringingmorethanadecade ofexperiencewithhimfromtheagency side.
SeniorProductionUnderwriterJulieM.Smith joinedMEMICinMay.Herbackgroundand experienceininsuranceincludesmulti-line commercialunderwritingfornationaland regionalcarriers,aswellasagencysales andmarketingmanagement.
Afteranextendedperiodoflowpremiumsand abundantcapacity,wearenowinthemidstofa hardinsurancemarket.Althoughinsurance marketsarecyclical,everyhardorsoftmarketis different.Duringthesechallengingtimes,agents canprovetheirvaluetotheirclientsandimprove retentionthroughconsistentandthorough customercommunication,whichincludestalking tocustomersaboutwhytheirpremiumsarerising andwhattheyshouldexpectatrenewaltime.
TrustedChoice®isproudtoannouncetherelease ofitsHardMarketToolkit.ThetoolkitassistsBig“I" memberagenciesinnavigatingthecurrent insurancemarketandhelpsthemeffectively communicatewiththeirclientsaboutits complexities.
TheHardMarketToolkitofferspracticalsolutions andexpertadviceforindependentinsurance agenciestoconveytoclientsthereasonsbehind risingpremiumsandwhattheyshouldexpectat renewaltime,aswellasguidanceonexplaining
coveragechangesorrestrictionscausedby thehardmarket.Agentscanstreamlinea plan,communicateeffectively,handletough questions,andultimatelyretainclients ina hardmarket.
"Inthesemarketconditions,independent agents'rolesastrustedadvisorstotheir clientsismoreimportantthanever,andwe understandthechallengesthatagencies faceastheyservetheircommunitiesunder thesedifficultcircumstances,"saysCharles Symington,Big“I"executivevicepresident. "OurcommitmentistosupportBig'I' memberseverystepoftheway.TheHard MarketToolkitequipsTrustedChoiceagents withtheresourcestomeettheirclients' evolvingneeds."
ThedigitalHardMarketToolkitincludes a rangeoffeaturestosupportclient communications:
Anoverviewofmarketconditions. Expertadviceforsurvivingahardmarket fromsavvyindependentagents. Talkingpointsforclients. Clientemailtemplates.
Frequentlyaskedquestionsfrom clients. Ageneralcommunicationtimeline to keepyouragencyontrack.
Remarketingstandardsdocument asa fill-intemplate.
Personallinesandcommerciallines renewalforms.
Creativecontentsuchascustomizable videosandgraphicstohelpyouragency standout.
Thetoolkitwascuratedwithinputfroma teamofveteranBig“I"memberagents with anarrayofexperiencesinhardmarkets.
It'softensaidthateverycloudhasasilverliningInthecaseoftheadmittedlyverydark cloudthatwasCOVID-19,onesuchpositiveintheinsuranceworldwasthedropinauto insuranceclaimsandpremiums.
Fromanerrors&omissionsstandpoint,SwissResawthenumberofautoE&Oclaims dropfromaround190between2017and2019tojust118in2020.Thiswasnosurprise. Driverswithnoplacetogotranslatedneatlyintolessdriving,fewerautoaccidents, fewerclaimsand,therefore,feweragentmistakesbeingbroughttolight.
However,timeshavechangedagain.In2021,theGreatReopeningbroughtwithita returnoftheautoE&Oclaim.SwissRereceived183ofthemand2022isontrackto surpasslastyear.
Businessisback.Yourcustomershavelefttheirgaragesandareaskingyoutorenew existingpolicies,replaceoldvehiclesoraddanewones.Manyagentsaretakingon newpersonalandbusinessautoclients.Asaresult,we’reseeingthesameoldclaims.
HerearethreecommonscenariosthatarecontributingtothereemergenceofautorelatedE&Oclaims:
1. Incorrectvalueslistedafteravehiclechange.Yourcustomerwantstoreplacethe tired,oldvehiclethatiscurrentlyontheirautopolicywithanewpurchase.Youfillout achangerequestinthesystemofanationalinsurancecarrierspecifying“vehicle changeonly,”sothatthecoveragesremainthesame.Theformgoesdirectlytothe carrierrepwhoprocessesyourrequestandforwardsthenewdeclarationspageto thecustomerandyouroffice.Youreceiveandfileanddocumentit.Youhandledthe changepersonally,soyouknowitwasdonecorrectly.
Amonthlater,thecustomertotalshisnewride.Curiously,thenewdeclarationspage shows“StatedValue,”whichyouhadnotnoticedbefore,mostlikelybecauseyou
didn’treviewitproperly Infact,you neverlook.That’swhyyouweren’t awarethatthisnationalcarrierhada systemglitchwhereitdoesnotalways recognizenewvehicleidentification numbers(VIN)andconvertsthepolicy tostatedvalue.Whenyoureviewother files,youlaterfindoutthatitisa recurringproblemandhasimplications forvehiclesthatmayappreciatein value,suchasluxurycarsandhigh-end electricvehicles.
Commercialvehiclelistedona personalpolicy.Thecustomerasksto addavehicletothepolicy.Youenter themake,modelandVINinformation intothecarrier’ssystem.Thesystem flashesgreenandacceptsthe information.Hadtherebeenapotential problem,thesystemwouldhave flashedredandyourrequestwould insteadgotounderwritingforapproval. Thecarrierdoesnotrequireyoutoview thevehicle,soyoudonotaskabout modificationsorchangestothevehicle Instead,youbindthecoverageand moveon
Amonthlater,yourcustomer’svehicleis totaledThecarrierdeniescoverage, claimingthevehicleisacommercialgradetruckonapersonalautopolicy. Youseepicturesofthewreckedvehicle andseethatsignificantmodifications weremade.Itnowappearstobea commercialtruckusedinconstruction andsnowremoval.
Lookingupfromthephototoyour customer,youcomplainthatthe insureddidn’ttellyouthevehiclehad beenmodified.Hisplaintiveresponse: “Youdidn’task.”
Policycanceledforlast-minute payments.Aninsuredmakesalate premiumpaymentthroughtheagent’s officetoavoidacancellation,whichis notthefirsttimethishashappened withthiscustomer.Twodayslater,you seeanoticeofcancellationcome throughonthecustomer’saccount. Youknowthepaymentwasmadeat theofficeandsweptfromtheagency systembythecarrier,soyouassume thecancellationwillbereversed.No actionisneeded,andnoneistaken.
Threemonthslaterthecustomerhas anaccident,butthecarrierdenies coveragebecausethepolicywas canceledfornon-paymentYou receivedthenoticeofcancelationbut didnotcheckthesystemtoverifythe paymenthadbeencollectedbythe carrier.Further,noonesetareminder tofollowuptocheckthatthepayment wascredited,andthepolicystatuswas stillactive.
Insomecases,thelion’sshareoftheblame forthesethreescenariosbelongstoyour customerforfailingtoreadanyinstructions orinformationsenttothem.Sadly,gettinga jurytobelieveitismuchmoredifficult.You alwayshavetheoptionofgoingtotrial, takingthestandandtestifyingunderoath: “Yes,asalicensedprofessional,Imayhave madeasmallmistake butmycustomer shouldhavecaughtit!”
That’stheworstdefenseeverHonestly,if yousatonajuryoftheplaintiff’speers, wouldyoubuythatargument?
Ouradvice:SkipthetrialBetteryet,skipthe E&OclaimaltogetherToavoidangering yourcustomer,gettingsuedandfacingthe financialramificationsofanE&Oclaim,take afewminutestoasktherightquestions; reviewthereturnedquote,changeformor reviseddeclarations;andifyou’veinserted yourselfinthepaymentprocess,whichis notrecommended,confirmthatpayments madethroughyourofficearereceivedand creditedtoanactivepolicy.
Wegetit,timeismoney.Butanyjudgewill tellyou:Evenanordertakerneedstotake enoughtimetogettheorderright.
MadlynTombsisanassistantvicepresident,claims specialistwithSwissReCorporateSolutionsandworksout oftheofficeinKansasCity,Missouri.Insuranceproducts underwrittenbySwissReCorporateSolutionsAmerica InsuranceCorporation,KansasCity,Missouri,amemberof SwissReCorporateSolutions
Thisarticleisintendedtobeusedforgeneralinformationalpurposes onlyandisnottoberelieduponorusedforanyparticularpurpose SwissReshallnotbeheldresponsibleinanywayfor,andspecifically disclaimsanyliabilityarisingoutoforinanywayconnectedto, relianceonoruseofanyoftheinformationcontainedorreferenced inthisarticleTheinformationcontainedorreferencedinthisarticle isnotintendedtoconstituteandshouldnotbeconsideredlegal, accountingorprofessionaladvice,norshallitserveasasubstitute fortherecipientobtainingsuchadviceTheviewsexpressedinthis articledonotnecessarilyrepresenttheviewsoftheSwissReGroup (“SwissRe”)and/oritssubsidiariesand/ormanagementand/or shareholders
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