PIMA Insights Magazine - Fall 2022

pimainsights.or g

pimainsights.or g

Garvin PIMA President

pimainsights.or g

pimainsights.or g

As this year comes to a close, many of us find ourselves reflecting on 2022 and the challenges and successes of navigating through a year of recovery. During the past few years, we have embraced change—from new working environments to different ways of doing business to new ways of leading our companies. This year, I hope you and your teams had the opportunity to celebrate these transformations within your businesses—and are poised for growth in 2023.

I am happy to be part of PIMA’s journey too. For PIMA, this was also a year of recovery—from returning to in-person conferences, to having a record setting number of new members, to publishing new research for members. Our organization celebrates many successes this year, and I credit PIMA’s engaged Board of Directors, our Executive Director Ann Dieleman, and our PIMA team who helped deliver on some important initiatives.

Highlights of 2022: • Welcomed 25+ new members

President’s Message

Kevin

PRUDENTIAL + ASSOCIATIONS

HELPING TO MEET FINANCIAL CHALLENGES

Solutions that help members

The Prudential Insurance Company of America (Prudential) has been partnering with Association/Affinity groups, brokers, and TPAs for 75 years, bringing robust services and innovative solutions to their members. Today, we provide coverage to 7.9 million members of association and affinity groups, which include national, state, local, and regional professional associations: medical, legal, educational, trade associations, and unions, among others.

As one of the leading providers of Group Insurance in the United States, Prudential provides a full range of group life, long-term and short-term disability, AD&D, as well as supplemental medical products. In addition to providing important protection solutions to members of Associations and Affinity groups, Prudential has full service marketing capabilities, a state of the art digital enrollment platform and accelerated medical underwriting processes that help take the friction out of the underwriting process.

A focus on Financial Wellness

Financial Wellness Digital Portal

Combines learning and financial tools with personalized content to help members improve their financial wellness

Online Budgeting

Helps members manage their day-to-day finances and budget on a single website

Student Loan Assistance

Helps members choose the right repayment scenarios

For more information, visit Prudential.com/associations

Or contact Keith Schaub, Director, Association Sales, Association & Affinity Services, Group Insurance C 410-963-5198 Keith.Schaub@prudential.com

Student loan assistance services are provided by Student Loan Benefits, Inc., doing business as Vault. Credit counseling and debt management services are provided by GreenPath. Vault and GreenPath are third-party providers that are independent from Prudential and its subsidiaries. They are provided through voluntary, individually selected programs that are not group insurance products and are not part of any employee benefit plan, or any program sponsored or endorsed by an employer.

Access to Vault student loan assistance services, GreenPath credit counseling and debt management services is provided through Prudential Workplace Solutions Group Services, LLC (“PWSGS”).

Prudential Workplace Solutions Group Services, LLC (“PWSGS”) provides access to a number of Financial Wellness products, services, seminars and tools offered by PWSGS, its affiliates or third parties. PWSGS is an affiliate of Prudential Financial, Inc. PWSGS is not a licensed insurance company, does not provide insurance products or services and does not provide financial, investment or other advice. Individuals should consult appropriate professionals when making financial, investment and tax decisions. The Financial Wellness offerings are made available for general financial education purposes. Access to Financial Wellness products, services, seminars and tools is not conditioned upon the purchase of insurance or retirement products or services from any Prudential company.

Group Insurance coverage is issued by The Prudential Insurance Company of America, a Prudential Financial company, Newark, NJ. © 2022 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide

Executive Committee President

Kevin Garvin Gallagher Affinity President-Elect

Scott Berlin New York Life

Treasurer Pamela Moy AMA Insurance Agency

Secretary Angela Daisy Mako Direct Marketing

Past President (ex officio)

Chris Burke AGIA Affinity

At-Large Director

Kelly Abeles Prudential

At-Large Director

Kara Shipulski

Liberty Mutual

Executive Director (ex officio)

Ann Dieleman PIMA

Directors

Shane Canfield WAEPA Sean Cox

First Consulting & Administration

Elizabeth Johnson Securian Financial Tracey Gray-Walker AVMA Trust

Michael Guglielmo Fidelity Life Association Jean-Marie Lovett Bindable

Avery Smith Kelsey National Corporation

Committee Chairs Executive Committee

Kevin Garvin

Nominating Committee

Chris Burke Finance Committee

Pamela Moy Programming Committee

Avery Smith

Sponsorship Committee

Kelly Abeles

Insights Awards Committee

Brett Conley

pimainsights.or g

Hyper-Personalization for Life & Health Insurance

Leveraging hyper-personalization in the fight for consumer attention and share of wallet is going to mean the difference between a lightweight and heavyweight marketing strategy.

pimainsights.or g

PIMA Insights is the official publication of the Professional Insurance Marketing Association®

35 East Wacker Drive, Suite 850 Chicago, IL 60601-2106 817-569-PIMA (7462) pimainsights.org

By Jane J. Wang of Optimity

Building Trust in Sponsored Benefits: Why AMBA Acquired the Mercer Associations Business

A look at how AMBA, building on its key investment areas, acquired businesses that helped expand its technology, marketing, and data and analytics capabilities.

By Steve Cardinal of AMBA

President’s Message PIMA President Kevin Garvin highlights PIMA’s 2022 successes.

Multi-Carrier Platform (MCP) Important in Commercial Insurance, and What Will It Take

Multi-Carrier Platforms (MCPs) have grown a lot during the pandemic and provide access to all carriers and MGA-MGU quotes in one place. A clear winner has yet to emerge in commercial lines, with several platforms vying for this status.

• Received 30+ sponsor and supporter commitments

• Streamlined member communication to bi-monthly email Briefs

• Published a research report on embedded insurance in partnership with PIMA member Majesco

• Donated $2,500 to charitable efforts in Louisiana communities and Urkraine to help with their relief efforts through our conference golf tournaments

• Hosted our largest meetup event at InsureTech Connect Las Vegas in September where 50+ members of the PIMA Community met for additional networking

• Launched a redesigned website with improved member navigation and easier access to member resources

Our achievements are also due to engaged PIMA members like you. Our community has been fortunate to learn from your expertise. Whether you contributed to an

online blog or article, a webinar, an in-person conference session, or magazine column, you contributed to the thought leadership of this community, and we thank you for your contributions.

As my Presidential year draws to a close, I want to thank PIMA’s Board of Directors and Committee, Interest Group and Advisory Forum Chairs for their leadership and flexibility this past year. I would like to especially acknowledge Past President Chris Burke and Incoming President Scott Berlin for their friendship and support during my term. As a longtime PIMA member, it has been an honor serving as President of this organization.

I look forward to seeing PIMA continue to prosper and grow in 2023. Please join us at our Winter Insights Conference, February 1-4, 2023, in Coronado, CA and I can thank you for your support in person.

Kevin can be reached at kevin_garvin@ajg.com

From the EXECUTIVE DIRECTOR

Ann Dieleman PIMA Executive Director

Each year PIMA surveys members to keep a pulse on what they value most about membership and what they find of interest for new member benefits. In 2022, in addition to our annual online survey, we reached out by phone for short 1:1 phone interviews. Thank you to members who contributed to our outreach efforts this year by providing the important gift of feedback through the online survey or the 1:1 interviews.

I wanted to share with you highlights of the feedback.

Email: Preferred Communication

It’s clear; PIMA members prefer to receive PIMA news via email far more than any other method (social, print, online). This summer we made concerted efforts to consolidate member communications into two monthly briefs, with fewer standalone emails and provide timely information and resources in each. Plus, all members have the option to self-manage their community digests, including the frequency. Please be sure to mark pima@ pimainsights.org and @ConnectedCommunity.org a safe sender.

Networking: Ranked Highest Member Value

It’s no surprise members value PIMA’s 1:1 networking opportunities. We’ve added a fall Meetup at ITC Vegas (50+ attended in 2022) so save the date for 2023. We also heard conference attendees want better scheduling options. Beginning in 2023, PIMA will be using the Brella meeting app because of its dynamic 1:1 networking functionality, specifically scheduling options that allow attendees to connect and book meetings. Plus, attendees will see new, additional networking events at our 2023 conferences.

Legislative & Regulatory: Topic of Importance

We continue to hear from members the value in receiving up-to-date legislative & regulatory (L&R) news. In 2023, the L&R Special Interest Group will host quarterly L&R sessions at each conference and via Webinars. If you are interested in serving on the L&R Interest Group or speaking at a upcoming L&R session, please email Chair Sean Cox at sean.cox@firstconsulting.com.

Online Tools: Improve the Member Experience

Members shared they value the year-round educational content, including articles, research and case studies, however accessing this information could be easier. Earlier this month, PIMA launched a new website with improved navigation and access to a dedicated member home page. I encourage you to navigate the new website and let us know your thoughts. Visit the site at www.pimainsights.org

Thank you for your support this past year. With your help we had a successful year, including record new member growth, a return to in-person conferences, new research, and a new website. As a member-driven organization, we appreciate your input throughout the year. Please let us know how we’re doing and what we can do to improve member services.

Ann can be reached at ann@anndieleman.com

Members in Transition Benefit Any member who has been part of the member community for 5+ years is eligible to receive up to 12 months of a complimentary membership and discounted registration fees for our semi-annual conferences. Contact Ann Dieleman at membership@pimainsights.org for more information.

•

•

•

Sam Diphilippo: 301-821-1095, samuel.diphilippo@thehartford.com

Greg Pihl: 860-547-2483, gregory.pihl@thehartford.com

TheHartford.com/association

New PIMA Website: Now Live!

The new PIMA website is now live and ready for you to use. We invite you to take a look around the site. Then log in to see your personal Member Home page to access all your member resources in one place. If you have questions regarding the website or available resources, please email membership@pimainsights.org.

Updating Your Profile in the New Member Portal

The PIMA member community is growing. To ensure others can connect with you and your organization, please log in and make sure your PIMA profile is up to date. You can also link your social accounts, search the member directory and see the latest affinity resources all from your Member Home page.

Log in to your PIMA account to review your Member Home page.

Mark PIMA on YOUR SAFE SENDER LIST

Are you receiving PIMA electronic communications? Are you receiving your weekly Community Digest? Please be sure to mark pima@pimainsights.org and @ConnectedCommunity.org on your safe senders list.

PIMA Winter Insights Conference

February 1-4, 2023 Coronado, CA

PIMA Winter Insights Conference

Keynote Speakers

Jones Partner HSCM Ventures

Adrian Jones is a partner at HSCM Ventures, the venture capital investment arm of Hudson Structured Capital Management Ltd., an alternative asset manager in re/ insurance and transport. Before joining HSCM in 2021, he was Deputy CEO of P&C Partners at SCOR, where he set-up and led SCOR P&C Ventures. From 2010 to 2016, he was head of strategy at RenaissanceRe. He started his career in 2001 at Bain & Co and has lived/worked in New York, Paris, Bermuda, Brussels, and Stockholm. He has board roles at several companies in the insurance sector.

The Future of InsurTech

What does the distributor of the future look like, and how should insurers be prepared to work with them? Join venture capitalist Adrian Jones as he looks at technology, capital, and people and how each is impacted by this rapidly evolving insurer/distributor interface.

Anton Gunn is a former senior advisor to President Barack Obama and a leading expert on Socially Conscious Leadership. He was the first African American in history elected to the South Carolina Legislature from his district early in his career. Anton is a graduate of the University of South Carolina (USC) where he played SEC football for the Gamecocks. He also earned a master’s degree in Social Work from USC and was a Resident Fellow at Harvard.

Radical Recovery - How Great Leaders Come Back from Tough Times

Motivated and prepared teams with the right tools can not only survive a crisis, but they can also thrive in a crisis. Unfortunately, the best teams can quickly fall apart in turbulent times without a crisis leadership strategy. Global pandemics, racial and social unrest, economic calamity, and other catastrophic events are just a few potential

We are pleased to offer event cancellation insurance for the Summer Insights Conference from Buddy Insurance. Purchase within 48 hours after registering.

Adrian

Anton Gunn CEO Strategy Group

crises that can devastate an organization. Not having the tools to respond can cost an organization everything. Loss of revenues, market share, brand positioning, plus a loss of talent and employee trust are the first things that can impact your organization in times of crisis.

Networking and Business Development

• Welcome Reception

• Networking Breaks

• PIMA Structured Afternoon Networking

• PIMA Closing Awards & Recognition Celebration

Peer Advisory Forums

February 1 - 2:30 p.m. – 4:00 p.m.

PIMA members will most definitely want to take advantage of this unique member benefit and plan their travel to the upcoming Winter Insights with the forums in mind. The forums give you an opportunity to share thoughts and ideas with other executives and partners across the industry specifically focused on the unique topics most relevant to your member type.

Agency CEO – Invitation Only

CEO forum attendees have greatly benefitted from the new tools, techniques, and resources shared as best practice insights by fellow CEOs. Making these sessions even more valuable has been follow-on conversations in subsequent CEO forums by attendees who’ve implemented from these insights. If you have specific topics you would like to address, please contact Chris Burke at CBurke@AGIA.com

Voting member + 1 per member company (2 per member company) are invited to attend the peer forums.

Business Partners

If you have specific topics you would like to address, please contact Patrice Nolan at patrice@competiscan.com

Distributors

If you have specific topics you would like to address, please contact Jean-Marie Lovett at jmlovett@bindable.com

Product Providers

If you have specific topics you would like to address, please contact Kara Shipulski at kara.shipulski@ LibertyMutual.com.

We’re excited to announce our new networking app–Brella!

Brella streamlines the conference experience by allowing you to pre-schedule meetings and connect with fellow attendees before, during, and after the conference. The new meeting app opens January 5, 2023.

Visit the Winter Insights Conference Website for a complete agenda.

Hyper-Personalization FOR LIFE & HEALTH INSURANCE

Combining the one-two punch of wearables data and health risk scoring for a bigger impact on insurance sales.

Jane J. Wang CEO Optimity

In a memorable scene from the movie “Minority Report”, a police officer (Tom Cruise) walks into a shopping mall. The time period is set sometime in the future. His eyes are scanned by 3D screens as he walks in, resulting in his name being called out by multiple commercials playing around him. They seem to relate to his interests, with one in particular calling “You look like you could use a beer!”.

Personalized ads and offers were a highly futuristic concept 20 years ago when this movie debuted. Today it feels much less so given that personalized, targeted digital marketing has become the norm.

In the fight for consumer attention, personalization has been a strategy since the internet came into our daily lives in the 1990s. With billions of data points now available through online activity, targeted digital experiences are expected. Online shopping today means visiting a retailer’s site and receiving various specialized recommendations based on your personal behaviors and interests. When we leave that site it isn’t surprising to see ads follow us, reminding us of the items we found interesting.

Now consider where we’ve arrived with the many connected devices in our lives. Beyond advertising, we’re accustomed to a personalized experience for just about every digital activity and transaction. Smartphones, wearables, and other internet-connected devices deliver highly customized features that integrate seamlessly and aim to improve our daily lives.

Where can it possibly go from here you may wonder?

One word: hyper-personalization. If personalization is the “lightweight” fighter in the ring that wins with nimbleness and agility, hyper-personalization is the heavyweight with the bigger impact.

Hyper-personalization leverages real-time data from wearables and other connected devices to better understand consumers to customize their experience. With a hyper-personalized approach, the goal is to tailor offerings to meet their unique needs. The key is being able to factor in the real-time information and continuing to adjust as the data changes.

But it isn’t just significant to digital advertising. The opportunity to customize the insurance purchasing experience now looms large given the vast amount of health data being collected by wearable technology. With a typical wearable user generating 2 - 5GB a day of data, and the average person interacting with their phones at least 3.25 hours a day, there’s a wealth of information on individual’s health and activity available and it will only be surging in the coming years.

Consider this: the expected market growth globally for wearable technology is 13.8% between 2022 and 2030. It’s no surprise that this translates to significant potential for healthcare and related industries to leverage the data for improving consumer health and customizing related offerings.

nsights Why Health Risk Scoring is the Future

For the truly personalized approach to be a “knockout”, taking it to the next level means combining the wealth of consumer data with science. At Optimity we’ve created a health risk scoring tool, the Optimity Health Grade™ combines the user-generated lifestyle data generated by users of our app with science-based scoring that incorporates government research and behavioral science to produce an individual’s live health risk profile. These health risk insights can then prompt customized microeducation and user journeys to drive engagement and adoption of healthier ways of living.

Optimity Health Grade™ has been in market since the beginning of 2022. Available to our 2.7 million users across North America, the score is a culmination of data gathered through the app including steps, weight, active minutes, sleep, nutrition, stress level, SpO2, VO2 Max, resting heart rate, and HRV. These are then factored along with lifestyle information to produce a real-time score reflecting a user’s level of overall holistic health.

So far we’ve seen strong user engagement with the Health Grade™ dashboard in the app. For those engaging with their scores, they are provided personalized content in the app to educate them on relevant topics that can improve their health. They also receive micro-quizzes and rewards to incentivize them to make the changes that will positively impact their wellbeing. We’ve seen increased physical activity metrics such as 1,200 more daily steps and improvement to mental health assessments too.

Hyper-Personalization Potential for Underwriting and Insurance Sales

What makes it particularly exciting is the opportunity for customers to make changes that translate to positive impacts on the premium rates being offered life and health insurers. By factoring in the real-time scores from Optimity for applicants, insurers can become more competitive in the point-of-sale experience.

Imagine a potential insurance customer completes their application which then goes to underwriting. Typically there would be an assessment based on the customer’s responses and level of associated risk. These responses combined with medical information provide a snapshot in time.

Now imagine the application incorporates up-to-the-minute information on an applicant’s overall health risk to round out that picture.

Here are just a few of the impacts we’ve identified for how health risk scoring can change the insurance experience:

● Better customer experience when buying and owning life and health insurance products

● Lower underwriting costs for carriers with the ability to dynamically adjust policy premium that matches the risk of the member

● Faster time to bind and settle life insurance policies

It can also mean that for consumers shopping for policies, they will be placed in the driver’s seat when it comes to proactively living longer, healthier and better. Imagine seeing that your Health Grade could be improved by adding more steps to your day and hours of quality sleep. That improvement could then translate to a more favorable health risk score over time, which would then lead to improved insurance offers as you see your score change. Feeling empowered to make those changes and seeing the resulting impacts with insurance offers can make the process of buying insurance that much more positive.

Finally, insurers can leverage a health risk score ongoing with inforce customers to continue to deliver relevant products or improved rates. They can potentially engage with customers more regularly based on the real-time information they receive and use it to help them obtain the most beneficial coverage as their health risk profile changes.

SUMMARY

Leveraging hyper-personalization in the fight for consumer attention and share of wallet is going to mean the difference between a lightweight and heavyweight marketing strategy. With the wealth of data from wearables and access to health risk scoring tools like Optimity’s, the future of insurance is looking that much more personalized.

To learn more visit: https://www.myoptimity.com

1 https://www.globenewswire.com/news-release/2022/08/15/2497937/0/en/Wearable-Technology-Market-Size-to-Reach-USD-392-4-Bnby-2030.html#:~:text=15%2C%202022%20(GLOBE%20NEWSWIRE),of%20around%2048.6%25%20in%202021.

Hear Jane Wang speak at Winter Insights Conference during her session, “A Holistic Customer View: Bringing in Health & Mental Health Dimensions.”

Building trust in sponsored benefits: WHY AMBA ACQUIRED THE MERCER ASSOCIATIONS BUSINESS

Steve Cardinal CEO AMBA

When Association Member Benefits Advisors (AMBA) announced our recent acquisition of Mercer’s Associations business, I heard from members of PIMA who understandably wanted to learn more about me, AMBA, and why AMBA made this bold decision.

I’m humbled by the opportunity to connect with PIMA members because of the unique role PIMA plays in connecting organizations that would otherwise be considered competitors. From my perspective, the sponsored benefit space has an incredible opportunity for long-term success. Associations and other affinity organizations may struggle independently, but with valued partners from the members of PIMA, they have a chance to remain relevant.

At AMBA–one of the leading providers of end-to-end insurance, marketing, and administration services to affinity groups across the U.S. and Canada–we share that belief: The success of others in our industry ensures a vibrant community that will make all our stakeholders more successful. In short, a rising tide lifts all boats.

We fully understand the critical historical relationship between Mercer and PIMA, and I take the ongoing stewardship of that relationship personally.

Why?

I’ve been in the insurance industry for almost 30 years. I entered the business because, for maybe the first time in my life, I listened to my father. As I was considering an offer to sell software, he told me, “If I could do it all over again, I would go into insurance.” I took his advice, turned down the offer, and started my career selling insurance for MetLife.

I loved the peace of mind customers had after we met, the trust we developed, and the knowledge that their families would be protected because of our relationship. That feeling of connecting and building trust has guided me throughout my career.

I spent several years on the carrier side with publicly traded companies. My early roles were focused on sales and distribution, which led to managing complex affinity marketing organizations. Along the way, I became the P&L leader for multiple insurance product lines. By early 2017, these experiences steered me towards the opportunity to lead AMBA.

Today, in addition to being a leading one-stop-shop service provider to affinity groups, AMBA is one of the largest organizations solely focused on affinity associations’ and their members’ needs. We have been recognized as one of the fastest-growing companies in the industry. We have

nsights accomplished year-over-year organic growth, fueled by robust marketing and enrollment capabilities built on our proprietary technology and market-leading processes.

When I joined AMBA in 2017, AMBA was a nearly 40-yearold family-run business with an incredible growth story. It had established trusting relationships with various associations and carriers and had the most passionate team of associates I had ever met. I was quickly convinced that we could write exciting new chapters of this growth story by making critical investments in people, processes, and technology.

We have done just that by joining the existing leadership team of AMBA and several key friends and colleagues who have helped me solve complex problems over the years.

We first worked to understand the values and needs of our customers, employees, benefits advisors, association partners, and carrier partners to build and validate our growth thesis. During this process, we identified key areas of investment–technology, marketing, data, and analytics–and other foundational programs that would be required to serve our clients at an even higher level. Our Board of Directors was excited that these investments would allow us to scale and ensure we could offer valuable benefits to protect more and more affinity group members.

Most importantly, we sought to ensure that our association and carrier partners could grow alongside AMBA.

Over the next several years, we spearheaded industryleading organic growth and acquired several businesses focused on the affinity space. These fantastic organizations had relationships with associations and carriers that spanned years and, in some cases, decades. They also had super-talented individuals dedicated to helping customers, members, and association partners.

Building on our key investment areas, we acquired businesses that helped expand our technology, marketing, and data and analytics capabilities. Following each acquisition, we carefully integrated the teams with minimal disruption, worked hard to retain talent, and established solid relationships with our new carrier and association partners.

It is rewarding for me to watch our stakeholders thrive alongside our growth. We have seen virtually all the association relationships from the legacy AMBA days prosper by providing top-notch benefit solutions to their members and increasing membership numbers when membership growth has been stagnant. Meanwhile, we’ve used our existing capabilities to help grow our new association clients through expansion.

It is exciting to watch employees that were part of each acquisition build incredibly successful careers at AMBA, flourishing in our growing organization. We have carriers

we have partnered with for years that are excited about reinvigorated growth and new carrier partners who are eager to be part of our story.

So why were we interested in the Mercer Association business specifically?

AMBA was approached about the opportunity to acquire Mercer’s Associations business through connections who were intimately knowledgeable about AMBA’s culture, growth trajectory, history of successful prior acquisitions, and intense focus on affinity partner success. High on Mercer’s priority list was to find an organization that would make a perfect new home for its associates and client relationships. While there were many interested parties, we were honored to be chosen to accept that responsibility earlier this year.

During the acquisition process, I had the chance to meet with several employees, associations, and carrier partners, which helped confirm that our cultures and values were completely aligned. The legacy Mercer associates had the same passion for helping customers that had fueled me early in my career when I was directly helping and building trust with customers by selling life, auto, and home insurance.

The businesses complement each other almost perfectly. As a result, our association partners benefit from a company with a broadened product suite, marketing expertise, distribution capabilities, technology, and administrative platform. The talented teams from legacy AMBA and legacy Mercer are integrating and working well together to serve our associations in new and evolving ways.

I’ve been humbled to work alongside my new coworkers, continuously impressed with how they mesh seamlessly with the legacy AMBA teams. Together, we are finding new ways to improve the solutions we offer to association members and preparing for our next chapter. To accomplish this, we have identified several investments to ensure the next wave of growth for AMBA and our partners. These include adding new technology, marketing programs, and critical resources to bring our company and clients innovative perspectives and expertise.

AMBA is grateful for PIMA’s involvement with organizations that support the sponsored benefits space. PIMA provides the entire industry with ways to interact and work together to ensure a healthy association and affinity benefits environment. Our legacy Mercer colleagues have valued their historical relationship with PIMA, and now AMBA is excited to continue that relationship with active participation. As we move forward, we hope we can be as much of a resource for PIMA as PIMA has been to the broader industry.

To learn more visit: https://www.amba.info

“Paws”and Decide –

Is Pet Insurance in Your Future? EXPLORING THE MARKET AND REGULATION OF PET INSURANCE

Kathy OFarrell Regulatory Affairs Manager First Consulting

Sean Cox President First Consulting

Is your company considering a role in pet insurance. As the pet insurance market continues to grow at a rapid pace, regulators are taking notice and the NAIC has now issued a Model Regulation on this insurance. Let’s explore the market and the regulator response.

What are the Market Facts?

Pet insurance is becoming more common in the United States. Many Americans adopted or purchased pets for companionship during the pandemic. In fact, approximately one in five households acquired a cat or dog between the onset of the COVID-19 crisis and May 2021, according to the American Society for the Prevention of Cruelty to Animals. The total number of insured dogs and cats has been rising by double digits although it is still a small number, covering between 2.5% and 3% of all pets. By comparison, up to 20% of pets are insured in some European markets.

Sales of pet insurance are growing at a fast clip. According to the North American Pet Health Insurance Association (NAPHIA), industry in-force gross written premium has more than doubled since 2018:

• 2017 – $1.030 Billion

• 2018 - $1.254 Billion, a 21.7% increase over 2017

• 2019 - $1.558 Billion, a 16.7% increase over 2018

• 2020 $1.986 Billion, a 27.5% increase over 2019

• 2021 – $2.591 Billion, a 30.4% increase over 2020 which equates to a $700 Million increase in premium over 2020.

There are now 4.41 million pets insured across the United States and Canada. According to the Humane Society of the United States, there are over 128 million homes in the U.S. that own pets, and some own multiple pets. This means

only a small fraction of the total number of pets are presently insured.

What are the Product Challenges?

As more pet owners bought coverage, complaints followed. They include: 1) consumer dismay over rising premiums, 2) disputes about what constitutes a preexisting condition which many policies exclude from coverage, and 3) waiting periods from two weeks to 180 days before claims could be incurred. Consumers expect pet insurance to behave more like the health insurance they are used to buying.

Why is there a Model Law?

The booming trend of pet insurance drew the attention of regulators. Prior to introducing an NAIC Model Pet Insurance Law in April 2022, the product had varying regulation and oversight.

Consumer confusion is the driver behind the new model law. The model will help people understand better what they are buying. Here are the highlights of what the Model Law does:

• Grants buyers the right to a refund within 15 days of purchase if they have not filed a claim;

• Allows insurers to exclude coverage of preexisting conditions, while placing the onus on the insurer to prove the condition was, in fact, preexisting;

• Prohibits waiting periods on coverage for accidents;

• Allows, in new policies, waiting periods of up to 30 days for illnesses or orthopedic conditions not resulting from an accident, and requires a provision to waive the waiting period if the pet is examined by a veterinarian;

• Prohibits a requirement that the pet be examined by a veterinarian before policy renewal;

• Prohibits requiring that the buyer participate in a wellness program, which is not insurance, before being allowed to purchase insurance;

• Prohibits the marketing and sale of wellness programs during the sale, solicitation or negotiation of insurance; and

• Requires producers to be appropriately licensed and trained.

nsights

Coverages that are available include:

• Accident only

• Accident and Sickness

Wellness plans are available but cannot be sold at the same time as pet insurance as they are not considered insurance.

It’s important to note that this Model is not law, but rather states will decide to enact this Model or their own version.

What States have Pet Insurance Laws?

There are only two states in the country that have pet insurance laws – California and Maine.

California was the first state to adopt comprehensive legislation which took effect in 2015. California law focuses on clear disclosures to consumers. Some say the NAIC Model Law is patterned after the California law.

Maine became the second state to regulate pet insurance. The law becomes effective January 1, 2023 and follows the NAIC Model Law version before it was finalized. It contains more training requirements than the final NAIC Model Law.

Senator Heather Sanborn of Maine said a new law is necessary because “The paradigm under which pet insurance is regulated does not match consumers’ expectations about what coverage they will receive.”

Producer Training

Producer training requirements are being left to the states. Many health insurance brokers would like to be able to obtain an endorsement to their license that would enable them to sell pet insurance–so they could sell health insurance for the entire “family.” Allowing that may be possible even though pet insurance technically is regulated as property and casualty insurance, not health insurance.

Whether and how veterinarians may be involved in advocating particular insurance products is not addressed in the Model, but it is being considered separately by an NAIC working group that is reviewing licensing standards for people who sell pet insurance.

The Future

“Paws” and decide–does Pet Insurance have a future in your portfolio? The booming pet insurance market may be poised to help you achieve your marketing and sales goals, but it’s important that we also understand that state regulators will continue to implement regulations to govern this coverage.

First Consulting is an Insurance Compliance Consulting Firm, founded in 1969. First Consulting assists carriers, and other entities, with: developing and gaining state approval of new and updated products; advertising compliance; carrier and TPA licensing; regulatory monitoring; and on-line compliance training.

To learn more visit: https://www.firstconsulting.com

ng he ustry

lts with ngage.com

Why Is a True Multi-Carrier Platform (MCP) Important IN COMMERCIAL INSURANCE, AND WHAT WILL IT TAKE?

Greg Boutin CEO Relay Platform

Everyone in the insurance industry knows it: the pandemic has precipitated a massive wave of change in brokering.

The pandemic combined pre-existing undercurrents into one giant wave of change that put quote-bind-issue systems on C-suite agendas across the globe.

As a result, and just as they did in Home and Auto, insurance placements are now becoming increasingly digital.

In practice, it means that brokers in commercial lines use platforms to collect quotes for their clients. Almost invariably, multiple quotes are required, from different carriers: 3 to 5 on average.

Securing such quotes is a painstaking process. In most lines of business, and until recently, it still required logging into some proprietary portal maintained internally by a carrier IT team, re-entering data (and mistakes abound at that stage), collecting the quotes and entering those back into a spreadsheet, which is in turn used to create a not-sonifty-looking client proposal.

And in many cases, the portals refer the user to a human underwriter, over email. Or in the first place, since many lines and carriers do not maintain any automated portal. That means more manual cut-and-pasting.

Given all that, it is no surprise that commercial brokers and agents spend 90% of their time on that process.

Enter Multi-Carrier Platforms (MCPs).

Those platforms, which have grown a lot during the pandemic as you can guess from my introduction, provide access to all carriers and MGA-MGU quotes in one place.

They are at different stages of development, and rely on the availability of APIs (Application Programming Interfaces, or mechanisms that enable two software components to communicate with each other using a set of definitions and protocols) from carriers and MGA-MGUs.

Most of them focused on Small Commercial–for Business Owner Policies or Workers’ Compensation.

A few others, led by Relay, focus on Specialty Lines. And in particular, Cyber Insurance–one of the fastest-growing lines, with the highest API availability but also one of the hardest lines in which to secure insurance quotes for a client.

Needless to say, brokers prefer to log into an “Expedia of Commercial Insurance” to gather quotes, over logging into individual carrier portals. Just like passengers prefer to get flight quotes from Expedia over individual airline portals (in a short amount of time, Booking.com, Expedia and Trip. com captured close to 40% of the total global travel market). Keep in mind that this aggregation has benefitted carriers and consumers as well, by reducing the cost of distribution and thus the cost of flying, and growing the overall travel market.

nsights

The same is at play now in Commercial Insurance. And that is a great thing, because so many businesses still lack proper coverage.

Now, a clear winner has yet to emerge in commercial lines, with several platforms vying for this status.

What will it take?

First and foremost, the leading platform will need an unwavering focus and commitment to the vision of a true multi-carrier marketplace, which requires the financial stability to build it out, and a focus on providing the best placement technology possible to the market.

Second, it will need the backing and usage of leading brokerages, who all will benefit from a true MCP.

Third, it will need the commitment of at least a small initial group of forward-looking, broker-centric carriers, with the confidence that cooperation can lead to a better overall outcome for the market, which will also counter a race to the bottom.

That goal is simple:

Increasing business access to relevant specialty insurance coverage and risk prevention services

The real challenge in specialty insurance is low market penetration. Only 30 to 50% of businesses hold cyber insurance for instance, depending on geographies.

The industry must cooperate to accelerate the digitization of the quote and bind process.

To enable that cooperation, the leading platform must act in a neutral manner and enable brokers and carriers to do business fairly.

That is why Relay, under new ownership, is set-up to optimize for the benefit of the participants on the platform and provided rock-solid assurances to its neutrality and the confidentiality of data that it processes.

To learn more visit: https://www.relayplatform.com

All members are not the same, but they share one thing. An affinity toward their organization. The one they belong to. The group that shares their passion.

For more than 60 years, AGIA has served as the marketing and administration partner to some of the country’s largest and most iconic associations and organizations.

For more information contact: G. Scott Whitaker, Senior Vice President, Business Development SWhitaker@AGIA.com ▲ (C) 615-496-7803 ▲ www.AGIA.com

Product Provider SPOTLIGHT

About Us

For more than 90 years, the Farmers Insurance Group of Companies® has strived to provide quality insurance products at reasonable prices. Since our founding in 1928, Farmers® has grown and adapted to meet the changing needs of American consumers; but, one constant has remained: We have maintained an unwavering commitment to upholding our founding ideal to provide industry-leading products and first-rate services to the customers we’re privileged to serve. This approach has made Farmers one of the country’s largest insurers of automobiles, homes, and small businesses. Farmers and its affiliates also offer a wide range of other insurance and financial services products to consumers and businessowners across the country. Farmers Insurance Exchange®, the largest of the three primary insurers that make up Farmers Insurance®, is recognized as one of the largest U.S. companies on the 2022 Fortune 500® list.

Why we joined PIMA

Farmers is committed to innovation and is continuously looking for ways to serve the evolving needs of consumers. At Farmers, our employees help drive our strategy, endeavor to create world class customer

experiences, and find ways to bring new products and services to the insurance marketplace. We believe joining PIMA will help support our efforts to stay up-to-date with the latest trends in the constantly changing insurance industry. We’re also confident PIMA’s award program will help us stay on top of the ground-breaking steps being taken by our colleagues in the industry.

What are we looking for in our PIMA relationship?

It’s hard to narrow the list. We look forward to tapping into the wealth of resources, information, and connections provided by PIMA. We are also looking forward to connecting with other innovative brands and individuals with whom we can share valuable perspectives on the most important issues facing the industry. It is our belief

For contact information for Farmers Insurance and other PIMA members, login into the PIMA member directory and begin connecting with your peers today.

Product Provider SPOTLIGHT

About Us

As a U.S. company with roots going back to 1859, Equitable offers the strength and stability that comes with generations of experience as an insurance pioneer. To that we add the innovation and expertise of an employee benefits business that is purpose-built to meet the evolving needs of the modern workforce. Equitable Employee Benefits offers group Dental, Vision, Life & AD&D, LongTerm Disability and Short-Term Disability (including state PFML), Accident, Critical Illness and Hospital Indemnity insurance, as well as retirement solutions such as 401(k) and 403(b) to businesses, PEOs, Associations, Affinity Groups, Trusts, and other nontraditional group insurance entities. www.equitable.com/employeebenefits

Why we joined PIMA

PIMA members are industry leaders. Equitable Employee Benefits is laser focused on growth through innovation - we recognized that joining was integral to accelerating that growth. PIMA provides unparalleled access to knowledge, market insights and regulatory advice through their advisory forums, semi-annual conferences, interest groups, and online communities.

We believe employee benefits should be powerfully simple, and should complement a business, not disrupt it. Our goal is to deliver employee benefits while requiring

less of our partners. Being a member of an organization committed to staying on top of industry trends, listening to the marketplace, and bringing together top minds to help drive innovation and efficiency is a perfect fit for us. We seek to grow along with our fellow PIMA members.

What are we looking for in our PIMA relationship?

We look forward to getting the most out of our membership with PIMA by participating in and attending the conferences. The networking opportunities provided by PIMA membership is unprecedented in the industry. Being a part of the educational sessions and hearing from some of the great trendwatchers in our industry will certainly help us grow to become a leader and a preferred carrier.

Not only are we looking to benefit from attending the conferences, but we also look forward to being an active contributor to PIMA and our fellow members’ growth.

For contact information for Equitable and other PIMA members, login into the PIMA member directory and begin connecting with your peers today.

PIMA Hosts Successful SUMMER INSIGHTS CONFERENCE IN SAVANNAH, GA

Attendees were happy to be back in person for the second time this year for PIMA’s Summer Insights Conference June 21-24 in Savannah, GA. The Conference drew 150+ attendees and included networking, educational sessions, and member recognition—along with some great southern hospitality.

Speaker Highlights

Denise Garth, chief strategy officer for Majesco and Ann Dieleman, executive director for PIMA kicked off the conference with keynote session “Are You a Leader or a Follower” and addressed findings from the 2022 MajescoPIMA research, which focused on embedded insurance in the affinity industry across many channels. Denise pointed out the whole channel spectrum has grown significantly and continues to grow. “Ease of buying is key,” says Denise. “At the end of the day, across these channels, you will have to expect that customers will want to buy wherever they want to buy, when they want to buy, and how they want to buy.”

Christin Kuretich, strategy consultant and Jamie Shooks, principal and consulting actuary of Milliman addressed the product trends expected in both L&H and P&C in the session “Product Design & Development Trends.”

Christin and Jamie highlighted some L&H and P&C trends:

• Resulting from COVID-19 – Products including specific coverage for infectious disease as it relates to organ failure, and carriers are expanding mental health coverage

• Accident - Coverage expanding to include PTSD

• Fertility & Family Planning – Some carriers are classifying fertility issues as critical illness

• An emerging market of caregiving services.

• Pet Insurance continues to grow

• Auto Insurance – New products are looking to include usage-based and per-mileage-based rates

Sean Cox, president of First Consulting and PIMA Legislative & Regulatory Interest Group, Angela Villareal, compliance consultant of Securian Financial Group and

Dana McKinnon, vice president, relationship of The Hartford discussed the many state-specific requirements in the session “How to Navigate New Regulations.”

A panel of PIMA leaders shared their own company case studies addressing successful marketing strategies in the session, “Keeping Up with Market Changes: Effective Sales & Marketing Strategies.” Avery Smith, president of Kelsey National moderated a panel including Keith Kremers, business development director of CUNA, and vice president of customer engagement of Careington.

Closing Keynote Speaker Marcus Sheridan returned to the PIMA stage and addressed digital marketing in his session “The Trusted Brand: How Your Organization Can Become the Trusted Voice in a Noisy, Busy World.” According to Marcus, two important trends facing marketers include:

• 80% of buyers are through the buying journey before they contact a company.

• 33% of all buyers say they would prefer a seller-free experience; for millennials it’s 44%.

“We must become obsessive about customers’ concerns and fears,” says Marcus. “And must address them the best we can.”

Special Recognition

During the Conference closing ceremony, Insights Awards Committee Members Brett Conley and Erin Linney announced the 2022 Insights Awards competition results, highlighting award recipients from the six award categories, with Best of PIMA being awarded to TMAIT and Bodden Partners. (A complete list of award winners can be found on page 20.)

Charity Golf Event Results

PIMA hosted its first Summer Charity Golf event in Savannah. The following golf players received recognition.

Closest to Pin

• Brian Farmer

• Elizabeth Johnson

Longest Drive

• Brian Farmer

• Elizabeth Johnson Placements

1st - Colburn, Cohen, Ferry, and Hayden

2nd - Conley, Jennings, Leverone, and Sewall

3rd - Haun, Kass, Rudisill, and Toal

DISCOVER FARMERS® AFFINITY

Benefit programs that go the extra mile

Farmers offers your members a broad suite of products that can help make your group more attractive to the people who make it successful. Our customer-focused solutions include auto, home, motorcycle, and even boat insurance. Contact us today to find out about all that we have to offer.

To learn more, contact Lance Dordick, Head of Farmers Affinity at lance.dordick@farmersinsurance.com or call 908-963-7933.

How does your insurance program size up?

In the world of insurance, one size does not fit all. That’s why Alliant Insurance Services offers a comprehensive portfolio of insurance products and administrative services designed to fit your needs. It’s a tailored approach that will keep your bottom line looking sharp.

• Property and Casualty

• Employee Benefits Consulting

• Voluntary Benefits Administration

• COBRA Administration

• Workers’ Compensation

• Financial Products and Services

• Association/Union Benefit Administration

David Hudon 203.568.8229 dhudon@alliant.com

© 2020 Alliant Insurance Services, Inc. All rights reserved.

Alliant Employee Benefits is a division of Alliant Insurance Services, Inc. CA License No. 0C36861

Aon Affinity custom designs insurance programs for associations a variety of affinity groups.

Our proprietary data and analytic insight are powerful tools which keep our partners better informed and better advised.

We help more than 300 sponsor partners meet the unique needs of their members, customers, and affiliates, every day.

Aon Affinity employs a blend of digital and traditional direct marketing, e-commerce, and social media to attract, engage, and retain customers.

We’re in the business of better decisions. 1.877.256.6215 | www.aon.com/affinity