•
•
•
•
•
BUILDING THE COURSE AHEAD
THEY CAN BUILD A WINNING TOMORROW
Our Eagle One insurance policy is a hole-in-one when it comes to protecting your customers from hazards like weather, vandalism, mechanical breakdowns, and more. Our specialized coverages can help your customers avoid life’s sand traps. Trust in Tomorrow.® Talk to us today.
Lucy Pilko
Board of Directors
Executive Committee
Chairman of the Board - Allyson Padilla allyson@blanksinsurance.com
President - Patrick Taphorn, CIC, CSRM ptaphorn@unland.com
President-Elect - Thomas Evans, Jr. tom.evans@assuredpartners.com
Vice President - Chris Leming cleming@troxellins.com
Secretary/Treasurer - Cindy Jackman, CIC, CISR cjackman@arlingtonroe.com
IIABA National Director - George Daly george.daly@thehortongroup.com
Directors
Mohammed Ali - mali@aliminsurance.com
Charles Hruska, IV - chas@hruskains.com
David Jenk, Esq. - djenk@nwibrokers.com
Rebecca Kohn - rkohn@worthyinsurance.com
Lindsey Polzin - lpolzin@presidiogrp.com
Ray Roentz - ray.roentz@hwcrins.com
Noele Tatlock - ntatlock@unland.com
Luis Tayahua - lt@goldenowlinsurance.com
Sharon Waldvogel - sharon@infinitybrokersinc.com
Andrea Wallace - andrea@aadins.com
At-Large Directors
Amiri Curry - acurry@assuranceagency.com
Kevin Lesch - klesch09@gmail.com
Jeff McMillan - jeff@mcmillanins.com
James Sager - james@sagerins.com
Luke Sandrock, CIC - lsandrock@2cornerstone.com
Committee Chairs
Budget & Finance | Cindy Jackman, CIC, CISR cjackman@arlingtonroe.com
Education | Lisa Lukens salibainsurance@gmail.com
Farm Agents Council | Steve Foster s.foster@ciagonline.com
Government Relations | Dustin Peterson dustin@peterson.insurance
Planning & Coordination | Nick Gunn, CIC ngunn@envisionins.com
Technology | Brian Ogden brian@ogdeninsurance.com
Young Agents | Cody Imming cody@imminginsurance.com
Follow us on socials.
Big I Illinois Staff
Member Support
Director of Information and Technology
Director of Education and Agency Resources
Accounting & Admin Services
Director of Human Resources, Board Admin
Sr. Vice President/Chief Financial Officer
Chief Executive
Director
Director
Office
Rebecca Buchanan (217) 321-3010 - rbuchanan@ilbigi.org
Shannon Churchill (217) 321-3004 - schurchill@ilbigi.org
Brett Gerger, CIC (217) 321-3006 - bgerger@ilbigi.org
Tami Hubbell, CIC (217) 321-3016 - thubbell@ilbigi.org
Jennifer Jacobs, SHRM-CP (217) 321-3013 - jjacobs@ilbigi.org
Mark Kuchar (217) 321-3015 - mkuchar@ilbigi.org
Phil Lackman, IOM (217) 321-3005 - plackman@ilbigi.org
Lori Mahorney, CISR Elite (217) 415-7550 - lmahorney@ilbigi.org
Evan Manning (217) 321-3002 - emanning@ilbigi.org
Kristi Osmond, CISR Elite (217) 321-3007 - kosmond@ilbigi.org
Rachel Romines (217) 321-3024 - rromines@ilbigi.org
Tom Ross, CRIS, CPIA (217) 321-3003 - tross@ilbigi.org
Carol Wilson, CPIA (217) 321-3011 - cwilson@ilbigi.org
Education Types
There are three types of education, and all three provide different value. Before we discuss what they are and the value they each provide, let’s start with some questions. Do you have or want a mentor? Did you graduate from high school? Did you graduate from college? Did you obtain a graduate degree? Do you have a designation? Are you a procrastinator? Are you competitive? Are you inquisitive? Do you like long walks in the park? (Just seeing if you are paying attention) Do you have a drive to provide the best product and service to your clients? You need to be extremely honest with yourself in order to find your best fit(s). Your answers will help you determine what kind of education would work best for you.
The three types of education are compliance, observational, and developmental. All three provide different value for the learner and all are important in your educational journey. I will go in depth into all three and point out their importance. Learning starts from birth and continues until you are sick and tired of learning. You have heard the phrase you can’t teach an old dog new tricks. Thankfully, I am not done learning and therefore not an old dog. I think this age is different for everyone. The type of education you receive is how you process what is being taught. What do you mean, Brett? I am glad you asked. Let me explain the different types more in depth and you will see what I am talking about.
First, is compliance learning. Compliance learning is learning when you learn because you have to, and you will get the least amount of substance from this learning. For example, your license continuing education credits could be considered compliance. Education updates for extending any designation that you may hold. I could also contend that kindergarten through twelfth grade could be considered compliance. All of these are something that you have to do or there will be negative consequences. You have to comply. As with anything, all of these could be valuable learning opportunities but are predicated by the amount of effort that you put into them. The 24 hours of continuing education that you must take can be worth nothing, by taking all twenty-four hours in two-day period (21-hour book) where I am just meeting the requirement and learning nothing new. You could also take 24 hours that are meaningful and increase your overall knowledge of insurance. Education updates for designations can be meaningless if I take a course that I previously have taken which add nothing to my knowledge base. Updates can also be meaningful if you take a Ruble for example which is a deeper dive into a subject matter. Lastly, kindergarten through twelfth grade could be meaningless education if a student does not push themselves to their educational limits and just goes through the motions in order to graduate. On the other side of that coin this education can be quite meaningful if the learner pushes themselves to their limits.
Second, is observational learning. Observational learning is where we learn by watching. I know many individuals that learn this way because I was a wrestling coach for twentyfive + years. Some people you can tell them a concept or movement and they get it right away. But other people require you to demonstrate what you are trying to explain in order to fully get what you are trying to teach them. As babies we learn this way, so this is the OG way of learning. Observational learners probably need more examples in order to fully grasp what you are trying to teach them. You can see the light bulb click on when they truly get the concept that you are trying to convey, and it is usually after some sort of demonstration.
Third, is developmental learning. Developmental learning is the most robust of all learning and can be part of the other two. For learning to have some teeth, so to speak, it must be developmental. Developmental is a conscious choice to learn and better yourself on purpose. Compliance and observational can turn into developmental but require purposefulness and effort. For compliance, taking the Ruble in designation renewal. For observational, a concerted effort to ask for more examples or demonstrations of a topic so that you fully grasp the concept. Developmental, is where you purposefully try to expand your knowledge in an area or areas of expertise. Try to make every educational opportunity a developmental opportunity as you should always be looking to add value to your brand (You). When you take education that is compliance or observational in nature with no goal of development, you are wasting your time and most importantly your employers and clients’ time. You only add value to your employer and client(s) by what you know such as product knowledge, sales techniques, and market navigation. I have said this over and over but, you get out of education what you put into your pursuit of education. If you want to be a successful agent (my definition is serving your clients better than any other agent), you must constantly pursue developmental education and never become that old dog. Also, I know that taking a class and only half paying attention makes that education compliance and not developmental. For developmental education to work, you have to immerse yourself in the subject matter and/or class to get the most value. What kind of learner are you and are you done learning new tricks?
As always, this is just Brett’s 4 Sense (it dropped to 4 but eggs are still expensive ) and I hope it was helpful. You can contact me through my CONNECT and if it is urgent, do not hesitate to reach me through CONNECT. I may be pushing you to CONNECT. If you need any clarification or have any suggestions for future articles please email me at bgerger@ilbigi.org.
Letter to the Editor from /
Rate Regulation. Teachers’ 403(b). Health Mandates. Public Adjuster Reform. Adult Diapers. What do these things have in common? The legislators at the Capitol are the ones making the laws that impact them - often without the proper knowledge or experience to fully understand the issues at hand.
It was a great day to be the outcast at an insurance event. I’ve been with the Association for almost 25 years, the entire time in communications. Talk to me about magazines, email marketing, websites, and technology all day. It’s my “jam.”
What is NOT my jam is insurance. Even after 25 years of being “in” the industry, I’m your typical client. I don’t know what you are talking about a lot of the time. Just ask my agent! I always tell people to “dumb it down” for me. I need examples and scenarios.
Why am I admitting this? Because while sitting in the education session during Insurance Industry Legislative Day, I had an epiphany. Why it took me this long, I have no idea. Like I said, it’s not my jam.
But I realized that many of our Legislators proposing and voting on legislation are just as insurance “ignorant” as I am. At this point, I’m choosing to continue that ignorance… I have backup in my trusted independent insurance agent and my co-workers. But who are our legislators trusting?
One legislator in particular had the biggest impact on me finally “getting” it. He’s an insurance agent, so he’s obviously a great ally to us. He told this story about a bill that was being proposed, and he had a list of questions he asked the bill sponsors. Some were very simple questions – questions you’d assume would have been part of any research. But a lot of his questions could NOT be answered. Here’s where my thoughts started to wander, so I was in and out for a bit. I couldn’t move on from that. What do you mean this legislator sponsored a bill, and they don’t know anything about it? Surely, it’s a one-off kind of thing… just that one legislator… right? Nope. Apparently, it’s pretty common.
The speaker then told a story about a proposed bill that included language that was already law. They were trying to implement something that had already been enacted. Maybe a phone call to someone they trust would have brought that to their attention a little sooner...
THAT is where you all come in.
Your family and friends call you with insurance questions and when seeking advice. You are their “person.”
You need to be the “person” for our legislators! How great would it be if every Illinois Senator and Representative had an agent on speed dial? (Or your favorites, if you are younger than me). If something came across their desk, they’d have someone to call and say, “How do you see this going?”
Our legislators are not making it a priority to educate themselves on the issues they are sponsoring, supporting, and voting on. And even for those who try, there are simply too many issues to possibly be well-informed on every topic.
I’ll get to my point.
Now, more than ever is the time to reach out to your local legislators. YOU should be their trusted insurance professional. YOU should be the one they call on when they need to see a different view.
If you don’t take that advice from an insurance dummy like me, take that advice from Phil, Evan, and Brett. They witness these challenges firsthand and understand that not having a strong voice at the Capitol could be detrimental to the industry and your livelihood. Or, listen to what your fellow agents have to say below.
Also, this is just my opinion… my “2 Sense.”
There is no better way to understand our state government and how we as agents can have vital impact on legislation than to go to Springfield for Legislative Day. This year, there was so much at stake that I had to put work aside to attend and I am so glad I did and I encourage my fellow agents to mark their calendars for next year.
-
Rebecca Korach Woan, Chartwell Insurance, Chicago
My biggest takeaway from this week is that advocacy for our industry is probably one of the most important things we can do as independent agents. - Blake Knox, Thacker Insurance Services, Greenville
2025 Insurance Industry Legislative Day Wrap-Up
By Evan Manning
On Wednesday, March 19, the Big I Illinois wrapped our Insurance Industry Legislative Day. Insurance Industry Legislative Day is our annual legislative lobby day held in conjunction with the Illinois Insurance Association, Illinois Life and Health Insurance Council, National Association of Insurance and Financial Advisors of Illinois, National Association of Benefits and Insurance Professionals, the Illinois Association of Mutual Insurance Companies, and the Illinois Life and Health Guaranty Association. The program was held in-person at the Inn at 835 in Springfield with a Legislator Reception that followed at Trish and Mary’s. We had 135 agents, brokers, and company representatives in attendance for the education seminar and several legislators attended our Legislator Reception.
Rep. Jeff Keicher led off our education seminar. Rep. Keicher is the Minority Spokesperson in the House Insurance Committee and did a Q&A with the panel and audience members to discuss the current political climate they face and how they still manage to influence legislation and the insurance committee. He spoke about the rising costs of insurance and the effect the government has had and will continue to have if we continue mandating coverage as well as interfering in a company’s ability to underwrite accurately. Rep. Keicher is a registered and active insurance agent, who brings his expertise and knowledge of the industry to not only educate members on their committee but influence legislation so that there are not any unintended consequences of the legislation.
Rep. Keicher was awarded the 2025 Insurance Industry Legislator of the Year. Anyone who follows insurance legislation through the General Assembly can attest that Rep. Keicher is a deserving recipient of the award. He is extremely well respected in the House Insurance Committee and the entire General Assembly. Thank you Rep. Keicher for everything you do for our industry!
Senator Julie Morrison, Chairwoman of the Senate Insurance Committee, spoke to the group briefly. Sen. Morrison spoke to the group about having to learn about the insurance industry as she hadn’t previously served in the Senate Insurance Committee. Sen. Morrison spoke on how she is trying to manage the committee compared to previous leadership of the Senate Insurance Committee and leaning on the lobbyists, staff, and members to help educate her on the important insurance issues going through the committee.
Morgan Winters, Director of the State Based Marketplace at the Illinois Department of Insurance, presented to the attendees. Director Winters provided updates on the implementation of the State Based Marketplace, including the launch of the Broker Webinar series. Director Winters answered questions from the audience and shared insight into some of the upcoming benchmarks of the development of the exchange.
After the speaker presentations, Kevin Martin (IIA), Laura Minzer (ILHIC), Kathryn Morthland (ILHIC), Evan Manning (Big I Illinois), and Brett Gerger (Big I Illinois) lead a panel discussion on the top legislative issues going through the Illinois General Assembly.
Kevin Martin kicked off the panel discussion on our opposition to Rate Regulation in Auto Insurance (SB268, HB1252/SB124, & HB3482/SB2412). SB 268 is a bill that is being pushed by the Department of Insurance to move Illinois to a flex rating/ prior approval model for rate filing. Kevin discussed the challenges we face today in staving this legislation off this year especially with the Department of Insurance actively pushing this legislation. Kevin also spoke on HB 66 which is a bill to increase minimum financial responsibility limits. He spoke about while nearly everyone can agree the limits are low in correlation to the cost of repair but the downside of increasing the limits could mean an increase in the uninsured population.
Laura Minzer and Kathryn Morthland discussed several key issues pertaining to the life and health insurance industry. They both spoke about Governor Pritzker’s health insurance initiatives in PBM reform and the expansion of the healthcare protection act. Kate spoke on the rising costs of health insurance to the State being driven by mandates. Kate also spoke on the potential for defrayal in Illinois. Meaning, the state is required to pay for the cost to cover any benefits beyond an EHB. State Defrayal was written into the ACA to prevent federal dollars from going to additional state mandated benefits. Until recently, states had full control in determining whether a benefit mandate triggered state defrayal. With many states choosing not to defray the cost of care, CMS issued a requirement that states review benefit mandates and specify whether or not the mandate is subject to defrayal. Laura Minzer spoke on several key life insurance bills that both her and I have been involved with over the last two years.
I was the last presenter of the event. I spoke on HB 3771 a bill to sever the direct and indirect financial relationship between a public adjuster and a contractor. We previously worked on and passed public adjuster reform. NCOIL recently adopted public adjuster reform model legislation and has been gaining momentum nationally. Although this bill did not make it out of the committee deadline week it is promising to move the discussion along for future action. I also spoke on two bills that were passed out of the Senate Pensions Committee that morning. SB 2016 and SB 1692 are bills dealing with supplemental retirement options. SB 2016 is a bill that would limit school districts to select one or more vendors for teachers’ 403(b) plans that meet certain criteria. The bill would essentially eliminate or severely limit teachers’ ability to work with financial planners. The bill limits choice and removes many insurance products that would otherwise be available to them.
We hope everyone who participated in Insurance Industry Legislative Day enjoyed the program and walked away with a better understanding of some of the most impactful legislation in the Illinois General Assembly. We look forward to the event next year and thank you to all of the members, legislators, and speakers who attended this great event.
Evan Manning is the Director of Government Relations for Big I Illinois and can be reached at emanning@ilbigi.org.
Rep. Jeff Keicher (R-70) - Legislator of the Year
Senator Julie Morrison (D-35)
Representative Dan Ugaste (R-65), center
Representative Jennifer Sanalitro (R-48), center
Representative Paul Jacobs (R-118), second from right, Senator Seth Lewis (R-24), right
Representative Jason Plummer (R-55), center
Does using service resources like AI, Virtual Assistants (VAs), or carrier service center increase or reduce the agency’s E&O exposure? What are some of the E&O considerations that agents should keep in mind when utilizing these solutions? Risk management considerations can assist agencies in reducing E&O exposures from carrier service center relationships.
• Understand the options: This may be stating the obvious, but the first step in considering these alternatives is to understand the services that will be provided and the specific interaction they will have with customers. Some solutions may offer to service all business, while others may limit it to personal or commercial lines, accounts of a certain size, or specific tasks. Another consideration is the quality of the support, insurance service skills, insurance knowledge, and ease of use/adoption for any tech.
• Review the service agreement: Take the time to reach and understand the service agreement. Pay particular attention to the indemnity provisions. The agency should not be held responsible for errors made by the service provider. Don’t be afraid to negotiate the indemnity provisions of the contract to protect the agency. It doesn’t hurt to ask.
• Transition of accounts: Be cautious during the transition of customers that will be served by the providers. Agency procedures should be modified to reflect changes in the role of the agency staff and this should be clearly communicated to all employees. In addition, customers need to be made aware of changes that directly impact their needs, including who to contact in specific situations such as claims reporting, coverage changes and payment of premium.
One important consideration is who will be answering coverage questions from the customer. If it is the service provider (which we do not necessarily recommend), is it property licensed, and is it documenting the coverage discussions with the customer in the event that an E&O claim is made for misrepresenting coverage?
Alternative Account Service Providers and Your Agency’s E&O
By Dave Hulcher
• Out of sight, out of mind: The insurance needs of customers change over time and agents can’t fall into the habit of renewing accounts as is. How will the agency coordinate with the service provider to offer additional coverage options or increased limits? AI, VAs, and service centers can relieve the agency of routine servicing contracts so that they agency has time to proactively reach out to the customer to learn of any changes in his situation and values, and needs for changed coverages or limits.
• Translation of basic E&O risk management: With your agency’s normal workflow and procedures, you use basic E&O risk management processes, such as E&O coverage checklists that the customer signs, proposals that contain disclaimers and thoroughly documenting all conversations with customers. How does this translate to the service provider? Do they include disclaimers on their customer communications? Discuss whether they would be willing to incorporate some of these risk management methods into their operations, or what they already have in place.
Balancing the Risks and Rewards
Agencies need to analyze carefully the benefits and costs of doing business with service providers. It starts with understanding what they offer and how the workflow will affect the agency’s operation and the customer’s experience. Some AI, VAs, and carrier services centers may be better than others, and that will specifically influence whether working with them may increase E&O exposure.
At the end of the day, thoughtful consideration of integrating alternative service providers into agency operations will help your agency reduce its E&O exposure.
Dave Hulcher is CEO of the Kansas Association of Insurance Agency (KAIA).
How to Avoid Client Claims Turning into E&O Claims
By Mallory Cornell
Did you know that how you handle client claims can increase your E&O exposure? Like many internal workflows of the agency, not having clear guidelines and procedures for employees can lead to poor client claim experiences as well as an E&O situation. A few key reminders should be shared among ALL staff, regardless of role and experience.
It is common for independent agencies to want to be involved in the claim experience for customers, especially within personal lines business. The claim experience can be emotional for clients, so it does make sense that an agency would want that relationship touchpoint and offer their assistance. The danger is when there is insufficient training to help agency personnel remain helpful and empathetic without confirming or denying coverage in the policy.
Fortunately, strong claim-handling practices start with a few quick and easy reminders.
1. Never confirm or deny coverage when speaking with the customer about a claim. This is the carrier’s decision and responsibility, and the customer may be withholding additional information important to the claim outcome.
2. Always report the claim promptly to the carrier. A claim reported to the agency is considered a claim reported to the carrier, so it is absolutely the responsibility of an agency to make the report as soon as possible.
3. Your client’s information is confidential and should only be shared with the carrier and no other third party without written permission.
4. Document! Document! Document! Keep strong written documentation of client conversations and carrier conversations. Always confirm phone calls in writing and utilize activities and reminders to follow up on open discussions.
5. Have a standard process. This could include utilizing dedicated staff to handle claim calls, setting reminders to follow up on a claim call, or simply assisting with the claim reporting process and then informing the customer they can reach out with any questions or concerns. Just. Be. Consistent.
6. Be proactive. Before a client ever has a claim, have a standard document or process to help the client understand the claim process from the inception of their policy. Set expectations and a clear understanding of the client-agency-carrier relationship.
All agency personnel should feel comfortable handling claim calls and can maintain a strong relationship with the client during the process. Remember, not everyone is fortunate enough to work in the insurance industry and clients may have unrealistic expectations of how the claim will be handled. Be honest and responsive and always have a plan in place. If a claim may be denied or if the agency made an error in issuing the policy, do not try to make it right. Generally speaking, an E&O claim arises when a customer has an uncovered loss, so it is imperative that the claim handling process is clear and consistent.
Mallory Cornell is the Vice President of the Independent Insurance Agents of Wisconsin (IIAW) and is Swiss Re Approved Auditor. She can be reached at mallory@iiaw.com.
Our exclusive risk management resources help your agency avoid making common preventable mistakes.
Our superior coverage through Swiss Re Corporate Solutions and our experienced claims teams are in your corner in the event of a claim.
When you know you have the right agency E&O protection, you can focus on growing your most important asset – your business.
Navigating Tomorrow
Preparing For the Future Risks on Our Radar
By Lucy Pilko
No one likes to be caught off guard, especially those of us in the risk management industry. Effective risk management requires identifying, assessing, and mitigating potential risks that could impact our organizations before they actually do. In today’s fast-changing environment, that means keeping an eye on emerging risks is more important than ever and that is the motivation driving our annual survey, the AXA Future Risks Report, now in its 11th year.
Each year, the AXA Future Risk report examines emerging risks and trends that could impact organizations and society as a whole. The report is based on responses from over 23,000 individuals across Europe, America, Africa, and Asia-Pacific & Middle East. We asked 3,000 risk professional experts from 50 countries and a representative sample of 20,000 individuals from 15 countries to rank their top 10 emerging risks.
The survey’s 2024 findings are quite consistent with previous years. Climate change, geopolitical instability, and cyber security risks topped the list globally. And unsurprisingly, but a change, risks associated with AI and Big Data have climbed rapidly up on our list in the last few years.
Also interesting is how the perception of emerging risks differs across the globe and how our perceptions change, or don’t change, over time. In the Americas, for instance, while climate change was still on top, cyber security risk was a bigger concern compared to our global list, followed by AI and Big Data. Geopolitical instability slipped to fourth amongst North American respondents.
How risks are perceived influences which risks are prioritized. Risk perceptions shape our decision-making processes and guide risk management investments and strategies. From my perspective leading an insurance operation in the Americas, risk perceptions in my region also drives our direction in delivering products and services to help our clients address these top concerns.
We’re consistent on climate change
In 2024, climate change was the top issue across the board, among risk professionals and the general public, no matter where they live. From an Americas perspective, it’s clear why. In 2024, more than 61,000 wildfires burned 8.8 million acres according to the National Interagency Fire Center (NIFC).
And 2025 kicked off with devastating fires in the greater Los Angeles (that are still persisting as I write this column). Total damage and economic loss are expected to far exceed previous records.
Let’s not forget we also saw another record-breaking Atlantic hurricane season. This was the ninth consecutive season with above-average hurricane activity. A big takeaway from 2024 season was how quickly a storm’s impact could extend beyond its size or direct path, impacting coastal areas but also inland communities, like those in Western North Carolina. Another interesting observation from this year’s hurricane season is that we can have two similar hurricanes, like Milton and Helene (at least from an intensity and landfall location perspective) but actually be looking at two different perils. While Helene was a major flood event, Milton’s damage was from wind.
As a result of climate change risks, more frequent and severe hurricanes, wildfire, heatwaves, drought conditions, coastal and river flooding are also what we’ll see in the future. We’ll need to be prepared for them.
Fortunately, innovative technologies and tools, including early warning systems, data analytics and advance predictive modeling, are available to aid in monitoring, predicting, and mitigating the impacts of extreme weather events. Knowing the urgency that risk professionals and the public places on climate risks, insurers are developing new insurance products that specifically address climate risks, such as parametric insurance, and are providing more services to help businesses boost their resiliency by retrofitting buildings to withstand extreme weather, creating more flood defenses, or implementing fire-resistant landscaping.
Cyber risks keep making headlines
While climate change concerns have been consistent globally, cyber risk has bounced around the top three positions of our list. As mentioned, in the Americas, it ranked second, pushing geopolitical risk to number four.
We are increasingly dependent on digital services for banking, healthcare, shopping, and even social interactions. When something disrupts our digital world, we feel it. Consider Change Healthcare’s cyberattack early in 2024. It impacted 100 million Americans.
Cyber insurers, like AXA XL, continue to emphasize the importance of robust cybersecurity measures to mitigate risks. We’re seeing how clients who invest in strengthening cybersecurity protocols not only reduce the likelihood of a cyber event but also experience faster recovery times after an incident. Through partnerships with cybersecurity experts, we’re helping clients keep pace with today’s cyber threats and whatever the future may bring.
Getting our heads around AI risks quickly
Another big difference on our Americas Future Risk list was Artificial Intelligence and Big Data’s first-time position as a top-three risk. Globally, AI and Big Data took the fourth spot in 2024 and 2023, after not even appearing on our Top 10 list in 2022. Since 2022, we’ve seen the introduction and adoption of (Gen)AI tools like Microsoft Pilot, ChatGPT and a significant level of experimentation across North American clients in identifying and deploying use cases in their businesses. And the conversation around data usage and responsible AI is happening in the board room and on the front-page of the news.
AI is transforming industries and creating efficiencies. It comes with a unique set of risks and uncertainties. Our report specifically called out AI-generated misinformation and disinformation as a rising concern.
For insurers, it is important to gain a deeper understanding of how AI impacts our clients. It’s still so new. The potential risks are diverse, and still not fully understood. But through data collection and scenario development, we’ll look to understand the transformative effects of AI implementation and how insurance or other risk management strategies can help mitigate these risks. Given the ambiguity and rapid evolution of the technology and legal landscape, AI-related requires a new level of partnership between insureds, brokers, and carriers, like AXA XL. We’re certainly here for it.
Partnering for preparedness
Another valuable insight from our survey focuses on the role insurers can play in helping clients address these emerging risks. Our survey asked respondents about their main expectations of insurers in relation to future risks. The top three answers were risk management and transfer for innovative solutions (74%), knowledge sharing and education on risks (71%) and support in prevention and resilience building (63%).
It’s encouraging that clients acknowledge the vital role insurers play. However, we hope to see their expectations climb in insurers’ ability to assist in prevention and resilience building as we can offer substantial support.
Through in-house risk consulting services and partnership with external resources, we’re assisting organizations strengthen their prevention and mitigation programs. Through these collaborations, clients can implement proactive measures – from safety audits to employee training to cybersecurity tabletop drills – all which can give a big lift to preparedness efforts.
Insurers possess extensive data and insights about emerging risks across industries. Businesses can gain valuable information from their insurers about trends, potential threats, and best risk management practices, including tailored risk assessments and analytics to understand their unique risk profiles. Ongoing communication and feedback between businesses and their insurers encourages continuous improvement. Businesses can share their experiences and observations regarding emerging risks, helping insurers refine their offerings and develop new solutions. It’s a win-win for all.
It may be hard to consider the risks that we discussed here as “future risks” when we are dealing with them here and now. However, as climate change accelerates and our reliance on technology deepens, these risks will evolve and pose ongoing challenges in the years to come. Strong partnership will empower us all to be better prepared for whatever lies ahead.
Lucy Pilko is the Chief Executive Officer, Americas, for AXA XL.
...these risks will evolve and pose ongoing challenges in the years to come. Strong partnership will empower us all to be better prepared for whatever lies ahead.
When Main Street is the main focus.
Running a successful small business is hard work, but finding the right insurance program for your client is easy with West Bend.
Our business insurance program covers liabilities and expenses specifically designed for small business operations.
• Great pricing and exceptional coverage
• Experienced claim representatives
• Convenient options for reporting losses – available 24/7
Learn more about the variety of business line coverages available through West Bend by visiting thesilverlining.com.
The worst brings out our best.®
How to Conduct an
E&O Self Audit
By Bill Schoeffler and Catherine Oak
Mistakes happen. After all, we are human. That is why insurance agencies have agency errors and omissions (E&O) coverage.
Even with the support of E&O coverage, an E&O claim can take its toll on the people involved and the agency. Dealing with an E&O claim will take weeks to collect the information, meetings with lawyers, days of depositions, weeks of court time and perhaps a year or two of calendar time.
The financial burden can also be a huge blow to the health of the agency. Individuals involved will face tremendous stress, which can impact the morale of the agency.
That is why it is imperative for agencies to perform their best to avoid the devastation of an E&O claim. But how does an agency know if it is performing well? The best approach is to hire an outside consultant to conduct an E&O audit of the agency. Some E&O carriers will provide a 5 percent to 10 percent premium discount for a few years to agencies that perform such an audit.
A consultant performing an effective audit will dive deep into the current agency procedures, culture, work habits and results to determine the relative E&O risk exposure for the agency. This audit could include benchmarking and recommendations for improvement. A good audit will not only be helpful to determine E&O risk exposure, but also provide insight to agency operations and industry standards so the agency can become a better business.
Perform a Self-Audit
The next best approach is to conduct a self-audit. This should be done annually and can be a supplement to hiring an outside consultant. The agency would follow some of the major steps an outside auditor would perform. The downside with a self-audit is it loses an outside perspective as well as the tendency to overlook some bad habits because “that is the way we always do it here.”
The first step to a self-audit is to discuss the plan with the employees. They must be fully engaged and understand the importance of transparency. Let them know the purpose is to discover the good, the bad and the ugly. It is both an E&O audit, as well as a review to improve agency performance.
Next, have all of the employees fill out an audit questionnaire, which asks questions to understand the employees’ perception of workflow, procedures, documentation and communication. The results will show the agency culture toward risk avoidance, as well as what the agency does well and what it does poorly.
Next, perform a random audit on client files, proposals and company correspondence. There are a few ways to do this part. One can follow the documentation trail from the initial risk assessment phase, through the quoting and proposal phase into the binding of coverage, client service, policy changes and then renewal.
Another approach is to just audit random files for each of the phases of the client life cycle.
Audit Questions
The audit is to find that proper documentation occurred, communications were recorded and the procedure is consistent within the agency as well as industry standards. Questions during the audit should include:
• Did the producer use a checklist with the client, which includes coverage offered and what was declined?
• Did the client sign the checklist?
• Does it appear the producer offered the correct coverage based on the client’s needs? Who completed the application and was it filled out correctly?
• Did the client sign the application?
• What markets were approached for insurance coverage and was that per agency procedures?
• When was the policy issued and when was it sent to the client?
• Were all communications with the client recorded? Were the proper codes used in the agency management system to record the communications.
• How was the renewal process handled? Was the client consulted or was it renewed without discussing any changes?
• When a claim is made, how did the agency handle it? Who contacted the insurance company? Was a suspense created for follow up? What were the communications?
• Are clients that get notices of cancellation from direct bill carriers also notified by the agency? If so, is that everyone, all the time, or just select customers?
• How are policy changes recorded?Are they confirmed in writing from the customer?
• Does the agency make changes to certificates to meet the client’s request? (Don’t do that)
• Are policies always reviewed and verified against the application? Is a checklist used?
• Is the agency in compliance with regulatory bodies and insurance company expectations?
Once an audit is complete, everyone must review the results and discuss how to improve workflow and steps to improve risk avoidance. The agency procedures should then be revised to incorporate the changes.
Performing an in-house self-audit is helpful to agency owners and managers to get a better feel for what is happening in the trenches. Backlogs, time constraints and organizational structure are often at the root cause of E&O claims. There will be problems, so approach them as a learning experience. This is an exercise to improve the agency.
Summary
Be open to new ideas. Use outside resources to improve operations and risk avoidance. For example, IRMI has software to help evaluate a client’s gaps as well as checklists for producers. Contact Oak & Associates for a self-audit checklist for a nominal fee.
This article has been reprinted with permission from Wells Media Group Inc., publisher of Insurance Journal. Catherine Oak is the founder of Oak & Associates and can be reached at catoak@gmail.com. Bill Schoeffler is an associate of the firm.
Something’s “Phishy”!
Part 3:We’re Going to Need a Bigger Boat
By Ryan Smith
If I wanted to hack your business, I’d start with phishing your employees. The odds would be in my favor because it is one of the easiest and most effective ways to attack someone. And I only need to be right once – while your users can’t afford a single mistake.
I don’t plan to attack you, and I hope you never fall victim to an attack. So, in that spirit, let’s help you level up your defenses in this short series and teach you what you didn’t know you needed to know about phishing emails and similar types of cyber-attacks that are designed to trick your users.
Our first two parts dug into the basics of what a phishing email is, how prevalent they are today, and how they work.
Now, it’s time to talk about fighting back and protecting our businesses.
We won’t get deeply technical, but across these three articles, we will dive deep into why it’s still a major concern today, how phishing attacks work, and how to protect yourself.
Can We Keep Malicious Emails Out?
Not always…
Our choices around cyber risk tolerance means there is a balance we need to strike between being too efficient and opening up areas of risk or locking things down so much that we can’t operate our business effectively.
Email filters and other tools can scan messages and keep them being delivered from users, but you can only do so much. The tighter the security around email, the more likely IT will be overwhelmed with false positives that send safe emails into a quarantine that have to be manually released.
‘Known malicious’ messages or links should absolutely be removed from inboxes. However, when there is not great confidence by a scan that an email is malicious, it is best to bring awareness to the user (often through a banner) that they need to proceed with caution.
Another problem that starts to surface is ‘banner fatigue’, when users start ignoring such messages because they constantly see them.
If a majority of your email activity is external – then you’re going to see messages constantly warning you of “External Senders”. So smart banners are needed to give in-themoment education to users about what is triggering the risk, more than just someone being an external sender.
An email filter may flag things like the language commonly used in social engineering, un-recognized senders, suspicious links, files, and more. AI really helps these tools perform better but it’s not perfect and some things, like new techniques, can slip through.
Even still, some messages may not get ‘bannered’. One way this can happen is when someone uses a trusted person’s email account and sends a link that is unrecognized or a new malicious site that these tools are unaware of – so they don’t know to block it.
To this point, there is no silver bullet, and your email security tools are needed to be just one of the many layers you consider in your security strategy – in addition to training users to be more aware and diligent.
How Can We Be More Effective in Protecting Ourselves?
Set Your Email Security Configurations
Email security configurations can make it harder for your email account to be impersonated. These are used to establish trust with your email system and others you communicate with, so this can also improve email deliverability.
The 3 configurations to implement are:
• SPF (Sender Policy Framework) – which controls who can send messages from your email domain
• DKIM (DomainKeys Identified Mail) – provides trust to recipients that your email actually came from your domain
• DMARC (Domain-based Message Authentication, Reporting, and Conformance) – Combines the other configurations as an extra layer in case one of the above fails
These configurations are public facing (that’s how the recipient’s email can tell if it should trust you). You can go to a site like MXToolbox.com to run searches for these different settings to be in place. I would only need to know your email address to search for the status of these, and scripts can be created to do this quickly across a large number of email addresses in a list.
Because it is publicly available information, this also means that the threat actors can easily tell if you’re missing any of these security configurations. This may tell them it’s possible to impersonate you, but a bigger concern is that they may assume that you have other missing security practices.
In most cases, they’d automate all of this, it’s not time consuming to identify you as low-hanging fruit!
To set these up, it’s not too complicated but will require help from the IT Admin and your Domain Management System (where you set up your website and DNS settings). And, if you’re not very technical, you’ll want help to make sure it’s all done correctly, or you could create an issue that keeps others from getting your emails.
Review Email Security Settings
Inside of your email system, as an Admin, you will have different permissions and policies you can turn on to help protect users. Where the above configurations are public facing, these are settings that determine how emails are handled internally.
If you’re a Microsoft email user, your Microsoft Secure Score recommendations will guide you through many of the settings you want to review.
Regardless of your email system, here are a few things you may want to look for:
• Safe link rewriting
• Improve automated message handling practices, especially around junk, spam and malicious messages
• Set controls for how to handle messages that appear to be spoofed or impersonated
• Control the sensitivity around phishing detection and other security practices
There’s a lot to look for here and it may depend on what other compensating controls are in place with other email security tools you use.
Bonus: Turn off the ability to create rules that forward emails outside of your organization. In a Business Email Compromise (BEC), attackers may often create somewhat of a backdoor access to seeing and intercepting messages after you’ve booted them out by having emails just sent over to them by a forwarding rule.
Email Filters and Security Tools
To really take it further, more advanced tools exist that can act as either a gateway that messages must pass through, or some live in your inbox and use AI and other tools to seek out suspicious messages.
As noted before, too tight of security here can make it difficult on IT – we don’t want to always have to release emails that were incorrectly identified as malicious.
While there are many options here, these are a few of the key capabilities to look for:
• Scans emails prior to releasing them to users
• Quarantines known malicious emails
• Banners suspicious messages (the smarter the better to fight user fatigue and remind users of training)
• Identifies a senders’ history with you as a form of established trust
• Identifies possible spoofed emails/names like others you have corresponded with
• Confirms the sending email system is secured and trustworthy
• Sandboxes suspicious links or files to test them safely
• Allows users to report phish (so other emails can be removed for other users)
• Gives the users in-the-moment email analysis tools to determine what they should trust
Train Your Employees and Test Their Knowledge
In the end, emails will end up in front of your users. Nothing noted above is going to be a silver bullet, so we need to make sure our frontline is ready.
And keep in mind that the techniques and strategies used in social engineering and phishing attacks aren’t limited to email. We need users to know what threats exist on the phone, by
text, scanning QR codes, on social media, instant messaging apps, and other areas where a bad actor may try to trick someone.
Employee Training that includes Simulated Phishing (in addition to simulating voice calls and other forms of common attacks on users) can be one of the most effective ways to reduce the potential cost of a data breach.
Take a look at where Training sits according to IBM’s 2024 Cost of a Data Breach Report:
Factors that reduced the average breach cost
Employee Training
AI, machine learning driven insights
Security information and event management (SIEM)
Incident response (IR) planning
Encryption
Threat intelligence
DevSecOps approach
IR team
Indentify and access management (IAM)
Proactive threat hunting
Security orchestration, automation and response (SOAR)
Insurance protection
Offensive security testing
ASM
Endpoint detection and response tools
Gen AI security tool
Data security and protection
Board-level oversight
CISO appointed Managed security service provider (MSSP)
As you can imagine, not all training is equal.
To get the most out of training, a robust training course once per year is great, but pepper in shorter training lessons throughout the year.
Done effectively, you can help users keep awareness top of mind (especially knowing that Social Engineering and Phishing is more likely to be a problem during busier and more distracted times).
Design your program to fit your industry and specific business practices by talking about the types of risks you have, how an attack may occur, and what’s common for businesses like yours.
And keep it timely! When you have shorter and more frequent training engagements, you can talk about current techniques and seasonal risks.
The ideal approach would include a short training lesson and phishing simulations done on a monthly basis.
Bonus: Focus your training on building a strong culture around security. Consider how you use positive and negative enforcement. Build this from the top down and ensure to lead by example. Get your users bought into the security practices by helping them understand they have role to play and what it would mean for them to have an attack.
Culture is another topic that we’ll have to dig into deeper at another time, but if you want to make an impact on your organization’s culture around security, you’ll want to learn more about some of the things RLS Consulting is doing, see below!
Want Help?
RLS Consulting can help you here in several ways. Reach out if you’d like to learn more about email security configurations, email security tools, or ways to effectively train your staff on what to watch for.
We just launched new services to conduct phishing simulations and training, so now is a great time to explore ways to protect one of your highest areas of risk!
Ryan Smith is the President and Principal Consultant at RLS Consulting. Find out more at rlsconsulting.co.
Phishing Simulation & Training Program
Big I Illinois has partnered with RLS Consulting to help protect your agency against email phishing scams.
Don’t get “Reeled” in by phishing scams. With a set it & forget approach, you can test your staff and prepare your agency against the bad actors. Learn in real-time through simulated phishing emails how to spot them and train your staff so they are on their guard.
This program works in conjunction with other phishing email training programs you may use. Or if you don’t have one this is a great place to start. Train your employees, test their knowledge and the end result will keep your employees, your agency and your clients safer.
Find out more at
Thank you to our Associate
Members.
These companies have shown their dedication to the support independent insurance agents in Illinois.
Diamond Level
Platinum Level
Progressive
Surplus Line Association of Illinois
Gold Level
Arlington/Roe
Blue Cross/Blue Shield of IL
CRC Group
Pekin Insurance
Silver Level
IMT Insurance
Keystone Insurance Group, Inc.
MEM
Bronze Level
A. J. Wayne & Associates
AAA, The Auto Club Group
AMERISAFE
AmTrust Insurance
Apollo Brokers dba Limit
Auto-Owners Insurance Co.
Berkley Small Business Solutions
Berkshire Hathaway GUARD Insurance Companies
Bliss McKnight
Boundless Rider
BriteCo Jewelry & Watch Insurance
Central Illinois Mutual Insurance Company
Chubb
Columbia Insurance
Cowbell Cyber
Donald Gaddis Company, Inc.
Donegal Insurance Group
EMC Insurance
Encova Insurance
Erie Insurance Group
Forreston Mutual Insurance Company
Graham-Rogers
Grinnell Mutual Reinsurance Company
IA Valuations
Illinois Mine Subsidence Ins Fund
Illinois Public Risk Fund
Imperial PFS
Independent Mutual Fire Insurance Company
Indiana Farmers Insurance
Insurance Program Managers Group (IPMG)
J M Wilson
Liberty Mutual/Safeco Insurance
Madison Mutual Insurance Company
Main Street America Insurance
Mercury Insurance Group
Midwest Insurance Company
Nationwide
Paychex HR and Payroll Solutions
Rockford Mutual Ins. Co.
SECURA Insurance
ServiceMaster DSI
Society Insurance
SPRISKA - Specialty Risk of America
Steadily
Summit Insurance
Travelers
W. A. Schickedanz Agency, Inc./Interstate Risk Placement
West Bend Insurance Company
Western National Insurance
Westfield
XPT Specialty
SECURA Insurance Celebrates 125th Anniversary SECURA Insurance celebrated its 125th anniversary on March 1, 2025.
SECURA was founded in 1900 by Julius Bubolz, a local farmer, after a tornado tore through New Richmond, Wisconsin causing incredible property damage, killing more than 100 people and injuring 500 others. Bubolz knew something needed to be done to ease the inevitable financial burden caused by future storms. Together with his neighbors, he founded The Farmers Home Mutual Hail, Tornado, and Cyclone Insurance Company of Seymour, Wisconsin (now SECURA Insurance).
Company accomplishments from the past 125 years include:
• Grew from a farm insurance company to also offer insurance solutions for businesses, agribusinesses, nonprofits, and special events
• Expanded to offer insurance products in 13 states
• Grew direct written premium to $999 million
• Achieved recognition as a Great Place to Work for nine consecutive years (2016-present)
• Increased the number of employees to approximately 1,000
“We are proud to be a mutual insurance company that has served our associates, agent partners, policyholders, and communities for the past 125 years,” said Garth Wicinsky, SECURA Insurance President & CEO. “We have accomplished many milestones throughout our history and look forward to growing over the next 125 years.”
The company’s longevity speaks to the strength of its workplace culture, relationships with independent agents, and trust from policyholders. While much has changed since 1900, SECURA has remained a mutual insurance company focused on making insurance genuine.
From everyone at Big I Illinois - Congratulations to the team at Secura Insurance!
We are well on our way to building a leading small commercial insurance solution to
serve our agents and brokers and small business customers.
Much is in store for 2025!
Compass Insurance Named Indiana Farmers Insurance Agency of the Year
Congratulations to Compass Insurance, Agency of the Year for Indiana Farmers Insurance. The award was announced on March 5, 2025, during the company’s annual celebration honoring the achievements of independent agents.
Scott Miller, vice president of sales for Indiana Farmers Insurance, stated, “Compass Insurance enjoyed an exceptional year of results with Indiana Farmers Insurance during 2024. Compass delivered impressive premium and policy count growth results with a superior loss ratio. Customer retention was achieved at a level that any agency would seek to emulate. We are proud to recognize Compass Insurance as our first Agency of the Year from the great state of Illinois.”
Compass Insurance has 11 locations throughout central Illinois and has been protecting families, farmers, and businesses for over 70 years.
Dayton Kilgus, Owner/Agent of Compass Insurance, stated, “We are humbled and honored by this recognition from Indiana Farmers, a critical partner in our agency’s continued profitable growth. Their common-sense approach to underwriting and strong emphasis on relationships have been instrumental in our mutual success, and we look forward to an exciting future together!”
Congratulations to the team at Compass Insurance!
ILLINOIS
Wojcik Presents at National NABIP Event
Mike Wojcik of The Horton Group, who also serves on IIABA’s Health Care Subcommittee as Chair, presented at the NABIP Capitol Conference in late February. He spoke during two sessions: Word on the Street, State Public Opinion, and Consumer Experience Across the Industry. Wojcik also serves as Chair of NABIPS’s State Public Option Working Group.
Careers in Insurance
Lori Mahorney and Jennifer Jacobs visited with students about the abundance and variety of career opportunities in the insurance industry at the Cyclone Connections career exploration event for high school students. Last month Big I exhibited at the ISU Professional Sales Instititue Career and Internship Fair. If your agency is interested in hosting an intern this year, reach out to Jennifer at jjacobs@ilbigi.org.
Big I Illinois members joined InVest to promote careers in insurance to nearly 2,000 students at a career development conference in Rosemont on March 7.
Big I Illinois Quarterly Board Meeting
Big I Illinois Board of Directors met in Springfield in February. In addition to board reports, a financial presentation was given by the association’s accounting firm. Board members shared challenges agencies are experiencing and discussed ways in which the Association could provide support. Share your feedback with us in CONNECT! Go to connect.ilbigi.org.
Big I Illinois Partners with NAAIA
Big I Illinois has partnered with NAAIA Chicago to host a series of events, programming, tools and more to support our agents, “Ignite: Fueling the Future of Independent Agencies.” The Virtual Kick Off Call is scheduled for April 8 at 10:00 am. Register at www. eventcreate.com/e/ignitekickoff
Big I will also host a table at the April 30 NAAIA Chicago Scholarship Luncheon at the Union League Club. The event will feature Kevin Johnson, COO at Aon, and presentation of scholarships to students seeking careers in the insurance industry. Reach out to Jennifer Jacobs, (217) 321-3013 or jjacobs@ilbigi.org if you would like to join Big I at the event to support the next generation of talent coming in to the industry.
16 hours of IL CE credit
CE Available in other States, contact Big I Illinois for details
In the CIC Commercial Casualty course, you will gain a detailed understanding of the coverage, limitations, and exclusions of the Commercial General Liability (CGL) Policy, the Business Auto Policy (BAP), and the Workers’ Compensation and Employers’ Liability Insurance Policy (WC & EL Policy). Become familiar with current, practical policy knowledge and learn how to apply the limits of insurance and recommend appropriate endorsements.
Oakbrook Terrace, IL
Soterra
AGENT/INDEPENDENT CONTRACTOR WANTED
28. Are you an agent who owns their book and would like to reduce your overhead cost? Are you currently with a large agency and want less office politics? We have office space available and all of the tools needed to move your book of business, along with the carrier relationships. Full agency management system, VoIP phones and client support staff. Located in the Springfield, IL area. All discussions will be held in strict confidence.
For more information, contact Tami Hubbell, Big I Illinois, at thubbell@ilbigi.org.
AGENCY/AGENTS/PRODUCERS WANTED
02. Forest Park/Oak Park agency for over 60 years, will meet your needs by providing space, markets, marketing & sales support, automation, merging with or purchasing your agency. Perpetuation/ Succession Plans, BuySell Agreements also available. We have experienced, educated and dedicated staff for you and your clients. Have access to our numerous companies, office services and many other resources. Please look closely at us- we are an agency you want to do business with! We’ve done it before, we know how- we make it easy! Visit our website at forestagency.com/agents.html, or call for a confidential discussion and a list of Agency benefits.
Dan Browne will provide an agency evaluation/appraisal at little cost to you. Please call:
Dan Browne or Cathy Hall Forest Insurance/Relation Insurance Services (708) 383-9000 www.forestinsured.com/mergers-acquisitions
LOOKING FOR AN EXIT STRATEGY?
23. Are you looking for an exit strategy while still continuing to produce for a few years or are you ready to sell now? Paczolt Insurance would like to talk with you! We are an independent agency dating back to the 1970s that is located in the western suburbs. Our focus is on mid-to-small commercial accounts and personal lines. Our companies include EMC, Badger Mutual, Safeco, Progressive, and Travelers. We have the flexibility and capital to get a deal done. Contact:
Susan Troppito Paczolt Insurance susan@piaigroup.com (708) 215-5202
AGENCY WANTED
20. Since 2004, Central Illinois Agents Group LLC has been providing independent agents with a variety of markets with contingency opportunities. Agents have availability to several markets that they may not be able to sustain or maintain on their own. We have markets for personal, commercial, agricultural and crop insurance lines. Let us help you get to the next level.
Visit www.ciagonline.com for contact information.
