Wisconsin Independent Agent | August 2022 Magazine

wisconsin INDEPENDENT AGENT AUGUST 2022

JOIN THE IIAW'S task forces & councils learn how on pages 5-6

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CONTENTS

wisconsin INDEPENDENT AGENT

COVER STORY: Get Involved: Volunteer to Serve The IIAW is looking for volunteers to serve on the IIAW's Councils & Task Forces. Participation will give you access to industry experts, exclusive networking events and FREE CE opportunities during most meetings, when content allows.

PAGES:

5-6

INSURANCE BARTENDER............................................................6 Will You Answer the Call to Serve?

RISKY BUSINESS...............................................................................14-15 Replacement Cost: Know Your Limits

PERSONAL LINES............................................................................16-17

INDEPENDENT INSURANCE AGENTS OF WISCONSIN 725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com

2021-2022 EXECUTIVE COMMITTEE President:

Marc Petersen | American Advantage - Petersen Group, New Berlin

President-Elect:

Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield

Secretary-Treasurer:

Michael Ansay | Ansay & Associates, Port Washington

Chairman of the Board:

Darrel Zaleski | Spectrum Insurance Group, Eau Claire

State National Director:

Steve Leitch | Leitch Insurance, River Falls

2021-2022 BOARD OF DIRECTORS

Why You Should Discuss Travel Insurance With Your Clients

Matt Frank | Robertson Ryan & Associates, Milwaukee

AGENCY OPERATIONS................................................................20

Aaron Marsh | Marsh Insurance Services, Inc., Rice Lake

Is Work-Life Balance an Illusion?

COMMERCIAL LINES....................................................................22-23 Construction Risks Becoming Harder to Place

Mike Harrison | R&R Insurance Services, Inc., Waukesha Dan Lau | Robertson Ryan & Associates, Milwaukee Andrea Nelson | Unisource Insurance Associates, LLC, Wauwatosa Brad Reitzner | M3 Insurance Solutions, Madison Joanne Lukas Szymaszek | Johnson Insurance Services, LLC, Racine

MEMBERS IN THE NEWS..............................................................24-25 INDUSTRY RELATIONS................................................................28 Employee Stress at All-Time High, Says Gallup

AGENCY MANAGEMENT...........................................................30-31 Investing in Your Agency's People Can Lead to Big Returns

IIAW Staff Matt Banaszynski | Chief Executive Officer 608.256.4429 • matt@iiaw.com Mallory Cornell | Vice President and Director of Risk Management 608.210.2975 • mallory@iiaw.com

FINANCE...............................................................................................32 What to Know Before Buying Out an Agency Partner

Kim Kramp | Accounting Supervisor 608.210.2976 • kim@iiaw.com

COMMENTARY FROM COUNSEL...........................................34

Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com

What's in a Name? Wisconsin Supreme Court Forbids Legal Name Change for Transgender Registered Sex Offender

FOOD FOR THOUGHT..................................................................35

Evan Leitch | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com Kaylyn Staudt | Marketing and Communications Coordinator 608.210.2977 • kaylyn@iiaw.com

ADVERTISERS INDEX Berkshire Hathaway GUARD...................33 EMC......................................................................7 Erickson Larsen..............................................17 IMT.......................................................................36 Penn National..................................................21 Robertson Ryan & Associates.................15 Society................................................................29 UFG......................................................................2 Vizance...............................................................19 West Bend.........................................................12 Western National...........................................26

Jeff Thiel | Director of Agency Success 608.256.4429 • jeff@iiaw.com Andrea Michelz | Education & Membership Engagement Coordinator 608.210.2972 • andrea@iiaw.com Diana Banaszynski | Events Coordinator and HR Advisor 608.256.4429 • diana@iiaw.com Tyler Wheeler | Agency Accounting Specialist 608.256.4429 • tyler@iiaw.com Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256-4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2022 For information on advertising, contact Kaylyn Staudt, 608.210.2977 or kaylyn@iiaw.com. wisconsin INDEPENDENT AGENT

| AUGUST 2022 | 3

Trusted ® Choice Has FREE Marketing Materials

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Available to all Big "I" members!

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Video - Print - Digital - Social All materials can be customized to include your agency logo and info!

Find the perfect campaign for your agency highlighting the unique value Independent Agents deliver.

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4 | AUGUST 2022 |

wisconsin INDEPENDENT AGENT

Big Picture

We're looking for volunteers to serve on the IIAW's councils and task forces. Each council and task force will act as a sounding board for the IIAW and will only have three virtual meetings per year. Participation in the IIAW task forces and councils gives you access to industry experts, exclusive networking events and FREE CE opportunities during most virtual meetings when content allows.

Personal Lines Task Force

Commercial Lines Task Force

Employee Benefits Task Force

For individuals who are interested in or who have a role in Personal Lines insurance

For individuals who are interested in or who have a role in Commercial Lines insurance

For individuals who are interested in or who have a role in Employee Benefits

Virtual Meeting from 9 a.m. to 11 a.m. on 10/27/22, 3/2/23 and 7/13/23

Virtual Meeting from 9 a.m. to 11 a.m. on 10/26/22, 3/1/23 and 7/12/23

Virtual Meeting from 9 a.m. to 11 a.m. on 11/3/22, 3/9/23 and 7/20/23

10/27 Meeting Topic: Replacement Cost: Determining Values for Personal Lines Customers

10/26 Meeting Topic: WC Rate Decrease Overview

11/3 Meeting Topic: E&O Claims in Employee Benefits

Industry Relations & Operations Council

Government Affairs Council

Emerging Leaders

For insurance professionals who have an operational or leadership role within an agency or company Virtual Meeting from 9 a.m. to 11 a.m. on 11/1/22, 3/7/23 and 7/18/23

For individuals interested in staying informed and providing feedback to the IIAW's Board on Wisconsin & national legislative and political happenings.

10/27 Budgeting & Planning for 2023

Virtual Meeting from 9 a.m. to 11 a.m. on 10/25/22, 2/28/23 and 7/11/23

For insurance professionals looking to cultivate their skills for a successful career by engaging in association activities, professional development, education and events.

10/25 Meeting Topic: Election Preview & Update

Virtual Meeting from 9 a.m. to 11 a.m. on 11/2/22, 3/8/23 and 7/19/23 11/2 Meeting Topic: Cyber Liability Market Update

We will be hosting a kickoff event on September 21st for the IIAW councils and task forces to plan for the coming year. This meeting is free and open for all interested in joining a task force or council. Make sure you visit the below link to join so you will receive communications regarding this kickoff event! Additional event details to follow.

Join the IIAW's Councils & Task Forces Today:

s.pointerpro.com/volunteertoserve wisconsin INDEPENDENT AGENT

| AUGUST 2022 | 5

INSURANCE BARTENDER

WILL YOU ANSWER THE CALL TO SERVE? The IIAW is and always has been a member-driven organization. Our volunteers and volunteer leaders are an essential part of how we work. We rely on these dedicated agents and insurance company employees to give us perspective, direction and feedback. The IIAW is looking for volunteers to serve on the IIAW’s councils and task forces. Each council and task force will act as a sounding board for the IIAW and its leadership Board of Directors.

Your participation is invaluable, and your input and feedback will help drive the work we do in the coming year and beyond.

There is more than one way to get involved, and we encourage you to take advantage of the opportunities that work for you. If you’re not sure where to start, here are some options to consider: Volunteer and help lead our association Volunteer on one of our councils or task forces: • Industry Relations and Operations Council • Government Affairs Council • Emerging Leaders • Personal Lines Task Force • Commercial Lines Task Force • Employee Benefits Task Force

Take charge of your professional development • Participate in Wisconsin’s Emerging Leaders Program • Improve your Business Acumen • Enhance your industry acumen • Catchup on your continuing education credits Attend one of our annual events • InsurCon2023 • Emerging Leaders Conference • Networking and education Events • Coming in 2023: New Agency Owners Conference The IIAW will be hosting a kickoff event for participants of the councils and task forces on September 21st. This meeting is free and open for all interested in joining a task force or council. Visit s.pointerpro.com/volunteertoserve to join and to receive communications regarding this kickoff event! Additional event details to follow.

> Matt Banaszynski, CEO, IIAW

Matt’s Mixology Shark Attack Punch Ingredients Punch: • • • •

5 cups lemonade 3 cups white rum 1/2 cup blue curacao 3 liters lemon-lime seltzer, chilled

Directions 1.

2.

3.

Decorations: • • • •

1 pound rock candy Gummy sea creatures like sharks for the fish bowl, plus more for serving Grenadine, as needed 4.

1/12 gallon fish bowl; non-toxic aquarium plants and 12 plastic sharks

Recipe & Photo Courtesy of Food Network 6 | AUGUST 2022 |

wisconsin INDEPENDENT AGENT

Combine the lemonade, rum and curacao in a large pitcher and refrigerate until chilled, at least two hours.

Thoroughly wash and dry the fish bowl, non-toxic aquarium plants and plastic sharks.

Rinse the rock candy with cold water, put it in a large resealable plastic bag and lightly crush with a meat mallet to make gravel. Pour the gravel into the fish bowl and add the aquarium plants, anchoring them with the gravel. Arrange the sea creatures on top of the gravel. Freeze the bowl while the punch chills, at least 2 hours.

To serve, pour the rum mixture into the bowl, taking care not to disturb the plants, followed by the seltzer.

Put a gummy fish in the bottom of each glass and ladle in punch. Add grenadine to the mouth of each plastic shark.

Loss Control Equals Cost Control Solid safety practices make a bottom-line difference — for your clients and for you. That’s why EMC invests heavily in loss control services that can be customized to your client’s specific needs. We know a safer work environment equals a more profitable client and a more profitable client equals a more profitable business for you.

Check us out:

emcins.com/losscontrol

EMC Insurance Companies | Des Moines, IA | 800-447-2295 ©Copyright Employers Mutual Casualty Company 2022. All rights reserved. wisconsin INDEPENDENT AGENT

| AUGUST 2022 | 7

Company Name: Arlington/Roe Location of Company: 8900 Keystone Crossing, 8th Floor, Indianapolis, IN 46240 Date Company Was Founded: August 1964 Current Officers: • James A. Roe, President and Chief Executive Officer • Andy Roe, Executive Vice President, Chief Operating Officer • Janet Phillips, Executive Vice President, Personal Lines • Jim Eades, Executive Vice President • J. Patrick Roe, Senior Vice President, Marketing & Sales • John Immordino, Senior Vice President, Professional Liability • Rick Pitts, Vice President and General Counsel •Mark Garner, Senior Vice President of Operations Products Company Specializes In: Arlington/Roe is a family-owned independent managing general agency and wholesale insurance broker headquartered in Indianapolis, Indiana operating in the core states of Illinois, Iowa, Indiana, Kentucky, Michigan, Minnesota, Missouri, Nebraska, Ohio, Tennessee and Wisconsin.

The company specializes in Aviation, Bonds, Cannabis, 8 | AUGUST 2022 |

wisconsin INDEPENDENT AGENT

Commercial Agribusiness, Farm & Ranch, Healthcare & Human Services, Personal Lines, Professional Liability, Property & Casualty, Transportation and Workers’ Compensation. In addition to several other areas of expertise, the company specializes in finding the right solution for complex risk challenges through crossdepartment teamwork and access to a broad range of over 200 carriers.

Outlook for the Company’s Future: Arlington/Roe’s growth includes significant increases in human resources, talent acquisition, sales & marketing, and markets available to assist our independent agents. After a record growth year exceeding $250 million, total premium volume is expected to grow to $280 million in 2022. The company’s headquarters in Indianapolis are relocating just across the street in late 2022.

For Wisconsin, the most significant development has been the growth of our Wisconsin team. We have added two new associates and an existing associate to help grow the Wisconsin book of business.

President and CEO Jim Roe said, “Our corporate values shine through our people, and we thank our Wisconsin agency partners for the trust you place in us.” Senior Vice President of Marketing & Sales, J. Patrick Roe added, “in both a world and industry of constant change, we will continue to stay fiercely independent and find the best talent, tools and efficiencies to be the number one wholesale broker of choice for the IIAW member agents in the Badger state.”

WI Team: Melanie Gavanes, Aimi Kunesh, Brandee Gibson, Holli Lynch, Julie Powers, Kelly Cannistra and Pam Jewel.

Company Name: Auto-Owners Insurance Website: www.auto-owners.com Location of Headquarters: Lansing, Michigan Date Company Was Founded: July 1, 1916 Current Officers: • Jamie Whisnant, CEO • Mike Pike, President • Andrea Lindemeyer, Executive Vice President

Products Company Specializes In: We provide a wide range of personal, commercial and farm products. Auto-Owners specializes in garage risks (auto, boat and ATV sales and repair operations), contractors, light manufacturing, and commercial auto including trucking, as well as Main Street BOP business. We also offer loss control services within the state of Wisconsin. We offer a full range of life, health and annuity products.

Outlook for the Company’s Future: With our Simple Human Sense® approach to insurance, we will continue to be committed to the independent agency system in marketing our products. We’ve grown to become the 14th largest property & casualty company in the nation. We expect to maintain AM Best’s highest rating (A++ Superior), which we have earned every year since 1972. That makes us an especially attractive place for agents to place their customers’ business.

On the personal lines side, we offer home, auto, umbrella, dwelling fire, and renters insurance products. Commercially, we are a perfect fit for bars/ taverns, bowling alleys, restaurants, hotels, and LRO. Company Name: Badger Mutual Insurance Website: badgermutual.com Company Location: Milwaukee, WI Date Company Was Founded: 1887 Current Executive Team • Dan Nigro – President, CEO • Dan Wolfgram – COO • Darrin Groendal – CFO • Kathy Bubeck –VP, Claims & Secretary • Andy Thiede -VP, IT • Brian Wiza – VP, Underwriting • Sean Costello – Director of Marketing • Kelly Jaynes – Director of HR • Joanna Glaser – Corporate Counsel • Laura Michna – Asst. VP Administration Products Company Specializes In: We continue to innovate and diversify our product portfolio, while remaining true to products and niches that fit our appetite.

We serve residents and partner agents throughout 10 states: Wisconsin, Illinois, Minnesota, Iowa, Michigan, Arizona, Nevada, Idaho, Utah, and Wyoming.

Outlook for the Company’s Future: Our HQ location in the heart of Milwaukee’s hospitality district combined with our engagement with industry partners, like IIAW, allow us to keep a pulse on what our agency partners and policyholders need from us a carrier. Even with 135 years under our belt, we continue to rise: consistently achieving financial and operational goals outlined in our strategic plan, ramping up product and system innovations with the upcoming launch of our commercial policy administration system, cultivating relationships between partner agents and employees while incorporating professional development throughout all departments, and doubling-down on our commitment to customer service. By controlling what we can control – our relationships, customer service, and ease of doing business – we remain the heart of your insurance protection: a real voice on the phone and our hands outstretched in partnership with all stakeholders. wisconsin INDEPENDENT AGENT

| AUGUST 2022 | 9

Deep Relationships.

Unmatched Service.

EXCELLENT HOSPITALITY.

Our success is rooted in exceptional partnerships and a promise to listen, respond, and find solutions when our agents and mutual customers need us most. Let’s talk about how Central can help you better serve your clients and add value to your agency.

Rob Gudates Wisconsin Marketing Manager rgudates@central-insurance.com Ph: 262.282.2153

The Central Insurance Companies are comprised of Central Mutual Insurance Company and All America Insurance Company.

Local Leadership: Michael Levy, Branch Manager, CNA Wisconsin

Company Name: CNA Website: www.cna.com Branch Location: CNA Wisconsin 10000 Innovation Drive, Suite 320 Wauwatosa, WI 53226 Date Company Was Founded: 1897 Current Officers: • Dino E. Robusto, Chairman and Chief Executive Officer • Douglas Worman, Executive Vice President and Global Head of Underwriting 10 | AUGUST 2022 |

wisconsin INDEPENDENT AGENT

Products Company Specializes In: In addition to our broad appetite for business risk, CNA focuses on small business, middle market and risk management business across manufacturing, construction, technology, healthcare, professional services, financial institutions and real estate.

Outlook for the Company’s Future: We know your time is valuable. You expect to work with insurance specialists who have the expertise and understanding of their clients’ business needs, and can deliver full and meaningful solutions. CNA's experienced Wisconsin branch staff is ready to respond to the needs of you and your clients. With a powerful legacy, an international reach built on a strong local presence, well-known business insurance expertise, and a deep commitment to our agents brokers and customers, we offer more than just a policy - we deliver distinctive insurance solutions and promise a superior customer experience. It is these core attributes and our relationships with you that provide a strong foundation for continued mutual growth.

Wisconsin Mutual Insurance is a personal lines company founded in 1903. Based in Madison, Wisconsin we write business throughout our home state as well as in Minnesota- working with our network of independent agents. We focus on customer service and the ‘human touch’ that allows our policyholder to have confidence in the insurance process and our partnership.

commercial appetite book of business is tailored to small and medium sized residential accounts and small artisan contractors.

Our strong performance is the result of the contributions of our dedicated employees and agents providing exceptional service to our policyholders through both in-person interactions web based platforms.

Balancing our We continue to focus on the changing needs of our industry-leading expense ratio and continuing to policyholders and that has led to more coverage invest in and cultivate the use of technology is a options, endorsements and programs. Our personal strong focus in our immediate future. lines products include auto, home and umbrella. In addition, we are proud to support the small and medium sized farms that are so critical in Wisconsin and Minnesota. We grow in this market segment Independent agents interested in learning more every year, and pride ourselves on the local expertise about WMI should contact Kelly Everson, Marketing we offer farmers in the communities we serve. Our Representative at 608-828-1449.

AUTO • HOME • DWELLING • FARM • BUSINESS • UMBRELLA

Thank you to all of the IIAW's Gold-Level Supporting Company Members!

wisconsin INDEPENDENT AGENT |

AUGUST 2022 | 11

It shouldn’t take walls collapsed by 140-mile-per-hour winds to find out who your customers can trust.

BUT SOMETIMES IT DOES. And that’s the Silver Lining®.

2022

SALES & LEADERSHIP

SUMMIT

ABOUT MARSHBERRY

IIAW & MarshBerry Partnership

MarshBerry is a nationally recognized advisory firm and top growth consultant for insurance agents, brokers & carriers.

EVENING FUN 1.5-DAY SUMMIT Our 2022 Sales & Leadership Summit will be led by Don Folino, MarshBerry Sales Performance Consultant, and Eric Kuhen, MarshBerry Senior Strategy Consultant.

A strong sales culture not only enables your firm to consistently win new business, but it also has the right people, processes, trainings and technology in place to sustain double-digit organic growth for multiple years. To know where your agency stands, you need to benchmark your sales culture in four key areas: Sales Leadership, Performance Management, People Development & Technology.

Summit Topics include: • State of the Insurance Industry • Foundational Selling Techniques • Effective Sales Huddles • Goal Setting & Accountability • Personality Types • Building Trust • Handling Conflict • Culture Creation

On Tuesday night, join the IIAW at the Timber Rattlers’ Home Run Porch.

Tickets & food included in Summit registration.

LIMITED SPACE AVAILABLE Registration is $249 per person and registration includes your ticket & dinner for the Timber Rattlers game.

We have limited space available for the event and encourage everyone to sign up early to secure your spot.

AUGUST 23-24 NEENAH, WI LAST CHANCE TO REGISTER:

bit.ly/SalesLeadershipSummit

RISKY BUSINESS

REPLACEMENT COST: KNOW YOUR LIMITS There is a recurring theme within the questions that have been brought to my attention over the last thirty days: replacement values. In reviewing agency operations, I always ask employees how they determine replacement cost, and more importantly, how do they show that the client selected the values. The first part of the question was historically simple. The second part always ignites some great conversations.

It’s important to tackle both and have a consistent procedure within the agency.

Determining Values What used to seem like a straightforward answer now carries a bit more weight considering the rising costs of building materials. Utilization of replacement cost estimators is a good place to start, but always be mindful that the information that is generated by the RCE software is only as good as the data that is entered.

The replacement cost estimator is exactly what it says, an estimator. There are many variables to consider in addition to educating your customers on market value versus replacement value. I have yet to meet an insurance agent who is also a licensed appraiser, so consider recommending an appraiser or online cost estimator to your insured.

In addition to replacement cost estimators, agents may also use a builders estimate or various online resources. Whatever tools the agency chooses to invest their time and money in using, it should be consistent across the agency.

14 | AUGUST 2022 |

wisconsin INDEPENDENT AGENT

Personnel should also consider the endorsements to the policy they are issuing, upgrades the property owners may be making and advising customers on current market conditions and building costs. While it may be additional work for the agency, it is important to evaluate customer coverage limits at renewal or send correspondence offering a review of coverage and limits.

It is always important to use disclaimers when providing the results of the replacement cost estimator. Agents must avoid providing coverage limits for their client.

Client Acknowledgment Agents who select values and coverage limits for clients are operating in dangerous territory. The agent should never make decisions for the customer and should always obtain documentation on how values were determined and an acknowledgment from the customer that they agree with the coverage limits. This is NOT a note in the agency management system, this is an attachment or email showing written customer acknowledgment. A signed application is great, but correspondence on values should also be included. Also be aware that anytime you provide advice on coverage or limits, you are increasing your duty to advise and taking on a role that may be hard to defend if there is ever an E&O claim with that client.

Always let your customer make the final decision and only provide information to help them come to that decision.

Sample Disclaimer Language:

Building and personal property coverage limits are estimates only and were arrived at based on information provided by the policyholder and/or industry standard software used to estimate replacement costs. The actual cost to rebuild the structure or replace the personal property may exceed the policy limits, especially in circumstances where a catastrophic event has disrupted the normal supply of materials, labor, and resources.

The agency makes no assurances or guarantees that the policy limits provided will be adequate to rebuild the structure or replace personal property. If there is doubt about the adequacy of the policy limits, the policyholder should obtain a professional appraisal or obtain the services of a qualified company or builder who is able to provide replacement cost estimates.

...

If a customer selects limits below what your recommendation may be, strongly consider a waiver stating the customer understands the limits may be below what it would cost to replace the property. You also have the option to recommend that customer find another agent if they are not willing to select higher values.

There is no exact science or magic equation when it comes to selecting property values and coverage limits. My advice is to continue to responsibly utilize updated replacement cost estimator software, provide regular updates, and utilize disclaimers. You are great insurance agents, but likely not expert appraisers.

> Mallory Cornell, Vice President, IIAW

Are you our next Agent Owner or AFFILIATE AGENCY? more markets. bigger return. proven success.

learn more: Chris Illman | cillman@robertsonryan.com | 800-258-0277 | www.robertsonryan.com/agentowner wisconsin INDEPENDENT AGENT |

AUGUST 2022 | 15

PERSONAL LINES

WHY YOU SHOULD DISCUSS TRAVEL INSURANCE WITH CLIENTS Bathing suits, flip flops and sunscreen have often been the staples when packing for a tropical vacation. But these days, masks, sanitizer and COVID-19 tests have become the must-have essentials to pack for a getaway. And with many travelers vowing to take those bucket list vacations this year, it's not enough to protect themselves only from COVID-19; it's also critical that they protect their trip investment with the right type of travel insurance.

“If you decide to travel, you will want to research what mandates are in place and if they could impact your travel plans," says Lisa Lindsay, executive director for Private Risk Management Association (PRMA). “Mandates could include negative testing or vaccination status requirements and international travel restrictions.

For example, you want to know whether you'll be required to quarantine for 14 days once you arrive at your destination."

“Check out the U.S. Department of State and Centers for Disease Control and Prevention websites in addition to the website of the state or country to review travel restrictions that may impact your trip," Lindsay adds.

With spring break and summer trips on the horizon, this is the perfect time to discuss travel insurance with your clients. Here are three things to consider:

16 | AUGUST 2022 |

wisconsin INDEPENDENT AGENT

1) Proactively discuss travel plans. As part of your risk management process, consider incorporating related questions and prompts into your client reviews: • Where do you like to travel?

• When is your next vacation planned, and where are you going?

• How will you reach your destination?

• Do you have any concerns about traveling?

• What type of activities do you usually partake in on vacation?

• Have you ever considered adding travel insurance?

2) Protect against cancellations. Because of the ever-changing guidelines that vary between states and countries, travelers may cancel a trip at a moment's notice. Travel insurance is available for a nominal premium for these circumstances. As knowledge around travel cancellation insurance continues to become more mainstream, clients will not only seek out these coverages, but they should become a part of your risk management discussions and reviews.

3) Tailor coverage. Coverage varies significantly between carriers, and each client has specific wants and needs. Consider which policy best fits their lifestyle and the location where they plan to travel.

The most requested coverages in travel insurance are: • Cancel for any reason endorsement. This endorsement typically provides a valuable solution that gives travelers the most flexibility to recoup their expenses if they cancel their plans for any reason except those explicitly excluded in their policies.

• Trip delay coverage. This coverage reimburses your client when an event beyond their control delays or interrupts a scheduled trip. Based on the specific policy, travelers can be refunded for temporary hotel accommodations, food and even airfare costs if they are placed on a different flight or change travel plans. Trip delay coverage can also include additional items, such as compensation for lost or delayed baggage and travel assistance services.

• Travel medical coverages. Medical endorsements can provide coverages for emergencies, such as accidental bodily injury, various illnesses and loss of life beyond what their primary medical providers typically cover.

These endorsements would offer valuable options to clients who travel and look for an additional layer of medical protection.

Some policies also provide medical evacuation and repatriation if a client needs specialized

transport to a hospital or return home.

Since coverages vary, agents should not take a one-size-fits-all approach, but you can find the coverage that best fits your clients' needs with the endorsements available to round out their coverage. Contact the carriers you represent to ask about their travel insurance options.

Whether your clients are bound for sandy beaches, breathtaking waterfalls or snow-covered mountains, remember to ask them about their travel plans and offer them coverage options to protect their next trip.

Bryan Newman is field marketing director, personal lines, with The Cincinnati Insurance Company, and Ken Smith is vice president, private client services, at Marsh McLennan. Both Newman and Smith are members of the Private Risk Management Association (PRMA), a nonprofit educational organization in the high net-worth insurance industry.

This article was originally published on iamagazine.com in March.

> Nancy Germond, Executive Director of Risk Management & Education, Big "I"

IIAW CONTINUING EDUCATION

2022 ONLINE EDUCATION & CE CLASSES

AUGUST & SEPTEMBER SCHEDULE DATE

TIME

AUGUST

COURSE

8/2

8AM-11AM

Commercial Lines Claims That Cause Problems

8/4

9AM-12PM

E&O Commercial Property Coverage Gaps & How to Fill Them

8/5

8AM-10AM

Those Kids and Their Cars

8/8

8AM-11AM

Ethics in the Insurance Industry

8/10

12PM-1PM

Claims-Made Policies - The Most Dangerous Insurance Policies

8/16

8AM-11AM

Agency Management Based E&O and Ethics

8/18

8AM-10AM

Insight on Modern Day Cyber Exposures & Risk Mitigation

8/23

8AM-10AM

Personal Lines Issues That Keep You Up at Night

8/24

2PM-5PM

8/25

12PM-3PM

Commercial Lines Claims That Cause Problems

8/26

8AM-9AM

Claims-Made Policies - The Most Dangerous Insurance Policies

8/29

8AM-9AM

Setting Business Income Limits: It’s Easier Than You Think!

8/30

8AM-10AM

Business Auto Claims That Cause Problems

8/31

8AM-10AM

Builders Risk and Contractors Equipment

E&O Risk Management: Understanding Risk Mitigation and E&O Claims

SEPTEMBER 9/1

12PM-2PM

The Guy in the Bar Returns

9/2

8AM-11AM

Agency Management Based E&O and Ethics

9/2

12PM-2PM

Builders Risk and Contractors Equipment

9/6

8AM-11AM

Commercial Lines Claims That Cause Problems

9/6

11AM-2PM

E&O Risk Management: Understanding Risk Mitigation and E&O Claims

SEE OUR FULL COURSE SCHEDULE AND REGISTER FOR THESE CLASSES AT IIAW.COM/EDUCATION 18 | AUGUST 2022 |

wisconsin INDEPENDENT AGENT

BE THE NEXT

Find out why agency owners choose us!

• • • • • • • •

Broad Leadership Team that is 100% focused on the insurance business Flexible deal structures including the ability to retain some ownership Strong focus on culture, associate engagement, and client satisfaction Proven ability to drive double-digit organic growth Recruiting & mentoring program to develop those new to the industry Shareholder program for top performers Ability to maintain leadership with regional and practice group support Committed to serving our communities

Call us for a confidential conversation Tom Schaetz 419.450.0317

AGENCY OPERATIONS

IS WORK-LIFE BALANCE AN ILLUSION? Ahhhhh. Work-life balance: the dreamy decades-old topic that has gotten a refreshing makeover, thanks to the growing adoption of remote work. Finally, it seems you can achieve that magical balance between work and non-work demands. You can crush a workout between meetings or run errands during lunch.

With the time you save not commuting to and from work, you can make time for more meals with family, complete chores around the house, or take the dogs for a walk. For some, remote work has certainly made this balance easier to achieve. But for others, as work crept into our homes, it felt like the workdays never actually ended.

As more and more companies have embraced remote work and flexible schedules, we are now instantly available to work anytime, anywhere, 24/7. Coworkers can call, text, Zoom and “ping” us at all hours of the day, regardless of time zone. Personal cell phones are now indistinguishable from work phones, which means colleagues can email and text us wherever we are.

Fewer ad hoc conversations happen face to face, so every conversation has become a scheduled meeting.

Researchers from Harvard Business School and New York University’s Stern School of Business found that we now have more meetings, and that meetings are shorter and filled with more people. Back-to-back-to back meetings leave less time to get “real” work done during the normal workday, so employees grind it out during the evenings and weekends.

All of this has led to widespread overload and burnout – which certainly isn’t what most remote workers associate with work-life balance. Balance implies fiftyfifty, and for many workers, the new norm feels far from that. Work has crept into life more than life has crept 20 | AUGUST 2022 |

wisconsin INDEPENDENT AGENT

into work. So, how can we feel productive without feeling burned out? The key to balance is boundaries.

Workers and employers alike need to set and communicate boundaries. Some companies have started to institute “no meeting Fridays” and are adding no-work wellness days to the calendar.

Employees need predictable time off to help achieve balance.

On the personal side, be sure to use your allotted vacation time. While on vacation, don’t be tempted to work or check in on work. For some, it can feel stressful to take a true break from work, but it’s important for your mental and physical health.

During your work week, block regular chunks of time each day on your calendar to get work done so that you don’t have to do it after hours. Create time when you don’t check your phone. Pick a consistent time each day when you shut down your computer – and stick to it.

Setting boundaries is the easy part; sticking to them is hard. It might feel uncomfortable at first to say no, to stop checking emails after work, or to put your phone down during dinner time. But it’s important to remember that being flexible is not the same as being always on. Being always on can be detrimental to your health. The time to implement boundaries is before you start to feel emotionally exhausted, have difficulty concentrating, or become increasingly dissatisfied or disillusioned at work. Go ahead and do it today. Your future self will thank you.

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wisconsin INDEPENDENT AGENT |

AUGUST 2022 | 21

COMMERCIAL LINES

CONSTRUCTION RISKS BECOMING HARDER TO PLACE If the last two years have shown us anything, it is that supply chain disruption will be only one hurdle in insuring new and remodel construction contractors. The demand for housing, whether single-family residences or apartments, continues to increase.

Construction trends in 2022 According to Forbes in a recent article on housing trends, most housing gurus predict “the market to remain strong for a while" for several reasons. These include the following.

Challenges placing construction insurance In a recent online seminar on property markets, wholesale brokers discussed the recent insurance marketplace, The pandemic proved that the government, and customers, deemed tradespeople of all stripes “essential workers," and most continued to work steadily throughout this persistent pandemic. While the presenting brokers described the market as “in transition," 2020 saw problems with coverage as the insurance market adjusted. Lower capacity, stricter policy conditions and provisions, and other issues surfaced that insurance agents had to adapt to. These changes included the following.

• A younger demographic.

• Now half the U.S. population, Millennials and Gen Z comprise almost a third of • Inflation on construction products and now, today's real estate market. transportation costs • Low housing supply is fueling demand, and with • Nuclear verdicts, especially in commercial fleet it, increasing home prices. exposures • Due to stricter loan requirements, experts do • Higher cost of goods, which resulted in higher not expect a high number of mortgage loan claims payouts and an “overall poor claims defaults as the U.S. experienced in 2008's experience," much of it due to inflationary housing crash. material costs Additionally, skilled artisan and contractor trades Additionally, wildfires impacted lumber reserves, such as plumbers, electricians, and kitchen and the Texas freeze last year as I saw first-hand and bath remodelers report strong demand. last year (my husband is a plumbing contractor), As Americans age in place, upgrades such as caused practically all plumbing supplies in the accessibility improvements and adding square U.S. to head to Texas, has hit claims payouts as footage for relatives or caregivers will also repaired times and prices increased. continue to fuel the remodeling boom.

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wisconsin INDEPENDENT AGENT

Rate increases are higher among residential contractors.

Fleet auto losses hit contractors' premiums hard Auto risks are leading the way in losses, and excess carriers today focus on auto losses that pierce excess layers, according to one broker.

What underwriters used to consider a fleet, 25 or so autos, is newly defined. Agents are finding that underwriters now classify eight or ten vehicles as fleets.

According to one broker, where an underwriter used to receive one hundred submissions a month, now they're receiving 200-to-300 a month.

The trend now with agents is to “market everything," so new construction submissions flood today's constructions underwriters.

Here are some specific submission recommendations made by surplus lines brokers.

• Complete, with an emphasis on “complete," the Acord 125, 126, and 131 • Complete any contractors' supplements required by the carrier or wholesaler The auto experience on the underlying layer is • Complete a fleet supplemental application especially important when underwriters review • Submit five years of currently valued loss runs construction accounts, and the insured's auto loss • A five-year history of the following: history is strongly impacting pricing.

• Revenue • Payroll As nuclear auto verdicts continue across the • Subcontractor payments, often referred nation, most of them tied to auto losses, carriers to as SubK costs are carefully scrutinizing fleets. The following • Fleet count factors will come under close review by today's construction underwriters.

The more information you provide, the quicker your submission gets “to the top of the stack," • Driver hiring and training according to one broker.

• Annual driving record checks on drivers • Telematics now almost a requirement Working with wholesalers • Fleet safety practices overall It's important if you're working with wholesalers Add in an aging workforce, with many that you use brokers with strong industry tradespeople working well into their late sixties contacts, who know the forms and the markets and seventies, nuclear auto verdicts, and younger they represent, and have developed strong workers with less driving experience added to the relationships with underwriters. employment mix, and you can understand the concerns worrying underwriters.

With the construction market in transition, it's imperative that your submission be thorough and The importance of a strong submission of high quality.​ How can agents work against this tide of enhanced underwriting? Here are a few suggestions from the workshop.

A good submission moves to the top of the stack. Underwriters hate to request additional information. If you provide all the information with the submission, you're more likely to receive a quicker, more positive response.

This article was originally published on independentagent.com in June.

> Nancy Germond, Executive Director of Risk Management & Education, Big "I"

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AUGUST 2022 | 23

News Members in the

ENCOVA INSURANCE WINS AITENOVARICA INSURANCE TECHNOLOGY IMPACT AWARD

Columbus, OH (6/29/22) - On June 29, Encova Insurance was announced as a winner of the 2022 Aite-Novarica Insurance Technology Awards for their Personal Lines Transformation. With 65 technology project submissions, Encova was one of 12 winners, and one of three winners in the category of core systems: large property/casualty.

“We are honored to receive this award that showcases the technology we have implemented in recent years,” Encova Executive Vice President and Chief Strategy Officer John Kessler said. “The decision to move forward with personal lines and invest in Guidewire’s state-of-the-art technology did not come easy; but it was absolutely the right strategy.

We are proud of our cross-functional internal team who implemented this new solution during a pandemic and the outstanding support we received from strategic partners such as PwC and Cognizant to see this through to fruition.”

Encova’s Personal Lines Transformation consolidated six legacy systems to improve the online experience for policyholders and agents, using Guidewire’s InsuranceSuite and Digital Portals to create one system. Encova has implemented this project in 10 states so far, with plans to expand. New business counts in 2021 increased by 144% year-over-year, and straight-through processing for issued new business has risen from 0% to 56%.

“This transformation reinvented who we are in regard to our personal lines offerings and has modernized our capabilities,” Encova Executive Vice President, Personal Lines, Matt Wilcox said. “Our new system provides our agents and policyholders with a best-in-class experience with state-of-the-art digital capabilities. I couldn’t be prouder of how far we have come and the coverages and digital experience we are now able to offer.”

difficult projects insurer IT organizations can undertake, but they’re often vital for enterprise agility and risk reasons,” Aite-Novarica Group Head of CIO Research Harry Huberty said. “As Encova’s case study demonstrates, these projects can be massive and complex; coordinating missioncritical workstreams across hundreds of resources takes exceptional communication. When they are successful, they can create transformative impact for their organizations.”

The success of this transformation was the result of a detailed strategy and plan, effective collaboration and defined goals amongst the team and partners.

“We congratulate Encova Insurance on being recognized with a 2022 Insurance Technology Impact Award by Aite-Novarica and for their successful personal lines core systems transformation project with Guidewire InsuranceSuite,” Guidewire Software Chief Customer Officer Christina Colby said. “We are impressed with the work they have done and are delighted that they have been recognized with this well-deserved honor.”

A.M. BEST AFFIRMS A-EXCELLENT RATING FOR SOCIETY INSURANCE

Fond du Lac, WI (7/7/22) - Society Insurance recently had its overall financial strength affirmed as A- (Excellent) with Stable Outlook by international rating agency A.M. Best Rating Services.

“It’s gratifying to see our A- (Excellent) rating and Stable Outlook affirmed by A.M. Best, because it speaks to our financial stability and historically profitable operating results,” said Heather Boyer, Society Insurance president.

“In partnership with our independent agents, we are focused on serving our policyholders, while also expanding geographically and growing profitably.”

A.M. Best provides ratings that assess the creditworthiness of more than 16,000 insurance companies across the world.

An A.M. Best rating is an informed summary opinion of a company’s ability to pay claims, debts and other obligations as they arise.

Society’s A.M. Best rating is effective June 16, 2022. For the latest rating, access www.ambest.com.

WEST BEND MUTUAL INSURANCE MAKES WARD'S 50 RANKING

Through this technology, Encova has implemented paperless delivery and automated payments for policyholders, in addition to e-signature and API integration.

“Core systems modernization efforts are among the most 24 | AUGUST 2022 |

wisconsin INDEPENDENT AGENT

West Bend, WI (7/11/22) - West Bend Mutual Insurance

Company has placed in the Ward's 50 group of topperforming property and casualty insurers for 2022. The recently released list includes the best industry performers of nearly 3,000 U.S.-domiciled companies. West Bend is recognized for its outstanding financial results in the areas of safety, consistency, and performance over a five-year period (2017-2021). It is the eighth consecutive year the company has been included on this list.

The Ward Group's methodology evaluates key safety and consistency measurements and performance tests.

Ward's 50 identifies companies that pass financial stability requirements and measure their ability to grow while maintaining strong capital positions and underwriting results. To be awarded the designation on the 2022 list, insurance companies must pass minimum thresholds of performance.

"Being included again in the Ward's 50 list of top property and casualty insurers in the U.S. is a great honor for us," stated Kevin Steiner, president and CEO. "I extend my thanks to our associates for their outstanding performance and to the independent agents who represent West Bend Mutual Insurance Company, who are why we've achieved this success."

ACUITY NAMED A TOP PERFORMER

BY WARD GROUP FOR 23RD STRAIGHT YEAR

Sheboygan, WI (7/11/22) - Acuity has been named to the 2022 Ward’s 50 list of top-performing property-casualty companies, putting the company in the top 2 percent of insurers nationwide. Acuity has earned a spot on the Ward’s 50 every year since 2000, making the company one of only four insurers, and the only regional carrier, to be named to the list for 23 consecutive years. Ward Group is the leading provider of benchmarking and best practices studies for insurance companies.

“We recognize Acuity for outstanding financial results in the areas of safety, consistency, and performance over a five-year period,” said Jeff Rieder, partner and head of Ward Group. “In selecting the Ward’s 50, we analyze the financial performance of nearly 2,900 property-casualty insurance companies, identifying the 50 companies that pass financial stability requirements and demonstrate the ability to grow while maintaining strong capital positions and underwriting results.”

“Acuity’s continued strength, stability, and consistency are essential to all the families, businesses, agents, and employees who count on us,” said Ben Salzmann, Acuity

President and CEO. “We are honored to be recognized by Ward Group for 23 consecutive years as a top performer, which demonstrates our ability to fulfil our promises to customers and grow our business.”

Acuity continues to outperform the industry. Over the past two decades, the insurer’s rate of sales and surplus growth has been more than double that of the industry.

The company’s combined ratio, more than 6 points better than the industry average in 2021, has been under 100 for 11 consecutive years, meaning it has generated an underwriting profit in each of those years.

Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 125,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 30 states. Rated A+ by AM Best and S&P, Acuity employs over 1,500 people.

NORTH STAR RECEIVES WARD'S TOP 50 ACHIEVEMENT Cottonwood, MN (7/15/22) - North Star Mutual Named to Ward’s 50® Top Performing Property-Casualty Insurance Companies for the 18th Consecutive Year.

On July 11, 2022, the Ward Group named North Star Mutual to their list of 2022 Ward's 50® Top Performing Property-Casualty Insurance Companies for the eighteenth consecutive year. The Ward Group is the leading provider of operational and compensation benchmarking and best practices services for insurance companies. The Ward Group analyzes the financial performance of nearly 3,000 property-casualty insurance companies across the nation and identifies the top performers in each segment based on objective data and subjective quality measures.

Each company on the 2022 list has passed all safety and consistency screens and achieved superior financial performance over a five-year period (2017-2021).

“It is always an honor to be selected for to the Ward’s Top 50.” said President and CEO, Pete Hellie, “It is a special recognition to the efforts of the North Star Mutual staff and the continued great support from our Independent Agents.”

North Star Mutual Insurance Company is a Midwest property-casualty insurance company serving the states of Minnesota, Iowa, North Dakota, South Dakota, Wisconsin, Nebraska, Kansas and Oklahoma. The company writes $500 million in premium annually and is rated “A+” Superior for financial stability by A.M. Best.

For more information about the Ward Group and the Ward's 50®, please visit the organization's Website at www. ward.aon.com. For more information on North Star Mutual Insurance Company, visit www.northstarmutual.com.

wisconsin INDEPENDENT AGENT |

AUGUST 2022 | 25

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INDUSTRY RELATIONS

EMPLOYEE STRESS AT ALL-TIME HIGH, SAYS GALLUP Employees' stress is at an all-time high—again—according to Gallup's “State of the Global Workplace 2022 Report."

Forty-four percent of employees around the world reported experiencing stress during “a lot" of the day, according to the survey. The stress levels are up from the previous record of 43% in 2020.

Working women consistently report higher levels of stress globally compared to men, with 1 in 2 U.S. and Canadian women saying they experienced stress a lot of the previous day.

Only 21% of employees say they are engaged at work, which Gallup describes as “highly involved in and enthusiastic about their work and workplace," a group that rose by 1 percentage point from 2020 but remains below the 2019 peak. Unfortunately, 66% of workers are not engaged, meaning psychologically unattached, at work. And 19% are actively disengaged workers, which Gallup defines as “resentful" and “acting out of their unhappiness."

Employee disengagement should be taken seriously, according to Gallup, estimating that low engagement costs the global economy $7.8 trillion and accounts for 11% of gross domestic product (GDP) globally.

One-third of global workers say they are thriving in their overall wellbeing. Both South Asia and Europe dropped five percentage points in wellbeing in the past year, with South Asia having the lowest wellbeing in the world at 11%.

Despite employees in the U.S. and Canada clocking up some of the highest levels of worry and stress, the region also has the most engaged employees. Globally, North America comes in No. 1 for employee engagement at 33% and No. 2 for wellbeing at 60%.

However, employee disengagement and wellbeing are interconnected. Workers who report being engaged but not thriving are 61% more likely to experience ongoing burnout than those who are both engaged and thriving.

And employees who consistently experience higher levels of burnout at work not only say their job makes it difficult to fulfill family responsibilities, they are also 23% more likely to visit the emergency room.

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wisconsin INDEPENDENT AGENT

Among workers who experienced stress during the day, 49% were neither thriving or engaged versus 30% who were thriving and engaged. Among those who experienced anger, 24% were neither thriving or engaged compared to 11% who were thriving and engaged. And among those who experienced health problems, 16% were neither thriving or engaged, while only 8% were thriving and engaged.

With the “Great Resignation" a constant concern, it's no surprise that workers in North America are looking to switch employment, with 71% of U.S. and Canadian workers saying now is a good time to find a job. However, globally, only 45% of employees say now is a good time to find a job—up from last year's 44% but significantly less than 2019's record 55%.

“Business units with engaged workers have 23% higher profit compared with business units with miserable workers," wrote Jon Clifton, Gallup CEO, in the study.

“Additionally, teams with thriving workers see significantly lower absenteeism, turnover and accidents; they also see higher customer loyalty. The point is: Wellbeing at work isn't at odds with anyone's agenda."

What's the solution? In a previous study on burnout, Gallup found the biggest source was unfair treatment at work, followed by unmanageable workload, unclear communication from managers, lack of manager support and unreasonable time pressure. Clifton pointed out the one thing those five causes have in common: the boss.

“A manager's effect on a workplace is so significant that Gallup can predict 70% of the variance in team engagement just by getting to know the boss," he wrote.

“Managers need to be better listeners, coaches and collaborators. Great managers help colleagues learn and grow, recognize their colleagues for doing great work, and make them truly feel cared about. In environments like this, workers thrive."

This article was originally published on iamagazine.com in July.

> AnneMarie McPherson Spears Independent Agent News Editor

© 2020 Society Insurance

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If you agree that details like these make a big difference, give us a call at 1-888-5-SOCIETY or visit societyinsurance.com.

AGENCY MANAGEMENT

INVESTING IN YOUR AGENCY'S PEOPLE CAN LEAD TO BIG RETURNS The most valuable asset in every agency is their people. There is no question that our industry is based on relationships and the best way to have strong relationships is to have quality people representing your brand, serving your customers, and shaping the culture of your agency. In every survey for the past 15 years, finding and retaining great talent is listed as one of the biggest challenges that agency owners face. That challenge has only intensified for many in the current employment environment. Those agencies that are able to create a work environment that attracts, retains, and provides a long-term career path for their people are the ones that are best positioned for the future from a growth, scale, and value standpoint. If you want to invest in your agency – invest in your people.

In the current “Great Resignation” workforce environment, we all need to contemplate the changes we can make to meet the needs of the current workforce as it moves and shifts. According to Gallup’s State of the Global Workplace 2022 Report, it was reported that 71% of the workers in the U.S. believe that now is a good time to find a new job. In addition, only 21% of employees say they are engaged at work, which Gallup describes as “highly involved in and enthusiastic about their work and workplace". Each agency should ask themselves “Is my organization attracting talent? Are people running towards my agency or away from my agency?”. In order to answer this question, you need to understand the needs and wants of the current workforce, what is needed to create an environment where your employees are engaged, happy, and productive. The following are a few key areas to consider.

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wisconsin INDEPENDENT AGENT

Build a Strong Culture First and foremost, everyone has a desire to feel valued in every part of our lives. This is a core component of every relationship, and the work relationship is no exception. Creating a culture that demonstrates that you care about your staff is critically important. Many employees cite their relationship with their manager as the biggest influence on their success and satisfaction in their role. Building a strong connection as people is incredibly powerful. This can be best achieved by listening, understanding, and acting. By taking action to solve challenges they face in their day-to-day work environment you demonstrate that you care about them as people as well as employees, and you strengthen your connection.

Flexible Work Environment Over the past three years we have clearly demonstrated that work can be achieved remotely.

Organizations that embrace a flexible work environment and are positioned to accommodate in-person work, remote work, and hybrid roles are the ones that can attract talent and begin to reshape their staff. This has allowed many organizations to adopt custom compensation packages and really meet their employees where they want to be. It also reinforces that you value what's most important to them and you’re balancing that with the needs of the agency. In order to make this transition, agencies must invest in technology, formalize processes, and be intentional with their engagement to keep their culture strong. It also requires a great deal of trust and respect for this structure to work well.

The organizations that are able to implement this flexibility in their work structure have a higher employee satisfaction rate – leading to a higher potential growth, efficiency, and profitability rate that will positively impact the value of the agency.

People want to be set up for success so providing them with the right tools as well as a voice in the process is key.

Onboarding & Training

Agencies that invest in their employee’s growth and future are more likely to retain their talent than those that do not. There are several ways that agencies can achieve this. It may look different for each of your employees, so plan to be flexible in your approach.

One way to invest in your employees may include supporting them getting a professional designation.

There are many options available in our industry and this is a great way to demonstrate how valued they are and also provide them with a way to continuously grow their knowledge, confidence and skill set. The National Alliance for Insurance Education & Research provides several designation options including CIC (Certified Insurance Counselor). There are an estimated 31,500 CICs in the country. Those that complete this designation become part of an elite group of insurance professionals viewed as experts by their clients and peers. The National Alliance reports that agents with the CIC designation make 30% more than their counterparts, have a lower error rate, and are positioned to write larger accounts.

This is translated to higher revenue opportunity and efficiency levels for the agency which will improve their growth rate and profitability.

In many cases people want to be part of something that works well. Agencies that have a created a welloiled machine are positioned to provide this stability to their employees. This can be achieved with a strong onboarding process, a well-documented training program as part of that process, assigning a mentor, and investing in documenting the processes that will create success within your organization.

Providing this information in a format that is easily consumable and searchable so an employee can find and access the information easily is as important as creating and documenting the information. This will allow new and existing employees to find and access the information they need to be successful and efficient in their jobs. Training on your systems and processes should never stop and should be viewed as an ongoing and evolving task. As things change and evolve so should the process and training. Every employee should have a voice in this to ensure that new efficiencies are documented and shared with the entire staff to remain consistent throughout your organization.

Data & Technology In many cases the technology that exists inside agencies is being underutilized. Agencies that invest in ongoing training on their systems as well as in new technology are better positioned to provide an environment where their employees are better positioned to succeed. This is an area that many agencies avoid as technology options are vast, the process to choose the right tools can seem incredibly overwhelming and understanding how technology solutions integrate with each other is confusing.

Quite frankly technology is always evolving and changing so trying to implement too much at one time can be exhausting for your staff – especially if there are several stops and starts with technology.

It is important to be thoughtful in your approach to adopting technology by following a process which clearly defines the goals and objectives of the tool, setting clear expectations on the time it will take to implement and realize the expected results while involving the entire team in the process.

Expertise & Growth

Making the investment in any one of these areas is not enough. Simply by investing in technology, education, or data will not grow your agency – it must be implemented well in order to realize those results. It goes without saying that all of these suggestions require consistency and strong processes in order for the investment to translate into results for your agency and your employees.

Just like purchasing exercise equipment will not make you fit, the same principle applies here. For those agencies that make these types of investments and implement them well can expect to see lower turn-over rates, higher growth rates and higher profitability. All of these results lead to a higher value for their agency. These are the biggest factors that impact the strength and value of your agency. There is no better investment to be made inside an agency than in your people. > Carey Wallace, Business Consultant, AgencyFocus wisconsin INDEPENDENT AGENT |

AUGUST 2022 | 31

FINANCE

WHAT TO KNOW BEFORE BUYING OUT AN AGENCY PARTNER The time has come to go separate ways from your insurance agency partner. Dissolution of a partnership can become complicated and hostile but having an official buy-sell agreement in place will help reduce this stress. It is advisable for business partnerships to establish buyout plans from the start of their relationship. However, if you’re already a partner in an agency, the next best time is now.

The future buyout should be documented with a written buy-sell agreement at the start of the partnership. To start this process, you will want to find a few experts in their fields. These professionals will tailor your agreement for the best solution for you and your partner. Contact your attorney, accountant, banker, and valuation specialist before you start the buy/sell agreement with your agency partner. If you don’t have a preferred specialist in one of these fields, your banker can help you find one.

• Attorney: An attorney will help you draw up the buy- sell agreement document and inform you of the state laws regarding business buyouts.

• Accountant: An accountant will help you prepare the financial statements needed to help determine the value of the seller’s interest. They can also aid in tax considerations to structure and minimize taxes after the buy-sell.

• Banker: A banker will help provide the financing structure for the buy-sell. They can help manage your funds throughout the process. A banker can also provide options for financing the buyout with an acquisition loan.

• Valuation Specialist: The valuation specialist will create a fair market value statement for the agreement and make sure the buyout is a good long-term investment for both parties.

The terms of a buy-sell agreement may include the following: • Definitions - Define the terms used in the agreement.

• Issuance of shares – Indicate what must happen before shares are transferred.

• Restrictions on transfers – Be sure to state that any attempt to transfer shares not in accordance with the agreement will be void.

• Options to purchase upon the occurrence of triggering event – You will want to list and define 32 | AUGUST 2022 |

wisconsin INDEPENDENT AGENT

any triggering events that may prompt a transfer of shares.

• Mandatory purchases – Provide instances where shareholders have an option or obligation to purchase shares.

• Calls, puts, and other purchase rights – Include other options and rights to purchase shares.

• Purchase price – Indicate the value of shares given different circumstances.

• Closing and terms of payments for shares – Indicate when the closing will occur and how payment will be handled.

• Voting and governance – Define voting rights and resolution.

• Non-compete and confidentiality – Include the terms of the non-compete agreement and confidentiality agreement.

• Marital property interest of a shareholder’s spouse – Define the rights of a spouse in shares and his/her options to purchase and sell.

• S Corporation status – Indicate the terms if a corporation has elected to be taxed under subchapter S of I.R.C. Treasury Regulations.

• Remedies and Arbitration – List the results if there is a failure to agree to obligations presented.

• Miscellaneous – This may include termination and amendment of the agreement.

Creating a buy-sell agreement before the buyout occurs will offer a mutually beneficial solution for both sides.

This will make for a smooth transition when a buyout occurs and lessen the need for further mediation.

Curt Van Auken is a relationship manager for Security Financial Bank (SFB), a financial institution that specializes in lending to insurance agencies throughout the Midwest.

SFB has helped numerous insurance agents with their banking needs, including acquisitions, partner buyouts, building expansions, and refinancing projects. For more information, contact Curt at cvanauken@sfbank.com, call 715.930.7021 or visit www.sfbank.com.

> Curt Van Auken Relationship Manager, SFB

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COMMENTARY FROM COUNSEL

WHAT'S IN A NAME? WISCONSIN SUPREME COURT FORBIDS LEGAL NAME CHANGE FOR TRANSGENDER REGISTERED SEX OFFENDER If you read that headline and wondered what the insurance industry tag for this article is, wonder no more—there isn’t one. Taking a detour this week to give a short summary of a recent Wisconsin Supreme Court decision that caught quite a few headlines nationally because it is not only an interesting case, but also showcases some novel constitutional arguments.

Under Wisconsin law, individuals may petition the circuit court to change their legal name. However, Section 301.47(2)(a) places a limitation on this ability to petition, prohibiting sex offenders from doing so. Only July 7, 2022, the Wisconsin Supreme Court, in a case called In the interest of C.G. v. C.G. (C.G), affirmed the constitutionality of this prohibition of name changes for sex offenders.

In C.G., the petitioner was a transgender girl who was adjudicated delinquent (the equivalent of being convicted in adult court) for committing a sexual assault when she was 15 years old. At the time of the offense, the petitioner identified as male before later transitioning to female. As a part of this juvenile adjudication, the petitioner was required to register as a juvenile sex offender for 15 years. She filed a motion to stay this requirement, arguing violations of the First (freedom of speech) and Eighth (no cruel and unusual punishment) Amendments. On July 9, 2022, the Wisconsin Supreme Court affirmed the circuit court and court of appeals rulings to deny her motion, thereby requiring the petitioner to register as a sex offender.

In a 4-3 decision authored by Justice Rebecca Bradley, the Court denied her motion by reaching two major conclusions. The first conclusion was that sex offender registration is not cruel and unusual punishment in violation of the Eighth Amendment. The Court rejected the petitioner’s argument that sex offender registration is punishment, finding that the legislative intent of registration is to protect the public and assist law enforcement, not to punish the offender. Moreover, even if registration was punishment, the Court found that such punishment would not be cruel and unusual.

In so holding, the Court noted that there is no physical pain component to this punishment and all 50 states have some sort of sex offender registration and notification laws in effect.

The second conclusion was that requiring the petitioner to keep her legal name did not violate the petitioner’s First Amendment right to free speech. The petitioner presented two legal theories for why this was the case.

The first theory was that her right to express her gender identity is expressive conduct protected by the First Amendment. In rejecting this argument, the Court found that the act of presenting identification had never been considered expressive conduct in the history of law or society. The second theory was that by forcing her to register as a male, the State was compelling her speech by forcing her to disclose her transgender status. The court rejected this argument as well, finding that the act of producing one’s legal name is conduct subject to government regulation, not speech.

The dissent conceded that sex offender registration was not cruel and unusual punishment but disagreed with the majority’s conclusion that the First Amendment was not implicated. It drew an analogy to the petitioner’s situation with that of a person who changed their name for religious purposes. The dissent argued that in both circumstances, an individual is communicating fundamental aspects of their identity through their name. Moreover, it found that the petitioner was subject to an extreme burden to change her name, and law enforcement’s burden would be minimal since they would have both the petitioner’s names and could tie them to the same person.

This decision has received considerable attention from national publications, with the dissent claiming that this case “presents important and evolving issues for our society.” While it is clear the majority’s holding is limited to preventing name changes for sex offenders—without regard to gender status—it is uncertain how court decisions going forward will choose to rely on this case as precedent for future issues involving transgender people.

>J osh Johanningmeier IIAW General Counsel

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