Insurancejournal west 2014 04 07

WEST California Harbors Plan for Tsunamis Arizona Bill on Comp Dropped Commissioner’s Ridesharing View

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WEST

Inside This Issue

On The Cover

Special Report:

Young Agents Survey

April 7, 2014 • Vol. 92 No. 7 • West

W1

W4

26

36

NATIONAL COVERAGE

WEST COVERAGE

IDEA EXCHANGE

10 Shareholders Sue in 94%

of M&As; 75% Settle Before

Closing

W1 Future Tsunamis Planned

for by California Harbors

34 E&O Insights: Pearsall on Buying

or Selling an Agency

W1 California Toy Company Settles

Beastie Boys Suit

36 How to Reach the Next Generation

of Insurance Talent

W1 Backers Drop Arizona Legislation

on Workers’ Comp Benefits

38 2014 Education & Training

Directory

W1 California Legislator Calls

for Investigation into Worker

Safety at LAX

48 The Competitive Advantage:

Burand on Hiring That First Good

Producer

W4 California Commissioner Gives

‘App On, No Match’ Ridesharing

View

50 Closing Quote: Diversity and Youth

- Challenge and Opportunity

10 Top 5 Riskiest States for Employee

Lawsuits 14 P/C Reinsurance Market Softer

Due to Alternative Capital: Execs 16 Spotlight: Drug & Alcohol

Rehabilitation 20 Agency M&A in 2013 Reverted

to Norm After Busy 2012 22 Competition Softens Rate Hikes

for Architects, Engineers in 2014:

Survey 24 10 Things to Know About

Environmental Liability 26 Closer Look: Environmental

Exposure: Flood Risk in the Oil

& Gas Industry

DEPARTMENTS 11 W2 12 12 25

Business Moves People Declarations Figures MyNewMarkets

28 Special Report: Young Agents

Survey

4 | INSURANCE JOURNAL-WEST April 7, 2014

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NATIONAL COVERAGE

Opening Note What Young Agents ‘Like’ Most

I

nsurance may not be at the top of the list for college graduates when it comes to career choices, but the young professionals that do take a stab at it have some good things to say.

This special issue of Insurance Journal highlights the results from the annual Young Agents Survey. (see page 28 for the full report). Below is a list of “What Young Agents Like Most” about their career as an independent agent. (For “What Young Agents Like Least,” see page 31.)

What Young Agents Like Most • Flexible schedule; opportunity to build relationships.

• Every day I learn something new. I enjoy learning about and marketing unique risks.

• Ability to set and achieve your own goals.

• Helping people/being in control of my book of business.

• Being able to build relationships with clients that last.

• There is no ceiling or restrictions on how much money I can make, what industries I can target, which carriers I can access or which geographical territories I can operate in.

• The aging workforce provides an incredible opportunity for young agents to capture market share.

• Freedom, not just tied to a desk all the time as a producer.

• You get to deal with many different people, and you are always learning.

• Being able to help people through some of the worst situations they will have to deal with in their life.

• Analyzing a risk’s exposure and communicating where we could help, not only on the insurance, but in overall risk management.

• As a broker, maintaining relationships both with the client and carrier.

• Helping people, making sure they are protected and providing them options.

• Being outside of the office, meeting people and building relationships.

• The ability to specialize in industries that I am interested in and passionate about. I like that the compensation is directly tied to production.

• The opportunity to bring my children into my business to take over when I am ready to retire.

• Helping people find the right coverage at the right price.

• Watching the insurance policies come to life. You spend all day looking at numbers, addresses, values, and locations on the map to judge flood and wind exposures, then when you go see a client and you have a 150,000-square-foot ware- house that employs 500 people, it makes the long office hours far more significant than just pushing papers.

• The relationships I have built and the opportunity to be involved with and give back to the community in which I live, work and play.

• Every day is different, every account is different, and I am challenged Andrea Wells every day.

Editor-in-Chief

6 | INSURANCE JOURNAL-NATIONAL April 7, 2014

EDITORIAL Editor-in-Chief Andrea Wells | awells@insurancejournal.com V.P. Content Andrew Simpson | asimpson@insurancejournal.com East Editor Young Ha | yha@insurancejournal.com Southeast Editor Michael Adams | madams@insurancejournal.com South Central Editor/Midwest Editor Stephanie K. Jones | sjones@insurancejournal.com West Editor Don Jergler | djergler@insurancejournal.com International Editor Charles E. Boyle | cboyle@insurancejournal.com Senior Editor Susanne Sclafane | ssclafane@insurancejournal.com ClaimsJournal.com Editor Denise Johnson | djohnson@claimsjournal.com MyNewMarkets.com Associate Editor Amy O’Connor | aoconnor@mynewmarkets.com Columnists Chris Burand, Curtis Pearsall Contributing Writers Quincy Branch, Kenneth Cornell, David Coons, Bruce Smith SALES V.P. Sales & Marketing Julie Tinney (800) 897-9965 x148 | jtinney@insurancejournal.com West Dena Kaplan (800) 897-9965 x115 | dkaplan@insurancejournal.com South Central Mindy Trammell (800) 897-9965 x149 | mtrammell@insurancejournal.com Midwest Lauren Knapp (800) 897-9965 x161 | lknapp@insurancejournal.com Southeast Howard Simkin (800) 897-9965 x162 | hsimkin@insurancejournal.com East Dave Molchan (800) 897-9965 x145 | dmolchan@insurancejournal.com New Markets Sales Manager Kristine Honey | khoney@insurancejournal.com Classifieds, Jobs, Agencies Wanted/For Sale Ly Nguyen (800) 897-9965 x125 | lnguyen@insurancejournal.com MARKETING/NEW MEDIA Marketing Administrator Gayle Wells | gwells@insurancejournal.com Advertising Coordinator Erin Burns (619) 584-1100 x120 | eburns@insurancejournal.com New Media Producer Bobbie Dodge | bdodge@insurancejournal.com Videographer/Editor Matt Tolk | mtolk@insurancejournal.com DESIGN/WEB V.P. of Design Guy Boccia | gboccia@insurancejournal.com V.P of Technology Joshua Carlson | jcarlson@insurancejournal.com Audience Development Elizabeth Duffy | eduffy@wellsmedia.com Marketing Director Derence Walk | dwalk@insurancejournal.com Web Developer Jeff Cardrant | jcardrant@insurancejournal.com Web Developer Chris Thompson | cthompson@insurancejournal.com IJ ACADEMY OF INSURANCE Director of Education Christopher J. Boggs | cboggs@ijacademy.com Online Training Coordinator Barbara Whiffen | bwhiffen@ijacademy.com ADMINISTRATION Chairman Mark Wells Chief Executive Officer Mitch Dunford Chief Financial Officer Mark Wooster | mwooster@wellsmedia.com

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insurancejournal.com/subscribe Insurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semi-monthly by Wells Media Group, Inc., 3570 Camino del Rio North, Suite 200, San Diego, CA 92108-1747. Periodicals Postage Paid at San Diego, CA and at additional mailing offices. SUBSCRIPTION RATES: $7.95 per copy, $12.95 per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this publication is derived from sources believed reliable and is subject to reasonable care in preparation and editing, it is not intended to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult competent professionals for application to their particular situation.

Copyright 2014 Wells Media Group, Inc. All Rights Reserved. Content may not be photocopied, reproduced or redistributed without written permission. Insurance Journal is a publication of Wells Media Group, Inc. POSTMASTER: Send change of address form to Insurance Journal, Circulation Department, PO Box 708, Northbrook, IL 60065-0708 ARTICLE REPRINTS: For reprints of articles in this issue, contact Rhonda Brown at 1-866-879-9144 ext. 194 or rhondab@fosterprinting.com.

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NATIONAL COVERAGE

News & Markets Shareholders Sue in 94 Percent of M&As; 75 Percent Settle Before Closing: Cornerstone Research

S

hareholders challenged more than 94 percent of U.S. merger and acquisition deals valued over $100 million in 2013, according to a new M&A report by Cornerstone Research.

Deals worth $100 million or more attracted an average of five lawsuits, with the Dell Inc. buyout spawning 26 filings — the most of any M&A deal in 2013, says the report, “Shareholder Litigation Involving Mergers and Acquisitions.”

Litigation was resolved before deal closing in 75 percent of the deals, according to the Menlo Park, Calif. research firm. The great majority of lawsuits settled.

This activity continues a four-year trend that began in 2010, with shareholders challenging 90 percent of deals in that year and 93 percent in 2011 and 2012.

“As in prior years, litigation for the majority of 2013 M&A deals was resolved before the deal was closed,” said Adel Turki, a senior vice president of Cornerstone Research and head of the firm’s finance practice. “None of the lawsuits in our data went to trial, and all judgments, including summary judgments or judgments on the pleadings, were granted to the defendants.”

Other findings include: • Plaintiff attorneys filed 612 lawsuits challenging mergers and acquisitions in 2013.

• The “race to file” appears to have subsided over the last five years. In 2013, the first lawsuit was filed an average of 12 days after the deal

announcement compared with 9 days in 2012 and 7 days in 2009.

• Sixty-two percent of deal litigation was multi-jurisdictional, although the percentage of deals litigated in three or more jurisdictions declined by half over the last two years.

Top 5 Riskiest States for Employee Lawsuits: Hiscox

F

our states — California, Illinois, Alabama and Mississippi — along with the District of Columbia, are the top five riskiest places in the country for employee lawsuits. Businesses in these states and jurisdictions face a substantially higher risk of being sued by their employees compared to the national average, according to study of employment practices

litigation (EPL) data by specialist insurer Hiscox.

According to the study, on average, a U.S.-based business with at least 10 employees has a 12.5 percent chance of having an employment liability charge filed against it. However, businesses in several states face a much higher level of exposure to litigation, according to the research.

California has the most frequent inci10 | INSURANCE JOURNAL-NATIONAL April 7, 2014

dences of EPL charges in the country, with a 42 percent higher chance of being sued by an employee for establishments with at least 10 employees over the national average.

Other states and jurisdictions where employers are at a high risk of employee suits include the District of Columbia (32 percent above the national average), Illinois (26 percent), Alabama (25 percent), Mississippi (19 percent), Arizona (19 percent) and Georgia (18 percent).

State laws can have a significant impact on risk, said Bert Spunberg, senior vice president and practice leader for Executive Risk at Hiscox.

For example, the employee-friendly nature of California law in the area of disability discrimination may contribute to the high charge frequency in the state. Discrimination cases filed at the state level in California are brought

under the Fair Employment and Housing Act. FEHA applies to a broader swath of businesses, covering any company with five employees, versus a 15-employee minimum for cases brought under federal law as outlined in Title VII of the Civil Rights Act. Not only are employment lawsuits more likely in those states, but the likelihood of catastrophic verdicts is also significantly higher, according to the report.

“Unlike their federal counterparts, where compensatory and punitive damages combined are capped at $300,000.00, most state employment statutes impose no damages ceilings,” said Mark Ogden, a managing partner of Littler Mendelson, a large California-based employment and labor law firm with 55 offices globally.

“Consequently, employers in high-risk states must ensure that their workforces are adequately trained regarding workplace discrimination, harassment and retaliation and that policies forbidding such conduct are strictly enforced.” www.insurancejournal.com

WEST COVERAGE

News & Markets Future Tsunamis Planned for

by California Harbors

California Toy Company Settles Beastie Boys Suit

F

ive California harbors are preparing for future tsunamis under a new state project that arms them with maps that identify potential problem areas.

Officials with the California Geological Survey said the participating harbors include San Diego, Los Angeles/Long Beach, Ventura, Santa Cruz and Crescent City. There are also plans to expand the mapping to the more than 100 marinas and harbors.

The maps take into account tsunamis of different strengths and sources, allowing harbor managers to draw up emergency plans to get vessels to safety.

March 27 was the 50th anniversary of the 1964 Alaska earthquake.

A magnitude-9.2 quake in Alaska triggered tsunami waves that killed 12 people in Northern California.

A

Copyright 2014 Associated Press.

Copyright 2014 Associated Press.

Backers Drop Arizona Legislation on Workers’ Comp Benefits

California Legislator Calls for Investigation into Worker Safety At LAX

B

C

usiness-backed legislation to prohibit workers from filing lawsuits alleging they were unfairly denied workers’ compensation benefits for on-the-job injuries is going nowhere in the Arizona Legislature.

Supporters of the legislation decided to shelve it because of strong opposition from plaintiffs’ lawyers, the firefighters union and others.

Republican Rep. Karen Fann of Prescott said she will hold meetings before the 2015 legislative session to try to find a compromise.

The state Industrial Commission decides workers’ compensation claims, but a 1990s Arizona Supreme Court ruling gave workers the right to sue in court for damages over claims that are denied or unnecessarily delayed in bad faith.

The proposed legislation would have given the Industrial Commission exclusive jurisdiction over those cases.

Copyright 2014 Associated Press. www.insurancejournal.com

California toy company has settled its lawsuit against the Beastie Boys over its parody of their song “Girls” in a promotional video that went viral.

An agreement to dismiss the claim was filed in late March in U.S. District Court. No details of the settlement were released.

Oakland-based Goldieblox filed suit in November, seeking to preempt any possible claims of copyright infringement over the repurposed song.

The video, which shows young girls singing about science and engineering, was viewed millions of times before it was removed from YouTube.

The Beastie Boys countersued Goldieblox in December. The newspaper says it was not immediately clear if the settlement would have any effect on that claim.

The hip-hop group has a blanket ban on using their songs in advertisements.

alifornia state Sen. Ted Lieu, D-Torrance, has called for a state investigation into possibly unsafe working conditions at Los Angeles International Airport.

Lieu’s call comes following the death three weeks ago of a 51-yearold baggage employee Cesar Augusto Valenzuela with contractor Menzies Aviation. According to reports, workers for Menzies Aviation have been injured in several incidents in recent years, and a Feb. 25 story by the Los Angeles Times cited Cal-OSHA saying Menzies had been issued multiple citations last June totaling nearly $95,000 in proposed penalties for safety violations.

Lieu and other officials said they are concerned about possible shortcuts and cost-cutting steps that may have contributed toward airport work becoming unnecessarily dangerous.

“The fact that this isn’t the first safety incident involving Menzies Aviation shows that there may be a dangerous pattern developing,” Lieu said. “ Valenzuela died in a single-vehicle accident at the busy airport, which is part of Lieu’s senate district.

April 7, 2014 INSURANCE JOURNAL-WEST | W1

WEST COVERAGE

People Amy Callahan

Brian Cassidy

LP Insurance Services Inc. named Amy Callahan to the Northern California sales team.

She will be responsible for supporting clients in their insurance efforts, including property/casualty and risk management.

Callahan, formerly an agent with State Farm Insurance, has more than three years of insurance experience throughout the region.

Reno, Nev.-based LP Insurance Services also has offices in Elko and Las Vegas, as well as California offices in Sacramento and Truckee.

Brian Cassidy has joined Flanigan-Leavitt Insurance Agency in Reno, Nev., and will specialize in commercial insurance and employee benefits.

Cassidy has more than 12 years of experience in insurance with a focus on the manufacturing, ski resort, golf course/resort, aerospace, agriculture, fruit production and trucking industries.

Prior to Flanigan-Leavitt, Cassidy worked in the employee benefits industry in Los Angeles.

Flanigan-Leavitt Insurance Agency is part of the Leavitt Group.

Oakland, Calif.-based Dealey, Renton & Associates Insurance Brokers has hired professional liability and risk management specialist Michael Olson.

Olson is charged with driving a variety of growth initiatives at DRA. He has worked with a number of architecture, engineering and environmental firms in the Pacific Northwest, and has held various positions at USI Companies.

DRA specializes in professional liability insurance and risk management for architects, engineers, environmental consultants, lawyers, doctors, agents and brokers and other professionals.

Irvine, Calif.-based Burnham Benefits Insurance Services Inc. named Tina Brink vice president and Nicole Stratton as account executive in Burnham’s recently opened Sacramento office.

Brink will bring new business to the Sacramento office and maintain a partnership with clients. Brink has more than 25 years of experience and has held executive roles with several insurance firms.

Stratton has more than 15 years of experience in the industry. Her background includes working with both fully insured and self-funded clients for national brokerage firms.

Burnham Benefits has offices in Irvine, the San Francisco Bay Area, San Luis Obispo, Los Angeles, Santa

W2 | INSURANCE JOURNAL-WEST April 7, 2014

Barbara and Sacramento.

Pasadena, Calif.-based Pioneer Programs Insurance Solutions LLC has named Robert B. Young senior vice president.

Young’s role will include underwriting and marketing of Pioneer’s products nationwide and looking for niche program opportunities.

Young has 25 years of experience in the insurance industry with carriers, managing general agents, large retailers and wholesaler brokers.

Pioneer Programs underwrites specific nationwide programs.

Los Angeles, Calif.-based Cooperative of American Physicians Inc. named Catherine Miller as risk management and patient safety specialist for CAPAssurance.

Miller will provide risk management services specifically to hospitals.

Miller was employed with CAP as a risk management and patient safety specialist for four years before leaving in 2006. Prior to her return, Miller worked as a risk manager and patient safety officer at Kaiser Permanente.

CAP provides medical professional liability for hospitals, medical facilities and large physician groups and has offices in L.A., San Diego, Orange County, Sacramento and Palo Alto.

Los Angeles, Calif.-based Velocify has named Stuart Ganis as director of insurance vertical.

Ganis will lead the company’s initiatives in the insurance industry and work with the product development team.

Ganis has been in the insurance industry more than 24 years. Prior to Velocify, he launched a consultant practice in 2006 to provide sales and marketing to insurance agencies. He also co-founded and served as president of Chief Insurance Agency Inc. Velocify is a provider of cloud-based intelligent sales software designed for high-velocity sales environments.

Newport Beach, Calif.-based Mariners General Insurance Group has expanded into Northern California with the addition of Carolyn Pounds, based in Alameda.

Pounds has more than 20 years of experience in the marine insurance.

Mariners General Insurance provides insurance for boats, yachts and marine businesses.

The firm has a second California office in San Diego, and also has a presence in Florida and in the Pacific Northwest. www.insurancejournal.com

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WEST COVERAGE

News & Markets California Commissioner Gives ‘App On, No Match’ Ridesharing View

C

alifornia Commissioner Dave Jones made his initial recommendations to the California Public Utilities Commission in late March, days after the California Department of Insurance’s investigatory hearing relating to insurance issues and transportation network companies.

‘A big point of contention has been over the period when a TNC driver has an app on, but isn’t on the way to pick up a fare or doesn’t have a passenger.’

CPUC oversees TNCs in California.

App-based rideshare operators and the insurance industry squared off at the public hearing, which included testimony from TNC representatives, the insurance

industry and other stakeholders.

Representatives from Uber, Lyft, Sidecar and other TNCs made an argument against more regulation of their emerging industry.

TNCs have become a hot topic, in part thanks to a perceived gap in insurance coverage, and an incident during which a TNC driver under contract with Uber struck and killed 6-year-old Sofia Liu. Since then several states and local governments have been working on rules and regulations to oversee these emerging TNCs. A big point of contention has been over the period when a TNC driver has an app on, but isn’t on the way to pick up a fare or doesn’t have a passenger. The

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insurance industry has argued personal insurance shouldn’t be left to pay for what is considered a livery service and therefore an exclusion in most personal auto policies.

Jones’ initial recommendations include: • The CPUC should refine the definition of “when providing TNC services” to cover the “app on, no match” period and require the $1 million commercial liability policy to apply during this period. There appears to be a significant insurance gap for drivers, pedestrians and third parties that are involved in an accident with TNC-related vehicles during this period.

• TNCs should also be required to carry a minimum of $1 million uninsured/underinsured motorist coverage and a minimum of $50,000/$100,000 comprehensive and collision coverage, if the driver has purchased this coverage on his or her own policy. Drivers who use their personal vehicles for a TNC purpose run a strong possibility of having claims denied by their personal automobile insurance company because the driver used the car for a commercial or livery purpose.

The department will continue to review the testimony and other documents from the hearing and may have additional recommendations in the future. www.insurancejournal.com

NATIONAL COVERAGE

Business Moves Arthur J. Gallagher Arthur J. Gallagher & Co. has acquired Spataro Insurance Agency Inc. of Burnt Hills, N.Y. Founded in 1932, Spataro Insurance Agency is a retail insurance broker providing property/casualty, risk management and personal lines insurance products and services for commercial and individual clients throughout the Northeast. The agency specializes in coverage for the manufacturing, technology, construction, restaurant and transportation industries, as well as for nonprofits, schools and municipalities.

Arthur J. Gallagher also announced its purchase of L&R Benefits LLC of Windsor, Conn. L&R Benefits provides employee benefit consultation, management and brokerage services for clients’ active and retired employees. The firm focuses on employee benefit compliance, design, financing, administration and communications.

BB&T, Woodbury & Co. BB&T Insurance Services has acquired Woodbury & Co. of Wilmington, N.C., and Myrtle Beach, S.C. Terms were not disclosed.

Woodbury & Co. sells commercial property/casualty; employee benefits; individual life and health; personal lines; and professional liability throughout the Carolinas.

The agency has more than 50 employees.

Woodbury & Co. was founded in 1932 by Louie E. Woodbury Jr. President Eugene Woodbury and Commercial Lines Manager Carolyn Finley will join the BB&T Insurance Services management team.

BB&T Insurance will combine its existing agencies in Wilmington and Myrtle Beach with Woodbury & Co. Raleigh, N.C.-based BB&T Insurance Holdings, a subsidiary of BB&T Corp., operates more than 100 insurance agencies through subsidiaries BB&T Insurance Services, BB&T Insurance Services of California, and McGriff, Seibels & Williams.

Higginbotham, Edgmon Insurance Agency Independent insurance brokers Higginbotham, based in Ft. Worth, Texas, www.insurancejournal.com

and Edgmon Insurance Agency, headquartered in Odessa, Texas, have merged operations.

Edgmon Insurance is a family-owned agency going on its third generation. Founded in 1986 by Pauline Appel, the agency was purchased by her son Tim Edgmon in 1996 and began operating under its current name providing commercial and personal lines of property/ casualty insurance.

Tim Edgmon will continue managing the firm as Edgmon Insurance Agency from the location it has occupied at 4800 E. University Blvd for four years.

Higginbotham has more than 20 locations in Texas.

Aronson, Shuffain Insurance Aronson Insurance, an independent insurance agency in Needham, Mass., has acquired Shuffain Insurance Agency of Sharon, Mass.

Aronson Insurance is an independent agency owned and operated by the Aronson family since 1919. The agency provides personal and business insurance. With a staff of more than 20 insurance professionals, Aronson Insurance represents more than 15 insurance companies and services more than 5,000 clients.

McGowan, Breed’s Hill The McGowan Cos., based in Fairview Park, Ohio, has purchased the assets of Breed’s Hill Insurance Agency in Charlestown, Mass. Breed’s Hill will operate under the McGowan Risk Specialists (MRS) brand.

Established in 1996, Breed’s Hill is a managing general agency serving the New England habitational market and fits well with McGowan’s growth strategy in the real estate segment.

Hub International Midwest, Corporate Benefit Consultants Insurance brokerage Hub International Ltd. announced that its subsidiary, Hub International Midwest (Hub Midwest), has

acquired Corporate Benefit Consultants Inc., a Des Plaines, Ill.-based employee benefits insurance brokerage firm.

The CBC team will continue to operate from its Des Plaines office. CBC partners, Ted A. Reese, James M. Cornelius and Michael A. Traina and their team will be joining Hub Midwest.

Hub International is headquartered in Chicago.

Biglari Holdings, First Guard Insurance Biglari Holdings in San Antonio, Texas, has acquired Venice, Florida-based First Guard Insurance Co. and its affiliate, 1st Guard Corp. The terms of the transaction were not disclosed.

First Guard Insurance is a direct underwriter of commercial trucking insurance selling physical damage and non-trucking liability insurance to truckers. First Guard will continue to be operated by its current management team led by CEO Edmund B. Campbell III in Venice.

Biglari Holdings Inc. subsidiaries are engaged in diverse business activities, including media, property/casualty insurance, and restaurants. Biglari’s subsidiary companies include Steak ‘n Shake Operations Inc. and Biglari Real Estate Development Corp.

April 7, 2014 INSURANCE JOURNAL-NATIONAL | 11

NATIONAL COVERAGE

FIGURES

$20 Million

The amount of fine AXA Equitable has agreed to pay the N.Y. Department of Financial Services (DFS) for violating insurance law, according to DFS’s announcement on March 17. Regulators said AXA made changes to certain variable annuity products that limited potential returns for existing customers without providing adequate notice to DFS.

DECLARATIONS

$5 Million The worth of staged traffic accident schemes to which a Dallas-area man has pled guilty.

Leroy Nelson of DeSoto, Texas, pleaded guilty to mail fraud and to engaging in illegal monetary transactions related to fraud schemes that have been going on since 2005.

He faces up to 30 years in prison.

29 The number of people who died on the job in Oregon during 2013. That’s according to statistics released in late March by the Department of Consumer and Business Services, which reported a slight decrease from 2012’s figure of 30 deaths.

Consumer Recoveries

“We are constantly working to streamline regulations, cut red tape and expand the banking and insurance markets, but when our licensees violate our laws and regulations, we take action and hold them accountable.”

— N.J. Department of Banking and Insurance Commissioner Ken Kobylowski on recoveries for consumers and health care providers. His department recovered more than $18 million from insurers in 2013.

7

Going Up?

“I heard a ‘Boom!’ and when I got off the train, the train was all the way up the escalator.”

— Denise Adams, a passenger on an eight-car Chicago commuter train that plowed across a platform and scaled an escalator at the underground station derailment at O’Hare International Airport on March 24, injuring more than 30 people on board.

The amount in legal fees and damages a federal judge ordered State Farm Fire and Casualty Co. to pay in a whistleblower lawsuit after Hurricane Katrina. A jury found the insurer avoided covering a policyholder’s wind losses by blaming damage on storm surge, which is covered by federal flood insurance. The plaintiffs, sisters Cori and Kerri Rigsby, worked for a State Farm contractor to provide damage assessments after the 2005 hurricane. They alleged that documents showed the insurer defrauded policyholders by manipulating engineers’ reports so claims could be denied. State Farm denied any wrongdoing.

12 | INSURANCE JOURNAL-NATIONAL April 7, 2014

“Not surprisingly, transnational organized crime has tapped into this new criminal frontier.”

— A report by California Attorney General Kamala Harris says international criminal enterprises are increasingly focusing on California because of its wealth and innovation.

The number of people arrested in northwestern Indiana in connection with the theft of $2.8 million in cars, electronics, pharmaceuticals and other items from trains in the Chicago area. Authorities are reportedly pursuing dozens of others for stealing from train cars temporarily parked in rail yards in northwestern Indiana and in Bedford Park, Ill., southwest of Chicago.

$3 Million

Cyber, The Final Frontier

A Great Way

“These vehicles are a great way for the NAIC to highlight the benefits of statebased regulation and would show a true commitment to consumer education and assistance.”

— Oklahoma Insurance Commissioner John D. Doak intends to ask the National Association of Insurance Commissioners (NAIC) to invest in Shared Emergency Response Vehicles (SERVEs) for education and disaster response, such as those used by insurance companies.

Cleaning Up

“The state’s goal is to clean up both the Dan River and to protect public health and the environment at the other Duke Energy facilities around the state, and we are pleased to announce that the EPA will join us as we address these important issues.”

— North Carolina Gov. Pat McCrory

on the state’s intention to scuttle a proposed settlement that would have allowed Duke to resolve environmental violations by paying a $99,000 fine with no requirement that the $50 billion company clean up its pollution.

www.insurancejournal.com

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NATIONAL COVERAGE

News & Markets P/C Reinsurance Market Softer Due to Alternative Capital: Execs

A

new survey from Towers Watson confirms that more than half (55 percent) of property/casualty insurance chief financial officers believe the property reinsurance market is softer than the primary market, while about one-third (34 percent) deem the same is true for casualty business.

“CFOs attribute this softness primarily to the significant growth of insurance-linked securities [ILS] and other alternative forms of reinsurance capital,” Towers Watson said.

The survey examined trends in the P/C reinsurance market, as well as drivers and consequences of market conditions. While nearly all respondents (97 percent) utilize traditional reinsurance, the survey found that most insurers are not using alternative forms of capital to protect their business. Fifty-nine percent are either purchasing reinsurance through a collateralized reinsurer or are likely to consider such a purchase. Twentyseven percent are using, or look favorably on the use of both insurance-linked securities, such as catastrophe bonds, and hedge fundowned reinsurers.

“The opportunities in the risk transfer market are just starting to be realized,” said Stuart Hayes, senior consultant at Towers Watson. “Many fresh sources of capital are seeking investments that are uncorrelated to their existing investment holdings. With risk transfer arrangements continuing to evolve, we anticipate P/C insurers hasten-

14 | INSURANCE JOURNAL-NATIONAL April 7, 2014

ing their participation in various structures across the risk transfer spectrum, thus complementing their traditional reinsurance programs.”

Alternative Capital The survey also assessed the impact alternative capital is having on the reinsurance market, as well as the advantages and disadvantages in using alternative reinsurance vehicles. Ninety percent of respondents indicated that they have seen or expect to see decreasing prices due to alternative forms of reinsurance. Eighty-eight percent said the lower cost of capital afforded by alternative reinsurance options is their top benefit. When focusing on the limitations of alternative vehicles, 69 percent cited complexity of the contract or deal structure, and 62 percent named ambiguity related to contract triggers.

Towers Watson indicated that despite the threat of overcapacity in a softening market, less than a quarter believe there is a need for consolidation among reinsurance companies (21 percent) or that consolidation will take place in the next two years (24 percent). However, 52 percent feel that prolonged soft market conditions could drive reinsurance market consolidation in the future, while competing alternative capital sources were cited by 48 percent as possibly having the same effect.

“Reinsurers need to be aware of the near-term realities of a relatively soft reinsurance market and the longer-term potential of the alternative risk transfer market,” said Matthew Ball, director at Towers Watson.

“Given the increase in reinsurance and alternative capital supply, reinsurers are faced with a property catastrophe

market that is likely to soften unless there are major catastrophic events with very large losses. Reinsurers may face a classic economic example of reduced demand and increased supply that drives prices lower.”

Enterprise Risk Management More than three-quarters of respondents revealed that their enterprise risk management (ERM) processes haven’t changed reinsurance purchasing across various structures, the survey found. The exception was catastrophe reinsurance, where 31 percent said ERM prompted them to buy significantly or somewhat more coverage.

According to Hayes, this purchasing trend could change: “ERM programs are becoming more sophisticated, helping insurers gain an even better understanding of previously hidden risks. The resulting analyses should change reinsurance purchasing decisions.”

Towers Watson noted that forthcoming regulatory and accounting changes won’t likely change insurers’ current ceded reinsurance structures. Only 10 percent indicated they’re likely to make changes that accommodate the new requirements, such as the Own Risk and Solvency Assessment regulations, International Financial Reporting Standards, and proposals issued by the International Accounting Standards Board and the U.S. Financial Accounting Standards Board.

But more insurers anticipate increased industry use of reinsurance as a result of pending regulatory and accounting changes. Nearly half (48 percent) expect the use of catastrophe reinsurance, aggregate loss covers (38 percent) and quota share structures (31 percent) to increase. Less than 15 percent foresee decreased use of aggregate loss covers and aggregate risk transfer structures.

Hayes added, “Once these pending changes take effect and their impact on capital requirements are better understood, more significant changes in reinsurance purchasing decisions might occur.” www.insurancejournal.com

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SPOTLIGHT

Drug & Alcohol Rehabilitation Healthcare Reform Brings Expansion to Drug & Alcohol Treatment Industry

By Andrea Wells

J

anuary 1 marked the beginning of an expansion of healthcare coverage for drug and alcohol addiction treatment under the Affordable Care Act (ACA). This expansion is leading to a growth in the rehabilitation facilities market but what that growth looks like has yet to be determined, according to one industry expert.

“Although the recession negatively affected industry revenue and wages, rehabilitation clinics have largely recovered, despite a slight dip in 2012 resulting from a drop in federal funding of Medicare and Medicaid, due to a rise in premiums,” according to a recent report by IBISWorld titled “Drug & Alcohol Rehabilitation Clinics in the U.S.: Market Research Report.” In addition to the improving economic environment, the ACA’s expansion of private and government coverage of drug and alcohol rehabilitation services would help bolster demand in this industry segment, which should boost revenues during the five years to 2019, the report predicts.

Employment of substance abuse and behavioral disorder counselors is also projected to grow by 31 percent from 2012 to 2022, much faster than the average for all occupations, according to the Bureau of Labor Statistics. The forecasted growth is good news for insurance experts specializing in this industry.

Program administrator Irwin Siegel Agency Inc., based in Rockhill, N.Y., has seen its specialty book of business for behavioral health and addiction treatment facilities grow.

“We are seeing the book for this segment grow very nicely,” says Tiffany VanEtten, behavioral health underwriting specialist for Irwin Siegel.

VanEtten says while some states have started to see more funding to support nonprofit addiction rehabilitation treatment facilities, overall the segment — both non16 | INSURANCE JOURNAL-NATIONAL April 7, 2014

profit and for-profit facilities — is experiencing growth nationwide.

In VanEtten’s view, while state and federal funding boosts are helping to grow this segment, there are other factors contributing to its growth as well. Everything from media coverage over the growing need of addiction treatment to school shootings to the expansion of healthcare from the ACA have contributed to the growth.

Irwin Siegel has been writing insurance for social service providers for more than 40 years.

“Our behavioral health and addiction treatment segment is currently written with ACE although we have been doing this segment in addition to our other segments for 40-plus years. Behavioral health and addiction treatment (BHAT) segment came a couple years after our developmental disabilities and social services,” she says.

ACE has served as the carrier on the program since 2008. The average premium size on an Irwin Siegel BHAT account ranges from $75,000 to $150,000 but VanEtten says they will write facilities as small as $10,000 in premium, or as large as upwards of $1 million in premium.

The program includes a package policy but offers ancillary products as well to fill in any gaps for property/casualty coverages.

Those may include general liability, professional lines, crime coverage, sexual abuse coverage as well as auto coverage.

“We’ve had very good success overall (in losses),” she adds.

Mixed Bag While many in the industry anticipate a surge in individuals seeking drug and alcohol rehabilitation treatment services thanks to newfound insurance coverage afforded by the ACA rules,

others say it’s too early to tell.

“It’s a mixed bag depending on where you are in the country,” says Brad Storey, assistant vice president of risk management for Irwin Siegel. There’s a lot of politics involved as well, he says, especially in states like Louisiana which at this point has not agreed to Medicaid expansion.

“To be very honest, it’s way too early to tell what the true impact of the ACA will be on the market,” Storey says. In the next two to three years the picture will get far clearer as implementation benchmarks of the ACA begin to take shape, he says.

“Just because someone has insurance doesn’t mean they are insured for everything,” he says. While it may be better to have some coverage for addiction treatment services than nothing at all, it’s not yet clear how comprehensive the coverage will be for such services.

Even with a projected 31 percent employment growth rate for substance abuse and behavioral disorder counselors in the coming years, some question whether the industry will be ready to handle the forecasted surge in patient care for drug and alcohol treatment. According to the National Association of Alcoholism and Drug Abuse Counselors, between three million to five million people who have a diagnostic addiccontinued on page 18

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SPOTLIGHT

Drug & Alcohol Rehabilitation continued from page 16 tion disorder warranting treatment will gain coverage through healthcare reform.

“If all of the affected three million to five million people who are going to gain coverage through the ACA all go to seek treatment, yeah, we’ll have a little bit of a problem in the industry,” Storey says.

“However, just because somebody now has insurance doesn’t mean that they are going to seek treatment. That’s where it starts to get muddy.”

Storey doesn’t see a “run on the bank” mentality where millions of people suddenly seek treatment, but he does expect to see continued growth as coverage becomes available and more mainstream.

Emerging Risks One area where drug and alcohol rehab facilities will be increasingly at-risk under the ACA is cyber-related exposures.

“Now more than ever organizations have

1 18 |EMCINS003.indd INSURANCE JOURNAL-NATIONAL April 7, 2014

All but four states (New Mexico, to be far more technical and that brings Alabama, Kentucky and South Dakota) have exposures that are not traditional to human laws requiring agencies to notify in the sources,” Storey says. event of a breach, Martin says.

Cyber liability is one coverage area that “New Mexico has a bill in the house and many organizations in this segment do not will soon have laws for notification,” she understand the need. says. Each state has its own data breach “We’ve seen a lot more cyber policies notification law, and the selling but not nearly Employment of substance requirements vary signifienough to where it should be,” he says. abuse and behavioral cantly state by state.

“One of the new disorder counselors is “That means if you have a breach you could potenrequirements with projected to grow by tially be required to notify the ACA was the 31 percent from 2012 everyone that could be introduction of affected, which could be electronic health to 2022. very costly.” records,” says Dawn That’s why Irwin Siegel recommends Martin, assistant vice president of underthat facilities purchase stand-alone cyber writing at Irwin Siegel. “With steady growth liability policies where much higher limits of more people coming into the marketof coverage are offered. The purchase rate place under ACA there’s more and more is still pretty low, but it is starting to catch personal health information held online on, Martin says. where traditionally it was paperwork.”

3/6/14 5:41 PM www.insurancejournal.com

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NATIONAL COVERAGE

News & Markets Agency M&A in 2013 Reverted to Norm After Busy 2012: OPTIS Partners

M

ergers and acquisitions of insurance agencies fell in 2013, with 248 reported transactions in the United States and Canada, according to a new semi-annual survey by OPTIS Partners, an investment banking and financial consulting firm specializing in the insurance industry.

In 2012, there were a record 299 transactions, as sellers strived to close deals before higher capital gains taxes kicked in in 2013, OPTIS Partners said.

“Last year marked a return to normal levels as buyers assimilated all their 2012 deals and began to refill the pipeline of potential target sellers,” said Timothy J. Cunningham, managing director of OPTIS Partners.

Survey data included United States and Canadian transactions in the insurance “distribution sector,” including retail property/ casualty, employee benefits and life/financial services, wholesale including MGA/ MGU, third party administrators (TPAs) and other related entities.

Private-equity backed agencies were 2013’s biggest buyers, making 94 acquisitions compared to 88 in 2012, the survey found.

“It was a seminal shift in the landscape, as PE-backed acquirers topped the chart for the largest number of transactions for the first time,” Cunningham said. The top PE-backed buyer was Hub International, which made 25 acquisitions.

PE-backed buyers were followed by privately owned insurance agencies (85), public brokers (33), banks (27) and all others including carriers (9), according to the survey.

The survey found that on the seller side, sales of property/casualty-focused agencies dominated, with 42 percent of all sales.

Deals for agencies selling both P/C and employee benefits accounted for 22 percent of transactions. Employee benefits agencies accounted for 24 percent of sales, and other, accounted for 12 percent.

Looking at the acquisitions quarter-by-quarter, the 2013 M&A activity was 20 | INSURANCE JOURNAL-NATIONAL April 7, 2014

a roller coaster, the survey said. The year initially started strong from the late reporting carryover from 2012. It then “fell off a cliff” in the middle of the year then finished with a flourish in one of the most active fourth quarters in the past six years.

OPTIS Partners said 2014 is off to a strong start.

January 2014 was one of the most active months on record for closed deals, Cunningham said. “The January flurry follows the very robust fourth quarter of 2013,” he observed. “Such momentum seems to indicate 2014 will be a very active year.”

www.insurancejournal.com

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NATIONAL COVERAGE

News & Markets Competition Softens Rate Hikes for Architects, Engineers in 2014: Survey

A

lthough most insurers providing professional liability insurance for architects and engineers sought to raise rates last year, the size of the increases generally failed to meet their expectations.

Nevertheless, nearly all leading insurers offering this specialty coverage saw premium growth in 2013 mainly from new business, an improving economy and moderately higher rates.

A new survey by insurance broker Ames & Gough found a majority of these insurers expect to seek modest increases this year to compensate for what many of them consider inadequate pricing.

Ames & Gough surveyed 14 insurance companies: ACE, Arch, AXIS, Berkley, Beazley, Catlin, CNA, Hanover, Lexington, Liberty (LIU), Markel, Navigators, RLI and Travelers. On a combined basis, these insurers represent about 75 percent of the overall marketplace providing professional liability insurance to architects and engineers in the United States, according to the researchers.

Of these insurers, 79 percent had rate increases last year and the remaining had flat rates. None saw premium rates drop.

Notably, the size of the increases was significantly below insurer expectations at the start of 2013. For example as 2013 began, 33 percent of insurers planning to raise rates expected to see increases of 6 percent to 10 percent; only 18 percent actually had such gains. Indeed, the overwhelming majority (82 percent) of these insurers had actual increases of 5 percent or less.

This year, nine of the 14 insurers surveyed are planning increases and five expect to keep rates steady. Of those planning higher rates, 78 percent expect increases of 5 percent or less, and the remaining 22 percent expect to raise rates by 6 percent to 10 percent.

“We’re still seeing steady competition in the professional liability insurance market, especially for the business of smaller A/E firms and those insurers consider as having 22 | INSURANCE JOURNAL-NATIONAL April 7, 2014

desirable risk profiles — good loss history, lower risk projects and strong risk management,” said Dan Knise, president and CEO of Ames & Gough.

“At the same time, A/E firms with higher risk projects or poor claim histories generally are seeing their incumbent insurers push for larger rate increases at renewal.”

In their drive for higher premium rates, most insurers in the survey (78 percent) consider rates to be inadequate, primarily because of premium reductions from 2005 to 2011. Nearly half (44 percent) cited historic claims experience (losses going back more than two years); 11 percent also pointed to recent claims experience (losses in the past two years) as a key factor driving up rates.

Capacity Stable Despite the rate increases, capacity for architects and engineers professional liability insurance remains stable. For any individual qualified insured firm, two of the insurers surveyed can provide up to $25 million in limits, eight can provide a maximum of $10 million to $20 million, and four can provide up to $5 million. With multiple insurers able to participate on any individual firm’s program, larger publicly traded design firms can access $100 million in limits or more.

Meanwhile, insurers are keeping an eye on claims. Although only 7 percent of those surveyed experienced greater claim frequency last year, half reported higher claim severity. Of their largest single claim payment in 2013, 64 percent paid a claim of $1 million or more, including 21 percent reporting their largest claim was between $10 million and $19 million.

“Any trend toward higher claim severity should be a red flag for A/E firms renewing their insurance programs to double-check if their limits are adequate,” said Mike Herlihy, executive vice president and partner in the Ames & Gough Boston office.

“Even many smaller firms purchase limits of $5 million or more either because clients require that protection or because they recognize the risks they face are greater.”

Rate changes for an individual account may be driven by a number of considerations, including type of projects, recent claims experience and type of work/service.

This year, there is a greater emphasis on historic loss experience, cited by 64 percent of insurers versus 39 percent in the 2013 survey. More insurers (21 percent) this year also cited the overall need for higher rates as a key factor being applied to the underwriting of individual accounts.

“Even though insurers are again seeking to raise rates, the good news is that most of the increases have been modest,” Knise said.

“Nonetheless in this environment, design firms need to maintain sound risk management practices that should encompass client selection, careful review of contractual agreements, effective project management, and proactive client communications and claim reporting.” www.insurancejournal.com

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CLOSER LOOK

10 Things to Know About Environmental Liability New cost cap products include AXIS Insurance’s environmental remediation management policy, which is designed for owners and developers. And Beazley will work with contractors to support their guaranteed fixed price remediation contract practice.

(Aon Risk Solutions’ Environmental Services Group report, Aug. 2013)

The market for environmental insurance products remains fluid and highly competitive. Although some carriers raised rates, aggressive pricing and terms are still prevalent. Pricing expectations are flat to 10 percent lower than in 2012. (Marsh, Jan. 2014)

Virtually all markets are keen to write short (typically one- to three-year) policy terms. Many carriers have cut back on offering longer-term limits, particularly with new conditions. (Marsh’s Environmental Newsletter, Jan. 2014) Loss experiences in the environmental insurance industry are likely to start challenging the notion that environmental loss is a low frequency, high severity event. Several environmental insurers have hinted they are experiencing an increase in claims.

(Marsh’s Environmental Newsletter, Jan. 2014)

Last year’s Colorado floods resulted in flood waters dispersing fracking and other oil and gas exploration chemicals. Although it is too soon to determine the effect on rates, the floods may result in pollution from floated tanks, release of chemical-laden water and release of oily residue and cuttings from mud pits.

(Marsh’s Environmental Newsletter, Jan. 2014) 24 | INSURANCE JOURNAL-NATIONAL April 7, 2014

The U.S. Environmental Protection Agency estimates there are more than 450,000 active brownfield projects in the United States collectively leveraging some $14 billion in cleanup and redevelopment funding. (Aon Risk Solutions’ Environmental Services Group report, Aug. 2013)

As multinational corporations seek merger and acquisition growth across the world, they confront expanding environmental liability regimes. Liabilities encompass a range of perils, including pollution, contamination, mold, hazardous waste and toxic chemicals in water, air or on land. (Ace USA’s report “M&A Risk Management: Global Environmental Liability,” June 2013) Laws can hold entities responsible for environmental damage and force them to clean up contamination even if they aren’t responsible for creating the problem.

Any organization that generates waste, or owns or manages property, can be at risk of producing environmental damage. (Liberty Mutual’s online newsletter, Liberty Directions)

The previous generations of remediation cost cap products have vanished, but a few carriers are offering new products. The new cost cap products provide a narrower scope of coverage with a variety of conditions that have been added to restrict the potential protection provided. (Aon Risk Solutions’ Environmental Services Group report, Aug. 2013)

Construction projects face various environmental exposures. Potential consequences could include: investigation and cleanup costs, cost overruns, third-party bodily injury/property damage, legal defense expenses, fines/penalties and project delay/soft costs. Environmental risk management products for construction projects include contractor’s pollution liability (CPL) and site pollution legal liability (PLL) coverages and cost cap.

(Marsh’s report “Building a Solid Foundation,” Jan. 2014) www.insurancejournal.com

I/J- 4.7.2014-Environmental Issue:Layout 1

MyNewMarkets Workers’ Compensation Market Detail: StateFund First (www.statefundfirst.com) is an approved Access Partner for the California State Compensation Insurance Fund. No fees and online submissions available.

Available limits: As needed Carrier: California State Compensation Insurance Fund States: Calif. only Contact: Riley Binford at 855-784-4433 or email: riley_binford@statefundfirst.com

Equine Insurance Market Detail: Momentous Insurance Brokerage Inc.’s, (www.momentousins.com) Equine Division provides insurance options for private horse owners and horse-related businesses, including private equine liability, equine mortality, commercial equine liability, farm and ranch protection, and more.

Available limits: As needed Carrier: Unable to disclose States: All states Contact: Terri Peters at 818-933-2700 or email: tpeters@mmibi.com

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Health Care Provider and Facility - Business Interruption Market Detail: CHSI Captive & Insurance Managers LLC’s (chsicaptives.com) product insures health care providers and facilities from interruption of cash flows resulting from governmental audit (e.g. CMS/RAC audits). The program is built as a protected cell captive with shared risk pools to cover losses in excess of cell retentions. The program is designed to provide preferential federal income tax treatment for premiums paid to cells.

Available limits: As needed Carrier: Columbia Captive Insurance Co. States: All states Contact: Ted Hall at 702-736-4415 or email: thall@mychsi.com www.insurancejournal.com

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April 7, 2014 INSURANCE JOURNAL-NATIONAL | 25 FREBERG16630.indd 1

3/5/14 12:52 PM

CLOSER LOOK

Environmental Environmental Exposure: Flood Risk in the Oil & Gas Industry

T

underwriting prohere has been much discussion regardcess, particularly ing the increasing frequency and when evaluating oil intensity of storms around the world. While and gas accounts. both underwriters and insurance buyers are concerned with 2013 Colorado exposure to potential Floods catastrophic losses In September from these storms, 2013, portions of the focus has been on Colorado experiproperty damage to enced a “100-year buildings and faciliflood” caused ties. Unlike property by more than 15 insurance, environBy Kenneth Cornell inches of rainfall mental insurance is in eight days. In typically not a catastrophe-exposed line Boulder, Colo., of coverage. However, the Colorado floods walls of water up to 20 feet high ran down demonstrated that potential environmental the streets of the city and surrounding releases from catastrophe storm events areas. The flooding destroyed or damaged should be considered during the underwritnearly 20,000 homes and 50 bridges, and ing process. forced more than 10,000 people to evacuate Historically, there have been environmenthe region. Ten people were killed. tal claims from pollutant releases caused by There were more than 51,000 operating catastrophic storms. Hurricanes and other oil and gas production wells in the region storms have caused releases of pollutants affected by the storm. The flooding caused that resulted in claim payments on environdamage to oil and gas operations, includmental insurance policies. Environmental ing ruptured flow lines and storage tanks. underwriters expect water intrusion into In addition, well operators multi-unit residential and Underwriters may were forced to “shut in” (i.e., commercial structures, temporarily stop production) and the resulting mold want to include due to the flooding. growth, as the most likely evaluation of flood wells

The Colorado Oil & Gas claim scenario resulting exposure as a Conservation Commission from an intense rain standard component (COGCC) tracked the effects storm or hurricane.

To date, mold claims of the underwriting of the flooding and collected on the number have been responsible for process, particularly information and types of releases that most of the environmenwhen evaluating oil took place in production tal claims arising from and gas accounts. areas. Releases of environthese storm events. There mental contaminants includhave also been environed crude oil and produced water. Produced mental claims resulting from releases of water is water in the geological formation petroleum products. While these have been where production activities are taking fewer in number, they have the potential for place that is present in the crude product greater severity. and must be separated out when the crude There has not yet been an environmental product reaches the surface. Produced catastrophe event resulting from wind or water typically contains organic contamiflood, but given recent events, underwriters nants, brine and in some formations, natumay want to include evaluation of flood rally occurring radioactive matter. exposure as a standard component of the 26 | INSURANCE JOURNAL-NATIONAL April 7, 2014

As of Oct. 9, 2013, the COGCC identified the following notable releases and wells shut in as a result of the flooding: • 15 releases of oil totaling 43,134 gallons; • 17 releases of produced water totaling 26,385 gallons; and • 1,900 wells shut in out of a total of 51,000.

Oil and gas operators reported that for the most part, the released oil and produced water were washed away with the flood waters. In an effort to identify broader environmental effects of the flooding, the COGCC tested eight rivers in the flood plain, but the results showed no impact from oil and gas operations. In addition, there were no integrity failures (i.e., breaches of the well casing that could release contaminants below ground) of any wells as a result of the flooding. Interestingly, tests showed that at least three rivers were affected by overflows of raw sewage, as evidenced by higher than normal E. coli levels.

Media and environmental activists continue to focus on the potential effects that producing wells may have on the environment, including during catastrophes such as the Colorado flood. The evidence, however, points to above ground operations, including flow lines, impoundments and storage tanks, as the major exposure to releases of contaminants. In Colorado, flow lines and storage tanks were the most affected areas of oil and gas exploration operations. www.insurancejournal.com

as tank batteries, compressor stations and flow lines. An overlay of proximity to rivers and flood zones should be incorporated into environmental engineering reviews that form the basis for an environmental underwriter’s exposure evaluation.

Well pad location coordinates can be loaded into a geographic information system (that effectively merges cartography, statistical analysis and computer science technology) to provide a map of potential flood exposures.

State-of-the-art directional drilling technology can allow exploration and production companies to assess the viability Looking Ahead of drilling vertical wells outside of a flood What can be done to be better prepared plain and then drilling horizontally to for potential catastrophic flooding in oil reach the product directly below the flood and gas exploration areas? plain.

Environmental underwriters should conApril Insurance Journal Ad_Beacon Hill:Layout 1 3/19/2014 4:28 PM Page Environmental underwriters and sider a review of well pad locations, as well Initial estimates do not indicate substantial amounts of environmental cleanup are required. It is possible that the volume of flood waters diluted the contaminants to a level where they were not detectable.

There are two caveats to this conclusion. First, contamination could have been deposited in other areas and has yet to be discovered. Second, the data is incomplete with COGCC inspections of approximately 20 percent of affected wells and associated production areas still to be carried out as of Oct. 9, 2013.

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insureds should review flood-exposed operations to ensure that well pads and operational areas are bermed sufficiently to prevent not only contaminants from being released onto the oil and gas lease area, but also flood waters from entering operational areas.

Storage tanks and flow lines should be reviewed for their ability to withstand the impacts of flooding, especially older assets that may be “grandfathered-in” with respect to current structural requirements.

Finally, insureds should include procedures for flood response in their emergency and contingency plans.

Cornell is executive vice president, chief environmental lines underwriter for Aspen Insurance.

Phone: 646-502-1092. Email: kenneth.cornell@ 1 aspen-insurance.com.

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April 7, 2014 INSURANCE JOURNAL-NATIONAL | 27

SPECIAL REPORT

Young Agents Survey

By Andrea Wells

T

What Young Agents Earn Under $30,000

10.1%

$31,000 to $50,000

29.5%

$51,000 to $75,000

29.0%

$76,000 to $100,000

12.6%

$101,000 to $125,000

8.8%

$126,000 to $150,000

3.5%

$151,000 to $200,000

1.8%

More than $200,000

4.9%

0

5

10

28 | INSURANCE JOURNAL-NATIONAL April 7, 2014

15

20

25

30

35

he call to become an insurance agent is different for everyone.

For Matthew Ostrow the call to become an independent agent came via social media.

Thirty-year old Ostrow entered insurance just five months ago after a recruiting firm contacted him directly on LinkedIn. Today he is business development manager with Widerman & Co. Inc., based in Haddonfield, N.J. The timing was right, Ostrow says.

“It was perfect timing because I had just started looking at switching careers,” he says. Ostrow had spent nearly nine years working at Enterprise Rent-a-Car, which hired him shortly after college graduation. After working in sales and management for the international car rental company, Ostrow had the business and sales skills needed to make a change but he wasn’t sure where to go.

After speaking with the recruiter, Ostrow became intrigued. He did some research on the insurance industry and was soon matched up with Widerman & Co. Inc. “I think it was a good match,” he says. “I really like their focus and that they want to remain independently, family-owned and operated.” www.insurancejournal.com

Profile of Young Agents Older Side of Young

56.0% are 31 to 40 years old; 44.0% are 30 and under.

Widerman & Co. is a not a large agency — about 25 employees — but it is strong and committed to the independent agency structure, something that appealed to Ostrow.

Perhaps the most appealing draw was the agency’s promise of commitment to his growth through a dedicated mentor.

“That was really one of the selling points for me to come here,” Ostrow says.

According to Insurance Journal’s 2014 Young Agents Survey, 79.2 percent of respondents feel they have benefited from having another agent as a mentor during their career.

Ostrow was paired up with Dan McCutcheon, vice president, strategic devel‘It’s something the opment. “He has over 40 principals see as years of experience, and he doesn’t know being very important while everything he knows a lot to the success and and has seen a lot. He’s growth of our firm.’ committed and that’s his main focus — to help teach and guide newer producers,” Ostrow says.

That commitment to growing the next generation of sales producers through education and training comes from the top, he says.

“It’s something that the principals see as being very important to the success and growth of our firm,” Ostrow says. “I work very closely with my mentor. We have regular meetings throughout the week. We have a general meeting every Monday and we set up meetings throughout the week to address different insurance issues. He’s been invaluable and I think a very important part of my learning process.”

Aside from his mentor, Ostrow participates in outside insurance training courses and webinars and is working on the Accredited Advisor in Insurance (AAI) designation from The Institutes.

According to the Bureau of Labor Statistics, nearly 50 percent of the insurance industry’s workforce is above the age of 45.

Understanding what motivates young people to decide on a career as an independent agent is critical to the survival of many agencies nationwide as the agency workforce continues to age, according to David Coon, senior vice president of The Jacobson Group, a global provider of talent to the insurance industry (see article on page 36).

“Employers are finding themselves faced with a lack continued on page 30 www.insurancejournal.com

Career Choice

86.3% consider insurance to be a permanent career choice; 12.2% are unsure; 76.3% would recommend career choice to another young person.

Experience

25.2% have less than three years in insurance; 24.4% have three to five years; 28.9% have six to 10 years; 17.2% have 11 to 15 years; 4.2% more than 15 years.

Education

63.3% have a college degree; 59.8% have completed or are working on an insurance designation.

79.3% have benefitted from an insurance agent mentor.

Family Affairs

62.1% work in family-owned agencies.

Employment Status

12.8% presently are sole owner of an agency; 15.0% share ownership with partner(s)

Ownership Dreams

72.3% do not presently own an agency; of these, 65.8% would like to own someday but just 44.7% report feeling very confident ownership dreams will come true.

19.1% don’t beleive it will happen.

Working class

63.9% work between 41 and 55 hours a week.

62.9% target mostly commerical lines; 36.1% target mostly personal lines.

Gender ID

60.5% Male 39.5% Female

Hired

35.1% were recruited for the family business; 27.3% were employee referrals; 14.1% answered a job posting; 11.7% worked for a competitor; 7.0% used a recruiter; 2.6% were recruited from college and just 2.1% used social media.

Recruitment Target

55.6% have been offered a job by another agency.

April 7, 2014 INSURANCE JOURNAL-NATIONAL | 29

SPECIAL REPORT

Young Agents Survey continued from page 29

What Young Agents View as the Biggest Agency Challenge 61.8% 52.0% 49.7% 44.2% 42.5% 29.1% 27.9% 23.9% 21.9% 18.1%

Finding good employees Attracting new customers Selling value over price Competing with online and direct sales Streamlining agency processes Better use of technology Upgrading technology Retaining existing customers Finding quality carriers with competitive products and prices Controlling expenses

Young Agents’ Outlook on Their Career 3.8% 10.1% 28.3%

Outlook on U.S. Economy in 2014 11.3%

Very Optimistic

7.1%

Very Optimistic

Optimistic

57.8%

Cautious

Optimistic 39.5%

42.1%

Cautious

Not Optimistic

Believes 2014 Income Will Be Greater Than 2013

Not Optimistic

Independent Agents' Ability to Grow Personal Lines Market Share 8.3%

5.1% 7.8% 25.3%

Very Optimistic Optimistic

61.9%

Optimistic

24.0%

Cautious

Cautious

46.0%

Not Optimistic

Outlook on the Future of the Independent Agency System

Very Optimistic

21.7%

Not Optimistic

Independent Agents' Ability to Grow Commercial Lines Market Share 2.5%

3.3%

Very Optimistic

13.6%

13.9%

Very Optimistic

30.1%

Optimistic

44.4%

Cautious

38.6%

Not Optimistic

Outlook on Attracting Quality Talent to the Agency

Optimistic Cautious

53.5%

Not Optimistic

Outlook on Financial Stability of P/C Insurers 0.8%

8.3%

15.7%

Very Optimistic

12.9%

27.1%

32.3%

Cautious

43.7%

Not Optimistic

Outlook on Attracting Quality Talent to the Industry

44.9%

Not Optimistic

Independent Agency Channel’s Ability to Advance in Technology Use 1.8%

Very Optimistic Optimistic

37.4%

Cautious

59.2%

9.8% 7.8%

Very Optimistic Optimistic

Optimistic

15.9%

25.1%

Optimistic

Cautious Not Optimistic

30 | INSURANCE JOURNAL-NATIONAL April 7, 2014

Very Optimistic

57.2%

Cautious Not Optimistic

of incumbent talent to fill the pending skills gap and are unprepared to face an increasingly competitive recruitment marketplace, “ says Coon. “To combat this pending skills gap and ensure the continued success of organizations within the insurance industry, companies must focus on engaging and recruiting young professionals and recent graduates.”

Finding and recruiting young professionals into the independent agency channel is the hard part. Once they are in, they tend to stay.

According to Insurance Journal’s Young Agents Survey, 86.3 percent of young insurance agents consider insurance as a permanent career choice, and 44.7 percent say they are “very confident” they will one day be an agency owner.

Ownership While some young agents dream of ownership in their future, others start as owners from day one.

For Aaron Levine, owner and founder of LG Insurance Group based in Long Branch, N.J., doing business his way seemed like the only way.

While attending graduate school, Levine worked part-time as an independent sub-producer for another insurance agency.

That’s all it took for him to know that he wanted insurance as a permanent career — at 27 years old.

“I had explored a couple of different options, including a career in commercial real estate, retail leasing. But at that time, from 2006-2008, the market bottomed out and I wasn’t making any money,” Levine says.

He thought: “Insurance is a product that everybody needs and it’s almost recession proof. I figured I’d be safe going into insurance and if I get in while the market is down, then I’ll reap the benefits when the market heats up.”

Working for another firm didn’t sit well with Levine. “I decided that I wanted to put all of my energy into the business but it would have to be on different terms, as in my own terms,” he says. “I’m now in my www.insurancejournal.com

10 Things Young Agents Like ‘Least’ About Insurance

fifth year of business and started with a book of exactly zero.”

Building an independent agency as a new, young agent, wasn’t easy, he admits.

Finding the right network and markets has helped.

“I got very lucky as I was connecting with markets,” Levine says. “I was very lucky to have some good mentors to help me along my way within the wholesale arena.”

Levine also joined the Strategic Insurance Agency Alliance, or SIAA. “I got connected with the SIAA group and with that connection I was able to get education and market access to all the markets that I needed to be successful,” he says.

“Without them I don’t think I would have succeeded without that market access and the education that they provide.”

Levine says LG Insurance Group, which is part of the New Jersey Agency Network, an SIAA master agency, has been able to grow with the help of SIAA and also grow independently through direct carrier appointments.

LG Insurance now has two full time employees and one part-time employee aside from Levine.

As his agency grows, Levine says he won’t be cutting ties with SIAA. “I’m pleased with SIAA and the New Jersey Agency Network,” he says. “I’ll continue to grow with them throughout the years of my career.”

The Right Roles Not every young professional is suited for the role of sales producer. And not every agent wants to become an agency owner.

That doesn’t mean there’s a lack of employment opportunities for others to excel in the independent agency channel.

“If the insurance industry truly wishes to attract this young generation of talent, we must focus on educating young professionals, recent graduates and prospective students on the many opportunities a career in the insurance industry can offer,” according to Jacobson’s Coon.

One young agent that found her niche continued on page 32 www.insurancejournal.com

(For what young agents like best, see the Opening Note, page 6.)

1. In small family agency, I am not able to focus on sales as much as I’d like to.

2. Ups and downs of the sales cycle.

3. The aging workforce has a hard time understanding the value in investing in the latest technology, so there are inefficiencies within the industry that take time away from production.

4. How skeptical clients are, how little they understand the value of our services.

5. The amount of time spent trying to undo bad information from unethical agents.

6. Hesitancy from markets to respond.

7. Insurance carriers not being flexible for underwriting guidelines.

8. How carriers treat agencies.

9. It can be difficult to get proper training on specific products offered by different insurers. Sometimes, the availability of marketing materials is weak.

10. I think we do a fairly poor job recruiting and retaining talented people.

How Young Agents View the Property/Casualty Industry Customer service

Public image

Treatment of employees

Professionalism Excellent

Opportunities for advancement

Good Fair Poor

Ethics

Career attractiveness to young professional

Use of technology

Marketing and advertising 0

50

100

150

200

250

April 7, 2014 INSURANCE JOURNAL-NATIONAL | 31

SPECIAL REPORT

Young Agents Survey continued from page 31 outside of sales and agency ownership is Rachel Dobbs, marketing coordinator of Sihle Insurance Group based in Altamonte Springs, Fla., an Insurance Journal Top 100 Agency.

Dobbs, like many in the industry, fell into

a career in insurance by “accident.”

“I got into insurance accidentally,” says Dobbs, who also serves as a member of the Florida Association of Insurance Agent’s Young Agents Council.

While in college, Dobbs worked as a

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bartender in a local restaurant, but its unexpected closure led to unemployment.

A friend who worked for a personal lines agency asked Dobbs if she wanted to work for her agency — and so she did.

“I found I really liked it and just stayed there,” Dobbs says. She began taking insurance courses while finishing her regular college workload and became licensed as an agent in 2005 at just 21 years old.

Nine years later, at 30 years old, Dobbs has found her niche in the agency world, she says.

3/4/14 9:45 AM

“As the marketing coordinator for Sihle Insurance Group I work on select, key commercial accounts, those over $100,000 in premium,” she says. “I work with all of our carriers and with our 80-something sales people to find the best markets to quote various accounts. Essentially it’s connecting the dots.”

In the beginning, Dobbs says, youth delivered a small hurdle when it came to credibility, but it was easy to overcome.

“I work more as an account manager rather than a direct sales person and I found it [youth] difficult in that relationship because when you first meet a salesperson and they are told that you will be handling their book of business, but they see a young 20-something — they are like ‘I don’t think so,’” Dobbs says. “I’ve had some issues with that but found they were pretty quickly overcome by learning how best to communicate with those people as well as showing what I can do.”

According to the IJ survey, 76.4 percent of respondents feel they have to work harder www.insurancejournal.com

What Young Agents Do to gain the confidence of clients. The vast majority of young agents (95.4 percent) also reported that success in this business is mostly about building relationships.

She’s considered moving to a more traditional sales role in the agency, but doesn’t think it’s for her. “I think there is a pretty specific personality type for sales and I don’t really have that,” Dobbs says.

For Dobbs, connecting the dots for large account insurance transactions is a good fit, for now.

“I interface with clients on the accounts that I control, which are the key agency accounts, and then the other side of that is working with marketing reps and sales people on market coordination,” Dobbs says.

The position suits Dobbs’ personality and passion for knowledge.

“I’m the kind of person who always likes to learn new things. The beauty of insurance is there is always a client with a different exposure, there’s always a law

change, always something to learn. I’ll never come to the place where I’ll know everything,” she says.

After all, there’s never an end to the unusual risk that needs an agent’s attention.

“I’m always going to get that weird risk,” she says. Figuring out the legal issues, the contractual liability issues, the risk management, and working with clients to see where their exposures lie — and how best to cover those — that’s what drives Dobbs’ passion for insurance.

54.6% 51.6% 56.1% 15.3% 34.3% 31.1% 25.6% 14.5% 34.3% 23.6% 76.4% 77.9% 32.3% 13.8% 90.2% 59.4% 58.1% 41.4% 19.5% 62.2%

About the Survey Insurance Journal’s Young Agents Survey 2014 polled more than 400 young agents

Attend local business or community meetings.

Attend insurance trade association meetings.

Volunteer in the community.

Get involved in local politics.

Attend church regularly.

Participate in a sports league.

Belong to country or athletic club.

Teach or write articles on insurance.

Attend meetings of industries the agency insures.

Speak before business and community groups.

Use Facebook.

Use LinkedIn. Use Twitter.

Write a blog.

Use an iPhone or other Smart phone device.

Use an iPad, Kindle or similar device.

Utilize insurance coverage or other checklists.

Utilize web conferencing.

Utilize a provider of sales leads.

Take insurance courses on the Internet.

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3/11/14 1:18 PM April 7, 2014 INSURANCE JOURNAL-NATIONAL | 33

CLOSER LOOK

Mergers & Acquisitions E&O Insights: How Errors & Omissions Liability Policies Respond When Buying or Selling an Agency

I

t’s rare to read an industry magazine or attend an industry conference without the topic of mergers and acquisitions coming up. The issues addressed typically include the cost of acquisitions, tax implications, systems matters, when a consultant is needed

By Curtis M. Pearsall and when the parties involved should be able to handle the transaction on their own.

Yet a key — if not critical — issue that doesn’t seem to get much attention is how your errors and omissions liability (E&O) policy will address potential liability issues.

Whether you are the buyer or the seller, proper planning and appropriate attention to detail are extremely important.

Consult E&O Carrier or Policy Given the frequency of transactions like

this, it is amazing that how E&O coverage addresses them is rarely reviewed or considered. There is a lack of consistency among all E&O carriers on the options available and the process that must be followed.

While the necessary coverage is available, the options regarding the number of years varies significantly among carriers. This speaks to the need to plan ahead.

Do not wait until a month before the sale or purchase to educate yourself on the significant coverage issues. Any good E&O carrier can provide some guidance and direction based on your specific scenario.

For example, will the E&O carrier treat the transaction as an acquisition or is it a merger? What additional information is needed? Are there potential stumbling blocks? Contact the underwriter, broker or agents’ association that played a fundamental role in the purchase of the E&O coverage and explain the situation. Don’t hesitate to ask all the necessary questions.

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agency, it is possible that the E&O carrier may not be willing to insure the new exposure. Suppose your agency is buying a wholesaler or an agency writing a specialized exposure like pollution, directors and officers liability (D&O), E&O, environmental coverage, etc. This may present a risk that your carrier does not want.

Find this out before the sale because it can impact whether you want to proceed.

The E&O carrier may require additional paperwork, copies of the proposed transaction documents, applications, etc. If the agency has had some prior E&O problems, your E&O carrier will probably want assurances regarding the level of due diligence to ensure that “the future is going to look better than the past.”

When You’re the Buyer For the buyer, the traditional approach is to have the E&O policy endorsed to provide coverage for the new agency. The coverage, referred to by many E&O carriers as a purchased entity endorsement, will provide protection against errors made by the new agency starting with the effective date of the acquisition. Tail coverage should be secured to protect against errors made by the new agency prior to the date of the sale.

Ask whether there is a premium charge for the purchased entity coverage. The charge will likely depend on how that E&O carrier has filed to handle this transaction and what it uses as its rating basis (premium, staff, revenue, etc.). Some E&O carriers look to address this additional exposure at the next renewal. Some E&O carriers provide 90 days of automatic coverage when you buy an agency. This is a significant benefit. If you think your agency will be making some acquisitions in the next couple of years, factor it into your E&O purchase.

When You’re the Seller If you decide to sell your agency, conwww.insurancejournal.com

tact your E&O carrier and advise them of your plans. Don’t hesitate to ask questions regarding cost, options, timeframes, etc.

This is an important decision and should be carefully planned.

The traditional approach involves the seller purchasing an optional extended reporting period endorsement (tail).

While most E&O policies provide an automatic 60-day grant of coverage, it is minimal.

The optional “tail” can provide time after the expiration of the policy for which valid claims will continue to be accepted, provided the wrongful act occurred before the end of the policy period.

While virtually all claims-made policies contain this provision, there is a lack of consistency as to the available options.

Some policies only allow an additional oneyear tail. Other policies may allow options up to three years. Still others provide up to 10 years or an unlimited period.

The charge for this additional coverage comes with a hefty premium charge, so plan for this expense. For a 10-year tail, it is common that the cost may run 200 percent of the last full annual premium.

Knowing the options and when the decision needs to be made are important. If you think you may be selling your agency in the coming years, tail options should be part of the decision process.

If you are on the verge of selling your business, put your E&O carrier on notice of potential claims that may arise. Most E&O carriers will consider those claims covered regardless of when the actual claim is made.

It essentially locks in the “date claim made.”

Timing and Cost You only have one time to make the decision. This is not a cost that can be financed, so ensure you have resources available. www.insurancejournal.com

There is typically a significant amount of claims activity that occurs during the tail period, so protect yourself accordingly.

Looking to buy or sell? Consider the E&O issues early on and include your carrier in the discussion. This is the key to

ensuring you make the right decisions.

Pearsall is president of Pearsall Associates Inc., a risk management consulting firm Phone: 315-7681534. Email: curtis@pearsallassociates.com. Website: www.agentseotips.com.

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April 7, 2014 INSURANCE JOURNAL-NATIONAL | 35

IDEA EXCHANGE

Recruiting How to Reach the Next Generation of Insurance Talent

T

he insurance industry is on the cusp of a talent crisis as its workforce continues to “gray.” According to the Bureau of Labor Statistics, nearly 50 percent of the industry’s workforce is above the age of 45.

Throughout the next 15 years, companies will be confronted with a growing skills gap as these professionals retire.

Employers are finding themselves faced with a lack of

By David E. Coons incumbent talent to fill the pending skills gap and are unprepared to face an increasingly competitive recruitment marketplace. To combat this pending skills gap and ensure the continued success of organizations within the insurance industry, companies must focus on engaging and recruiting young professionals and recent graduates.

With the talent crisis looming, what can the insurance industry do to attract young IJ Self Serve ad quarter pg.pdf professionals? The answer is two-fold.

1

Build Awareness of Opportunities Education is key to opening up the wide range of job opportunities available in the insurance industry. Most young professionals think of working as an agent or in claims when they think of insurance employment, as they have often not been exposed to any other positions. They are not well-informed of the wide range of opportunities that the industry offers — that their degrees in computer science, marketing or mathematics are transferable to a number of exciting positions within the industry.

If the insurance industry truly wishes to attract this young generation of talent, we 3/4/14 4:11 PM must focus on educating young profession-

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als, recent graduates and prospective students on the many opportunities a career in the insurance industry can offer. Onsite recruitment fairs, internship programs and forging relationships with local education providers are the first steps the industry must take to develop awareness and to introduce insurance careers to the younger generations.

Organizations must also look beyond the college campus when building awareness and focus on building a wider public reputation for hiring emerging talent and creating career paths for younger generations.

Education is key to opening up the wide range of job opportunities available in the insurance industry.

Change the Way the Industry is Viewed Of course, education is only half the battle. According to the The Wall Street Journal, insurance ranks near the top of the list of least-desirable industries according to recent graduates. The image of the industry is that of one behind the times and offering little in terms of career development. As such, recruiting young talent is a challenge.

Insurance organizations need to focus on rebranding the industry perception www.insurancejournal.com

and building an image that is both accessible and attractive to the next generation.

Millennials want to make an impact, are tech savvy and believe that work is an expression of themselves. Companies that are looking to attract these young professionals must focus on creating a culture that fulfills these generational workplace preferences.

Insurance organizations need to focus on fostering a collaborative environment, promoting mentorships, encouraging new and innovative ideas, and demonstrating social responsibility with volunteerism and community service projects.

Companies should focus on promoting their involvement with hot-button trends, including analytics and big data, and make sure they are staying up-to-date with the latest technological advances required to

IPHONE16649.indd 1 www.insurancejournal.com

ensure that employees are functioning at Insurance companies cannot take on the the highest level. Social media is also a great project of debunking the industry’s stereoway for organizations to build their brand types by themselves. The insurance sector and to display a positive image. as a whole must come together and work By embracing these toward collectively proThe current image of moting insurance as a great megatrends, insurance companies are posithe industry is that of industry in which to work. tioning themselves as one behind the times Only by updating forward-thinking and our image and creating a progressive — something and offering little in compelling and captivating terms of career that is sure to be noticed corporate culture can we by the younger generasuccessfully combat the development. tions. impending skills shortage The industry needs to follow the lead and attract young, fresh talent to the insurtaken by other sectors, including health ance industry. care, biotechnology and logistics, to position itself as edgy, modern, and trendy.

Coons is senior vice president of The Jacobson The stakes are high lest we lose ground to Group, a global provider of talent to the insurance industries that are already working toward industry. Phone: 800-466-1578. Email: dcoons@ rebuilding their image. jacobsononline.com.

3/31/14 1:07 PM April 7, 2014 INSURANCE JOURNAL-NATIONAL | 37

2014

EDUCATION & TRAINING DIRECTORY I

nsurance Journal is pleased to publish the 2014 Education & Training Directory. This exclusive resource directory has been designed to help independent agents and brokers find educational and training opportunities to enhance their professional growth.

Education and training providers, including insurance schools, associations, various vendors and instructors submitted information on their course offerings, online educational capabilities and correspondence education directly to Insurance Journal.

While this directory is only a snapshot of the vast array of education and training courses available to the industry, we hope you find it helpful when searching for the right provider for your agency. We look forward to expanding and enhancing this directory in the future and welcome your feedback on how we might improve it.

Please send any comments or suggestions about the directory to editorial@insurancejournal.com.

To submit a listing, e-mail Kristine Honey at: khoney@insurancejournal.com.

Organization: 360training.com Contact: Tricia Sharpton Email: tricia.sharpton@360training.com Address: 13801 N. MoPac, Austin, TX 78727 Phone: 866-360-TRNG ; Fax: 512-441-1811 Website: www.360training.com

Organization: Affordable Educators (California CE and Prelicense Training) Address: 41890 Enterprise Cir. S, Ste. 100 Temecula, CA 92590 Phone: 800-498-5100 Website: www.ceclass.com

Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: yes

Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes

Course: Insurance CE Start Date: Any Time Location: All States Category: Insurance CE Designation: No Designation Course: Pre-License/Exam Prep Start Date: Any Time Location: All States Category: Insurance Pre-License Designation: No Designation Course: Texas Insurance Adjuster License Start Date: Any Time Location: All States Category: Insurance Adjusters Designation: No Designation

Course: Ins. Marketing Issues (Includes Ethics) Start Date: Any Time Location: CA Category: Ethics Designation: No Designation Course: Preferred Practices Start Date: Any Time Location: CA Category: Property Casualty Insurance Designation: No Designation Course: California Ethics Requirement Start Date: Any Time Location: CA Category: Ethics Designation: No Designation

38 | INSURANCE JOURNAL-NATIONAL REGION April 7, 2014

Organization: Agency Management Resource Group Contact: Jackie Abeyta, CE Compliance Mgr Email: jackie@agencymanagement.com Address: 950 Reserve Dr., Ste. 140 Roseville, CA 95678 Phone: 916-757-6150 ; Fax: 916-780-6181 Website: www.agencymanagement.com Educational Offerings: Error & Omissions Loss Control Online Courses: no Correspondence Courses: no Course: Ethics in Insurance Start Date: Multiple Location: Multiple Category: Property Casualty Course: Additional Insureds and Certificates of Insurance Start Date: Multiple Location: Multiple Category: Property Casualty

Organization: Amcat Adjusting Services Contact: Linda Treadway Email: claimsjournal@amcatusa.com Address: 4843 W. Royal Ln, Irving, TX 75063 Phone: 800-995-1433 (ext. 232 or 234) Fax: 888-873-6133 Website: www.amcatusa.com Educational Offerings: Individual Courses Online Courses: no Correspondence Courses: no Course: Basic Adjusting with Xactimate Start Date: 5 days Location: Amcat Education Center Category: Personal Property Casualty Designation: IA Course: Advanced Xactimate Training Start Date: 3 days Location: Amcat Education Center Category: Personal Property Casualty Designation: IA Course: Symbility Training Start Date: 2 days Location: Amcat Education Center Category: Property Casualty Insurance Designation: IA Organization: America’s Professor Contact: Dr. Jack Morton Email: info@americasprofessor.com Address: 1819 Holborn St., Ste. E Missoula, MT 59802 Phone: 800-870-3130 ; Fax: 406-549-8560 Website: www.AmericasProfessor.com Educational Offerings: Insurance PreLicensing Courses, Undergrad Insurance Courses/Programs (Accredited) Online Courses: yes Correspondence Courses: no Course: Life & Health Pre-Licensing Start Date: Any Time Location: Many States Category: Life, Health, Benefits Designation: Licensing Exam Prep Course: Property & Casualty Pre-Licensing Start Date: Any Time Location: Many States Category: Property Casualty Insurance Designation: Licensing Exam Prep Course: Property Pre-Licensing Start Date: Any Time Location: Many States Category: Property Casualty Insurance Designation: Licensing Exam Prep

Organization: American Association of Organization: Center for Continuing Education Insurance Services (AAIS) Contact: Justin Cummings / Kristel Vela Contact: Joseph S. Harrington, CPCU Email: admin@cceducation.com Email: joeh@AAISonline.com Address: 7373 Broadway, Ste. 108 Address: 1745 S. Naperville Rd. San Antonio, TX 78209 Wheaton, IL 60189 Phone: 800-873-9353 ; Fax: 512-288-3646 Phone: 630-457-3217 ; Fax: 630-681-8356 Website: www.cceducation.com Website: www.AAISonline.com Educational Offerings: Individual Courses Educational Offerings: Educational materials Online Courses: yes for individual insurance line programs Correspondence Courses: yes Online Courses: no Location: Online Correspondence Courses: no Course: Texas Adjuster Property, Casualty & Course: A variety of materials to support the Surety Pre-Licensing Course use of AAIS products Start Date: Any Time Start Date: Any Time Category: Property Casualty Insurance Location: All States Designation: No Designation Category: Property Casualty Insurance Course: Texas All Lines Adjuster’s PreLicensing Course Organization: American Association Start Date: Any Time of Managing General Agents Category: Property Casualty Insurance Contact: Jeffrey D. Henry Designation: No Designation Email: Jeff@aamga.org Address: 610 Freedom Business Ctr, Ste. 110 Course: Texas Worker’s Compensation PreKing of Prussia, PA 19406 Licensing Course Phone: 610- 992-0005 ; Fax: 610- 992-0021 Start Date: Any Time Website: www.aamga.org Category: Workers’ Compensation Designation: No Designation Educational Offerings: Professional Ins. Designation Programs, Individual Courses

Online Courses: yes Organization: ClaimSchool Inc., WebCE and Correspondence Courses: no A.D. Banker Contact: Barry Zalma Course: AAMGA University West Email: zalma@zalma.com Start Date: Aug 14-15, 2014 Address: 4441 Sepulveda Blvd.

Location: Scottsdale, AZ Culver City, CA 90230 Category: Property Casualty Insurance, Phone: 310-390-4455 ; Fax: 310-391-5614 Surplus Lines Web: www.claimschool.com, www.webce.com Designation: CIW, CMGA & adbanker.com Course: Under Forty Organization Annual Meeting Start Date: Sept 11-13, 2014 Location: San Diego, CA Category: Property Casualty Insurance, Surplus Lines Designation: CIW, CMGA Course: Automation & Technology Conf.

Start Date: Mar 21-24, 2014 Location: Seattle, WA Category: Property Casualty Insurance, Surplus Lines Designation: CIW, CMGA

Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes Location: At Your Location Course: CA Fair Claims Practices Regulations Start Date: Any Time Category: Agency Management Designation: No Designation Course: Insurance Fraud and Weapons to Fight Fraud™ Start Date: Any Time Category: Agency Management Designation: No Designation Course: Insurance Fraud, Understanding the Issues Start Date: Any Time Category: Claims Investigation Designation: No Designation April 7, 2014 INSURANCE JOURNAL-NATIONAL REGION | 39

Education and Training Directory

Educational Offerings: Individual Courses Online Courses: yes Organization: FastrackCE Correspondence Courses: no Contact: Brad Nevins Email: bnevins@fastrackce.com Address: 13750 Pipeline Ave, Chino, CA 91710 Course: Haag Certified Inspector - Residential Phone: 800-544-3605 ; Fax: 909-465-4195 Roofs Website: www.fastrackce.com

Start Date: Many Organization: Crawford & Company Location: Many States Educational Offerings: Individual Courses Category: Property Casualty Insurance, Contact: Joel Sybert Online Courses: yes Damage Assessment Email: www.kmcondemand.com, Correspondence Courses: yes Designation: Adjuster/Agent CE Credit www.kmcondemand.com/ptc Address: 1001 Summit Blvd. available for many states Course: Ethics in Insurance Atlanta, GA 30319 Phone: 404-300-1251 Start Date: Any Time Course: Haag Certified Inspector Website: www.crawfordandcompany.com Location: Many States Commercial Roofs Category: Ethics, P&C, Life & Health Start Date: Many Educational Offerings: Professional Ins. Designation: No Designation Location: Many States Designation Programs, Individual Courses Category: Property Casualty Insurance, Online Courses: yes Damage Assessment Course: Flood Insurance Made Simple Correspondence Courses: no Designation: Adjuster/Agent CE Credit Start Date: Any Time Location: Many States available for many states Course: Property Technical Cert (PTC I) Category: Flood Insurance, P&C Start Date: Any Time Designation: No Designation Course: Haag Certified Inspector - Wind Location: All States Damage Category: Property Casualty Insurance Course: Understanding Commercial Lines Start Date: Many Designation: PTC Property & Casualty Location: Many States Category: Property Casualty Insurance, Start Date: Any Time Course: Workers’ Compensation Program I-IV Location: Many States Damage Assessment Start Date: Any Time Designation: Adjuster/Agent CE Credit Category: Property & Casualty Location: All States Designation: No Designation available for many states Category: Workers’ Compensation Designation: Other

Organization: Focal Insurance Organization: Hartford School of Insurance Course: Basic Workers’ Comp Virtual Classroom Contact: Brenda Austin Contact: Rachel Peterson Email: focalinsurance@aol.com Email: agentedu@thehartford.com Start Date: See Website Address: P.O. Box 175, Pomona, NY 10970 Address: 690 Asylum Avenue T-1-10 Location: Virtual Phone: 845-354-2036 ; Fax: 845-694-8340 Category: Workers’ Compensation Hartford, CT 06155 Website: www.focalinsurance.com Designation: Other Phone: 1-800-772-0200 Website: www.hartfordschoolofinsurance.com Educational Offerings: CE & Pre-Licensing Courses (Classroom & Self Study) Organization: Discovery Detective Academy Educational Offerings: Professional Ins. Online Courses: no Email: ops@discoverydetectivegroup.com Designation Programs, Individual Courses Correspondence Courses: yes - self-study Phone: 480-951-6545 Online Courses: yes Website: discoverydetectiveacademy.org Correspondence Courses: yes Course: Property Casualty & Personal Lines Pre-Licensing Classroom Courses Educational Offerings: Individual Courses Course: Commercial Lines Producer School Start Date: May 12 – Jun 5 (Westchester, NY) Start Date: 17 Sessions in 2014 Online Courses: yes Jun 30 – Jul 24, 2014 (Rockland, NY) Correspondence Courses: no Location: Nationwide & Virtual Jul 15 – Aug 2, 2014 (Queens, NY) Category: Commercial Property Casualty, Aug 9 – Nov 8 (Westchester, NY) Sat. Session P&C Insurance, Workers Compensation, Course: Professional Investigator Aug 12 – Aug 30, 2014 (Brooklyn, NY) Major Commercial Lines Coverages Start Date: Any Time Sep 22 – Oct 16, 2014 (Westchester, NY) Designation: Commercial Lines Coverage Location: Many States Category: Insurance - P&C; Life Accident & Specialist Category: Risk Management & Safety Health & Annuities Designation: ARM-Associate in Risk Mgmt Designation: Agent/Broker’s License Course: Commercial Lines CSR/Account Manager School Course: Fraud Investigations Start Date: 10 Sessions in 2014 Start Date: Any Time Location: Nationwide & Virtual Location: Many States Organization: Haag Education Category: Commercial Property Casualty, Category: Risk Management & Safety Contact: Ryan Holdhusen Customer Service, P&C Insurance, Workers Designation: ARM-Associate in Risk Mgmt Email: education@HaagGlobal.com Address: 4949 W. Royal Ln, Irving, TX 75063 Compensation, Commercial Lines Coverages Designation: Commercial Lines Coverage Course: Advanced Interviewing Techniques Phone: 214-614-6500 ; Fax: 214-614-6501 Specialist Start Date: Any Time Website: www.HaagEducation.com Location: Many States 40 | INSURANCE JOURNAL-NATIONAL REGION April 7, 2014

Course: Small Commercial School Start Date: 4 Sessions in 2014 Location: Nationwide Category: Commercial Property Casualty, Commercial Lines Coverages including BOP Designation: Small Business Coverage Specialist

Organization: Independent Insurance Agents of Texas (IIAT) Contact: Stephanie Freitag, Education Mgr. Email: sfreitag@iiat.org Address: 1115 San Jacinto, Ste. 100 Austin, TX 78701 Phone: 800-880-7428 ; Fax: 512-469-9512 Website: www.iiat.org Organization: HMI Contact: Douglas Malawsky Educational Offerings: Professional Ins. Email: dougm@hmiadvantage.com Designation Programs, Individual Courses Address: 107 Edinburgh South Dr., Ste. 205 Online Courses: yes Cary, NC 27511 Correspondence Courses: no Ph: 919-460-5445, x 25 ; Fax: 877-796-4626 Website: www. hmiadvantage.com Course: Texas Independent Insurance Adviser Program Educational Offerings: Individual Courses Start Date: see schedule online - iiat.org Online Courses: no Location: Many Cities Correspondence Courses: no Category: Commercial & Personal Property Casualty, Customer Service, E&O Risk Mgmt.

Course: Adjusting for Tree Damage and Designation: TIIA – Texas Independent Landscape Loss Insurance Adviser Start Date: Any Time Location: Many States Course: Certified Account Manager Program Category: Property Casualty Insurance Start Date: see schedule online - iiat.org Designation: AIC – Associate in Claims - CE Location: Many Cities Credits for Adjusters Category: Agency Mgmt, Customer Service, Ethics, Technical Knowledge Designation: CAM – Certified Account Mgr Organization: Independent Insurance Agents Course: Producer Development Program & Brokers of NY, Inc. Start Date: see schedule online - iiat.org Contact: Education Dept Location: Austin, TX Email: edu@iiabny.org Address: 5784 Widewaters, Dewitt, NY 13214 Category: Agency Mgmt, Commercial & Personal P&C, Customer Service, Ethics, Risk Phone: 800-962-7950 ; Fax: 888-432-0510 Mgmt & Safety, Sales/Marketing Website: www.iiabny.org Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: no Course: New York Automobile Insurance Plan Certification Program Start Date: Any Time Location: Cities across New York Category: NYAIP Certification Designation: No Designation Course: E&O Loss Prevention Seminars Start Date: Any Time Location: Cities across New York Designation: No Designation Course: Accredited Adviser in Insurance Start Date: Any Time Location: Cities across New York Category: Property Casualty, Agency Mgmt Designation: AAI – Accredited Adviser in Ins.

Organization: Infinity Schools Contact: Greg Mckewen Email: info@infinityschools.com Address: 1310 Esplanade, Ste. 317 S Redondo Beach, CA 90277 Phone: 800-600-2550 ; Fax: 424-247-9050 Website: www.infinityschools.com

Organization: Insurance Agents & Brokers Contact: Jessica McWilliams Email: IAB@IABforME.com Address: 5050 Ritter Rd. Mechanicsburg, PA 17055 Phone: 800-998-9644 ; Fax: 717-795-8347 Website: www.IABforME.com/education Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: yes Correspondence Courses: no Course: Insurance Success Seminars Start Date: May 13-15, Sept. 9-11, Nov. 4-6 Location: PA Category: Sales/Marketing Designation: CPIA – Certified Professional Insurance Agent Course: Pa. Licensing Exam Preparation Start Date: Varies by month Location: Pa. - Multiple Locations Category: Property Casualty Insurance Course: Insuring Contractors Start Date: May 14, Jun 3 or 11, Jul 22, Aug 13 or 14 Location: Pa., Md. and Del. Category: Property Casualty Insurance

Organization: Insurance Community Center and University

Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes Course: Unlimited CE Packages ONLY $36.95 Start Date: Any Time Location: Nationwide Category: Property Casualty Insurance Designation: Continuing Education & PreLicense Training Course: Ethics the Guide to Success Start Date: Any Time Location: Nationwide Category: P&C Insurance – 5 Credit Hours Designation: Continuing Education & PreLicense Training

Course: Understanding Umbrella Coverage Start Date: Any Time Location: Nationwide Category: Commercial P&C -15 Credit Hours Designation: Continuing Education & PreLicense Training

Contact: Barbara Thorvilson Em: barbara@insurancecommunitycenter.com Contact: Laurie Infantino Em: laurie@insurancecommunitycenter.com Phone: 303-219-3586 Website: www.insurancecommunitycenter.com Educational Offerings: Individual Courses Online Courses: Live Interactive Webinars Correspondence Courses: no Start Dates: See webinar calendar: http:// insurancecommunityuniversity.com/ CEWebinarsCalendar.aspx

April 7, 2014 INSURANCE JOURNAL-NATIONAL REGION | 41

Education and Training Directory Course: Education Tracks - includes over sixty individual topics annually Location: Many States, Live Interactive Webinars Category: Commercial & Personal Lines, Employee Benefits, Agriculture & Contractors Insurance Designation: No, but does qualify for CE in several states Course: Insurance Basics Location: Many States, Live Interactive Webinars Category: Ethics, E&O, Certificates and Additional Insureds, Real Estate Leases Course: Hot Topics and What’s New in the Industry Location: Many States, Live Interactive Webinars Category: Cyber Liability, Discussion of New Form Changes, Vacancy, Un-occupancy, Foreclosure, Insurance Topics in the News

Organization: Insurance Educators, Inc. Contact: Janet Holstine Email: jkholstine@insuranceeducators.net Address: 29 Evans St., Battle Creek, MI 49017 Phone: 269-323-2042 Website: www.insuranceeducators.net Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: no Correspondence Courses: no Designation: CPIA - Certified Professional Insurance Agent Start Date: Various Location: Michigan Category: Sales / Marketing Course: Ethical Customer Service Start Date: Any Time Location: Many States Category: Customer Service, Ethics Designation: No Designation

Organization: Insurance Educational Association Contact: Patty Gibson Carlson Email: info@ieatraining.com Address: 725 W. Town & Country Rd., Ste. 430, Orange, CA 92868 Phone: 714-689-01610 Fax: 714-689-0112 Website: www.ieatraining.com Educational Offerings: Professional Insurance Designation Programs, Individual Property & Casualty Courses & Workshops Online Courses: yes - plus classroom, Telecourse and video Correspondence Courses: no Course: Online Self Study Start Date: Any Time Location: All States Category: Workers’ Comp, Agent/Broker Prelicensing, Disability Management Designation: WCCA, WCCP, CPDM Course: Online Instructor Led (Tele-Learning) Start Date: Feb, May, Sep Location: All States Category: Claims, Commercial Property Casualty, Personal Property Casualty, Risk Management & Safety Designation: AINS, ARM, CPCU, AIC, AU, WCCA, WCCP, CPDM, CPFI, ARPM, CCMP Course: Classroom Training including On-Site Custom Classes Start Date: Feb, May, Sep - workshops continuous Location: CA, AZ Category: Commercial Property Casualty, Ethics, Personal Property Casualty, Risk Management & Safety Designation: AINS, ARM, CPCU, AIC, WCCA, WCCP, CPDM

Course: Risk Mgmt. for Insurance Agents Start Date: Various Location: Many States Category: Commercial Property Casualty, P&C Insurance, Risk Management & Safety Designation: No Designation

Organization: Insurance Journal Academy of Insurance Contact: Barbara Whiffen Email: bwhiffen@IJAcademy.com Phone: 800-897-9965 ext. 166 Website: www.IJAcademy.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: no Products: Live Insurance Training, On-Demand Insurance Webcasts, Executive Training, Insurance Books, Insurance Skills Tests, Memberships Start Date: On Demand Location: Online – IJAcademy.com

Organization: Insurance Schools, Inc. Contact: Dan Dupay Email: dan.dupay@insurance-schools.com Address: 5512 Big Tyler Rd., P.O. Box 7280 Charleston, WV 25313 Phone: 1-800-333-3926 ext. 105 Fax: 304-776-8302 Website: www.insurance-schools.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes Course: Claims Adjuster Licensing Course Start Date: On Demand Location: Online Category: Claims Adjusting Loss, Claims Law, Commercial & Personal P&C, Inland Marine, Life, Health, Benefits, Workers Compensation Course: P&C and L&H Online Test Simulator Practice Exams Start Date: On Demand Location: Online Category: Claims Law, Commercial & Personal P&C, Inland Marine, Life, Health, Benefits, Workers Compensation Course: Claims Adjuster Online Test Simulator Practice Exams Start Date: On Demand Location: Online Category: Claims Adjusting Loss, Claims Law, Commercial & Personal P&C, Inland Marine, Life, Health, Benefits, Workers Compensation

42 | INSURANCE JOURNAL-NATIONAL REGION April 7, 2014

Organization: International Association of Insurance Professionals

Contact: Mark Adams Email: evp@iaip-ins.org Address: 9343 E. 95th Ct S, Tulsa, OK 74133 Phone: 918-294-3700 ; Fax: 918-294-3711 Web: internationalinsuranceprofessionals.org Educational Offerings: Professional Ins. Designation Programs, Individual Courses Online Courses: no Correspondence Courses: no Course: Certified Leadership Program Premier learning program aimed at developing essential leadership skills for career development.

The program consists of 4 modules encompassing 17 course topics. Courses are offered in an instructor led environment or may be taken self study.

Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: CLP - Certified Leadership Professional Course: Professional Ethics Start Date: Any Time Location: All States Category: Ethics Designation: CIIP- Certified Insurance Industry Professional Course: Long Term Care Start Date: Any Time Location: All States Category: Life, Health, Benefits Designation: CIIP- Certified Insurance Industry Professional Course: Underwriting Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: CIIP- Certified Insurance Industry Professional Course: Homeowners Coverage Start Date: Any Time Location: All States Category: Personal Property Casualty Designation: CIIP- Certified Insurance Industry Professional

Organization: International Center for Organization: International Risk Management Captive Insurance Education (ICCIE) Institute, Inc. (IRMI) Contact: Margaret Welch Contact: Millie Workman Email: info@iccie.org Email: millie.w@irmi.com Phone: 802-651-9050 Address: 12222 Merit Dr., Ste. 1600 Website: www.iccie.org Dallas, TX 75251 Phone: 800-827-4242 Educational Offerings: Professional Ins. Website: www.IRMI.com/CE Designation Programs, Individual Courses Online Courses: yes Educational Offerings: Professional Ins. Correspondence Courses: no Designation Programs, Individual Courses Online Courses: yes Course: Forming and Operating a Captive Correspondence Courses: no Start Date: Any Time TM Location: Online Designation: AFIS - Agribusiness and Farm Category: Captives Insurance Specialist Designation: ACI - Associate in Captive Ins. Start Date: Any Time Location: All States Course: Protecting the Captive: Predicting Risk, Category: Sales/Marketing, Farm and Reinsurance & other Transfer Mechanisms Agribusiness Risk Mgmt. & Insurance Start Date: Any Time Location: Online Designation: CRIS速 - Construction Risk & Category: Captives Insurance Specialist Designation: ACI - Associate in Captive Ins. Start Date: Any Time Location: All States Course: Accounting for Captives Category: Risk Management & Safety, Sales/ Start Date: Any Time Marketing Location: Online Category: Captives Designation: MLIS速 - Management Liability Designation: ACI - Associate in Captive Ins. Insurance Specialist Start Date: Any Time Location: All States Organization: International Insurance Institute Category: Sales/Marketing, Prof. Liability, D&O, EPL and Fiduciary Liability exposures Contact: Carl Van Email: CarlVan@InsuranceInstitute.com

Address: 2112 Belle Chasse Hwy. #11-319 Organization: Katie School of Insurance Gretna, LA 70056 Contact: Jim Jones - Executive Director Phone: 504-393-4570 ; Fax: 504-393-4571 Email: jrjone2@ilstu.edu Website: www.InsuranceInstitute.com Address: Campus Box 5490, Normal, IL 61790 Educational Offerings: Individual Courses Phone: 309-438-3021 ; Fax: 309-438-7753 Online Courses: yes Website: www.katieschool.org Correspondence Courses: no Educational Offerings: Professional Ins. Course: Exceptional Claims Customer Service Designation Programs, Individual Courses, Start Date: Any Time Undergrad Ins. Courses/Programs (Accredited) Location: All States Online Courses: no Category: Customer Service Correspondence Courses: no Designation: CE Course: Ethical Decision-Making Course: Negotiation Skills for Claims Start Date: Any Time Professionals Location: Many States Start Date: Any Time Category: Ethics Location: All States Category: Property Casualty Insurance Course: Leading Strategic Change Designation: CE Start Date: Any Time Location: Many States Course: Time Management for Claims Category: Management Start Date: Any Time Location: All States Course: Developing Financial Acumen Category: Property Casualty Insurance Start Date: Any Time Designation: CE Location: Many States Category: Insurance Finance April 7, 2014 INSURANCE JOURNAL-NATIONAL REGION | 43

Education and Training Directory Course: INS 415 - Risk Management

Organization: Missouri Association of Start Date: Jan 2015 Organization: National Flood Insurance Insurance Agents Location: Springfield, MO Program - NFIP/FEMA Contact: Emily Koenigsfeld Category: Risk Management Safety Contact: L. Savino Email: maia@moagent.org Designation: ARM – Associate in Risk Email: NFIPS2@aol.com Address: P.O. Box 1785 Management Address: P.O. Box 210, Adelphia, NJ 07710 Phone: 732-625-TEACH Fax: 732-625-0828 Jefferson City, MO 6502-1785 Website: www.NFIPS.com Phone: 800-617-3658 Organization: National Association of Website: www.missouriagent.org Catastrophe Adjusters, Inc. Educational Offerings: Individual Courses Contact: Lori Ringo Online Courses: yes Educational Offerings: Professional Ins. Email: naca@nacatadj.org Correspondence Courses: no Designation Programs, Individual Courses Address: P.O. Box 821864 Online Courses: yes N. Richland Hills, TX 76182 Course: FEMA Flood Course Correspondence Courses: no Phone: 817-498-3466 Start Date: Call or Email to Schedule Website: www.nacatadj.org Location: All States Course: Risk Specialist Series Category: Property Casualty Insurance Start Date: Multiple Educational Offerings: Individual Courses Designation: Continuing Education Credits Location: Jefferson City Online Courses: no Category: Property Casualty Niche Markets Correspondence Courses: no

Organization: New Level Partners Course: Errors and Omissions Seminars Course: Various courses in conjunction with Contact: Nancy Langton Start Date: Multiple our annual convention Email: nlangton@newlevelpartners.com Location: Multiple Start Date: Each January Address: 100 Overlook Center, 2nd Fl Category: Risk Management, Ethics Location: Panama City Beach, FL Princeton, NJ 08540 Category: Property Casualty & Personal Website: www.newlevelpartners.com Course: CIC Institutes Property Casualty insurance Start Date: Multiple Educational Offerings: Individual Courses Location: Multiple Online Courses: yes Category: Agency Management, Property Organization: National Association of Public Correspondence Courses: no Casualty Insurance, Life, Health, Benefits Insurance Adjusters Designation: CIC – Certified Insurance Contact: David Barrack Course: Commercial Lines Insurance Basics Counselor Email: info@napia.com (25 course series) Start Date: Any Time Address: 21165 Whitfield Pl., Ste. 105 Potomac Falls, Virginia 20165 Location: All States Organization: Missouri State University Phone: 703- 433-9217 ; Fax: 703- 433-0369 Category: Commercial Property Casualty Contact: Dr. Stan Adamson Website: www.napia.com Email: stanleyadamson@missouristate.edu Course: Personal Lines Insurance Basics (12 Address: 901 S. National Educational Offerings: Professional Ins. course series) Springfield, MO 65897 Designation Programs, Individual Courses Start Date: Any Time Phone: 417-836-6686 ; Fax: 417-836-6224 Location: All States Web: www.missouristate.edu/academics/details. Online Courses: no Correspondence Courses: no Category: Personal Property Casualty aspx?id=81570 Designation: New hire training Course: NAPIA Annual Meeting Educational Offerings: Undergrad Ins. Start Date: Jun 18, 2014 Course: Business Skills for Account Managers Courses / Programs (Accredited) Location: Nemacolin Woodlands Resort, (12 course series) Online Courses: yes Farmington, PA Start Date: Any Time Correspondence Courses: no Category: Ethics, Property Casualty Insurance Location: All States Designation: No Designation Category: Customer Service Course: INS 313 - Commercial Insurance Designation: New hire training Start Date: Aug 2014 Course: First Party Claims Conference Location: Springfield, MO Start Date: October 20, 2014

Category: Commercial Property Casualty Location: Crowne Plaza Hotel, Warwick, RI Organization: Polestar Performance Programs Designation: CPCU – Chartered Property Category: Ethics, Property Casualty Insurance Contact: Debra Parker Casualty Underwriter Designation: No Designation Email: dparker@gopolestar.com Address: 1620 Central Ave., Ste. 202 Course: INS 211 - Insurance Course: NAPIA Mid-Year Meeting Cheyenne, WY 82001 Start Date: Spring or Fall each year Start Date: Jan 15, 2015 Phone: 888-934-2226 ; Fax: 866-313-9225 Location: Springfield, MO and Online Website: www.gopolestar.com Category: Personal Property Casualty Location: Loews Portofino Bay Hotel at Designation: Intro to Insurance Universal Orlando, Orlando, FL Educational Offerings: Individual Courses Category: Ethics, Property Casualty Insurance Online Courses: yes Designation: No Designation Correspondence Courses: no

44 | INSURANCE JOURNAL-NATIONAL REGION April 7, 2014

Course: Claims Broker Program Start Date: Any Time Category: Sales/Marketing - Carrier Designation: No Designation Course: Producer Development Program Start Date: Any Time Category: Agency Management Designation: No Designation Course: Underwriter Development Program Start Date: Any Time Category: Sales/Marketing - Carrier Designation: No Designation

Organization: Professional Liability Underwriting Society Contact: Deb Ropelewski Email: dropelewski@plusweb.org Phone: 952-746-2580 ; Fax: 952-746-2599 Website: www.plusweb.org Educational Offerings: Professional Liability Ins. Designation Programs Online Courses: no Correspondence Courses: no Course: Registered Professional Liability Underwriter Start Date: Any Time Location: All States (Self-study) Designation: RPLU; RPLU+ Course: PLUS International Conference Start Date: Nov 5-7, 2014 Location: Orlando, FL Category: Other

Course: PRIMA’s 2014 Annual Conference Start Date: Jun 9 - Jun 11, 2014 Location: Long Beach, California Category: Advanced Risk Management & Safety (8 tracks)

Course: Financial Analysis of Life and P&C Insurers Start Date: Various throughout the year Location: New York, NY Category: Agency Management, Finance

Course: PRIMA Institute 2014 Start Date: Nov 3 – Nov 7, 2014 Location: Louisville, Kentucky Category: Public Sector Risk Management Foundations Program

Course: Fundamentals of Insurance Company Credit Analysis Start Date: Various throughout the year Location: New York, NY Category: Agency Management, Finance

Organization: Sandi Kruise Insurance Training Organization: Society of Insurance Research Contact: Robert Kruise Contact: Ed Budd Email: kruise@kruise.com Email: sir.mail@comcast.net Address: P.O. Box 786, Bonita, CA 91908 Address: 631 Eastpointe, Shelbyville, IN 46176 Phone: 800-517-7500 ; Fax: 619-421-8171 Phone: 317-398-3684 Website: www.kruise.com Website: www.sirnet.org Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes

Educational Offerings: Individual Courses Online Courses: no Correspondence Courses: no

Course: Unlimited CE Subscription, $39.95 Start Date: Any Time Location: All States Category: Commercial & Personal P&C, Property Casualty Insurance, Ethics, Life/ Health/Benefits, Risk Management & Safety, Surplus Lines Designation: No Designation

Course: 44th Annual Conference Start Date: Nov 2-4, 2014 Location: Indianapolis, IN Category: P&C and Health Designation: Emerging Issues & Research

Course: Long Term Care Partnership Start Date: Any Time Location: All States Category: LTCP, Life/Health/Benefits Designation: No Designation

Course: 2015 Spring Seminar Start Date: TBD – check website Category: P&C and Health Designation: Research

Organization: Sterling Education Services, Inc Contact: Elizabeth Kramer Email: ses21@sterlingeducation.com Address: PO Box 3127, Eau Claire, WI 54702 Phone: 715-855-0495 ; Fax: 715-835-5132 Website: www.sterlingeducation.com

Course: Ethics and the Insurance Agent (meets Ethics requirement) Start Date: Any Time Location: Many States Category: Ethics, Commercial & Personal Educational Offerings: Individual Courses P&C, Life/Health/Benefits Online Courses: no Correspondence Courses: no Designation: No Designation Organization: Public Risk Management Course: Workers’ Comp. Law & Practice Association (PRIMA) Organization: SNL Knowledge Center Start Date: Multiple Dates Email: info@primacentral.org Contact: Maureen Hollar Location: Many States Address: 700 S. Washington St., Ste. 218 Email: center@snl.com Category: Risk Management & Safety Alexandria, VA 22314 Address: P.O. Box 2016 Designation: Continuing Education Phone: 703-528-7701 ; Fax: 703-739-0200 Charlottesville, VA 22902 Website: www.primacentral.org Phone: 434-951-7786 ; Fax: 434-984-8038 Course: Advanced Workers’ Compensation Website: www.snlcenter.com Start Date: Multiple Dates Educational Offerings: Courses, online Location: Many States learning and Podcasts Educational Offerings: Individual Courses Category: Risk Management & Safety Online Courses: no Online Courses: no Designation: Continuing Education Correspondence Courses: yes Correspondence Courses: no Course: Fundamentals of Workers’ Comp.

Course: PRIMA’s 2014 Webinar Series Course: Life and P&C Insurance Statutory Start Date: Multiple Dates Start Date: Jan 14 – Nov 12, 2014 Accounting & Reporting Location: Many States Location: Online Start Date: Various throughout the year Category: Risk Management & Safety Category: Risk Management & Safety Location: New York, NY Designation: Continuing Education Category: Agency Management, Finance Course: D&O, Med PL, Professional Risk Symposia Start Date: Check website for dates & locations Category: Other

April 7, 2014 INSURANCE JOURNAL-NATIONAL REGION | 45

Education and Training Directory

Organization: Stone Insurance Education

Email: info@stonece.com

Address: PO Box 721386, Norman, OK 73070 Phone: 405-360-7475 ; Fax: 405-360-9304

Website: www.StoneCE.com

Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes Course: Ethics Applied Start Date: Any Time OnDemand Webinar Location: Selected States Category: Ethics Designation: No Designation Course: Legislative Update Start Date: Any Time OnDemand Webinar Location: Oklahoma Category: Legislative Update Requirement Designation: No Designation Course: P&C/L&H Oklahoma License Exam Preparation Start Date: Monthly Location: Oklahoma Category: OK Licensing Exam Prep Designation: No Designation

Organization: The Institutes Contact: Customer Service Email: customerservice@TheInstitutes.org Address: 720 Providence Rd., Ste. 100 Malvern, PA 19355 Phone: 800-644-2101 Website: www.TheInstitutes.org Educational Offerings: Professional Insurance Designation Programs, Introductory and Foundation Programs, Individual Online Courses, Continuing Education (CE) Courses, Research, Custom Solutions The majority of The Institutes’ offerings contain multiple delivery formats, including self-study.

Online Courses: yes Correspondence Courses: no

Designation: Chartered Property Casualty Underwriter (CPCU®) Start Date: Any Time Location: All States Category: Property Casualty Insurance, the premier designation within the risk Organization: The Agency Trainer management and insurance industry Contact: Vickie Morgan Email: vmorgan@agencytrainer.com Designation: Associate in General Insurance Address: Pueblo, CO 81006 (AINS®) Phone: 719-924-9454 ; Fax: 888-840-1250 Start Date: Any Time Website: www.agencytrainer.com Location: All States Category: Property Casualty Insurance, Educational Offerings: Individual Courses provides comprehensive insurance knowledge Online Courses: no and includes a wide-range of electives Correspondence Courses: no Designation: Associate in Claims (AIC™) Course: Applied Systems Training Start Date: Any Time Start Date: Any Time Location: All States Location: All States Category: Claims, provides multiple specialty Category: Agency Management tracks to completion including auto, liability, Designation: Other multi-line adjuster, property and workers comp Course: Training Assessments, One-on-One Training, Refresher Training and more!

Start Date: Any Time Location: All States Category: Agency Management Designation: Other

Designation: Associate in Risk Management (ARM™) Start Date: Any Time Location: All States Category: Risk Management, provides knowledge covering risk management principles and practices, and how to assess and treat risks Designation: Associate in Commercial Underwriting (AU™) Start Date: Any Time Location: All States Category: Commercial Property Casualty, provides a foundation in underwriting principles and advanced underwriting techniques

46 | INSURANCE JOURNAL-NATIONAL REGION April 7, 2014

Designation: Accredited Adviser in Insurance (AAI™) Start Date: Any Time Location: All States Category: Agency Management, provides in-depth insurance product knowledge and a strong focus on customer service skills

Organization: The National Alliance for Insurance Education & Research

Email: alliance@scic.com Address: 3630 North Hills Dr. Austin, TX 78731 Phone: 800-633-2165 ; Fax: 512-349-6194 Website: www.TheNationalAlliance.com Educational Offerings: Insurance and Risk Management Designation Programs Online Courses: yes Correspondence Courses: no

Course: School for Producer Development Start Date: May 4-16, 2014 Location: Tallahassee, Florida Start Date: Oct 5-17, 2014 Location: Fort Worth, Texas Category: Commercial Property & Casualty, Sales/Marketing Designation: No Designation Course: Dynamics Sales Training Start Date: Any Time Location: Many States Category: Insurance Sales, Sales Mgmt Designation: No Designation Course: Certified Insurance Service Representatives (CISR) Online & Classroom Start Date: Any Time Location: Internet/All States (1200+ per year) Category: Agency Mgmt, Commercial P&C, Customer Service, Personal Residential & Auto Designation: CISR – Certified Insurance Service Representative Course: Certified Risk Managers (CRM) Online & Classroom Start Date: Any Time Location: Internet/Many States (80+ per year) Category: Risk Management & Safety Designation: CRM – Certified Risk Manager Course: Certified Insurance Counselors (CIC) Start Date: Any Time Location: All States (300+ per year) Category: Agency Mgmt, Commercial P&C, Personal Lines, Life & Health Designation: CIC – Certified Insurance Counselor

Course: Certified School Risk Managers (CSRM) Online & Classroom Start Date: Any Time Location: Internet/Many States (60+ per year) Category: Risk Management & Safety Designation: CSRM – Certified School Risk Manager

Course: ABC’s of Annuity Investing Start Date: Any Time Location: Online or through home-study Category: Life and Annuity Designation: No Designation

Course: Annuity Suitability Training Start Date: Any Time Location: Online or through home-study Organization: The Wedge Group Category: Life/Annuity Contact: Marja van Oijen Designation: No Designation Email: marja@thewedge.net Address: 5729 Lebanon Rd., Ste. 144 Box Course: Long-Term Care in America 410, Frisco, TX 75034 Start Date: Any Time Phone: 214-446-3209 ; Fax: 972-999-0970 Location: Online or through home-study Website: www.thewedge.net Category: Health Designation: No Designation Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: no Course: iWinCRM + Sales Team Development Start Date: Any Time Location: All States Category: Agency Management, Sales Managers /Producers, Property Casualty/Risk Mgmt, Employee Benefits, Sales/Marketing Designation: No Designation Course: Breaking The Sales Barrier™: Fast Track To Elite Status Start Date: Any Time Location: All States Category: Agency Management, Sales Managers /Producers, Property Casualty/Risk Mgmt, Employee Benefits, Sales/Marketing Designation: No Designation Course: iWin Train the Coach - How To Run effective CRISP™ Sales Meetings Start Date: Any Time Location: All States Category: Agency Management, Sales Managers /Producers, Property Casualty/Risk Mgmt, Employee Benefits, Sales/Marketing Designation: No Designation

Organization: Vale Training Solutions Contact: Tonya Magalei / Ami Thompson Email: registrations@vale-ts.com Address: 2424 E. Randol Mill Rd. Arlington, TX 76011 Phone: 817-633-4800 ; Fax: 817-633-2922 Website: www.vale-ts.com Educational Offerings: Individual Courses Online Courses: no Correspondence Courses: no Course: Property Adjusting Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: No Designation

Course: Residential Estimating Start Date: Any Time Location: All States Category: Property Casualty Insurance Designation: No Designation

Organization: United Insurance Educators, Course: Casualty Adjusting Inc. Start Date: Any Time Contact: Toni Amell Location: All States Email: mail@uiece.com Category: Property Casualty Insurance Address: 8213 352nd St. East Designation: No Designation Eatonville, WA 98328 Phone: 800-735-1155 ; Fax: 253-846-7536 Course: Auto Estimatics Web: www.uiece.com Start Date: Any Time Location: All States Educational Offerings: Individual Courses Category: Property Casualty Insurance Online Courses: yes Designation: No Designation Correspondence Courses: yes

Organization: Van Wyhe Group, LLC Contact: Angela Lingle Email: angela@insurancece.com Address: P.O. Box 4130 Waukesha, WI 53187 Phone: 800-326-4741 ; Fax: 800-476-2945 Website: www.insurancece.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: yes Course: Self Defense: Documentation Start Date: Any Time Location: On-Line Category: Property Casualty Insurance

Course: Problems When Insuring Condos Start Date: Any Time Location: On-Line Category: Property Casualty Insurance Course: Ethics In Insurance Start Date: Any Time Location: On-Line Category: Property Casualty Insurance

Organization: WISE Education, Inc. Contact: Carla Coats Email: wise.education@verizon.net Address: 1501 Cobblestone Ct. Thorofare, NJ 08086 Phone: 800-577-9888 ; Fax: 856-384-8414 Website: www.wiseeducation.com Educational Offerings: Individual Courses Online Courses: yes Correspondence Courses: no Course: Atlantic City “Blitz” Start Date: Oct 16 & 17, 2014 Location: Caesar’s – New Jersey Category: Commercial Property Casualty, Ethics, Risk Mgmt & Safety

April 7, 2014 INSURANCE JOURNAL-NATIONAL REGION | 47

IDEA EXCHANGE

The Competitive Advantage Hiring That First Good Producer

H

iring that first good producer may be the most difficult single step/ achievement an independent agent undertakes. It is so difficult, at least 60 percent of agencies, based on size surveys, never hire a single successful producer. Hiring just one quality producer who succeeds puts an agency far above average.

Hiring, developing, and then keeping a good producer is truly difficult work for many special reasons

By Chris Burand including: 1. The agency does not yet possess a reputation as being a great place for producers to thrive. In other words, the agency has to sell a quality candidate as to why the person should take a chance on a rookie agency.

Low-quality producers and candidates will not know the difference. They will not care or they simply are not smart enough. The good producers/candidates know the difference. So what is your sales

OAK001.indd 1

48 | INSURANCE JOURNAL-NATIONAL April 7, 2014

pitch? Remember, they know the difference between an agency that has a real potential for their achieving their goals and one that does not. Too many agencies seeking to hire their first quality producer enter the search without any sales pitch prepared, without any plan, without even knowing who they want to hire.

2. You need to know what a good producer looks like. A good producer can and will sell. This means a good producer can look a little abrasive, difficult, too forward, aggressive and too energetic. Many agency owners will not hire this person. They want someone that is easier-going first and that can sell second. The proof of this is the plethora of really nice guys that are producers who do not sell.

Before you test someone, talk to the testing organization and learn what a true producer profile looks like. My personal favorite is the sales test given by behavioral sciences because it is easy to see the difference between a nice guy and a person who can sell and how the fact they’re a nice guy can be the reason they can’t sell.

3/1/14 9:19 PM

Know thyself. One reason so many people are hired as producers who obviously cannot sell is because the owner does not really want to hire someone that can sell.

• A good producer is often threatening to an owner. They’re the top dog who may have become a little complacent relative to sales and here comes an aggressive person who begins putting business on the books.

• Often, the No. 1 criteria a producer must have to be hired is that the owner likes them; whether they can sell is secondary.

• Sometimes likability is the criteria because a salesperson needs to be likable, but being likable to clients versus likable inside an office is not necessarily the same.

3. Some agency owners are confused as to what selling really is. They have come to believe that what they’ve been doing for the past 10 or 20 years is selling but it is not. If people are calling you versus you calling on them, it is not selling per se. www.insurancejournal.com

to be strong.

5. A producer that can actually sell may rub some insider people, including the owner, the wrong way.

Agency owners that know me well know I am adamant that producers follow procedures. However, agencies usually have a choice when hiring a producer. They can get someone that pays attention to detail work in the office or they can hire someone that can sell. The skills are not always mutually exclusive, but usually this is the case.

Too often existing CSRs will run off a good new producer by demanding detail and complaining to the owner how much work the producer is. If a producer can sell, CSRs need to be led, by the owner, to understand the importance of the producer’s skill. The producers still have to follow procedures but maybe the procedures can be modified, maybe the CSRs can do some of the follow up, maybe the agency can support the good producers.

An important note: This only applies to If the owner, excluding all the approprigood producers! ated house business, has a book of less than The owner may not ever like the good $300,000 after 20 years, it is not selling. producer. Is your goal to hire a friend or 4. If you look really closely at whether people generate sales and value? are buying from you because you own the agen 6. Have a strategic plan in place prior to cy versus you selling to them and learn they’re beginning your search. buying from you because you own the agency, Determine if you are going to hire an understand the significant difference this makes insurance veteran or hire a good salesperson to a producer. from another industry.

A client fought me on this point for The first producer hired Based on the first point, develop a complete trainseveral years until is always difficult and ing plan before you even finally he ran some even culture changing. interview anyone. experiments and Develop and verify that learned I was correct. you have a quality producer contract ready He had thought he was great. He learned to go before beginning your search. that many commercial buyers just want to Develop your producer management plan. buy from an agency owner and he was the Even good producers need overt manageonly locally owned agency left. When his ment. producers offered the same package and The first producer hired is always diffihonestly presented themselves better, they cult and even culture changing. In many did not have the same success. Consider ways, it is like bringing a baby home and going undercover and learning for yourself. into a family. The family is never again the A non-owner producer will have to work same. Some agencies are so insular they’ll harder and therefore, their sales skills need

never be able to welcome a quality producer. This just helps every other agency grow at their expense.

www.insurancejournal.com

April 7, 2014 INSURANCE JOURNAL-NATIONAL | 49

Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719485-3868. E-mail: chris@burand-associates.com.

Advertisers Index Readers, browse, contact, or do product searches on any of our full page advertisers at: www.insurancejournal.com/adshowcase/

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IDEA EXCHANGE

Closing Quote

Diversity and Youth: The Independent Agency System’s Challenge and Opportunity

L

By Quincy Branch

ike many of my peers, I grew up in family-owned independent insurance agency and sort of inherited the insurance bug. Unlike most of my peers, our family’s agency is minority-owned and I’m younger than 40.

The majority of independent insurance agencies in the United States are owned and operated by a white male over the age of 54. This brings up two issues: As our predominantly older employees retire, who will fill their shoes?

Also, how do we ensure that the next generation of industry leaders includes more women and reflects our country’s diverse racial and ethnic population? Why aren’t there more people of color in our industry and why aren’t we, as a whole, marketing more to diverse audiences?

As chairman of the Independent Insurance Agents of America (IIABA or the Big “I”) National Young Agents Committee (YAC), I’m tasked with working with our industry’s most powerful advocates and my fellow young agents from across the country to find ways to attract and retain younger people to this profession. InVEST, a classroom-to-career education program supported by the Big

50 | INSURANCE JOURNAL-NATIONAL April 7, 2014

“I” — which is currently in more than 500 high schools and colleges across the country — is helping to get more bright scholars through the front door. Many of us have hired interns and then staff who first considered this line of work in an InVEST classroom, but are they staying?

Attracting talent and then retaining and promoting that talent is our next challenge. Agencies also need to take the time and resources to invest in professional development for younger employees and those who are new to the industry.

A 2014 Insurance Journal survey found that 83 percent of young independent insurance agents felt optimistic about the future of our industry. This optimism is a valuable asset we must capitalize on to build up our troops. By making this career path attractive and providing a road toward advancement, we can keep our younger employees happy, growing and building our book of business.

Don’t cast your net in just one pond. Not all talent will come straight from a traditional classroom pipeline. What about fishing in other ponds such as those filled with older workers looking for a career change? What about former military personnel or students looking for a two-year or vocational education?

Independent agents are in every community across the country and our industry should reflect those communities. The 2010 Big “I” Agency Universe Study found that the number of agencies with principals who are women, Hispanic and/or African-American had increased since 2008. New agencies were the main driver of this change and our industry must stay committed to making even Agencies also need bigger strides in the years to take the time and to come. resources to invest in Younger professionals also need to do their part professional develto stay active and look for opment for younger opportunities. Young agent employees and those groups are a great way to who are new to the network and exchange ideas. YAC encourages industry. young agents — those under 40 years of age or with less than five years of experience in the industry — to get involved.

It’s my hope that this pipeline will continue and that soon it will reflect the diversity of the next generation of agents.

Branch is chairman of the Independent Insurance Agents of America’s National Young Agents Committee. Branch is a second-generation insurance professional and serves as president and CEO of Branch Benefits Consultants based in Las Vegas, Nev.

www.insurancejournal.com

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