Happy Wednesday! In this week's Big I Buzz, we have news about WCRB's rate changes and a new way to get involved in the IIAW. 

On July 12, 2022, WCRB (Wisconsin Compensation Rating Bureau announced an -8.47% rate change (8.47% decrease). This rate change will take effect October 1, 2022. Read the full Circular Letter announcing this change here. 

Get Involved: Volunteer to Serve

We're looking for volunteers to serve on the IIAW's councils and task forces. your participation is invaluable, and your input and feedback will help drive thee work we do in the coming year and beyond. 

Councils & Task Forces for 2022-2023

Personal Lines Task Force - for individuals who are interested or who have a role in Personal Lines insurance

Commercial Lines Task Force - for individuals who are interested in or who have a role in Commercial Lines insurance

Employee Benefits Task Force - for individuals who are interested in or who have a role in Employee Benefits

Industry Relations & Operations Council - for insurance professionals who have an operational or leadership role within an agency or insurance company

Government Affairs Council - for individuals interested in staying informed and providing feedback to the IIAW's Board on Wisconsin & national legislative and political happenings

Emerging Leaders - for insurance professionals looking to cultivate their skills for a successful career by engaging in association activities, professional develop, education and events

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

Make sure you fill out this survey to receive communications about an IIAW Councils & Task Forces kick off event on September 21st and other task force/council communications.

 

 

For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list. Additionally, we send out monthly newsletters with content curated just for you and your role. Make sure you're on the list to receive our communications by heading to bit.ly/industrynewsforyou to stay in the loop!

By: Rebecca Freiberg, Society Insurance

Workplace politics can be a delicate subject. Workplace politics is the manifestation of power dynamics amongst employees. At its best, you’ll feel like you’re walking on eggshells each time you set foot in the office and at its worst, you can ruffle a few feathers, making each day feel miserable. Every office has some form of politics; what matters is whether or not they are toxic. Here we’ll go over ways you can overcome workplace politics, or at the very least stay on the right side of issues, to avoid becoming embroiled in drama.

Know the Ins & Outs of the Organization

 

The first way to overcome workplace politics is to understand different functions of the organization. This means understanding the company’s organizational structure, who reports to who. It’s also important to understand who within the organization has influence. You might ask yourself questions such as, “who are the true influencers? Who is respected? Who mentors others?”

 

Embrace Transparency

 

Stress the importance of open communication among and between teams, especially if you manage people. Your team members should feel at ease coming to you with problems they’re having without repercussion. Open communication leads to effective communication which then leads to an efficient workflow. When employees feel comfortable discussing workplace problems with co-workers, it leads to the potential resolution of problems.

 

Implement a Realistic Code of Conduct

 

Simply having a definition for what establishes acceptable behavior is a major step in avoiding workplace conflict. Making a system for decision making, encouraging open collaboration, team building, leadership training and development, and careful hiring will all help avoid workplace conflict. It’s important to have clearly defined responsibilities so everyone knows what’s expected from them.

 

It is equally important to have a clearly laid out chain of command to allow for effective communication. In other words, define workplace rules clearly and make it known what will or will not be tolerated. Removing assumptions will drastically reduce the risk of conflict in the workplace.

 

Don’t Add Fuel to Fire

Behaviors to avoid include:

• Spreading gossip

• Choosing sides

• Taking part in the rumor mill

• Becoming jealous

 

Become Swiss and Don’t Take Sides

 

It is vital that employees remain neutral during conflicts, even if you like someone more than another. Your position may be a trusted authority figure, meaning that your actions and words have significant meaning. Think about what is best for the company, not for personal satisfaction. Remaining neutral allows you to make great decisions and stay separate from workplace politics. Once a side is taken it is difficult to overcome.

Get Level: Cooler Heads Prevail

 

Similar to remaining objective, don’t lose your cool and become aggressive with someone or you’ll gain a negative reputation for it. This is relevant advice for all workplace situations. If you do not remain cool, your reputation and career is at risk. Even though workplace politics may upset you, staying cool has its benefits. Keeping cool prevents you from saying or doing anything in the moment that you may regret later.

 

Practice What You Preach: Political Behavior Comes From The Top

 

Owners and managers influence behavior. If they promote or facilitate a toxic political atmosphere, it may be time to search for a new job. Leaders in the organization must take steps to eliminate political behavior  immediately.

 

How Managers Can Quash Negative Workplace Behavior

 

• Share the goals that you are trying to achieve and reward those who help achieve them. When the collective goal is clear, it is less likely that people will prioritize their own interests first.

 

• Keep every employee in the organization involved so no one employee feels more important than another.

• Make connections within the organization and develop strong interpersonal communication between individuals via lunches, happy hours, kickball leagues, etc. When employees are connected and respect one another, workplace politics begin to diminish.

 

Conflict in the workplace is inevitable, even with the most agreeable personalities. The average American spends well over 2,000 hours at work over the course of a year. When employees of various backgrounds and different work styles are brought together to work on the same project with the same goal, conflict could be a natural byproduct. Not all conflict is bad, however all conflict can and should be managed and resolved. If handled correctly, confronting conflict head-on will result in a stronger culture and closer teams.

Members in the News: July 2022

Secura Insurance Promotes Larry Wright to Senior Vice President

Neenah, WI (5/26/22) -  SECURA Insurance promoted Larry Wright to Senior Vice President and Chief Claims Officer effective May 23, 2022.

 

"Larry is well known for his ability to lead and inspire," said Garth Wicinsky, SECURA President & CEO. "His broad-based thought leadership has done amazing things in our Claims Department, and will continue to help shape the future of SECURA."

 

Larry began his career at SECURA in 1997 as an IT programmer/analyst. He held progressive positions, including IT supervisor, IT director, workers’ compensation claims representative, workers’ compensation claims supervisor, claims project manager, casualty representative, litigation coordinator, and vice president – claims. Most recently he was promoted to Vice President and Chief Claims Officer in 2018.

 

Larry earned a bachelor's degree in business administration from the University of Wisconsin–Eau Claire and an MBA from the University of Wisconsin Oshkosh. He earned his Chartered Property Casualty Underwriter (CPCU), Certified Insurance Data Manager (CIDM), Associate in Insurance Services (AIS), and Associate in Claims (AIC) designations. He also earned a Master’s Certificate in project management from the University of Wisconsin–Madison School of Business.

SFM Releases 2021 Annual Review

Bloomington, MN (5/31/22) -  SFM recently released its 2021 annual review, which highlights SFM's 2021 accomplishments.

 

For SFM, 2021 represents a story of remarkable success. Our written premium soared to a new high of $212 million and we are now serving more customers than ever, following a record $30 million in new premium last year.

 

Other 2021 highlights include:

• Combined ratio of an exemplary 90%, which is a

  key measure of financial performance (and

  marks a tenth straight year under 100%)

• 96.6% policyholder retention rate, which

  demonstrates unsurpassed customer loyalty

• -4% pricing reduction, which means lower

  premiums for policyholders year over year

 

At SFM, our commitment to service drives our results – not the other way around. Always at the center of the target is our dedication to doing the next right thing – for policyholders, their employees, independent agents and the community around us.

Acuity Wins 2022 BBB Torch Award for Ethics

Sheboygan, WI (6/9/22) -  Acuity is named a 2022 Better Business Bureau (BBB) Torch Award for Ethics Winner. A Torch Award is the most prestigious honor BBB presents to businesses that demonstrate an outstanding commitment to integrity and ethical practices.

 

“We are tremendously honored to be recognized by BBB with a Torch Award for Ethics and hope that our ethical business practices are an inspiration to others,” said Acuity President and CEO Ben Salzmann. “The BBB’s focus on ethics is vital for the world today. We all must kindle an even stronger focus on ethics to support all positive aspects of humanity. This focus must start at the community level, in daily life, and rise to a global inspiration. We can make a difference.”

 

Acuity’s selection as a winner from the BBB was based on an independent panel of judges comprised of business and community leaders who evaluated the insurer’s commitment to ethics across the areas of character, culture, customers, and community. Since 2003, BBB has honored businesses and nonprofit organizations of all sizes that meet the highest standard of ethics and trust among their employees, customers, and local communities, embodying BBB's mission to advance marketplace trust.

 

“This year, we had more applicants than in the past five years,” said Julie Albrecht, Executive Director of the BBB of Wisconsin Foundation. “These organizations should be immensely proud of their commitment to ethics in their day-to-day operations.”

 

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

Society Insurance Donates $100,000 To St. Katharine Drexel Shelter

Society Insurance has pledged a $100,000 capital gift to the St. Katharine Drexel Shelter, a new resource serving people experiencing homelessness in the Fond du Lac area.

 

Society will make its gift in four annual payments of $25,000 from 2021 to 2024.

In recognition, the St. Katharine Drexel Shelter named its singles dining area the Society Insurance Dining Room.

 

The shelter, made possible by a partnership between St. Vincent de Paul of Fond du Lac County and Solutions Center, opened in May. This year-round facility offers food, lodging, clothing and basic necessities in a safe, stable environment. Inside the 20,000 square-foot building are bedroom, dining and common spaces for up to 15 families and 36 adult singles. Dedicated family and adult wings allow the shelter to serve those in need without separating families; children are able to stay in their home community and continue attending their school.

 

The shelter’s design reflects a community approach to reducing homelessness, which starts with short-term crisis intervention and progresses to long-term goal planning for self-sufficiency. Partnerships with more than one dozen local non-profit and government organizations and spaces devoted to employment advocacy, counseling and housing searches are key additional resources available to guests.

 

For more information regarding the St. Katharine Drexel Shelter or to donate, visit skdsfdl.org

By: Clay Fuchs & Grant Bryant, Risk Placement Services

 

Since the end of 2021, the geopolitical landscape in the energy market has dramatically changed and continues to do so. The current conflict in Ukraine; China's continued implementation of its zero-COVID-19 policy; coordinated releases from the U.S. Strategic Petroleum Reserve; and oil producers' decisions to limit any increases in production are all having an impact.

 

Meanwhile, oil prices remain volatile and oil executives have argued against ratcheting up output, unconvinced that demand will be there when the wells come online. Their focus, like any business, is returning value to shareholders, reducing debt and providing consistent growth into the future.

 

Yet, we are seeing signs of increased production activity. From the end of 2021 to April 2022, rig counts rose 17.5%. This increase indicates a corresponding increase in all ancillary oil and gas activity. With major oil production companies committed to sustained growth and focused on profitability, the growth in rigs is primarily being driven by more nimble private operators who haven't seen a favorable economic environment for their businesses in many years. We're likely to see this expansion continue. However, economic uncertainties could result in a supply glut if certain geopolitical events lead to less demand or an increase in supply.

 

We're also continuing to see a continued drop in drilled but uncompleted (DUC) well counts, which is another indication of increased production activity.

 

So, what does this mean for the insurance industry? We've seen insureds of all sizes—from an oil and gas consultant to a major drilling company—increase projected revenues by at least 20%, with some growing by as much as 300%.

 

Increased activity in the field comes with increased claims, which we're also seeing. The auto line of business is generating much of the activity as more oilfield drivers, many of whom are recent hires, may not have much experience.

 

 

Many energy underwriters are requesting additional information regarding fleet controls and are also limiting when and where they're choosing to deploy capacity in the umbrella space. Therefore, it's important to look ahead on accounts with large losses or a large fleet to develop a game plan in advance of the renewal.

 

Success can be found in placing difficult, wheels-driven accounts in the energy sector by leveraging underwriter relationships in the environmental, transportation and energy marketplace. Collaborating on renewals early and getting the information to market in a timely manner can help decrease the turnaround time for underwriters.

 

Though auto and umbrella lines of business remain challenging to place, we're starting to see rates level out in these areas, as well as in general liability. Over the last few years, underwriters have focused on securing rate increases or non-renewing undesirable accounts and their efforts have resulted in a semblance of calm after the storm. We continue to see underwriters seek up to 10% rate increases on accounts with steady exposure growth while loss-free accounts within an underwriter's targeted business lines can see increases under 5%.

 

Not all energy carriers are in a great spot. We have been monitoring some carriers regarding questionable renewals on certain accounts. This includes both carriers in the excess & surplus and admitted markets across transportation, environmental and casualty lines within the energy industry. Our advice is to proactively communicate with underwriters early to get a better picture of the renewal.

 

Underwriters remain focused on account retention—and with exposures growing throughout the industry, this focus is even more critical.

This article was originally published on

iamagazine.com in June.

Happy Wednesday! In this week's Big I Buzz, we are discussing the educational opportunities available for IIAW members, home renovation risks and the number of Americans facing health care debt. 

IIAW Educational Opportunities

The IIAW is an honored recipient of the Big "I" National 2022 Excellence in Insurance Education (EIE) Diamond Award. This award recognizes state associations and staff who have made significant contributions to insurance educations for their members and the industry. The IIAW offers various traditional and cutting-edge professional development programs! IIAW members have access to our educational opportunities. 

First, we offer in-person and online prelicensing options for Wisconsin insurance professionals. The in-person and online insurance licensing course is led by Gabrielle O'Brien, who has taught more than 20,000 prelicensing students! The IIAW prelicensing course is designed to help you pass your state licensing exam by the quickest method of meeting the WI educations hours requirement. 

Next, we offer online continuing education courses. The WI OCI requires insurance agents in Wisconsin complete 24 hours of continuing education credits with three of those being in ethics every two years. The IIAW provides unique and attention-grabbing courses through our partnership with ABEN. ABEN offers high-quality CE and professional development online webcasts. Now through the end of the month, you can receive 20% off online CE through ABEN with code SUMMERCE. 

Last, but certainly not least, we offer employee training through MyAgencyCampus. MyAgencyCampus offers employee training ranging from insurance basics, specific job roles or even specific business skills. A few bundles we'd like to mention are the Commercial Lines Coverage Basics which includes 25 courses in one bundle, their Introduction to Employee Benefits Insurance Basics and the Personal Lines Coverage Basics. MyAgencyCampus has these bundles and so much more (four pages worth of courses) that you can take to enhance onboarding new employees. 

To learn more about the educational opportunities we offer IIAW members, visit iiaw.com/education.

Insureds Need Help Avoiding Home-Renovation Risks

According to NU Property Casualty 360, "Over a third of homeowners in the U.S. and Canada embarked on renovations during the last year." With the number of homeowners starting home renovations, it's a great time to help them avoid the risks of renovation. [Home renovation projects] "are a chance for home insurance agents to step up for their clients, who may not realize the high chance that their property may sustain water damage during a renovation, or that certain updates, such as finishing a basement or installing a swimming pool, will require additional coverage. One great way to put yourself front-of-mind for your clients is by utilizing your social media sites. IIAW members have access to Trusted Choice's Content to Share. Trusted Choice puts together graphics and captions that you can use on your social media page, and they have great reminders for your social media followers to reach out to you when considering home renovation.

100 Million People in U.S. Saddled With Health Care Debt

Benefits Pro has reported that, "6 in 10 working-age adults with coverage have gone into debt getting care in the past five years, a rate only slightly lower than the uninsured." A nationwide poll from KFF found that about 1 in 7 people said that they've been denied access to a hospital, doctor or other provider because of unpaid bills. "Patient debt is piling up despite the landmark 2010 Affordable Care Act. The law expanded insurance coverage to tens of millions of Americans. Yet, it also ushered in years of robust profits for the medical industry, which has steadily raised prices over the past decade," according to Benefits Pro. This article from Benefits Pro goes in depth about the the KFF Health Care Debt Survey and additional research conducted by the Urban Institute. Read more from this article here. 

For more news, check out the Action News section of our weekly e-newsletter, Big I Buzz. If you aren’t subscribed, click here to add your email to our emailing list.