Happy Wednesday! It's officially spring, and although we've been dealing with some rain this week, the forecast is looking up. In this week's Big I Buzz we are discussing an upcoming E&O Risk Management class, how credit can affect auto premiums and the top states for alcohol consumption. 

E&O Risk Management: Less Risk. More Reward. 

Join us from 9 a.m. to noon on April 13 for a live virtual E&O course full of storytelling, statistics and E&O risk mitigation tips. This course is open to everyone and has been approved for 3 WI CE credits. These credits can not be awarded if this course was completed within the last two years. The course qualifies for 10% premium credit for Swiss Re E&O policyholders. Covered topics include: agency defenses to E&O claims (documentation, consistent procedures and exposures checklists), E&O claim statistics, E&O exposures when using social media and understanding standard of care and duty to advise. The webinar will be conducted via Zoom and everyone within an agency is encouraged to attend. Register for this course here. 

Poor Credit Can Affect Auto Premiums More Than Accidents

A new study from The Zebra has found that a bad credit score can affect your auto insurance premium more than having a  hit-and-run on your record. "Even drivers with squeaky-clean records can see their rates double if their credits tank."

There are a few states that have banned insurance companies from using credit scores to price or deny insurance policies and those are California, Hawaii, Massachusetts and Michigan. However, there are further bans being considered on using credit rating for insurance. According to NU Property Casualty 360, "For drivers with poor credit, The Zebra recommends the following tips to save as much as possible: 

• If you believe you're paying too much, don't be afraid to shop around for carriers. Some may be more willing to work with customers with less-than-ideal credit scores than others. 

• Make small improvements to your credit where you can.

• Take advantage of any discounts (for staying accident free, taking defensive driving courses, etc.) your carrier offers to lower your premium. 

• Even customers with decent credit should work to improve it in order to take advantage of even more savings. 

You can read more about this study here. 

10 U.S. States with the Highest Alcohol Consumption

World Population Review has ranked the top states for alcohol consumption. Compared to the rest of the world, the U.S. ranks 25th globally for alcohol consumption, with the average American drinking about 2.35 gallons of alcohol per year. Here's their findings for the top 10 states: 

10. South Dakota

9. Colorado

8. Wisconsin

7. Idaho

6. Vermont

5. Montana

4. North Dakota

3. Nevada

2. Delaware

1. New Hampshire

Wisconsin ranked #8 but reported quite a bit more alcohol-impaired driving fatalities than some of the other states higher on the list - reporting 183 fatalities just in 2019. DUI arrests were also high, with Wisconsin reporting 23,934 DUI arrests in 2019. 

Read more about the study 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.

If you’ve been active in the digital realm for a while, or if you grew up as a digital native (like me), you are likely aware of how awesome TED talks are and how popular they have become. But, on the other hand, if you are reading this and wondering what a TED talk is, let me break it down for you as it will help you better understand the format for InsurCon2022 on May 10, 2022 at the Kalahari Resorts in Wisconsin Dells. 

A TED talk is a short presentation, roughly 18 minutes long, covering topics such as technology, entertainment, strategy and more. You may be asking yourself, “Who is this guy named TED, and how is what you described any different than a typical speech at an event?” TED is a non-profit institution that partners with individuals (many of them famous) to assist in sharing ideas globally. Today, TED boasts a collection of thousands of TED talk videos, in more than 100 languages, from politicians to scientists to comedians and actors. Additionally, they add new videos day-in and day-out, so there’s never a shortage of engaging content. As an additional plus, each TED talk is available on their website or their YouTube channel for free. This means more ideas shared with more people and more conversations about the world around us. After all, we can all use a little encouragement to learn and grow The folks at TED definitely think so.

So, why does this matter and how does it affect you? Well, this year’s InsurCon will follow a similar format to TED talks during the day while paying tribute to an industry titan at night (more on that later). This TED talk style event will have each speaker taking the main stage to share their experience and insights with the entire audience. InsurCon will feature engaging speakers; Steve Anderson (Catalyit) talking about what agency technology you should be exploring, Kevin Bong (Sikich LLP), speaking on cybersecurity and recovery, Chris Calvelli and Michael Antonelli (Baird) discussing the economy and emerging from the COVID crisis, Charles Franklin (Marquette University) sharing state and national political polling data and insights into what to expect for the November election, Kelly Donahue-Piro (Agency Performance Partners) talking about how to create an amazing sales process, and finally Brian Kiley (West Bend Mutual) discussing factors that are influencing the purchasing of insurance online and what agents can do about it.

But wait, that’s not all…

We have also redesigned the exhibit showcase to provide attendees with ample opportunities to meet and network with vendors, carriers and others in an open format Exhibitor Showcase throughout the day.

Our Evening Entertainment will feature an awards ceremony, dinner, drinks, music and a keynote speaker as we pay tribute to SECURA CEO Dave Gross and welcome incoming CEO Garth Wicinsky.

Attendees will enjoy a gourmet plated dinner. We are very excited to announce NBA Hall of Famer and sportscaster, Bill Walton as our keynote speaker! We will also sit down and converse with SECURA CEO Dave Gross as he reminisces on his storied career. He will also be presented with the Association’s highest honor, the E.J. Tapping Lifetime Achievement Award. Finally, we will sit down with Garth Wicinsky and get to know him and his vision for SECURA as he takes over the helm.  We hope you will join us for what is surely to be another fantastic event full of learning, networking and paying tribute to one of the independent agency system’s biggest advocates, Dave Gross. Register now at iiaw.com/insurcon.

Happy March! Today's Big I Buzz will highlight our featured benefit of the month and we'll discuss how the Ukraine invasion could affect the insurance industry and safety tips for spring flood season.

This month's featured benefit: Agency Operational Evaluation

The IIAW offers a free Agency Operational Evaluation. The evaluation will ask you questions about your day-to-day operations and upon completion, you'll receive a customized report that connects you with the recommendations and resources to help your agency improve agency workflows, procedures and operational E&O exposures. Click here to learn more: https://www.iiaw.com/page/memberbenefits

AM Best: Ukraine Invasion to Likely Have 'Substantial Impact' on Insurance Industry

AM Best believes that Russia's invasion of Ukraine to add to inflationary pressures and will likely have a substantial impact on the global insurance industry. 

According to Insurance Journal, "The rating agency Friday said efforts by the global central banks and the U.S. Federal Reserve to contain inflation will be challenged. Plus, sanctions may have "severe knock-on effects" on oil and commodity prices as well as tourism and the economies of some of the world's less resilient countries. AM Best called sanctions a "two-way street." For instance, the U.K. and other European countries rely on Russia for gas, and there "is a very real concern that prices will skyrocket from already elevated levels." Sanctions could make it difficult for international insurers and reinsurers to underwrite Russian risks or service existing policy claims. According to AM Best, those affected most would likely be those writing large energy and infrastructure risks, such as London Market insurers and international reinsurers. 

As tensions increase, there could also be an increase in the risk of a systemic cyber attack. Read more about the effects here. 

February 28th through march 4th is Flood Safety Awareness Week and Wisconsin residents should be prepared for potential flooding. "According to Wisconsin Emergency Management Public Information Officer Katie Rousonelos, just six inches of water can carry away a person, and 12 inches can carry away a car. Cleaning out gutters and elevating utilities are two good ways to keep flood waters out of your home."  A great resource to share with your clients is Ready.gov. They have a detailed list about preparing for a flood, staying safe during a flood and staying safe after a flood. You can see Ready.gov's resources 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.

The Independent Insurance Agents of Wisconsin helps agencies gain access to useful insurance markets through its investment in Independent Market Solutions (IMS). This members-only program allows agents to quickly connect with carriers and find insurance products suitable for their clients’ needs.

IMS offers very competitive terms, and there is no cost to join. To start taking advantage of this exclusive member resource, you must complete IIAW's market access application. Before you begin the application, please make sure you have quick access to the following, which you’ll need to complete the process:

·       Agency and individual agent license numbers

·       Agency Federal Employee ID Number (FEIN)

·       Agency E&O policy information

·       Policy count information

·       Premium volume information

·       Agency and individual agent license numbers. Copies of the licenses will be required to upload. Please include a copy of all individual agent licenses (in one uploaded file) who would like access to the carrier’s quoting system.

A sub-producer agreement will also be required as part of the IMS sign-up process. After uploading the application, a link to the sub-producer agreement document will appear in your application confirmation email. Once you complete both steps, you will receive a copy of the application and sub-producer agreement.

Applications must be submitted separately for agencies that have branches with separate FEINs. To learn more about IMS and how to sign-up in your state, click here.

Good morning and happy Wednesday! In this week's Big I Buzz, we are discussing our new monthly newsletters and changes to Big I Buzz, emerging risks to watch this year and how to keep homeowners covered this Super Bowl Sunday. 

Don't Miss Out on our Monthly Newsletters

Starting next Monday, the IIAW will be sending out monthly newsletters with content curated just for you and your job role. We'll be putting together four monthly newsletters, and you can choose which newsletters best fit your role! You can choose from the following areas to receive our monthly newsletter: personal lines, commercial lines, employee benefits or industry relations and operations. Make sure you and your team are on our list to receive these communications here. We'll be including information tailored specifically to you and your job role, education opportunities that matter to you and other industry insights that you won't see anywhere else. 

We'll continue to send out our weekly Big I Buzz, but with a twist. Now, we'll be segmenting the Action News section between these four categories. You'll get the same news stories you know and love, but instead of in one jumbled section, you can read the news that matters to you! Then, in each of the monthly newsletters, we'll highlighted the most-read news article from your interest area in case you missed it the first time. 

Don't forget to sign up today! The first Personal Lines monthly newsletter will go out next Monday, February 14th, Commercial Lines will receive their newsletter on Monday, February 21st, Employee Benefits on Monday, February 28th and Industry Relations & Operations will receive their newsletter on Monday, March 7th. 

Emerging Risks to Watch this Year

Insurance Journal has examined 10 industry sectors to identify new and emerging risks for the year ahead and beyond. Watch these sectors and read more about why you should keep an eye on these risks: 

1. Cyber - with an increase in ransomware attacks, there are more cyber threats to be expected throughout 2022. 

2. Political Risk - Social media users taking to social media has increased large-scale demonstrations and protest movements, which could lead to an increase in property damage losses. Additionally, larger and more frequent natural disasters due to climate change can displace vulnerable populations and disrupt economics, which could lead to more political instability and violence, according to Insurance Journal.

3. Telemedicine - As more and more patients turn to telemedicine, plus an expected increase in telemedicine in 2022, health care providers can expect to see an increase in medical professional liability claims. According to RPS, these claims related to telemedicine has been "historically low", but the broker expects growth in the telemedicine segment will lead to more incidents."

4. Product Liability -A report from Willis Towers Watson's "Insurance Marketplace Realities 2021 Spring Update" stated "The pandemic has dramatically increased then umber of companies manufacturing, distributing and selling COVID-19 products, which has in turn increased the demand for life sciences insurance coverage.... Underwriters in the life sciences space have been "inundated" with policy submissions. And while capacity hasn't changed, carriers are being more selective about which risks they will entertain."

5. Mobility & Transport - Transportation continues to change as it's disrupted by the pandemic and technology. According to Insurance Journal, "The emergence of new digital companies that provide “wheel-based” services has accelerated the demand and growth of gig workers during the pandemic, Marsh said in a recent report titled “Mobility in a post-pandemic world: From evolution to revolution.”

Marsh said these trends will rapidly evolve for at least the next year, but insurance products designed to protect the income of these workers are lagging behind."

6. Entertainment -2020's overwhelming amount of event cancellations led to major losses for insurers and rates have risen across the board. While we are seeing a return for live entertainment, there's a shortage of experienced workers which could increase the potential for accidents and cancellations, according to a recent report by HUB International.

7. Commercial Real Estate - The future of office real estate is largely unknown and the insurance market for some multifamily classes remain a challenge, according to Insurance Journal. 

8. Management Liability - In 2021, the overall public company D&O marketplace continued to stabilize due to a significant decrease in federal securities class actions. "While pricing challenges remain for many D&O buyers, new capacity and new competition are finally on the way with new entrants to the D&O insurance market, according to Woodruff Sawyer's 2022 D&O Looking Ahead Guide."

9. Employer Liability - "Another situation to watch: in the face of resistance to vaccine mandates in the U.S., there may be an increase in retaliation and discrimination claims under the Americans with Disabilities Act and Civil Rights Act of 1964 (specifically, for religious discrimination), USI stated in its recent 2022 Commercial Property & Casualty Market Outlook.

10. Nonprofits - Nonprofits have experienced overstretched resources due to the pandemic. Their workforce took a significant hit but researches estimate the sector may not see a full return to pre-pandemic workforce levels until fall 2022. 

Read more here. 

Super Bowl Sunday - Keeping Homeowners Covered

Super Bowl Sunday is almost here and we are ready for football (and commercials)! Ken Gregg, CEO and founder of insurtech platform Orion180 shared that the biggest risk for party hosts surrounds liability. "Guests can potentially fall down the stairs, trip on something, or worse, get in their car to drive home under the influence," he said. "Many homeowners don't consider their exposures when hosting a party."

Ken suggests that brokers and agents should focus on communicating liability risk mitigation strategies with their clients. You can use your social media channels to get the message out to some clients. Share information about guest safety when hosting parties and encourage homeowners to reach out so they know what their insurance will cover. Read more 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.