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.

By: Sally Kressin, Vice President of Product Management, American Modern Insurance Group, Inc.

 This article was featured in the January 2022 Wisconsin Independent Agent. 

In this historic home buying market, it can be easy for buyers to get overwhelmed or miss vital steps in the buying process. As an insurance agent, you can help buyers stay on track by educating them on topics such as the insurance impact of a home inspection and weather or resiliency risks for a potential property.

Buyers will be focused on putting together a competitive offer, not on the potential need or cost of specialty insurance. However, it’s important to also help buyers understand whether the property they are interested in buying requires specialty coverage prior to purchase.

When you talk with buyers to determine what type of coverage they need for their home, discuss the factors that go into calculating the possible rate. It is also important to discuss how variables, such as the type of home or intended property use, could impact the need for specialty coverage.

Here are four other ways that agents can help buyers understand different types of specialty coverages for their new home:

1) Discuss how planned occupancy impacts coverage. Buyers are focused on trying to secure the home of their dreams in an extremely competitive housing market, which could take their focus away from what coverage the property requires. Begin by explaining how the planned home occupancy can impact what coverage the buyers will need.

For example, if the home will be their primary residence, buyers will probably be eligible for a traditional homeowners policy, which would cover the home structure, personal belongings and more.

However, if the buyers plan to rent the home, they need to consider other options, such as a dwelling fire policy. You can also educate buyers on additional coverages like temporary or occasional rental coverage, as well as topics like liability limits and medical payment coverage. This coverage could help protect owners if renters are injured during their stay.

Also, discuss whether the buyers plan to list the property as a rental on platforms like Airbnb because there are often challenges in securing short-term rental coverage for the property. While it’s more difficult to secure short-term rental coverage for these kinds of properties because of the high traffic rate of renters compared to renting a home for a longer term to one party, it may be available as specialty coverage.

2) Review the different types of homeowners coverage. Buyers may overlook things that could impact their eligibility for standard homeowners coverage.

Explain what factors go into determining coverage, such as the location of the home, age of the roof, whether or not there is a pool, and other conditions that influence price, coverage type and coverage amount. Some of these factors, such as age, location, or claims concerns, could require specialty coverage.

Insurance agents know there are different types of homeowners coverage that can cover dwelling and personal belongings as well as different home types—but buyers might not think of that. Buyers might not know that there are different types of homeowners coverage for condos, manufactured, mobile and single-family homes.

Also, ask buyers if they are planning any renovations. If so, you can explain how the value change can be contemplated in the replacement cost calculation for homeowners insurance.

3) Explain what specialty coverage is needed for renovations or a vacancy. Speaking of renovations, buyers may not be aware of how renovations could impact their insurance.

If the buyers are planning to renovate the property, you can educate them on the differences between a builders risk policy and a vacant remodel policy. A builders risk policy will generally protect ground-up or new construction and building materials that are stored or in transit to the property. However, a builders risk policy will typically only apply to projects that take longer than six months to complete.

Planned vacancies are another component they should be aware of. Walk the buyers through the particular risks and different types of coverage for vacant properties, which will generally differ from a typical homeowners policy. In fact, standard homeowners policies generally don’t cover a property that has been vacant for more than 60 days.

A vacant remodel policy offers coverage for any remodeling or cosmetic project done at the home. This type of coverage is an alternative insurance option if the renovation will be completed in 30 days to six months. 

Similarly, a vacant or unoccupied policy will cover the property while it remains vacant.

4) Keep communication lines open. Establishing and maintaining an open line of communication with home buyers is critical and can help relieve their stress. You can keep the line of communication going by scheduling a biannual insurance review, by sharing relevant insurance content with the buyers on social media, or simply checking in on them with a brief phone call or email.

While the home buying process is stressful, buyers are lucky that they have you as a trusted insurance agent who can provide guidance, tactical tips and timely support during and after the home buying process. As is the case with any strong relationship, communication is key. Buyers need more than just insurance coverage, they need your expertise and dedication to help ensure they’re insured for the long run.

Happy Wednesday! In this week's Big I Buzz we are discussing how IIAW members can receive 1 FREE WI CE credit, newly-released InsurCon2022 details and 3 key 2022 trends for AI and P&C Insurance. 

Flood Risk Rating 2.0 Webinar

Join us on Thursday, January 20th for our Flood Risk Rating 2.0 webinar. This webinar is free for IIAW members, and the webinar has been approved for 1 Wisconsin CE credit. This webinar has been brought to you by the IIAW in partnership with Selective Insurance Company of America. Register here: https://buff.ly/3Ja7POC

InsurCon2022: You will not want to miss this event!

Our January 2022 magazine has newly released details about InsurCon2022. This year's convention will welcome our keynote speaker, Hall of Fame basketball legend, Bill Walton! Additionally, this year's format has been inspired by TED talks and will feature eight energizing speakers. Topics range from agency technology, cybersecurity and more. Check out this month's magazine for more information!

3 Key 2022 Trends for AI and P&C Insurance

NU Property Casualty 360 has put together a list of three key AI trends that are set to dominate the insurance industry in 2022: 

1. Wriggling away from on-premise - As the industry has faced the ongoing effects of COVID and undergone a major digital makeover, this year will be a pivotal year for accelerated movement towards the cloud. 

2. Creating value from new sources of data - With the movement towards more digital-based operations, the year will see newer sources of data from increasing ease of storage, access and processing of documents, voice recordings, interaction transcripts, behavioral data and IOT data. According to Property Casualty, all this new data will, "design new products and services, simplify distribution, improve fraud management especially in emerging areas such as cyber risk, reduce customer effort and reimagine business models."

3. Winning the war for talent - our weekly newsletter has been focusing on the increased demand for talent across all industries. The same goes for the insurance industry as all of these trends for AI will need talent to put them into place.

"The year ahead is set to be one of the headiest years for the insurance industry yet. However, through continuous dedication to digital transformation, insurers can find ways to not just adopt AI but use it in a way that drives incredible value for their business." Read more about these trends 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.