Happy Wednesday! This week's Big I Buzz features IIAW's Annual Business Meeting on August 26, 2021, insurtechs with multibillion dollar valuations and how the potential government spending of $1.2T on infrastructure would impact the insurance industry.

IIAW's Annual Business Meeting - August 26, 2021

Join us for an overview of the Association's past fiscal year as presented by members of the IIAW Executive Committee at 10 a.m. on Thursday, August 26th 2021. This meeting is reserved for IIAW members only. Go here to register to attend.

7 Insurtechs with Multibillion-Dollar Valuations

A number of insurtech startups are coming to market through blank-check companies. Here are valuations of several that have announced special purpose acquisition company (SPAC) plans.



Read more here. 

Construction Constrained: Market Dynamics Under U.S. Infrastructure Plan

Insurance for the construction sector is already in a tough position. Supply is shrinking, but demand is rising as the economy advances in the late-COVID environment. Insurance capacity for residential homebuilders risk and excess liability are constrained following some large surety losses, and prices are rising in line with almost all other classes of business insurance. If the current bipartisan White House proposal to spend $1.2 trillion on U.S. infrastructure goes ahead — or even a bill for substantially less — the dynamics of the market will have to change dramatically if we’re to get all these projects covered.

Carriers that have historically been dominant are still present, but they’ve scaled down the availability of their capacity, the Terms & Conditions they apply, or both. Various Lloyd’s syndicates have also participated in many major U.S. construction risks, but the market’s new “performance management” regime means it’s reasonable to presume appetite will be shrinking there too.

With no sign yet of these changes being reversed, finding adequate cover for a trillion dollars worth of projects will not be easy. That said, the market environment may be at least somewhat different when the projects actually come on line, which for most will take a few years at least. By then, some of the traditional players may be willing to release more capacity to construction, and new players may have joined their ranks.

Read the full 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. We hope that everyone has a great rest of their week!

Happy Wednesday! This week we are discussing states with the highest flood insurance costs, coverage for future pandemics and Biden's executive order taking aim at noncompete agreements.

States With the Highest Flood Insurance Costs

Research from Valuepenguin.com reported the states with the highest flood insurance costs which are predominantly located in the Northeast and Midwest. The report also found that the national average cost of flood insurance is $734 annually. 

The top 10 states with the highest flood insurance costs are: 

• Vermont - $1512

• Connecticut - $1471

• Rhode Island - $1418

• Pennsylvania - $1305

• Massachusetts - $1294

• West Virginia - $1273

• New York - $1152

• Ohio - $1151

• Maine - $1119

Wisconsin narrowly missed the top 10, ranking #18 on the list. However, Wisconsin ranked #49 for one of the least insured states with a 0.7% ratio of active flood insurance. 

See the full report from Valuepenguin here: https://www.valuepenguin.com/average-cost-flood-insurance#high

 Is this the only way to cover future pandemics? 

High-profile members of the global P&C reinsurance industry are calling on government help in absorbing extreme losses from pandemic events, especially when it comes to business interruption. There has been increased contention around BI coverage after the mandatory closure of non-essential businesses. According to Insurance Business Mag, "Commercial insurance policies and traditional BI policies typically do not offer coverage for BI or supply chain disruption due to a pandemic such as COVID-19. Generally, BI insurance will only trigger if there is a direct physical loss to property - unless there is unique language written into the insurance contract that deems otherwise."

With evidence worldwide showing successful public-private partnerships to handle other potentially systemic exposures, like terrorism or flood, it's leaving some to wonder what the solutions could look like from a pandemic perspective that could address gaps in insurance policies like business interruption. Read more about the members who are interested in government-supported programs here. 

Biden Executive Order Takes Aim at Noncompete Agreements

A new executive order from Biden would "narrow the use of noncompete agreements to include only necessary instances of a dissolution of a partnership or the sale of a business. The legislation would also place the enforcement responsibility on the FTC and the Department of Labor, as well as create a private right of action. Notably, the legislation would require employers to make their employees aware of the limitations." Noncompete agreements are receiving scrutiny across the aisles and a number of states have enacted measures that restrict their use. Read more about the executive order 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. We hope that everyone has a great rest of their week!

July 12, 2021 - Madison, Wisconsin - The Independent Insurance Agents of Wisconsin (IIAW) has ben announced as a 2021 Excellence in Insurance Education Award recipient. 

The Excellence in Education awards celebrate and recognize state associations who have made significant contributions to education for their members and the industry in key areas of class offerings, continuing education, professionalism, designation offerings, industry collaboration, planning, marketing and resources.

Big "I" will be recognizing the accomplishment at the Education Convocation during the 2021 Big "I" Fall Leadership Conference on September 29, 2021. 

To learn more about IIAW's educational offerings, visit www.iiaw.com/education. 

Happy Wednesday! In this week's Big I Buzz, we are discussing Fourth of July travel, upcoming webinars to add to your calendar and how offices are changing post-COVID. 

AAA Fourth of July Holiday Travel Forecast

AAA has released their Fourth of July Holiday Travel Forecast and we are seeing upward travel trends showing Americans are ready to get back to their vacations. Similar to Memorial Day weekend, there's an expected increase of travel for the Fourth of July. More than 47.7 million Americans will take to the roads and skies for the Fourth of July weekend (July 1-5), according to AAA. Not only will travel be up 40% compared to last year, but it's expected to be the second-highest Independence Day travel volume on record (behind 2019). 

Americans will be hitting the road, totaling more than 91% of holiday travel this upcoming weekend. Car travel will bll be the highest on record, despite the gas prices being at the highest compared to the last seven years.  AAA says that over 3.5 million Americans will travel in planes, up 2.2 million from last year. 

According to AAA, these are the top destinations for the Fourth of July weekend: 

1. Orlando, FL

2. Anaheim, CA

3. Denver, CO

4. Las Vegas, NV

5. Seattle, WA

6. Chicago, IL

7. New York, NY

8. Atlanta, GA

9. Boston, MA

10. Kahului, Maui, HI

If you're planning to head south towards Chicago for the weekend, prepare for a bit of traffic as Chicago is listed in the top 10 travel destinations for the weekend.  According to the AAA News Room, "INRIX, in collaboration with AAA, predicts drivers will experience the worst congestion heading into the holiday weekend as commuters leave work early and mix with holiday travelers, along with the return trip on Monday mid-day."

Upcoming Webinars to Add to Your Schedule:

The IIAW, in partnership with Godfrey & Kahn, has produced the below webinars to help you navigate upcoming changes within the insurance industry and how these changes will affect you.

Cost for each of these webinars: $99/person

Webinar: Agency Privacy Officer - Duties & Legal Overview

Join attorneys Josh Johanningmeier and Sarah Sargent from Godfrey & Kahn S.C as they provide independent agents with a detailed overview of the duties and legal requirements for an agency privacy officer. Every agency must adhere to specific requirements found in the Health Insurance Portability and Accountability Act (HIPAA) and the Gramm-Leach-Bliley Act in addition to NAIC and state-specific requirements. As these laws continue to pass and grow in complexity, there are policies that every insurance agency must follow regardless of size or location.

This webinar is available on the following dates:

• 9AM-10AM on Thursday, July 1st
• 11:30AM-12:30PM on Friday, July 9th
• 2PM-3PM on Wednesday, July 14th
• 10AM-11AM on Thursday, July 15th

Webinar: New Disclosure Requirements for Brokers/Consultants

Attorneys Josh Johanningmeier and Todd Cleary of Godfrey & Kahn, S.C. provide legal direction and guidance regarding new disclosures under Consolidated Appropriations Act. These new rules apply to compensation paid with respect to a covered plan to a covered service provider. Listen in to learn what the term "compensation" includes, how a "covered plan" is described and who is included in "covered service provider". Additional details such as advance disclosure requirements, required disclosures and requirements for plan fiduciaries will be important topics of discussion.

• 2PM-3PM on Thursday, July 1st
• 10AM-11AM on Friday, July 9th
• 12PM-1PM on Wednesday, July 14th
• 12PM-1PM on Thursday, July 15th

Offices After COVID: Wider Hallways, Fewer Desks

As more and more employees are returning to work, they're seeing a different office setup than when they first left. The move back into offices is being focused on socialization within their work spaces. 

Associated Press reported, "Surveys show the thing employees miss most about office work is socializing and collaborating with colleagues, said Lise Newman, workplace practice director at architecture firm SmithGroup. Companies are trying to encourage that rapport by building more social hubs for employees. Some mimic coffee houses, with wood floors, booth seating and pendant lamps. "Companies are trying to create the sense that this is a cool club that people want to come into," Newman said."

In addition to adding in social workspaces for employees, businesses are also creating more private spaces so those who need time to work on their own, have that sense of privacy they received while working from home. New York company, Valiant Technologies, has removed rows of desks and put more space between the remaining ones. They're encouraging a hybrid work environment, where employees have a desk to return to when they work in the office. Read more from the Associated Press story 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. We hope that everyone has a great rest of their week!

We are back with another week of Big I Buzz. In this week's Big I Buzz, we are discussing OSHA's new COVID-19 emergency temporary guidance for all workplaces, the future of passwords and the results from a new J.D. Power study on auto insurance customer satisfaction.

OSHA Issues COVID-19 Emergency Temporary Standard for Health Care Workers and Guidance for All Workplaces

On June 10, 2021, OSHA issued an Emergency Temporary Standard relating to COVID-19. According to Godfrey & Kahn, "Since the beginning of the COVID-19 pandemic, OSHA has exclusively relied on existing safety standards to regulate employer conduct during the COVID-19 pandemic. Consequently, all of OSHA's previous employer directives, to date, have taken the form of non-binding informal guidance and recommendations." President Biden issued an Executive order on January 21, 2021, directed towards OSHA to consider implementing "any emergency temporary standards on COVID-19 and that these standards should be released by March 15, 2021.

OSHA updated their existing COVID-19 guidance for all workplaces on June 10, 2021. The new guidance says: 

• Encourages employers to grant paid time off for employees to get vaccinated

• Suggests that employers provide unvaccinated and at-risk workers with face coverings or surgical mask at no cost

• States that workers should continue to wear face coverings while working indoors

• Recommends that employers, especially public-facing workplaces such as retail environments, "suggest" that unvaccinated customers, visitors or guests wear face coverings when entering the workplace. 

Read more about the new guidance here. 

Forgotten Your Passwords? They Soon May Be Lost Altogether - with Insurers' Help

 Scary enough, the most popular password used in 2020 was "123456". Passwords like this were easily cracked almost 24 million times throughout the past year. According to Insurance Journal, "This data perfectly encapsulates the flaws inherent in passwords, and why it is easy to predict that it won't be too long until passwords are phased out altogether." A 2017 Verizon Data Breach Investigations Report found that 80 percent of cyber breaches were the direct result of stolen or hacked passwords. 

Biometric data which is used for unlocking our phones, paying for groceries, speaking to our bank and entering the country has caused a push for app developers to incorporate biometrics to enable users to bypass passwords altogether when accessing online accounts. According to Insurance Journal, "The phasing away from passwords to biometric data represents a shift away from "something you have" to "something you are", and this shift is welcome. Thanks to biology, our biometric data is nearly impossible to phish, guess or hack. While biometrics aren't infallible, attempts to hack biometrics are largely only attempted by some of the more sophisticated criminals, meaning the prevalence of this threat is minimal when compared to the threat facing our passwords."

Auto Insurance Customer Satisfaction Stalls Despite $18 Billion in Premium Relief, J.D. Power Finds

The auto insurance industry returned more than $18 billion in auto insurance premiums to customers in 2020 to address the sharp decline in miles driven during the COVID-19 pandemic. Despite this relief, the 2021 J.D. Power U.S. Auto Insurance Study found that customer satisfaction with auto insurers is flat, following four consecutive years of improvement. 

Here are the key findings of the study, according to Business Wire: 

•Overall satisfaction is stagnant: This is the first time since 2017 that auto insurance customer satisfaction has not improved year over year. 

• Insurers miss the mark in communication: There were significant declines in satisfaction with customer interaction. Satisfaction with the assisted online channel, is comprised of chat and e-mail functions, declines 12 points from a year ago, with decreases also seen in contact center, website and local agent.

•Customer awareness of COVID-19 relief efforts boosts brand perception: Overall brand impressions are significantly higher among customers who were aware of these relief efforts, which was also reflected in their intent to renew their policy. 

• Pandemic as catalyst to telematics growth: More than 1/3 of auto insurance customers say they are willing to try usage-based insurance which uses telematics technology to track customer driving patterns and includes discounts based on safe driving and fewer miles driven. 

• Ready to switch at hint of premium: Nearly half of auto insurance customers say they would switch if they could receive a saving of $200 or less. 

Read the 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. Don’t forget you can stay up-to-date on other industry news as its happening on our Online Community. You can join the Online Community (exclusive to IIAW members)  here  . We hope that everyone has a great rest of their week!