By: Mallory Cornell | IIAW Vice President & Director of Risk Management

Do you ever wonder what types of errors are most often the cause of E&O claims? Does high occurrence also mean high costs? In a recent review of E&O claim data from our partners at Swiss Re Corporate Solutions, it was found that Wisconsin insurance agents incur the highest claim costs from failing to recommend coverage, but that’s not the most common type of error in the state. In fact, only about 7% of Wisconsin E&O claims arose from failing to recommend coverage.

The data shown in the tables is provided by Swiss Re Corporate Solutions and captures claim information from January 2015 - December 2019.

While we can only speculate specific reasons for why certain error and omission allegations are more prevalent in Wisconsin than nationally, we can learn from this information and use it to improve agency operations and employee E&O awareness.

For   example,   if   28%   of   E&O   claims   in   Wisconsin   are   due   to   failing   to   procure coverage   then   agencies   should   have   a   heightened   awareness   around   agency workflows to review applications and policy information. Failing to procure coverage is often the result of missing one of more aspects of the insureds request. It might be an additional vehicle or adding an endorsement for requested coverage. As the data shows, these types of errors can also be costly accounting for about 22% of incurred claim costs.

The team at the IIAW provides continuing education, valuable storytelling, and increased E&O awareness for member agencies. In Wisconsin, we are legally required to procure coverage requested or inform the customer if coverage cannot be obtained (also known as “order taker” status). However, almost every agency has a requirement to do more than this because of the special circumstances that exist in the relationship with a customer. A special relationship is easier than ever to argue in court. With social media and websites stating services, qualifications, and promising coverage reviews, you likely have a higher duty to your customer than what you might expect. This is not always a negative, but everyone in the agency needs to be delivering the same level of customer service for each insurance transaction. Do what you say and say what you do. Seems simple enough, but oftentimes our statements and promises can get away from us.

So, what can the IIAW do to help? Our commitment to offering services for agency exposures is ongoing. As your E&O insurance provider and dedicated team of agency risk management professionals, we offer E&O Risk Management classes, Agency Operational Improvement Reviews and one-on-one support to review agency workflows and customer experiences.

Protecting your future and your agency from a costly E&O claim is important to us. You are always invited to reach out to any IIAW team member with questions about agency operations or E&O risk mitigation services through the Association.

Happy Wednesday and welcome to the month of March. In this week's Big I Buzz, we're discussing a few upcoming events that you won't want to miss, how insurance agents can avoid being victims to hackers and the Join Task Force on Payroll Fund and Worker Misclassification's recommendations for Gov. Evers. 

Upcoming Events to Put on Your Calendar NOW:

InsurCon2021 - August 10-11, 2021

Join us August 10-11 at the Kalahari Resorts & Convention Center in Wisconsin Dells for our safe, in-person convention.The Kalahari is home to Wisconsin's largest indoor waterpark and brand new events and convention center. You won't want to miss our keynote speaker and Hall of Fame quarterback, Joe Theismann! Our other amazing speakers include Beth Ziesenis and Bill Pieroni.

Beth Ziesenis

Beth, a.k.a. your nerdy best friend, has authored six books, and she keeps up with the latest technology to educate and entertain attendees with the fast-changing world of technology.

Bill Pieroni

Bill is the President & CEO of ACORD, the standards-setting body for the global insurance industry. His career has spanned technology, operations and top executive roles at several top insurers, brokers and consulting firms. Bill's areas of particular expertise include digitization, change management and the strategic and capability imperatives for a high performance in the insurance industry.

We will be following all safety guidelines outlined by the Kalahari, the Wisconsin Department of Health Services and the CDC. As guidelines evolve as we move closer to the event, we will be clearly communicating any requirements or changes as we approach InsurCon2021.

Registration will be opening soon! Keep an eye out as we continue to release new information about the schedule of events. If you have any questions about InsurCon2021, please visit iiaw.com/insurcon2021. Exhibitors can reach out to our Membership & Event Coordinator, Andrea Michelz, (andrea@iiaw.com) for more information. 

Big "I" Virtual Legislative Conference - April 13-16, 2021

The Big "I" has your back, especially in uncertain times. While you are helping your clients, the Big I team is working around the clock to protect your industry. Join us from the comfort of your computer or mobile device, and get up to speed on the many legislative, regulatory and legal challenges to your profession happening now. Hear from legislators, carriers and industry leaders and walk away with a plan to help you lead the way and protect your industry. 

Schedule of Events: 

Tuesday, April 13th at 1 p.m. CST:
Congressional Leaders: Agenda for Small Business

Wednesday, April 14th at 1 p.m. CST:
Legislative Update: A Briefing from the Hill

Thursday, April 15th at 1 p.m. CST: 
Capitol Hill: Messages from the Middle

Friday, April 16th at 1 p.m. CST: 
Conversations: Industry Leaders and National Commentators

Hackers Targeting Insurance Agents

There has been an increase in the number of insurance agents being targeted by online hackers. According to Steve Anderson, "Hackers have been systematically tracking and collecting the email addresses of insurance agency employees. They are now targeting the passwords used by insurance agency employees, and data shows that in some cases, passwords can be acquired. When successful, hackers can access the quote applications. Phishing emails are sent to consumers using false company identity, email addresses and insurance company logos to collect additional information." 

Steve recommends taking these steps to avoid hacking, 

Agencies should use a password management program for every computer in the office (or at home for remote workers), so that every employee can have a complex and unique password for every site. 

Next, inform employees of the potential for suspicious emails. Before anyone clicks on a link, they should understand where the link will actually lead to. "In Outlook, you can do this by hovering your mouse over the link. A small pop-up will show the actual link address. If it looks suspicious, delete it," Steve says. 

If the link looks legitimate, you can then type the link address into your browser rather than clicking the link within the email. 

Finally, head to the IIABA's website to download the latest Agency Cyber Guide to forward to all of your employees. Follow-up with a short meeting to emphasize the importance of protecting client information. For more information click here. 

2021 Joint Enforcement Task Force on Payroll Fraud and Worker Misclassification Report

The Joint Task Force on Payroll Fraud and Worker Misclassification submitted its annual 2021 report with a series of recommendations to Governor Evers this week. A number of recommendations, including establishing an Insurance Fraud Bureau, would impact Workers' Compensation and would require the Legislature to pass enabling legislation in order for them to be enacted into law. It remains to be seen whether the Legislature will act upon recommendations from the report. For a full list of task force recommendations, head to page 8 of the report 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.

Happy Wednesday! We are closing in on the start of March, and that means spring is on its way (eventually). In this week’s Big I Buzz, we are discussing the uninsured rate among young adults, the top risks facing the technology sector in 2021 and the best retirement spots for insurance pros, according to Property Casualty 360.

A Medicaid expansion is largely to thanks for the number of young adults without health insurance plummeting between 2011 and 2018. According to Inquirer, its not unusual for young adults to historically have high uninsured rates because they’re less likely to have full-time jobs that offer insurance and can’t afford a plan on their own. Healthy young adults might not see the value in purchasing insurance if they don’t use medical services frequently. “But between 2011 and 2018, the uninsured rate among adults age 19 and 25 fell by nearly half - from 30% to 16% - as many gained coverage under Medicaid or through the ACA marketplaces, with help from income-based tax credits, according to the Urban Institute report. The ACA also made more young eligible adults stay on their parents’ insurance by raising the age to 26, though that’s no help if the parents are among the pandemic unemployed. You can read more about this report here.    

The Top Risks Facing the Technology Sector in 2021

Willis Towers Watson has released a new report warning that the move towards economic nationalism is causing “increasing concern” to the technology sector and may result in lasting impacts on supply chains and IP. According to the report, these are the top risks to the technology sector in 2021: 

• Political aftershocks of COVID-19
• Political uses and abuses of technology
• European Union tech regulation
• Economic nationalism

Willis Towers Watson’s U.S. political risk product leader of financial solution, Laura Burns, said, “The technology sector will continue to develop and adapt, but its ability to work in a volatile business environment is critical.” Read more about the report here.    

12 Best States for Insurance Pros to Retire to in 2021

Approximately 400,000 insurance-industry employees are expected to retire from the workforce within the next few years, according to the U.S. Bureau of Labor Statistics. Unfortunately, due to the effects of the pandemic, 1 in 4 people expect to retire later than they anticipated. Affordability is a top concern for people when they retire, and some states are more affordable than others. For example, Hawaii’s cost of living index for retirees is 2.3 times higher than it is in Mississippi. 

WalletHub compared the 50 states across the key dimensions of affordability, quality of life and health care, evaluating those dimensions using 45 relevant metrics. We're partial to the fishing spots, golf courses and cheese we have here in Wisconsin, but here’s the top 12 states WalletHub suggests: 

• Missouri
• Wyoming
• New Hampshire
• Minnesota
• Utah
• Idaho
• Montana
• North Dakota
• Virginia
• Delaware
• Colorado
• Florida

You can see the full list from WalletHub 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. 

Happy Wednesday, it's hard to believe we are already halfway through February. Hopefully, this means warmer weather is on its way! This week we are discussing how feral cats uncovered ambiguous language in a rental dwelling policy, health insurance scams to look out for and how plaintiffs in some states are defying insurer winning steak in COVID lawsuits. 

Feral Cats Uncover Ambiguous Language in Rental Dwelling Policy

The owners of a residential rental property, the Goldbergers, filed a claim for $75,000 worth of coverage after their tenant "allowed" feral cats to "access" the property and cause "accidental damage." The Goldbergers had a rental dwelling policy through State Farm. State Farm denied their claim, citing an exclusion in the policy for damage caused by "domestic animals." The Goldbergers disagreed and sued State Farm, alleging breach of contract and insurance bad faith. According to NU Property Casualty 360, "State Farm argued that the denial was appropriate under the policy exclusion, which provided that accidental losses caused by "birds, vermin, rodents, insects or domestic animals" were not covered and the insurer filed a motion to dismiss. The superior court granted the motion, reasoning that a cat, feral or not, is a domestic animal. "The feral cats were action as if they were domesticated, and a reasonably intelligent insurance consumer would understand the exclusion unambiguously apply to damage caused by feral cats. The Goldbergers filed an appeal." 

NU Property Casualty reported that, "On appeal, the court began by concluding that the term "domestic animals" as it was used in the policy was ambiguous because there were at least two conflicting interpretations that were both reasonable. The court noted that under a species-based definition, the animal's species is dispositive, meaning that its current habitat and whether a human provides care for the animal is irrelevant, but under an individualized definition, the opposite is true. For example, a nontraditional animal such as a snake, monkey or bear in a home as a pet could not be considered a domestic animal under a species-based definition because those are wild animals but a bear could fall under an individualized definition if it was living with and being cared for by a human." Read more about how the court looked into the case here. 

State Sets New Vaccine Record Reports Another Day of Fewer than 1000 New Coronavirus Cases

The latest numbers from Wisconsin DHS show the number of people who have completed the COVID-19 vaccine series within the past 24 hours has broken another daily record. It's expected that Wisconsin could reach 1 million "shots in the arm" of COVID-19 vaccines early next week, including first and second doses. This new record comes as confirmed cases of COVID continue to decrease. The 7-day average fell to 806, which is the lowest 7-day average since September 5th. Read more here. 

OCI Press Release: Insurance Commissioner, DATCP Warn Wisconsinites to Watch for Health Insurance Scams

Wisconsin Insurance Commissioner Mark Afable and Department of Agriculture, Trade and Consumer Protection (DATCP) Secretary-designee Randy Romanski are urging Wisconsin consumers to be wary of robocalls and suspicious sales calls ahead of the new Enrollment Period on Healthcare.gov. 

"No one from the government will call you about health insurance or ask you to verify your Social Security number or financial information," said Secretary-designee Romanski. "If you receive a suspicious call soliciting private information, don't respond and hang up." People can call the Consumer Protection Hotline at 800-422-7128, email DATCPHotline@wisconsin.gov, or visit datcp.wi.gov to file a complaint if you believe that someone is attempting to scam you.

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 and conversation by joining the IIAW's Online Community, exclusively for IIAW members. You can join the Online Community here. We hope that everyone has a great rest of their week! 

Happy February! Yesterday, Sun Prairie's Jimmy the Groundhog predicted an early spring, so we'll take his word over six more weeks of winter as predicted by Punxsatawney Phil. In this week's Big I Buzz, we are discussing the new OSHA workplace safety guidelines, the just-released rules for the Tokyo Olympics this summer and the 10 "least reliable" cars on the road in 2021. 

OSHA Issues COVID-19 Workplace Safety Guidelines

The new guidance from the OSHA seeks to protect all types of workers, not just the ones who are deemed to be at higher risk of contracting the virus depending on where they work. It also asks employers to shield workers from retaliation if they complain about the conditions and sets up ways for them to voice complaints anonymously. The new OSHA guidance wants employers to give workers a bigger say in developing safety protocols. 

Much of the guidance released on Friday, January 29th are similar to guidelines from the Trump administration. Many workplaces have already adopted the guidelines, like those asking workers to keep at least six feet away from each other and asking workers to wear face masks. Read more of the guidelines here. 

Olympic Officials Unveil Rules on Masks, Singing, Transport for COVID-19 Games

The Tokyo Games are planned for this summer, and Olympic officials have unveiled their new COVID-19 rules. These rules have banned singing and chanting during events, participants are mandated to wear a mask at "all times" unless they are eating, sleeping or outdoors. The new rules have also pushed to barr international federation officials and staff from using public transport without permission, a move that they will hope will ease the Japanese public's concerns about hosting the Olympic games during a pandemic. Read more about the rules and the Summer Olympics here. 

10 Least Reliable Cars on the Road in 2021

Consumer Reports has released its list of newer-model vehicles with the greatest risk of problems. CR surveyed over 300,000 car owners on their vehicle's performance and the study examined 17 different trouble areas from basic nuisances such as squeaky brakes to significant issues like out-of-warranty repairs. Only vehicles with the latest model years of data were considered for this list. Here's what they found: 

1. Chevrolet Silverado 1500 - Consumer Reports gave this car a reliability score of 13. 

2. 2021 Subaru Ascent - CR awarded this vehicle an 18 or reliability. 

3. 2021 Volkswagen Atlas - CR didn't place this one much higher than the Subaru Ascent, sitting at a reliability score of 19. 

4. 2021 Jeep Compass - Slowly moving up on the CR ratings, the Jeep Compass has a reliability score of 21.

5. 2021 Volvo XC90 - CR gave this vehicle a score of 26. 

6. 2021 Chevrolet Colorado - Tied with the Volvo, the Chevy Colorado was given a 26 reliability score. 

7. 2020 Tesla Model S - At a three-way tie, this Tesla also was given a 26.

8. 2021 Jeep Wrangler - Consumer Reports rated this a 27 for reliability. 

9. 2021 Ford EcoSport - 28 reliability score

10. 2021 Volvo XC60 - Tied with the Ford EcoSport, the Volvo XC60 also received a reliability score of 28. 

Read more here: https://www.propertycasualty360.com/2021/02/01/10-least-reliable-cars-on-the-road-in-2021/

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 and conversation by joining the IIAW's Online Community, exclusively for IIAW members. You can join the Online Community here. We hope that everyone has a great rest of their week!