in this issue >>>
-Save the Date
-Jolly Holiday Lights
-4 hrs. FREE CE
-Access the Coalition Cyber Center
and more. . .
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Agent Newsletter October 11, 2022 |
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IIAI 2023 Rural Agents Conference will be held at the Des Moines Airport Holiday Inn. A great line up of speakers and company sponsored hospitality suites will be available for all of you to attend.
Planning is currently underway so stay tuned for further updates!
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The Big I Employee Benefits Program | Full Service Group Benefits for Member Agents |
Our program is underwritten by The Guardian Life Insurance Company of America, a multi-line insurance group with many years of experience in the business and administered by a dedicated service team just for Big "I" Members. Offering Group Life, Group Short & Long Term Disability, Group Dental and Group Vision, the program offers varying lines of coverage options to meet the diverse needs of our members and also provides guaranteed issue with certain requirements being met. Whether you are a new member or an existing one, we quote and add coverage on a continuous basis.
To obtain a quote, please click here for the census form.
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Bob Rusbuldt, president & CEO of the Independent Insurance Agents & Brokers of America (the Big “I”), has appointed Charles Symington to the role of executive vice president, effective Oct. 1. Since 2016, Symington has served as senior vice president for external, industry and government affairs.
Last week, Rusbuldt announced he will retire on Aug. 31, 2023 and that Symington will succeed him at that time. This new title for Symington will be an interim role as he prepares to take over as the top executive on Sept. 1, 2023.
“I speak for the Big ‘I’ Executive Committee and entire Board of Directors in saying that we are excited to work with Charles in this new position over the next year, and then as president & CEO after that,” says Big “I” chairman John Costello of USI Insurance Services in Rochester, New York. “Charles brings so much wisdom and experience to this new role and he will be well prepared to take over the helm of the national association next fall, ensuring a smooth transition when Bob Rusbuldt steps down.”
As executive vice president, Symington will play an integral role in the day-to-day operations of the national association and in various initiatives with the Big “I” state associations and other affiliate organizations. He will also continue to serve on the Big “I” Management Operating Committee, which advises the president & CEO on general oversight and administration of the association.
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Trusted Choice® is the national marketing brand created exclusively for Big "I" members to help consumers understand the value that an independent agent offers. This is not a market access program but a brand that is designed to highlight the strengths of independent insurance agents. |
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Senate Passes Government Funding Bill, Big I Supported Policies Included |
The U.S. Senate passed legislation that would fund the government through Dec. 16. The legislation would also reauthorize the National Flood Insurance Program (NFIP) for the same period and included the Big “I"-supported “Hermit's Peak Fire Assistance Act."
The legislation is projected to be passed by the U.S. House of Representatives later this week and President Joe Biden is expected to sign it into law ahead of the Sept. 30 deadline. The enactment of this short-term federal government funding legislation until after the mid-term elections is meant to give federal policymakers more time to complete negotiations on an agreement to fund the federal government into 2023.
Although there is widespread agreement that a long-term reauthorization of a reformed NFIP is needed, allowing the program to lapse during hurricane season would be devastating to policyholders across the nation who are seeing an increasing number of severe flooding events in recent years.
The first priority for the Big “I" is to avoid a lapse in the program. Moving forward, the association looks forward to continuing to work with Congress and the administration to enact a long-term reauthorization of a modernized program that would increase take-up rates for flood insurance, both in the NFIP and in the private market.
The government funding package also included the “Hermit's Peak Fire Assistance Act." In April, the Hermit's Peak Fire merged with the Calf Canyon Fire to create the largest wildfire in New Mexico's history. The wildfires started from an approved prescribed fire planned by the U.S. Forest Service in the Santa Fe National Forest. The federal government has accepted responsibility for the wildfire.
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Congratulations to the Iowa Insurance Hall of Fame 2022 Inductees!
Join Iowa’s insurance industry leaders as we recognize those who have made a lasting impact on our industry.
Tuesday October 18, 2022
5:00 p.m.
The Meadows Event Center, Altoona, IA
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Commissioner Ommen Signs New Workers Compensation Rates |
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Commissioner Ommen recently signed an executive order approving the proposed rate decreases by the National Council on Compensation Insurance (NCCI). The rate filing proposes an overall rate change in voluntary and assigned risk rates of -8.1%. The decreases apply to the current rates that that will take place on January 1, 2023. |
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Join us as Make-A-Wish® Iowa celebrates Jolly Holiday Lights. IIAI is once again offering carload tickets to members to attend this event for FREE! Jolly Holiday Lights began in 1995 as an event to raise money to grant wishes to Iowa kids. This year, they celebrate their 27th anniversary.
Bundle up the family and enjoy more than 100 magical light displays during a 2.5 mile drive.
The event takes place November 25th – January 1st, 2023 (excluding December 24 & 25 and December 31st) and runs nightly from 5:30 p.m. – 10:00 p.m. at Adventureland Resorts, 3300 Adventureland Drive, Altoona, IA. Make sure to check out the display that IIAI is sponsoring! Information on how to receive your free tickets will be coming soon.
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Hurricane Ian: Donate to the Trusted Choice® Relief Fund |
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Hurricane Ian made landfall on the southwestern coast of Florida, and the Trusted Choice® Relief Fund is accepting donations and grant applications to support those dealing with its aftermath.
Crashing ashore as a Category 4 hurricane with torrential rain and winds of up to 150 miles per hour, Hurricane Ian was on the precipice of being categorized as a Category 5 hurricane. While the storm is expected to weaken today and through to the weekend, residents in central Florida could still experience hurricane-force winds.
The most damaging winds hit a rapidly developing coastline where the population has jumped sevenfold since 1970, according to the U.S. Census. At least 2.5 million people in Florida were ordered to evacuate while 2 million homes and businesses were without power.
“As this hurricane cuts a path of destruction across Florida, our thoughts and prayers are with our agents and brokers, their staff members, families and clients who will be affected by the devastation," says John Costello, Big “I" chairman and vice president and construction practice member at USI Insurance Services in Rochester, New York. “We stand ready to help financially through our fund so that we can support our members as they are working hard to help their customers through their greatest time of need."
Funds provide Big “I" state associations and member agencies and brokers with financial support for immediate or ongoing needs when other resources are not available, filling the gap until other funding sources become accessible. The fund also provides insurance agents with supplies and resources to aid victims and surviving family members in their communities.
Established by the IIAA Educational Foundation in 2007 as a 501(c)(3) non-profit entity, the fund distributes cash grants to victims and surviving family members of natural disasters. Contributions are tax-deductible to the extent permitted by law.
In an already troubled insurance market, the hurricane could have long-lasting effects beyond the enormous physical property losses. However, the Big “I" will continue to support consumers, agents and the wider insurance community.
“The weeks and months ahead will undoubtedly create huge implications for Florida's already challenging insurance market," says Bob Rusbuldt, Big “I" president & CEO. “We look forward to working with many industry stakeholders, including carriers, the Florida Association of Insurance Agents—our Big 'I' state association—and others to help our agents address the insurance needs that Florida consumers and businesses will have in the future."
“The Florida Association of Insurance Agents will have the Trusted Choice relief team and van throughout Southwest Florida assisting our agents and their clients with the resources they desperately need, and our national association will be coordinating closely with them to provide the necessary resources," he added.
Hurricane Ian is one of the most ferocious hurricanes to make landfall on the U.S. mainland. Hurricane Michael came ashore in Florida's panhandle in 2018 with steady winds of 155 mph, while Hurricane Ida landed in Louisiana with winds of 150 mph last year.
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Big I and Reagan Consulting Release 2022 Best Practices Study Results |
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As the independent agency channel moves past the coronavirus pandemic and into uncertain economic headwinds, Best Practices agencies achieved record highs in organic growth and profitability, according to the 2022 Best Practices Study by the Big “I" and Reagan Consulting.
The Best Practices update is the first one in its three-year cycle, examining the firms that newly qualified as a 2022 Best Practices Agency. The annual study, conducted jointly in a longstanding partnership between the Big “I" and Reagan Consulting for the past 29 years, provides critical performance benchmarks in six agency revenue categories ranging from under $1.25 million to over $25 million.
“The past few years have brought challenges for independent agencies and their clients, but top-performing agencies have demonstrated resiliency as they've weathered these obstacles to grow their businesses and even break study records in numerous categories," says Chris Boggs, Big “I" vice president of agent development, education and research. “These industry leaders are setting the bar and demonstrating the independent agency channel has never been healthier."
The Best Practices Study analyzes takeaways from nominated Best Practices firms throughout the nation that have been recognized for outstanding management and financial achievement in categories such as income and expense distribution; revenue and profitability growth; sales and service staff compensation and productivity; technology expenses; and property-casualty and life-health carrier representation.
“Best Practices agencies are writing the playbook for success, and agencies can look to these strategies to guide them toward operational excellence as they seek to better serve their clients," says Tom Doran, a partner with Reagan Consulting. “As these industry leaders are setting the bar and demonstrating the independent agency channel has never been healthier, study results also indicate that an increased focus on producer recruitment and development is a must to maintain the industry's progress."
Key findings from the update include:
- Organic growth breaks Best Practices Study record. At 9.2%, organic growth was up 2.5 times from last year's results of 3.7%. Organic growth increased in all six revenue groups in this year's study.
- Profitability remained at all-time highs. At 26.2%, Best Practices agency profitability went up slightly from last year's 25.9% result.
- The Rule of 20 achieved a record high. The Rule of 20, calculated by adding 50% of profitability to organic growth, reached a record high in this year's study of 24 versus 18 in last year's study. The Rule of 20 is the best metric with which to gauge overall agency health.
- Sales velocity gained ground from last year. While a hard market continued to provide much of the organic growth lift, new business improved materially in this year's study. Sales velocity totaled 15.5% versus last year's 13.2%.
- Mergers & acquisitions bolstered growth. In the 2022 study results, 22.3% of Best Practices agencies acquired business, up from 16.4% in last year's study.
- Producer recruitment and development proves challenging. Net unvalidated producer payroll (NUPP), a measure of producer recruitment and development, remained at 1.1% of net revenues compared to 1.2% in last year's study. A healthy NUPP investment would be 1.5%-2.0%, an indication that agencies should consider redirecting a portion of today's record profits toward new producer investments.
- Shareholder and producer ages hold steady. The weighted average shareholder age (WASA) was 53.2 years, and the weighted average producer age (WAPA) was 48.6. Agencies should manage these two metrics carefully as lower WASA and WAPA are critical to long-term agency perpetuation.
The annual Best Practices Study began in 1993 as a joint initiative between the Big “I" and Reagan Consulting and studies leading agencies and brokers in the country to help independent agents build the value of their agencies.
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ABEN classes only - Register Here
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Access the Coalition Cyber Knowledge Base |
Big "I" Markets, the online market access system available exclusively to Big “I" members, has partnered with Coalition, the leading technology-enabled cyber insurance solution, to provide free cybersecurity tools and give agents access to cyber and technology errors & omissions insurance markets.
Did you know that Coalition has also published a free learning center available online to the public? These short, easy-to-read articles explain cyber insurance, provide step-by-step guides on where to start in the process of securing a business, how to secure emails, how to protect web applications, guidance on working with third parties and more.
Through the Big “I" Markets platform, any Big “I" member agency can quote and bind insurance online. Big “I" members also have direct access to Coalition's underwriters and renowned cybersecurity experts via online chat throughout the sales and underwriting process. Sales and educational resources include client-ready marketing, declination forms, a sample solicitation letter, claim examples and case studies, claim and limit calculators, free cyber risk assessments, pre-recorded cyber liability and cybersecurity training videos, and more!
Coalition is now admitted in 48 states and Washington, D.C., providing agents with a one-stop shop to place coverage for small businesses as well as the most complex risks in the surplus arena. Limits up to $15 million are available to U.S. risks generating less than $1 billion in revenue or gross profit.
Additional cyber coverage for your agency is available through the Big “I" Professional Liability program. Contact your state E&O program manager to learn more.
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Independent Insurance Agents of Iowa
4000 Westown Parkway, Suite 200
West Des Moines, IA 50266
515.223.6060 | 800.272.9312
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