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| July 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Welcome
From the Desk of the President & CEO
 I’ve been traveling quite a bit recently back and forth from Richmond to Newport News and back on family business. I-64 is my “favorite” road these days. However, I apparently missed a new law in the state despite the fact that we are participating in a DMV study on whether or not to legalize the practice of lane splitting by motorcyclists.
I know many of us were horrified by the events related to the Surfside Condo Collapse. Events are still unfolding, and the cause of the collapse will be studied by a wide range of professionals with a lot of debate over events leading up to the collapse. I recently saw and shared the following two articles on LinkedIn. The articles are written by Bill Wilson, CPCU – one of the premier insurance educators in America on form, coverage, and technical issues. Wilson was Founder and Director of the Big "I" Virtual University. The articles are reprinted with permission and copyright 2016-2021 by InsuranceCommentary.com
We would recommend that anyone who sells condo insurance review this information carefully. Wilson notes some unique aspects to Florida law that may govern, and we encourage members to contact IIAV with any questions related to Virginia. IIAV Member Resources
Built-In vs Stand-Alone Cyber Liability Insurance -- Far too many insurance agencies believe that their current business insurance, such as general liability or E&O policies, will cover the subsequent expenses that arise from a cyberattack.
While these add-ons are nice, don’t fall victim to a false sense of security and think you have adequate coverage. The damage from an attack can be a crippling blow to say nothing of the business interruption and potential harm to the agency’s reputation. A full 80% of businesses that experience a cyberattack do not recover.
 Warm, humid weather is here which means thunderstorms are soon to follow – increasing
your risk of exposure to flash flooding, even in areas not typically prone to flooding. Nearly 20 percent of flood claims occur in moderate to low risk areas that are not considered flood zones. Since flood insurance needs 30 days to take effect,now is the time to put the proper coverage in place to protect your future.
As we review our results from the first half, revenue is the first number many of us review. Revenue growth is a key part of a compelling agency success and value story, and it is an easy result for us to understand. But since agency value is typically a function of cash flow and risk, it is insightful to examine revenues a little more deeply; specifically to determine the quality of revenues. Think like a potential buyer. Does your revenue and book of business represent a different level of risk than in prior periods? Have changes to account retention, customer or industry concentration, or account development contributed to an increase or decrease in risk and therefore agency value? According to "Critical Factors Affecting Agency Value," account retention is the #1 driver of agency value. In the “Best Practices Agencies" report, the median account retention rate ranges in the 91.5% to 93.5% range depending on agency size. How do your numbers compare with this range? Next Steps. Think like a buyer. Take a deep-dive look at your revenues and determine whether a potential buyer may identify risk in your revenue results. What one or two opportunities for improvement can you identify and pursue to improve your agency success and value story? .png) Looking in all the wrong places? Need some help? Are you looking for a market for a hard-to-place commercial or personal risk, a specific product/service or a market for a book of business?
The IIAV can help! The members-only “Find A Market” feature allows you to make others aware of your need. We can then deliver your request to all participating IIAV Associate and MGA members. Upon receipt of your request, interested markets can respond directly and privately to you. Such a service will reduce the valuable time you spend searching for markets and provide value to IIAV Associate and MGA members. A new newsletter item this year, our Member Benefit Spotlight aims to help you build your agency using the tools at hand through Big "I" membership, by reminding you of benefits you may have forgotten about. If you need help finding the benefits most in line with the priorities of your agency, you can always contact IIAV’s Membership Director Don Bragg at dbragg@iiav.com or 804-747-9300.
The world of insurance is incredibly traditional. At times, this is a good thing. Independent agencies believe in the personal touch, forging deep, lasting relationships with clients. But, in other ways, relying on what’s tried-and-true is a hindrance, especially when it involves a lack of digitalization. Many independent agencies are slow to incorporate new technologies. While you don’t necessarily need to embrace every emerging solution that arrives, a lack of digitalization can hold you back. Not only can it cause you to spend more than you need to; it can also mean missing out on revenue-boosting opportunities.
When you're looking for technology solutions for your agency, turn to the Big "I" Agents Council for Technology.
The industry's leading technology experts provide blueprints on disaster planning, cybersecurity, customer experience, and other emerging trends to help your agency. Look to ACT when you are looking for best practices or if you want to influence the industry's technology direction, join an ACT meeting or virtual workgroup.
State & National News
The State Corporation Commission's (SCC) Bureau of Insurance reminds Virginians to make sure their summer to-do list includes checking with their insurance agent or company to ensure they have the appropriate insurance coverage in the event of an illness, theft or mishap.
RICHMOND – Although the arrival of summer means sun, fun and travel for many, it can also mean increased risks. Among other things, these risks can include stolen luggage and other belongings; collisions on busy highways; illness while away from home; backyard pool and grilling mishaps, or misadventures on boats, jet skis, recreational vehicles (RVs) and all-terrain vehicles (ATVs).
Effective Thursday, July 1, 2021, it will be illegal to intentionally release a balloon outdoors in Virginia. The civil offense is punishable by a $25 fine per balloon. The law provides that if a person under the age of 16 releases a balloon at the instruction of an adult, the adult is liable for the civil penalty.
TO: Insurers, Burial Societies, Fraternal Benefit Societies, Health Services Plans, Risk Retention Groups, Joint Underwriting Associations, Group Self-insurance Pools, and Group Self-insurance Associations Licensed by the Commission, Qualified Reinsurers in Virginia, Premium Finance Companies, and All Interested Parties RE: Order Adopting Rules to Implement the Requirements of the Insurance Data Security Act-INS-2020-00168 The State Corporation Commission has issued an order adopting Chapter 430 of Title 14 of the Virginia Administrative Code titled “Rules to Implement the Requirements of the Insurance Data Security Act.” The proposed new rules are required by the Insurance Data Security Act added by the 2020 General Assembly. The effective date is June 1, 2021. The Order may be found at: https://scc.virginia.gov/docketsearch/DOCS/4ynz01!.PDF Questions about these rules may be addressed to Katie Johnson, Bureau of Insurance, State Corporation Commission, P. O. Box 1157, Richmond, VA 23218, at 804-371-9688, or at Katie.johnson@scc.virginia.gov. State Corporation Commission, Richmond, VA
Managing risk is a crucial part of any construction project ,and the challenge for construction firms will be to find affordable, comprehensive insurance during a hard insurance market.
The announcement comes as the American Society of Civil Engineers awarded the U.S. a “C-“ in its recently released 2021 Infrastructure Report Card. The overall score reflects the aging infrastructure and lack of investment in upkeep and modernization. As these infrastructure improvement projects begin to take hold, the construction industry will experience a substantial boom that will trickle down to suppliers, builders, and subcontractors, among others.
HB 2262 Bicycles; traffic regulations, report.
Introduced by: Chris L. Hurst
Summary as Passed:
Traffic regulation; bicycles; report. Requires the driver of a motor vehicle to change lanes when overtaking a bicycle or certain other vehicles when the lane of travel is not wide enough for the overtaking motor vehicle to pass at least three feet to the left of the overtaken vehicle. The bill also removes the limitations on riding bicycles and certain other vehicles two abreast. The Department of State Police is directed to convene a work group to review issues related to allowing bicyclists to treat stop signs as yield signs, and to report any recommendations to the chairmen of the House and Senate Committees on Transportation.
IIAV News
RICHMOND, Virginia (June 29, 2021) – Priscilla G. Hottle, President; Hottle and Associates based in Warrenton, Virginia has been appointed as Chairman of the Board of Directors for the Independent Insurance Agents of Virginia effective July 1, 2021.
Priscilla Hottle has served on the IIAV Board of Directors since 2015 and has nearly 30 years of experience in both personal lines and commercial lines insurance as well as agency management and operations. Previously president with USI Insurance Services in Washington D.C., Hottle formed Hottle and Associates in early 2008.
Upcoming Events
Press Releases
Minneapolis, MN – June 6, 2021 – Today, RiskSmart Advisors announced that it has completed its acquisition of Securibly – bringing together two leaders in Information Security Compliance solutions. Securibly gives independent insurance companies peace of mind by making it easy for them to comply with complex data security laws and regulations. This adds to the RiskSmart robust solution portfolio including security training and vendor assessments and creates an even stronger player for small to medium businesses.
SEATTLE – June 23, 2021 – Today, Liberty Mutual and Safeco Insurance released a new interactive experience to help independent insurance agents navigate digital transformation. Built off the findings from the recent Rise of the Digital Insurance Agency report which explored the connection between digital and revenue, the resource offers practical advice and personalized insights for unlocking the power of digital. With today’s launch, this experience – which includes an assessment, framework, and curated content dedicated to 15 different digital capabilities – becomes the most comprehensive and centralized collection of digital transformation insights available to all independent agents.
Explore the experience at www.AgentForTheFuture.com/UnlockingDigital
Education
 IIAV's Education Connection will now be a monthly email subscription unlike the prior weekly email blasts. We have made a few changes to the functionality of the page and hope that these changes will benefit our subscribers by providing easier access to the information in the Education Connection.
The Virginia Commonwealth University RMI Program invites IIAV to join them on Tuesday, September 21, 2021 from 9:00 to 10:00 am for their next RISK MANAGEMENT AND INSURANCE TRENDS TALKS. Sessions are held virtually and their goal with the Trends Talks is to bring together risk management and insurance professionals from diverse industry sectors to share and learn about trends, issues, and current events impacting our industry. Into the Breach: Navigating the Risk of Sensitive Data featuring Beth Waller, Principal, Woods Rogers, moderated by Courtney Hart, Senior Regional Vice President, FCCI Insurance Group E&O Spotlight
.png) Did you know that IIAV offers Errors & Omissions Education? Improve your agency and save money
on your E&O policy with qualifying companies by attending one of IIAV's approved E&O Risk Management Courses. These classes are offered in both classroom & webinar format.
Read more for the four important things to keep in mind to avoid potential errors & omissions claims as you look to improve your business.
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