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America Is Looking To Safely Get Back To Work

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May 22, 2020

America Is Looking To Safely Get Back To Work

WASHINGTON – U.S. employers are making plans to ensure their employees can safely return to work with 90% considering a phased re-entry and 88% having a multi-disciplinary task force in place. These are among the findings of a survey from the National Alliance of Healthcare Purchaser Coalitions (National Alliance) conducted to support regional coalitions and employers and benchmark re-opening strategies in the face of the COVID-19 pandemic.

“There is a clear pivot across America as employers prepare to go back to work, but this will hardly be business as usual,” said Michael Thompson, National Alliance president and CEO. “In general, employees who can work from home will continue to do so for the foreseeable future. Other employees will return to the workplace in a phased manner with a clear plan of action intended to mitigate risk and accommodate those most at risk or concerned for their safety. This is likely our ‘new normal’ in the COVID-19 era.”

Additional survey findings:

Of those employers with over 1,000 employees, 97% already have a multi-disciplinary return to work task force in place. Over 7 in 10 of smaller employer indicated they have a task force in place.
Over 90% of employers are including these functions in their return to work task force: senior leadership, human resources, communications, operations and safety. Surprisingly, only 50% indicated the inclusion of a clinical advisor.
Employers are looking to guidance from all levels – federal (96%), state (95%) and county/city/local (92%). The Centers for Disease Control is viewed as a key resource for guidance by 95% of employers.
As for timing, 60% of employers indicated that they are not considering opening the work site for all employees within the next 60 days. Policies currently in place include: mandatory social distancing (87%), mandatory 100% work from home for those who can (70%), and 59% have accommodations for parents while schools are closed.
Of the factors being considered in a phased re-entry, the top policies already in place include: ability to work from home (92%) and criticality of job function (88%). Employers are also supporting their employees with policies in place around health-related risk factors (82%), family or childcare issues (79%), age-related risk factors (77%) and employee readiness (74%).
When asked about virtual support for health-related risk factors top programs currently in place include support stress and emotional health (75%), cardio fitness (59%) and addiction treatment/substance use disorder (50%).
Testing is not currently a major factor for most companies in their phased re-entry as only 43% indicated testing capability is currently in place, 24% are considering within the next 60 days, and 33% are not considering within 60 days.
The top five safety strategies currently in place are increased cleaning of workspace (90%), mandatory use of masks (88%), restrictions on meeting size (81%), personal protection equipment (beyond masks, 58%) and alternate shifts (55%).
The top criteria being considered in clearing employees to come back to the workplace are daily screenings for COVID-19 symptoms (51% in place and 28% considering), employee pledge to social distance both inside and outside the workplace (46% in place, 38% considering), tested and free of COVID-19 (22% currently, 39% considering) and positive antibody testing (45% considering and 54% are not considering).

The online survey was conducted from April 29-May 10, 2020 and completed by 210 employers of varying size (20% greater than 10,000, 10% 5,000-9,999, 29% 1,000-4,999, 12% 500-999 and 30% fewer than 500) and industry (e.g., 24% manufacturing, 13% healthcare and social assistance, and 12% finance and insurance) that are members of coalitions affiliated with the National Alliance. Additional details on the survey findings can be found here. National Alliance also compiled an online COVID-19 resource for employers that can be found on the website.

Leadership Summits 2020

In its fourth year, the Leadership Summits 2020 is now a virtual conference being held June 15-16, 2020. This year’s themes center around Mobilizing Collective Action, Total Person Health and Achieving Value and offer HR, benefits and other healthcare stakeholders unique, actionable solutions to meet today’s toughest challenges. Learn more and register.

About National Alliance

The National Alliance of Healthcare Purchaser Coalitions (National Alliance) is the only nonprofit, purchaser-led organization with a national and regional structure dedicated to driving health and healthcare value across the country. Our members represent more than 12,000 employers/purchasers and 45 million Americans spending over $300 billion annually on healthcare. To learn more, visit nationalalliancehealth.org, connect with us on Twitter and LinkedIn.

Venture Underwriters Hires Underwriting Veteran Barrow, Moves Chicago Headquarters

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May 21, 2020

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Venture Underwriters Hires Underwriting Veteran Barrow, Moves Chicago Headquarters

CHICAGO – Venture Underwriters Inc., a division of Allstar Financial Group, has expanded their Chicago underwriting team to include commercial underwriting veteran Chris Barrow.

Barrow will be joining the Chicago office as vice president specializing in commercial general liability. The office will also be relocating to 200 S Wacker Drive in Chicago as part of this expansion.

“With more than 30 years of experience in the casualty insurance industry, Chris brings with him a wealth of industry knowledge,” said George Khalid, Venture Underwriting Senior Vice President. “He will play an integral part in continuing to expand Venture’s footprint throughout the Midwest.”

“I am thrilled to join the Venture team,” said Barrow, “and I will strive to be an asset to our brokers by providing exceptional service and solutions on difficult risks. I will be based in Chicago, which is a relatively untapped market for Venture with much opportunity for growth.”

Barrow started his career as a claims adjustor at Crawford & Company before moving into underwriting at Western World Insurance Group. He also held various underwriting roles with increasing management responsibilities at Crum & Forster Specialty, and most recently, at Vela Insurance Services, where he served as vice president and Chicago branch manager.

Barrow has extensive experience in underwriting construction, products, hospitality and premise-based risks. He holds a bachelor’s degree in Business Administration from Wittenberg University as well as a Construction Risk and Insurance Specialist (CRIS) designation from the International Risk Management Institute, Inc. (IRMI).

About Venture Underwriters, Inc.

Venture Underwriters, Inc. underwrites surplus lines risks that are produced exclusively by wholesale brokers. With eight branch offices throughout the country, Venture offers both primary and excess liability coverages nationwide. Venture Underwriters, Inc. is a division of Allstar Financial Group, an Atlanta-based holding company with multiple specialty MGA’s. Additional information can be found at ventureund.com.

About Allstar Financial Group

Founded in 1965 and based in Atlanta, Allstar Financial Group provides commercial and personal insurance solutions to a diverse group of clients. With a network of 26 offices and more than 15 companies across the country, it has more than 275 employees writing surety, commercial and personal lines insurance business. The company is distinguished by its extensive product and service offerings, exceptional financial strength and underwriting excellence. Allstar Financial Group maintains its own underwriting, claim handling, legal and audit staff to assist clients and implement internal best practices. For further information on Allstar Financial Group, www.allstarfinancialgroup.com.

EMC Insurance Companies Receives innovationLEADER of the Year Award From innovationIOWA Magazine

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May 20, 2020

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EMC Insurance Companies Receives innovationLEADER of the Year Award From innovationIOWA Magazine

DES MOINES, Iowa – innovationIOWA Magazine, an extension of the Des Moines Business Record, has recognized EMC Insurance Companies as its 2020 innovationLEADER of the Year. The award honors a company for the originality, leadership and impact of their innovative culture and processes.

“Innovation is one of our five core values – values that drive EMC Insurance Companies to realize our mission and vision. With this focus, EMC demonstrates that we understand the importance of embracing innovative changes and support incorporating new ideas and methods into our business,” said Scott Jean, EMC President and CEO. “We believe we are doing industry-leading work by engaging our entire organization in our innovation journey.”

In support of a culture of innovation, the Innovation Team at EMC was formed in 2017 with the goal of designing and delivering innovative programs, processes and communications. The group collaborates across all business units through:

Cross-Enterprise Innovation Team – Subject matter experts develop and maintain a pipeline of innovative solutions.
Emerging Issues and Trends Councils – Cross-functional teams research emerging trends in insurance and identify opportunities for the company.
Insurtech Process – A multi-step process to ensure all experts are involved in decisions, including information technology, strategic analytics, security, legal and compliance.
Labs – Pop-Up Innovation Labs create hands-on opportunities for employees to explore, research and recommend new technologies.
Innovation for Breakfast – A monthly program where all employees are invited to see pitches from Insurtech companies and connect with senior leaders on innovation priorities and successes.

Additionally, EMC pursues partnerships with key players in the insurtech space, including Plug and Play, an innovation platform that brings together startups and the world’s largest corporations. EMC received the Insurtech Corporate Innovation Award from Plug and Play at its Winter Summit in December 2019.

About EMC Insurance Companies
EMC Insurance Companies is among the top 60 property/casualty insurance organizations in the country based on net written premium, with more than 2,400 employees. Employers Mutual Casualty Company (EMCC) was organized in 1911 to write workers’ compensation protection in Iowa. Today, operating under the trade name EMC Insurance Companies, the company provides property and casualty insurance products and services throughout the United States and writes reinsurance contracts worldwide. EMCC is licensed in all 50 states and the District of Columbia. For more information, visit emcins.com.

Liberty Mutual Leverages Technology To Remotely Adjust Commercial Property Claims

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May 18, 2020

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Liberty Mutual Leverages Technology To Remotely Adjust Commercial Property Claims

BOSTON, May 18, 2020 – Liberty Mutual Insurance’s commercial property claims unit has added to the technology it uses to quickly and accurately inspect and estimate commercial property claims remotely, reflecting today’s need for physical distancing and in anticipation of what is predicted to be a greater than normal Atlantic hurricane season.

The unit introduced two new technologies that enable claims to be inspected and estimated virtually. The first enables customers to stream video from the damaged property to Liberty Mutual’s commercial property claims specialists, allowing them to better and more quickly understand the damage. The second, a Liberty Mutual app, lets customers provide images of the damage from a smart phone or tablet, which claims managers use to accurately measure the impacted area, speeding claims estimating and adjustment.

These new technologies join other investments Liberty Mutual has made to improve responsiveness while also limiting in-person contact by its property claims professionals. For example, the insurer regularly uses updated aerial photography to understand the size and location of property losses. In the event of weather catastrophes, such photography can quickly evaluate damage to commercial property policyholders across an affected area. In addition, commercial property claims teams across the United States already photograph the exteriors of sites after a claim is reported without having to physically connect with a customer or broker.

However, there are times when in-person damage evaluation is the best approach to helping a policyholder quickly rebound from a loss. In these cases, which often involve large losses, claims specialists work with customers to make sure they are comfortable with timing, protections, social distance, state rules, and any other considerations around in-person inspections.

“When commercial property is damaged, every minute counts,” said Liberty Mutual Manager of Commercial Property Claims Taylor Archambault. “Liberty Mutual has invested in technology, infrastructure and processes to quickly, accurately and safely adjust property claims remotely. Our customers can rest assured that our expert resources will leverage the right resources based upon the complexity and severity of the claim.”

Best’s Special Report: Stress Testing of AM Best-Rated Insurance Companies Indicates Most Can Withstand Pandemic

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May 17, 2020

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Best’s Special Report: Stress Testing of AM Best-Rated Insurance Companies Indicates Most Can Withstand Pandemic

OLDWICK, N.J. – Initial stress testing conducted by AM Best to gauge the preliminary impact from the COVID-19 pandemic on its rated insurance companies’ financial strength found that most insurers’ capital levels provided an adequate buffer against a potential shock to their balance sheets. Sensitivity to the pandemic was greater for life/health insurers with high asset and mortality risks; insurers with material exposures to mortgage loans; carriers operating in domiciles in higher country-risk tiers; and companies with smaller capital bases.

“Insurers are likely to see a significant hit to earnings in 2020, rather than a material decline in risk-adjusted capitalization.”

As detailed in its new Best’s Special Report, “Stress Testing Rated Companies for COVID-19,” the stress test analysis covered approximately 1,400 rating units worldwide, and focused on the impact of COVID-19 on underwriting and assets. Overall results showed that the median Best’s Capital Adequacy Ratio (BCAR) score at VaR 99.6 of the rated population declined to 43% from an estimated year-end 2019 BCAR of 49%, demonstrating the resilience of the insurance industry. Property/casualty insurers in the United States and Canada performed relatively well, compared with life/annuity and health insurers.

“Insurers are likely to see a significant hit to earnings in 2020, rather than a material decline in risk-adjusted capitalization,” said Mahesh Mistry, senior director, AM Best Rating Services. “Reputational risk in certain markets may also be a problem, as any legal disputes become more visible to consumers, policyholders, regulators and legislators.” The stress test did not take into account a scenario in which contracts could be voided.

The unprecedented impact of COVID-19 on the industry and its effect on global economic volatility imply that companies that have performed well on AM Best’s stress test could still face credit rating pressure if conditions deteriorate beyond the prescribed scenarios. These include a second wave of mortality losses arising from a resurgence of the pandemic; a significant spike in claims experience for commercial lines segments, such as event cancellation, business interruption or trade credit insurance; rulings on contract clauses, results of litigation and government decisions; and further deterioration of financial markets resulting in material investment losses or writedowns of assets.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=297213.

A brief video discussion about the stress test results with Mistry is available at http://www.ambest.com/v.asp?v=ambstresstest520.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

FCCI Charitable Foundation Makes Grants for COVID-19 Relief

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May 16, 2020

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FCCI Charitable Foundation Makes Grants for COVID-19 Relief

The FCCI Charitable Foundation, the charitable arm of FCCI Insurance Group, has recently distributed $100,000 for COVID-19 relief. The Foundation contributed $70,000 through the COVID-19 Response Initiative of Gulf Coast Community Foundation and Charles & Margery Barancik Foundation, and $30,000 for relief and response funds in communities FCCI serves in Alabama, Indiana, Maryland, Virginia, Georgia, and Winter Park, Fla. This contribution was made in recognition of and on behalf of FCCI’s valued agency partners.

Prior to distributing the funds, the FCCI Charitable Foundation worked to identify and maximize matching opportunities. The $70,000 awarded in our region was matched 1:1, resulting in $140,000 for COVID-19 relief benefiting organizations addressing hunger, mental health, healthcare and medical supplies, jobs and financial security, education, youth services, and child care. Matches in other regions are expanding the impact of the FCCI Charitable Foundation contribution as well.

The purpose of the FCCI Charitable Foundation, which was formally established in April of 2019, is to maximize the impact of each donated dollar. This Foundation was formed in partnership with Gulf Coast Community Foundation. FCCI leadership noted that this is a highly efficient and cost-effective way to operate its charitable arm: of every $1 that is placed in the Foundation, there is 99 cents available to donate to organizations focused on bettering the lives of others.

“We felt this was a wonderful opportunity to positively impact our communities during this unprecedented crisis,” said Lisa Krouse, member of FCCI’s Board of Directors, EVP, and Chief Administrative Officer. “We live in and care about the communities we serve and consider it an honor to contribute to local and national charitable organizations – especially those serving on the front lines to address the effects of the coronavirus, which are being felt by businesses and families across the country.”

Since FCCI’s founding in 1959, the company has given back to the community. As its business has grown, so have its efforts to support the regions in which it does business. Individually, FCCI teammates donate time and raise money for many causes, such as gifts for children and seniors during the holiday season, on-campus blood drives, beautification projects, and more. FCCI teammates also receive paid time off to participate in community involvement and volunteer at the charitable organizations of their choice. Since the inception of the program in 2012, more than 17,000 volunteer hours have been donated by FCCI teammates.

For more about FCCI, go to www.fcci-group.com or call (800) 226-3224.

About FCCI

Distributing exclusively through independent agents in 19 states and Washington D.C., FCCI provides commercial property and casualty insurance coverage, services and commercial and contract surety across more than a third of the U.S. Established in 1959, FCCI is celebrating 60 years of keeping promises. FCCI is rated A (Excellent) by A.M. Best Company and is headquartered in Sarasota, Florida, with regional and branch offices in Alabama, Florida, Georgia, Indiana, Mississippi, Texas and Virginia. For more information, contact us at 800-226-3224 or visit www.fcci-group.com.

AmTrust Offers Tips for Getting Back to Business After COVID-19: How Small Businesses Can Safely Reopen

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May 7, 2020

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Small business owners may be anxious to welcome customers back, but there’s no denying that life as we know it has drastically changed. The coronavirus pandemic effectively shut down most of the country, with businesses closing their doors and employees furloughed or working from home. As quickly as the shutdown occurred, reopening businesses will have to be at a more gradual pace. It will take some time for the nation to adjust to a new normal way of life. AmTrust offers tips for getting back to business after COVID-19.

The Phases of Reopening the United States

President Trump, announcing a three-phase plan to reopen the country, told reporters that opening “one careful step at a time” instead of all at once is necessary to keep everyone safe – and to help prevent another surge in COVID-19 cases. The new federal guidelines for reopening leave much of the responsibilities to the individual states, and state governors will have discretion in regards to how they choose to begin reopening. And, there are specific guidelines that must be met before each state can start to reopen.

For instance, states should have systems in place for testing individuals with symptoms of COVID-19, and their healthcare systems should be running efficiently. States also should have proper PPE available, have the ability to handle a surge in cases, and plans should bet set in place to ensure the health and safety of workers and citizens.

When the states have satisfied the above criteria, an overview of the proposed phases for reopening the economy are as follows:

Phase One

Telework is still encouraged, or if possible, employees should return to work in phases. Common areas should be closed, and non-essential travel minimized. Special accommodations should be considered for those in the vulnerable population, such as the elderly or the immune-compromised.

As far as specific types of employers, in phase one, schools and daycares will remain closed, and visitors to senior living facilities and hospitals will still be prohibited. If strict distancing protocols are followed, gyms and some large venues such as movie theaters and churches may begin operation, as long as they maintain distancing and sanitation efforts. Elective surgeries can resume as needed on an outpatient basis. Bars are to remain closed.

Phase Two

In phase two, vulnerable individuals should still shelter in place and should be kept isolated from those who could potentially come into contact with the virus and put them at risk. Gatherings of more than 50 people should be avoided unless proper distancing measures can be abided. Public areas like parks and shopping establishments can be visited, but individuals should still maximize physical distance (six feet or more) from others. Non-essential travel may resume.

Throughout phase two, employers are encouraged to allow employees to continue to telework if possible. Common areas like company cafeterias or other areas where employees congregate should remain closed, and if an employee is of the vulnerable population, special accommodations should continue to be provided.

Many of the same guidelines for specific businesses that apply in phase one still apply in phase two. However, in phase two, schools and daycares may reopen, and bars are allowed to open as long as they operate with less standing room occupancy.

Phase Three

As the country moves into phase three, life begins to return to a level of normalcy. The vulnerable population can start to interact with others while still practicing social distancing and minimizing their exposure to large group settings. The restrictions on worksites can be lifted. As long as diligent hygiene is practiced, visits to senior care facilities and hospitals may resume, and large venues can open with limited distancing protocols set in place. Bars may also operate with increased standing room occupancy once again.

Protecting Workers as Businesses Reopen After COVID-19

About 95% of the United States has been under some form of lockdown since mid-March, with governors issuing stay at home or shelter in place orders to help prevent the spread of the coronavirus. While essential businesses like grocery stores and pharmacies have remained opened, bars, restaurants, hair salons and others undoubtedly have been anxiously awaiting the day they can start getting back to business as usual.

While it will take some time for that day to come, there are safety processes all organizations can do to start preparing for it. It’s critical that businesses of all sizes, in all industries, take measures to ensure their employees can stay safe and healthy when they report for work. These steps include:

Stagger the return of employees

Start slowly allowing employees to return to the workplace by alternating shifts and workdays that reduce the number of employees on-site at any given time. Or, continue to allow employees to work from home to limit in-person interaction in the office.

Monitor employees’ health

Businesses should create a clearly-defined plan utilizing HR strategies developed with legal consulation to monitor the health of their employees. Regular screenings of employees’ temperatures and overall health can help keep the workforce safe. Should any workers become ill, have a plan in place to immediately isolate them and provide the medical care they may require. It may also become common practice to provide facemasks or other protective gear to stop the potential spread of the virus.

Increase cleaning and disinfecting efforts

All surfaces need to be cleaned and disinfected throughout the workplace regularly. Make sure to wipe down all commonly touched items, such as doorknobs, light switches, drawer handles, phones, keyboards, etc. Businesses should also increase deep cleaning efforts to ensure floors and common areas are thoroughly sanitized throughout the year.

Limit gatherings

Both phases one and two of reopening the economy require that common areas, like lunchrooms and cafeterias, are kept closed. Employees should also continue to conduct meetings virtually, rather than gather in conference rooms in tight quarters.

Keep lines of communication open

One of the most critical steps to take during these uncertain times is to communicate clearly and continuously with employees. Things have been changing on a daily basis throughout the coronavirus pandemic, and many individuals feel anxious, stressed and overwhelmed right now. Businesses can designate a point person employees can contact with questions about changes in protocols, job requirements, working remotely and other issues they may have as things slowly get back to a new normal after COVID-19.

Supporting Our Small Business Insured as They Get Ready to Reopen After COVID-19

AmTrust offers a library of resources regarding the coronavirus to help our appointed agents and small business insured stay informed, safe and healthy throughout these difficult times. For more information about our small business insurance solutions, please contact us today.

This material is for informational purposes only and is not legal, tax or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is accurate, appropriate or suitable for any specific business, tax or legal purpose. Readers seeking resolution of specific questions should consult their business, tax and/or legal advisors. Coverages may vary by location. Contact your local RSM for more information.

This article was retrieved from the AmTrust website and can be viewed at https://bit.ly/2SLRM0y.

EMC Loss Control Insights: 7 Lawn Mower Safety Mistakes to Avoid

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April 28, 2020

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EMC Loss Control Insights: 7 Lawn Mower Safety Mistakes to Avoid

Mowing grass is such a common activity that business managers may not realize it’s a skill workers need to be properly trained on before using company equipment. If your business falls into this category, just remember that Occupational Safety and Health Administration (OSHA) also views lawn care as a work activity requiring workers to have proper training, safe equipment and the necessary personal protection equipment (PPE). EMC offers insights into lawn mower safety mistakes to avoid.

Because of the false assumption that all workers have the knowledge and skills to operate a mower safely, managers may assign anyone available to perform a mowing task. The supervisor may not take the time to verify that the worker knows the operation and safety precautions for the equipment they’ll use for the job.

And employees often do not stop to ask questions because they assume they know enough to handle the machine and the task. It’s also possible employees are afraid to admit they have doubts about their ability to handle the machine.

Lawn Mower Safety Basics

In addition to proper training, safe operation of a mower consists of making sure the equipment is maintained and safe to use. Both components are necessary for a strong safety program.

Keep equipment in tip-top shape. This includes adhering to a maintenance schedule following all manufacturer’s instructions and ensuring that the roll over protection system (ROPS), guards, seat belts and shields are in place and secure.

Train all operators on the equipment and safety rules. This encompasses knowing how to handle the equipment and understanding safety features. But it also covers the basics of safe mowing (speed, inclines, stability, checking for hazards before starting the machine, etc.), proper apparel (a tight fit so nothing can be caught in the equipment) and PPE (heavy boots, safety goggles and hearing protection). Find more information and illustrations of proper and improper techniques in Mowing and Trimming Safely, an OSHA manual.

Common Mistakes to Avoid

Check to be sure these mistakes aren’t popping up in your landscape:

Mowing slopes the wrong way. When using a riding mower, it is safer to go up and down hills than across slopes. The opposite is true when using a walk-behind mower.
Overriding safety mechanisms. Protections are in place and it’s not smart to disable the blade or disengage or discharge any other safety components.
Becoming lax on maintenance. Keep records of when and how the equipment is supposed to be cared for and document when the work is completed.
Underestimating equipment such as zero-turn mowers. It’s surprising how quickly these mowers zip along. Training and practice are important, especially for employees who have not worked with similar equipment in the past.
Failing to survey the area. Employees may know the area’s topography, but new sticks and other impediments may have popped up. Be sure employees are checking prior to and while mowing.
Skipping full PPE. Some mowers are quite loud so hearing protection is needed to prevent hearing loss. Eye protection is a critical component as an employee could hit a sharp stick or stone that can ricochet into an eye. Additionally, tree branches may swing into an employee’s face and cause an eye injury.
Incorrectly loading lawn care equipment. When moving landscape-care equipment in a truck from one job site to another, it’s important that mowers, weed eaters, rakes and other equipment are properly secured. You don’t want items to be damaged or to fly out of the vehicle during transport.

This article retrieved from the EMC insurance website. Visit https://www.emcins.com/losscontrol/insights-d/2020/04/mower-safety/

Independent Insurance Channel Growth Remains Stable

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March 13, 2020

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Independent Insurance Channel Growth Remains Stable

Reagan Consulting Urges Agents, Brokers to Continue Improving Efficiency

ATLANTA (February 17, 2020) — Optimism remains high in the independent insurance channel, despite a slight drop in year-end 2019 growth rates and profitability. Agents and brokers predict that 2020 will be a stronger year with 7.0% organic growth, according to the latest Organic Growth and Profitability (OGP) survey report from Reagan Consulting.

Median organic growth in the channel slowed slightly to 5.9% in the fourth quarter (Q4) of 2019, after having exceeded 6% in five of the previous six quarters. Also, the 2019 median year-end EBITDA (earnings before interest, taxes, depreciation and amortization) dropped slightly to 20.1% from the 2018 year-end EBITDA of 20.2%.

Those declines are insignificant unless they prove to be the beginning of a trend, says Bobby Reagan, CEO of Reagan Consulting.

A more significant change, says Reagan, is a shift in the biggest sources of revenues and earnings in the channel. As of year-end 2019, commercial lines surpassed group benefits in both organic growth and profitability.

Compounding Small Differences

Reagan also reports encouraging news: “Operating income rose from 12.5% in Q4 2018 to 13.1% in Q4 2019, proving that brokers were more efficient in controlling their expenses.”

Reagan Consulting has charted large variances in efficiency among agents and brokers across all revenue sizes. Reagan encourages agents and brokers to continue working to maximize their efficiency, and, using the Q4 2019 median and top quartile (75% percentile) firms to illustrate, he explains how small differences in organic growth and profitability compound over time.

“Although the difference in the organic growth and profitability performance of these two firms shown above may seem relatively small, the implications of the differences in the performance over a period of years is significant,” Reagan says. Assuming both firms begin with $10 million in revenue in 2019 and their levels of organic growth and EBITDA remain consistent, by 2029, “the top-quartile firm will have revenues that are 31% higher, cumulative 10-year profits that are 52% higher, and an estimated valuation that is 68% higher. The top-quartile firm will have generated $14.5 million more profit and have a value that is $18.4 million higher,” says Reagan. In other words, by 2029, the top-quartile firm will be “$33 million ahead of the median firm.”

Reagan Consulting has conducted its quarterly survey of agency growth and profitability since 2008, using confidential submissions from nearly 200 mid-size and large agencies and brokerage firms. Approximately half of the industry’s 100 largest firms participated in this quarter’s survey. The OGP survey is the industry’s preeminent survey of mid-size and large privately held brokers.

Each participating agency receives a customized, confidential report of its performance compared with the overall survey results, along with Reagan’s quarterly commentary of industry trends affecting agents and brokers. For information on participating in the OGP survey, contact Michelle Appelbaum at 404.233.5545 or michelle@ReaganConsulting.com.

A New Direction for Customer Engagement: From Multi-Channel Conversations and Unified Data to AI-Supported Self-Service Technology

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February 10, 2020

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A New Direction for Customer Engagement: From Multi-Channel Conversations and Unified Data to AI-Supported Self-Service Technology

Effectively managing customer interactions is a real challenge for contractors. While retailers such as banks and insurers have long embraced self-service technology and multi-channel platforms to enhance the customer experience, field service-based organizations are still discovering how this technology can be best applied. Susannah Richardson, Marketing Director for Field Service and Contact Center Solutions, IFS, explains contracting companies need to understand that it’s simply no longer acceptable to expect customers to initiate contact by making a voice call. They must recognize the requirement to offer multiple contact channels and use unified data—or risk losing customers—and agents!

In today’s on-demand world, customers expect to use whatever channel is most convenient for their specific needs at that moment. The choice could vary depending on the customer’s preference, their age or even their mood. In the 18-24 age group, 60% prefer to use either web messaging or email to contact a company while just 23% would choose to call. In addition, customer interactions will often switch from one channel to another. An inquiry or request may start on social messaging, a mobile app or web chatbot, but move to an SMS text or email exchange, or develop over multiple phone calls.

Convenience is key

Recent research by Ventana found the average number of customer engagement channels now supported by an organization has grown to almost eight. This highlights that companies must remember there is no one ‘right’ customer engagement channel and underlines that customers now expect to be able to make contact however they wish.

Smoother, more intelligent customer interactions

Fortunately, technology such as artificial intelligence (AI) has enabled companies to intelligently manage multiple channel touchpoints. Voice recognition, natural language processing (NLP) and text analytics all provide powerful ways to parse, interpret and best route incoming requests, performing an automated triage to decide the most appropriate next action. If a customer is emotional or distressed, an AI-based system can detect the urgency and pass the contact directly to an agent. But if a self-service solution is appropriate, the customer can be provided immediate access.

“But I’ve already told you”

Multi-channel conversations generate streams of diverse information that are typically held in multiple Customer Relationship Management (CRM) silos, so forcing agents to quickly access historic records, in real-time, with multiple tabs and applications open on-screen makes it difficult to provide good customer service. This is because inevitably, customers are left waiting for long periods and/or may be asked to repeat basic details. It’s no surprise that as frustration builds up, both customers and agents alike start to churn—but that is not an organization’s only retention problem.

Benefit from one clear view – for the customer and agent

The real challenge for service-oriented companies is how to provide agents with the communication and workflow tools they need to provide customers with a single, unified experience whenever they initiate a contact. This is where a complete customer engagement platform can help. Software technology has the capability to group together all the associated communications and messages between each customer and an organization. ‘Omni-channel grouping’ means that if an email or tweet is followed by a web chat or call, a good customer engagement platform will automatically present the agent with all the related communication on-screen in a logical format, while it also manages queuing and skills-based routing of contacts.

Agents need tools that are fit-for purpose to deliver effective and efficient customer service. That means a single, clear, streamlined and unified desktop that removes the need to wade through multiple CRM screens is hugely advantageous. For instance, an AI-powered agent desktop can present information linked to the customer record from multiple underlying systems and databases and guides agents through complex transactions. By managing workflow and presenting contextualized data, guidance and forms, an agent can focus on providing customers with the best possible resolution and experience.

Happy customers, happy agents, cost savings

Providing agents with a clear, single view of any customer contact or relationship on-screen has ROI potential. While the initial outlay for an omni-channel solution with a smart agent desktop may at first seem a cost increase, the greater efficiency of agents as a result of these solutions represents huge cost savings. An omni-channel desktop enables faster training for new and existing agents, 50% in some of the cases I have witnessed. This means existing agents spend less time away from serving customers and the domino effect of increased waiting times is prevented. It also speeds up the process of getting new recruits trained up on calls, which allows more queries to be handled.

From omni-channel to chatbots

Our customers provide testament to the success of this approach. One recent IFS customer centralized and modernized its contact center operations with our Customer Engagement solution. The Head of Business Change, Aftersales, has run the numbers: “We have already managed to halve our average handling time and our agents are 20% more effective in their day-to-day operations.” They are now looking to provide customers with the opportunity to self-serve, offering IFS online chat, intelligent chatbots, plus a knowledge base and customer surveys.

Don’t miss the trick

In an industry where agent attrition rates are a constant concern, time is money. But solutions that make agent tasks easier help improve customer retention as well as an agent’s ability to confidently cross and upsell profitable additional services and products. Companies must recognize the opportunities afforded by customer engagement technology or will soon find themselves at the back of the customer satisfaction queue, missing out on the cost savings that come with enhanced agent efficiency.