The Big I Virginia Summer 2022

SUMMER 2022

VIRGINIA

THE MAGAZINE FOR INDEPENDENT INSURANCE AGENTS

2021 Virginia P-C Marketplace Summary

ALSO INSIDE:

MENTAL HEALTH

SUPPORT IN EVERYDAY

INTERACTIONS

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SUMMER 2022

The Big I Virginia is a publication of the

Independent Insurance Agents of Virginia

8600 Mayland Drive, Richmond, VA 23294

Phone: 804.747.9300 / Toll-free: 800.288.IIAV (4428)

Fax: 804.747.6557 / E-mail: members@iiav.com / Website: iiav.com

IIAV IS AN ORGANIZATION DEVOTED TO

PROMOTING, ENHANCING, SERVING AND

ASSISTING INDEPENDENT INSURANCE AGENTS.

The Big “I” is a trademark owned by the Independent

Insurance Agents & Brokers of America, Inc. (“IIABA”), and is

being used with the permission of IIABA.

IIAV Staff

INSIDE

6 Message from the Chairman of the Board Mike Yeargy

8 Message from the President & CEO Robert N. Bradshaw Jr.

10 Message from the State National Director Michael Funkhouser

10 Save the Date: Young Agents Conference Oct. 26-28

12 Thank You 2022 Partners

13 2021 Virginia P-C Marketplace Summary

28 ICUMI Rough Notes: Mental Health Suppport in Everyday

Interactions

THANK YOU ADVERTISERS

32 Applied Underwriters

auw.com/MoreTo Love

16 Berkshire Hathaway

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3 Builders Mutual Insurance

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9 EMC Insurance

emcins.com/

manufacturing-insurance

7 Harford Mutual

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5 Iroquois Group

IroquoisGroup.com

25 Penn National

PennNationalInsurance.com

31 SIAA

11 Summit Holdings

summitholdings.com

Robert N. Bradshaw, Jr., MAM

President & CEO

rbradshaw@iiav.com

Cell (804) 929-4134

Teri Chester

Executive Secretary/

Receptionist

& Membership Coordinator

tchester@iiav.com

Joe Hudgins, CPCU

Technical Consultant

jhudgins@iiav.com

Cell (804) 929-4138

Bonnie Joyce

Senior Insurance

Administrative Assistant

bjoyce@iiav.com

Linda Loving, CIC, AISM, AIAO

IIAV Chief Operating Officer

& VFSC Executive Vice President

lloving@iiav.com

Cell (804) 929-4133

Susan E. C. Perkins

Membership/Education

Coordinator

sperkins@iiav.com

Bonnie J. Warren,

ACSR, CPIW, DAE, RPLU

Insurance Account Executive

bwarren@iiav.com

Vera Wooden


vwooden@iiav.com

Donald W. Bragg,

CPCU, CIC, CPIA, MBA

Director of Membership

& Marketing

dbragg@iiav.com

Melanie DeCola


mdecola@iiav.com

Debbi Little

Director of Professional

Development and Programs &

Executive Director for VAIA

(804)747-6557

dlittle@iiav.com

6 Davenchar Group

davenchargroup.com

2 Jackson Sumner &

Associates

jsausa.com

Cover Photo 33721496 / Business Statistics © Didecs | Dreamstime.com

For more information on advertising, contact Eric Johnson

Blue Water Publishers, LLC / 9406 N. 107th St., Milwaukee, WI 53224

414-708-2059 / fax: 414-354-5317 / eric@bluewaterpublishers.com

The Big I Virginia is a publication of the Independent Insurance Agents

of Virginia and is published quarterly by Blue Water Publishers, LLC. The

Independent Insurance Agents of Virginia, Inc. reserves the right in its sole

discretion to reject advertising that does not meet IIAV qualifications or which

may detract from its business, professional or ethical standards. IIAV and Blue

Water Publishers, LLC do not necessarily endorse any of the companies

advertising in the publication or the views of its writers. The publisher cannot

assume responsibility for claims made by advertisers, content provided by

the editor, or for the opinions expressed by contributing authors.

4 THE BIG I VIRGINIA SUMMER 2022

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2022-23 CHAIRMAN OF THE BOARD

MICHAEL YERGEY

Rbradshaw@iiav.com

IIAV PROVIDES THE DATA AND INFORMATION

YOU WANT AND NEED

I

cannot tell you how honored I am to be elected

Chairman of IIAV — the largest and oldest insurance

trade association in the Commonwealth. We are

embarking on our 125th anniversary year and for any

corporation — profit or non-profit — that is a notable

milestone. We’ve gone through many changes and

certainly expect to go through many more. Many times, we

have heard about the demise of the independent agency

system, and we’ve proved them wrong. Consumers want

help when it comes to protecting their interests, their lives

and those of their families and their property and their

future — both personal and commercial.

IIAV serves to help our membership — the agencies and their

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and productive. I read recently, “We don’t get paid for the

hours we work. We get paid for the value we deliver.” That

goes for us professionally and for IIAV. I can tell you from

personal experience from when my dad introduced me to

IIAV to now, the staff at IIAV works tirelessly supporting and

representing the independent agency system. I appreciate

the responsibility and expectation to help guide all the

facets of IIAV in the direction of helping you, the IIAV

member, to include the Independent Insurance Agents of

Virginia, the Virginia Financial Services Corporation, The

Virginia Association of Insurance Agents and the Virginia

Agents Political Affairs Committee.

That said, in this issue of Big I Virginia we have the Second

Annual Virginia P/C Marketplace Summary updated

through 2021. In this, you will not only find

nationwide data on trends and statistics,

but this is also the ONLY place you will

find such detailed data for Virginia and

the markets we serve. I know a number of

you are going to want this entire report —

all 53 pages of it — and you can get this

report by contacting Bob Bradshaw at IIAV

at Rbradshaw@iiav.com.

The IIAV is known for providing the best

of information, professional development,

information resources and advocacy.

You will not find stronger and more

comprehensive benefits for everyone in

your agency. We’re proud to have you as

a member and I’m honored to serve you

this year.

Best,

Michael Yergey

Chairman, 2022-23

https://davenchargroup.com


PRESIDENT & CEO

ROBERT N.

BRADSHAW, JR., MAM

rbradshaw@iiav.com

IIAV PROGRAMS, SERVICES AND ADVOCACY

I echo Mike Yergey’s comments that you will not see the

data provided in IIAV’s 2021 Virginia P/C Marketplace

anywhere else. It’s exclusive to IIAV members and we know

of a number of agency members who pour over this data

annually. Again, the full report is available by contacting

me at Rbradshaw@iiav.com.

That said, one of the key membership benefits of IIAV

is our advocacy efforts on behalf of the independent

insurance agent/agency. When this magazine comes out,

it will be somewhat of a lull in the year where advocacy is

still an important activity of the association but is not all

encompassing as when the legislature is in session. There

are any number of commissions meeting and there’s carry

over legislation from the past session that we are working

on perhaps for the 2023 legislature.

During the session you know what we’re doing and what

we’re working on. Weekly we send out reports on what

legislation we’re looking at and general information on

the good, the bad and the ugly. With over 3,000 pieces

of legislation being introduced during the session there is

certainly some good legislation and there’s certainly a lot

of ugly legislation.

ASKING SOMEONE TO

TELL ME WHAT THEY

WOULD LIKE TO EARN

OR WHAT THEY ARE

MAKING NOW IS A

CRITICAL BASIS TO

ESTABLISH IF I CAN

AFFORD SOMEONE IN

THE FIRST PLACE.

One bill that was introduced last year that didn’t get a lot

of attention was SB 447 which prohibited an employer

from seeking or asking about wage or salary history from

prospective employees. Not only this, but there was a civil

penalty associated with the bill. I was so flummoxed by

the bill I called HR Affinity Group — our endorsed HR firm

— and asked for their read on the legislation. Apparently

this sort of idea has progressed among a number of

states. The intent of the bill is to require that people be

judged on their merits and not associated with a salary

range associated with any particular group. Organizations

“should know” what their budget would allow and asking

a prospective employee what they are currently making is

unfair and discriminatory.

What???? Maybe I’m old school. Asking someone to tell

me what they would like to earn or what they are making

now is a critical basis to establish if I can afford someone

in the first place. Once when working in Washington, D.C.,

and looking for an administrative assistant, someone

replied to our notice asking for $100,000 per year in salary.

This was over 30 years ago. They were certainly talented

but meeting with this person with that expectation was a

waste of everyone’s time.

When I spoke with the Senator and their aide who put in

the legislation I couldn’t help but think that these people

have never signed a paycheck in their life. They tried to

mollify me that the legislation would allow me to present

a salary range. It also scared me when the bill passed in

the Senate but following discussions and lobbying by a

number of business groups, the bill failed in the House.

This bill took way more time than I expected and took a

lot of discussions with legislators and business groups.

Lobbying is a full contact support and if someone tells you

that they can adequately provide for advocacy virtually

and by attending one committee meeting a week … they

are pulling the wool over your eyes, or trying to. As Joe

Hudgins frequently said during the past session: “You

can’t make this stuff up,” and “You just have to be there.”

IIAV takes our mission to advocate and support he interest

of our members at the legislature seriously. It’s not a virtual

effort. And by all means, we let you know what we’re doing.

Stay tuned.


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TAKE ADVANTAGE OF BIG ‘I’ HIRES TO FIND TALENT

In survey after survey that the IIABA conducted, the

need and request from members was always the

same: “Our agency needs help attracting talent!” In

fact, 44% of respondents to the 2018 Agency Universe

Study cited the inability to find new, qualified employees

as their number one issue.

Out of this need, Big “I” Hires was born. I can’t state it any

better than the “About Us” section of the Big “I” Hires

website:

Big “I” Hires is a program developed by the IIABA, and is

intended to be a comprehensive solution to finding and

recruiting new talent, then onboarding them with ease.

It was created as a one-stop resource for independent

insurance agencies to attract, identify, assess and train

top performing Producers and CSRs. An array of tools and

online resources are available for members to allow them

to find the right hires for their agency with a few simple

clicks!

The beauty of Big “I” Hires is that it doesn’t use a “one size

fits all” approach.

The “DIY” hiring toolkit guides you through the entire

hiring process from preparing your search, through

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includes sample job descriptions, job postings, interview

questions and template, sample offer letter and

confidentiality agreement, and four-week learning

objectives. These kits are available for targeting

both Personal and Commercial Producers and CSR’s

alike. The employer is responsible for posting their

job opportunity and descriptions to job boards, and

handling the recruiting process. Member price per

position is $99. Member price for a complete kit with

all positions is $299.

Because resumes and interviews may not give true

insight into the potential employee, other tools are

available to help you assess your candidate. Caliper

personality testing, technical knowledge testing, and

sales call reluctance testing are available as well, and

will help narrow down your search.

If a more robust hiring approach is needed, Big “I”

Hires has partnered with IdealTraits, a true recruiting

platform that streamlines the hiring process from

start to finish. It allows you to post your job offers

to multiple job boards in one submission, receive

candidate resumes, and organize hiring into stages.

Access to assessment tools is also included, so you

may identify and hire the best fit. Subscriptions to

this service are offered in 90 day at $449 per location,

and an annual plan at $949 per location.

Further details can be found at bigihires.com .

Big “I” Hires provides IIAV members another “arrow

in the quiver” to attract the best in the industry to

your agency!


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26


2021 VIRGINIA P-C

MARKETPLACE SUMMARY

PREMIUMS - DISTRIBUTIONS - LINE OF BUSINESS TRENDS

Source: © A.M. Best Company — Used by Permission; US Census Bureau

You are being provided this summary of the Virginia property and casualty (P-C) insurance marketplace as a benefit of your

membership in the Independent Insurance Agents of Virginia.

What follows is a graphic and numeric presentation of the Virginia P-C industry data from an independent agent’s

perspective. This summary emphasizes direct premiums, direct losses and the associated direct underwriting results

before reinsurance. As independent agents, this is the marketplace experience for the business we place (or compete

against) for our clients in Virginia. Included in this summary is data from nearly 3,000 insurers that are domiciled in the

United States. Then, if they have written premiums in Virginia, their data is included in this summary.

The summary starts with a direct premium listing of all 32 lines of business reported by P-C insurers, for all distribution

styles in Virginia. The presentation of data then focuses on the 26 lines of business independent agents work with most.

For these agent-focused lines of business, data is provided on loss ratios, growth rates, penetration rates by the various

distribution styles and commission rates. In addition, and important to independent agents, a breakout of surplus lines

activity is provided to show trends, and utilization rates. United States national data is provided for comparison purposes.

For those readers interested in the details, the full P/C Marketplace report is available by contacting IIAV directly at

members@iiav.com. Five-year premiums are provided, loss and combined ratios, penetration rates by distribution style

and information on the numbers and largest insurers. The lines of business are provided in alphabetical order, and the

applicable line of business detail page number is provided. . On the product details pages, any line of business in

the Top 10 is highlighted with a small pie chart which shows its relative position in the ranking of premiums written by

independent agents, in Virginia.

Last, appendices are provided for information on approaches taken to presenting the industry data, definitions and

additional information that may further interest the reader.

Continued on page 14 >>

SUMMER 2022 THE BIG I VIRGINIA 13

MARKETPLACE SUMMARY

PREMIUMS: ALL P-C LINES OF BUSINESS – ALL DISTRIBUTION STYLES

Source: © A.M. Best Company — used by permission.

Notes or Comments: The above chart shows all 32 lines of business that P-C insurers are required to report on in their

annual statement. The lines of business are listed in alphabetical order. The 26 agent-focused lines of business are

emphasized above with an asterisk (*). These are the lines of business that are included whenever a total is provided for

Total (IA-Focused Lines) in the remainder of this 2021 Virginia P-C Marketplace Summary. The lines of business that are

not included in Total (IA-Focused Lines) are Accident & Health, Aggregate Write-ins, Credit, Financial Guaranty, Mortgage

Guaranty, and Warranty. These 6 lines of business are about 2.5% of all premiums in 2021.

Additional data on all 32 lines of business is provided in Appendix #1: All Lines of Business-Additional Details.


MARKETPLACE SUMMARY

Virginia Total Premiums Perspective

The previous page showed total premiums and premiums by line of business. To add perspective to that, below are some

standardized measures of total premiums for Virginia compared to other states, from data similar to the above.

In the below table, Total (All Lines) includes premiums for all 32 lines of business shown above, including Credit. The

combined premiums for Personal Lines is All Private Passenger Auto, Homeowners Multi-Peril and Farmowners Multi-

Peril. Commercial Lines is all other lines of business except All Private Passenger Auto, Homeowners Multi-Peril, Farm

owners Multi-Peril and Credit.

United States

Smallest/Lowest

State

Largest/Highest

State

Virginia (Rank)

Total (All Lines) Premiums $785 Billion $1.4 Billion

(Vermont-#51)

$97.3 Billion

(California-#1)

$16.6 Billion (#13)

Total (All Lines) Per Capita

Premium

$2,369 $1,674 (Ohio-#51) $3,839 (North

Dakota-#1)

$1,924 (#46)

Personal Lines Per Capita

Premium

$1,163 $835 (District of

Columbia-#51)

$1,621 (Florida-#1) $1,039 (#34)

Commercial Lines Per Capita

Premium

$1,186 $730 (West

Virginia-#51)

$2,647 (North

Dakota-#1)

$870 (#44)


PREMIUMS: TOP AGENT LINES OF BUSINESS




MARKETPLACE SUMMARY

PREMIUMS: TOP AGENT LINES OF BUSINESS


Notes or Comments: The above pie charts show which lines of business are the most important to independent agents

based on direct written premium. The top 10 lines of business are shown in each pie chart, with premium from all other

lines of business combined in the “All Other” pie section. The upper left pie chart shows the premiums for the top lines

of business in order of premiums written by independent agents in Virginia. The upper right pie chart shows the same

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MARKETPLACE SUMMARY

lines of business but with all distribution styles included in premium totals for each line of business. The bottom two pie

charts are the same approach, but based on total United States independent agent distribution and premiums.

In Appendix #2: Distribution Style Classifications, background is given on the classification of insurers into distribution

styles based on insurer reported marketing types.

Top Line of Business Perspective

The United States overall, and most states individually, see Private Passenger Auto as the largest premium line of business

through independent agents. This is case in about 80% of the states, but there are exceptions. Those exceptions are

a handful of Midwest states, which have Multi-Peril Crop as their highest premium line of business, followed by several

states with Other Liability (Occurrence) or Other Liability (Claims-Made), a few states with Workers’ Compensation, and

finally one state with Homeowners Multi-Peril.

There are consistencies in the highest premium generating lines of business. To get a sense for that, in the table below

are the lines that are present in at least one state’s Top 10, along with the percent of states where that line of business is

in the top 10. The percentages are approximate, as small changes in premiums can result in variances, particularly in the

last of the lines listed.

Line of Business States With Product in Top 10

All Commercial Auto 100%

All Private Passenger Auto 100%

Commercial Multiple Peril 100%

Inland Marine 100%

Other Liability (Occurrence) 100%

Homeowners Multi-Peril 80% to 95%

Other Liability (Claims-made) 80% to 95%

Workers' Compensation 80% to 95%

Fire 80% to 95%

Multi-Peril Crop 45%

Allied Lines 35%

Medical Professional Liability 10%

Surety 10%

Farmowners Multi-Peril 10%

Accident & Health Lines 5%

Private Crop 5%

Earthquake 5%

Aircraft(all perils) 2%

Ocean Marine 2%

Warranty 2%




MARKETPLACE SUMMARY

LOSS RATIOS: AGENT-FOCUSED LINES OF BUSINESS

Source: © A.M. Best Company — used by permission. (International not shown as less than five years data is available)

Adjusted Calendar Year Loss Ratio =

Paid Losses+New Reserves ± Changes in Prior Reserves

Earned Premiums - Policy Dividends

Notes or Comments: The above bar chart shows loss ratios for the 26 lines of business focused on by independent

agents. Loss ratios are calculated as “adjusted calendar year loss ratios” (see algebraic formula above). For each line of

business, the losses used in the ratio of losses to earned premiums equals the paid losses that year, plus any estimates

of future losses that will be paid from claims that year (new reserves), plus any changes in reserves from previous years

made that year (prior reserves). The "adjusted" part is if dividends are paid out under a line of business, the loss ratio is

adjusted for that cost. When dividends paid out is a minor factor, the adjusted loss ratio and unadjusted loss ratio are

nearly the same. However, where dividends are a factor, it is important to include them in the calculation whenever loss

ratios of different lines of business are compared.


MARKETPLACE SUMMARY

Virginia Loss Ratio Perspective

As can be seen in the above, loss ratios can vary in the short run from the long run. Loss ratios can also vary by state.

For added perspective on Virginia’s loss ratios, below is a table of the 2021 Virginia loss ratios contrasted with the United

States average loss ratios.

2021 Virginia Loss Ratio 2021 United States Loss Ratio

Aircraft (all perils) 24% 54%

All Commercial Auto 58% 64%

All Private Passenger Auto 64% 69%

Allied Perils Only 34% 79%

Boiler & Machinery 91% 38%

Burglary & Theft 61% 52%

Commercial Multi-Peril 37% 61%

Earthquake -1% 3%

Excess Workers' Comp 7% 41%

Farmowners Multi-Peril 46% 65%

Federal Flood 6% 48%

Fidelity 43% 28%

Fire 39% 68%

Homeowners Multi-Peril 50% 69%

Inland Marine 65% 49%

Medical Malpractice 46% 55%

Multiperil Crop 61% 76%

Ocean Marine 64% 54%

Other Liability (Claims-made) 59% 56%

Other Liability (Occurrence) 52% 61%

Private Crop 62% 89%

Private Flood 2% 46%

Products Liability 45% 52%

Surety 10% 16%

Workers' Compensation (*) 43% 51%

Total (All Lines) 54% 63%

Source: © A.M. Best Company — used by permission (*Individual state experience for workers’ compensation in North

Dakota, Ohio, Washington and Wyoming is not used for highlights as these are monopolistic fund states and premiums

are small and loss ratios can vary widely. Also International is not shown due to limited data.)



MARKETPLACE SUMMARY

PREMIUM GROWTH RATES: AGENT-FOCUSED LINES OF BUSINESS

Source: © A.M. Best Company — used by permission. (International not shown, as less than 5 years data is available)

Notes or Comments: The above bar chart shows the percentage change in direct written premiums for the 26 lines of

business focused on by independent agents. The 1-year percentage is the percentage change in premiums from 2020

to 2021. The 5-year growth rate is the constant percentage from the first year to the last year to exactly equal the direct

written premium in 2021, when applied for the 4 previous annual periods on a compounded basis. The Total (IA-Focused

Lines) shown last is the average growth rates for the 26 lines of business focused on by independent agents.


MARKETPLACE SUMMARY

Virginia Growth Rate Perspective

Premium growth rates can vary considerably by line of business. They can also vary considerably by state. To provide

perspective on Virginia growth rates, below is the 1-year growth rates by line of business in Virginia contrasted with

average growth rates in United States.

Virginia 1-Year Growth

United States 1-Year Growth








Earthquake 19% 11%



Federal Flood 1% 1%

Fidelity 5% 7%

Fire Peril Only 2% 13%




Multi-Peril Crop 32% 37%




Private Crop 5% 14%


Products Liability -14% 4%

Surety -3% 7%

Workers' Compensation -3% 3%

Total (IA-Focused Lines) 8% 10%




MARKETPLACE SUMMARY

PENETRATION: TOP AGENT-FOCUSED LINES OF BUSINESS

Source: © A.M. Best Company — used by permission

Penetration =

Independent Agent Written Premium by Line of Business

All Written Premium by Line of Business

Notes or Comments: The clustered bar chart above shows independent agent penetration trends for the top lines of

business. Shown are the top 10 lines of business in order of direct written premium written through independent agents.

The percentages above are calculated based on premiums through independent agents, divided by all premiums for

each line of business. The 1-year and 5-year average penetration is available for the 26 lines of business focused on by

independent agents in the Lines of Business: Product Details section later in this Summary. The trend for all 26 lines of

business focused on by independent agents is provided last.

Information on classification of insurers into distribution styles is in Appendix #2: Distribution Style Classifications.


MARKETPLACE SUMMARY

Virginia Penetration Rate Perspective

Independent agent penetrations vary by line of business but also by state. To give perspective on Virginia’s penetrations

rates, below is a table of the line of business penetration rates in Virginia contrasted with the average penetration in all

the United States.

Virginia Penetration

United States Average








Earthquake 75% 87%



Federal Flood 68% 78%

Fidelity 90% 91%

Fire Peril Only 85% 88%




Multi-Peril Crop 93% 96%




Private Crop 75% 96%


Products Liability 92% 94%

Surety 84% 86%

Workers' Compensation 91% 90%

Total (IA-Focused Lines) 55% 62%

Source: © A.M. Best Company — used by permission. (International not shown less than 5 years data is available)



MARKETPLACE SUMMARY

COMMISSIONS: TOP AGENT-FOCUSED LINES OF BUSINESS


Commission %

Line of Business Direct and Contingent Commissions

Line of Business Written Premium

Notes or Comments: The above bar chart shows the commission rate paid by all insurers for 26 independent agentfocused

lines of business in alphabetical order. Shown last, Total (All Lines) is the average commission paid on all lines of

business.

The formula shows how commission percentages are calculated, where the Commission % equals the line of business

direct and contingent commissions divided by the line of business written premium.

Commission rates are based on a page in insurer annual reports called “Exhibit of Premiums and Losses (Statutory Page

14)” or the “State’s Page”. On this State’s Page insurers are required to break-out all lines of business by state and

provide data on each line of business for direct written premiums, direct earned premiums, direct incurred losses, and

commissions and brokerage expenses. The reader should note that the insurer annual report’s instructions tell insurers to

include contingent commissions.


MARKETPLACE SUMMARY

SURPLUS LINES: TOP LINES, PREMIUMS AND UTILIZATION RATE


Notes or Comments: In all the preceding charts and tables, surplus lines premiums are combined with admitted insurance

premiums. In the above pie and bar charts, the surplus lines premiums are shown separately. The pie chart shows the

lines of business where surplus lines

has the most premiums in Virginia.

Also provided are total direct written

premiums in surplus lines, and the

percentage those total direct written

premiums are to all direct written

premiums.

Readers should note the pie chart

and bar chart/line chart above are

premiums for insurers domiciled in

one of the 51 states or Washington,

DC and writing surplus lines insurance.

The premiums of these insurers are

identified by their licensed status.

Also, the above data does not include

alien insurers (that is, insurers not

domiciled in one of the 51 states).

If alien premiums were included, it

would increase the amount of surplus

lines premiums by approximately an

additional 10%. An example of an

alien surplus lines insurer is Lloyds

of London. Alien insurer data is

not included, as it is not tracked as

consistently across states nor in the

same time-frame.


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MARKETPLACE SUMMARY

Virginia Surplus Lines Perspective

The need for surplus lines varies widely by line of business and from state-to-state. Below are the line of business

utilization rates for Virginia contrasted with the average utilization with those lines of business in the United States.

Line of Business

Virginia Surplus Lines Usage

Rate

United States Surplus Lines

Usage Rate

Aircraft(all perils) 1.3% 2.1%

All Commercial Auto 3.0% 6.3%

All Private Passenger Auto 0.0% 0.2%

Allied Perils Only 23.4% 29.8%

Boiler & Machinery 5.4% 7.4%

Burglary & Theft 17.6% 19.8%

Commercial Multi-Peril 3.8% 8.7%

Earthquake 39.1% 44.5%

Excess Workers' Comp 0.0% 0.5%

Farmowners Multi-Peril 0.0% 0.4%

Federal Flood 0.9% 2.4%

Fidelity 1.8% 2.2%

Financial Guaranty 0.0% 0.0%

Fire Peril Only 26.7% 33.1%

Homeowners Multi-Peril 0.4% 2.3%

Inland Marine 3.4% 6.1%

International 0.0% 90.8%

Medical Malpractice 31.5% 24.4%

Multi-Peril Crop 0.0% 0.0%

Ocean Marine 1.2% 3.3%

Other Liability (Claims-made) 36.1% 34.9%

Other Liability (Occurrence) 19.8% 29.6%

Private Crop 0.0% 0.1%

Private Flood 48.0% 41.0%

Products Liability 35.2% 45.4%

Surety 0.4% 0.5%

Workers' Compensation 0.0% 0.5%

Total (All Lines) 5.7% 8.3%



MARKETPLACE SUMMARY

Virginia Lines of Business: Product Details

The following pages provide more in-depth detail on the

26 lines of business that independent agents in Virginia

focus on. The first line of business provided is a summary

for all lines combined, the Total All P-C Lines of Business

page. Then, the 26 lines of business detail pages are

presented in alphabetical order.

The details provided for each major line of business in

Virginia are:

• A summary bar chart of 5-years data on premiums for

all distribution types (dark blue), and premiums written

through independent agents (light blue). For the

premium chart the classification of premiums through

independent agents is based on a categorization

of agents by distribution style. The categorization

approach is explained in Appendix #2: Distribution

Style Classifications.

• 5-year average line charts, showing the Loss ratio

(dashed red line) and combined ratio (solid red line)

are provided.

• The direct written premium for independent agents,

exclusive-captive agents, and direct agents is provided

with the percentage of the total. Surplus Lines

premiums through any distribution style is provided

with its corresponding percentage of all premiums.

• The number of active insurers is provided with the

number of independent agents, exclusive-captive

agent and direct insurers provided for each line of

business. The number of active surplus lines insurers

is also provided.

• 1-year and 5-year growth rates are provided for

independent agent, exclusive-captive and direct

insurers. The percentage premiums through insurers

licensed as surplus lines is also provided.

• Top Insurers: The top 5 insurer groups in each line

of business is provided with that group’s premiums,

1-year loss ratio, and 1-year growth rate. Groups of

insurers sometimes are made up of multiple policyissuing

insurers in a particular group but it can also be

only one policy-issuing insurer in that group. After the

top groups, listed are the top policy-issuing insurers

distributing insurance through independent agents,

captive-exclusive agents, direct insurers, surplus lines

insurers and the top risk retention group (if any) for

the line of business. For each policy-issuing insurer

the premium for the insurer in that line of business

is shown with the 1-year loss ratio and 1-year growth

rate.

As you scroll through the following lines of business pages

take notice if a small pie chart thumbnail is presented at the

upper-right. If there is a pie chart present, that means the

product is in the top 10 lines of business for independent

agents in Virginia. The broken-out pie slice in that small

pie chart represents the position of that line of business,

and its rank-order based on independent agent premium

volume. The rank-order is based on direct written premium

and corresponds to the pie chart slice highlighted on Page

4 of this 2021 Virginia P-C Marketplace Summary. If a line

of business is in the top 10 for a state but not a line of

business generally focused on by independent agents it

has been added.

For further clarification on lines of business, Appendix

#3: NAIC Line of Business Definitions is provided for the

reader. And, a visual guide to the data and calculations

in the product details is provided in Appendix #4: Product

Details Explanation.

P-C Insurance Industry Summary Provided by

Real Insurance Solutions Consulting

This 2021 Virginia P-C Marketplace Summary has provided

the reader with both visual and numeric presentations of

the Virginia P-C marketplace data, as a benefit of your

membership with the Independent Insurance Agents of

Virginia. All questions and comments, or need for further

analysis, are welcomed at the contact information below.

Remember, you can get a copy of the entire report by

contacting members@iiav.com.

Real Insurance Solutions Consulting, LLC

Paul A. Buse, Principal

www.realinsurancesc.com

301-842-7472


ICUMI - ROUGH NOTES

121946262 © Piyapong Thongcharoen | Dreamstime.com

MENTAL HEALTH SUPPORT IN

EVERYDAY INTERACTIONS

STARTING CONVERSATIONS, UPLIFTING LIVES

By Thomas A. McCoy, CLU

In January, we reported on the growing interest in

providing mental health support in the workplace.

Benefit plans are broadening their mental health

offerings, including digitally delivered solutions, and

these have the potential to make a real difference in

the lives of workers and their families.

Another dimension of mental health care takes place in the

human interactions that agents and brokers experience

every day with colleagues, family, friends and others in their

community. Agents give, as well as receive, mental health

support in their role as a boss, parent, coach, leader, mentor

and colleague.

The emphasis is on the every day. A broken bone may be

healed and never need attention again. Taking care of

mental health is more like the need for physical exercise and

a good diet; if neglected, there are consequences.

The struggle is real

“Most of the United States work-force is experiencing a

heightened amount of stress,” says Adele Spallone, head of

clinical operations for workers compensation and disability

at The Hartford. “We’re asking employers to educate their

workforce about mental health, to minimize stigma and

encourage their workers to seek help when they need it.

“It’s okay to talk to somebody. It’s okay to engage with some

of the digital apps or talk to someone on telehealth if you

don’t want to see a behavioral health professional in person.

It’s really all about the person experiencing a behavioral

health condition and understanding that they have a need

for help and that they are validated.”

Still, she points out, The Hartford’s 2021 Future of Benefits

Study shows that among workers in a wide range of

organizations “only 56% said the leadership at their

company encourages conversation around mental health.”

This compares to 77% of employers who said leadership

at their company encourages conversations about mental

health.

This statistic points to the difficulty inherent in starting

mental health conversations. It’s hard whether you’re an

executive in a large company or you’re an independent

agent with a much smaller workforce. You might suspect—

or maybe not—that someone you work with, live with, or

see regularly in the community needs encouragement to

seek mental health support. But knowing how to help them

isn’t easy.

Demographics

Recent research by employee benefits providers shows

that younger generations are prime candidates for mental

health support, both in terms of their need and their

interest in receiving support. A Swiss Re study of some

4,500 consumers conducted during the early stages of

the pandemic identified a target group of those most

enthusiastic about support for their mental well-being: 58%

were ages 25 to 40, 32% were 41 to 55, and 10% were 55

and above.

The Hartford’s 2021 Future of Benefits Study found that

workers experiencing the most frequent feelings of

depression or anxiety was delineated as Gen Z/Younger

Millennials (52%), Older Millennials (38%), Gen X (26%), and

Baby Boomers (10%).

“It can be more helpful just to be available to listen and

support and express understanding; and also letting

young people know that you have felt the same way …

.” —Dr. Erica Gibson, Division Chief of Medicine, UVM

Children’s Hospital


ICUMI - ROUGH NOTES

REGARDLESS OF THE TYPE

OF MENTAL HEALTH SUPPORT

AN INDIVIDUAL MAY NEED,

GETTING PAST THE INITIAL

HURDLE OF REACHING OUT FOR

SOME KIND OF HELP MAY BE

THE HARDEST.

Mental health needs, like physical health needs, are present

in all generations, but in reaching out to those in need, the

lower end of the age scale appears to be a priority. Dr. Erica

Gibson, division chief of medicine at the UVM Children’s

Hospital in Burlington, Vermont, spoke at a recent podcast

presented by the University of Vermont Health Network

about ways for parents to talk to their children who might

be struggling with their mental health.

“I think it’s really important to normalize emotions and

discuss them openly and acknowledge them,” she said. “It’s

not so helpful to tell people, ‘Don’t cry,’ or ‘Don’t worry.’

It can be more helpful just to be available to listen and

support and express understanding; and also letting young

people know that you have felt the same way can be very

helpful, too. And then working with them to help figure out

in their own way what they might need to feel better is really

important.

“We can be so quick to rush in with words and action steps

when people are in distress, and sometimes that’s really

necessary, but it can also be okay just to sit in silence and

listen.”

Overcoming barriers

Swapnil Prabha, vice president of digital offerings solutions

at Unum, says, “The events over the last two years have

normalized conversations around mental health to some

extent. However, the stigma associated with seeking

treatment for mental health remains a barrier.”

For agents and brokers looking for an opening to a

conversation with someone about their mental health, a wellknown

sports figure might be a good point of reference. Last

summer Simone Biles, who had been performing at the top

of the gymnastics world, removed herself from competition

at the Summer Olympics out of concern for her own mental

well-being. Her decision has been widely acclaimed by her

fellow athletes and leaders in many fields.

The National Football League has been running public

service video messages from players whose lives have been

changed by mental health issues. They

encourage people to talk openly about

mental health and seek help when

needed.

One video segment features Michael

Robinson, a former NFL fullback with

the Seattle Seahawks, where he says,

“As an athlete, the biggest challenge

regarding mental health is having to

express it. I was kind of from the old

school way of playing football, where

you never told anybody if you were

going through something at home. It

was a tough man’s kind of sport.”

The video begins with Robinson’s personal story. His uncle,

who lived with Robinson’s family, suffered from mental

health problems. “I knew at an early age how important it is

to have a support system around you when you’re dealing

with your mental health,” Robinson says in the video.

He talks about the pressure of playing in the NFL, where a

player’s job security can be quickly upended by competition

from the new players who are continually coming on board.

“It can definitely put some anxiety on you.

“About halfway through my career, I came to the Seattle

Seahawks, and that’s when the conversation started to

change,” Robinson continues. “Coach Pete Carroll did

a great job of nurturing good mental health. We would

actively talk about how you’re feeling, not about how you’re

playing.”

Words matter

Spallone, who is also a licensed behavioral health clinician,

says, “Openly talking about mental health is number one

in addressing the stigma that exists, but not everyone is

comfortable talking about it. Changing the language we

use can be very meaningful and helpful.”

For example, she says, “Maybe we can talk about ‘wellbeing’

instead of ‘mental health.’ When people hear ‘mental

health’ they think about a psychiatric illness versus a simple

medical condition.

“It’s important to avoid words tied to stigma.

“Changing the language we use can be very meaningful

and helpful … . We can talk about ‘well-being’ instead

of ‘mental health.’ … We can substitute the word

‘abuse’ for ‘misuse.’” —Adele Spallone, Head of Clinical

Operations, Workers Compensation and Disability, The

Hartford



ICUMI - ROUGH NOTES

“We can substitute the word ‘abuse’ for ‘misuse.’ Nobody

wants to think that they are ‘abusing substances,’ but we

have seen an increase in alcohol consumption during the

pandemic. It might be easier for someone to say, ‘maybe I

have been misusing alcohol.’”

In addition, The Hartford’s 2021 Future of Benefits report

notes that its non-profit partner, the National Association on

Mental Illness (NAMI), suggests avoiding the terms “suffer,”

“disorder” or “afflicted.” Consider using “treatment plan of

my choice” or “what works for me.”

In fact, the perfect slogan for taking care of mental health

care needs—in contrast with physical health care—could

well be “What works for me.” The human mind and the

emotions that make up a person are unique.

Accessing help

When mental health needs call for therapy, the cost and

access to therapists can be an obstacle. In a recent survey

of workers in various industries, Mercer provided a list of

mental health care solutions and asked the workers to rate

those they would most value from their employer. The

leading response (49%) was “a program that reduces the

cost of mental health treatment (including therapy and

medication).”

Online treatment of mental health, which can reduce

costs and improve access to care, has gained momentum

during the pandemic, along with telemedicine for physical

health. The Mercer survey reported that 42% of employees

expressed a preference for “virtual mental health counseling

to manage anxiety, sadness or personal relationship issues.”

The survey participants also said they value “virtual support

groups for those who are feeling alone and isolated” (39%)

and “tools that provide training on how to identify and

support others facing mental health challenges” (38%).

Just realizing that there could be insurance coverage

available can be important. A recent research report by

Swiss Re notes, “Mental health cover is available as part of

disability and medical insurance policies; even critical illness

typically covers severe mental health conditions.” Yet, Swiss

Re found that among the workers that the report identified

as most interested in receiving mental health support in the

workplace, 71% were unaware of policies offering coverage

for negative mental health episodes.

Work in progress

It could be comforting to an individual puzzling over whether

they should seek mental health care to realize that there is

a wide continuum of possible mental health needs, some of

which can be categorized as “preventative.” The Swiss Re

study found that almost half of those who were interested

in receiving mental health support (46%) consider-ed their

mental health to be “good” or “very good.”

Unum recently introduced to employers a behavioral health

solution in which a worker can enroll in one of three paths,

depending upon a guided assessment of their mental health

needs. One of those paths, as described by Unum, is a “selfguided

program” for those with “low levels of stress.” The

content in this path is designed to help “identify triggers

and opportunities for combatting stress as they build their

own wellness action plan.”

As more people begin to think of mental health care—like

physical health care—as something to approach in a proactive,

“preventative maintenance” way, we could be one

step closer to eliminating the stigma and normalizing the

mental health conversation.

Regardless of the type of mental health support an individual

may need, getting past the initial hurdle of reaching out for

some kind of help may be the hardest. That is where agents

and brokers, in their everyday roles as a mentor, boss,

colleague, parent or friend, may be the most important

contributor to someone’s mental health.

FOR MORE INFORMATION:

The Hartford

thehartford.com

National Alliance on Mental Illness

nami.org

NFL Mental Health Awareness

nfl.com/playerhealthandsafety/health-and-wellness/

mental-health/

Swiss Re

swissre.com

University of Vermont Health Network

medcenterblog.uvmhealth.org/category/behavioral-andmental-health/

Unum Insurance

unum.com

Thomas A. McCoy, CLU, is an Indiana-based freelance

insurance writer

Reprinted from the March 2022 issue of Rough Notes

magazine with permission.


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