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November 1, 2024

With More Tourists Comes More Risk for Wildfires
As climate change intensifies, the delicate balance between tourism and environmental safety in wildfire-prone areas like Mariposa, California, becomes increasingly fraught. Mariposa, known for its proximity to Yosemite National Park, embodies the charm of rural life that draws both permanent residents and millions of visitors each year. However, recent years have shown that this influx comes at a significant cost—heightening the risk of wildfires, which is a growing concern for the insurance industry.

The Rising Popularity of Outdoor Recreation

Tourism has surged in the area, bringing both economic benefits and safety concerns. According to the Bureau of Economic Analysis, the outdoor recreation industry contributes $1.1 trillion annually to the U.S. economy, with California alone accounting for $73 billion of this sum. This boom has fueled developments like luxury camping sites, or glamping, which promise both comfort and immersion in nature. One such project, proposed by Kampgrounds of America (KOA), plans to add hundreds of glamping tents and RV campsites to Mariposa. But with more tourists come risks that residents and local leaders are increasingly wary of.

Wildfire Dangers Magnified by Tourism

The increased presence of visitors not only puts additional strain on local resources but also escalates the risk of fire ignitions. RV chains dragging on roads, campfires, and improper disposal of cigarettes by inexperienced tourists are common triggers for wildfires in these high-risk areas. The 2022 Oak Fire, which devastated parts of Mariposa and forced emergency evacuations, remains fresh in residents' memories, illustrating how easily a fire can start and spiral out of control. Insurance carriers are well aware of these dangers. The demand for home and business insurance in areas like Mariposa is complicated by recurring wildfires. Many residents have turned to the California Fair Plan, a last-resort insurance pool that, while providing coverage, is costly and limited. As more tourists flock to the area, the need for comprehensive insurance and risk mitigation strategies becomes even more critical.

The Insurance Implications of Increased Development

For the insurance industry, the proposed KOA glamping project raises several red flags. The influx of up to a thousand new visitors could compound existing evacuation challenges, especially when Mariposa’s narrow two-lane roads become lifelines during emergencies. This potential bottleneck not only risks lives but could strain local emergency services, impacting the efficiency of response teams during crises. Moreover, infrastructure that supports tourism can exacerbate wildfires. Water scarcity, a pressing issue exacerbated by climate change, could hinder firefighting efforts. Local residents are already paying high insurance premiums or, in some cases, foregoing coverage altogether due to the rising costs. The addition of more tourists could tip the scales, putting further pressure on already strained insurance pools.

An Urgent Call for Comprehensive Risk Management

Insurance experts understand that wildfire risk isn't isolated; it touches on home, business, liability, and even travel insurance sectors. With increased tourism, insurers need to adapt policies that reflect the heightened risk and incentivize proactive fire prevention measures.
  • Community preparedness: Promoting community-wide risk management programs, including evacuation drills and public awareness campaigns, can help mitigate the impact of fires.
  • Enhanced coverage options: Supplementary insurance products tailored to wildfire-prone areas could fill critical gaps. Policies that cover emergency accommodation, long-term displacement, and infrastructure damage are increasingly necessary.
  • Climate-resilient infrastructure: Encouraging or requiring resilient construction for new developments—such as fire-resistant materials and defensible space—could also reduce insurance claims.

Moving Forward with Eyes Wide Open

The KOA proposal in Mariposa represents a microcosm of broader challenges facing rural, climate-vulnerable communities across the western U.S. While economic opportunities from increased tourism are undeniable, they come with steep trade-offs. For insurers, the challenge lies in balancing the need to protect customers while managing the financial implications of heightened wildfire risks. Supporting communities through sustainable risk management practices and developing innovative insurance solutions are essential steps. As more glamping sites and tourist accommodations emerge, the insurance industry must remain vigilant. The situation in Mariposa serves as a reminder that, in a warming world, the delicate relationship between tourism and nature requires thoughtful navigation—not just to safeguard profits but to protect communities and the lives of those who call these areas home.
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November 1, 2024

Homeowners Insurance and Cryptocurrency: The 4th Circuit Ruling and Its Impact on Policyholders
A recent ruling by the 4th Circuit Court of Appeals has affirmed what many policyholders may find surprising: homeowners insurance policies do not cover the theft of cryptocurrency. This decision has broad implications for homeowners, particularly as digital assets become more integrated into everyday financial portfolios.

Understanding the Case: The Limits of "Direct Physical Loss"

The court's decision stemmed from a lawsuit involving Ali Sedaghatpour and Lemonade Insurance. Sedaghatpour had stored $170,424.67 worth of cryptocurrency in a hot wallet hosted by APYHarvest, accessible via the internet and located overseas. On December 31, 2021, he discovered the cryptocurrency had been stolen and subsequently filed a claim under his homeowner's policy for $160,000. Lemonade denied the claim, stating that the policy only covered tangible property subjected to "direct physical loss," a clause that digital assets do not meet. The insurer reasoned that even if cryptocurrency were covered, the policy’s specific limitation of $500 for losses related to the unauthorized use of electronic fund transfer devices applied. Lemonade paid Sedaghatpour this $500 but denied any further coverage. Sedaghatpour challenged this decision in court, arguing that the policy should cover cryptocurrency losses without such a restrictive limitation. However, both the district court and the 4th Circuit ruled against him, underscoring that a "direct physical loss" requires a tangible impact on property.

Why "Direct Physical Loss" Matters

At the heart of the ruling was the interpretation of "direct physical loss." The court cited that cryptocurrency, as defined by various sources including the IRS, exists wholly in a digital form without physical presence. Unlike a physical asset that could suffer damage or destruction, digital currency remains intangible. The decision highlighted that while theft may cause financial harm, it does not meet the criteria of a "direct physical loss," which would require physical damage to property owned by the policyholder. The case also referenced a 2003 decision involving Hartford Insurance, which determined that the deletion of files could only be considered a "direct physical loss" if it directly affected the plaintiff’s computer system. In Sedaghatpour’s situation, the theft occurred on external servers, reinforcing the conclusion that no physical loss to his own property had occurred.

Implications for Homeowners Insurance Policyholders

This ruling signals to homeowners that their standard policies are unlikely to cover losses involving digital assets. As cryptocurrencies gain wider acceptance and value, policyholders should be aware of the limitations within their insurance coverage. Here’s what this decision means for homeowners:
  • Digital assets require specialized coverage: Homeowners looking to protect their cryptocurrency investments should seek specialized insurance products designed to cover digital assets. Traditional homeowners policies focus on tangible property and may not provide sufficient protection.
  • Policy language is critical: The case underscores the importance of understanding policy language. "Direct physical loss" is a phrase found in many insurance policies, and its interpretation can determine the scope of coverage.
  • Potential for future policy evolution: As digital assets become mainstream, the insurance industry may evolve to offer comprehensive solutions that bridge this gap. Until then, homeowners should consider third-party coverage options or endorsements specific to cryptocurrency.

The Path Forward for Homeowners

For homeowners like Sedaghatpour, who have substantial digital assets, this ruling is a wake-up call. It emphasizes the need for due diligence when selecting insurance policies and exploring additional coverage to secure investments not traditionally covered under standard policies. Consulting with insurance providers about riders or supplemental policies specifically covering digital assets can help prevent the kind of financial loss that occurred in this case. In conclusion, the 4th Circuit's decision is a clear reminder that homeowners insurance policies are not one-size-fits-all. As technology and asset types evolve, so too must the coverage strategies homeowners employ to protect their investments.
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November 1, 2024

Florida’s Insurance Market Crisis: A Growing Concern for Homeowners and Insurers Alike
The Florida home insurance market is facing significant turbulence, creating an uncertain environment for residents and insurance providers alike. The state’s escalating insurance crisis is not only impacting the affordability of coverage but also contributing to an exodus of homeowners who are unable to manage skyrocketing premiums. This multi-faceted issue has evolved over the years, with no clear solutions in sight.

Rising Costs and Uncertain Coverage

The high frequency of devastating hurricanes in recent years has heavily influenced the market. Hurricane Ian, for example, incurred $112 billion in damages, making it the costliest storm in the state's history. More recent hurricanes, like Helene and Milton, have added significant financial strain with combined damages exceeding $3.8 billion. These events have driven up the costs of reinsurance—essential financial protection that insurers rely on to cover large payouts after natural disasters—causing premiums for homeowners to soar. As a result, Florida homeowners faced an average annual premium of $10,996 in 2023, the highest in the U.S., according to industry data. This financial burden has led some residents to self-insure or choose limited coverage, a risky alternative that leaves them vulnerable in the face of potential disasters.

The Role of Citizens Property Insurance Corporation

Many homeowners who cannot find private insurance have turned to Citizens Property Insurance Corporation, the state’s insurer of last resort. Created in 2002, Citizens has seen an unprecedented surge in policyholders, jumping from 421,332 active policies in 2019 to over 1.26 million by September 2024. This increase is a clear indicator of the deepening crisis. However, Citizens is actively working to shift policyholders back to private insurers to reduce its exposure, a process known as “depopulating.” Policyholders are being reassigned to private insurers if the new coverage costs do not exceed 20 percent of their current rate. While intended to promote market stability, this strategy has left many residents anxious about affordability and long-term viability.

Fixed Incomes Strain Under High Premiums

The insurance crisis has placed a particularly heavy burden on retirees and those with fixed incomes. Many are now reevaluating whether they can remain in Florida, faced with the harsh reality that rising insurance premiums could exceed their budgets. For these residents, balancing the cost of living with comprehensive insurance coverage has become increasingly difficult. The reliance on Citizens as a fallback option is no longer as secure as it once seemed. With new policies being transitioned back to the private market, residents are caught between staying with limited or unaffordable options and considering relocation.

Industry Response and Market Adjustments

Florida regulators have approved new property insurers to enter the market in hopes of stabilizing it. While this move may provide some relief, it has yet to address the long-standing issues of rising reinsurance costs, frequent litigation over fraudulent claims, and the ever-present threat of hurricanes. To further mitigate the strain, the Citizens Board of Governors endorsed a rate increase of 14 percent, aligning it more closely with private market rates. This is part of a broader effort to encourage policyholders to seek private coverage, but it comes at the expense of further financial pressure on homeowners.

Implications for the Insurance Market

The challenges in Florida’s insurance market reflect broader concerns for the industry. Insurers face heightened risks and increased claims payouts, which affect their willingness to underwrite policies in high-risk areas. The combination of increased claims, legal expenses from fraudulent activities, and reinsurance costs contribute to the ongoing market volatility.

The Search for Sustainable Solutions

As Florida continues to grapple with these issues, the need for innovative solutions becomes more urgent. Measures such as expanded reinsurance options, legislative reforms to curb fraudulent claims, and incentivizing new market entrants may help stabilize the situation. However, until more comprehensive strategies are implemented, both homeowners and insurers will remain in a precarious position, facing an uncertain future in the Sunshine State.
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October 31, 2024

States Prepare for Autonomous Vehicles
As states across the U.S. begin to prepare for the future integration of self-driving cars into daily traffic, significant legislative moves are shaping the landscape of automotive and insurance industries. Recent developments, highlighted in a comprehensive piece by Elaine S. Povich for Stateline, illustrate the proactive steps being taken to address the safety and liability concerns surrounding autonomous vehicles.

Overview of Legislative Trends

States are actively legislating to set the groundwork for the safe operation of fully self-driving cars. For instance, Kentucky's new law mandates a $1 million liability insurance minimum per vehicle—significantly higher than the requirement for conventional vehicles. This legislative push reflects a broader trend of preparing legal frameworks to accommodate the shift towards vehicle automation, with the safety of drivers, passengers, and pedestrians in mind.

Insurance Industry at a Crossroads

The insurance sector faces a paradigm shift with the advent of autonomous vehicles. Here’s what this means for the industry:
  • Adjusting to Higher Liability Requirements: States like Kentucky are setting high insurance minimums for autonomous vehicles, acknowledging the potential risks involved. Insurers will need to recalibrate policies to accommodate these higher liability thresholds.
  • Evolving Risk Assessments: As the technology behind autonomous vehicles improves, insurers must develop new models to assess risks associated with automation. The traditional metrics used to evaluate driver risk will transform, shifting focus towards software reliability, cybersecurity threats, and system redundancies.
  • Navigating Regulatory Changes: With states like California and Alabama enacting their own regulations, insurers must stay agile, adapting to a patchwork of state-specific requirements that could affect policy pricing and coverage scope.

Challenges and Opportunities

The transition to autonomous vehicles isn't without its challenges. Labor concerns about job displacement in the driving sector and technological readiness, especially for large commercial vehicles, reflect broader anxieties about automation. However, these vehicles also offer the potential to reduce accidents caused by human error, suggesting a long-term decrease in claims related to driver negligence. Insurance companies must now consider:
  • Who is at Fault?: With autonomous vehicles, determining liability in the event of an accident becomes complex. Is the manufacturer at fault due to a software malfunction, or does liability lie with the vehicle owner for maintenance failures?
  • Policy Adjustments: Insurance policies may need to evolve to cover unique aspects of autonomous operation, such as software integrity and data privacy.

Looking Forward

As states like Kentucky push forward with regulations that will shape the future of autonomous driving, the insurance industry must proactively engage with these changes. Understanding the implications of new laws and preparing for the shift in risk dynamics will be crucial for insurers to effectively serve their clients in a new era of transportation. By staying informed and adaptable, the insurance sector can not only address the emerging challenges posed by autonomous vehicles but also capitalize on the opportunities to lead in an evolving market.
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October 31, 2024

The Future of Insurance: Brokers and Independent Agencies at the Forefront of Distribution and Risk Management
As we approach the horizon of 2030, the landscape of insurance distribution is undergoing a transformative shift. This change is illuminated in PwC's report, "Insurance 2030," which highlights the evolving roles of insurance brokers and independent agencies (IAs) as crucial players in a world where the dynamics of risk and client needs are increasingly complex.

Navigating Through Technology and Partnership

According to the PwC report, traditional methods of insurance distribution are being challenged by the rise of digital platforms and direct-to-consumer models. This shift is particularly evident as carriers reevaluate their sales strategies, moving away from exclusive or captive sales frameworks. In response, savvy brokers and IAs are leveraging advanced analytics, artificial intelligence, and strategic partnerships to stay ahead. By 2030, we anticipate a landscape where brokers and IAs collaborate closely with managing general administrators (MGAs), managing general underwriters (MGUs), reinsurers, and a plethora of third-party service and data providers. These relationships enable them to offer bespoke solutions that include captive services, comprehensive risk management, and monitoring tools—essential in a world where risks such as climate change are on the rise.

The Strategic Advisor Role

The PwC report underscores the transition of the modern broker and IA from traditional sales roles to that of strategic advisors. This shift is particularly crucial in addressing the needs of clients who face sophisticated challenges and require more than simple coverage. These high-touch interactions are increasingly valued, especially among clients with complex, multi-line, or high net worth exposures who seek tailored advice and innovative solutions.

The Digital Divide: Addressing the Lower End of the Market

While the focus on high-value clients intensifies, the lower end of the market is also transforming. The rise of the "bare minimum" buyer, who seeks straightforward, cost-effective insurance solutions, is leading to the commoditization of insurance products. Carriers are responding by integrating digital tools like chatbots to serve these customers, potentially sidelining traditional brokerage roles in this segment.

Climate and Sustainability: A Growing Focus

An area where brokers and IAs are set to play an increasingly vital role is in climate and sustainability risk management. As the effects of climate change become more pronounced, there is a burgeoning demand for products and services that address these risks. Brokers and IAs are ideally positioned to bridge the gap between these needs and the solutions available, facilitating sustainable growth and resilience for their clients.

Beyond 2030: A Vision for Continuous Relevance

Looking beyond 2030, the success of brokers and independent agencies will hinge on their ability to adapt to an ever-changing environment. The continuous reinvention of distribution models, coupled with a proactive approach to emerging risks, places them in an excellent position to remain relevant and successful. In sum, as we move towards a more interconnected and digitally driven world, the role of the insurance broker and independent agency is more crucial than ever. By embracing innovation, fostering strategic partnerships, and prioritizing advisory roles, they can navigate the complexities of modern risks and insurance needs, ensuring both their relevance and success in the future of insurance distribution, as detailed in PwC's insightful report, "Insurance 2030."
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October 31, 2024

Severe Weather Alert: Tornadoes and Wind Damage Expected in Central Plains
Based on recent forecasts from The Weather Channel, the Central Plains is set to experience significant severe weather this Wednesday, including potential tornadoes, damaging wind gusts, and hail. This incoming robust fall cold front is not just a meteorological concern—it carries substantial implications for the insurance industry. As insurers and policyholders brace for the potential impacts, understanding the specific threats and preparing for their fallout is crucial to managing risks and claims effectively.

Current Severe Weather Outlook

The severe weather, forecasted for Wednesday afternoon and evening, is expected to impact areas from the Corn Belt to the Southern Plains, with a particular focus on eastern Kansas, central and northeast Oklahoma, and western Missouri, including the metro areas of Kansas City, Oklahoma City, and Wichita. The possibility of multiple tornadoes, including at least one strong tornado (EF2 or greater intensity), alongside damaging wind gusts and hail, poses a direct threat to properties and infrastructure.

Insurance Implications

For the insurance industry, these severe weather predictions underscore the need for readiness and rapid response. Here’s how insurers should prepare:
  • Anticipate a claims surge: The forecasted conditions suggest a likely increase in claims related to wind and hail damage. Insurers should prepare their adjusters to quickly and accurately assess damages to expedite the claims process.
  • Proactive policyholder communication: Effective communication is key. Insurers should proactively reach out to those in the affected regions with guidance on how to protect property and navigate the claims process efficiently.
  • Coverage review with clients: This severe weather event serves as an important prompt for insurers to review and discuss policy details with clients, ensuring they are well-informed about their coverage limits and exclusions, especially concerning wind and hail damage.

Looking Ahead

While the intensity of the weather is expected to decrease as the cold front moves eastward on Thursday, the risk of strong storms will continue across the Ohio Valley to the Deep South. These storms are primarily expected to bring strong wind gusts, but an isolated tornado is also possible in the lower Mississippi Valley. For those planning Halloween activities, be prepared for potential interruptions from the weather. It’s important for residents in affected areas to follow local weather updates and be ready to adjust plans as needed. For insurers, staying informed and prepared for severe weather events like this is essential for minimizing losses and maintaining trust with clients. This proactive approach in risk management and customer communication is vital in enhancing overall client satisfaction and resilience.
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October 30, 2024

How Commercial Real Estate Is Adapting to Expensive Coverage
The commercial real estate industry is grappling with the escalating cost of property insurance, driven by a combination of scarce reinsurance, persistent inflation, regulatory restrictions, and a spike in weather-related claims. These rising costs are impacting net operating incomes, commercial property valuations, and even transaction viability for investors. The Urban Land Institute (ULI) and Heitman, a global real estate investment management firm, have released a new report, Insurance on the Rise: Climate Risk and Real Estate Investment Decisions, which outlines strategies to tackle these mounting challenges. For investors, navigating the complex landscape of higher premiums and reduced availability will require a combination of creative insurance approaches and a forward-looking investment strategy that mitigates climate risk.

Why Rising Insurance Costs Are Shaking Up Commercial Real Estate

Increased insurance premiums are having ripple effects across the commercial real estate market. Property owners are seeing their net operating incomes eroded by escalating coverage costs, while some are facing challenges securing financing, with lenders now placing stringent insurance requirements on loans. This has also led to stalled property transactions and lower asset valuations, putting pressure on stakeholders to re-evaluate risk management practices. "Rising insurance costs are a significant factor impacting liquidity in the commercial real estate market," explained Laura Craft, Global Head of Portfolio Sustainability Strategies at Heitman. As insurers work to limit exposure by adjusting pricing, investors are taking on more financial risk upfront. Craft emphasized the importance of strategic adaptation, noting that the ULI-Heitman report provides actionable insights for stakeholders to maintain portfolio resilience in these uncertain times.

Two-Pronged Approach: Creative Coverage and Strategic Risk Management

To adapt to rising insurance costs, ULI and Heitman recommend a two-pronged strategy that combines creative insurance solutions with risk-aware investment decisions:
  • Creative insurance solutions: Property owners should consider diversifying their insurance portfolio by piecing together coverage from multiple carriers, opting for higher deductibles, or exploring non-traditional options like self-insurance or captives. Additionally, parametric insurance and surplus lines coverage are being utilized as alternative ways to secure protection in the face of traditional market constraints.
  • Risk-aware investment strategies: Investors need to think beyond simply purchasing coverage. Instead, they should focus on managing their portfolio's exposure to physical climate risks, enhancing the resilience of individual assets, and strategically diversifying holdings. This approach includes considering the location, construction type, and asset scale to make a property more attractive to insurers.

Emerging Trends to Watch: Insurance, Migration, and Climate Risk

The report also discusses potential spillover effects from the single-family residential insurance market. With homeowners facing rising costs and limited coverage availability, commercial real estate stakeholders need to watch for changes in migration patterns that could affect demand. The "insurance protection gap" — where properties are left partially or completely uninsured — and concerns around the solvency of government-backed insurance programs are growing issues that may influence market viability and investment decisions. "As extreme weather events become more frequent and intense, relying solely on property insurance as a risk reduction strategy is insufficient," said Lindsay Brugger, Vice President of Urban Resilience at ULI. "Proactive climate risk management must be integrated into real estate investment to ensure resilience in the face of these challenges."

Looking Forward: Navigating the Insurance Landscape

For commercial real estate investors, the escalating costs of property insurance are here to stay. Adopting innovative coverage tactics and integrating climate risk management into investment strategies can help keep properties insurable and profitable, despite the challenges. As the insurance market continues to evolve, staying ahead of the curve by adapting to these emerging trends will be key to maintaining competitiveness and resilience in the commercial real estate sector. For more insights on managing climate risk and property insurance in commercial real estate, explore ULI and Heitman’s full series of research reports on the intersection of climate risk and real estate.  
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October 30, 2024

ReSource Pro Named a 2024 Power Partner by Inc. Magazine

 ReSource Pro has been recognized in the 2024 Inc. Power Partner Awards for its proven support of both long-standing and newly emerging companies. This year’s list recognizes ReSource Pro among 359 companies in marketing, financial services, productivity, and other critical business areas. ReSource Pro joined the list for maintaining a client retention rate above 90% over the last 10 years, among other initiatives to support over 1,800 insurance organizations, including carriers, brokers and MGAs.

This recognition follows ReSource Pro's inclusion on this year's Inc. 5000 list, making it the only company in the insurance industry to appear 15 times. Over the past three years, the company’s revenues have grown by an average of 24.41% annually — a testament to its commitment to building long-term value for clients and its role as a leading strategic operations partner to insurance organizations. The company offers strategic advisory services, process optimization, workforce management, and automation solutions — all capabilities built to boost client productivity and profitability in both the near and long term.

“At ReSource Pro, we believe the greatest successes come from true partnerships. Our clients see us as more than just a service provider — they see us as a trusted partner, collaborating to drive innovation, enhance business outcomes, and deliver exceptional value,” noted ReSource Pro CEO Dan Epstein. “We are fortunate to work with many of the most successful insurance organizations, and to have achieved a 96% client retention rate means we continue to meet and exceed the expectations of those same clients year after year. Together, we create solutions that go beyond what any one company can achieve on its own, and that’s the key to thriving in today’s rapidly evolving insurance industry.”

Every company on the Inc. Power Partner award list received top marks from clients for being instrumental in helping leadership navigate today’s complex business challenges.  These B2B partners support organizations across various aspects of their business, enabling clients to focus on their core missions

“This is our definitive listing of vendors and suppliers who have demonstrated excellence in serving small- and midsize customers,” said Inc. editor in chief Mike Hofman. “As part of the vetting process, our team of editors, researchers and reporters gathered information on companies’ products and services, assessed their reputation as captured in online comments and forums, and collected customer testimonials to ensure that the sales pitch matches the actual client experience. In every case, we spoke to founders like you who were happy to attest to a vendor’s genuine commitment to a mutually beneficial business partnership. We’re happy to be the conduit for that positive word of mouth.”

To view the complete list, go to: https://www.inc.com/power-partner-awards/2024

The November 2024 Issue of Inc. magazine is available online now at https://www.inc.com/magazine  and will be on newsstands beginning October 29, 2024. 

About ReSource Pro

Focused exclusively on the insurance industry, ReSource Pro is a trusted strategic operations partner to insurance organizations seeking to increase their productivity and profitability. With a global team of more than 10,000 employees, ReSource Pro operates at the critical intersection of people, process, technology and data to serve more than 1,800 clients across the carrier, broker and MGA segments – consistently earning a +96% client retention rate for over a decade. It offers expert advisory services, proven business process management optimization and transformative data and technology solutions. For the 15th time since 2009, the company was recognized in 2024 by Inc. 5000 as one of the fastest growing companies in the US.

About Inc.

Inc. is the leading media brand and playbook for the entrepreneurs and business leaders shaping our future. Through its journalism, Inc. aims to inform, educate, and elevate the profile of our community: the risk-takers, the innovators, and the ultra-driven go-getters who are creating our future. Inc.'s award-winning work achieves a monthly brand footprint of more than 40 million across a variety of channels, including events, digital, print, video, podcasts, newsletters, and social media. Its proprietary Inc. 5000 list, produced every year since its launch as the Inc. 100 in 1982, analyzes company data to rank the fastest-growing privately held businesses in the United States. The recognition that comes with inclusion on this and other prestigious Inc. lists, such as Female Founders and Power Partners, gives the founders of top businesses the opportunity to engage with an exclusive community of their peers, and credibility that helps them drive sales and recruit talent. For more information, visit www.inc.com.

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October 30, 2024

SIAA Fall Business Meeting Creates Awareness and Recognizes Success
SIAA, The Agent Alliance, created quite a buzz at its semi-annual Business Meeting last week, starting with its annual Pink Evening in Boston with SIAA. The reception/event serves to raise awareness in the fight to defy cancer and as a fundraiser for the Dana-Farber Cancer Institute. The event raised $67,699 for the Institute, bringing the total to $388,000 through six events. SIAA's Chief Executive Officer, Matt Masiello, commented, "It continues to humble and amaze me when I see my business colleagues and team members step-up for this great cause year after year." The Business Meeting ran from October 22nd through the 24th at Boston's Marriott Copley Place, with 350 insurance professionals from across the country in attendance. On the morning of October 23rd, Julie Braley, SIAA’s Chief People Officer, moderated a panel discussion on “Women in Insurance”. The panelists were:
  • Casey Kempton, President, Personal Lines – Nationwide
  • Lauren Dunnigan, Senior Vice President, National Distribution – AmTrust
  • Laura Henderson, Vice President, Portfolio Management – SIAA
  • Alex Huffman, Regional Vice President, Operations – SIAA
  • Joe Walker, Asst. Vice President, Region Director – Liberty Mutual
Several audience members stated that the discussion was “impactful”, “engaging”, and “important”. The panelists’ comments centered on the current state of positions and roles for women professionals in the insurance industry and how all insurance professionals can aid in the future success of women as leaders and in the industry as a whole. An additional highlight of the business meeting was the presentation of the first ever SIAA Distinguished Partner Award to Joel Cavaness, Chairman of Risk Placement Services (RPS). Among other criteria, the award is presented to “an individual, group, or organization that has contributed to the evolution of SIAA with an unwavering commitment to the independent agency distribution channel.” Mr. Cavaness appeared in person to accept the award and offer his thoughts and gratitude for the recognition. About SIAA SIAA is The Agent Alliance – the nation's leading network of starting, growing, and evolving independent insurance agencies. Leveraging a platform of strategic partners, $14.2 billion in premiums, and 49 Master Agencies, we support and inspire member agents so they can continuously adapt to an ever-evolving industry and achieve long-term success. SIAA members benefit from both the resources of scale and the freedom of independence.  
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October 29, 2024

Future of Insurance Revenue: Key Opportunities for Growth
As the insurance landscape evolves, Accenture's "Insurance Revenue Landscape 2025" report highlights the importance of innovation and resilience for driving future growth. Here are four key opportunities insurers should focus on:

Health and Wellness Integration

As consumers become more health-conscious, insurers can create new revenue streams by integrating technology into health and wellness services. Offering health-focused life products, enhanced with digital tools, wearable devices, and personalized health insights, can foster deeper engagement, loyalty, and improved health outcomes for policyholders.

Climate Change and the Sharing Economy

Climate change is a pressing challenge, but it also offers significant growth potential. Insurers can develop climate-responsive products that help clients mitigate climate risks and adapt to changing environmental conditions. Additionally, the rising sharing economy presents an opportunity for insurers to provide flexible and scalable coverage options tailored for shared assets like cars, homes, and other resources, supporting a new wave of consumer behavior.

Tech-Enhanced Insurance Products

The adoption of IoT (Internet of Things) and AI (Artificial Intelligence) is opening up new possibilities for insurers. From smart home coverage that prevents losses before they happen to usage-based auto insurance that rewards careful drivers, these tech-enhanced products will redefine the role of insurers as protectors and advisors. Insurers who invest in these technologies can create proactive, preventative services that offer greater value and enhanced customer experiences.

Alternative Distribution Channels

Expanding beyond traditional brokers, insurers have opportunities to innovate through direct partnerships. Examples like Tesla's in-house insurance model suggest that collaborating directly with manufacturers and service providers could diversify income streams and enhance customer experiences. By exploring partnerships with industries such as automotive, retail, and healthcare, insurers can develop embedded insurance offerings that integrate seamlessly into the purchasing experience, making it easier for customers to access the coverage they need.

To stay competitive, insurers must invest in innovation, adopt new technologies, and adapt their distribution strategies. The shift towards resilience and value-driven offerings is no longer optional—it's the key to thriving in the changing revenue landscape of 2025 and beyond. The future of insurance will depend on how well insurers can transform these challenges into opportunities for growth, embracing technology, partnerships, and an unwavering focus on customer needs.  
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October 29, 2024

Alliant Insurance Services Signs on as Official Insurance Brokerage and Proud Partner of San Diego Football Club
Alliant Insurance Services, the leading specialty insurance broker, announced its partnership with San Diego FC (SDFC) ahead of the Club’s inaugural season in Major League Soccer (MLS). In addition to signing on as an inaugural season partner, Alliant was also selected through an RFP process by San Diego FC as the official insurance broker for its property and casualty (P&C) and employee benefits needs. “Alliant’s century-long legacy of excellence, rooted right here in San Diego, aligns perfectly with our vision for the Club,” said SDFC CEO Tom Penn. “We are excited to welcome them to the team as the Official Insurance Brokerage for San Diego FC.” This partnership includes LED signage at Snapdragon Stadium, digital brand exposure and experiential opportunities for Alliant to participate in unique Club experiences. Additionally, Alliant will be highlighted as the presenting partner of an upcoming San Diego FC commercial event. “We look forward to forming a long-term relationship with San Diego FC, both as its trusted insurance broker and as a proud partner supporting important community initiatives in the city where Alliant was founded,” said Jay Fischer, Managing Director, Alliant Insurance Services. “San Diego FC’s operations and community outreach mirror the innovation with which we approach solving our clients’ risk management challenges, and we are thrilled to support the overall vision for the Club.” SDFC is scheduled to officially begin play at Snapdragon Stadium in 2025. San Diego FC’s cutting-edge Performance Center will also be the home of San Diego FC’s Right to Dream Academy, a fully funded free residential program, school and soccer academy that will provide professional soccer and education pathways for top youth talent in the region. About Alliant Insurance Services Alliant Insurance Services is one of the nation’s leading distributors of diversified insurance products and services. We operate through a network of specialized national platforms and local offices to offer our clients a comprehensive portfolio of solutions built on innovative thinking and personal service. The business of managing risk is getting more complex, and Alliant is meeting this complexity head-on, not with more layers of management, but with more creativity and agility. Alliant is changing the way our clients approach risk management and benefits, so they can capitalize on new opportunities to grow and protect their organizations. Alliant is proud to take part in driving commerce, community outreach and education initiatives in the city where it was founded in 1925. Alliant is recognized as a leading destination for top-tier brokerage talent in the U.S, attracting brokers and specialists across a diverse spectrum of disciplines who are eager to advance their careers. With the advantage of being majority employee-owned, professionals choose Alliant for autonomy, unparalleled resources, and a unique equity ownership opportunity. As a testament to our commitment to excellence, Alliant maintains an impressive 99% producer retention rate and has earned Forbes’ prestigious title of one of America’s Best Large Employers. Visit us at alliant.com. #TheMoreRewardingWay About San Diego FC San Diego FC is an expansion team in Major League Soccer, scheduled to begin play at Snapdragon Stadium in 2025. San Diego FC is jointly owned by Sir Mohamed Mansour, a distinguished entrepreneur, investor and philanthropist with global ties in the sport, and the Sycuan Band of the Kumeyaay Nation, the first Native American tribe to have an ownership stake in professional soccer. Manny Machado, San Diego’s perennial MLB All-Star, is an investor in the Club. San Diego FC is a proud member of the Right to Dream community, a group of youth academies and professional football clubs around the world. San Diego FC’s stated vision is to become the epicenter of football excellence and innovation in North America.  
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October 29, 2024

Insurance Industry in 2025: Key Trends Reshaping the Future
The insurance industry is bracing for transformative changes, as outlined in PwC's report "Insurance 2025 and Beyond." Five key insurance trends are set to reshape the landscape, demanding adaptation and innovation from insurers:

• Widening Trust Gap: Customers are increasingly skeptical of traditional insurers, necessitating a renewed focus on transparency, value, and improved customer engagement. To close this gap, insurers must prioritize ethical practices, demonstrate reliability, and actively work to build stronger relationships with policyholders.

• Evolving Customer Needs: As expectations shift, personalized and seamless experiences are becoming a priority for consumers, forcing insurers to rethink how they connect with their clients. This involves leveraging advanced data analytics to understand customer preferences and provide tailored solutions, ensuring that every interaction adds value and meets the specific needs of each individual client. • Accelerating Digital Transformation: Digital ecosystems are no longer optional. Integrating AI, big data, and digital platforms are becoming crucial to enhancing customer experiences and operational efficiency. Insurers must not only invest in technology but also create a culture that embraces innovation, adaptability, and a willingness to experiment with new digital tools to remain competitive in a rapidly changing marketplace. • Climate Risks: The insurance industry must address the escalating risks associated with climate change. This includes reassessing coverage models, enhancing risk management solutions for natural disasters, and developing innovative insurance products that provide adequate protection against climate-related events. Insurers must also work collaboratively with governments, industries, and communities to better mitigate climate risks and improve resilience in the face of increasingly frequent environmental challenges. • Convergence Across Sectors: Traditional industry boundaries are blurring, with insurers entering new sectors and collaborating more closely with technology companies, healthcare providers, and other service industries. This convergence is opening up new opportunities for insurers to diversify their offerings, integrate various aspects of customer needs into a holistic service package, and create a more interconnected and resilient insurance ecosystem. To stay relevant, PwC suggests insurers embrace digital ecosystems, embed Environmental, Social, and Governance (ESG) strategies, and refine talent acquisition for the future. The emphasis is on shifting from operational efficiency to value creation by fostering innovation and forging partnerships that enrich the customer journey. Insurers who can navigate these shifts by balancing technological adoption with an understanding of evolving customer needs are likely to emerge as industry leaders. The message is clear: it's time for a radical reimagining of insurance to ensure relevance in 2025 and beyond. The future of insurance will depend on adaptability, forward-thinking strategies, and the ability to transform challenges into opportunities for growth.
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