Awesome Agency

ABC Company

9/1/2018

Service Commitment and Performance Summary

Stewardship Report

Branded to your Agency!

TABLE OF CONTENTS

General Overview

Account Service Team

Market Overview

Summary of Coverage

Review of Projects

Thank you

Benefit Trends

2018 P&C Market Outlook

Emails & Campaigns

Client Portal - MyWave Connect

Select only the content relevant to your meeting

Our Value Proposition for ABC Company

We appreciate the opportunity to work with your company and to help you meet your objectives. In order to adapt to the changing needs of your organization, we have invested in top-notch talent and cutting-edge technology. We take nothing for granted and will always work to ensure your best interests are achieved.

Our goal is to achieve long-term relationships focused on bringing value to your risk management and insurance programs. We commit to using our collective talent to support you in these endeavors.

Our Commitment to Service

At the start of our relationship, we promised to deliver to you the highest quality property and casualty insurance programs and strategic planning consultation services in a manner that is most suitable to achieving your business goals. We promised to identify activities that drive claim frequency and severity, and implement an action plan to contain losses.

In addition, we promised to identify training needs and provide on-site assistance to actively address loss sources and promote a safe work environment for your employees.

Delivering on Our Promise

This report helps us fulfill our promises by highlighting the value we have provided to you. This also gives you the opportunity to see how we are meeting your expectations and assess how we are doing.

Once again, thank you for your business. We will continue to build our relationship through hard work, creativity and solutions that effectively meet the needs of your business.

Value Proposition

All our clients are assigned to a team of professionals who are dedicated to providing a wealth of resources to serve their needs. Our professionals pride themselves on excellent service, and they are dedicated to using their experience and expertise to help you meet your insurance objectives. Your account team’s goal is to help you save money through proper implementation and management of your insurance programs, and they are committed to anticipating and fulfilling your needs and concerns.

Becky Smith Technical Analyst becky.smith@YourAgency.com

Bryan Adams Broker bryan.adams@YourAgency.com

Ralph Anderson Administrative Support

ralph.anderson@YourAgency.com

Name Title

Account Service Team

Email Phone

Add contact information for the account team.

Businesses must continuously evolve in order to remain competitive in a constantly changing marketplace. Your risk management program needs to evolve as well. We are committed to helping you understand and plan for the unique risk management challenges your business faces, both now and in the future.

Premiums and rates reflect the risks of loss particular to a variety of factors that include geography and weather, technological changes, economic market forces and regulatory environments.

This year, the property and casualty insurance industry is expected to adjust to the losses created by weather-related catastrophic losses and major cyber security events. Overall, this means that organizations should brace for potential rate increases and a hardening renewal market.

Industry experts predict that the following outside influences, forces and trends could have the greatest impact on the market.

• Protectionism—Marked by import and export policies in the United States and abroad and by the possible renegotiation of international trade agreements.

• Disruptions from quantitative easing tapering—Marked by higher interest rates and a reduced money supply.

• A growing cyber insurance market—With each widespread cyber incident (Equifax, Meltdown, WannaCry, etc.), the demand for tailored insurance solutions becomes more apparent. Net premiums for this type of coverage are expected to rise, potentially reaching $14 billion globally by 2022.

• Rising motor insurance claims—The higher number of claims is largely due to more frequent and severe motor vehicle accidents caused by speeding, intoxication and distracted driving. For the commercial trucking industry, a lack of experienced drivers, coupled with longer drives, has created accident-heavy conditions.

• Natural disasters—Natural disasters will once again be a significant force in the insurance market.

Market Overview

Line of Coverage Carrier Coverage Period Premium

Line of Coverage Choice Carrier 01/01/2018 - 12/31/2018

Summary of Coverage

Create a Line of Coverage summary.

Planning and preparation

Establish communication

Discuss timetables

Identify information needed to market

Establish operating standards and response regimes

Information gathering

Collect policies and loss data

Obtain financials

Identify information gaps

Request missing information

Exposure analysis

Determine risk management objectives

Perform all-encompassing risk management analysis

Conduct exposure surveys at specific locations

Present exposure survey results

Propose risk management recommendations

Review of Projects

Use the template as a starting point to review projects you have completed over the year.

Review of Projects

Marketing strategy

Identify viable markets

Perform loss forecasting analysis

Evaluate quotes

Negotiate contractual provisions

Present renewal options

Claims management

Review reporting and claim procedures

Monitor claim activities

Advocate on disputes, issues and problems

Provide claim status updates

Evaluate third-party administrator or service contractor performance

Loss control

Develop loss control plan

Determine measurable goals

Monitor loss control activities and progress

Review loss trending, benchmarking and goal setting

We consider ourselves privileged to continue to do business with you and want to reaffirm our commitment to your business.

Our relationship with you is our number one priority and if you can think of anything we can do to help your business continue on the path of success, don’t hesitate to ask.

As much as we enjoy looking back at what we’ve done for you, we look forward to how we can further continue to improve your business.

Thank You for Your Time

This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice © 2008 2011 2015 2016 Zywave Inc All rights reserved

Benefits Trends According to recent research, most companies are looking to lower their rising health care costs and improve their employees’ overall health. When HR professionals look toward the future, they are evaluating strategies to help manage both short- and long-term costs. In order to evaluate these costs, it is important that employers understand what their employees think about their benefits.

Health care costs tend to fluctuate on an annual basis—sometimes substantially and sometimes minimally. Regardless, these costs are still burdensome to most employers, leading companies to adopt a variety of strategies to try and mitigate and manage health care expenses.

2017 Health Care Cost Trends 2017 cost trends are now available from various research organizations. The following health insurance cost trends are based on recent employer surveys:

• Aon Hewitt reported net health care costs for 2016 increased 4.2 percent, while net costs for 2017 increased 4.5 percent.

• In its 2017 Employer Health Benefits Survey, the Kaiser Family Foundation and Health Research & Educational Trust reports that average annual premiums rose 3 percent for family coverage and 4 percent for individual coverage in 2017.

• PriceWaterhouseCoopers stated that the medical cost trend decreased from 6.2 percent in 2016 to 6.0 percent in 2017, according to the survey Behind the Numbers: Medical Cost Trends for 2018. This rate is expected to slightly increase to 6.5 percent in 2018.

• The Segal Group, Inc.’s 2018 Health Plan Cost Trend Survey predicts that health plan costs will be less than 0.5 percent higher in 2018 than in 2017. In contrast, the prescription drug coverage increase is still projected to be in the double digits for active employees and retirees under age 65.

Cost-shifting Initiatives In an effort to reduce benefit costs, employers can implement some of the following cost-containment strategies:

• Consider offering financial incentives to your employees in the form of an employer-sponsored wellness program. According to Corporate Wellness

Take time this year to ensure that ABC Company is making the right choices in plan design and benefits offerings. Contact your Awesome Agency representative for help implementing any of these strategies, which can help reduce costs and promote a healthier workforce.

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Magazine, every $1 invested in employee wellness programs yields roughly $4 in savings through reduced sick days, higher productivity and decreased overall health costs. For the employees who choose to participate in the program, their employers may offer them various perks such as discounted insurance premiums, smoking cessation programs, and/or discounted health club memberships. By allowing your employees to lead by example, you are indirectly promoting healthy behavior without directly penalizing unhealthy habits that may lead to higher costs.

• Encourage employees to use their preventive care benefits, including getting their appropriate screenings and vaccinations. Emphasize that these services are available at no cost to employees.

• Consider offering an on-site health center staffed with health coaches who can provide advice on personal health needs—this can help make seeking care more cost-effective and convenient.

• Offer voluntary benefits options that meet personal and family needs, such as homeowners, automobile and group life insurance. Also, consider offering discounts on vision and dental care, massage therapy, chiropractic care, health club memberships and weight-control programs.

• Provide online tools for employees, including health education and other resources, to help them become smarter health care consumers.

• Consider offering an HDHP with a health savings account or health reimbursement arrangement to promote consumerism and reduce costs.

• Align your business goals with your employee health goals and devise a way for individuals or departments to maintain healthy lifestyles, start exercising and/or stop engaging in unhealthy habits. Consider making it fun, engaging and supportive—such as having contests and other group events where employees are encouraged to help each other make good choices.

• Use marketing techniques that will motivate employees to take action. Consider posters in the break room, occasional emails and wellness-related articles on your company intranet if you have one.

• Suggest that employees use the generic form of their prescriptions (if available) to save money.

• Join or create a tiered or high-performance network, which encourages patients to visit more cost-effective providers either through network restrictions or tiered copay and coinsurance amounts.

• Many businesses are choosing to re-evaluate their overall benefits strategy in light of the Affordable Care Act and other developments.

Take time this year to ensure that ABC Company is making the right choices in plan design and benefits offerings. Contact your Awesome Agency representative for help implementing any of these strategies, which can help reduce costs and promote a healthier workforce.

©2018 Zywave, Inc. All rights reserved.

Introduction ............................................................................................................................................ 3

Trends to Watch ..................................................................................................................................... 6

How are Premiums Determined? ........................................................................................................... 8

2018 Market Outlook Forecast Trends .................................................................................................... 9

Property ................................................................................................................................................ 10

General Liability .................................................................................................................................... 11

Workers’ Compensation ....................................................................................................................... 12

Cyber .................................................................................................................................................... 13

Directors and Officers Liability .............................................................................................................. 14

Professional Liability ............................................................................................................................. 15

Employment Practices Liability ............................................................................................................. 16

Fidelity & Crime .................................................................................................................................... 17

Moving Forward ................................................................................................................................... 18

More Information ................................................................................................................................. 19

Each year, policyholders approach their insurance brokers with a common question: Are my premiums going to go up? This may seem like a simple inquiry, but many factors play into the rise and fall of insurance rates—factors that can differ dramatically year over year.

2017 Market Trends of Note for the New Year

As predicted, 2017 was mostly a buyer’s market for property and casualty insurance. In fact, a majority of policyholders enjoyed rate decreases on a variety of lines. Both market capacity and competition for new businesses remained strong, thus keeping prices down overall. Furthermore, insurance industry surpluses reached an all-time high of over $700 billion in mid-2017.

However, while pricing predictions remained accurate throughout last year, a string of natural disasters and high-profile cyber security events had a sweeping impact on the market. These unpredictable, large-scale losses will continue to have a broad influence on insurance pricing for 2018.

For instance, property rates will likely increase in many markets. This is especially true for businesses located in areas susceptible to natural disasters. Between hurricanes Harvey, Irma and Maria, the estimated total losses for commercial lines ranged from $85 billion to $100 billion. Those figures—combined with losses from other natural disasters like wildfires, hailstorms and tornadoes—created a situation where losses and expenses are outpacing overall premium growth for many insurers.

To further complicate things, a dangerous cyber landscape remains in the forefront of underwriters’ minds. The Equifax breach alone is expected to cost international insurance markets as much as $150 million. This and other expensive breaches will likely lead to pricier cyber insurance terms in 2018. Organizations must protect against high-profile data breaches and impostor fraud if they are to reduce their risks, especially as a broad-level focus on cyber, crime and reputational risk loss mitigation is imminent.

Experts believe that the market will stabilize quickly; however, profit margins for many carriers will likely be thin going into 2018.

Where is the Market Headed in 2018?

It’s difficult to predict how much of an effect the major losses of 2017 will have on the market in 2018. While many forces influence insurance, catastrophic losses and major cyber security events are some of the most tangible, easy-to-measure indicators of where the market is headed.

This year, underwriters face pressure to fund 2017 losses, which could lead to the end of what was a sustained soft market for commercial property insurance. Overall, organizations should brace for rate increases and a hardening renewal market spurred on by devastating events.

In the property market alone, insured losses from catastrophic events are expected to exceed $100 billion. While there is still a degree of uncertainty, property rates are forecast to rise anywhere from 5 to 25 percent. Casualty rates are predicted to be flat or increase by small amounts as pressure from catastrophe losses spills over into other lines. Auto rates for businesses will also see single-digit increases.

In addition, most cyber insurance buyers will face modest increases of up to 5 percent at renewal. While we will likely see more rate increases than in years past, underwriters generally offer premium decreases to organizations that demonstrate increased levels of security and internal policy controls.

Initial estimates for total industry losses range anywhere from $50 billion to $200 billion, which is a serious blow any way you cut it. While specific figures are unknown, additional capacity will likely be deployed into both property and casualty lines to offset rate increases.

Overall, catastrophic events, alongside additional factors, could lead to higher renewal rates in 2018. This represents a major shift in the insurance industry—an industry that hasn’t faced challenges and losses of this magnitude in quite some time.

The latest market predictions aren’t all bad, however. The following are three positive trends that will likely impact the industry in 2018:

1. Data-driven underwriting—More than ever before, underwriters have access to cleaner data, allowing them to make extremely accurate loss trend predictions. Companies that take the time to mitigate their exposures and create an in-depth risk profile will likely enjoy better rates. Just be sure to catalog your organization’s differentiators to stand apart from the pack.

2. Carrier innovation—From an insurer’s perspective, there are a number of opportunities to fight against compounding losses. Product innovation, diversification and targeted channel strategies will be critical for insurers looking to innovate and have a successful 2018. These innovations could lead to streamlined business practices for insurers and future cost savings that could trickle down to policyholders themselves.

3. Lower rates for certain lines of coverage—Despite a hardening market for certain lines of coverage, mainly property, there will be continued low rates for some lines of coverage. In addition, experts believe that, because global growth prospects remained strong throughout 2017, a recession is unlikely and the risk of inflation is low.

While these general insights provide a valuable understanding of this year’s insurance market, outside circumstances affect lines of coverage differently. The truth is no two businesses are alike, and many considerations are taken into account when pricing insurance policies. When it comes to insurance, the best advice is often to hope for the best and prepare for the worst.

However, it is possible to make a number of predictions based on the current state of the insurance market. This outlook is designed to provide organizations and insurance brokers with a general overview of the trends and forces that have a direct impact on 2018 premiums per line of coverage.

Remember, Awesome Agency is here to help your organization find the appropriate insurance coverage. Contact one of our dedicated insurance professionals today to discuss your options.

Industry experts annually examine what outside influences and trends have the greatest impact on the market. This information is important, as it outlines key risks for both insurers and organizations to watch as the year progresses.

In 2017, catastrophic events, new technologies and cyber security were notable forces. While some of these trends spill over into 2018, there are a number of new market developments insurers are monitoring, including the following:

• Protectionism—Protectionism, the idea of shielding a country’s domestic industries from foreign competition by taxing imports, could be on the rise in 2018. In the United States alone, policies have become discriminatory toward G-20 countries, creating the potential for trade issues. The United States has already canceled its participation in the Trans-Pacific Partnership and has threatened to increase tariffs on imports from China and Canada. In addition, the future of the North American Free Trade Agreement is up in the air, creating a lack of confidence and a climate of ambiguity. It should be noted that protectionism isn’t increasing on a global scale.

• Disruptions from quantitative easing (QE) tapering—In response to the global financial crisis of the mid-2000s, the practice of QE was established. QE is a monetary policy where central banks purchase government or similar securities from the market to lower interest rates and increase the money supply. Since the financial crisis, central banks have bought large amounts of government bonds, greatly expanding the size of their balance sheets. In 2018, banks are expected to lower their balance sheets by reducing purchases of maturing assets in what’s called QE tapering. The concern is that this will lead to market disruptions and a less prosperous market if reductions are not done gradually.

• A growing cyber insurance market—The ever-present threat of costly data breaches has led to a rapidly expanding cyber insurance market. With each widespread cyber incident (Equifax, Meltdown, WannaCry, etc.), the demand for tailored insurance solutions becomes more apparent. Net premiums for this type of coverage are expected to rise, potentially reaching $14 billion globally by 2022.

• Rising motor insurance claims—Underwriting results for personal and commercial segments of U.S. motor insurance have deteriorated year over year, which may lead to increased rates in 2018. The higher number of claims is largely due to more frequent and severe motor vehicle accidents caused by speeding, intoxication and distracted driving. For the commercial trucking industry, a lack of experienced drivers, coupled with longer drives, has created accident-heavy conditions.

• Natural disasters—Natural disasters will once again be a significant force in the insurance market. The following events are some of the major catastrophes expected to impact businesses and insurers alike in 2018:

o The 2017 hurricanes had a vast impact on multiple classes of businesses, and a full assessment of losses has not yet concluded. Businesses will have to continue to plan for

o these large-scale natural disasters, obtain proper coverage and put business continuity plans in place.

o Floods will continue to be one of the most widespread and frequent hazards for organizations in 2018. Urbanization and population booms mean that more people are moving to flood-prone areas, increasing the financial impact of major floods. Despite these factors, flood exposures will likely remain uninsured across major insurance markets on a global scale, creating a serious protection gap. Insurers will have to work with government bodies in order to provide protection for residents and businesses.

The above trends are just a few of the factors anticipated to influence the 2018 insurance market. While things like natural disasters, increasing cyber events and unpredictable increases in claims are volatile and largely out of the hands of underwriters, companies are not powerless.

Organizations are encouraged to keep the above issues in mind when building a comprehensive risk management plan alongside a qualified insurance broker. Remember, implementing policies and preventive measures can go a long way toward managing your organization’s overall risk.

Throughout the year, we have provided you with the resources to support your ongoing business needs and goals.

Distribution History We have provided you with a variety of beneficial documents throughout the year via email. The following report is a listing of documents by the date they were distributed 1/1/2018-7/31/2018.

Title Sent

Cyber Liability: CGL versus Specialized Cyber Liability Coverage 7/20/2018

Live Well, Work Well Newsletter - July 2018 7/2/2018

Employee Benefits Services Portfolio - Video 6/25/2018

Plan Design Services Overview 6/25/2018

Voluntary Benefits Services Overview 6/25/2018

Coverage Insights - Cyber Liability Insurance 6/20/2018

Live Well, Work Well Newsletter - June 2018 6/1/2018

Live Well, Work Well Newsletter - May 2018 5/1/2018

Restaurant Playing it Safe: Restaurant Safety Hazards 4/16/2018

Live Well, Work Well Newsletter - April 2018 4/2/2018

FMLA Guidelines for Wisconsin 3/26/2018

Technology-based Services Email Communications

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Email Communications

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Title Views

Live Well, Work Well Newsletter - December 2017 7

Test - Interactive PDF 7

Exchange Notice 5.31.20 6

DOL Health Plan Audits: Checklist of Requested Documents 4

test1234 4

Hiring and Onboarding Services Portfolio 4

HRconnection Service Level Evaluation 4

Coverage Insights - Employment Practices Liability Insurance: Crucial for Small Businesses

4

Fall Protection Program Presentation 3

Prospecting Script - HRconnection 3

Live Well, Work Well Newsletter - March 2018 3/1/2018

Live Well, Work Well Newsletter - February 2018 2/1/2018

Live Well, Work Well Newsletter - December 2017 1/5/2018

Live Well, Work Well Newsletter - January 2018 1/5/2018

The Cost of Health Care: East South Central Region 1/3/2018

Email Communications

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The client portal is a web-based information center that facilitates information exchange between us and our clients. Your client portal provides you with access to valuable resources, including legislative information, updates and forms to help keep you in compliance with OSHA, the FLSA, the ADA and other employment laws.

We have provided you with a variety of beneficial content via your client portal over the following date range: 1/1/2018-7/31/2018.

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Section 6055 Reporting Workbook 21

Total Compensation Statement Packet 16

Section 6056 Reporting Workbook 15

Employee Handbook with Linked Table of Contents and Appendix

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Medicare Part D Disclosure Notice to CMS 6

Health Care Reform: Reporting and Paying the PCORI Fees 6

ERISA Compliance FAQs: Reporting and Disclosure Rules 5

HR Toolkit - Onboarding 4

HCR: Employer Reporting of Health Coverage - Code Sections 6055 & 6056

4

Employer Health Plan Self-assessment Tool 4

Technology-based Services Client Portal – MyWave Connect

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Andy Aschenbrener 19

Spencer Bewer 12

Alma Anderson 7

David Blechl 6

Susan Gibson 2

Ada Anderson 2

Becky Smith 1

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Robert Mywave 1

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☐ Emerging Risks

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☐ Manuals and Policies

☐ OSHA Compliance

☐ Regulatory Compliance

☐ Return to Work

☐ Risk Management

☐ Safety Culture

☐ Safety Training