Insurance technology company Zelros is using AI in exactly this way to analyse data on consumer behaviours to make hyper-personalised recommendations. In 2021, they had coverage for up to 250 million policyholders globally and were able to determine where people were lacking insurance coverage. The data enabled them to make 10 million personalised insurance recommendations to individuals and families in 2021. This data provides a glimpse into the economy and what areas of people’s lives are changing the most. Now in 2022, the recommendations for Q1 are providing insight into what’s changing now:  

 JAN | FEB | MARCH

Car | 2.86% | 0.10% | 0.03%

Credit Insurance | 19.95% | 19.92% | 19.07%

Health | 14.95% | 13.99% | 14.11%

Home | 30.42% | 32.42% | 32.33%

Legal Protection | 7.15% | 6.03% | 6.11%

Life Accident | 24.61% | 28.38% | 28.31%

Term Life | 0.07% | 0.06% | 0.04%

With the data on these policy recommendations spanning over the first three months of 2022, it’s interesting to note the value drops and gains of what is being recommended and when. For example, for motor vehicle coverage, it has continued to fall month after month starting at 2.86% of recommendations in January to only .03% in March. Meanwhile, credit insurance, health and legal protection all dropped for the month of February but have slightly risen for the month of March. Recommendations for home insurance rose exactly 2% from the first month of the year to the second. 

Overall, when looking at the data provided for Q1, the changes from February to March aren't nearly as drastic as those from January to February. The top three categories are credit insurance, home and life accident. Together, these three are making up roughly 80% of all insurance recommendations. As we’re now into Q2, it’ll be interesting to see how the data flows for the first six months of the year, and then to compare it with the end of the year results once we hit Q3 and Q4. 

How does hyper-personalised insurance work with AI?

When we get our insurance, we often think that what we’re getting is hyper-personalised to us, but this is not usually true. Historically, agents are trained to cover the bases of what the average person needs, but this has nothing to do with your specific current needs. They can ask questions and make a personalised recommendation based on what you tell them, but hyper-personalisation through AI takes this to the next level.

Hyper-personalised insurance uses artificial intelligence to make specific recommendations to a policyholder based on what is happening in their life right now. With roughly 2.5 quintillion bytes of data being created every single day, a portion of that information is valuable consumer information that is being used to teach AI how to draw conclusions about what people need and want before the thought even crosses their minds. This data can be analysed to help an insurance agent determine if their client (aka you) has had a major life event that would signal a need for new insurance coverage or the re-evaluation of an existing policy. For example, AI could help determine if you’ve moved to a new address and would need to revisit your property insurance coverage to ensure your risk category is still the same and your policy still covers you. It could be used to show the birth of a child, which would prompt an agent to ask specific questions about this to see if life insurance is now needed.

Hyper-personalisation can also include telematics data that makes your policy specific to just you: for example, an auto policy based on your unique driving history. Cars are now so technologically advanced that insurers can provide behaviour-based insurance, so your rates become based on your driving behaviours only, not the pool of driver data used to determine a standard policy. 

Why hyper-personalisation is important

• Better customer experience
• Best policy premiums possible
• Proactive outreach from insurance agents and having smarter conversations 

The leveraging of AI and machine learning to meet our needs is a reality now in the insurance industry. It’s helping recommend to those without adequate coverage, to reevaluate risk assessment, and to help make sure that policyholders have the best premiums possible. AI is giving insurers the unique ability to create hyper-personalised suggestions for people in a way that has never been seen before. It’s best that the entire industry jump on now, or face being left behind and never catching up. 

About the author: Paul-Henri Chabrol is Chief Product Officer at Zelros.

If you have filed a personal injury lawsuit, you are likely to get a settlement from your insurance company, but that can take more time than you have to pay your past-due bills.

Your car accident lawyer can help you build a case to help you get the compensation that you deserve, but what about the bills that you have to pay now? Let’s take a closer look at how to pay your bills after a car accident.

Medical Bills

In most states, your insurance is required by the law to pay all of your medical expenses that were caused by a vehicle accident. Your medical bills should be covered under a worker’s compensation claim if you are injured at work. The remainder of your medical bills, with the exception of your deductible amounts, should be covered under your private health insurance. It’s important to keep detailed records of your medical history, injury treatment plan, doctors and specialist contacts, prescription costs, and all other medically-related expenses. 

Household Bills

If you have been involved in an accident and have suffered injuries that keep you from working, your household bills could start adding up quickly. You are still required to pay your rent, mortgage, and utility bills. When you file your claim with your insurance agency, they will issue you a payment for up to 85% of your monthly income for a maximum of three years. This payment is to help you pay for your household bills. With some policies, you may be able to apply for household assistance if you can’t do certain things like grocery shopping or laundry.

Vehicle Repairs

One of the largest expenses of a car accident is vehicle repairs. Minus your deductible, your insurance company should pay for all of the needed repairs. Make sure that you take your vehicle to a licensed and qualified repair shop to ensure that you get the proper coverage. The first $750 of damage should be paid for by the at-fault driver’s insurance, and the balance will be paid by your collision coverage. Always ensure that you carry enough coverage on your vehicle to cover the total loss of your vehicle.

Accessibility

If you are gravely injured in a car accident, it could change the type of long-term needs that you have. You may need to purchase a walker or wheelchair or install a mobility ramp at your home. Your insurance coverage combined with your medical insurance should be able to cover most of these accessibility expenses.

If you are involved in a serious car accident, the last thing that you want to worry about is how you will pay your bills. Don’t stress about your past due payments. Your insurance coverage will help you to get the money that you need.

The danger, when discussing the topic of humour in an industry like insurance, is that you come across as a David Brent-like figure, desperate to break free of a boring profession in an effort to become “a friend first, a boss second, probably an entertainer third.”

Making that observation, however, strikes at the heart of a real and profound problem in insurance: I described the industry as “boring,” but I can’t imagine a single reader leaping to their feet in a fit of outrage at this insulting generalisation. Of course, they won’t – insurance is boring. No wonder it’s on the verge of a serious identity crisis.And this really isn’t an exaggeration.

Insurance is facing a ticking time bomb as every second takes it closer towards a world dominated by a younger generation who have no patience for the slow, stuffy, wordy excesses of an industry which has no hold over them.

As such, the possibility of adopting a more light-hearted mode of expression in insurance isn’t just about trying a zany new marketing tactic. It’s about making a concerted effort to correct a monumental mismatch between changing consumer expectations and an industry notorious for its reluctance to move with the times.

Complexity, confusion, and inconvenience

It’s important to caveat the above with the fact that this isn’t just a speculative moan about the industry. There’s no clearer sign that the younger generation isn’t engaging with insurance than even the most cursory glance at the figures, which are unequivocal in their findings.

Take, for example, a 2020 report from IBM which found that 20- and 30-somethings aren’t particularly keen on purchasing life insurance, with half of IBM’s survey respondents reporting that they don’t have any kind of life insurance policy and only 39% having term life.

Now, obviously, this report was published in March of 2020, and one or two global events may have had young people reassess the question of their own mortality since then (in fact, a recent Wall Street Journal article has confirmed that the pandemic has resulted in more young adults grabbing life insurance of late).

All the same, the IBM study is still completely applicable – not least because the issues it identifies have very little to do with the type of insurance, and everything to do with the insurance processes which are, as IBM notes, “well within the industry’s control.”

In brief, IBM found that although today’s youth aren’t necessarily weighed down with spare cash, their real issue with buying insurance isn’t cost-related – it’s tied to “complexity, confusion, and inconvenience.”

In particular, respondents cited the various paperwork hurdles involved, lack of time (indicating how much effort the process requires), and a lack of understanding of the offerings in question. These findings suggest that the industry’s stuffiness and “perceived complexity” (as IBM put it) are literally depriving it of much-needed customers.

A change of nature

I say “much-needed” because the industry is losing customers – and, at the risk of over-citing IBM, their report does point out that “declining policies” among millennials may well be responsible for declines in premiums and deposits in the US. So, what’s the solution?

It’s easy to imagine a slight sneer as traditional insurers try to make heads or tails of the marketing landscape associated with the younger generation – “do you expect the senior execs to do a TikTok dance, then?”

Well, first of all, yes. Obviously. Immediately. But, crucially, advocating for a new, light-hearted face for insurance isn’t a cheap gimmick – we can afford to be more facetious, yes, but the underlying issues facing the industry shouldn’t be subject to mockery at all. After all, a tonal shift to insurance can only come hand-in-hand with the broader recognition that we need to reach younger people in every respect – it’s no good dabbling with Instagram influencers if we’re not equally making strides towards, for example, mirroring the instantaneous purchases and frictionless convenience with which young people stream Netflix shows, or shop on Amazon, or summon Ubers.

Bending with the wind

At heart, I think the insurance industry has given way to a little bit of arrogance, using regulation and compliance as an excuse to avoid changing. Customers, the story goes, must bend to our will – we won’t bend to yours. No wonder, in this light, that so many commercial entities and individuals don’t have insurance (or enough of it). And it’s hardly surprising that there’s no brand loyalty in the face of this boring, grey, chore-like mass.

With a new tone and a fresh face, insurance might just learn, like the reed, that it’s better to bend with the wind than break against it – even if that involves lightening up. A bit of levity might strip away our decorum – but I’m pretty confident that if people stop buying insurance, we won’t have an awful lot to laugh about.

About the author: Ed Halsey is the co-founder and COO of hubb.

The current climate has led more individuals, businesses and government entities to really take a look at what they can do to protect themselves from the very real threat of cyberattacks. Today more than ever, artificial intelligence is playing a larger role in detecting and mitigating cyber risks. 

Why do cybersecurity and insurance go hand in hand?

Risk and protection go hand and hand. The more data that is collected on someone or something, the more valuable it can become for someone who wants to use it for malicious intent. Cyber risk is a new type of risk that has appeared in the past 5 years and that is increasing year after year. The attacks themselves can come with little to no warning, and the task of recovering from one is often time-consuming and costly. 

Ransomware attacks, distributed denial of service attacks and phishing attacks are just a few of the plethora of ways that attackers can gain access to home and company networks, steal passwords and banking information and go as far as wiping clean the computers in offices, leaving nothing more than a paperweight at each desk. These attacks in fact are so common that 23% of small business owners have had an attack in the last 12 months according to a survey by Hiscox. 

Here are some examples of how AI can be used to combat specific types of cyber threats.

1. Data Poisoning

Data poisoning can be seen for literally what it is, taking data and then using it with ill intent. This is done when samples of data that are used for training algorithms are manipulated into having an output or prediction that is hostile that is triggered by specific inputs. This is all the while remaining accurate for all other inputs. 

Data Poisoning that turns systems hostile is done before the model training step. Zelros has an Ethical Report standard, where they collect a dataset signature on the successive steps of modelisation. This is a necessary check that needs to be taken that helps prove afterwards that the data has not been tampered with or otherwise manipulated. This standard can be adapted by other companies as one of the best practices when using AI responsibly.

2. Privacy 

Entities, whether they be government, law enforcement or even personal networks that have specific features within their dataset that are used to train their algorithm, their identity may be compromised. To avoid an individual or multiple identities being compromised as part of the training data and therefore adding risk to their privacy, organisations can use unique techniques such as federated learning. It boils down to training individual models locally at the source and federating them on a more worldwide scale, to keep the personal data secured locally. In general, it’s good to note that detecting specific samples of outliers and excluding them from the training is a recommended good practise to keep on hand.

3. Bias Bounties

As for older generations of software, sharing the details of an AI algorithm can become more of a liability, especially if it becomes exploited with malicious intent to harm since it provides insights into the model structure and its operation. A countermeasure, brought on by Forrester as a trend for 2022, is bias bounties, which support AI software companies to strengthen and improve their algorithm robustness.   

“At least 5 large companies will introduce bias bounties in 2022.”

- According to Forrester: North American Predictions 2022 Guide

Bias bounties are becoming the go-to weapon and armour of defence for ethical and responsible AI because they can help ensure that the algorithm in place is as unbiased and as reliable as possible. All because of the many sets of eyes and different thought processes that review it throughout the course of the campaign.  

4. Human Behaviour

Human behaviour can be some of the hardest and easiest to predict. When it comes to data or AI manipulation, our first thought might be malicious activity. However, organisations should stop to reflect on what Personal Data is being willingly shared by people even if it is not knowingly. 

Our CyberSecurity main weakness is our ability to propagate knowledge of our identity and activities in seconds to thousands of people. Artificial intelligence or even basic tools that can collect data have given this new behaviour consequences that may prove critical when it comes to cyber security.

Let’s look at an old example for reference, with geo-localisation data that is openly shared on social networks: From 2018, it shows how individual scraps of data can be gathered to provide powerful insights into an individual person’s identity and/or behaviour. 

These insights can then actually be used as leveraged by AI systems to categorise ‘potential customer targets’ and provide very specific outputs or recommendations. A more recent reference that can be reviewed is, The Social Dilemma documentary about the world of the “attention economy” that is built on this Personal Data gathering from monumental amounts of information. To decrease the impact and subsequent consequences of our Human behaviour, nothing outperforms culture and scientific awareness. Data Science acculturation is essential for more security of our private data but also for the ethicality that is baked into AI models, as detailed in the first topic of this article.

“AI tools may be too powerful for our own good”: When feeding streams of data on customers, a Machine Learning model may learn much more than we would actually like it to. For example, even when gender is not an explicit data point in customer data, the algorithm can actually learn to infer it through proxy features. All this when a Human could not, at least with that amount of data, in such a limited time. For that reason, analysing and monitoring the ML model is crucial. 

To better equips ourselves to anticipate algorithm and model behaviour, and to help prevent from occurring discrimination through proxies, a key element is diversity. This key can be and is often overlooked when discussing AI solutions. Having multiple reviewers that can provide input through their individual cultural, socioeconomic and ethical backgrounds can lower the risks of biases being placed into AI programs. Organisations can also request algorithmic audits by Third parties, which utilise their expertise and workforce diversity if the team themselves lack diversity to complete these tasks themselves. 

About the author: Antoine de Langlois is Zelros' data science leader for Responsible AI. Antoine has built a career in IT governance, data and security and now ethical AI. Prior to Zelros he held multiple technology roles at Total Energies and Canon Communications. Today he is a member of Impact AI and HUB France AI. Antoine graduated from CentraleSupelec University, France. 

Luis Maurette is the Managing Director of Willis Towers Watson Latin America & Global Head of Sales & Client Management department. Maurette was born in Argentina and has lived abroad across Latin America for over 30 years.

For the last 10 years as a regional Latin America business leader, I have spent much of my time on an airplane. Every week I packed a suitcase and visited a city, mainly due to my regional role in Latin America and global role across Asia and Europe. Until one day when I stepped off a plane: this was the day a series of challenges began to arise, which formed ‘the perfect storm.’

In the last year and a half, not only did we go through a pandemic, but with the beginning of lockdown, Willis Towers Watson announced a pending merger. At that time, with the news of an unknown and dangerous disease combined with a possible merger transaction, all our colleagues went home and began to work in a format most of us were not accustomed to.

It was then the question arose: are we prepared to manage a situation of total uncertainty regarding the future? Remarkably, everything we learned and executed in past years like structuring teams and processes, discipline in management, and sales processes, then subsequently implementing them in a sophisticated way had actually prepared us for a situation akin to the one we faced. When the pandemic struck, we were shown that all the work we’ve done over the years will allow us to navigate these troubled waters in a very positive and productive way, making 2020 one of the best years for Willis Towers Watson in Latin America.

Teamwork, combined with an incredible level of resilience, made this all possible. In fact, it was a clear indicator that the work we performed for years with the vision of being the best and generating a strong value proposition for clients, were critical to this result, and 2021 has been no different.

The instability of the economies in Latin America has been constant, with great challenges, complex decisions, and insufficient handling of the pandemic. We continue to grow, serving our customers better than ever, generating results for our shareholders well above expectations, a sign of the quality of the company. Now we are entering a new stage in a much more normal world, however, we’re much stronger, better prepared, mature, and aware of who we are and what we can offer, which makes me extremely proud.

The instability of the economies in Latin America has been constant, with great challenges, complex decisions, and insufficient handling of the pandemic.

The global situation due to the pandemic allowed us to break with many paradigms, one of them that we, “Latinos”, deem interpersonal, face-to-face contact with colleagues and clients extraordinarily important. Today, we have proven that the new way works, thanks to the technology we have, as well as the clarity of our processes and the attention that we, as a company, place on the health and well-being of our people. We function efficiently and always look forward to providing best-in-class service for our clients.

One of the many lessons we’ve learned during this pandemic is concerned with those who live in big cities. In pre-pandemic times, we were able to visit up to three clients in one day. However, today, we can achieve up to six or seven meetings, get the participation of all necessary people no matter where they are located and have virtual roadshows.

Another important lesson of this past year and a half centres on the importance of looking forward, adapting, and understanding that improvement is necessary. We are constantly reviewing our work in detail, have been in continuous communication with our people, and only 20% of our workforce wants to return to the office.

We have saved two commuting hours daily, can now spend more time with family and have a better quality of life, which translates into greater efficiency and a stronger commitment to the company. Further, as an organisation, we provide our workforce with the infrastructure and conditions necessary so we can continue to perform successfully in this new work environment.

The pandemic has instilled an important change in my way of working and lifestyle too. I have discovered greater productivity by not having to jump from one plane to another, by working from home, eating healthier and spending more time with my wife. I can say, with all certainty that it has been a very interesting year.

Throughout my career in this industry, I have faced numerous adversities but never so many at once. It has been very interesting to be the leader of this process, and rewarding to reach the end of the year with such a committed team; we have entered a stage of rebuilding teams, and I am delighted that there are so many people interested in joining us. We are returning to our essence with more talent that wants to join this project, which speaks very well of the company.

Challenges are constant across my professional life as I have led change processes from the beginning of my career as general manager of a multinational insurer. I led transformation and recovery projects throughout Latin America - in Mexico, Argentina, Ecuador, Chile and Brazil. The greatest achievement from all these projects and challenges is knowing how to choose the right people who accompany me, having the vision to coalesce a team that complements each other and achieving success in the projects undertaken.

We have solved challenging projects with a truly admirable, committed team, in which each colleague can recognise their contribution, both individually and as a group, which makes people grow as professionals and motivates them to go that extra mile.

Something that stands out about me as a professional and as a leader is that once things are on track, I am already visualising the next steps. We, as a company, are faced with the challenge of carrying out the strategy with sustainable growth and implementing a model that leads us to transform the business to align with tomorrow. My goal is to help transform our company to adapt to the future while taking advantage of key learnings through the pandemic and help our Latin American market grow.

Personally, I am grateful for this recognition; nevertheless, every achievement has been tied to great teamwork. Thus, this is a recognition to everyone in Willis Towers Watson. I am just one of the team - though I act as a leader, my role is just one part of this great team. Most importantly, our clients continue to feel well cared for, protected, and advised, which is our key goal.

I am happy with our achievements and very committed to what we have learned. We are entering a different world and I am very excited about what awaits. I am grateful for my opportunities, great team and many successes.

How would you describe yourself?

I’m proud to say I was recently voted (by my daughter) to the illustrious title of “World’s Most Embarrassing Dad!” So that’s my full-time gig, but I also masquerade as the Founder of my firm, The Haney Company, advising our clients on how to achieve financial freedom. I think my role is fairly straightforward -  build our brand and develop the right relationships so we can help as many clients as possible. My market development responsibilities have me running a podcast, writing 1-2 articles a month for a variety of industry publications such as Associations NOW, Insurancenewsnet, Advisor Today, Adviser Perspectives, and Kiplinger to name a few. I am also a professional speaker, speaking over a dozen times a year to a variety of audiences, and also launched a Brand Development and Coaching consultancy within our firm to help financial professionals develop a brand and stand out in the digital marketplace. I not only want our practice to thrive, but I also want my industry to thrive because removing financial barriers is better for everyone!

When it comes to my “job,” I consider myself very fortunate to view it as a calling, not just a profession. I deeply care for all my clients beyond what I do for them professionally. It’s such a blessing to feel like work isn’t “work,” and I’m doubly fortunate to work every day with people I deeply respect. I know that not all family businesses are great, especially when the family dynamic breaks down. We are fortunate that we not only love and care for one another, but we like each other too!

Tell us about The Haney Company’s mission and goals?

It might surprise you to know that the most important business lessons I learned were taught to me when I was 8 years old working with my father as a paperboy. Delivering newspapers 365 days a year to 72 houses at 5 am each day, wasn’t exactly every young boy’s dream. Beyond the meagre amount of income it provided me, those 11 years were some of the most formative moments of my life. The most significant lesson I learned was when my dad told me, “If you’re going to do anything, do it with excellence.” This has been our business mantra ever since. So, fast forward to our family business today: our team has embraced several core values that guide everything we do:

• Family – Those we care for most
• Equity - Diversity and inclusion
• Education – Financial empowerment
• Social justice - Addressing poverty & economic inequality
• Green living – Caring for our culture and our planet

We all strive to live life on purpose and mission. Whether an Association driven by mission, a business hoping to be sold one day, or a family eager to send kids off to college and retire to the beach together, our finances should be a means to that end, never a stumbling block. With so much information out there, much of it conflicting, it can be hard to navigate a way forward with confidence. We want to cut through the noise and help you interpret that information so you can apply it properly to your situation. Good financial advice can be the key to achieving your mission and life goals. One of the underlying goals of our firm is to empower people to live enriched lives and not be held captive by financial stress. I firmly believe that means we are in the human transformation business.

What are the things that make a great insurer in your opinion?

I think great insurers and insurance professionals see insurance for what it is, not just what it does. Insurance shows up when others run away, insurance lifts up when everything falls apart, insurance repairs broken lives and gives us a chance at new ones. While the industry is fighting commoditisation, great practitioners and companies alike see the continued need to properly assess and address the risks we all face. Don’t buy and build risk around price, build price and policy around risk. In our practice, we understand that our brand is not just the corporate name that shows up on our clients’ insurance statements, but it’s our emotional connection to our clients and the value of their experience working with us. It’s not only our promise fulfilled, but the life that becomes possible after the storm hits. We aren’t bartering a commodity, we are protecting and preserving love and human dignity. We offer hope and new beginnings.

Insurance shows up when others run away, insurance lifts up when everything falls apart, insurance repairs broken lives and gives us a chance at new ones.

What is your favourite thing about your job?

I am passionate about seeing people achieve financial freedom. Making the most of your money doesn’t come easy! Knowing what to do, how to do it, and wondering if you made the right decision can be challenging. I understand how that feels and I am fanatical about helping you make the financial decisions you want to make but may not understand how to make. There’s a lot of information out there, much of it conflicting, so it can be hard to know how to make sense of it. I want to cut through the noise and help you interpret that information so you can apply it properly to your situation. I help people understand, not just to do something, buy some policy, make some investment and hope it works out. In 15 years, I have found one thing to be universally true: we all want to make the right financial choices for ourselves, our businesses, and our families. So, it’s never a lack of desire that prevents us from doing certain things, it is usually a lack of understanding, not just what to do, but how to do, and why to do it. Following a financial plan, properly investing overtime, offering employees benefits that are competitive but don’t bankrupt you, selecting insurance that adequately protects those you care for, none of these are intuitive, nor are they something that is taught in school.

I joke sometimes that I’m a Financial Therapist. So much of finances is emotional because so much of it deals with relationships and people that we care for. No, I don’t sit people down on a couch a have them spill their guts over bad financial decisions and offer them tissues at $200/hour. My role is simple: I help my clients make the financial decisions that they want to make, but just don’t know how to make. I help my clients frame the decision the right way (specific to them, not some generalisation about what everyone “should” be doing), understand the variables involved, then assess the landscape of options that may be a fit. We weigh out pros and cons, and ultimately, I help facilitate the option that my clients feel suits them best. At the end of the day, they control their money instead of having their money control them. I think that financial peace is some of the best kind of peace and helping clients achieve it is perhaps the most exciting part of every day for me.

What does this award mean to you?

This award is so incredibly humbling because, for me, success is team success and not the function of any one person in our practice. I would not be here without the incredible team behind me, nor without the incredible community of colleagues that have mentored me, picked me up when things got rough, helped me and constantly pointed me in the right direction to be the best professional I have hoped to be. Organisations like the National Association of Insurance and Financial Advisors (NAIFA) have been foundational to me, and I could not imagine any recognition being possible without them. I’m so grateful for this recognition and hope it can be an opportunity to offer encouragement to other industry professionals so we can all collectively become more and help our industry make a more significant impact in our culture.

About Brian Haney

Brian has been in the Financial Services Business since 2003, working with a diverse group of clients representing a slice of the Washington DC marketplace. As a native of the Washington area, he grew up in Chevy Chase, Maryland, attending high school in Bethesda. He founded The Haney Company with his father 9 years ago, combining 2 generations of industry experience. With more than a decade of experience in Banking, Investments, Asset management and insurance, Brian’s expertise and keen insights provide organizations, businesses and individuals with unique and innovative strategies to meet their insurance needs and financial goals. The marriage between his father’s association/non-profit expertise and his private industry background give the Haney Company a substantial edge in the marketplace.

​Brian is active in the industry and has received much recognition during his time. He was a SunTrust Bank EdgeMaster Conference Qualifier 2006, the West Financial Group New Agent of the year in 2008, MassMutual Life Insurance Company Rising Leader 2009, 2010, 2011, MassMutual Life Insurance Company Leaders Qualifier 2009, 2010, 2011, 2013, 2016, MDRT Qualifier every year since 2009, MDRT Court of Table Qualifier every year since 2014, and a Top of the Table Qualifier every year since 2016. Brian is also a NAIFA National Quality Award recipient each year since 2013. Brian was also named one of NAIFA’s prestigious 4 Under 40 in 2017, as well as their Diversity Champion in 2018. Brian was honored to be one NAILBA’s ID 20 winners and one of the Washington Business Journal’s 2019 40 UNDER 40 winners. Brian was recognized by ThinkAdviser as a 2021 Luminary Awardee for Diversity and Inclusion. He is an active Board member of NAIFA Greater Washington, and an active MDRT volunteer leader.

​Brian’s professional designations include:

• Certified Funds Specialist (CFS®)
• Certified Income Specialist (CIS®)
• Certified in Long Term Care (CLTC®)
• Certified Family Business Specialist (CFBS®)
• Life & Annuity Certified Professional (LACP®)
• Certified Association Executive (CAE)

Brian was formerly a Private Banker & Investment Associate for SunTrust Investment Services, and a Licensed Banker at Wachovia bank where he began his career. Brian resides in Silver Spring, Maryland with his wife and daughter. He is a 2002 Graduate of Indiana University.

Firm Profile

The Haney Company offers financial services advice and guidance, including strategies for aligning values and mission with investment decisions, based on decades of experience and the highest level of personal attention. These advantages provide an uncompromising dedication to our clients and the ability to find the right financial solutions for you and your goals. As specialists in insurance and retirement programs for Associations and their executives, we’ll always dig deep to find the insurance and affinity plans that work for your organization. And because of our extensive training and experience, we can also provide you with innovative solutions that fit best.

Brian Haney

CLTC, CFBS, CFS, CIS, LACP, CAE

Founder, Vice President

The Haney Company

308 Southwest Drive

Silver Spring, MD. 20901

T: 301-593-0600

F: 301-593-0800   |   C: 240-888-8630

Web: www.thehaneycompany.com

LinkedIn: www.linkedin.com/in/brian-haney-thehaneycompanyfinancialguy/

Jeff Arnold is the founder of RIGHTSURE, one of the most awarded insurance firms in North America.  He is the author of five books with four of them holding the highly coveted spot of #1 Bestseller.

Jeff has been called a Thought Leader and Global Ambassador for the Insurance Industry. A title he maintains that most executives in insurance should be noted for.

The way you got into the insurance industry is quite interesting – can you tell us a little bit about it?  

You know, I used to say that after leaving Hollywood as a failed comic and actor, I applied for a very cliché newspaper ad that said: “Insurance Salesman Wanted”.  But after so many interviews and podcasts for my books over the years, it became clear to me that I have admired this industry from the time I was 12 years old and working on a farm in Western Kentucky.

I was standing on a trailer separating tobacco leaves for harvesting when a guy drove up in a brand new four-door Buick with the windows up (which means he had air conditioning ). Out stepped this guy in a crisp white shirt and tie – which prompted me to ask my friend on the hay bale next to me: “What does that guy do?”, to which he replied: “Insurance or something like that”.

So after nearly three decades in Insurance, I can confidently say that – the industry called to me when I was still a teenager – working in the tobacco fields. It just took me another decade to answer that call.

What made you fall in love with the job?

From day one of answering the aforementioned ad, I was hooked. I couldn’t read enough, learn enough and I couldn’t stop telling people about insurance.

The sophisticated risk transfer features we use, the joy of packaging up legal contracts and offering them to the public, all of it, everything from our rich history to how our industry impacts so many parts of the world for good and social betterment.

What has the COVID-19 pandemic been like on the insurance industry in North America?

Certainly, the past couple of years have impacted everyone in different ways. Personally speaking, the entire event drastically changed my leadership style. Pre-COVID, I was hyper-focused on goals, targets, revenue improvement and of course expense management. During COVID, I had to pivot and become more emotionally engaged and compassionate. Maybe our goals had to be dialled back, but our staff needed adjustment time, mental breaks and check-ins to make sure everyone was ok.

I don’t think anyone came out of COVID with the same leadership skills they entered it with. We all had to change. How could we not have and be relevant?

 “Nearly Every Insurance Executive I know – gives back and speaks wonderful things about the spectacularly awesome products we offer.

What are some of the challenges you’ve been faced with and how have you adapted to them?

I think that every firm is wrestling with talent issues. Recruiting new staff, keeping existing staff, fine-tuning a more balanced workplace that is compatible with a shifting expectation. Firms that want to remain relevant have to adapt, enhance offerings, improve messaging and become engaged in not only re-recruiting their existing staff but continually identifying what the next wave of onboarding insurance geeks wants work to look like.

I would submit to your readers that it most certainly begins with a “remote first“ offering where workers may choose to live and work anywhere they want.

You’re also an author of five books, including four #1 bestsellers – tell us a little bit about them.

Thank you for that question and I could spend forever on this, but I’ll try to be succinct.

• My first book The Art of the Insurance Deal is a look back on insurance firms acquired and lessons learned. It lists more failures than successes and therefore is a great “what not to do” read for anyone in the M&A space.
• My second book How to Beat Your Insurance Company has a bit of a misleading title (or a hook as my publisher called it). This one is mostly about the value of using a professional insurance representative or agent to get the best value in all insurance purchased.
• My third book is Tech Enabled, Tech Forward and Tech Shackled. This was a primer reflecting on how integrating tech in our industry should and should not be done.
• My fourth book Insurance Evolved is another very short primer on where I see our industry in 2025. A date that is rapidly approaching. The content, though brief, is super thought-provoking.
• Lastly, my fifth book is Moments with Mucka. Though this one has not made it to number one yet, I hope that it will join the other publications one day. Moments with Mucka is about my firm RIGHTURE and our journey to become a highly awarded workplace and technology firm. It includes emails and memos from me to staff in our early days and discusses the operational, cash flow, staffing issues that nearly every agency owner or insurance executive can relate to.

When can we expect a new book and what topic do you plan to explore next?

I think I am always working on the next book in my mind and candidly I am probably already three books ahead in my imagination. The book I am consolidating the most notes about right now is The Rise of the InsurTechs and am quietly speaking to founders I believe are transforming the landscape of how insurance is bought, sold and serviced.

Finally, can you tell us a little bit about this award and what it means to you?

RIGHTSURE has been so very fortunate to be a recipient of so many awards, but the thing about winning is that it never ever gets old.

It is actually quite addicting and pushes everyone at our firm to improve, be better, work smarter and harder.

Winning is for everyone a validation that we are on the right path, working as a team.

From the meticulous levels of organisation to creating careful hiring strategies, there are a huge number of caveats to consider and decisions to navigate when trying to scale your business and ultimately, become successful.

One of the most important examples of this is your finances – the money your business has available - to not only get up and running but also sustain it throughout the initial period. Managing finances correctly is imperative to ensuring long-term success, and without taking the time to carefully think about how to correctly maintain the finances of your start-up, you could end up in trouble a lot sooner than you might think. So, to help stop this from happening to you, we thought we’d lend a helping hand. Join us as we run through some of the key things you should and shouldn’t do when trying to finance your start-up business.  

Do: Understand the tax implications involved

Regardless of the size or nature of your start-up business, there is one financial implication you simply can’t avoid: tax. From the income tax your employees pay to the national insurance contributions you make personally, it is vital to understand which types of tax you will be liable for – and why. Corporation tax, for example, is a form of tax payable on the profits your business makes as a limited company. This is typically charged at a single rate of 19% but can vary depending on where your company is registered. If, for example, you were registered overseas in Gibraltar, your corporation tax rate would be lower at 12.5%. Therefore, if you aren’t sure which types of tax you will owe, or how to work out what your tax liability will be, it could be worth getting clued up by speaking to a professional within the country you operate in. 

Don’t: Forget to reclaim your business expenses

Since money will most likely be fairly tight to begin with, the last thing you will want to do is miss out on being able to reclaim any expenses you incur while building up your business. There are, after all, a wide variety of things you can and can't claim for expenses on, so it's important to know the difference. Otherwise, you could unintentionally be leaving yourself vulnerable to committing tax fraud. 

Listed below are some of the key things to be wary about, helping you save those precious pennies during the early stages:

• Pre-setup costs. Did you know that you can claim relevant expenses for up to seven years before the business begins operations? That means things like computers, software, internet, travel and professional services may all be tax-deductible depending on, firstly, when you purchased/used them and, secondly, their exact intended use.
• Business insurance. Any business insurance policies you have can be claimed as limited company expenses, as long as they are strictly used for business purposes. This includes public liability insurance, employers’ liability insurance, professional indemnity insurance, contents insurance, and many others.
• Travel & accommodation. Any mileage, food, drink and accommodation costs associated with overnight business trips can typically be reclaimed, helping lower your total Corporation Tax bill. Likewise, parking costs, congestion charges and public transport fares can also be claimed as business expenses.

Do: Draw up a budget

A start-up business often spends more than it earns for the first two to three years. Therefore, the amount of financing you need may continue to increase even after you've finally broken even. As such, it's important to draw up a budget in line with your business plan, outlining your sales forecasts, potential expenditure and capital costs. This should be realistic and allow for contingency funding if the worst were to happen – whether that be your website being hacked or a product launch being delayed.

Similarly, this budget should identify the types of borrowing that suit your business model – both long-term and short-term. From sourcing loans to arranging overdrafts, it's imperative to know what you can and can't afford, only ever entering into financial arrangements that are practical.

Don't: Forget to check the small print

If something sounds a little too good to be true then, in all likelihood, it probably is. Therefore, it always pays to double-check the small print of any loan or financial agreements that you decide to sign up to.

Whether it be the overall term of the loan, the proposed APR after a set period of months or the total number of payments you're expected to make, the last thing you want is to be caught out by anyone you owe money to. 

About the author: Annie Button is a professional content writer and branding aficionado. 

Some of the most successful businesses have come about because the founder was trying to solve a problem that they had experienced, often just for their own benefit. There is nothing wrong with setting up a money-making project as a hobby, and no need for a hobby to necessarily turn into a full-fledged business. But it is worth understanding your own motivations and being clear with yourself about what you want to achieve.

What is the difference between a hobby and a business?

There are no hard and fast rules that distinguish between a hobby and a business. For me, it is a state of mind – what are you trying to achieve? Is this a project to fill time, or are you single-minded in your desire to set up a successful business? It’s an important point as businesses take time and devotion. Many businesses fail because their founders aren’t prepared to make the sacrifices necessary to make the business a success. 

What business structure should I use?

There are a large number of potential legal structures available for people setting up a profit-making enterprise. However, in most cases, only two are relevant: sole trader and limited company. 

A sole trader is when an individual begins to trade in their own name. For example, I decided to set up a coffee shop, and call it “Beans Coffee”: the business would be “Michael Buckworth trading as Beans Coffee”. Setting up as a sole trader is a quick and easy way to get up and running: all you have to do is notify HMRC that you are now self-employed. You can find out how to do that here. 

Limited companies are separate legal persons meaning that they exist separately from their owners. They can enter contracts, borrow money, and are liable to pay tax on their profits. You can register a company easily by filling in an online form and paying £12. One of the most important differences between a sole trader and a limited company is that a limited company has limited liability whereas a sole trader doesn’t. With a sole trader, if something goes wrong, you are personally liable for all the debts of the business, whereas (in most cases) if a limited company can’t pay its debts, it goes bust, but the assets of its owners and directors are protected. 

Which one to choose? As a rule of thumb, it is fine to operate a (low risk) hobby via a sole trader. However, if you are planning to grow and scale a business, I would suggest incorporating a company from the get-go. There is one footnote to this advice: once you incorporate a limited company you have to make an annual filing with Companies House and file accounts each year, so there is a cost associated with it. It isn’t a problem if your business is going to grow and scale, but it could be an unwelcome cost if you don’t intend to generate more than modest amounts of revenue. 

Are any profits I make on a hobby tax-free?

There are two certainties in life: death and taxes. However, there is a small allowance for people making modest amounts of money from hobbies and side hustles. If you have earned less than £1,000 from your hobby (and any other side hustles you may have in play) during a tax year, you don’t need to declare that to HMRC as income. However, any more than that must be declared, and you have an obligation to keep track of your earnings to make sure that you don’t exceed the limit. 

Do I need to worry about contracts and insurance for my hobby?

In my view, any business should have in place contracts with its customers as soon as it starts to trade. Contracts are hugely important as they limit your liability if something goes wrong and protect your revenue stream (as well as providing protection in a number of other important areas as described in detail in my book, Built on Rock, an entrepreneur’s legal guide to start-up success.) Most businesses will also want to have in place insurance to provide protection if something goes wrong. 

Whether you need insurance for your hobby depends on what you are doing, and the likelihood of you becoming liable if something goes wrong. Imagine you sell face creams online: you would want insurance in case a customer suffered an allergic reaction to your cream and sued you for personal injury. By contrast, if you are selling birthday cards online: you probably don’t need to bother with insurance as the risks are minimal and can be covered off in a simple customer contract. The key questions for you to consider are “what can go wrong?” and “what is my likely exposure if something does go wrong?”

What happens if I change my mind and want to flip my hobby into a business idea?

If your hobby really takes off and you realise that this is something that could make a viable business, congratulations! It probably makes sense to flip the business into a limited company sooner rather than later. Why? Firstly you can’t raise investment from third party investors as a sole trader – you need a limited company to do that so that you can issue them with shares. Secondly, you probably want the protection of limited liability if you are going to try to scale up your idea: the more customers you sell to, the greater the risk. Thirdly you want to make sure that the intellectual property rights in your business idea (the intangible stuff that you create as you develop your business such as your logo, the design of your product and the source code in any software you create) are created in and belong to your company, as this optimises the chances that you will later be able to qualify for a bunch of tax reliefs for start-ups. 

I have no business experience: can I really set up a business?

Over the years, as founder of Buckworths, I have spoken to many would-be entrepreneurs who worry that they don’t have any business experience, or the skills to be able to run a business. The good news is that it generally doesn’t matter. You can figure out the answers to most problems through research and  by speaking to people who have already figured it out. It doesn’t matter if you are a student, a stay-at-home mum, a retiree or a person working a 9 to 5 job. You have a uniquely personal experience that has led you to come up with your idea; you have a set of skills that can be harnessed to get your idea off the ground, and you have as good a chance as anyone else of making a success of it. Grab the bull by the horns, launch yourself onto its back and enjoy the ride. 

This is a key component in understanding debt and its potential impact on your life. For your convenience, we’ve put together a short list of things you can do to disaster-proof your finances. 

1. Make Sure You’re Properly Insured

There are a few types of insurance that help disaster-proof your finances. The first is one we don’t like to think about: life insurance. It’s more for the family members that you leave behind than for you personally, but you should have it, especially as you start a family of your own. Protect your loved ones from the crushing debt that often comes after a major household earner passes away. Other insurances you should include are medical insurance and homeowners’ insurance if applicable. If you’re getting on in years, you might also want to consider long-term care insurance to cover nursing homes or LTC facilities. These are all areas where unexpected expenses can run several thousand dollars, so it’s worth paying the premiums.  

2. Create A Budget So You Know What Your Expenses Are

Spending money without knowing exactly how much you can afford to spend is a surefire path to financial devastation. Spending a few hours creating a budget can prevent this. Make a list of all your expenses, even the small and infrequent ones. Compare that to how much income you have coming in. The remainder is what you have left over to work with. (You can eliminate unnecessary expenses if you’d like to have more flexibility for emergencies, savings, or paying off debt.) As part of this process, put together a savings plan. It’s prudent to have an emergency account that you can draw off when life throws you curveballs. It’s also a good idea to start an investment portfolio and a retirement savings account. These give you an added security blanket and can help ensure financial stability in your golden years.  

3. Avoid “Get Rich Quick” Schemes

Hitting the lottery is not a financial plan. Play if you like, but don’t count on winning that big jackpot to cover your living expenses. Life generally doesn’t work that way. Disaster-proofing your finances requires hard work, not a random game of chance. That doesn’t mean you shouldn’t play, just make sure lotto tickets are in your budget. This same principle applies to “business” opportunities that look like get rich quick schemes. If it looks too good to be true, it probably is. Carefully review any business venture and make sure income estimates are realistic. Don’t be that person who fails because you believed the hype about something you saw on the internet.

4. Don’t Buy What You Can’t Afford

This is the simplest suggestion on this list and maybe the most difficult to implement. We all want that bigger house or nicer car. The question is, “can you afford it?” Just because the bank will approve you for the loan or mortgage doesn’t mean you should follow through with it. Taking on too much debt can make your finances unmanageable. 

Life is full of surprises. Some of them are pleasant and others can cause financial disaster. It’s best to be prepared for anything, and the suggestions above should help you do just that. 

About the author: Kevin Flynn is a former fintech coach and financial services professional. When not on the golf course, he can be found travelling with his wife or spending time with their eight wonderful grandchildren and two cats. 

Not all entrepreneurs are good with numbers and keeping records, which is why it’s so crucial that they have a solid plan in place for money matters. Whether you’re thinking of starting a small business or want to improve the way you handle your books, these tips can help you to achieve more control over your financial situation.

Accounting Software

If you’re still using spreadsheets to keep track of your finances, it might be time to invest in accounting software. This will help you to keep all your records secure while maintaining accurate information. There’s less room for human error thanks to the software’s ability to make calculations for you and you’ll never misplace an invoice or receipt again. What’s more, many types of accounting software will also help you to handle payroll and have better visibility over your cash flow.

Invest Your Money

When starting out it can be tempting to hold onto your money tightly, but this can often do your business more harm than good. While you need to be making a profit, it’s important that you reinvest your money in your business. This is crucial for future growth and will help you to increase your profits in the long term. Whether you’re thinking of hiring a marketing agency, upgrading your website or building an app, take some time to improve the services you’re offering to your customers to see your revenue increase.

Be Aware Of Tax

Everyone knows they have to pay tax, but are you planning for it throughout the year? Many business owners only start thinking about tax as their deadline approaches, but this can put you in a tricky financial situation if your payment is bigger than you expected. Make sure you’re calculating tax as you go and setting aside funds that you know aren’t really yours. This way you can avoid any disasters at the end of the tax year that could potentially see your business folding before it’s even had a chance to grow.

Choose Loans Carefully

People have different attitudes to loans, with some refusing them completely and others taking out too many. Loans aren’t all bad but you do have to choose them carefully. If you need an injection of cash to get your business off the ground, a loan could be well worth your time. But taking out loans with high interest rates could hurt you in the long run, especially if you’re not investing the money as wisely as you should.

Insurance

Finally, insurance might be an extra expense in the short term, but it can save you thousands further down the line. Make sure you thoroughly research the types of insurance your business can benefit from to give yourself complete coverage. You want to be fully protected from potential lawsuits as well as natural disasters like floods and fires.