Professional Farm Mutual Manager Designation (PFMM)

Professional Farm Mutual Manager Designation
Overview & Benefits
In-Person Modules
Virtual Module
Maintenance
Class of 2023
Manager of the Year
Emeritus Status
Why PFMM
- What It Means
- Testimonials
Exclusive Sponsor:

PFMM In-person Module Rotation

PFMM in-person modules are offered on a rotating basis between two NAMIC events: Farm Mutual Forum (May) and Annual Convention (September). Credit is received based on attending an entire module at the event, not on a course-by-course basis. In order to earn the PFMM designation, you must complete all three of these in-person modules as well as the virtual module within five years.

UNDERWRITING & CLAIMS

May 2023
Louisville, Ky.

September 2024
Denver, Colo.

FINANCIAL MANAGEMENT

September 2023
National Harbor, Md.

May 2025
Location TBD

STRATEGIC BUSINESS MANAGEMENT

May 2024
Location TBD

September 2025
Location TBD

FINANCIAL MANAGEMENT MODULE COURSES

Financial Management

Understand the basics of insurance accounting, including assets, liabilities, and surplus
Types of filed financial statements (yellow book, policyholder statement, etc.)
Importance of utilizing the services of a well-respected CPA firm who specializes in P&C insurance
Understand the importance of adequate surplus/reserves
Understand the effect of unearned premium as a liability
Understand the importance of rate adequacy
- Sample rate analysis
- Rate making methods
Understand how to calculate loss, expense, surplus/premium ratios
Develop a budget and monitor success
Manage the growth of premium
Mergers & Consolidations/Amalgamations
- Walk through the process of looking at the combined financials of the two mutuals coming together.
- What are some key things to look for?

Past, Present and Future of Farm Mutual Insurance

Understand how the idea of mutual insurance originated
Understand the difference between mutual insurance companies and other companies
Understand the operating structure of a mutual insurance company
Understand how mutual insurance is affected by state and federal governments/ regulations
Determine how companies will evolve and change to ensure a future in the insurance marketplace/industry
- Emphasize the future of farm mutuals and what they need to do to ensure a prosperous future
- What challenge are mutuals facing in today’s world?
Managing the relationship with the state’s department of insurance
- Financial exam
- Market conduct exam
- Rates and forms

Reinsurance

Understand the purpose of reinsurance to the mutual company and give a general overview of what it is
- The history of reinsurance
- Broker market vs direct writer
- Capacity (domestic, international, London, Bermuda)
- Reinsurance is not a commodity
Understand the partnership between the mutual company and the reinsurance company
- What data should be collected to maximize reinsurance meetings/cost
- Importance of quality data and how it relates to cost
What systems are available to data mine (what are the BEST?)
Basics of a reinsurance data report
What you need to sell yourself to a reinsurer
Understanding what is expected of the mutual company by the reinsurance company
Predictive modeling
- What are they using this information for?
Determine the need and type of reinsurance to purchase
Understand the different types of reinsurance contracts and the basic language
Understanding how the cost of reinsurance is determined
Understanding the breakdown between homeowners and farms
- Exposure vs. experience rating
- Development/trending of claims; on-leveling of premium
- Catastrophe modeling
Leveraging reinsurer-value added services
- Probable Maximum Loss (PML) Mapping
- Rate and form filing
- Special investigation services
- Additional adjusting services

STRATEGIC BUSINESS MANAGEMENT MODULE COURSES

Agency Relations and Development Strategy

Know the importance of attracting qualified and professional insurance agents
Understand the importance of agency contracts and agreements
- Contract development and review
- Individual agency, cluster, aggregator changes related to agencies
Understand how to cancel an agency contract
Determine the best means of offering products and services to the agency force
Understand the importance of offering competitive commission and contingency bonus plans to the agency force
Understand the importance of the agency force in regard to the appropriate spread of risk for the company
Understand the importance of growth and the addition of new agents for the company
Determine the needs of production and loss ratio requirements upon the agency force
Determine the needs and requirements of technology in relation to the agency force marketing the company’s products and services
Understand the importance of flexibility and ease of doing business in working with the agency force
Understand the importance of underwriting, applications, rates and discounts in working with the agency force
Understand the importance of keeping the agency force involved with the operations of the company by such means as surveys, training, and an agency advisory committee

Corporate Governance

Rules and structure of mutual insurance companies
Involvement of the policyholders in a mutual insurance company
The structure of a mutual insurance company’s board of directors
Conduct an efficient board meeting set an effective agenda
Roles and responsibilities of the board of directors in the company’s operations
- What are the boundaries and limitations between the manager and board?
- What gets shared with the directors?
- Do you have a BOD manual and what should be in it?
Director independence (from management)
- What’s the tone at the top?
- What’s a board evaluation?
- Who needs a mandatory retirement policy?
Director and Officer liability
Defining, setting, and monitoring internal control procedures
Importance of the audit to ensuring proper control procedures
Purpose and benefit of state and national trade associations
Define the line
- Conflict of interest statements
- Board diversity

Technology

Understand the importance of technology to company operations
Review resource allocation for technology
Understand how to develop a technology implementation plan and company website and social media
Discuss technology and how it applies to all generations
Review available technology options for underwriting, claims, and financial management
- What technology options are available for monetary transactions
- Mention that if you are paying claims with direct deposit, it cannot include the mortgagee
Review rating and quoting systems
Understand technology and equipment options to help create a paperless system
Understand proper safety procedure when dealing with technology
- Examples: mails, client data, and payment information
Understand different technology disaster recovery efforts

UNDERWRITING & CLAIMS MODULE COURSES

Claims

Understand the proper handling of bad faith and fraudulent claims
Understand how to reclaim your dollars after the loss (salvage, subrogation, and restitution)
Understand the importance of conducting claims file audits and establishing a timeline for reviews
Basic investigation/practices/steps to go through for a claim
Customer service aspect of claims
Developing a claims procedure
Governance & Claims (how should you act and what is your authority?)
Discuss auditors and what they’re looking for in reserves on claims after an adjuster inspects a property

Loss Control

Review the basic adjusting procedures
Understand the development of a loss control program (how to get started, the inspection process and claims files, creating consistency)
Review basic inspection procedures and guidelines (items to include such as diagrams, photos, etc., and inspector/adjuster training options)
Understand the process of estimating losses and establishing reserves
Review plans for handling catastrophic events (available resources, testing back-up plans, emergency communication)

Underwriting Property & Liability

Understand the importance of developing underwriting guidelines
Transition from a paper manual to underwriting automation
Overview of the tools available for underwriting (credit-based insurance scoring, insurance to value, CLUE report, protection class, surcharges, and discounts)
Understand the importance of a complete and accurate application to the underwriting process
Understand the risks associated with not completing an onsite review
Know the types of questions to ask to properly underwrite the risk
Understand the potential risks and exposures with underwriting property
Understand the potential risks and exposures with underwriting liability
Understand the philosophy of evaluating rate adequacy (pricing, coverages, insurance to value, actual cash value versus replacement cost)
Actual cash value versus replacement cost
Insurance to value
- Automatic inflation guard
- Different needs for different policyholders
Understand the reasons for cancellations and non-renewals
Review the process and importance of underwriting renewals
Understand the importance for file audits
Conduct new procedure and guideline reviews
Updating files (photos, etc.)
Re-underwriting your book of business