2019 Year In Review

SERVICE. ADVOCACY. INTEGRITY

2019 REPORT

YEAR IN REVIEW A LOOK AT WHERE WE'VE BEEN AND WHERE WE'RE GOING NEXT

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FAIA 2019 YEAR IN REVIEW

WORDS FROM THE CHAIR As your chair for the 2019–2020 year, I have the honor of sharing our success from the past year and helping to forge the path for the future. 2019 was an amazing year for our association, with major milestones in our legislative advocacy, our education efforts, and our annual convention.

Agents realize that our industry is changing rapidly, and part of that evolution has been historic levels of mergers and acquisitions. Still, FAIA’s membership remains very strong and our association has never lost sight of those we serve: you, independent agents.

For over 20 years now, no one has been a more dedicated and fierce advocate for independent agents in Florida than Jeff Grady. Jeff has put our members and our organization first, and his leadership has helped us weather many storms, both literally and figuratively. Because of Jeff's leadership, our organization is strong and poised for success in 2020 and beyond.

This will be Jeff's last year as president and CEO of FAIA. Many of us have grown up in this industry with Jeff at the helm of FAIA, and I know I'm not alone in saying he will be missed.

At the start of our new fiscal year in September, Kyle Ulrich will step into the role of president and CEO. I, along with our entire board of directors, have the utmost confidence in his ability to lead our organization into this next chapter.

I look forward to the privilege of serving you in the months ahead. Thank you for your membership and, of course, your continued support of our great association.

BRENDAN LYNCH Chair

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FAIA 2019 YEAR IN REVIEW

THE BIG PICTURE

In 2019, FAIA maintained a strong member count in spite of recent mergers and acquisitions. FAIA remains among the largest agents associations in the U.S. and we are proud to serve members as a strong advocate, and a vital business partner.

The Florida Association of Insurance Agents is a nonprofit state trade association of insurance agencies affiliated with the Independent Insurance Agents and Brokers of America, Inc. The association's wholly-owned subsidiary, FAIA Member Services provides products and services to agencies as a benefit of membership.

Our mission is to serve the needs of Florida insurance agents and consumers by promoting a healthy and competitive insurance environment.

This year we served our members through advocacy in the Legislature, continuing education, professional development, networking, and exclusive member benefits.

Working for Florida's independent agents since

1904

TOTAL RESERVES

While there are many ways to measure the financial health of an organization, the growth of FAIA's total reserves over the last decade speaks volumes. For more detail, read our 2019 Condensed Consolidated Financial Statement.

$15,000,000

$10,000,000

$5,000,000

$0

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

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FAIA 2019 YEAR IN REVIEW

MEMBERSHIP Our organization is strong because our membership is strong. In 2019, we maintained the largest agency membership count in the state and among all Big "I" state associations.

We added 88 new agency members for an annual total of 1,996 members, and we added eight new associate members for a total of 310 associates. This year, we retained 95 percent of our members, maintaining a retention rate above 94 percent over the past five years.

1,996

310

94%

Agency member locations

Associate members

Membership retention rate over the past five years

ADVOCACY FAIA is the front line guardian of independent agents' interests in the Legislature, and the work our team championed in 2019 will impact the industry for years to come.

During the 2019 Legislative Session, FAIA advocated for and helped pass legislation: to curtail assignment of benefits fraud and abuse for property insurance claims;Â to eliminate the notary requirement for signature on workers compensation applications; and to expand the availability of multi-policy discounts when the same agent is servicing both policies.

FAIA 2019 YEAR IN REVIEW

YOUNG AGENTS COUNCIL FAIA's Young Agents Council is dedicated to fostering a supportive environment for young insurance professionals who are committed to growing their careers and their communities. In 2019, the Young Agents Council hosted the fifth annual Sales & Leadership Conference in Tampa, bringing together 189 agents for two days of professional development and leadership training.

As part of the 2019 Political Summit InsurPac-AThon, young agents raised $14,000 for IIABA's political action committee. The 50 YAC members in attendance also participated in a risk management tour of FSU's Doak Campbell Stadium and heard from Florida Insurance Commissioner David Altmaier.

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261

Young agent members across the state

$10,750 in school supplies, collected and donated to children throughout the state

$150,000 donated to Folds of Honor since 2010, with over $15,000 raised in 2019

FAIA 2019 YEAR IN REVIEW

FLORIDA'S FUTURE INSURANCE LEADERS

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Evan Beeh, Markel Specialty Commercial Crystal Callahan-Estes, CIC, CPIA, Brown Insurance & Financial Brian Chapman, Jr., CLU, State Insurance Agency Will Croley, Douglas M. Croley, Inc. Jennifer Hightower, BRP Ryan Insurance, LLC Collin J. Kostiha, Hugh Cotton Insurance Kevin D. Kouwenhoven, TGG Financial Services, Inc. dba Harry Levine Insurance Agency Florida's Future Insurance Leaders is a leadership Karina Paola Lobo, Kingdom Tree immersion program designed to attract high caliber Insurance Group agents and help them develop through education Josh Niesman, Safepoint and mentorship to become future leaders in the Trey Sinclair, Wells Insurance Agency, insurance industry and their community. In 2019, Inc. the program graduated a new class of eleven Michelle Leigh Woodham, Trout & leaders who will no doubt continue to propel the Leigh Insurance, Inc. Associate members. insurance industry into the future.

Melissa Champany, FFIL staff liaison

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FAIA 2019 YEAR IN REVIEW

CONVENTION Each year, FAIA's Board chair helps to select the theme for our annual Convention and Education Symposium. In 2018—2019, Chair Anthony DuBose brought his passion for his alma mater, the University of Alabama, to last year's theme, "The Tide is Changing." Little did he know how much that theme would mean to him personally, as the Panama City agent overcame the incredible challenges of Hurricane Michael during his service as FAIA's chair.

25% of 2019's convention attendees were there for the first time

BY THE NUMBERS 1,711

ATTENDEES

426

FIRST TIME ATTENDEES

312 0

EXHIBITORS 500

1,000

1,500

2,000

FAIA 2019 YEAR IN REVIEW

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EDUCATION FAIA launched the first state-sponsored insurance education program in 1937 and has been leading the way ever since. FAIA's programs—from continuing education to prestigious professional designations—are nationally recognized for the quality of curriculum and instruction, and they are offered to match member needs, schedules, and budgets.

In 2019, our education team performed in-house and web-based CE training for more than 6,200 agents and industry personnel. We conducted ten first-to-market webinars/webcasts, responding to current changes in the marketplace and providing members with timely information to be better advocates for their clients.

In September, Florida was the first state to earn Diamond Elite recognition from the Big "I" for Excellence in Insurance Education. After achieving 10 years of Diamond recognition, we're proud to continue our tradition of excellence. Dave Newell accepted the award as part of the Big "I" Education Convocation in Savannah.

6,200 agents and industry personnel received in-house and web-based CE training

According to Wikipedia, an annual report is a comprehensive report on a company's activities throughout the preceding year.

FAIA 2019 YEAR IN REVIEW

WORKFORCE DEVELOPMENT The Florida Department of Economic Opportunity estimates that, on average, the insurance industry will add 1,887 new jobs a year through 2026, and we’ll need to replace more than 5,270 positions left open by retiring workers over the same time frame. Expanding the pipeline of qualified applicants is essential to growing our industry.

In 2019, FAIA provided support to Risk Management and Insurance programs in eleven different state colleges. Additionally, we co-hosted networking events at six colleges to connect the local insurance community with currently enrolled students. We're looking forward to bringing on another four colleges in the near future.

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The Good Works Fund, a sustaining gift program with our insurance carrier partners, was established to keep this great work going. Seven companies executed gift agreements for a total pledge of $175,000.

We also have added four additional donors with five-year commitments: Thank you to AmWINS, Cabrillo Coastal, Southern Fidelity, and Heritage Property & Casualty.

$175,000 pledged to the Good Works Fund to support insurance programs in higher education

FAIA 2019 YEAR IN REVIEW

FAIA MEMBER SERVICES FAIA Member Services adds value to membership by offering best in class professional liability coverage, market access, and a suite of exclusive products and services through our Preferred Provider program. Our goal is to be independent agents' best business partner.

In 2019, we rewarded members for taking advantage of our products and services by delivering a total of $179,000 in utilization bonuses to 521 member agencies across the state. This past year FMS has paid more than $9.5 million in commissions to agents.

We also maintained a $9 million professional liability book of business and the RLI umbrella program issued 3,735 new policies totaling nearly $2.2 million in new premium, a 45 percent growth over 2018.

INDEPENDENT MARKET SOLUTIONS Independent Market Solutions (IMS) provides market access through association membership.

The program helps agents who are unable to secure company appointments for any number of reasons grow their business through competitive commissions and a clear pathway to direct appointment. In 2019, IMS expanded to operate in 14 states and added three new carriers for agents to access.

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$179,000 total amount of utilization bonuses awarded to member agents across the state

Currently, Florida agents have access to the following carrier partners: Personal Lines American Traditions Insurance Co., Avatar Insurance, Cypress Property & Casualty Insurance, Heritage Insurance, MetLife Auto & Home, Swyfft, National General, United Property & Casualty Insurance, and Universal North America Insurance Co. Commercial Lines Attune, FHB Builders Risk Solutions, Florida Home Builders Insurance EDGE (general liability), MetLife Commercial, National General, and RMS Hospitality

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FAIA 2019 YEAR IN REVIEW

LOOKING AHEAD In 2020, we're going to be working as hard as ever to be your best advocate and business partner.

We're (re)launching IntellAgents to bring you datadriven insights about your agency, lining up new preferred partners and markets, and gearing up to protect the interests of independent agents in the 2020 legislative session.

In 2020, we'll be recognizing the retirement of FAIA's president and CEO of the last 22 years, Jeff Grady. (Join us in wishing him well on his next adventure by sending a note.) In September, we'll welcome FAIA's new leader, Kyle Ulrich, and together with all of you, begin a new chapter in the history of your great association.

2.3.20

2.4.20

3.26.20

6.10.20

8.5.20

8.31.20

116th Annual Convention

Summer Leadership Conference

Young Agents Council Political Summit

Capitol Days

Sales and Leadership Conference

Jeff Grady's last day as president &CEO of FAIA