2021 Year in Review

FAIA 2021 YEAR IN REVIEW

PAGE 1

2021 REPORT

SERVICE. INTEGRITY. ADVOCACY. INNOVATION.

FAIA 2021 YEAR IN REVIEW

PAGE 2

A NOTE FROM FAIA’S PRESIDENT & CEO Looking back, 2021 was a year of many challenges, changes, and successes for FAIA. In September of 2020, I took over as President and CEO after over 20 years of leadership

by Jeff Grady. Also, much like your business, we cautiously resumed activities that the pandemic had previously impacted. COVID-19 has made all of us re-evaluate how we do business, and your association has learned valuable lessons to remain relevant and continue to deliver on the value proposition our members have come to expect.

Many of our events and education classes continued to be offered virtually, but 2021 also saw a return to a few in-person events.

Most notably, we safely hosted our annual Convention in June with around 200 exhibitors and over 2,000 total attendees. Other examples of FAIA’s continued enhancement of our member’s value proposition include: • Reinvented the Young Agents Council events and programming.

• FAIA Member Services (FMS) brought on two new preferred providers and one new insurance market.

• Our government affairs team was instrumental in the passage of property insurance reforms during the 2021 Legislative Session.

Speaking of property insurance, unfortunately, one thing that remained constant was the troubled homeowners market. Despite the Initial cap Legislature passing meaningful reforms meant to curb out-of-control litigation, the market continues to deteriorate, with companies sustaining record losses. As a result, agencies faced unprecedented challenges, working harder than ever to service clients while, at the same time, companies reduced capacity and compensation.

This past year has given me a new perspective and renewed appreciation for the resiliency and determination of independent agents.

Rather than complaining, you took action.

Countless agents got engaged in the political process for the first time to advocate for your policyholders and demand the Initial cap Legislature. It’s one of the many reasons your FAIA team is so proud to represent you.

The association has seen many changes over the past year, but the drivers of our success remain the same—strong leadership from our Board of Directors and volunteer leaders and a dedicated team that remains committed to serving our members. Much uncertainty remains regarding COVID-19 and our marketplace, but there are beginning to be signs of improvement. FAIA is committed to ensuring our members have all the tools necessary to navigate these challenging times while also preparing for the future.

This report is a collection of highlights, accomplishments, and successes from the past year. I am proud to say there were many.

Thank you for your membership, and we look forward to continuing to serve as your trusted business partner.

KYLE ULRICH, CAE

FAIA 2021 YEAR IN REVIEW

PAGE 3

THE BIG PICTURE

In 2021, FAIA saw continued growth in its member count even as the rest of the world continued to recover from challenges brought on by the COVID-19 pandemic. FAIA remains among the largest agents associations in the U.S., and we are proud to serve members as strong advocates and vital business partners.

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.

Working for Florida’s independent agents since

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.

TOTAL RESERVES

1904 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.

FAIA 2021 YEAR IN REVIEW

PAGE 4

MEMBERSHIP

ADVOCACY

Our organization is strong because our membership is strong. In 2021, we maintained the largest agency membership count among all Big “I” state associations.

With the state Capitol closed to visitors due to COVID-19 protocols, FAIA canceled Capitol Days and hosted Political Engagement Month, a series of virtual events in February leading up to the beginning of Florida’s 2021 Legislative Session. Political Engagement Month (PEM) included a legislative issues briefing from FAIA; conversations with Speaker of the House Chris Sprowls and Senate President-Designate Kathleen Passidomo; a message from Florida’s Chief Financial Officer Jimmy Patronis; and a property discussion with Insurance Commissioner David Altmaier, and Citizens President, CEO, and Executive Director Barry Gilway. In addition to hearing from those state leaders, FAIA also hosted virtual meetings with several key legislators. The virtual events gave members, including those who would’ve been unable to travel to Tallahassee, the opportunity to engage with elected officials, regulators, industry stakeholders, and other member agencies.

We added 191 new agency members for an annual total of 2,173 members. The association is also home to 296 associate members. This year, we retained 96 percent of our members, and over the past six years, we have maintained a retention rate above 94 percent.

In the past two years, we’ve added more than 335 new members. Because of this great growth, we wanted to create more resources for our new members and developed a new member welcome page and downloadable New Member Welcome Kit in 2021.

2,173 agency member locations

296 associate members

96%

annual membership retention rate

During the 2021 Legislative Session, FAIA successfully advocated for the legislative priorities outlined by our Board of Directors and Legislative Council. The association’s advocacy efforts contributed to the passage of legislation which: • reduces bi-annual CE update course requirements; • repeals the diligent effort requirement for the export of flood policies; • repeals Citizens’ disclosure requirement for export of personal residential property policies; • protects agents from solicitations for RCEs by lenders; • clarifies subrogation rights between commercial residential and unit owner policies; • updates surplus lines disclosure language; and, • provides COVID-19 liability protections for businesses following public safety health guidelines.

Most notable from the 2021 Legislative Session was FAIA’s success on property insurance reforms. The passage of SB 76 reformed the once “untouchable” one-way-attorney-fee statute for first-party lawsuits to disincentivize unnecessary and frivolous litigation.

FAIA 2021 YEAR IN REVIEW

PAGE 5

YOUNG AGENTS COUNCIL FAIA’s Young Agents Council (YAC) is dedicated to fostering a supportive environment for young insurance professionals committed to growing their careers and communities. Building on lessons learned in 2020, YAC continued to host a blend of in-person and virtual events in 2021, including eight monthly Ask Me Anything events featuring FAIA’s team, one YAC-exclusive CE class taught by AM Best, and three in-person events.

YAC was also recognized at the 2021 Independent Insurance Agents and Brokers Association (IIABA) National Young Agents Council Awards for its membership development and was inducted into the IIABA’s Hall of Achievement. At our 2021 Convention, Patricia Clawson Hamilton was awarded YAC of the Year and Olympus Homeowners Insurance Florida was awarded YAC Company of the Year.

More than

$175,000 donated to Folds of Honor since 2010, with over $16,000 raised in 2021

Patricia Clawson Hamilton was named YAC of the Year

$8,400

in school supplies collected and donated to underprivileged children in Florida Each July, YAC partners with four non-profit organizations across the state for a schoolsupply drive called SmartStart4Kids. Last year, YAC collected $8,400 in school supplies and donated them to children across Florida. Items collected ranged from scissors and crayons to backpacks and math supplies.

YAC has a long history of supporting the Folds of Honor Foundation, which provides scholarships to the children and families of America’s fallen and disabled veterans. In 2021, YAC raised more than $16,000 for Folds of Honor and, in total, has donated more than $175,000 to the organization since 2010.

Olympus Insurance was named YAC Company of the Year

FAIA 2021 YEAR IN REVIEW

PAGE 6

CONVENTION 2021 At the General Session, Cindy Webster was awarded the Mitchell Stallings Award, FAIA’s most prestigious award. With more than 40 years of experience in the insurance industry, Webster was recognized for her lifetime of leadership, integrity, and service to the industry. Webster served on the FAIA Board of Directors as chair in 2011 and has been active with IIABA as a member of the Virtual University Education & Research Committee and Diversity Council. She also created and chaired FAIA’s Pay It Forward Committee and

In June 2021, the FAIA’s annual Convention and Education Symposium returned in person.

Each year, FAIA’s Board chair helps to select the theme for our Convention and Chair Dan Alexander, a lifelong resident of St. Augustine, Fla., paid tribute to his hometown and the rebuilding brought on by the pandemic with the theme, “Waves of Change.” All told, more than 2,200 people attended last year’s Convention. While the event was smaller than in years past, we were thrilled to be back in person with our members after having to cancel our 2020 Convention.

MORE THAN

2,000 TOTAL ATTENDEES

425 First Time Full Registrants In 2021, we had 425 first-time attendees and new members.

That’s roughly 32% of the total attendees.

194 Booths in 2021 with

976 Exhibitors

FAIA 2021 YEAR IN REVIEW

PAGE 7 Committees, including the Finance Committee, the Legislative Council, the Cagney Board, the Good Works Fund, and the Pay It Forward Committee, but he has also spent his life serving his community as former mayor of St. Augustine and past president of the St. Augustine/St. John’s County Chamber of Commerce.

continues to actively dedicate her time to mentoring women in the industry, participating in local organizations, and being engaged with her community.

Also at Convention, Greg Baker received the Chairman’s Award from Chair Dan Alexander.

Baker, who served as FAIA chair in 1999 and was the 2013 Mitchell Stallings Award winner, was recognized for his outstanding leadership and continuous service to FAIA. Not only has Baker served on numerous FAIA

EDUCATION

ACADEMY:

ACADEMY:

FAIA launched the first state-sponsored insurance education program in 1937 and has been leading the way ever since. In 2021, FAIA’s education team continued to offer versatile, online options for continuing education. All class offerings, whether formerly on the road, in various locations around the state, on-site at an agency or company, or National Allianceaffiliated, were a part of the 2021 virtual lineup.

In addition to bringing existing courses online, FAIA’s education team offered the FAIA Academy: 2-20 Edition, a path to help prepare qualified 4-40 licensees to sit for their 2-20 exam in four weeks, as a direct response to an issue related to 4-40 licensees working remotely during the COVID-19 pandemic. FAIA also hosted an Academy to help agents to convert their 4-40 license to a 20-44. All told, 87 participants made their way through one of our virtual academies.

FAIA’s education team also held a Winter E-Summit in March. The three-day virtual conference featured five separate CE breakout sessions worth up to seven hours of CE. The event was free for all members and more than 680 individuals attended over three days, earning more than 3,500 free continuing education hours.

In October, Florida was the first state to earn Diamond Elite recognition three years in a row from the Big “I” for Excellence in Insurance Education. After achieving 12 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 Kansas City.

FAIA 2021 YEAR IN REVIEW

PAGE 8

WORKFORCE DEVELOPMENT

partner colleges. We are looking forward to bringing on another four colleges soon.

The Florida Department of Economic Opportunity estimates that, on average, the insurance industry will add 2,110 new jobs a year through 2029, and we’ll need to replace more than 6,400 positions left open by retiring workers over the same time frame. Expanding the pipeline of qualified applicants is essential to growing our industry.

We are able to continue this good work through the Good Works Fund, a sustaining gift program with our insurance carrier partners. Nine companies executed gift agreements for a total pledge of $192,500. Thank you to American Integrity Insurance Company, AmWins, Cabrillo Coastal, Florida Peninsula, Frontline, Pure, Safeco, Tower Hill, and UPC.

In 2021, FAIA provided support to 11 different state colleges. The financial support FAIA provides helps our partner colleges create scholarships for students to participate in Risk Management and Insurance programs. FAIA is also involved with advisory groups, on-campus events, and workforce development at

FAIA MEMBER SERVICES

state for taking advantage of our products and services.

Over the last 11 years, FMS has awarded more than $2 million in utilization bonus money to FAIA members.

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 partners.

Our professional and management liability team currently manages a $9.2 million professional liability book of business that includes 992 in-force policies. This past year, the RLI umbrella program wrote $2.6 million in new business premium. In total, we wrote over 16,000 policies with over $11 million in premium volume, ranking our book of business number one among the states in the Big “I” program.

In 2021, we paid members more than $217,000 in utilization bonuses to 533 member agencies across the

As FMS continues to expand its market access programs, FAIA members continue to earn more commission dollars.

These competitive programs have paid agents over $100 million in commission income over the past 11 years.

$217,000 total amount of utilization bonuses awarded to member agents across the state

FAIA 2021 YEAR IN REVIEW

INDEPENDENT MARKET SOLUTIONS We know market access is important to our members.

That’s why we’ve worked to make sure FAIA members have access to options including the following:

INDEPENDENT MARKET SOLUTIONS (IMS) Initially founded in Florida, Independent Market Solutions is now jointly owned by independent agent associations operating in 16 different states. Its mission is to perpetuate the independent agency system by providing greater access to competitive insurance markets and creating direct appointments when agents reach an established premium threshold.

Currently, Florida agents have access to the following carrier partners through IMS: Personal Lines: American Traditions Insurance Co., Avatar Insurance, Cypress Property & Casualty Insurance, Heritage Insurance, JIBNA, Foremost Signature Home & Auto, Swyfft, Monarch Insurance, National General, Progressive, Travelers, United Property & Casualty Insurance, and

PAGE 9

Universal North America Insurance Co. Commercial Lines: Attune, Coterie, National General, Normandy, Insurance Company, Progressive, RMS Hospitality, Scottish American, and V3 Insurance

BIG “I” MARKETS Big “I” Markets is an online market access system available exclusively to Big “I” members featuring no fees, no volume commitments, and competitive commissions.

FAIA members have access to a suite of top-tier products, including affluent homeowners, bonds, small commercial packages, habitational, and non-standard homeowners.

BIG “I” EAGLE AGENCY Big “I” Markets is an online market access system available exclusively to Big “I” members featuring no fees, no volume commitments, and competitive commissions.

FAIA members have access to a suite of top-tier products, including affluent homeowners, bonds, small commercial packages, habitational, and non-standard homeowners.