PIA Connection - A TRIA for Cyberattacks?

2019 V10

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

A TRIA FOR CYBERATTACKS? A FEDERAL BACKSTOP FOR INSURING AGAINST CYBERATTACKS IS PROPOSED.

PIA MEMBER BENEFIT SPOTLIGHT:

2019 Agency Marketing Guide page 21

AGENTS OF

FORWARD THINKING, FORWARD MOVING Staying ahead in a rapidly changing tech environment—that’s what independent agent Jeromy Huerta is all about. He appreciates Progressive for “always trying to stay relevant, making changes and adjusting to the times.” As a member of Progressive’s Tech Advisory board, Jeromy engages with teams who are shaping prototypes and identifying new ways to make Progressive’s quoting and servicing technology even faster and more intuitive.

Because he knows, the smarter we work, the further we’ll move forward, together.

AgentsofProgressive.com

JEROMY HUERTA HUERTA, HERITAGE INSURANCE | KENT, WA

Vehicle insurance is provided by Progressive Casualty Ins. Co. & affiliates. Home and renters policies are provided and serviced by affiliated and third-party insurers who are solely responsible for claims.

Prices, coverages, and privacy policies vary among these insurers.

2019 V10

PAGE 9

PIA IT-LAB FORMS

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS PRESIDENT Keith A. Savino, CPIA (NJ) keiths@warwickresource.com PRESIDENT-ELECT Dennis D. Kuhnke, CIC, CPIA (WI) dkuhnke@robertsonryan.com VICE PRESIDENT/TREASURER Wayne F. White, CPA, CPIA, PFMM (AR) wwhite1948@aol.com SECRETARY/ASSISTANT TREASURER Anthony Curti, CIC, LIC (MI) tcurti@acrisure.com IMMEDIATE PAST PRESIDENT Timothy G. Russell, CPCU (CT) trussell@therussellagency.com EXECUTIVE VICE PRESIDENT/CEO Mike Becker (PIA National) mikebe@pianet.org PUBLISHER/EDITOR-IN-CHIEF Ted Besesparis | tedbe@pianet.org MANAGING EDITOR Sade Hale | sadeha@pianet.org ADVERTISING DIRECTOR Alexi Papandon, CAE | alexipa@pianet.org GOVERNMENT AFFAIRS EDITOR Jon Gentile | jonge@pianet.org REGULATORY AFFAIRS EDITOR Lauren Pachman, Esq. | laurenpa@pianet.org MARKETING EDITOR Dana A. Anaman, CAE | danaan@pianet.org CONTRIBUTING EDITOR Patricia A. Borowski, CPIW PRODUCTION EDITOR Laurel Prucha Moran | laurelpm@blueroomstudio.com September 2019 PIA Connection is published ten times yearly by the National Association of Professional Insurance Agents.

419 North Lee Street Alexandria, Virginia 22314 ©2019 All rights reserved.

The information in this publication is general in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers.

All PIA members receive PIA Connection at the member subscription rate of $12.00 per year.

Non-member subscriptions available at $24.00 per year ppd.

PIA CONNECTION | www.pianet.com

For additional information on any of the subjects addressed in this publication, please access the PIA National website at www.pianet.com.

CONTENTS CONGRESS ACTS ON PIA-ENDORSED CANNABIS BILL NFIP Gets a 13th Short-Term Extension.

5

COVER STORY: A TRIA FOR CYBERATTACKS? 10-11 A federal backstop for insuring against cyberattacks is proposed.

NEWS BRIEF 6-7 Ohio Home and Auto Rates Well Below National Average…Don’t Wait for a Flood to Check Your Insurance Coverage…NAIC Warns Against ‘Free Meal’ Seminars… Disaster Funds Not Being Spent…

Aon: Market Is “Rapidly Hardening”… Canada to Flood Victims: Live Someplace Else…’100-Year’ Floods Can Now Occur Every Year…

PIA INSURANCE TECHNOLOGY LEADERSHIP ADVISORY BOARD (PIA IT-LAB) ORGANIZES CEOs, CIOs and senior executives of InsurTech firms and vendors met with PIA in a preliminary organizational meeting.

9

12-13

HONORING THE BEST: THE FALL 2019 PIA NATIONAL AWARDS Selective Named Company of the Year Connie Boyd Named Company Representative of the Year Tompkins Insurance Agencies Receives Social Media Award NEW PIA NATIONAL OFFICERS INSTALLED PIA Affiliates Honored for Membership Growth.

14

PIA SUPPORTS LONG TERM RENEWAL OF TRIA Submits testimony to Senate Banking, Housing and Urban Affairs Committee.

15

THE FUTURE OF INSURANCE – AGENTS & BROKERS Insurance futurologist David A. Smith assesses the potential of ongoing trends to impact agents and brokers in a rapidly changing insurance landscape.

17

THREE BRAND ELEMENTS THAT ATTRACT CUSTOMERS Peter van Aartrijk dissects the brand-building process as it applies to insurance agencies.

18-19

DEPARTMENTS PIA National Member Benefits . . . . . . . . . . .20 PIA Member Benefit Spotlight . . . . . . . . . . .21 PIA Marketplace . . . . . . . . . . . . . . . . . .21 PIA Affiliate Listings . . . . . . . . . . . . . . . .22

Cover image: iStockphoto/the-lightwriter

2019 V10 | 3

Congratulations Tompkins Insurance Agencies, Inc. on receiving the PIA National Excellence in Social Media Award!

This award honors an agency that uses nontraditional communication tools to effectively further the goals of the organization. An agency may use Facebook, YouTube, LinkedIn, blogs and other social media outlets to creatively promote programs, build upon an existing brand and introduce products and services to an expandable customer base.

The National Insurance Producer Registry (NIPR) is a proud sponsor of the PIA National Excellence in Social Media Award.

NIPR is a unique public-private partnership that supports the work of the states and the NAIC in making the producer-licensing process more cost-effective, streamlined and uniform for the benefit of regulators, the insurance industry and the consumers they protect and serve.

816.783.8467 | nipr.com/pia

CAPITOL HILL REPORT

By Jon Gentile Vice President, Government Relations PIA National

CONGRESS ACTS ON PIA-SUPPORTED CANNABIS INSURANCE BILL; NFIP GETS A 13TH SHORT-TERM EXTENSION

Jon Gentile is vice president of government relations of PIA National.

AC

L E PAR ER

PIA CONNECTION | www.pianet.com

NFIP EXTENDED TO NOVEMBER 21; CBO SCORE RELEASED FOR REAUTHORIZATION BILL On September 26th the U.S. Senate passed H.R. 4378, a short-term continuing resolution (CR) to fund the federal government until November 21 by a vote of 82–15. An extension of the National Flood Insurance Program (NFIP), set to expire September 30, was included in the bill. The House of Representatives already passed the bill earlier in September. The new expiration date for the NFIP is November 21.

This extension of the NFIP is its 13th since its last long-term reauthorization expired in 2017. Bipartisan legislation to provide a long-term reauthorization of the NFIP unanimously passed out of the House Financial Services Committee in June with PIA National’s input and support, but progress since then has stalled.

PIA National is continuing to work closely with policymakers to have that bill brought to the House floor as soon

as possible. Congress should not miss this bipartisan opportunity to reform the NFIP and reauthorize it on a longterm basis The Senate has been far less active than the House; no hearings or legislation have been considered in the Senate Banking, Housing and Urban Affairs Committee yet this year. In addition, several senators have introduced legislation that would harm independent agents, and PIA opposes that legislation.

PIA National will continue to advocate for a long-term reauthorization of the NFIP that recognizes the key role independent agents play in delivering the program to consumers.

TN

PIA National worked to advance legislation to protect insurance agents from prosecution for doing business with cannabis-related enterprises in states in which such businesses are legal.

In July, the Clarifying Law Around Insurance of Marijuana (CLAIM) Act was introduced with PIA’s full support.

The bill would provide a legal safe harbor for independent agents that engage in insurance-related transactions associated with cannabis businesses that are otherwise permissible under state law.

Thirty-three states have medical marijuana laws and eleven states have legalized it for recreational use. As such, it is common sense to protect insurance agents from prosecution for doing business with cannabis-related businesses in states where they are legal. Insurance agents are neither enemies nor supporters of cannabis itself; they simply provide insurance to legal entities.

Over the last several months, PIA National coordinated with other insurance trade associations to build support for this important bill. Our advocacy has paid off, as key parts of the CLAIM Act were merged with another bill, H.R. 1595, the SAFE Banking Act of 2019, which is meant to shield bankers from the same legal jeopardy concerning cannabis.

The addition of key provisions of the CLAIM Act in the SAFE Banking Act will prevent federal criminal

prosecution of and civil liability for agents, brokers, and insurers, and their officers, directors, and employees when engaging in the business of insurance in states that have legalized cannabis in some form.

The SAFE Banking Act (H.R. 1595), passed the House on September 25th in a bipartisan vote of 321–103. PIA National will continue our advocacy in support of this legislation in the Senate.

P I NN

THROUGHOUT THE SUMMER,

2019 PIA NATIONAL PINNACLE PARTNERS Encompass Insurance Encova Insurance Erie Insurance State Auto Insurance Companies

2019 V10 | 5

!

NEWS BRIEF

OHIO HOME AND AUTO RATES WELL BELOW NATIONAL AVERAGE

consumers many different

Americans (51%) don’t

“Decide before you go that

product options to consider

know that homeowners

you won’t give out any

when selecting coverage.”

insurance does not cover

personal information, sign

Ohio Insurance Direc-

Annually Ohioans pay

damage/loss caused by a

any documents, or make

tor Jillian Froment has

an average of $850 (9th

flood event. The survey,

any decisions while you’re

conducted online by The

there, the NAIC says in

Harris Poll among over

the new alert. “Leave your

2,000 U.S. adults age 18+,

checkbook at home and

found that nearly a third of

consider getting a second

Americans (31%) incor-

opinion.”

announced the average rate changes for the top 10 homeowners and private passenger auto insurance groups in Ohio. The average homeowners insurance rate change in 2018 was zero percent, while the average auto insurance rate increased 0.5 percent.

lowest) for homeowners insurance and $727 (14th lowest) for auto insurance compared to the national average, according to the most recent data from the National Association of Insurance Commissioners.

Ohio’s combined average premiums are $551 below

rectly think damage/loss covered by homeowners

DISASTER FUNDS NOT BEING SPENT

insurance, and about 1 in 5

As of June 30, the govern-

caused by a flood event is

(21%) are not at all sure if

ment had spent less than

the national averages.

the damage/loss is covered.

NAIC WARNS AGAINST ‘FREE MEAL’ SEMINARS

ums for homeowners and

DON’T WAIT FOR A FLOOD TO CHECK YOUR INSURANCE COVERAGE

The National Association

2018, federal data show.

auto insurance compared

A recent survey commis-

of Insurance Commission-

The U.S. Department of

to the rest of the country,”

sioned by the National

ers (NAIC) has issued an

Housing and Urban Devel-

Froment said. “Ohio has

Association of Insurance

alert warning consumers to

opment, which received

a robust and competitive

Commissioners (NAIC)

do their homework before

$37 billion—more than any

insurance market providing

found that about half of

attending a free financial

other agency—had spent

“Ohioans continue to benefit from some of the lowest insurance premi-

one-third of the $107 billion provided by Congress following the hurricanes and wildfires of 2017 and

seminar or meeting with

less than $75 million.

insurance or financial

That money is meant

experts—especially if free

to help cities and states

meals are offered.

rebuild after a disaster. It

“The offer of free meals,

is often used to fix roads,

door prizes, and/or free advice may lead you to attend a seminar when

drainage systems and other infrastructure, or to repair or elevate houses in low-

you wouldn’t otherwise,”

lying, vulnerable areas.

the alert states. “Some

Meanwhile, the number

invitations make you feel

of Americans with flood

it’s urgent to register due

insurance compared with a

to ‘limited space.’ A nice

decade ago has shrunk sig-

restaurant, an expensive

nificantly, and there are a

The National Association of Professional Insurance

meal, and a well-dressed

growing number of homes

Agents is proud to announce that we are now on

presenter may be impres-

being built in floodplains,

Instagram. Follow us for updates and behind the

sive, but it doesn’t mean

as many states have not

that what they’re selling is

imposed mandatory and

right for you.”

up-to-date building codes.

PIA NATIONAL IS NOW ON INSTAGRAM!

scenes looks at what we are doing! @pia_national https://www.instagram.com/pia_national/

6 | 2019 V10

www.pianet.com | PIA CONNECTION

!

NEWS BRIEF ‘100-YEAR’ FLOODS CAN NOW OCCUR EVERY YEAR

The latest report from Aon

Researchers at Princeton Univer-

indicates that although the

sity have developed new maps

insurance market remains

that predict coastal flooding for

generally resilient, industry

every county on the Eastern and

members must keep up with

Gulf Coasts, finding that 100-

a market that the report

year floods could occur annually

describes as rapidly harden-

in New England and every one-

ing. Aon’s “2019 Insurance

to-30 years along the southeast

Market Report” estimates

Atlantic and Gulf of Mexico

In response to rising costs of natural disasters,

that the global economic

shorelines.

Canadian officials are encouraging residents in cer-

cost of major wildfires,

tain areas to find another place to live and limiting

tropical cyclones and severe

financial aid after disasters.

thunderstorms totaled $225

iStockphoto/MarkRubens

AON: MARKET IS “RAPIDLY HARDENING”

CANADA TO FLOOD VICTIMS: LIVE SOMEPLACE ELSE

In Canada, homes in flood prone areas have been removed through mandatory buyouts, when they are accepted by homeowners. Residents who decide to stay are typically offered one more payment to rebuild, but no future financial assistance if a flood damages their property again.

In 2015, Canada made it harder for lower levels of

billion (adjusted for inflation) in 2018 and that the insured losses totaled $90 billion, an increase of nearly 50 percent compared with the annual average for the period of 2000 through 2017.

“The historical 100-year floods may change to one-year floods in Northern coastal towns in the U.S.,” said Ning Lin, associate professor of civil and environmental engineering at Princeton.

The study’s predictions are different than what else is currently available. For example, the new maps use the latest

2018 now stands as the sec-

climate science to look at how

ond-highest year on record

tropical storms will change in

in terms of economic losses

the future instead of what they

from catastrophes, and 2017

are right now, or even looking

still ranks as the costliest

backwards at previous storms,

year for such losses. Accord-

as federal disaster officials do

their own. “You can’t repeatedly go back to the tax-

ing to Aon, 2017-2018 was

to build their flood maps. These

payer and say, ‘Oh, it happened again,’” said Public

the costliest two-year period

data, in turn, are integrated with

Security Minister Ralph Goodale.

on record for insurers.

sea level analysis.

government to get federal money after disasters. The following year, British Columbia said flood victims who had chosen not to buy private flood insurance would be ineligible for government aid. This year the federal government went further still, warning that homeowners nationwide would eventually be on

Frank and Ernest is used with the permission of the Thaves and the Cartoonist Group. All rights reserved.

PIA CONNECTION | www.pianet.com

2019 V10 | 7

: E Y B D GOO MARRKKEETTININGG YS OOFF MA WAAYS OOLLDD W

: O L L E H PI A DMV

t, a oneirect Marketing Vaul D s A’ PI V: M D A s.

PI Introducing the tal advertising service gi di d an l ai m ct re ur di stop shop for all yo

Old Way • • • • • • •

Hire a designer to create your marketing pieces Take years curating your own prospect marketing list Spend hundreds on postage Print, bundle and deliver mail to multiple post offices Mail is delivered to mismatched prospects Increase your reach by placing ads in the newspaper Takes weeks or months to execute

New Way

• • • • • • • •

Use PIA-branded postcard templates or create custom pieces with the PIA DMV in-house team Filter customers by preferred demographics (age, gender, income, homeownership, and more!)

Deliver mail to every home and business on a postal route Or target customers based on a list you provide or purchase from the PIA DMV Customer service team prints, prepares the mailing, and ships directly to multiple post offices.

Digital ads delivered to mailed recipients’ digital devices Save money with low cost postage Quick, fast, and easy marketing

Find your next client and grow your business with the PIA DMV.

www.piadmv.com

PIA’s Direct Marketing Vault is made available to PIA members through the PIA Branding Program.

Funding for the PIA Branding Program is provided in part by PIA’s Pinnacle Partners.

8 | 2019 V10

www.pianet.com | PIA CONNECTION

PIA INSURANCE TECHNOLOGY LEADERSHIP ADVISORY BOARD ORGANIZES CEOS, CIOS AND SENIOR executives with more than two dozen InsurTech firms and vendors met with PIA leaders on September 20, 2019 in Orlando, in a preliminary organizational meeting of the PIA Insurance Technology Leadership Advisory Board (PIA IT-LAB). Keynote speaker for the meeting was insurance futurologist David A. Smith, Chief Executive of Global Futures and Foresight (GFF), a strategic futures research organization based in the U.K. PIA IT-LAB The PIA IT-LAB is an advisory board of agents, carrier technology leaders, solution providers, and industry thought leaders who can provide guidance and insights on the future of insurance technology. Included are experienced, hands-on executives who roll up their sleeves, with the power to drive programs within their organizations and the industry.

“As we start looking at perceived threats, we discover hidden opportunities that we may have missed with concerns about disruption,” said outgoing PIA National President and industry technology leader Keith A. Savino.

“Technology has always been a big plus for independent insurance agents, and it always will be. Technology has improved the businesses of agents who have embraced it, mastered it and used it to succeed.”

Preliminary objectives for the new group that were discussed during the initial meeting included action to: • Stimulate new ideas and collaboration that strengthen agents’ ability to compete using technology.

• Bring industry leaders together to advance PIA agents’ access to and adoption of technology.

• Work together with carriers and vendors on practical tools and PIA CONNECTION | www.pianet.com

Futurologist David A. Smith, chief executive of Global Futures and Foresight (GFF), addresses the inaugural meeting of the PIA Insurance Technology Leadership Advisory Board (PIA IT-LAB).

education to help agents move their technology capabilities forward.

• Provide the resources and platform to discuss timely topics, while doing so in an environment protected by anti-trust laws.

The group decided to take initial steps to officially bring itself into existence.

THE FUTURE OF INSURANCE Insurance futurologist David A. Smith, Chief Executive of Global Futures and Foresight (GFF), a strategic futures research organization based in the U.K., made presentations to the PIA IT-LAB, along with a meeting of The PIA Partnership and a PIA general session.

The presentation was entitled, “The Future of Insurance.” (see page 17) David is recognized as a leading strategic futurist who combines the experience gained from a 35 year IT, marketing and business career with strategic visioning to help organizations better prepare for the future. His career has spanned European and US corporations. He is the author of many works on embracing change and the drivers of change. Before establishing Global Futures and Foresight, an independent futures research firm, he created and ran the Unisys internal

Think Tank, The Global Future Forum.

Prior to this he was head of strategic marketing for their $2bn global financial services business.

David and his organization has been engaged by some of the largest and most prestigious firms from around the world including: The European Commission, NATO, BBC and financial services firms including HSBC, Lloyds/TSB, Atom Bank, Lloyds, RBS Insurance, More Than, e-sure, Travelers, Allianz, QBE and Lloyds syndicates, ACORD, along with many other prestigious firms including; CSC, Unisys, Cisco, Microsoft, Siemens, Deloitte, Ernst & Young, PWC, Bausch & Lomb, Linpac, Kraft, Heinz, John Lewis, Roche, Philips, Ogilvy etc. He is also a regular lecturer at business schools across Europe.

PIA’s InsureTech Showcase, held in April, was oversubscribed—demonstrating there is an appetite for more technology discussion and direction from PIA. The Association’s track record of practical solutions and leadership in education can help break down barriers to motivating agents to innovate.

The PIA IT-LAB also builds on the PIA Partnership model, where collaboration between carriers and PIA has proven successful.

2019 V10 | 9

A TRIA FOR CYBERATTACKS? EDITOR’s NOTE: This article is excerpted from an article from TechTank, a blog by the Brookings Institution that focuses in new developments in technology policy.

Reprinted with permission. Access the full article at: https://www.brookings.edu/blog/techtank/2019/09/27/ a-federal-backstop-for-insuring-against-cyberattacks/

THE EFFECTS OF WARFARE can be felt well beyond the battlefield. Businesses are interrupted, property damaged, lives lost—and those at risk often seek to protect themselves through insurance. The premiums that insurers charge, however, rarely account for the immense destructive capacity of modern militaries, making wartime claims a potentially existential threat to their fiscal solvency. For this reason, insurance policies routinely exclude “acts of war” from their coverage, leaving it to governmental authorities to decide whether to compensate the victims of such acts while focusing the insurance sector on other, more conventional risks. But what happens when the battlefield moves into cyberspace?

In 2017, the NotPetya cyberattack alone caused an estimated $10 billion of damage worldwide, including $100 million of damage to Mondelez International, a global food conglomerate.

But when Mondelez filed a claim for those damages, its insurer, Zurich International, denied them on the grounds that NotPetya was a “hostile or warlike action” by a “government or sovereign power” and thus excluded from the policy’s scope under its act of war exclusion. Mondelez responded by suing for breach of contract, putting it to the Illinois state courts to decide who committed this complex cyberattack and why. Hanging in the balance is not only Mondelez’s claim, but the extent to which the insurance industry can and will provide coverage for various major cybersecurity incidents—an issue of increasing significance to the entire U.S. economy.

The United States faced similar dynamics after the Sept. 11 attacks as the insurance industry wrestled with how to cover

10 | 2019 V10

By Aaron Klein and Scott R. Anderson

damages from catastrophic terrorism. A bipartisan Congress ultimately stepped in, creating a federal backstop for insurers facing such claims while foregoing the use of the act of war and other exclusions. That law, the Terrorism Risk Insurance Act (TRIA), has ensured the availability of terrorism-related insurance coverage while providing the private insurance industry with certainty regarding the outer limits of the financial risks it is undertaking.

As Congress weighs renewing TRIA, which expires at the end of 2020, it should seriously consider whether the federal government should play a similar role in stabilizing the insurance industry’s approach to cyberattacks, thereby ensuring substantial coverage before a major cyberattack forces the question.

WAR RISK EXCLUSIONS Exclusions for acts of war and related incidents have been a feature of insurance contracts for more than a century, and are designed to protect insurance providers from the crippling financial consequences of large-scale military action. The outbreak and scale of damage caused by armed conflicts can be both unpredictable and severe, making it difficult for providers to set premiums that cover their eventual losses. Many conventional insurance policies just exclude war-related claims. Some providers offer more limited supplemental “war risk” policies that cover these risks in contexts where they are of particular concern, such as in the aviation and maritime industries.

INSURANCE AND CYBERWARFARE Cyberactivity is a predictable next step in this evolution. As its role in the global economy has grown, so has the demand for related insurance coverage: Direct written premiums for cyberrelated coverage reached $2 billion in 2018, twice the amount written in 2015. Many general insurance policies now include coverage for some damages arising from certain cybersecurity incidents, such as data loss. At the same time, governments have increasingly used cybermeasures as tools of national policy, including as part of military operations. And the common use of terms like “cyberwar” and “cyberattack” raise questions of whether the rules of warfare, including the act of war exclusion, might apply, even if the cyberactivities at issue have little to do with any conventional armed conflict.

The United States wrestled with a similar scenario following the Sept. 11 attacks. While there were initially widespread concerns that insurance companies would attempt to use the act of war exclusion to avoid covering individuals claims’ for damages arising from the attacks, the insurance industry quickly disavowed any such intent. As insurance policies came up for renewal, however, providers began to introduce new terrorism-specific exclusions out of fear that more catastrophic www.pianet.com | PIA CONNECTION

terrorism was on the horizon and had the potential to bankrupt the industry. Simultaneously, the demand for terrorism insurance increased sharply as businesses sought to mitigate terrorism risks. The result was a market failure that, in the words of then-Treasury Secretary Paul O’Neil, “threaten[ed] [U.S.] economic stability” if left unresolved—and thus required a federal response.

That response was TRIA, which Congress enacted into law with overwhelming bipartisan support in 2002. Through TRIA, the federal government committed to afford insurance providers with a backstop against large-scale, catastrophic losses from eligible acts of terrorism, curbing the outer limits of these providers’ liability while requiring that they take a smaller, first-loss position. This backstop only applied to claims that met certain loss thresholds and were consistent with a statutory definition for terrorist attack that excluded “acts of legitimate warfare,” and made the secretary of the Treasury Department the arbiter of whether terrorism would be excluded from TRIA-backed insurance coverage as acts of war. In exchange, Congress obligated providers of TRIA-eligible insurance to expressly include terrorism in the scope of their policies, thereby preventing market disruptions and ensuring broad availability.

Originally seen as a temporary solution, TRIA has been extended several times due to ongoing concerns that insurance markets have not yet found ways to adequately price coverage for catastrophic terrorism. This reflects a seemingly enduring political consensus that the federal government has a role to play in providing a backstop against losses from terrorism. Yet it has also never been used.

again later this year. Most expect it to do so. Congress should use this opportunity to openly consider similarly modernizing the approach to insuring against cyberwarfare. While there are trade-offs—including increased federal involvement in an area generally left to the states, more financial risk to taxpayers, and possible tensions between the federal government’s certification role and other policy responses it may consider—providing a federal backstop for insurers with clear guidelines as to when coverage should be provided.

Having this debate and establishing a framework before the United States faces a catastrophic cyberattack puts us ahead of the curve. We may not be able to predict when or where the next cyberattack will come, but we can establish a system to ensure Americans have adequate protection when it arrives.

Aaron Klein is policy director for the Center on Regulation and Markets; and Scott R. Anderson is Senior Editor, Lawfare, both of the Brookings Institution.

Help Build Your Family’s Financial Future With

PIA Trust Insurance Plans INSURANCE PLANS DESIGNED WITH LOCAL AGENTS IN MIND As a PIA Member* serving Main Street America, you and your employees have access

A TRIA FOR CYBER TRIA could serve as a valuable model for bringing stability to cyberinsurance markets. From an insurance perspective, cyberattacks share many similarities with terrorism, including their unpredictability, correlatedness, and potentially large-scale damages. A TRIA-like hedge against catastrophic cyber-related losses could help ensure that insurance providers remain willing to cover losses from cyberactivities even in the face of major cyberattacks—something that is likely essential to the stability and growth of our increasingly digital economy.

The certification process would place the federal government in the role of determining whether cyberattacks qualify as acts of war outside the scope of the program and related insurance policies. This would reduce the uncertainty surrounding when the exclusion might apply and place the burden of investigating and attributing cyberattacks on the federal law enforcement and intelligence agencies best equipped for that mission.

Congress will start the debate over whether to extend TRIA PIA CONNECTION | www.pianet.com

to a variety of high-quality, competitively priced insurance plans.

Plans available include:  Basic Term Life**  Voluntary Term Life  Short & Long Term Disability PIA SERVICES GROUP INSURANCE FUND  Dependent Term Life  Business Overhead Expense  Hospital Indemnity  Accidental Death & Dismemberment

For additional information, contact your local PIA Affiliate or call the Plan Administrator at 1-800-336-4759.

Information also available on-line at www.piatrust.com. *PIA National membership, when required, must be current at all times. **Only available if 100% employer paid and if the employer and 100% of the employees enroll.

No medical underwriting necessary up to guaranteed issue limits.

Policies or provisions may vary or be unavailable in some states. Policies have exclusions or limitations which may affect any benefits payable. All coverages underwritten by Unimerica Insurance Company, Association Administrative Address, P.O. Box 17828, Portland, ME 04112-8828.

Insurance Program Administered by Lockton Risk Services.

2019 V10 | 11

Honoring the Best: The Fall 2019 PIA National Awards SELECTIVE INSURANCE NAMED PIA NATIONAL 2019 COMPANY OF THE YEAR PIA NATIONAL HAS NAMED SELECTIVE INSURANCE

the recipient of its prestigious 2019 Company Award of Excellence. The presentation was made on September 20, 2019 at a gala ceremony held in conjunction with PIA’s Board of Directors meeting in Orlando.

“This is our Association’s highest annual company honor,” said PIA National President Keith A. Savino, in presenting the award.

“Selective’s only distribution channel is through the independent agent system. That means they are 100% vested in making sure we are vibrant and healthy.”

Selective Insurance is an active member of The PIA Partnership, PIA’s company council, a group of insurance companies that works closely with PIA National to conduct research and develop tools and resources designed to benefit professional independent insurance agents.

The PIA National Company Award of Excellence honors a company for its commitment to PIA, to the American Agency System and to furthering the interests of professional insurance agents by creating a better business environment.

“We are immensely honored as an organization to get this award,” said John Bresney, Executive Vice President, Chief Information Officer, Selective Insurance, in accepting the award. “We are proud of the long relationship we’ve had with PIA, and our shared success with our independent agency partners who are a key component of our unique employee-agent-customer paradigm. Since our founding more than 90 years ago, we remain solely committed to the agency distribution channel—everybody at Selective lives, breathes and looks for opportunities to make it easy for our agency partners to do business with us as we work to deliver unique solutions to our shared customers. On behalf of everyone at Selective, thank you for awarding Selective with the Company Award of Excellence.”

This is the second time that Selective Insurance has received the PIA National Company Award of Excellence; the first was in 2004.

12 | 2019 V10

www.pianet.com | PIA CONNECTION

CONNIE BOYD NAMED 2019 PIA NATIONAL COMPANY REPRESENTATIVE OF THE YEAR PIA HAS NAMED CONNIE Boyd of the Donegal Insurance Group as its 2019 Company Representative of the Year. The presentation was made on September 20, 2019 in Orlando.

“Connie works with independent agents and agencies, helping them with promotion, marketing and products to build and maintain profitable books of business, said PIA National Presidentelect Dennis Kuhnke in presenting the award. “Connie has been active in the insurance industry and in her community; and the fact that Connie was an agent for a number of years helps her better relate to and understand both agents and CSRs.”

The criteria used to select the PIA National Company Representative of the Year includes professional experience, assistance given to agents, technical knowledge and demonstrated awareness of industry problems and market conditions. Their contributions to the industry through participation in PIA and other insurance organizations are also considered, as are their contributions to serving the public and their community.

Connie Boyd has earned the ACSR, AIAM and CPIW designations. She has also taught CE classes for PIA of Virginia & DC. “Connie has been our marketing representative for many

years with the Donegal Insurance Group,” wrote John G. Lee, principal of Lee-Curtis Insurance Service and a past PIA National president. “Her positive attitude is always a delight when she is in the office and her calm professional demeanor is one that employees enjoy working with.”

“When I joined the PIA 15 years ago, I had no idea how rewarding it would be,” said Boyd, accepting the award. “It is a family, there is a close relationship. I am also blessed because I am doing something that I love.

This truly is an honor, thank you very much.”

TOMPKINS INSURANCE AGENCIES RECEIVES THE 2019 PIA NATIONAL EXCELLENCE IN SOCIAL MEDIA AWARD TOMPKINS INSURANCE AGENCIES, INC. OF BATAVIA, NEW YORK has received the 2019 Excellence in Social Media Award from the National Association of Professional Insurance Agents (PIA). The award was presented September 20, 2019 at a gala ceremony held in conjunction with PIA’s Board of Directors meeting in Orlando.

The 2019 PIA National Excellence in Social Media Award was sponsored by the National Insurance Producer Registry (NIPR).

“One of the first groups to fully embrace social media, a few years ago, was independent insurance agents,” said Lauren G. Pachman, Esq., PIA National counsel, director of regulatory affairs and a Board member of NIPR. “In fact, PIA National was one of the first groups anywhere to bestow an award for excellence in social media, beginning in 2010.”

“Since that time, we’ve seen an increase in the sophistication—and the positive results—of the use of social media marketing by independent insurance agencies,” Pachman said. “Today, we honor a PIA agency that has taken agency social media marketing to the next level. The winner of the 2019 PIA National Excellence in Social Media Award, Tompkins Insurance Agencies.”

PIA CONNECTION | www.pianet.com

2019 V10 | 13

NEW PIA OFFICERS INSTALLED NEWLY ELECTED NATIONAL OFFICERS OF THE National Association of Professional Insurance Agents (PIA) were installed during the organization’s September 21, 2019 Board of Directors meeting held in Orlando, Florida. Each of the officers will serve one-year terms that begin on October 1, 2019 and run through September 30, 2020.

As of October 1, 2019, Dennis D. Kuhnke, CIC, CPIA of Milwaukee, Wisconsin becomes President; Wayne F. White, CPA, CPIA, PFMM of Conway, Arkansas becomes Presidentelect; Anthony “Tony” Curti, CIC, LIC of Bloomfield Hills, Michigan becomes Vice President/Treasurer; Gerald F. Hemphill, CIC, LUTCF of Richmond, Virginia becomes Secretary/Assistant Treasurer; and Keith A. Savino, CPIA, of Mahwah, New Jersey becomes Immediate Past President.

PIA NATIONAL HONORS AFFILIATES FOR MEMBERSHIP GROWTH PIA NATIONAL HAS HONORED ELEVEN STATE and regional PIA Affiliate associations for membership growth.

The 2019 PIA Membership Growth Award was presented to PIA Affiliates who attained net growth as of our last official count earlier this year. The presentations were made September 20, 2019, during an awards ceremony held in conjunction with PIA’s Board of Directors meeting in Orlando.

“There are many reasons agents belong to PIA,” said PIA National President-elect Wayne White, in presenting the awards. “Some belong for access to excellent products and services. Some for education. Some for networking. Some to support our advocacy. And some agents join PIA to give back, to do good, to contribute to the well-being of the profession and the industry that has been so good to so many of us.”

“There’s no ‘wrong’ reason to belong to PIA. All agents are welcome here,” White said.

PRESIDENTIAL CITATION— PIA National President Keith Savino presented a special Presidential Citation to Rick Pierce, who for the past four years has been National General Insurance’s representative to the PIA Partnership.

14 | 2019 V10

The PIA Affiliate organizations honored were: • Maine Insurance Agents Association • Insurance Agents & Brokers of Maryland Inc. • Michigan Association of Professional Insurance Agents • Missouri Association of Insurance Agents • PIA of Nebraska and Iowa • PIA of North Dakota • PIA of Puerto Rico and the Caribbean • PIA of South Carolina • PIA of Tennessee • Texas Professional Insurance Agents • Utah Independent Agents

www.pianet.com | PIA CONNECTION

PIA SUPPORTS LONG TERM RENEWAL OF TRIA FOLLOWING THE TERRORIST attacks of September 2001, Congress passed the Terrorism Risk Insurance Act (TRIA) to help protect America and get the economy on the road to recovery by guaranteeing that the federal government would provide a financial backstop in the event of a terrorist attack.

Sources say it is unclear when and in what form renewal legislation will be introduced in Congress. The insurance sector wants to avoid a temporary lapse in the program, which expires at the end of 2020.

The program [the Terrorism Risk Insurance Program (TRIP)] was renewed three times: in 2005, 2007, and most recently Jan. 12, 2015 via the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA). PIA took an active role in advocating the creation of TRIA in 2002, and has strongly supported all of its subsequent extensions by Congress.

On June 18, 2019, PIA National submitted testimony to a hearing of the Senate Banking, Housing and Urban Affairs Committee supporting a long-term renewal of the program.

The Terrorism Risk Insurance Act (TRIA) and its successors have been an important support to efforts to supply terrorism insurance through the private market. Since the program was enacted, the percentage of companies purchasing terrorism insurance has risen to 80 percent, and the price of coverage has fallen more than 80 percent. The program expires at the end of 2020, but efforts are already underway to convince Congress of the need for long-term renewal.

Aaron Davis, managing director for Aon Property Broking, says action on TRIA may have slipped down the federal legislative agenda into next year, possibly the second quarter. A report

on the program by the Treasury’s advisory committee is due in June 2020.

Risk managers continue to be supportive of the program.

James Lynch, chief actuary and senior vice president of research and education for the Insurance Information Institute, also says TRIA has helped foster a strong commercial marketplace. As the program faces renewal, the National Association of Insurance Commissioners (NAIC) and others are pushing for an extension of seven to 10 years.

The insurance industry group the Insurance Information Institute (I.I.I.) recently compared the current insurance climate with the two periods post 9/11 when there was no federal backstop and concludes that while the

help ensure economic stability through the availability of terrorism coverage for commercial policyholders, lenders, builders, and the businesses that operate in urban centers and other areas prone to a terrorist attack.”

2020 REAUTHORIZATION PIA National urges Congress to pass legislation providing for a long-term, straightforward reauthorization of the TRIP [TRIA]. Any lapse in the program could cause serious damage to the United States economy and our national security. Congress should provide a long-term extension of TRIA, to give certainty to policyholders and the markets.

This program has succeeded due to, in part, industry wide participation,

“CONGRESS SHOULD PROVIDE A LONG-TERM EXTENSION OF TRIA, TO GIVE CERTAINTY TO POLICYHOLDERS AND THE MARKETS.” private market for terrorism insurance has grown, there are doubts whether the industry can write terrorism insurance without the backstop.

“State insurance regulators have not seen evidence to suggest that the insurance marketplace is capable or willing to voluntarily take on a substantial portion of the risk of providing terrorism risk coverage,” said the National Association of Insurance Commissioners in a May 2019 policy brief. “TRIA helps fosters the existence of a broader market for risks that would otherwise be largely uninsured, or more likely, borne by taxpayers.”

“The NAIC recommends prompt Congressional action on a long-term TRIA reauthorization of 7-10 years to

including participation by independent insurance agents. The program should be kept at a point where all companies, small and large, have an opportunity to participate. Increases to cost thresholds, including higher deductibles or a higher share of losses over deductibles, could make this program cost-prohibitive for many insurers, and PIA National cautions against the inclusion of such provisions.

TRIA fills a large void in the market and provides a level of certainty in an uncertain time. It is critical that Congress extend the TRIA before it expires on December 31, 2020. PIA supports an extension of the program well before its expiration to provide stability to policyholders and the markets.

NAIC TRIA HTTPS://WWW.NAIC.ORG/DOCUMENTS/GOVERNMENT_RELATIONS_TERRORISM_RISK_INSURANCE.PDF PIA CONNECTION | www.pianet.com

2019 V10 | 15

LOOKING FOR A NEW HOME FOR YOUR BOOK OF BUSINESS? PIA MARKET ACCESS CAN HELP: If you have lost a direct appointment for failure to meet the minimum premium requirement If a carrier has pulled out of your state and you need a new carrier If you would like to consolidate your existing business into a single source If you are seeking more competitive offerings If you need help with servicing your book of business

PIA MARKET ACCESS CAN HELP REMARKET, SHOP POLICIES, OR ASSIST WITH BOOK ROLLOVERS. With access to more than 50 national and specialty carriers plus real-time, online rating for personal and commercial lines from a number of admitted “A” or better-rated companies.

Retain ownership of your book of business • No exit fees • Low monthly access fees • Higher PIA member commission rates

Sign up to begin your two m onths FREE!

To learn more, visit

PIAMARKETACCESS.COM powered by

*Current PIA membership required. Available in the 50 U.S. states and DC. Carrier availability varies by state. Provided through partnership with InsureZone.com of Texas, Inc.

THE FUTURE OF INSURANCE – AGENTS & BROKERS

By David A. Smith

INSURERS ARE GENERALLY aware of the challenges and opportunities inherent in the unfolding changes impacting the industry. 75 percent of insurers, for example, believe that industry boundaries will dramatically blur due to the IoT and other platforms. This will shift sources of competition and potential collaboration as coverage evolves into a broader value chain containing new services, products and risk pools.

The impact is likely to be felt differently, according to the organization’s size, the specific sector they operate in and their role. The one commonality is that all sectors, and roles within them need to take-action now. Agents and brokers are not exempt from this.

A failure to transform now, starting with the underwriting process, will guarantee a death by a thousand cuts as a horde of networked insurtechs coalesce, all focusing on doing one thing better than the incumbent. The future ecosystem requires new roles, skills and mentalities: in other words, a complete transformation from the traditional approach.

AGENTS & BROKERS Artificial Intelligence (A.I.) usage could improve the workplace conditions of agents and brokers. Research by Ecclesiastical in 2018 suggests that brokers are more likely to suffer stress than other financial sector workers, while 56 percent of brokers also expect stress levels to rise over the next three years.

Given the low percentage of millennials—4 percent aiming for an insurance career, an improved workplace experience would seem vital in ensuring there is enough talent in the pipeline.

Other technologies (than A.I.) will reinforce a change in agents’ and

PIA CONNECTION | www.pianet.com

brokers’ roles. The rise in volume and velocity of consumer data and the ability of predictive and prescriptive analytics to provide insight into this is critical for future agencies. They must also understand how consumer technology is shifting expectations, while the same technologies allow players from adjacent industries to disrupt and reshape the traditional insurance value chain.

Set against this large-scale picture of change is the aging of insurance agents themselves. For example, in the US, the average age of agents is 56 and recruiting the next generation has proven challenging. The potential lack of digital talent willing to countenance an insurance career forms, perhaps, the greatest risk of long-term disintermediation for agents and brokers; technology will likely find a way when humans are unwilling.

THE FUTURE ROLE There is likely no-one-size-fits all role that future agents and brokers will ascribe to, but rather a multitude depending on market, geography, size and a host of other issues—not least concerning other ecosystem players’ evolving roles. Some agents may merely see a technologically driven efficiency shift to which they adapt, while others will see what it means to be an insurance agent or broker change more profoundly. For example, one possibility is that we ‘...see blurred lines whereby traditional independent agencies will become insurance agency come solutions providers.

In this vision, increasing consumer expectations allied to innovation in the insurance product space leads to a growth in ancillary insurance partners, leading the agency to ‘...almost becomes a brand-new ecosystem—this

multi-disciplinarian shop.’ The alternative to ‘developing’ their own system is for brokers or agents to participate in other emerging ecosystems, even those that appear to be redefining what it is that an agent or broker does.

To this end, agents ‘...have got to start to evolve into a sales-distribution, community-based, brand-based, both digitally and out in the community. The lines between agency types is also likely to blur, with pure-play brick-and-mortar agencies becoming less prevalent: how we do things will become just as important, if not more, than what we do.

Brokers and agents will also require a greater technological grounding. This starts with an understanding of where and how technology can be used to engage the customer as part of building a more consumer-centric service. The more agencies develop skills that leverage tech the more room—and ability— they will have to advise their customer around the moments that matter.

It is also worth considering how agencies can attract the future of talent, as well as the nature of that talent. It is likely that a fully digital and intelligent workplace will likely be a minimum requirement for attracting future talent. Insurtech might well provide the opportunity for brokers to develop less reliance on a centralized workplace.

The workplace experience—on a cultural, organizational and technological level—must be comparable to peer industries such as banking and big tech if incumbents are to develop the talents and skillsets the industry will need.

(This is an abridged version of excerpts taken from “The Future of Insurance” by insurance futurologist David A. Smith.

The full white paper is available at: https://pianet.com/docs/2019/ futureofinsurance/. Reprinted by permission).

2019 V10 | 17

$

AGENCY MARKETING

By Peter van Aartrijk

THREE BRAND ELEMENTS THAT ATTRACT CUSTOMERS

YOUR AGENCY’S BRAND ISN’T A TANGIBLE thing. It is a set of expectations and memories that reside in the minds of your stakeholders (employees, customers, prospects, business partners, and referral sources).

And your objective is to build a clear, distinctive and consistent understanding of the brand among all stakeholders. And then manage it.

Often, however, what we call “status quo” firms are drawn to tactics over a strategic framework. That’s because strategy seems to take more time and effort—it can even be exhausting to think about. For example, these agencies might conclude the firm needs a “rebrand.” But instead of beginning at the start— with research and strategy—and developing a strong identity based on that strategy, they opt for tactics such as an inexpensive website or a new logo from an online mill or a freelancer.

They are disappointed when this it doesn’t seem to have any material impact on sales or retention rates. Then they dismiss “branding” as a wasteful exercise.

Meanwhile, what we call “innovator” firms develop a strategy to leverage every aspect of their brand, using multiple touch points to engage with customers and partners to build brand loyalty. Every contact reinforces the brand identity. The staff is fully bought in with a set of core value statements (e.g., “Challenge the status quo”) that drives their actions. Every piece of messaging, from the way phones are answered, to the elevator pitch, to the website, to the way the office looks and functions, to the LinkedIn updates, are tied directly to the “brand lexicon” of the strategy.

Innovator agencies build loyalty. They attract business from the best customers. They have higher retention levels, meaning more profit across the board.

For these reasons, any firm should go through the thoughtful process of defining and codifying brand attributes and personality. What are those brand elements today? With the proper strategy and investment, what should and will they be?

Leadership must clearly understand, embrace and communicate a brand direction for their firms.

Yes, I realize it’s a lot to think about. But it builds agency

18 | 2019 V10

value, just as your investments will in people and technology.

If you need some ammo for your brain to get started, here are three elements I firmly believe that consumers want from their service providers. You can put your own spin on them.

1. TRUST The strongest local or national brands are like trusted, steady-Eddie friends who don’t provide unpleasant surprises or changes. To build trust, you must have a partnership, a relationship.

How do you do this? By introducing and reinforcing your value (what something is worth) versus price (what something costs). You provide advice and education versus sales pitches.

Customers don’t want salespeople—they certainly don’t want “producers,” which is insurance industry jargon. They want trusted advisers.

You also build trust by showcasing valuable stakeholders— your employees and your customers—on social media channels and your website, which is your most important “office.”

Use testimonials in video and photos. Stop hiding your people behind jargon-filled sentences, sales sheets, stock photography, and otherwise cluttered websites.

2. QUALITY Is “fast service” or “self-service” a good thing? It depends.

Maybe not for every insurance transaction. I believe that every interaction should be of high quality, versus quantity.

Sometimes you want to slow down. This can create experiences that people value. Where there is friction—and there is plenty of it in the insurance industry—you have an opportunity to make life more pleasant for customers. Make the customer the product, not the policy. Example: Getting a customer a fast renewal is great. Providing a customer a free risk assessment before the fast renewal might be greater.

Think about it. Why do we wait in line at Starbucks, Disney World or your favorite nail salon? Because it’s an experience.

That’s vastly different than quickly getting your money out of an ATM or checking out fast at Home Depot.

www.pianet.com | PIA CONNECTION

The best agencies create moments of truth beyond claims handling. They’re continuously trying to improve customerfacing processing. They get “paranoid” about service. They understand that proactive service does not equate to “reacting really fast.” They listen to customers. They use customer advisory councils, which is an easy way to garner lots of feedback in a friendly, informal setting. (Think agent advisory councils that carriers use.)

GO DOWN THE LIST Another way to assess quality is to rate your brand touchpoints. On a scale of 0 (nonexistent or truly awful) to 10 (rock solid, let’s not change a thing), rate each: • Your mission (what you do) and vision (why you do what you do) • Your core values as actionable statements • Consistency of workflows • Receptionist, phone system, email response • Employees as responsible partners

3. EDUCATION Customers want—maybe even demand—to be educated about insurance. They may not ask for it, but they want it and need it.

Certainly, they don’t want to be “produced” by producers.

I was in a customer discussion group once with small business owners. We were discussing the experiences they have with their insurance providers. One of the attendees, an owner of a local group of dry cleaners, said, “You know, I would just like to sit down once a year over a cup of coffee with my agent and talk about my coverages—what I need or don’t need. What I might be missing.”

Stop recycling existing policies. That’s an E&O risk on top of a weak customer experience. Put on your risk management hat and help people understand what they’re buying, how the endorsement works, what they may need but haven’t yet considered, etc.

Your agency needs an education plan for prospects and customers. What are the best ways to communicate with customers? Seek ways to engage: social media, email, blogging, video, phone calls.

To reach the customer, understand: • Who to contact (the individual).

• How they preferred to be contacted (email, phone, mail, office visit—do they visit your office?).

• Where to contact (email addresses, work and/or home phone, snail mail).

• Frequency of contact (e.g., quarterly for personal lines, and 6/year for commercial).

• Types of contact (call or text if urgent; email for a newsletter or account update).

Peter van Aartrijk (peter@Aartrijk.com) is co-author of a new book, The Powers: 10 Factors for Building an Exponentially More Powerful Brand, available on Amazon and bn.com. He has worked with independent agents on marketing and communications challenges for 30 years.

PIA CONNECTION | www.pianet.com

• Location, signage, parking • Office as a comfortable, modern place to work • Carrier partners (you might have to prune the rosebush) • Your clear understanding of target customer sets • Customer contact strategy (e.g. email) • Website and online social media presence • Advertising, PR, social media, marketing materials • Business name and visual identity (logo, tagline) • Logo items (mugs, hats, pens, etc.)

Now that you have your scores, attack the 0s, 1s, 2s and 3s first—and the other issues later.

MORE MARKETING SUPPORT FROM PIA PIA members have access to a wealth of marketing tips in past and present issues of the annual PIA Agency Marketing Guide. Read them all at www.PIAAgencyMarketingGuide.com.

PIA wishes to thank the sponsors of the 2019 PIA Agency Marketing Guide: American Reliable Insurance Company; the PIA DMV: PIA’s Direct Marketing Vault; Progressive Insurance and Smart Choice.

Introducing the PIA DMV: PIA’s Direct Marketing Vault

PIA

Agency Marketin g Guide Brought to you by these

®

Agribusiness and Equine

Mortality

sponsors:

PIA DMV

direct marketing vault

A product of the PIA

2019AMG.indb

Branding Program

1

8/19/19 9:32 PM

PIA’s Agency Marketing Guide is published as part of the PIA Branding Program, PIA’s agency marketing program (www.piabrandingprogram.com). Funding for the PIA Branding Program is provided in part by PIA’s Pinnacle Partners: Encompass Insurance, Encova Insurance, Erie Insurance, and State Auto Insurance Companies.

2019 V10 | 19

YOUR MEMBER BENEFITS FROM PIA NATIONAL BUSINESS-BUILDING TOOLS ✦✦ PIA DMV: PIA’S DIRECT MARKETING VAULT. A one-stop shop for direct mail and digital advertising services.

Customizable postcard templates are available to use with the USPS Every Door Direct Mail Program, Targeted Direct Mail, and add-on digital advertising services.

✦✦ AGENCY REVENUE TOOLS. Boost personal lines sales by engaging in employee worksite marketing using your appointed markets at regular commission rates. ✦✦ AGENCY WEBSITES. Cutting-edge websites tailored specifically to insurance agents. ✦✦ PIA LOGO. Put the PIA logo on your business card, website, stationery and signage. Order items with the PIA logo in our online store.

✦✦ PIA BRANDING PROGRAM. Print ads, radio commercials, consumer-oriented flyers and social media support for PIA members. www.piabrandingprogram.com

INSURANCE PRODUCTS

✦✦ PIA MARKET ACCESS. Access to over 50 national and specialty carriers, realtime online rating, ownership of your book and no exit fees for a low monthly rate. www.piamarketaccess.com

✦✦ E&O INSURANCE. With access to admitted and non-admitted markets with differing appetites chances are we can find the coverage and price that’s right for you. www.pianet.com/eando

✦✦ HARTFORD FLOOD INSURANCE. PIA’s endorsed flood provider since 2004. Dedicated local sales directors and book transfer/rollover team plus great commissions for PIA members.

Call (860) 547-5006.

✦✦ PIA AGENTS UMBRELLA PROGRAM. Excess insurance protection includes E&O and business liability coverage, with available endorsements for EPL and personal coverage.

✦✦ PIA CYBER INSURANCE: Robust coverage tailored to small and mid-sized businesses. Coverage with special Dana’s PIA-only enhancements is available pick for PIA members to sell. ✦✦ AVYST EFORMS WIZARD. Quickly and easily prepare ACORD, agency-specific, and carrier-unique applications and forms, entering data only once in an organized interview format. Get to market faster! ✦✦ FLOODBROKER.COM. Sell more flood insurance with a flood quoting Web portal. A PIA member exclusive! ✦✦ PIA AGENCY MARKETING GUIDE. Hands-on marketing tips from industry Alexi’s experts. Published annually.

pick

✦✦ ROUGH NOTES - ADVANTAGE PLUS. Identifies risk exposures. Provides detailed coverage analysis. PIA member price $600 annually (reg. $700). Call 800-428-4384. Use your PIA member ID# above name on mailing label. ✦✦ DOCIT FOR AGENTS. Align applicants with the right carrier early in the auto quoting process with DocIT for Agents’ online database of driver violation data.

✦✦ CYBER LIABILITY INSURANCE. Coverage and pricing tailored to small and mid-sized businesses. ✦✦ INDIVIDUAL AND GROUP INSURANCE PRODUCTS. Basic, voluntary and dependent term life; long/short term disability; AD&D; business overhead expense; and hospital income protection. www.piatrust.com

TOOLS FROM THE PIA PARTNERSHIP, PIA’S COMPANY COUNCIL ✦✦ CYBER 101: Cyber education for you and your clients. ✦✦ SMALL BUSINESS INSURANCE & THE INTERNET—THE VOICE OF THE CL CUSTOMER: Stay ahead of online competition in commercial lines. ✦✦ CLOSING THE GAP—GROWTH & PROFIT. Plan for growth and profitability. Includes tools for improving retention, sales and account-rounding. ✦✦ AGENCY TOUCH POINTS—THE VOICE OF THE CUSTOMER. Give personal lines customers what they really want.

✦✦ PERPETUATION CENTRAL. Guidance through the many phases of your agency’s lifecycle. ✦✦ PRACTICAL GUIDE TO SUCCESSFUL PLANNING. Plan for success within your own agency.

AGENCY MANAGEMENT TOOLS ✦✦ AGENCY AGREEMENT REVIEW SERVICE. Free to members and carriers, PIA recommends changes to carriers and highlights concerns for members. ✦✦ AGENCY PREPAREDNESS AND RECOVERY PLAN. The PIA guide to creating an agency-specific business contingency plan. ✦✦ EMPLOYEE PROFILING. Hire the right people with skills and personality testing from OMNIA. ✦✦ PRESCRIPTION DISCOUNTS. Save money on prescriptions not covered by insurance. Available to PIA members and their clients. ✦✦ Discounts on producer licensing, car rentals, shipping with UPS and calendars from Mines Press. ✦✦ Free subscriptions to industry publications.

LEGISLATIVE & REGULATORY OUTREACH ✦✦ PIA ADVOCACY BLOG. Timely updates about what’s happening on Capitol Hill and on state and federal regulatory issues. www.PIAAdvocacy.com. ✦✦ GRASSROOTS ALERTS. Send pre-written, fully-editable letters directly to your elected officials. www.piagrassroots.com ✦✦ PIA FEDERAL LEGISLATIVE SUMMIT. Every spring, PIA members visit Capitol Hill to meet with their elected representatives. www.piafls.com ✦✦ PIA POLITICAL ACTION COMMITTEE (PIAPAC). PIAPAC contributes to the campaigns of candidates to federal office who share our pro-insurance, pro-business perspective and who support our issues. www.piapac.com

✦✦ REACHING GEN Y. Convert Gen Y age group insurance consumers into loyal agency customers.

Learn more about these PIA National member benefits at www.pianet.com.

20 | 2019 V10

www.pianet.com | PIA CONNECTION

Introducing the PIA DMV: PIA’s Direct Marketing Vault

PIA MEMBER BENEFIT SPOTLIGHT

PIA

Agency Marketin g Guide

PIA’S 2019 AGENCY MARKETING GUIDE NOW AVAILABLE ONLINE PIA IS EXCITED TO ANNOUNCE THAT THE

Brought to you by

®

Agribusiness and Equine

Mortality

direct marketing vault

The 2019 PIA Agency Marketing Guide is the latest offering from the PIA Branding Program (www.piabrandingprogram.com). Through the PIA Branding Program, PIA provides members with marketing tools, including consumer-friendly issue papers on timely insurance topics, social media support, print and radio advertisements in both English and Spanish, and direct mail and digital marketing services in the PIA DMV: PIA’s Direct Marketing Vault.

PIA National wishes to thank the sponsors of the 2019 PIA Agency Marketing Guide: American Reliable Insurance Company; the PIA DMV: PIA’s Direct Marketing Vault; Progressive Insurance and Smart Choice.

A product of the PIA

2019 PIA Agency Marketing Guide is now available online to PIA members and their colleagues. This year’s PIA Agency Marketing Guide is available in PIA’s enhanced, digital format, the same one that has been powering the email edition of PIA Connection over the past two years (www.pianet.com/piaconnection).

A hard copy of the 2019 PIA Agency Marketing Guide mailed to PIA members across the country along with the July/August issue of PIA Connection. The digital version is available to PIA members online at www.PIAAgencyMarketingGuide.com.

The 2019 PIA Agency Marketing Guide includes a focus on digital marketing, helping independent agents understand and leverage these new marketing tools. Readers will learn the advantages of being an “innovator agency” versus a “status quo” agency and will learn the importance of differentiating themselves from their competition. Our experts will help you understand the buying behaviors of millennials and Generation Z insurance buyers which you can put into practice following their guidance on prospecting and sales.

these sponsors:

PIA DMV

2019AMG.indb

Branding Program

1

8/19/19 9:32 PM

UPCOMING PIA WEBINARS Date

Topic

Time

11/15

PIA/Hartford Flood Program

2:00 PM ET

12/11

Floodbroker.com

2:00 PM ET

To register, visit: Pianet.com/calendar Questions? Contact ProductsandServices@pianet.org

PIA CONNECTION MARKETPLACE Help Build Your Family’s Financial Future with PIA Trust Insurance Plans

www.auw.com

Phone: 800-844-0536

www.sportsfitness.com

PIA DMV

Insurance Plans Designed with PIA Members in Mind SERVICES GROUP PIA PIA SERVICES GROUP INSURANCE FUND INSURANCE FUND

Term Life l LTD l STD l AD&D Business Overhead Expense Hospital Indemnity (800) 336-4759 www.piatrust.com

Insurance Program Administered by Lockton Risk Services

Partnership | Solutions | Success Conquering E&S Risks One Risk At A Time

ult

Va PIA’s Direct Marketing

PIAMarketAccess.com

Customizable postcards and digital advertising for PIA members.

m com v.co mv. adm piad pi

800.257.5590 quotes@primeis.com Specialty, Auto, Professional, P&C, E&S Lines Insurance

Photo by Josh King Photography

Representing “A” rated, admitted Liberty Mutual to provide the health and fitness industry with General Liability, Professional Liability, Property, Workers Compensation, Umbrella, Bonds and more.

www.primeis.com *For latest ratings, please access www.ambest.com.

PIA Connection Marketplace rates: $95/issue for 10 issues; $120/issue for 5 issues. To learn more and get a contract, to inquire about |display advertising, PIAorCONNECTION www.pianet.com please contact Alexi Papandon at alexipa@pianet.org or 703-518-1353.

2019 V10 | 21

PIA AFFILIATES ALABAMA

MARYLAND

OREGON/IDAHO

PIA Southern Alliance, 3805 Crestwood Pkwy NW #140, Duluth, GA 30096 PHONE: (770) 921-7585 | FAX: (770) 921-7590 e-mail: info@piasouth.com | Web Site: piasouth.com

Insurance Agents & Brokers of Maryland 5050 Ritter Rd, Mechanicsburg, PA 17055-0763 PHONE: (717) 795-9100 | FAX: (717) 795-8347 e-mail: iab@iabforme.com | Web Site: www.iabforme.com

PIA Western Alliance 3205 Northeast 78th Street, #104, Vancouver, WA 98665 PHONE: (888) 246-4466 | FAX: (360) 571-7600 e-mail: piawest@piawest.com | Web Site: www.piawest.com

MASSACHUSETTS

PENNSYLVANIA

PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

MICHIGAN

PUERTO RICO & CARIBBEAN

Michigan PIA, P.O. Box 99579 Troy, Michigan, 48099 PHONE: (616) 454-4461 | FAX: (616) 454-4491 e-mail: inquiry@mipia.com | Web Site: www.mipia.com

PIA of Puerto Rico and the Caribbean Inc KOI Building, Urb. Muñoz Rivera, Acuarela Street, 3A, Office G – 10, Guaynabo, PR 00969 PHONE: (787) 387-9696 | FAX: (787) 792-4745 e-mail: administration@piaofpr.org | Web Site: www.piaofpr.org

ARKANSAS PIA of Arkansas Inc. 102 Country Club Parkway, Suite 201, Maumelle, AR 72113 PHONE: (501) 225-1645 | FAX: (501) 225-2550 e-mail: evp@piaar.com | Web Site: www.piaar.com

CA/NV/AZ/NM PIA Western Alliance, 3205 Northeast 78th St #104, Vancouver, WA 98665 PHONE: (888) 246-4466 | FAX: (360) 571-7600 e-mail: piawest@piawest.com | Web Site: www.piawest.com

COLORADO

MINNESOTA

PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

PIA of Minnesota, 8646 Eagle Creek Circle, Suite 202, Savage, MN 55378 PHONE: (866) 694-7070 | FAX: (866) 749-8678 e-mail: info@piamn.com | Web Site: www.piamn.com

CONNECTICUT

MISSISSIPPI

PIA of Connecticut, P.O. Box 997, Glenmont, NY 12077-0997 PHONE: (800) 424-4244 | FAX: (518) 434-2342 e-mail: pia@pia.org | Web Site: www.pia.org

PIA Southern Alliance, 3805 Crestwood Pkwy. NW, Ste. 140, Duluth, GA 30096 PHONE: (770) 921-7585 | FAX: (770) 921-7590 e-mail: info@piasouth.com | Web Site: piasouth.com

DELAWARE

MISSOURI

PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

Missouri Association of Insurance Agents 3315 Emerald Lane, Jefferson City, MO 65109-6878 PHONE: 573-893-4301 | FAX: 573-893-3708 e-mail: mbarton@moagent.org | Web Site: www.missouriagent.org

FLORIDA PIA of Florida, Inc., 419 N. Lee Street, Alexandria, VA 22314-2353 PHONE: (850) 893-8245 | FAX: (703) 549-5190 e-mail: piafl@piafl.org | Web Site: www.piafl.org

MONTANA

RHODE ISLAND PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

SOUTH CAROLINA PIA of South Carolina, PO Box 6167, Columbia, SC 29260 PHONE: (803) 772-0557 | (888) 742-6372 | FAX: (803) 772-0846 e-mail: PIASC@piasc.net | Web Site: www.piasc.net

SOUTH DAKOTA PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

TENNESSEE

PIA Western Alliance, 3205 NE 78th St Ste 104, Vancouver, WA 98665-0697 PHONE: (888) 246-4466 | FAX: (360) 571-7600 e-mail: piawest@piawest.com | Web Site: www.piawest.com

PIA of Tennessee Inc 504 Autumn Springs Court Suite A-3, Franklin, TN 37067 PHONE: (615) 771-1177 | FAX: (615) 771-3456 e-mail: piatn@piatn.com | Web Site: www.piatn.com

NEBRASKA/IOWA

TEXAS

HAWAII

PIA of Nebraska/Iowa, 920 South 107th Avenue, Suite 305, Omaha, NE 68114 PHONE: (402) 392-1611 | FAX: (402) 392-2228 e-mail: cathy@pianeia.com | Web Site: www.pianeia.com

PIA of Texas 5605 N. MacArthur Blvd. Suite 1000, Irving, TX 75038 PHONE: (972) 862-3333 | FAX: (972) 307-7888 e-mail: vicki@piatx.org | Web Site: www.piatx.org

PIA of Hawaii, 1247 Kelewina St. Kailua, HI 96734 PHONE: (808) 261-9460 | FAX: (808) 262-5355 e-mail: piahi@hawaiiantel.net | Web Site: www.piahawaii.com

NEW HAMPSHIRE

UTAH

PIA of New Hampshire, P.O. Box 997, Glenmont NY 12077-0997 PHONE: (800) 424-4244 | FAX: (518) 434-2342 e-mail: pia@pia.org | Web Site: www.pia.org

Utah Association of Independent Insurance Agents 4885 S. 900 E., Suite 302, Salt Lake City, UT 84117 PHONE: (801) 269-1200 | FAX: (801) 269-1265 e-mail: ctimothy@srvins.com | Web Site: www.uaiia.org

GEORGIA PIA Southern Alliance, 3805 Crestwood Pkwy NW #140, Duluth, GA 30096 PHONE: (770) 921-7585 | FAX: (770) 921-7590 e-mail: info@piasouth.com | Web Site: piasouth.com

ILLINOIS PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

INDIANA PIA of Indiana, 50 E. 91 Street Ste. 207 Indianapolis, IN 46240 PHONE: (317) 899-9200 | FAX: (317) 493-0408 e-mail: info@piaindiana.com | Web Site: www.piaindiana.com

KANSAS

NEW JERSEY PIA New Jersey, P.O. Box 997, Glenmont NY 12077-0997 PHONE: (800) 424-4244 | FAX: (518) 434-2342 e-mail: pia@pia.org | Web Site: www.pia.org

NEW YORK PIA New York, P.O. Box 997, Glenmont NY 12077-0997 PHONE: (800) 424-4244 | FAX: (518) 434-2342 e-mail: pia@pia.org | Web Site: www.pia.org

VERMONT PIA of Vermont P.O. Box 997, Glenmont NY 12077-0997 PHONE: (800) 424-4244 | FAX: (518) 434-2342 e-mail: pia@pia.org | Web Site: www.pia.org

VIRGINIA/DC

NORTH CAROLINA

PIA Assn of Virginia & DC 8751 Park Central Dr., Ste 140, Richmond, VA 23227 PHONE: (804) 264-2582 | FAX: (804) 266-1075 e-mail: kevin@piavadc.com | Web Site: www.piavadc.com

KENTUCKY

PIANC, PO Box 1387 Davidson, NC 28036 PHONE: (704) 534-2338 e-mail: jim@pianc.net | Web Site: www.pianc.net

WASHINGTON/ALASKA

PIA of Kentucky, P.O. Box 4205, Frankfort, KY 40604-4205 PHONE: (502) 875-3888 | FAX: (502) 227-0839 e-mail: clemay@piaky.org | Web Site: www.piaky.org

NORTH DAKOTA

Kansas Association of Professional Insurance Agents 216 SW 7th Ave, Topeka, KS 66603 PHONE: (785) 232-4143 | FAX: (785) 232-0272 e-mail: pia@pia.kscoxmail.com | Web Site: www.kansaspia.org

LOUISIANA PIA of Louisiana Inc. 4021 W. E. Heck Ct., Building K, Baton Rouge, LA 70816 PHONE: (225) 766-7770 | (800) 349-3434 LA only | FAX: (225) 766-1601 e-mail: jody@piaoflouisiana.com | Web Site: www.piaoflouisiana.com

PIA of North Dakota 827 28th Street South, Suite C-2, Fargo, ND 58103 PHONE: (701) 223-5025 | (800) 733-1050 ND&MN only FAX: (701) 223-9456 | e-mail: info@piand.com Web Site: www.piand.com

OHIO

MAINE

PHONE: (703) 836-9340 | FAX: (703) 836-1279 email: membership@pianet.org | Web Site: www.pianet.org

Maine Insurance Agents Association 17 Carriage Lane, Hallowell, ME 04347 PHONE: (207) 623-1875 | FAX: (207) 626-0275 e-mail: lisa@maineagents.net | Web Site: www.meiaa.com

OKLAHOMA

22 | 2019 V10

PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.org

PIA Western Alliance 3205 Northeast 78th Street, #104, Vancouver, WA 98665 PHONE: (360) 571-7100 | FAX: (360) 571-7600 e-mail: piawest@piawest.com | Web Site: www.piawest.com

WEST VIRGINIA PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

WISCONSIN PIA of Wisconsin, Inc., 6401 Odana Road, Madison, WI 53719-1126 PHONE: (608) 274-8188 | (800) 261-7429 | FAX: (608) 274-8195 e-mail: phanson@piaw.org | Web Site: www.piaw.org

WYOMING Assoc. of Wyoming Ins. Agents, PO Box 1321, Cheyenne, WY 82003 PHONE: (307) 201-4801 | FAX: (775) 796-3122 e-mail: awia@vcn.com | Web Site: www.awia.com

www.pianet.com | PIA CONNECTION

Partnership Solutions Success CONQUERING E&S RISKS ONE RISK AT A TIME

STRIP MALL: COMMERCIAL PROPERTY

800.257.5590

quotes@primeis.com www.primeis.com Specialty, Auto, Professional, Property & Casualty Excess & Surplus Lines Insurance Available in all 50 states.

Auto available in most states except NY.

For latest ratings, please access www.ambest.com.

Photo by Josh King Photography.

Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied.® For information call (877) 234-4450 or visit auw.com/us. Follow us at bigdoghq.com.

©2019 Applied Underwriters, Inc. Rated A (Excellent) by AM Best. Insurance plans protected U.S. Patent No. 7,908,157.