PIA Connection - A Successful Year in Advocacy for PIA Members

The Agency Distribution System Continues to Win

Page 12 2019 V12

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

A SUCCESSFUL YEAR IN ADVOCACY FOR PIA MEMBERS page 9-11

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2019 V12

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS PRESIDENT Dennis D. Kuhnke, CIC, CPIA (WI) dkuhnke@robertsonryan.com PRESIDENT-ELECT Wayne F. White, CPA, CPIA, PFMM (AR) wwhite1948@aol.com VICE PRESIDENT/TREASURER Anthony Curti, CIC, LIC (MI) tcurti@acrisure.com SECRETARY/ASSISTANT TREASURER Gerald F. Hemphill, CIC, LUTCF (VA/DC) ghemphill@gfhinsurance.com IMMEDIATE PAST PRESIDENT Keith A. Savino, CPIA (NJ) keiths@warwickresource.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 December 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.

PAGE 18 AVOIDING THE NOISE — DIRECT MAIL MARKETING WORKS

CONTENTS COVER STORY: A SUCCESSFUL YEAR IN ADVOCACY FOR PIA MEMBERS 9-11 PIA National Vice President of Government Relations Jon Gentile reviews some significant wins achieved by PIA agents in 2019, and assesses some of the challenges that remain for 2020.

COVER STORY: THE AGENCY DISTRIBUTION SYSTEM CONTINUES TO WIN 12-14 PIA National Senior Vice President Emeritus Patricia A. Borowski with an analysis of the current state of the agency distribution system, and the unsuccessful efforts over decades by our competitors to undermine it.

NEWS BRIEF 6-7 California Bans Insurers From Dropping Homes in Wildfire Areas…

Reinsurers Warn on Vaping…Private Flood Insurance Is Up…Britain’s Crown Jewels Are Uninsured…

AGENT/BROKER OF RECORD CHANGES While there may be “50 ways to leave your lover,” there are only two ways to leave your producer.

15-16

PIA ISSUES CALL FOR SPRING AWARD NOMINATIONS Agent of the Year, CSR of the Year and Young Insurance Professional of the Year

17

AVOIDING THE NOISE – DIRECT MARKETING WORKS Steve Bommarito on how Direct Mail marketing cuts through all the noise that confronts consumers.

18

INTRODUCING PIA’S NEW PERPETUATION PLANNING PROGRAM 19 PIA and The PIA Partnership are proud to introduce Agency Journey Mapping, a perpetuation/succession planning program for current and future agency owners.

DEPARTMENTS From the President . . . . . . . . . . . . . . . . . 5 From the CEO . . . . . . . . . . . . . . . . . . . . 5 PIA National Member Benefits . . . . . . . . . . .20 PIA Member Benefit Spotlight . . . . . . . . . . .21 PIA Marketplace . . . . . . . . . . . . . . . . . .21 PIA Affiliate Listings . . . . . . . . . . . . . . . .22

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.

Cover image: iStockphoto/smartboy10

2019 V12 | 3

AGENTS OF

CULTIVATING A STRONG FUTURE, TOGETHER For independent agent Mark Gannon, insurance isn’t just a day job—it’s the family business. Creating great relationships with his carriers is the secret to his success.

He says with Progressive, “the mixture of someone working with us—face to face, training our staff, presenting new technology and showing us how to use it—that’s been a winning combination.”

A future built on strong partnerships.

We couldn’t agree more.

AgentsofProgressive.com

MARK GANNON, GANNON ASSOCIATES | ATHENS, PA

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.

FROM THE PRESIDENT IF YOU’RE A PRINCIPAL OF AN INDEPENDENT insurance agency, you probably already know that planning for perpetuation is important. However, too often perpetuation planning is something that gets postponed. It raises issues some might be uncomfortable dealing with. But not preparing is not a good option. Perpetuation it is not something that will take care of itself.

Every agency will eventually perpetuate at the death, disability or retirement of its owners or earlier sale of the agency.

Yet few agency owners adequately prepare for perpetuation and sadly, many never plan for a crisis requiring immediate perpetuation.

PIA National and our carrier council, The PIA Partnership, have just unveiled the Partnership’s Agency Journey Mapping program. Its goal is to help agents understand the issues surrounding agency perpetuation, while making it easy for them to create a personalized perpetuation plan for their agencies.

PIA and The PIA Partnership work together to develop hands-on tools for PIA members and agents appointed by

Partnership carriers, of which Agency Journey Mapping is the latest.

Agency Journey Mapping, available at www.agencyjourneymapping.com, expands on the previous Perpetuation Central, which has long been among the most popular Partnership programs.

Let me express my heartfelt thanks on behalf of all PIA members to all of the members of The PIA Partnership: Central Insurance Companies, Encompass Insurance, Erie Insurance, Liberty Mutual Insurance, MetLife Auto & Home, National General Insurance, Progressive Insurance, Selective Insurance Group, State Auto Insurance Companies and The Hanover Insurance Group.

Dennis Kuhnke President

FROM THE CEO PIA NATIONAL’S MISSION IS TO SERVE ITS members. We do this in many ways. One way is to go to bat for them when new challenges arise.

Beginning in 2020, agents and brokers using ACORD forms are being required to obtain end user licenses from ACORD. This is a change that represents an additional expense.

I am pleased to report that PIA has negotiated a deal with ACORD to provide the majority of PIA member agencies with a complimentary license to use ACORD forms, effective January 1, 2020.

Under the agreement, PIA National will fund ACORD Form end user licenses for the majority of our member agencies who receive ACORD Forms from agency management systems, allowing them to claim these licenses free of charge. This benefit will serve PIA member agencies under $50M in annual group gross P&C revenue. Those under $1M in annual group gross P&C revenue that do not use

PIA CONNECTION | www.pianet.com

an agency management system will receive a discount to the ACORD Advantage Plus program. Details are here: www.acord.org/FormsLicense PIA’s advocacy for its members is constant and across-theboard. We fight in Congress for lower taxes for independent agencies and to preserve agent commissions. We engage with regulatory entities to advocate for the best business environment. We work with our carrier partners to encourage them to do business through the agency distribution system. And when needed, we step up to the plate to assist PIA members meet new challenges.

The value of PIA membership continues to grow.

Mike Becker CEO

2019 V12 | 5

!

NEWS BRIEF

On December 5, California’s insurance regulator imposed a one-year moratorium preventing homeowners insurers from dropping customers in or alongside ZIP codes struck by recent wildfires.

The moratorium covers at least 800,000 homes around the state.

Further, the state has

asked insurers to voluntarily stop dropping customers anywhere in California due to fire risk for one year. California Insurance Commissioner Ricardo Lara said, “People are losing insurance even after decades with the same company and no

on lasting solutions.”

Rather than exit the state altogether, insurers are considering alternatives to protect themselves from rising wildfire costs, like reinsurance and requests for rate increases. However, Lara said, “I want to be very

cautious about opening the rate-approval process to anything that compromises the transparency and objectivity that exists today.

Protecting consumers is our top priority, and that is the lens we will use to evaluate any catastrophe risk models in the future.”

history of filing claims.

Hitting the pause button on issuing non-renewals due to wildfire risk will help California’s insurance market stabilize and give us time to work together Shutterstock

CALIFORNIA BANS INSURERS FROM DROPPING HOMES IN WILDFIRE AREAS

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

REINSURERS WARN ON VAPING Global reinsurers are stepping up their warnings to life insurer clients about the potential risks of vaping, putting pressure on underwriters to charge certain vapers higher rates than smokers, or even exclude them altogether. U.S. authorities said last month that there

your employees have access

had been 47 deaths this year from a lung illness tied to

to a variety of high-quality,

vaping. The health concerns about vaping have grown

competitively priced

despite evidence showing e-cigarettes help smokers to

insurance plans.

quit, and has led to bans in some countries including India and Brazil.

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.

6 | 2019 V12

Most insurers have long treated smokers and vapers the same, meaning they can pay close to double the premiums of non-smokers or non-vapers. But three major reinsurers have provided updated advice on vaping in the past three months, with new warnings, while others are considering their approach.

Stephen Cooley, Chief Medical Underwriter at PartnerRe Life & Health, said more research on the long-term effects of vaping was needed and that life insurance rates for vapers would be the same as smoker rates “at best.”

www.pianet.com | PIA CONNECTION

NEWS BRIEF

PRIVATE FLOOD INSURANCE IS UP The National Association of Insurance Commissioners (NAIC) says private flood insurers reported direct written premium of $644 million in 2018, up 9 percent from 2017 direct written premiums and up 71 per-

losses and digital quoting experiences for purchasing coverage. The NFIP’s Risk Rating 2.0 — which calculates flood insurance rates based on the risk profile of an individual location over a blanket map — is largely made possible by these

Shutterstock

!

same developments.

cent since 2016. The NAIC

However, the Federal Emer-

has commenced a process

gency Management Agency

to consider adopting a

(FEMA) has announced that

model act specific to flood

risk Rating 2.0 has been

insurance. Such model

postponed from October

acts may then be submit-

2020 to October 2021.

ted as legislation in states

A letter from 60 members

Queen’s crown jewels are carefully locked away in the

of Congress raised con-

Tower of London when they are not being wheeled

cerns about the impact Risk

out for state ceremonies.

interested in following the model guidance, creating a framework of consistent policy for the industry.

Rating 2.0 could have on National Flood Insurance

BRITAIN’S CROWN JEWELS ARE UNINSURED One of the world’s most famous collections of precious stones is totally uninsured. That’s because the crown jewels are considered uninsurable. The

The Crown Jewels include the 1611 St Edward’s Crown used in coronations, as well as robes and other items

New entrants to the flood

Program (NFIP) premiums.

insurance sector are com-

FEMA delayed the imple-

ing online faster than ever

mentation of Risk Rating

before and are looking

2.0 to allow for further anal-

at admitted products at a

ysis on the rating structure,

scale that’s unprecedented.

“to protect policyholders

The historical nature of the Crown Jewels means

Newly adopted technolo-

and minimize any uninten-

a price cannot be put on the collection, making it

gies in the industry include

tional negative effects of

impossible to insure. But a finance website recently

probabilistic models that

the transition.”

speculated that the entire Crown Jewels collection is

estimate risk and potential

of ceremonial regalia. When the crown is not being used at coronations, it is on display at the Tower of London alongside other pieces from the collection which pull in 30 million visitors every year.

worth more than £2.7 billion.

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

PIA CONNECTION | www.pianet.com

2019 V12 | 7

THE FEDERAL LEGISLATIVE SUMMIT IS NOW

JOIN US

MARCH 31 - APRIL 1, 2020 IN WASHINGTON, D.C.

8 | 2019 V12

W W W. P I A A D V O C A C Y D AY. C O M

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CAPITOL HILL REPORT

By Jon Gentile Vice President, Government Relations PIA National

A SUCCESSFUL YEAR IN ADVOCACY FOR PIA MEMBERS

National and its members, with legislative and regulatory victories taking place across a variety of issue areas.

PIA achieved wins on a range of issues with the potential to impact PIA members.

PIA These included efforts to make certain tax cuts permanent; preventing cuts to agent ACHIEVED commissions in the federal flood insurance WINS ON program; protecting state regulation of insurance by working to advance aboliA RANGE tion of the Federal Insurance Office (FIO); OF ISSUES. working to repeal the onerous 40 percent excise tax on so-called “overly generous,” employer-sponsored health plans, scheduled to take effect in 2022; and building support in Congress for a long-term reauthorization of the Terrorism Risk Insurance Program, known as TRIA. These legislative advances occurred during a challenging time, with the new 116th Congress beginning in January, ushering in a divided Congress, as the Democrats took over the House of Representatives while Republicans retained control of the Senate.

As PIA National gears up for the New Year and the 2020 PIA Advocacy Day (formerly called the Federal Legislative Summit), here is a look back at some of our advocacy successes in 2019.

PIA LEADS ON TAX DEDUCTION FOR PASSTHROUGH ENTITIES 2019 began with a major victory for PIA National, as the Internal Revenue Service and the Department of the Treasury issued final regulations on the 2017 tax reform law (P.L. 115141). PIA National aggressively advocated for this tax relief for pass-through entities after the tax reform law (P.L. 115-141) was passed in December 2017. We advocated for the language that was passed by Congress to be interpreted as granting the deduction to insurance agents, and our advocacy paid off when our position was adopted the U.S. Treasury and the IRS when final regulations were issued saying that, for the most part, insurance agents are permitted to take the 20 percent passPIA CONNECTION | www.pianet.com

iStockphoto/smartboy10

2019 WAS A SUCCESSFUL YEAR FOR PIA

through deduction provided by the tax law.

Unfortunately, the pass-through deduction was not made permanent in the tax law like it was for entities organized as C corporations. As a result, the benefit for PIA members who organize as passthroughs will end on December 31, 2025, unless Congress acts.

PIA National is not standing idly by in the meantime.

Instead, we helped develop and strongly support legislation to make the 20 percent tax deduction for pass-throughs permanent. The Main Street Tax Certainty Act (H.R. 216/S. 1149) has been introduced in the House and Senate, and PIA National is working hard to build support for the legislation to ensure that this deduction does not expire.

BUILDING SUPPORT TO REPEAL THE FEDERAL INSURANCE OFFICE PIA National has led the insurance industry on the movement to repeal the Federal Insurance Office (FIO)—in fact, we were the first insurance association to call for its full repeal and have been focused on building support for its abolition. Our work has led to significant developments – legislation introduced for CONTINUED ON PAGE 10

2019 V12 | 9

A SUCCESSFUL YEAR IN ADVOCACY FOR PIA MEMBERS CONTINUED FROM PAGE 9

the first time in both the House and Senate to repeal the FIO. Rep. Alex Mooney (R-WV) is the lead on the legislation in the U.S. House (H.R. 1862).

PIA National worked closely 2019 BEGAN WITH with Rep. Mooney on A MAJOR VICTORY developing this legislation when he first introduced FOR PIA NATIONAL it in 2017, and we did the ENSURING THE same for its reintroduction in March of 2019. PIA PASS-THROUGH TAX National also had our work DEDUCTION APPLIED pay off when Senator Ted TO INSURANCE Cruz (R-TX) introduced a Senate companion bill in AGENTS. May 2019. We were proud to take the lead on this effort to have FIO repeal introduced in the Senate and, in fact, members of the Texas PIA affiliate met with Senator Cruz’s office during the PIA’s congressional fly-in to specifically urge him to lead the effort to repeal the FIO in the Senate.

The state insurance regulatory system is too important for independent agents and consumers to allow the FIO to increase its power while doing nothing to stop it. The introduction of FIO repeal in both chambers is a gamechanger in this long term effort.

PIA of Nebraska National Director Mark Suhr (right) speaks with Rep. Jeff Fortenberry (R-NE).

10 | 2019 V12

PIA KEEPS AGENT COMMISSION CUTS OUT OF FLOOD REAUTHORIZATION On June 12th, the U.S. House Financial Services Committee passed PIA-supported bipartisan legislation to reform the National Flood Insurance Program (NFIP) and reauthorize it for five years. The compromise bill was released June 6 by House Financial Services Committee Chairwoman Maxine Waters (D-CA) and Ranking Member Patrick McHenry (R-NC).

PIA National has advocated for several provisions in this package, including increased investment in mapping and mitigation, the creation of a consumer appeals process of mapping decisions made by FEMA, and the inclusion of provisions to continue the program’s move toward risk-based rates.

Most importantly, the draft package doesn’t include a cut to the Write-Your-Own (WYO) rate for insurers administering the NFIP. In 2017, the House passed an NFIP reauthorization bill that included such a cut. If a WYO rate cut had become law, it could have forced the WYOs to pass that reduction on to agents through their commissions. In turn, that reduction in agent commissions could have resulted in an exodus of qualified independent agents from the NFIP, which would have devastated the program. As a result, PIA National was the only insurance association to oppose both the amendment that included that cut and the 2017 bill overall, while noting our continued support of other key reform provisions and the need for a long-term reauthorization of the NFIP. Since then, PIA National has continued meeting with congressional offices to request that this rate remain the same. PIA National views the maintenance of the current WYO rate in the current House NFIP legislation as an early victory for our tenacious advocacy on this issue.

CADILLAC TAX REPEAL PASSES HOUSE The Middle-Class Health Benefits Tax Repeal Act (H.R. 748) was passed by the House on July 17 by a vote of 419-6.

The bill, sponsored by Reps. Joe Courtney (D-CT) and Mike Kelly (R-PA), would repeal the provision of the Affordable Care Act (ACA) often referred to as the “Cadillac tax,” which would impose a 40 percent excise tax on so-called “overly generous,” employer-sponsored health plans.

Enacted as a part of the ACA, the Cadillac Tax has never been implemented, due in large part to advocacy by PIA members, who led multiple successful efforts to delay it until 2022. The tax, which is assessed using the chained consumer price index (CPI), would apply to fully insured and self-funded

www.pianet.com | PIA CONNECTION

Legislator of the Year: The PIA National Executive Committee presents the 2019 PIA National Legislator of the Year Award to Rep. Billy Long (R-MO).

employer health plans and will tax policies with limits that exceed the annual thresholds of $11,100 for individual coverage and $29,750 for family coverage. Over time, more and more employer-sponsored health plans will be affected, because the benefit thresholds will increase at a rate slower than that of inflation. This will subject an increasing number of Americans to the Cadillac Tax sooner, because inflation will outpace increases in the thresholds using chained CPI. The repeal of the Cadillac tax has long been a priority for PIA National, and we urge the Senate to follow the House and pass this bill to fully repeal the Cadillac Tax as soon as possible.

CANNABIS SAFE HARBOR PASSES HOUSE Throughout 2019, 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.

PIA National helped develop legislation that would prevent federal criminal prosecution of and civil liability for agents, brokers, and insurers, and their officers, directors, and employees when engaging WE WERE PROUD in the business of insurance in states that have legalized TO TAKE THE LEAD cannabis in some form. The ON THIS EFFORT TO SAFE Banking Act (H.R. 1595), eventually became the HAVE FIO REPEAL vehicle for this issue, and PIA INTRODUCED IN National ensured the legislation included language that THE SENATE, AIDED protected insurance agents

BY MEMBERS OF from prosecution.

Our efforts paid off when TEXAS PIA.

PIA CONNECTION | www.pianet.com

the House passed the SAFE Banking Act in September. PIA National will continue our advocacy in support of this bill in the Senate.

EARLY VICTORY ON TRIA PROGRAM REAUTHORIZATION On November 20, the U.S. Senate Banking, Housing and Urban Affairs Committee passed legislation to reauthorize the current iteration of the Terrorism Risk Insurance Act (TRIA) for seven years unanimously by voice vote. This action comes two days after the U.S. House passed a companion TRIA reauthorization bill.

PIA National has made it a key priority this year to have the TRIA program reauthorized well before its scheduled expiration of December 2020. The bill makes minimal changes to the program and provides a long-term reauthorization. PIA National is now urging the full Senate to pass this bill as well.

PIA’S WORK MUST GO ON While we have scored numerous wins in 2019, you’ll notice that there is still work to be done.

Making the pass-through tax cuts permanent still requires action by Congress. Keeping agent commission cuts out of flood legislation requires constant contact with lawmakers.

We have to continue to build support for the repeal of both the FIO and the Cadillac Tax. Legislation to protect insurance agents from prosecution for doing business with cannabisrelated enterprises in states where such businesses are legal has passed the House but still must be passed by the Senate.

PIA has achieved many advances, but most are not yet final.

That’s why our work must go on.

Jon Gentile is Vice President of Government Relations for PIA National.

2019 V12 | 11

PERSPECTIVES

By Patricia A. Borowski

THE AGENCY DISTRIBUTION SYSTEM CONTINUES TO WIN IT IS NOT HARD TO IMAGINE the initial reaction on the part of independent agents and brokers who spotted this headline on the May 2, 2019 issue of Forbes magazine. It read: “First. Fire All The Brokers: How Lemonade (insurance company), a millennial-loved Fintech Unicorn, Is Disrupting The Insurance Business” Once you got past the opening salvo which proposed disintermediating all brokers with extreme prejudice, you get a parade of trendy buzzwords: “millennial,” “fintech” and “disrupting.”

What more is there?

Plenty.

While not a fan of the phrase, “The more things change, the more they stay the same,” there is a nugget of truth in it. The Internet is a good example. The Internet celebrated its 50th birthday in late October 2019. In simple terms, it was created to allow individual computers to talk to each other, and to computers in other locations. But its effect in the economy has been anything but simple. But when you look at all the Internet has changed, it continues to be rooted in its core purpose: carrying communications. That hasn’t changed.

But the Internet has enabled vast changes in the way that commerce can be conducted. The question is: what effect will these capabilities have on independent insurance agencies?

The changes ushered in by technology are not one-and-done; change is a constant. But while much can change, much always stays the same.

12 | 2019 V12

AGENTS KEEP WINNING This Forbes article’s headline transported me back to the 1980s insurance market crisis, when a room full of insurance company CEOs told PIA National’s Executive Committee that they hadn’t decided what role or insurance market space really fit independent agencies anymore. The agency owners warned those carrier CEOs that agency owners would do whatever was necessary to remain successful.

At the time, PIA responded by creating the PIA’s Business Link program. Working with agency members and PIA affiliates, we factually demonstrated the case that IAs’ books of business were solid and profitable. We found carriers willing to step up and make the appointments (that these other carriers were throwing out the window), so that those books could move to insurers that wanted the business—and the professional agency relationships that came with them.

The results: the program was successful. While the agency owners on our Executive Committee and throughout PIA at that time may have long since retired, their agencies go on with second and third generation owners, serving their customers and making money for their carriers and their agencies.

The fate of some of those CEOs and carriers which couldn’t decide if they wanted to continue their relationships with independent agents was not so rosy. Five years after that meeting, many were gone. CEOs were no longer CEOs, and many carriers went out of business.

HISTORY REPEATS ITSELF Well, here we go again! This 2019 Forbes headline starts this tired debate anew.

The jist of the article is about outsiders (financial people) coming into the “backwards” insurance industry to disrupt it and show their way is better. The new insurance company, Lemonade, is a direct-writer of renters and homeowners insurance written on basic forms only. As per the company, 85+% of their policyholders are first time insurance buyers. They are doing so well that after only one year (according to their own accounts) their loss ratio was 116% (pardon my sarcasm). By securing additional outside capital investment, they’ve now brought that back down to a “healthy” (in their view) 86% (compared to the average P&C carrier LR of 65%).

They operate on 25% for expenses and profit with 75% going to claims, as well as to pay taxes, fees and the cost of reinsurance (expenses that P&C carriers cover under their expenses and profit side, rather than claims portion).

Excess profits are said to go to charities selected by the policyholders, but it’s too early to have a full picture of that.

So, what does the Forbes headline mean (beyond the obvious), convey and bely?

In my view, it is intended to undermine carrier-agent/broker relationships by overtly belittling the value of insurance agents and brokers. However, less obvious, is that it is also a major insult to current insurers. They depict carriers

www.pianet.com | PIA CONNECTION

(and therefore their senior operating people) as out-of-touch and behindthe-times operations. They suggest that current carriers don’t “understand” that they run an industry hated by the public and waste money on agents and ineffective internal operations. So, there are plenty of insults being handed out here for everyone in the current business of insurance.

This attack is, once again, led by financial industry people and other outsiders that want agents’ and brokers’ compensation for themselves to invest in their plans, arguing that they’ll do it better. They want to control our industry and, most importantly, its insurance money, under the guise of “doing a better job” than we do. However, the 2006/2008 financial markets crisis isn’t the kind of calling card that demonstrates outsider financial people “get it.” If they couldn’t hold onto the monies that their investors and bank account customers gave them, what makes us think that they’ll understand insurance policyholder reserve and claims obligations?

It is also about big consulting firms needing to generate business for themselves. In the past, dark days of the insurance industry market crisis, consulting firms recommended and drove change that attempted to truncate the value of the Main Street Independent Agency System, a highly qualified network of insurance experts with great customer service skills, a marketplace in which they are known to their communities and share a common interest in developing good profitable business relationships among the three parties (customer, carrier & agency).

Consulting firms [“experts”] have many different clients. In the big firms, those clients come with a lot of competing interests. It becomes hard to see where the real vested interests of the consulting firm lay and who benefits.

Is it in the positive outcome of the carrier’s successful transformation—or is

it in creating insurance industry entryaccess for financial industry clients (and the fees they generate from that)?

DISTORTED RESEARCH There is also a question about the global scope of a consulting firm’s clients. For example, in 2018, Bain & Company issued a very interesting survey study entitled Customers Know What They Want. Are Insurers Listening? References from this report are creeping into other articles and conversations on the need for change in the US insurance industry.

Unfortunately, these references are being over-generalized from what is factually stated in their report.

The report is based upon the surveys of 174,000 retail insurance consumers. That is a healthy sample lot, until you understand those numbers are spread across 18 countries. This poses a big problem when advice on the U.S. insurance industry is based upon research in the U.S. and 17 other countries. And beyond the generalities of these consumers’ responses, what do those answers mean when you consider the customs, cultural differences and divergent regulatory systems among and between these countries?

For example, the very first data model shows that in the U.S., millennials are less likely to want to buy their insurance from a new entrant, including those outside the insurance industry, than compared to 13 other countries. The report is also on-point that the more a carrier’s program offers buyers satisfaction and desired services (beyond a stripped down basic), the more brand loyalty they’ll have.

However, to illustrate this point in the U.S., Bain selects USAA, which has great brand loyalty, but for some exceptional reasons concludes that would not otherwise apply to nonmilitary insurers. A more accurate and inclusive example would have been for Bain to also include the J.D. Power

Consumer Satisfaction insurance surveys, in which a number of various carriers lead consumer satisfaction, a good number of which are independent agency companies.

By selecting a single-class of carrier example, it skews the import of their message. USAA, like the several other U.S. carrier examples cited in their report, are all direct-writers. This creates a not-so-subtle bias to their message that implies these are the types of insurers leading these new directions in the U.S., which is far from the full answer.

THE IA SYSTEM KEEPS GROWING Having worked with independent agents for decades, I can say that agents do not lack self-confidence. To the contrary, optimism, enthusiasm and a can-do outlook are some of the necessary attributes that are key to the success of IAs. But there is a paradox. Optimistic agents and brokers regularly hear predictions of their impending doom from these supposed experts. In 2013, global consulting firm McKinsey claimed the public doesn’t want to buy insurance through independent agents [in an article headlined, “The End of an Era for the Local Insurance Agent.”]

PIA conducted a campaign to refute this claim by McKinsey (which did not cite research, only opinion articles), and McKinsey essentially backed off of this assertion.

PIA maintains files of its magazines, published since our founding in 1931. In them, you see that every ten years or so, there is an effort afoot to denigrate agents that predicts they will be eliminated by captives and direct writers. The same theme arises in the 1930s, 1940s, 1950s, 1960s…straight through to today. But it never happens.

In both 2014 and 2015, the Wall Street Insurance Analysts’ program at the Society of Insurance Research CONTINUED ON PAGE 14

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2019 V12 | 13

THE AGENCY DISTRIBUTION SYSTEM CONTINUES TO WIN CONTINUED FROM PAGE 13

Conference advised that the independent insurance agency system was growing, and that trend would continue for the foreseeable future.

Reasons: lowers costs, higher profitability, more book growth, stability & diversification.

Allstate went to the independent agency system in 1978. That move saved Allstate, which was dying trapped in inner-city Sears stores under the escalators with company employed agents not capable of change. GEICO dropped being a pure direct response carrier and moved to a neighborhood agent system (captive), because direct-writing was trapping them in population centers of 500,000 or more with auto loss ratios out of sight. But GEICO needed more P/L insurance products in order for those

agents to earn a reasonable living. So, GEICO became a mega-independent agent/broker to other insurers, allowing GEICO to sell a full line of P/L P&C products, with other carriers keeping the risk and claims processing headaches (and losing direct control of the agency force doing the selling).

Nationwide Insurance Company (historically, a captive agent and direct-writer carrier) will as of mid2020 be completely IA and very happy with their transformation. It has resulted in lower costs, higher profitability and more book growth stability for the company.

Liberty Mutual came into the IA system during the W/C crisis of the 1980s. Liberty is once again expanding their IA force. Hippo, another “all-tech” no-agent “insurer,” is, under the hood,

an agency pass-through operation, as are several others of this same heading, “new insurers.” It is other carriers that hold the insurance contracts and risk.

And the list goes on….

The drumbeat of these self-serving doom-and-gloom messages spread by our competitors must not be allowed to have a dispiriting influence on independent agents and brokers. The fact remains that the Independent Agency distribution system continues to grow.

It has stood the test of time and will continue to do so in the future, for a very simple reason: independent agents provide customers, and insurers, with what they want.

Patricia A. Borowski is senior vice president emeritus of PIA National.

SELECTIVE IS PROUD TO RECEIVE THE

2019 COMPANY AWARD OF EXCELLENCE

FROM THE NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

© 2019 Selective Ins. Group, Inc., Branchville, NJ. Products vary by jurisdiction, terms, and conditions and are provided by Selective Ins. Co. of America and its insurer affiliates. Details at selective.com/about/affiliated-insurers.aspx. INST-19-046

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www.pianet.com | PIA CONNECTION

GUEST COLUMN

By Dan Corbin, CPCU, CIC, LUTC

AGENT/BROKER OF RECORD CHANGES There are no complicated laws and regulations that govern the policyholder’s right to cancel. The Insurance Department is not around a rather delicate subject within the producer community: compelled to interfere when the policyholder cancels, since it divorce. No, I’m not talking about the husband-and-wife type considers the insurer capable of protecting itself. It is when the of divorce, but rather the producer-and-client type of divorce. insurer wants to cancel that all the laws and regulations come Breaking up is always a traumatic experience, but it is made into play to protect the policyholder. all the more lamentable because it is so one-sided. The client is Since there are no statutes or regulations that govern the routinely the “breaker” and the producer is relegated to being insured’s request to cancel a policy, these rights are determined the “breakee”; as not many producers break up with their clients, from the policy provisions, which typically state the following: it usually is the client who parts ways with the producer.

“The [first] Named Insured shown in the Declarations may However, the client rarely acts alone in this commercial cancel this policy by mailing or delivering to us advance writtragedy. Lurking behind the typical breakup is the “other proten notice of cancellation.” ducer” who seduced the client, arousing within a new passion You will notice that there is no reference to a for financial security. In the daily course of events, prescribed notice; it is nondescript. Usually, the this drama repeats itself many times. Sometimes, WHILE THERE only requirements are that the notice be “written,” the producer plays the role of the “breakee” and MAY BE “50 that the notice precede the effective time and that sometimes the producer plays the role of the the notice originate from the named insured (or “other producer.” Strangely, the “other producer” WAYS TO LEAVE first-named insured, according to most commeris rewarded handsomely for his or her exploits; in YOUR LOVER,” cial policies). There is no contractual requirement fact, a producer is deemed successful if he or she succeeds at being the “other producer” more often THERE ARE ONLY for the named insured to make the request on an ACORD 35 form. The insurer would have to honor than the “breakee.”

TWO WAYS TO an otherwise valid request, even if written on a There is, of course, the nasty business of fornapkin (producer folklore). mally declaring the breakup. Since the client is not LEAVE YOUR Yet, providing the policyholder with the disposed to directly inform the producer of his PRODUCER ACORD 35 form to effect cancellation makes pracinfidelity, the client often delegates performance tical sense. For one thing, insurers like to receive of the treacherous deed to the “other producer.” it and they may “stamp their feet” until they get it (something Sometimes, the new relationship is contingent upon such delthey have no legal ground to do). It also helps to ensure that egation. Thus, the stage is set for a confrontation between the the cancellation is binding by recording a witness for the “other producer” and the “breakee.” signature of the named insured. And, because the ACORD 35 As the Wicked Witch of the West would say, “These things form captures all pertinent information regarding cancellation, must be done very de-li-cate-ly.” The “other producer” carefully including other interests in the policy, it serves as the ideal slides an ACORD 35 Cancellation Request/Policy Release form vehicle to accomplish the cancellation. out of the briefcase and places it before the client and says, “I’ll Years ago, insurance agents petitioned ACORD to come up take care of notifying the ‘breakee.’ I just need you to sign right with a suitable standard form to accomplish policy cancellahere.” And there you go, the breakup is official. tion requested by the insured, which resulted in the ACORD 35 form. This form’s existence is merely an accommodation to TERMINATION RULES the insurance community and it is not meant to be a mandate While there may be “50 ways to leave your lover,” there are from any authority. In fact, while there is a place for the agent only two ways to leave your producer: 1) the client can retain to sign the form under Producer’s Signature, there is nothing his policy and request another producer; or 2) the client can simply terminate the policy. I say, “simply,” because it is simple.

THE FOLLOWING DISCUSSION IS CENTERED

CONTINUED ON PAGE 16

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AGENT/BROKER OF RECORD CHANGES CONTINUED FROM PAGE 15

in the policy that requires the agent to sign it. Of course, proper completion of this form is advisable and it should be utilized whenever possible, but we must understand that it is not required.

TERMINATION ETIQUETTE Now let’s bring the “other producer” back into the discussion.

Must the insurer honor a cancellation request submitted on an ACORD 35 form completed and witnessed by the “other producer”? Why not? It’s a written request, which is all the policy requires. If you review ACORD’s instructions for completing the ACORD 35 form, you will notice that it states in regard to the Producer’s Signature: “Accommodates the signature of the authorized representative (e.g., producer, agent, broker, etc.) completing this form.” Consequently, either the “old” agent or the “new” agent can legitimately sign the form, depending on who is completing it.

In my experience, sending the signed ACORD 35 form to the “breakee” often results in the “breakee” sitting on the request and not submitting it to the insurer or finding some way to force the policyholder through additional hoops. Truly, breaking up is hard for some producers.

In order to overcome the “breakee’s” animosity, I made it a practice of sending the original ACORD 35 form to the insurer and a copy to the “breakee.” This way the insurer can act upon a valid request to cancel and the “breakee” is not left unaware of the policyholder’s intentions. Though notifying only the insurer should be sufficient to get the policy canceled, it may not satisfy the client’s expectations. The client was relieved to avoid a messy confrontation with the “breakee” by accepting the “other producer’s” offer to take care of the notification, so you don’t want the client getting an inquiry from the “breakee” asking why the policy canceled. This is the unpleasant conversation the client was attempting to avoid. Of course, the “breakee” may contact the client anyway in an attempt to salvage the relationship.

Sometimes, out of ignorance, an insurer does not process the policyholder’s request to cancel, thinking it must obtain an ACORD 35 form issued by the “breakee.” The spurned “breakee” may then be tempted to prolong the process as long as possible. In such cases a little reminder of the policyholder’s contractual rights can spur the insurer into action, despite the delay tactics of the “breakee.”

KEEPING IT IN THE FAMILY If a client desires a new producer relationship, but wants to keep his policy and stay within the same insurer family, he may decide to date the “breakee’s” sister; another producer authorized by that carrier to service the existing policy. The “sister” producer can submit a signed ACORD 36 Agent/Broker of Record Change form (or its equivalent) to the insurer for the purpose of conveying the policyholder’s intentions to change business partners. Agent/broker of record changes are not governed by state laws or regulations, so the Insurance Department will not intervene. Insurers honor these requests simply as an accommodation to the policyholder and their use may, or may not, be addressed in the producer’s contract with the insurer. Whether the insurer gives the “breakee” a window of opportunity to obtain a rescission letter from the client before processing the ACORD 36 is entirely up to the insurer.

My view is that it is a good idea for the insurer to establish a waiting period before processing the ACORD 36 form, as these requests can be subject to abuse. It is much too easy for the “sister” producer to obtain a signature without the client’s full comprehension of its ramifications. I have seen many of these agent/broker changes rescinded.

Also, in the absence of a written agreement that addresses commissions when an agent/broker change occurs, disputes can arise. For example, who receives the commissions for premium installments paid after the agent/broker change occurs? Or, who is responsible for returning commissions if the policy terminates after the agent/broker change? It is quite possible the “sister” producer will be billed for return commissions, when the “breakee” producer is the one who was paid the commissions. Without a formal agreement with the insurer, the best the producer can hope for is that the insurer is consistent in handling these matters so it is fair when the roles are reversed.

THE CLIENT COMES FIRST Nobody wants an “achy breaky heart” and insurance producers are no exception. In the commercial world of clients and producers, breakups are inevitable. However, there is no reason to be vindictive; after all, the roles may reverse with the next client encounter. Remember, we serve the client and it’s the client’s wishes that come first.

Dan Corbin, CPCU, CIC, LUTC, is director of research for PIA Northeast. He can be reached at resourcecenter@pia.org.

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PIA ISSUES CALL FOR SPRING AWARD NOMINATIONS tions for three prestigious awards that will be bestowed in the spring of 2020: the Professional Agent of the Year, Customer Service Representative (CSR) of the Year and Young Insurance Professional (YIP) of the Year awards.

The deadline for all nominations is February 14, 2020.

Nomination forms are currently available to download at www.pianet.com/awards. To enter, all completed nomination forms must be emailed to awards@pianet.org.

All three awards will be presented during a gala luncheon ceremony on Tuesday, March 31, 2020, in Arlington, Virginia, held in conjunction with the 2020 PIA Advocacy Day and Spring Governance meetings.

THE PIA NATIONAL PROFESSIONAL AGENT OF THE YEAR AWARD PIA’s highest national award of distinction is presented annually to one outstanding PIA member agent who has distinguished himself or herself as an independent agent. Each nominee is judged on six criteria, his or her: 1. Contributions to their agency.

2. Professional education and experience.

3. Contributions to the American Agency System.

4. Contributions to PIA. 5. Involvement in community affairs.

6. Performance as an industry spokesperson.

AWARD DETAILS Transportation and accommodations for the Customer Service Representative (CSR) of the Year and the Young Insurance Professional (YIP) of the Year Award winners and one guest, along with a $1,000 cash prize, will be provided.

PIA strongly urges submitting additional materials that support each nomination. Supplemental materials are not required, but these materials include (but are not limited to) letters of endorsement, testimonials, awards, photographs, and news clips or press releases about the nominee.

Nominations for the CSR and YIP awards may be made by any PIA member. Nominations for Professional Agent of the Year are made exclusively by PIA state or regional affiliates.

However, in states that receive their services directly from PIA National, all PIA members may nominate a Professional Agent of the Year.

Winners of corresponding state-level PIA Awards within the past 12 months automatically advance to the PIA National Awards competition. PIA Affiliates need only complete the state-level, PIA Affiliate nomination form to advance a statelevel winner to the national competition, and may L E PAR attach any supplemental AC materials that were used in their state process for consideration in the national competition.

PIA members submit2019 PIA NATIONAL ting nominations will find PINNACLE PARTNERS nomination forms and further instructions at: Encompass Insurance www.pianet.com/awards.

Encova Insurance For questions or additional Erie Insurance information on the awards, State Auto Insurance contact Sade Hale at Companies awards@pianet.org or (703) 518-1350.

ER

PIA CONNECTION | www.pianet.com

This is the 15th consecutive year that the PIA National YIP of the Year Award is sponsored by Rough Notes magazine.

TN

The PIA National Customer Service Representative (CSR) of the Year Award is presented to an outstanding agency customer service representative who works for a PIA member insurance agency. CSR of the Year nominees are nominated by a PIA member agency.

The recipient must be an employee of a PIA member agency and not an agency owner or principal. Each CSR nominee is judged on five criteria; he or she must: 1. Possess exemplary talents, abilities, and aptitudes.

2. Exhibit dedication to a PIA member agency.

3. Provide clients with a high level of customer service.

4. Demonstrate a commitment to betterment through education.

5. Be a contributing member of his or her community.

The PIA National Young Insurance Professional (YIP) of the Year Award is presented to an outstanding individual who works for or owns a PIA member agency. In states where the PIA affiliate has a Young Insurance Professionals association there is no age cut-off, however, the nominee must be a member of that association. In states where there is no PIAaffiliated Young Insurance Professionals association, the nominee must be under the age of 40 on the nomination deadline.

Nominations for the YIP of the Year Award are submitted by PIA members or PIA state and regional affiliate associations.

Each YIP nominee is judged on his or her: 1. Contributions to his or her agency.

2. Professional education and experience.

3. Contribution to the American Agency System.

4. Contribution to PIA. 5. Involvement in community affairs.

6. Performance as an industry spokesperson.

P I NN

PIA NATIONAL IS NOW ACCEPTING NOMINA-

2019 V12 | 17

AGENCY MARKETING iStockphoto.com/Mironov Konstantin

$

AVOIDING THE NOISE — DIRECT MAIL MARKETING WORKS

By Steve Bommarito than doubled—reporting an astounding 190% increase. This showcases that our mailboxes are getting more attention every day. In fact, DMA research shows that 84% of millennials take the time to look through their mail and 64% would rather scan for useful information in the mail than e-mail. Direct mail isn’t just getting attention, it’s focused attention. Your audience is dedicating time to reviewing what’s in their mailbox.

AS A MARKETER, I’M REGULARLY ASKED TO advise on missed marketing opportunities to grow. These days, the answer is simple: Direct Mail.

IDENTIFYING THE NOISE Today each of us is exposed to thousands of ads each day. We’re bombarded by advertisements every time we browse online, listen to a podcast or watch a video. The advertiser’s ultimate goal is to have you see the ad and abandon what you’re doing to interact with their promotional materials. As marketers, we aim to avoid the noise, get noticed, and ultimately activate our consumers to take a desired action.

TUNING THE RIGHT AUDIENCE It’s never been easier to leverage direct mail software to intelligently target the right audience for your promotion. This empowers you to reach the right prospects, so your campaign has higher conversion rates and better ROI. That way you’re able to put tangible media in the hands of your audience without the noise; allowing that piece of mail to make an impact and generate response. After receiving a mailer, 44 percent of people visit the company’s website, 34 percent search for them online and 26 percent save it for future reference, according to the DMA.

BEING AT PEACE THROUGH NUMBERS According to the 2018 Data and Marketing (theDMA.org) Factbook, since 2015, customer response rates for direct mail have increased 37% and prospect response rates have more

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.

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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.

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CHOOSING A PRODUCER That’s where the Unites States Postal Service’s partners and other direct mail marketing vendors come in. We can make sending a direct mail campaign as easy as sending an email. This empowers you to engage consumers, build relationships and grow. We take pride in how easy it is to use targeting tools so that you can reach the right homes. Our direct mail and area mail solutions are that handshake for marketers to begin that relationship. You can use our intuitive technology to lower your customer acquisition costs and grow faster than ever before with our 1:1 personalized direct mail marketing solutions.

8/19/19 9:32 PM

Steve Bommarito is a marketing director with One Brand Marketing.

One Brand’s strategic partnership with the USPS allows for cost-effective mail while maintaining high-quality postcards with relevant and actionable media. Using One Brand Marketing’s technology, marketers can measure and finetune a marketing strategy targeted on the right consumers with the proper messaging. PIA members can check out One Brand’s technology for themselves in the PIA DMV: PIA’s Direct Marketing Vault (www.piadmv.com).

www.pianet.com | PIA CONNECTION

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YOU GOT YOUR DIGITAL MARKETING IN MY DIRECT MAIL CAMPAIGN Just like chocolate and peanut butter found their way together in those old television commercials, digital marketing and direct mail work great together. Better yet, PIA makes it easy to launch a hybrid marketing campaign that combines the two.

The answer is in the PIA DMV: PIA’s Direct Marketing Vault.

Through the PIA DMV, PIA members can market to USPS postal routes that match their target demographics.

These marketing campaigns begin with creative postcards— PIA has created some for you or our partner can create one just for you. PIA members can then add on a digital marketing campaign that uses geofencing technology to target the same recipients with digital ads that look like the postcards.

Develop new prospects with the PIA DMV. Learn more on PIA National’s website, www.pianet.com, or go directly to www.piadmv.com.

INTRODUCING PIA’S NEW PERPETUATION PLANNING PROGRAM PIA AND THE PIA PARTNERSHIP ARE PROUD TO INTRODUCE AGENCY Journey Mapping, a perpetuation/succession planning program for current and future agency owners.

Why is this so important? Every agency will eventually perpetuate at the death, disability or retirement of its owners or earlier sale of the agency. Yet few agency owners adequately prepare for perpetuation and fewer still understand the principals of valuation to properly calculate their business’ value in a succession or perpetuation.

Agency Journey Mapping explains the means and methods of determining agency valuation based on cash flow potential and future earnings potential. The program then expands to identify how agencies may plan for their own internal or external succession to achieve the goals of the perpetuator, the successor, and the staff and clients of the agency.

Join us to learn about: • Agency Valuation • Internal Perpetuation Methods • External Perpetuation Methods • Contingency Buy/Sell Agreements

AGENC JOURN MAPPI

AGENCY JOURNEY MAPPING

Learn how to create a perpetuation plan for your agency to: • maximize your retirement income when you leave your agency AGENCYJOURNEYMAPPING • protect your family’s income should you die or become disabled HOW DO I ACCESS AGENCY JOURNEY MAPPING? Agency Journey Mapping began as a series of live seminars held in cities across the country.

That live program has been recorded and is now availableAGENCYJOURNEYMAPPING on-demand for $99 per agency.

Access recordings of the full 4-hour seminar and a resource library that you can use to create a perpetuation plan that is personalized to you and your agency.

Prefer to attend a live seminar? Let us know so we can plan a live seminar in your area.

Attendees of live seminars also receive access to the on-demand website so that they can share the information with partners and potential successors while creating their personalized perpetuation plan. Our live seminars generally qualify for 4-hours of continuing education credits—the on-demand seminar does not—so attendees can take that off their To Do list as well. Live seminars also include a 30-minute private consultation with PIA’s perpetuation partner, Al Diamond of Agency Consulting Group, Inc.

Access PIA’s Agency Journey Mapping program at www.agencyjourneymapping.com.

Brought to you by The PIA Partnership in conjunction with Al Diamond of Agency Consulting Group, Inc. Agency Journey Mapping is brought to you by The PIA Partnership, a joint effort of leading insurance companies and PIA. Thank you to the members of The PIA Partnership: Central Insurance Companies, Encompass Insurance, Erie Insurance, Liberty Mutual Insurance, MetLife Auto & Home, National General Insurance, Progressive Insurance, Selective Insurance Group, State Auto Insurance Companies and The Hanover Insurance Group.

The PIA Partnership’s content partner for the Agency Journey Mapping program is Al Diamond of Agency Consulting Group, Inc. Al and his team have many years of experience helping independent insurance agents value and create perpetuation plans for their agencies.

PIA CONNECTION | www.pianet.com

2019 V12 | 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. ✦ PIA BRANDING PROGRAM. Print ads, radio commercials, consumer-oriented flyers and social Dana’s media support for PIA members. pick www.piabrandingprogram.com

✦ 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.

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

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Call (860) 547-5006.

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✦ PIA CYBER INSURANCE: Robust coverage tailored to small and mid-sized businesses. Coverage with special PIA-only enhancements is available 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!

✦ 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

✦ AGENCY JOURNEY MAPPING: Value your agency, maximize your retirement income, and plan for unexpected Alexi’s death/disability while creating a ✦ PIA AGENCY MARKETING GUIDE. pick perpetuation plan for your agency.

Hands-on marketing tips from industry experts. Published annually. ✦ CYBER 101: Cyber education for you ✦ ROUGH NOTES - ADVANTAGE PLUS. and your clients.

Identifies risk exposures. Provides detailed coverage analysis. PIA member ✦ SMALL BUSINESS INSURANCE & THE price $600 annually (reg. $700). Call INTERNET—THE VOICE OF THE CL 800-428-4384. Use your PIA member CUSTOMER: Stay ahead of online ID# above name on mailing label. competition in commercial lines. ✦ 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.

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

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

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www.pianet.com | PIA CONNECTION

PIA MEMBER BENEFIT SPOTLIGHT

CYBER 101 Cyber Education Resources

SPEAK CONFIDENTLY WITH YOUR CLIENTS ABOUT CYBER INSURANCE CYBER 101 IS AN EDUCATIONAL RESOURCE CREATED BY PIA and The PIA Partnership to help educate PIA members and their clients about the seven most common cyber risks faced by small and mid-sized businesses, as well as the business practices and insurance coverages that can reduce those risks.

Cyber 101 focuses on seven key areas of risk: • Fraudulent funds transfer • Extortion/ransomware • Social engineering • Business interruption • Data breach/privacy • Network security • Website media liability Agents can learn more about each risk with additional resources such as interactive claims examples that demonstrate loss risks to clients, 1-page PDFS explaining the risk, and 30-minute webinars. PIA agents can also personalize and provide their clients with general cyber educational resources.

For additional information about The PIA Partnership, please visit www.ThePIAPartnership.com.

Thank you to the current PIA Partnership companies: Central Insurance Company, Encompass Insurance, Erie Insurance, Liberty Mutual Insurance, MetLife Auto & Home, National General Insurance, Progressive Insurance, Selective Insurance Group, State Auto Insurance Companies, and The Hanover Insurance Group.

Visit: www.pianet.com/cyber101

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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 V12 | 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: staci@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 V12

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

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