PIA Connection - Insurance in the COVID Age

The PIA Partnership Introduces Winning@Talent

pages 12–13 2020 V3

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

INSURANCE IN THE COVID AGE

PIA MEMBER BENEFIT SPOTLIGHT:

Cyber 101 page 21

AGENTS OF

BUNDLING BEYOND HOME AND AUTO Independent agent Kim Riha understands the value of quality protection because she not only sells Progressive—she’s a customer. When a tornado swept her camper away, she knew “the coverage Progressive provided was perfect. As far as toys go, there’s not another carrier that has the coverage Progressive has.” It’s why Kim confidently offers a full suite of specialized recreational lines coverage.

More quality products, more business.

It’s that simple.

AgentsofProgressive.com

KIM RIHA RIHA, ACCREDITED INSURANCE GROUP | OMAHA, NE

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.

2020 V3

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS PRESIDENT Dennis D. Kuhnke, CIC, CPIA (WI) dkuhnke@robertsonryan.com

YOUR AMS SYSTEM HAS BEEN COMPROMISED! PAGE 16 WHO IS RESPONSIBLE FOR WHAT?

PRESIDENT-ELECT Wayne F. White, CPA, CPIA, PFMM (AR) wwhite1948@aol.com

CONTENTS

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

NEWS BRIEF 6-7 Wimbledon, British Open Has Pandemic Insurance…Watch Out for Coronavirus Scams!...Flooding, Hurricane Seasons Coming…Number of Millionaires Declines in 2020…Perspectives on Today’s Crisis From a 102-year-old…Q1 P/C Rates Were Stable.

PIA LEGISLATIVE PRIORITIES (NON-COVID)

8

PIA ENGAGED IN CONGRESSIONAL RESPONSE TO CORONAVIRUS PIA National VP of Government Relations Jon Gentile reports.

9

10

HOW COVID-19 AFFECTS AGENCY VALUE Guest commentary by Jon Persky, CIC, CPA, PHR.

IS SELLING INSURANCE TO YOUNG PEOPLE THAT 11 CHALLENGING? Guest column by Alicja Grzadkowska, senior news editor at Insurance Business America.

THE PIA PARTNERSHIP LAUNCHES WINNING@TALENT 12-13 New toolkit to help insurance agencies attract, recruit and retain top talent.

STALWART PIA LEADER RON VON HADEN DIES 15 “When you look around now—and see PIA achieving greater things— know that Ron played a big part in PIA’s success,” said PIA Executive Vice President & CEO Mike Becker.

CONTRIBUTING EDITOR Patricia A. Borowski, CPIW

YOUR AMS SYSTEM HAS BEEN COMPROMISED! 16 WHO IS RESPONSIBLE FOR WHAT? Chad Guyer of ABA Insurance Services on the need for cyber insurance.

PRODUCTION EDITOR Laurel Prucha Moran | laurelpm@blueroomstudio.com

“BOND” DOESN’T HAVE TO BE A FOUR-LETTER WORD Guest column by Jamie McGrath of Surety Bond Professionals.

February 2020

BUYING BEHAVIORS AND PREFERENCES OF 18-19 YOUNG ADULTS

By Kristen Hackney, executive vice president of customer experience at Applied Systems.

PIA Connection is published ten times yearly by the National Association of Professional Insurance Agents.

419 North Lee Street Alexandria, Virginia 22314 ©2020 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.

17

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

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/sv_sunny

2020 V3 | 3

Grow Your Book of Business and

Receive Higher Commission Rates With PIA Market Access • Access more than 50 national and specialty carriers o Begin Sign Up t Months o w T r u o Y

FREE!

• Real-time rating for personal and commercial lines • Own your book of business • Pay no exit fees if you leave • Low monthly access fees

Average Gross Commissions* COMMERCIAL:

NEW

REN

PIA Market Access Members receive a percentage of the gross commission received from the carrier based on their book value:

Comm. Auto

10–15%

8–15%

BOP

10–15%

8–10%

GLI

10–15%

10–15%

$0–$50,000

67%

Property

10–15%

12–15%

$50,001–$100,000

69%

Umbrella

10–15%

10–12%

$100,001–$200,000

71%

8–12%

8–10%

$200,001–$500,000

74%

10–15%

10–15%

$500,001 and up

77%

NEW

REN

Home

10–15%

10–12%

Auto

9–15%

9–12%

Umbrella

10–15%

10–12%

Condo

13–15%

10–13%

Renters

12–15%

12–15%

Dwelling Fire

10–15%

10–13%

M. Home

12–15%

12%

Motorcycle

10–15%

10–15%

Classic Car

10–15%

12%

Work Comp Prof. Lines PERSONAL:

BOOK VALUE:

% PAID

Learn more at

PIAMARKETACCESS.COM powered by

*These rates are based on the average amount paid by the carrier.

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

FROM THE PRESIDENT “THESE ARE THE TIMES THAT TRY MEN’S SOULS.” When patriot Thomas Paine wrote these words on December 23, 1776, the future of what would become the United States of America was still very much in doubt. Our nation’s founding fathers sustained themselves with a fervent belief that their new nation would ultimately prevail.

Throughout our nation’s history, we have faced monumental challenges. A civil war. Two world wars. A Great Depression.

In each case, Americans came together, stayed strong and prevailed.

Other times have been easier. We have experienced long periods of peace and prosperity.

Now, things have gotten tougher again.

In 2020, we are confronted with a different kind of enemy, one that cannot be seen. In the few short months since the coronavirus first appeared, we have fought back in the way we must – by keeping to ourselves, to protect ourselves and each other. While this strategy is working to prevent things from

getting a lot worse, it comes at a cost to our economy. But it is a burden we must shoulder.

Even though personal contact with our clients is at the core of the agency business, we are discovering that there is much we can accomplish with technology, now that we must. Professional insurance agents are working in different ways, but they are still providing the personal advice and service that our clients need and deserve.

We are all facing a new and unexpected challenge. It is important that we all face it together, and remember that this, too, shall pass.

Dennis Kuhnke President

FROM THE CEO AS WE ALL ARE PAINFULLY AWARE, MUCH OF what we in the insurance industry now face is uniquely challenging. Over recent weeks, we have all been doing what we can to help our policyholders cope with the fallout of the coronavirus crisis. That is why, to better serve PIA members, PIA National has redoubled its efforts across the board.

We have increased our advocacy with Congress in light of legislation being proposed and enacted in response to the coronavirus crisis. We have taken a leadership role in supporting proposals that can help our members. Also, along with the rest of the industry, we adamantly oppose ill-advised bills that would apply business interruption (BI) coverage where it doesn’t exist.

We have enhanced our communications with a focus on COVID-19 issues as they affect agencies. We have used videos, webinars, and live video conferencing to disseminate information and encourage dialogue and problem solving among members across the country. We created and maintain a coronavirus web page with up-to-date resources.

PIA CONNECTION | www.pianet.com

Our carrier partners have been particularly responsive during this crisis. Every day, carriers are announcing new actions designed to help their insureds, as well as provide support for their independent agent partners.

All of the carrier representatives of The PIA Partnership and their respective CEOs are continuing to demonstrate their steadfast commitment to the responsive, personal service that is the hallmark of PIA members and of the best delivery system for insurance products, the independent agent delivery system.

We are all in this together. Together, we will prevail.

Mike Becker Executive Vice President & CEO

2020 V3 | 5

!

NEWS BRIEF WIMBLEDON, BRITISH OPEN HAD PANDEMIC INSURANCE For each of the past 17 years, the All-England Lawn Tennis Club has paid for an insurance policy to guard against losses if Wimbledon should have to be canceled in the event of a worldwide pandemic.

iStockphoto/ ronstik

That preparation will pay off this year. The insurance will result in a payment of $141 million— or nearly half the amount that the club expects to lose as a result of the cancellation of this year’s tennis tournament. Wimbledon was scheduled to run from June 29 to July 12.

Also covered by pandemic insurance: the British Open.

WATCH OUT FOR CORONAVIRUS SCAMS! Even in a global pandemic, there are always people trying to steal a buck.

This is an attempt to steal

numbers, or your health

Forecasters are anticipating

your money or personal

insurance policy number in

another busy year for the

information. Talk to a doc-

an email, text, or phone call

Atlantic Basin in 2020, on

tor if you’re sick or think

you didn’t make.

the heels of an active 2019 season. The 2019 season

you might need a test.

FLOODING, HURRICANE SEASONS COMING

marked the fourth consecu-

Scams related to COVID-19

Be wary of calls or emails

are the latest threat. The

warning you about prob-

Texas Department of Insur-

lems with your insurance

As if the COVID-19 crisis

ance is out with some tips

plan. Someone could be

was not enough to contend

for avoiding being ripped

trying to get you to reveal

with, we are coming up on

off, which are appropriate

personal information. Ways

spring flooding season, fol-

for the entire country:

you can avoid scams: Do

lowed by hurricane season.

Criminals may try to sell

not answer calls or respond

With the 2020 Atlantic

you “coronavirus insur-

to texts from unknown

hurricane season set to

ance.” It’s a scam. Remem-

numbers. Do not click on

being in two months, Accu-

ber, if it seems too good to

links in text messages. Do

Weather meteorologists

be true, it likely is. Another

not follow links or click

say there could be 14 to 18

scam is selling fake

on attachments in social

tropical storms. Seven to

coronavirus treatments or

media posts about virus

nine are forecast to become

questionable cures. You

“cures.” Never share your

hurricanes, and two to four

Fast forward just a few

might get a robocall offer-

Social Security number,

are predicted to strengthen

months and it’s a starkly

ing coronavirus test kits.

bank account or routing

into major hurricanes.

different picture. The num-

6 | 2020 V3

tive year of above-average activity in the basin and was tied with 1969 for the fourth most-active hurricane season on record.

NUMBER OF MILLIONAIRES DECLINES IN 2020 There were an unprecedented 11 million American millionaires at the close of 2019.

www.pianet.com | PIA CONNECTION

!

NEWS BRIEF

ber of households in the U.S. above that threshold has dropped by at least 500,000 as of Friday, March 20 according to research firm Spectrem Group. The wealth destruction at the very top has been especially steep. The world’s

“IF WE WAIT FOR A PANDEMIC TO APPEAR, IT WILL BE TOO LATE TO PREPARE. AND ONE DAY MANY LIVES COULD BE NEEDLESSLY LOST BECAUSE WE FAILED TO ACT TODAY. A PANDEMIC IS A LOT LIKE A FOREST FIRE, IF CAUGHT EARLY IT MIGHT BE EXTINGUISHED WITH LIMITED DAMAGE. IF ALLOWED TO SMOLDER, UNDETECTED, IT CAN GROW TO AN INFERNO THAT CAN SPREAD QUICKLY BEYOND OUR ABILITY TO CONTROL IT.” —PRESIDENT GEORGE W. BUSH, NOVEMBER 2005

500 richest people have lost almost $1.3 trillion since the start of the year,

current coronavirus crisis.

according to the Bloom-

“The grocery store shelves

berg Billionaires Index.

were empty,” she said.

“It wasn’t quite like now,

PERSPECTIVE ON TODAY’S CRISIS FROM A 102-YEAR-OLD

because you were allowed

making a list every morn-

rates increased 7%, and

ing of what I had to do. It

professional liability rates

was the only thing I could

were up 6.25%. Data shows

control, and I stuck to it.”

that commercial property, employment practices liabil-

same fear. That we didn’t

Q1 P/C RATES WERE STABLE

know what was going

According to MarketScout

to happen.” She said it

Corp., U.S. commercial

reminds her of the feeling

property and casualty insur-

of being stuck inside and a

ance rates were stable dur-

bit scared, and of not know-

ing the first quarter of this

business interruption, busi-

ing what the future holds.

year. MarketScout reports

ness owners policies, inland

a global pandemic. She

“I’ve been through so

that average rate increases

marine, and crime were

was a teenager during the

many things,” Ellson said.

for U.S. commercial insur-

up 4.0%.

Great Depression. She was

“To cope with this virus,

ance buyers were 4.5% in

a schoolteacher and young

and all that’s going on, I

the first quarter. That is a

wife during World War II.

would tell people to not get

5% decrease from the fourth

She has reflected on her

stressed about planning

quarter of 2019. Directors

coronavirus will be seen

experience during World

far ahead. You can’t do it.

and officers liability rates

in the second, third, and

War II as it relates to the

A long time ago, I started

rose 7.5%, commercial auto

fourth quarters.

Lucille Ellson is 102 years old. She was born Dec. 30, 1917, right before a flu spread through military camps in Europe and the United States and became

outside, but there was the

ity, and umbrella/excess insurance rates jumped 4.5% in the first quarter.

Meanwhile, general liability rates were up 4.25%, and

MarketScout CEO Richard Kerr says the impact of the

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

PIA CONNECTION | www.pianet.com

2020 V3 | 7

PIA LEGISLATIVE PRIORITIES (NON-COVID) SINCE THE ONSET OF THE coronavirus crisis, PIA National’s Government Relations staff has been deeply involved in successful efforts leading to passage of several pieces of legislation addressing the pandemic and is advocating other related measures.

While protecting and advancing the interests of PIA members and their clients during the ongoing crisis will be our top priority, there are other legislative priorities for 2020 which may be addressed, if Congress is able to return to dealing with more routine business at some point. Here’s a look at some of these issues: FLOOD INSURANCE: PIA supports the long-term reauthorization of the National Flood Insurance Program (NFIP) and has endorsed a legislative package that unanimously passed the House Financial Services Committee (H.R. 3167/H.R. 3111).

This legislation includes the 5-year reauthorization of the program and issues PIA has championed such as a continuous coverage protection for policyholders who leave the NFIP to purchase a private flood policy; and the maintenance of the Write-YourOwn reimbursement rate which will prevent guaranteed cuts to agent commissions for selling NFIP policies, among other important provisions.

PIA will advocate for the passage of the House NFIP package out of the House and Senate without major changes before the program is set to expire September 30, 2020.

8 | 2020 V3

CANNABIS SAFE HARBOR: PIA strongly supports the Clarifying Law Around Insurance Marijuana (CLAIM) Act (H.R. 4074/S. 2201), which prevents federal criminal prosecution of insurance agents and carriers for engaging in the business of insuring cannabis-related businesses in states where cannabis is legal in some form. PIA views its position as respectful of state insurance laws and protective of independent agents who are at risk of criminal penalty for following local laws.

PIA will advocate to ensure that the provisions protecting insurance agents in the CLAIM Act are included in any legislation considered by the Senate and any final product that passes Congress.

TAX DEDUCTION: PIA supports the Main Street Tax Certainty Act (H.R. 216/S. 1149), which would make permanent the 20 percent deduction available to some passthrough corporations that PIA strongly advocated for in the 2017 tax reform law. However, unlike the tax benefits provided to C corporations, the passthrough deduction is a temporary provision of the tax law. As a result, the benefit available to some PIA members whose agencies are organized as passthroughs will end on December 31, 2025, unless Congress acts.

PIA will ask Congress to ensure this important tax relief for owners of some small passthrough businesses is made permanent before its expiration.

REPEAL THE FEDERAL INSURANCE OFFICE (FIO): PIA supports the full repeal of the Federal Insurance Office (FIO) and has led efforts to develop the Federal Insurance Office Abolishment Act (H.R. 1862/S. 1586). The FIO was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act and is an ongoing threat to the successful state insurance regulatory system.

PIA will advocate to build support in Congress for the repeal of the FIO. Crop Insurance: On February 10, 2020, President Trump released his FY 2021 budget proposal, which includes cutting the federal crop insurance program by $25 billion over the next decade. The proposed cuts would compromise the affordability and availability of crop insurance for farmers, seriously undermining the strength of the farm safety net during a time of real struggle for farmers and rural America.

PIA will ask Congress to reject these proposed cuts to crop insurance and oppose any amendment that would seek to cut the program.

Please see PIA’s 2020 legislative priorities for a detailed look at these issues.

CAPITOL HILL REPORT

By Jon Gentile Vice President, Government Relations PIA National

PIA ENGAGED IN CONGRESSIONAL RESPONSE TO CORONAVIRUS THE CORONAVIRUS PANDEMIC HAS BROUGHT serious financial challenges to the U.S. economy. PIA National has been actively engaged in the development of legislation to ensure emergency support for employees and businesses that have passed into law.

In March, Congress began reacting legislatively to the coronavirus when it passed the first coronavirus response bill, H.R. 6074, the Coronavirus Preparedness and Response Supplemental Appropriations Act. The president signed this funding bill into law March 6th providing $8.3 billion to federal agencies for preparation and prevention efforts, as well as research to produce a vaccine for the virus.

The following two coronavirus response bills have direct relevance for PIA members and many of their clients.

FAMILIES FIRST ACT The second action Congress took in response to the spread of the coronavirus has a direct impact on PIA members and their clients, H.R. 6201, the Families First Coronavirus Response Act (Families First Act). The U.S. House passed it on March 16, the Senate followed unanimously on March 18th and the president signed it into law that same evening.

The Families First Act included provisions for free COVID19 (commonly referred to as coronavirus) testing, food assistance, and unemployment benefits.

The law allows for important provisions to help employers and employees navigate the consequences of state shutdown orders and federal guidance on remaining home: • Emergency Sick Leave: Employers with fewer than 500 employees are required to provide two weeks of sick time for individuals impacted by the virus • Emergency Paid Medical and Family Leave: Employers with fewer than 500 employees are required to provide up to 12 weeks of job protected leave for full and part time workers, if the employees cannot work due to a child not being able to attend school or their childcare provider • Exclusion: Businesses with fewer than 50 employees may qualify for an exemption from the requirement to provide leave due to school closings or if childcare is unavailable if the leave requirements would jeopardize the viability of the business as a going concern.

• Tax credits: Employers must pay for these benefits, but PIA CONNECTION | www.pianet.com

they are eligible for receiving a tax credit for doing so.

Further details on this law can be found on the PIA website in the PIA Member Guide to Relevant Provisions in the Families First Act. CARES ACT On March 27, the president signed into law H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion emergency package intended to provide urgently needed aid to several sectors of the economy.

The CARES Act includes assistance to state and local governments and $1,200 to individuals earning up to $75,000 annually. These grants gradually get lower for higher earners and are not available to those with incomes over $99,000.

Families will also receive $500 per child.

The bill includes a major expansion of unemployment aid in the form of an additional 13 weeks on top of the unemployment period granted at the state level, and a four-month, $600 increase in existing unemployment benefits (which vary across states); funding for hospitals and COVID-19 vaccine research; loans to airlines; loans for companies deemed critical to national security; and assistance, overseen by Congress and the Department of Treasury, for large businesses.

Notably for PIA members is the 350 billion loan program provision that makes loans, that could possibly be converted to grants, available to small business under certain conditions.

The loans must be used to pay payroll costs, health and leave benefits for employees, salaries, commissions, payments of mortgage, rent, utilities or the interest on the business’s mortgage and debt obligations.

Recipients of the loan must show that the need is for the current economic conditions and will be used to keep workers and maintain payroll or mortgage, lease, or utility payments.

Partial loan forgiveness is available if the business provides documentation that the portion of the loan they would like forgiven was used to keep employees employed or make mortgage, rent, or utility payments.

The CARES Act also includes provisions delaying payments of certain taxes and filing deadlines, among others.

Further details on this law can be found on the PIA website in the PIA Member Guide to Relevant Provisions in the CARES Act. 2020 V3 | 9

HOW COVID-19 AFFECTS AGENCY VALUE

By Jon Persky, CIC, CPA, PHR

substantially changed (at least temporarily) due to Covid-19. But how does that affect agency value and your plans to buy or sell an agency? While the insurance industry is relatively recession-proof, Covid-19 can and will have an impact on the insurance industry M&A in addition to how we currently run our agencies.

BUYER’S PERSPECTIVE Interest rates are about as low as they can get which means the cost of borrowing is low for people with good credit.

The large, private equity buyers would rather put their money in something relatively stable compared to the wild gyrations of the stock market. Even smaller buyers would rather invest in something they can control rather than the stock market.

For smaller borrowers, the Small Business Administration is a common source of loans for insurance agency acquisitions. The SBA is now contemplating changes to stimulate the economy. These changes include: • Reducing or eliminating the SBA guarantee fee charged to borrowers, which will significantly reduce closing costs on SBA loans. The current SBA guarantee fee on a $2 million loan is over $50,000.

• Increasing the loan guarantee amount from 75% to 90%. This will help entice lenders/financial institutions to want to lend rather than hold on to cash.

SELLER’S PERSPECTIVE Many sellers believe a hard market is coming and that will increase premiums, commissions, and therefore the profitability (and value of their 10 | 2020 V3

iStockphoto/sv_sunny

OUR WAY OF LIFE HAS

agency). This may be true, but there are several offsetting issues that need to be addressed.

Commercial lines focused agencies will probably be seeing clients with return premium audits due to below expected revenues and payrolls. This will result in return / reduced commissions, thereby reducing agency profitability.

Depending on how long this virus persists and its long-term effects, many small (and even larger) businesses may go out of business. This is especially true of agencies that have a market niche of restaurants and hotel/motel, etc. How will those agencies make up the lost commission income?

Personal lines focused agencies should be relatively unaffected unless the country enters a longer recessionary period. During a recession, people are trying to save money whenever possible. This could result in more homeowners and auto clients shopping their business. Agencies will have to work harder to retain this business.

Assuming a recession persists for a long period of time, this could result in people abandoning their homes (and related home loans) and allowing them to go into foreclosure. This could result in lost accounts for an agency.

TAXES Prior to the Covid-19 crisis, many agency owners nearing retirement were concerned about the 2020

election. Assuming a Democrat would win the Presidency, there was a greater likelihood of taxes increasing. This would result in the “cash in pocket” after selling the agency and paying taxes being less.

With the dramatic drop in the stock market and the concern over Covid19, the chances of President Trump being re-elected has gone down. Even if Trump is re-elected, Congress is spending trillions of dollars to support the economy. Sooner or later that bill will come due and taxes will have to increase for everyone.

THE CHANGING AGENCY ENVIRONMENT With Covid-19 and even beforehand, agencies are learning they don’t need to be face-to-face with clients. Phones, email and videoconferencing works just fine in communicating with clients. Agencies that are paperless and automated can allow employees to work from home a little easier in this new environment. However, this means the agency owner needs to learn how to manage remote employees, handle IT issues, cyber liability concerns, workflow, etc. Agencies that aren’t as automated may still need to have employees come into the office. Is this feasible if you have employees with children while schools are closed? And what if one of your employees catches the virus from another employee? Now CONTINUED ON PAGE 14

www.pianet.com | PIA CONNECTION

IS SELLING INSURANCE TO YOUNG PEOPLE THAT CHALLENGING? YOUNG PEOPLE CAN SOMEtimes seem like a mystery to people from older generations (and vice versa), but it’s no secret that they have a not-insignificant amount of spending power.

An oft-cited Accenture study from 2013 predicted that millennials would “truly come into their own” in 2020, with projected spending from this group expected to grow to $1.4 trillion annually, representing 30% of total retail sales in the US, though the report also noted that millennials will have a major economic impact in other markets that Accenture surveyed.

Meanwhile, Generation Zs are following closely on the heels of millennials, with some studies pointing to an overall spending power of $143 billion in the United States alone.

While these numbers are tempered by the fact that younger people are reportedly taking fewer trips to the store than the average shopper, amid dealing with uncertainties brought by climate change, growing debt levels, and political instability, these demographic groups clearly make up an important segment of insurancebuying clientele.

Insurance associations are helping agents and brokers reach these consumers, with many putting on education sessions and events about selling insurance to millennials in particular. One noted that while the baby boomer generation is still a sweet spot for agents and brokers, ignoring a segment that is shifting the digital expectations of consumers would be a missed opportunity.

So how do millennial consumers differ from other generations, besides

PIA CONNECTION | www.pianet.com

By Alicja Grzadkowska

the fact that they’re digitally-savvy?

For one, they’re not as responsive to traditional marketing techniques— think radio, print, and TV ads—and they tend to comparison-shop since they have a lower median income and less disposable income than past generations, according to Forbes. They also prefer to spend their hard-earned money at local businesses with ethical mindsets, which bodes well for brokers and agents who have built strong connections within their communities. Gen Zs are similar to millennials on many of these points, though they are more apt to use the sharing economy rather than owning their own physical assets and they tend to rely on social media platforms to receive information.

With all of the sessions offered by broker and agent associations on the topic of selling to young people, there appears to be some concern among insurance professionals around reaching these up-and-coming generations.

However, though their insurance needs might be unique in some respects compared to older generations, are they really so hard to reach? People require different types of insurance at different stages of their lives, but many young people still plan to own cars and homes. In fact, a recent Bloomberg story read, “Data show millennials aren’t really less interested in owning vehicles than previous generations.”

Some will, down the road, also potentially own their own businesses, meaning that commercial insurance would appear on their radar, too.

Many will get married (exposing them to liquor liability coverage), rent apartments (which means getting rental insurance), bring pets into their homes

(in turn looking into pet insurance), or take trips around the world (and purchasing travel insurance to accompany them).

At all of these critical moments, there are opportunities for brokers and agents to prove their value. But, they need to meet these consumers where they shop, which is on websites, blogs, and social media channels.

Brokers and agents would also do well to underscore the value of their independence from insurers as a ‘comparison-shopping’ method that these younger consumers can rely on to find the best coverage for the right price. Providing young people important information on their policies and what’s covered versus what’s not in easily digestible resources that they can access anywhere from their phones is likewise a good way to stand out. And bringing young people into the office by attracting new talent to brokerages and agencies isn’t a bad way to get a fresh perspective on reaching exactly this demographic.

The rewards for getting this young clientele in the door today are big. By attracting millennials and Gen Zs to the broker and agent channel while they’re young, insurance professionals can win the trust of a new generation of clients, ensuring their businesses’ long-term viability.

The author of this article, Alicja Grzadkowska, is senior news editor at Insurance Business America. Her email is alicja.grzadkowska@keymedia.com. You can access this article online at: https://www.insurancebusinessmag.com/ us/news/columns/is-selling-insurance-toyoung-people-that-challenging-213739.aspx

2020 V3 | 11

THE PIA PARTNERSHIP LAUNCHES

WINNING@TALENT New Toolkit to Help Insurance Agencies Attract, Recruit and Retain Top Talent

PIA NATIONAL AND ITS CARRIER COUNCIL, THE PIA Partnership, have unveiled a new agency hiring program for PIA members and agents appointed by carriers participating in The PIA Partnership.

The PIA Partnership’s new Winning@Talent program, available at www.winningat talent.com, is a 3-part toolkit featuring intuitive tools that take agency employers through a simple journey that starts with determining if their agency is well positioned to attract quality candidates and ends with a happy, productive employee contributing to the agency’s bottom line.

“Everyone in the insurance industry knows there is a looming talent shortage as baby boomers retire,” said PIA National President Dennis Kuhnke, CIC, CPIA, of Milwaukee, Wisconsin.

“While there are programs in place to attract new entrants into

“EVERYONE IN THE INSURANCE INDUSTRY KNOWS THERE IS A LOOMING TALENT SHORTAGE AS BABY BOOMERS RETIRE.” PIA National President Dennis Kuhnke, CIC, CPIA, of Milwaukee, Wisconsin

12 | 2020 V3

our industry, few of those efforts are aimed “WE START BY ASKING at insurance agency AGENCY OWNERS AND personnel. As the sales MANAGERS TO TAKE A arm of the indepenGOOD, HARD LOOK AT dent agency channel, THEIR AGENCY.” agents and carriers 2020 PIA Partnership Chair alike are affected when Ryan Dawson of The Hanover agencies have a talent shortage. PIA’s new program is going to reset the board by enabling agencies to demonstrate that they have a lot to offer people looking for a first, or a second, career.”

Part 1 of the Winning@Talent program, Are You Ready to Recruit?, focuses on helping agencies assess their employer brand so they can see their agency the way prospective employees see their agency. In this section, PIA helps agency owners and managers assess their employer brand, provides tools to help them build and strengthen their brand, and offers best practices on how to make their brand resonate across communication channels and social networks.

Part 2, Sourcing, Recruiting and Hiring, focuses on sourcing potential hiring prospects, recruiting them into your agency and ultimately hiring them. In this section, PIA offers resources and best practices to help agency owners and managers find, screen, interview and evaluate candidates in ways that will help them reduce their time to fill key positions, build their talent pipeline and meet long-term recruiting goals.

Part 3, Retaining Your Best Employees, focuses on how agencies can retain their best employees, so that hard won talent doesn’t walk out the door just as they begin to provide a return on the investment that their agency has made in them.

This section provides best practices and resources that agency owners and managers can share with their employees to help those employees with their own career development.

“When most people think of hiring, they think of the actual process of placing an ad and then hiring the best applicant,” said 2020 PIA Partnership Chair Ryan Dawson

www.pianet.com | PIA CONNECTION

of The Hanover. “As members of The PIA Partnership began designing Winning@Talent, we knew that many agencies have additional hills to climb in order to attract the best candidates and then to retain those employees once hired. That’s why we start by asking agency owners and managers to take a good, hard look at their agency so that they can see what outsiders see. Then we give them practical tips they can often implement quite easily in order to change the way potential employees view their agency. We call this their ‘employer brand.’ The best part is that by improving its employer brand, an agency will also improve the way it appears to potential clients.”

“Because employee retention is vital to all agencies, Winning@Talent places a great emphasis on post hire training and education as retention tools,” said PIA National CEO Mike Becker. “We have identified numerous carrier training programs that are available to agency personnel as well as designations they can be encouraged to pursue. Investing in advanced training and employee education beyond required CE are just a few of the suggestions we provide those looking to improve the retention of employees within their agency.”

“MANY OF THE TIPS AND TOOLS WE PROVIDE WILL HELP INDEPENDENT AGENCIES IMPROVE IN WAYS BEYOND THEIR HIRING PROCESS.” PIA National Senior Vice President of Products & Services Alexi Papandon

“Probably the most exciting part of this program to me,” explained PIA National Senior Vice President of Products & Services Alexi Papandon, “is that we have created a program that tackles the agency talent shortage in such a comprehensive way, yet is extremely easy for any agency owner or manager to jump into and immediately find simple steps they can take that will have an immediate impact. Even better, many of the tips and tools we provide will help independent agencies improve in ways beyond their hiring process.”

The PIA Partnership is a joint effort of leading insurance carriers and PIA. PIA and the companies belonging to The PIA Partnership work together to develop hands-on tools for PIA members and agents appointed

by Partnership carriers, specifically addressing areas of opportunity in the agency-company partnership.

The PIA Partnership was established in 1996. PIA would like to thank the PIA Partnership companies who helped to develop Winning@Talent: Encompass Insurance, Erie Insurance, Liberty Mutual Insurance, MetLife Auto & Home, National General Insurance, Progressive Insurance, Selective Insurance Group, State Auto Insurance Companies, The Hanover Insurance Group and West Bend Mutual Insurance Company. Learn more about The PIA Partnership at www.ThePIAPartnership.com.

WINNING@TALENT

WinningAtTalent.com

Your guide to hiring, motivating and retaining employees.

Our 3-part toolkit helps agencies understand how best to recruit great talent and enhance the employee experience so they stay. We trust you’ll find this content very useful and another example of the value of our Partnership.

Winning@Talent is brought to you by The PIA Partnership – PIA’s national carrier council. Partnership companies include:

PIA CONNECTION | www.pianet.com

2020 V3 | 13

HOW COVID-19 AFFECTS AGENCY VALUE

Jon Persky, CIC, CPA, PHR is the President

AC

L E PAR ER

THE FUTURE In our ever-changing world, with people flying all over the planet, odds are that this may not be the only pandemic we will face. For insurance agency owners nearing retirement, perhaps now is the time to seriously consider retirement options. For buyers, interest rates are very low, and money is readily available. This pandemic could result in a significant increase in insurance industry M&A activity.

Whether you are in agency leadership and/or want to consider agency ownership in the future, now is the time to consider and evaluate ALL

your options. Plan for your agency’s future – both strategically (3-5 years out) as well as handling current operational workflow challenges that you will be facing. Whether you have employees working from home or at an office, every agency should have a disaster plan for now and the future.

NOW is the time to work ON your agency’s future, not just IN your agency. Do this not just to survive the Coronavirus, but to maximize your agency’s value!

TN

you are looking at a potential workers compensation claim. These are only a few issues to consider. Many other issues will surface as we move through time with life in this “new normal.”

P I NN

FROM PAGE 11

2020 PIA NATIONAL PINNACLE PARTNERS Encompass Insurance Encova Insurance Erie Insurance State Auto Insurance Companies

of Optimum Performance Solutions, LLC (www.optperform.com), an insurance

of the Society of Certified Insurance

agency consulting firm providing valuation,

Counselors and lectures on agency man-

merger and acquisition, agency perpetua-

agement topics throughout the United

tion, strategic planning, and marketing and

States. He can be contacted at 813-835-

retention services to insurance agencies

7337 or jon@optperform.com.

nationwide. Jon is on the national faculty

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

14 | 2020 V3

www.pianet.com | PIA CONNECTION

STALWART PIA LEADER RON VON HADEN DIES RON VON HADEN, WHO for over four decades was a respected leader of PIA at both the state and national levels, has passed away peacefully.

“Occasionally, there’s somebody who has played such a critical role in the long history of an organization— and done it so effectively—that there will never be another like them. That’s Ron,” said PIA National President Dennis Kuhnke of Milwaukee, Wisconsin, when Von Haden was awarded a special commendation on the occasion of his retirement in 2019. Ron had continued working as a special consultant to PIA National and PIA of Wisconsin.

Ron Von Haden attended his first PIA meeting in 1975. He was a Young Insurance Professional. Ron was elected to the Wisconsin Board of Directors in 1976, serving two three-year terms, then continuing to serve on committees. He received the Wisconsin Agent of The Year award and the Committee Chairman award during that time.

Later, he served eight years as the PIA National Director from Wisconsin during which time he chaired several committees, served one term as National Secretary and two terms as a National Vice President. In 1994, Ron was recruited to be Executive Vice President of PIA of Wisconsin. Under his leadership and with the hard work of many volunteers and a loyal staff, Ron helped build PIA of Wisconsin into one of the most successful PIA affiliates in the nation.

PIA CONNECTION | www.pianet.com

Duty called in 2012, when Ron served for a year during an executive transition at PIA National as National Executive Vice President.

“For more than four decades, Ron lived, breathed and bled PIA,’” said PIA National Executive Vice President & CEO Mike Becker. “Even in retirement, Ron continued to provide indispensable advice and counsel and was hard at work on key projects for PIA National up to his untimely passing. Ron had the utmost respect from everyone in our Association and in our

whole industry.”

“When you look around now—and see PIA achieving greater things— know that Ron played a big part in PIA’s success,” Becker said. “Our best tribute to Ron as both a friend and colleague is to carry forward his lifelong, steadfast commitment to helping others, being a shoulder to lean on, and providing support to our independent agent members.”

Ron was laid to rest in his hometown of Boscobel, Wisconsin on Thursday March 12.

2020 V3 | 15

YOUR AMS SYSTEM HAS BEEN COMPROMISED! WHO IS RESPONSIBLE FOR WHAT?

By Chad Guyer

any obligations or exposure when the third-party Agency Management System (AMS) is compromised? The short answer is “yes.” Many of the PIA agents across the country that I have the pleasure of visiting and working with as a Business Development Manager for ABA Insurance Services Inc. understandably, but mistakenly, believe they don’t need cyber insurance when the agency uses an AMS to store their client’s confidential information. Insurance agencies, like doctors’ offices, routinely use third-party vendors to store proprietary and confidential customer (or patient) information and are surprised to learn they may have legal exposure and notification obligations when the AMS is compromised.

At a recent Cyber continuing education class our company hosted for a group of independent agents in Cleveland, Ohio, the extent of misunderstanding about this issue became clear when one of the agents mentioned that his doctor client declined the agent’s suggestion to consider purchasing cyber coverage. The doctor explained that he wasn’t worried about his system being breached because all the patient information was stored by a third-party vendor on a cloud-based storage system.

The presenter quickly pointed out that while the third-party vendor has the responsibility to fix the compromise and notify its customers (in this case the doctor’s office), the doctor’s office may still have legal notification requirements and possible liability as a result of the disclosure of confidential information. A steady murmur took over the rooms as agents began to discuss this shocking revelation that applies to agencies as well! The

16 | 2020 V3

istockphoto/nullplus

DOES YOUR AGENCY HAVE

following morning when I checked my new business submissions there were six new cyber policies from agencies who attended our educational session!

The lesson here is that an agency has legal obligations and exposure even when the agency’s confidential customer information is managed and stored by an AMS. According to a 2018 study by IBM Security and the Ponemon Institute, the average cost of a breach notification is $148 per record. Multiplied by the number of clients and prospects in the agency management system, notifications can become very costly. Cyber policies typically cover the cost of notifying clients and repairing reputational harm, as well as providing credit monitoring or theft protection to those clients whose information was disclosed.

Usually, there is also liability coverage for claims brought as a result of the compromised information, which can be expensive to defend and resolve.

It is important that agents make sure they have appropriate cyber coverage even when they use an AMS. It could be the difference between keeping your agency’s doors open, or closing them for good.

Chad Guyer is Business Development Manager of ABA Insurance Services This article is for informational purposes only.

Any views or opinions expressed are the author’s; shall not be construed as legal advice; and do not necessarily reflect any corporate position, opinion or view of ABA Insurance Services Inc., or its affiliates, or a corporate endorsement, position or preference with respect to any contractual terms and provisions or any related issues. If you have any questions or issues of a specific nature, you should consult appropriate legal or regulatory counsel. Cyber policies are underwritten by Great American E&S Insurance Company, a DE domiciled surplus lines insurance company, eligible to underwrite surplus lines insurance in all 50 states and the D.C. ABA Insurance Services Inc. is an OH domiciled agency with its principal place of business at 3401 Tuttle Rd., Suite 300, Shaker Heights, OH 44122. CA license # 0G63200.

This is not intended as a solicitation or offer to sell an insurance product in a jurisdiction in which the solicitation, offer, sale or purchase thereof would be unlawful.

022020

PIA MEMBERS INTERESTED IN PURCHASING A CYBER POLICY FROM PIA OR SELLING PIA CYBER INSURANCE THEMSELVES CAN LEARN MORE AT HTTPS://PIANET.COM/CYBERINSURANCE

www.pianet.com | PIA CONNECTION

GUEST COLUMN

By Jaime McGrath

“BOND” DOESN’T HAVE TO BE A FOUR-LETTER WORD MANY INSURANCE AGENTS simply don’t like to write surety bonds.

Given the choice, having a root canal would be a more pleasant experience than trying to navigate the ins and outs of all the requirements that make up surety bonds. Some bonds require financial statements with many follow up questions, and some are instant issue.

Fortunately, bonds can be easier to write than expected. By having a basic understanding of the items needed from the client and working with a trusted bond-only expert, agents can now service their clients bond needs and earn high % commissions on the bonds as well!

Here is a bit of background information to help one understand the two major classifications of bonds and what to look for.

There are two classifications of surety bonds: contract and commercial. Within these categories is a large number of subcategories or “bond types”. Contract bonds are required for a formal contract and guarantee that the terms of a contract are fulfilled.

Commercial bonds are guarantees required based on a specific statute and are generally cancellable or are required for a given term. A good way to understand what the bond covers is to ask: “What is the obligation that this bond is guaranteeing?”

The majority of bond requests fall under the contract bond classification

PIA CONNECTION | www.pianet.com

SURETY BONDS CONTRACT

COMMERCIAL

• Required for a formal contract

• Guarantees required based on a specific statute

• Guarantee that the terms of a contract are fulfilled

• Are generally cancellable or are required for a given term

• Often used within the construction industry

• Examples include Motor Vehicle Bonds, Sales Tax Bonds, Utility, and License & Permit Bonds

within the construction industry. They are a three-party guarantee—between the Principal Contractor, the Obligee (the town or other public entity hiring the work) and the Surety company.

One contract can require up to five separate bond obligations: bid, payment, performance, maintenance and warranty. Large contract bonds above $350,000 require a complete file of underwriting information. The bond type, bond amount, the location of the project, and the contractor’s financial situation are all considered for the approval of the bond request.

There are hundreds of commercial bond types; Motor Vehicle Bonds, Sales Tax Bonds, Utility, and License & Permit Bonds to name a few. The commercial bond amount is typically smaller than contract bonds and because of the smaller size, requires less financial information and is often underwritten based on the credit history of the indemnitor (owner/ principal). In some instances when the bond penalty is small, there is

no underwriting and the issuance is instantaneous. Again, the best way to understand commercial bonds is to ask what the bond is guaranteeing.

Surety bonds are not as intimidating as they may seem once one has a basic understanding of what they are and why they are required. This acquired knowledge when paired with a trusted Surety Bond wholesaler who can provide the proper guidance, can be an excellent combination for quickly and easily servicing bonds.

Ultimately, this results in a win-winwin, allowing the client to get great service with the needed bond, and providing an opportunity for both the insurance agent and bond agent to share in on the deal and bring in additional commission revenue.

Jaime McGrath is a Surety Executive at Surety Bond Professionals, a bond-only agency with access to over 25 different surety markets allowing for the largest programs and most competitive terms for contractors. You can contact Jaime at Jaime@suretybondprofessionals.com.

2020 V3 | 17

$

AGENCY MARKETING

By Kris Hackney

Insurance in Today’s Digital Age:

BUYING BEHAVIORS AND PREFERENCES OF YOUNGER ADULTS OVER THE PAST FEW decades, rapid and increased technological innovation has significantly changed the behavior and expectations of those generations coming after the baby boomers, most notably millennials and Generation Z. Representing one of the largest living generations, millennials—those born 1980-1996—are projected to surpass baby boomers in total population by 2019 according to Pew Research Center. Meanwhile, Gen Z—those born 1997-present—are expected to make up 33% of the global population by 2020 and outnumber millennials according to Superior Access. Both of these generations are the workers and consumers of tomorrow with purchasing power estimated to be in the trillions of dollars annually.

Given the size and economic capital these two generations possess, combined with the fact that eight in 10 have insurance, it’s critical for insurance providers to adapt their business strategies to attract and retain millennials and Gen Z as customers.

To better understand what millennials and Generation Z are looking for in terms of insurance service providers, Applied Systems partnered with ORC International, a leading business intelligence research firm, to conduct a survey of their insurance habits and preferences. Here are a few key findings:

18 | 2020 V3

80% OF YOUNGER GENERATIONS HAVE SOME FORM OF INSURANCE Across all countries— United States, Canada, United Kingdom and Ireland—the majority of millennials and Gen Z (8 in 10) have some form of insurance.

Auto insurance is most commonly held, and younger adults in the U.S. are the most likely to have it.

Millennials represent one of the largest living generations, projected to surpass baby boomers in total population by 2019. Further, Gen Z, growing in size every day, are expected to make up 33% of the global population by 2020 and outnumber millennials. Given the size and economic capital these two generations possess, combined with the fact that eight in 10 have insurance, it’s critical for insurance providers to adapt their business strategies to attract and retain millennials and Gen Z as customers.

WORD-OF-MOUTH REFERRALS ARE THE BIGGEST INFLUENCE Word-of-mouth referrals influence millennials and Gen Z the most when they are shopping for insurance. For example, younger generations, at 42%, prefer getting referrals for auto insurance

rather than online search (26%), offline advertisements (9%), online review sites (8%), online ads (5%), storefronts (5%) and other avenues (7%). In fact, both generations are far more likely than any other to base their choice of insurance provider on who their family members use. To acquire millennial and Gen Z consumers, insurance providers should focus on building brand loyalty with older generations who have the most influence on these younger insurance shoppers.

Insurance providers also need to ensure their websites are optimized for search and mobile-friendly. In accordance with our survey findings, the Google Consumer Barometer Study states that 55% of millennials use search engines to learn about products, and mobile is the primary device they’re using to do the research.

IN-PERSON INTERACTION IS THE MOST COMMON INSURANCE PURCHASING CHANNEL While most millennials and Gen Z prefer to purchase homeowners insurance in person (47%) rather than online or phone, they are more likely to purchase auto insurance online (39%).

Millennials and Gen Z want fast, connected experiences. They make no

www.pianet.com | PIA CONNECTION

distinctions between online and offline worlds, moving seamlessly between both. Thus, it’s extremely important for insurance providers to have an omnichannel approach to reach and engage these younger generations.

Millennials and Gen Z expect to connect with brands how and when they want, be it: in person, phone call, text, email or social media.

Through a hybrid approach—bricksand-mortar business with integrated digital technology that provides these communication touchpoints across all channels—insurance providers will be able to build relationships via the traditional ways they used to establish a business and the modern ways that will keep them in business.

DIRECT CALL WITH AN AGENT IS THE PREFERRED METHOD OF COMMUNICATION For auto and homeowners insurance, the preferred and most frequently used communication channel by millennials (52%) and Gen Z (51%) is a direct call to an agent. For renters, an in-person interaction is preferred but a direct call to an agent is used more often.

While they love the texting, instant messaging and social networking that technology affords, these younger adults still value traditional communication methods. A worldwide study from Randstad echoes this finding: “Around the globe, more than half of Gen Z and millennials chose the faceto-face meeting as their preferred form of communication.”

The preference for in-person communication, combined with the fact that these younger adults want brands to be familiar with their preferences and order history, demonstrates the importance millennials and Gen Z put on the advice and guidance that insurance providers deliver.

PIA CONNECTION | www.pianet.com

24/7 CUSTOMER SERVICE IS THE MOST IMPORTANT INSURANCE FEATURE As a result of having grown up connected to an “always on, always available” information source via the internet, both millennials and Gen Z prefer insurance providers who offer 24/7 customer service via multiple channels, including mobile apps. In fact, 85% of the millennials and Gen Zers surveyed consider 24/7 customer service important and 74% of millennial and Gen Zers surveyed consider mobile app access important when selecting an insurance provider.

These generations expect the customer-centric, omnichannel experiences that they’ve become accustomed to in other industries. If businesses don’t deliver by offering insurance features such as 24/7 customer service and mobile app access, today’s young consumers will not be shy about seeking out other alternatives as well as sharing feedback about their brand experiences—good and bad—on review sites and social networks.

As a technology partner, we consider it our responsibility to inform

insurance agencies about the latest industry trends. By imparting this knowledge, we strive to empower agencies to take advantage of new business models and servicing options by meeting the needs of the changing consumer that will make their businesses profitable. The time is now for agencies to transform their businesses and turn their eyes to the next generations of insureds.

Kristin Hackney is executive vice president of customer experience at Applied Systems.

Kris is responsible for Applied’s customer delivery strategy and operational execution for the company’s Professional Services, Support and Cloud-based solutions. She is the former vice president of Worldwide Enterprise Solutions & Services for Chicagobased SPSS Inc., a leading global provider of predictive analytics software and solutions, now part of IBM. Hackney drove the strategic transformation of SPSS from a tools/technology-focused vendor to a respected provider of enterprise solutions, building and leading the company’s global predictive analytics solutions business. In a previous role at SPSS, Hackney served as vice president of Worldwide Education Services. She holds a bachelor’s degree from Hamline University in St. Paul, Minn.

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.

Introducing the PIA DMV: PIA’s Direct Marketing Vault

PIA

Agency Marketin g Guide

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

Brought to you by these

®

Agribusiness and Equine

Mortality

sponsors:

PIA DMV

direct marketing vault

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.

A product of the PIA

2019AMG.indb

Branding Program

1

2020 V3 | 19

8/19/19 9:32 PM

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.

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

✦ AGENCY WEBSITES. Cutting-edge websites tailored specifically to insurance agents.

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

✦ PIA LOGO. Put the PIA logo on your business card, website, stationery and signage. Order items with the PIA logo in our online store.

✦ PRACTICAL GUIDE TO SUCCESSFUL PLANNING. Plan for success within your own agency.

INSURANCE PRODUCTS

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

✦ 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

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

✦ 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.

✦ CYBER LIABILITY INSURANCE. Coverage and pricing tailored to small and mid-sized businesses.

✦ 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.

✦ 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

✦ AVYST EFORMS WIZARD. Quickly and easily prepare ACORD, agencyspecific, and carrier-unique applications ✦ WINNING@TALENT. Your guide to and forms, entering data only once in hiring, motivating and retaining the an organized interview format. Get to Alexi’s best agency employees. market faster! pick ✦ AGENCY JOURNEY MAPPING. Value ✦ FLOODBROKER.COM. Sell more your agency, maximize your retirement flood insurance with a flood quoting income, and plan for unexpected Web portal. A PIA member exclusive! death/disability while creating a perpetuation plan for your agency. ✦ PIA AGENCY MARKETING GUIDE. Hands-on marketing tips from industry ✦ CYBER 101. Cyber education for you experts. Published annually. and your clients. ✦ 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. ✦ AGENCY REVENUE TOOLS. Boost personal lines sales by engaging in employee worksite marketing using your appointed markets at regular commission rates.

✦ 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.

AGENCY MANAGEMENT TOOLS ✦ ACORD FORMS END USER LICENSES. Available for free to qualifying PIA members who access ACORD forms through agency management systems and other authorized distributors. Plus PIA member discounts on the ACORD Advantage Plus Program. ✦ 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. ✦ 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 ADVOCACY DAY. Every spring, PIA members visit Capitol Hill to talk with their elected representatives about issues that are important to independent insurance agents. www.PIAAdvocacyDay.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.

20 | 2020 V3

www.pianet.com | PIA CONNECTION

PIA MEMBER BENEFIT SPOTLIGHT DURING CORONAVIRUS: As the global pandemic of COVID-19 continues to affect the way we do business, PIA is highlighting specific programs that may be useful to you right now. We hope this is helpful.

PIA PROGRAM: CYBER 101 Why care about this now? During this pandemic, we are finding ourselves at home working remotely for an indefinite amount of time. Computer hackers can use this time to deploy aggressive ransomware attacks, and sophisticated social engineering scams to try and trick you into divulging sensitive information. It’s important to know what to look out for so that you don’t become a victim of a cybercrime; more importantly, if you know what to look out for, you can also help educate your clients to their vulnerabilities.

What is it? Free to PIA members, Cyber 101 is an educational series that informs you about the seven most common cyber risks that can affect small to medium-sized businesses.

The seven most common risks are: • Social engineering • Funds transfer fraud • Ransomware/extortion • Network interruption • Data breach • Network security • Media liability This educational series includes 30-minute webinars covering each risk, informational PDFs, and interactive claims examples.

We’ve also created customizable cyber education flyers that you can share with your clients online and on social media.

Visit: www.pianet.com/cyber101

UPCOMING PIA WEBINARS

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

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

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

PIA CONNECTION MARKETPLACE AGENCY JOURNEY MAPPING

a perpetuation/succession program for current and future agency owners www.auw.com

AGENCY JOURNEY MAPPING

AGENCY JOURNEY MAPPING

PIA Connection Marketplace rates: $95/issue for 10 issues; $120/issue for1/6/20 5 issues.

To learn more and get a contract, SBP_PIAnewsletter_010619.indd 1 5:17 PM AGENCYJOURNEYMAPPING or to inquire about display advertising, please contact Alexi Papandon at alexipa@pianet.org or 703-518-1353.

PIA CONNECTION | www.pianet.com 2020 V3 | 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 419 N. Lee Street, Alexandria, VA 22314 PHONE: 800-742-6900 | FAX: 703-836-1279 e-mail: membership@pianet.org | Web Site: www.piapuertorico.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

RHODE ISLAND

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

SOUTH CAROLINA

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

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

DELAWARE

MISSOURI

SOUTH DAKOTA

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

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

MONTANA

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

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

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

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

NEBRASKA/IOWA

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 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

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 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

TEXAS 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

UTAH 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: mattchild@uaiia.org | Web Site: www.uaiia.org

NEW JERSEY

VERMONT

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

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

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

NORTH CAROLINA PIANC, 1059 Technology Park Dr, Glen Allen, VA 23059 PHONE: (804) 264-2582 e-mail: kevin@pianc.net | Web Site: www.pianc.net

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

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

TENNESSEE

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

KENTUCKY

LOUISIANA

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

VIRGINIA/DC PIA Assn of Virginia & DC 1059 Technology Park Dr, Glen Allen, VA 23059 PHONE: (804) 264-2582 | FAX: (804) 266-1075 e-mail: kevin@piavadc.com | Web Site: www.piavadc.com

WASHINGTON/ALASKA 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

OHIO

WISCONSIN

MAINE

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

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

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

OKLAHOMA

22 | 2020 V3

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

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

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.

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. Follow us at bigdoghq.com.

©2020 Applied Underwriters, Inc. Rated A (Excellent) by AM Best. Insurance plans protected U.S. Patent No. 7,908,157.