PIA Connection -- Race and Insurance: NAIC to Address Diversity and Inclusion

How To Prepare Your Clients For The Next Hurricane

pages 18–19 2020 V6

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

NAIC Looks at Race and Insurance

page 11

“If not us, who? If not now, when?”

— Ray Farmer, NAIC president and director of the South Carolina Department of Insurance

PIA MEMBER BENEFIT SPOTLIGHT:

Direct Mail on the Rise page 17

AGENTS OF BETTER TOGETHER, E V E RY D AY Robert Bois didn’t achieve his success by standing still. The mantra that hangs in his agency—be better every day than the day before. It’s Robert’s goal, it’s our goal. And with stronger insights, more product offerings, and the latest tools and technology, we’re continuing to push the industry forward, together.

What's next for Progressive and our independent agents? Well that's the best part.

AgentsofProgressive.com

ROBERT BOIS, BOIS INSURANCE | FLUSHING, MI

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 V6

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 Nicolette Bowman | nicolettebo@pianet.org CONTRIBUTING EDITOR Patricia A. Borowski, CPIW PRODUCTION EDITOR Laurel Prucha Moran | laurelpm@blueroomstudio.com June 2020 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.

How To Prepare Your Clients For The Next Hurricane

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

page 18

CONTENTS NEWS BRIEF 6-7 Home Insurance Literacy Survey 2020 Finds Big Gaps…Will Naming Heatwaves Save Lives?...Claims Decline As Insureds Stay Home…

Amazon Now Selling Auto Insurance in India…Some States Consider Requiring Police to Carry Liability Insurance…Google Extends Remote Work Policy to July 2021.

HURRICANE FORECAST REVISED AGAIN, TO “EXTREMELY ACTIVE” Forecasters now predict 24-25 named storms, the most ever predicted in a seasonal forecast.

8

BIPARTISANSHIP ON VIRUS AID WANES AS ELECTIONS APPROACH PIA National VP of Government Relations with a Capitol Hill Update.

9

CREDIT-BASED INSURANCE SCORES AREN’T 10 THE SAME AS CREDIT SCORES An insurance company can only use your credit-based insurance score as one factor in its underwriting process.

RACE AND INSURANCE: NAIC TO ADDRESS DIVERSITY 11 AND INCLUSION The organization initiates an in-depth look at the issue of race in the insurance industry.

THE 2020 NUPC/PIA INDEPENDENT AGENT SURVEY Findings from the annual National Underwriter/PIA Agent Survey.

12-15

HOW TO PREPARE YOUR CLIENTS FOR THE NEXT HURRICANE A look at the flood insurance resources offered by PIA.

18-19

DEPARTMENTS PIA Affiliate Listings . . . . . . . . . . . . . . . . 4 From the President . . . . . . . . . . . . . . . . . 5 From the CEO . . . . . . . . . . . . . . . . . . . . 5 PIA National Member Benefits . . . . . . . . . . .16 PIA Member Benefit Spotlight . . . . . . . . . . .17 PIA Marketplace . . . . . . . . . . . . . . . . . .17

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 art: #1215705539 | iStockphoto

2020 V6 | 3

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 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

4 | 2020 V6

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

FROM THE PRESIDENT WITH ALL OF THE ATTENTION BEING PAID, rightly, to the coronavirus crisis, the last thing we need are more disasters to contend with. But they could be on the way.

The weather takes no note of pandemics. In what should have received more attention than it got, the National Oceanic and Atmospheric Administration (NOAA) has again revised upward its prediction of named storms for the 2020 Atlantic Hurricane Season.

NOAA now predicts this will be an “extremely active” hurricane season with up to 25 named storms, the most ever predicted in a seasonal forecast, of which 7 to 11 are expected to become hurricanes (winds of 74 mph or greater), including three to six that could become major hurricanes (winds of 111 mph or greater). The update covers the entire hurricane season, which ends Nov. 30, and therefore includes the nine named storms to date.

It would take only 21 named storms before all the names on the Atlantic list, determined ahead of time by the World

Meteorological Organization, are exhausted and forecasters would turn to the Greek alphabet. This happened only once before, in 2005, a devastating season that was the most active on record.

So we all need to communicate with our clients and urge them to prepare for what most likely will be a rough hurricane season— including reviewing their insurance, and adding flood coverage when appropriate.

The last thing we need with everything else going on is a rough hurricane season. Since we can’t control the weather we can at least help our clients prepare for the worst, just in case.

Dennis Kuhnke President

FROM THE CEO THROUGHOUT THE COVID CRISIS, PIA HAS continued to reimburse PIA members for marketing efforts they have used to build business during the pandemic.

There are currently two reimbursement programs designed to help agents get back to business and strengthen their agencies. PIA members may participate in both, receiving separate reimbursements totaling $500.

The Marketing Program is the original reimbursement program that provides a $250 reimbursement for purchases made through the PIA DMV: PIA’s Direct Marketing Vault or PIA Design & Print Services. The PIA DMV program allows PIA members to launch hybrid print/digital marketing campaigns to households grouped together in USPS postal routes.

The PIA Design & Print Services is specifically for PIA members who need marketing materials beyond the direct mail and digital campaigns.

The Partnership Program is PIA’s new reimbursement program that provides up to a $250 reimbursement for purchases

PIA CONNECTION | www.pianet.com

through the PIA Partnership’s Agency Journey Mapping (perpetuation planning) and Winning@Talent (agency hiring) programs.

These programs are made available to PIA members through generous donations from the following PIA Partnership carriers: National General Insurance, Progressive Insurance, State Auto Insurance Companies and West Bend Mutual Insurance Company. PIA thanks these companies for their support of professional insurance agents.

To learn more about PIA Member Reimbursements, visit: https://pianet.com/agentsupport Mike Becker Executive Vice President & CEO

2020 V6 | 5

!

NEWS BRIEF

shutterstock

Heatwaves… kill more people in the United States every year than storms and floods.

HOME INSURANCE LITERACY SURVEY 2020 FINDS BIG GAPS

the insurance losses caused

Almost half of the home-

Travelers Cos. noted that slip-

owners in the U.S. do not

and-fall claims have dropped

adequately understand how

sharply since workers are

to calculate home insurance

staying home and not driving

coverage. As a result, many

as much to stores, which help

may be overpaying for cover-

offset the insurer’s COVID-

age they don’t need or are

19-related claims. Travelers

unknowingly underinsured.

also experienced a nearly

The “Home Insurance Literacy Survey 2020,” by Policygenius

WILL NAMING HEATWAVES SAVE LIVES?

sampled 2,500 U.S. consumers age 25 and over from June 25

by COVID-19, reports the Wall Street Journal.

10-percentage-point improvement in the underlying combined ratio in personal auto insurance.

It is unclear how lasting this

Some experts say that naming heatwaves and

to July 3, 2020. It found glaring

giving them strength ratings, like hurricanes, could

knowledge gaps in what home

highlight the danger they pose to populations

insurance does and does not

around the country. The initiative is supported by

cover. Half of the respondents

the newly-formed Extreme Heat Resilience Alli-

did not know that a typical

ance. The group, which includes mayors, insurance

homeowners insurance policy

officials, and other experts from around the world,

does not cover floods and

argues that heatwaves need to be taken more seri-

more than 80 percent did not

ously as they kill more people in the United States

know that a standard policy

every year than storms and floods.

does not cover earthquakes.

A report from the National Bureau of Economic

The survey findings illu-

Research found that by the end of the century,

more active hurricane season,

minate the important role

deaths caused by extreme heat around the world

and civil disorder claims.

agents and brokers play in

could nearly equal those from all infectious dis-

guiding homeowners through

eases combined today. Experts say heatwaves are

the insurance buying process.

an unseen risk as most deaths occur inside homes and losses become apparent when “excess deaths”

benefit will be, but a recent study by KPMG estimated that Americans may indefinitely drive less as work and shopping habits evolve. However, property and casualty insurers will still face claims from people who risk on-thejob exposure by going back to the office, losses related to a

AMAZON NOW SELLING AUTO INSURANCE IN INDIA Amazon’s India business

exceed normal rates of mortality.

CLAIMS DECLINE AS INSUREDS STAY HOME

California Insurance Commissioner Ricardo Lara

Property and casualty insurers

said heat was a particular problem for the poor

two and four-wheelers in

have noted that since many

who lack air-conditioning and access to green

the country. Amazon has

are staying home during the

partnered with Mumbai-

COVID-19 pandemic, the fre-

based Acko General Insur-

quency of auto, accident, and

ance to offer customers car

workplace injury claims has

and motor-bike insurance.

sharply declined. This could

Amazon is also an investor in

become a substantial offset to

Acko.

spaces. He worries COVID-19-related job losses could leave many unable to pay for cooling.

“Heatwaves are a risk that has never been fully recognized but one we are currently living with,” said Lara.

6 | 2020 V6

announced it is now offering auto insurance to cover

www.pianet.com | PIA CONNECTION

!

NEWS BRIEF

Presently, only less than 1.3 billion population has access to insurance. An average Indian makes about $2,100 a year, according to the World Bank. Of those Indians who had purchased an insurance product, they were spending less than $50 on it.

GOOGLE EXTENDS REMOTE WORK POLICY TO JULY 2021 Google is allowing employees to work from home through next summer as it braces for longer-term effects of COVID-19 on the

SOME STATES CONSIDER REQUIRING POLICE TO CARRY LIABILITY INSURANCE As New York state lawmakers introduce legislation that would require individual police officers to carry liability insurance to cover lawsuits alleging excessive force, abuse, or other misconduct, some U.S. insurers and brokers are already crafting language for such professional liability coverage, sensing a potential market opening up.

Some cities and states are hope-

iStockphoto/ Joel Carillet

three percent of India’s

ful that a financial stick can curb future police misconduct.

Currently, most police officers rely on municipalities to cover legal costs and payouts to victims, either from public funds or blanket insurance. New York is not alone in exploring the idea, with Colorado passing a law in June that holds police officers personally liable for five percent or $25,000 of damages if their employer determines they did not act in good faith. Policymakers in California and Florida have also expressed interest in the idea.

workplace and beyond.

“The real challenge is assessing the exposure and pricing policies accordingly,” said

“To give employees the

Clark Neily, vice president for criminal justice at the Cato Institute. “Some insurance

ability to plan ahead, we’ll

companies feel that is too challenging. Others feel like this is absolutely something

be extending our global

they will be able to work with.”

voluntary work from home option through June 30, 2021 for roles that don’t

by CNN Business. “I hope

selves and your loved ones

remote working situations

need to be in the office,”

this will offer the flexibility

over the next 12 months.”

as a temporary disruption

wrote Google CEO Sundar

you need to balance work

Pichai in a memo obtained

with taking care of your-

Observers say treating

to an organization now may need rethinking.

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

PIA CONNECTION | www.pianet.com

2020 V6 | 7

HURRICANE FORECAST REVISED AGAIN, TO “EXTREMELY ACTIVE” A REVISED HURRICANE OUTlook from the National Oceanic and Atmospheric Administration (NOAA) predicts an “extremely active” hurricane season, possibly requiring the National Hurricane Center to use every name on its existing list for 2020.

NOAA is predicting up to 25 named storms, the most ever predicted in a seasonal forecast.

Computer model guidance suggests that an overlap between the Madden-Julian Oscillation and Kelvin wave will cause what meteorologists call “constructive interference,” raising the likelihood of more storm activity. Furthermore, warmer ocean temperatures support wetter and more intense storms while facilitating rapid intensification.

Dr. Phil Klotzbach, an atmospheric scientist at Colorado State University (CSU), and his team project that the 2020 Atlantic hurricane

season will have 24 named storms— up from 20 in the previous forecast.

An average season has 12 named storms, six hurricanes and three major hurricanes.

“The tropical Atlantic is much warmer than normal, and vertical wind shear across the tropical Atlantic and Caribbean has been much weaker than normal,” Klotzbach said.

“Warmer than normal water across the tropical Atlantic provides more fuel for tropical cyclones and is also associated with lower than normal pressure and increased instability. All of these trends favor more hurricane activity.”

By August 3, 2020, nine named storms had formed and two—Hanna and Isaias—became hurricanes. The 2020 Atlantic hurricane season began early as tropical storm Arthur formed on May 16 in the Atlantic Ocean east of Florida. The arrival of Arthur marked the sixth consecutive year that

the hurricane season began before the traditional official beginning of the season on June 1.

According to Aon, 2020 is the third year since 1965 that two named storms developed in the Atlantic Ocean before the beginning of the hurricane season.

Sean Kevelighan, CEO of the Insurance Information Institute (Triple-I), said, “Homeowners and business owners should contact their insurance professional to make sure they have the right amount and type of coverage to protect their properties from damage caused by either wind or water.

That also means assessing whether you need flood insurance coverage, which is not part of a standard homeowners, renters or business policy.”

Ninety percent of U.S. natural disasters involve flooding. Flood policies are offered through FEMA’s National Flood Insurance Program (NFIP) and several private insurers.

Is Your Agency For Sale?

W

e are looking to merge (or purchase) an agency or book of business that has $250,000 – $3 million of annual commission income with the hope that you would stay on for some time as we would prefer to keep your culture, your name and your employees in place with as little change as possible. We are very old fashioned that way. Our 36 year-old agency generates $11 million in annual commission revenues. We are profitable and debtfree and our staff turnover is under 10 percent. We can pay cash. We are members of PIA and the Big "I" and are a Trusted Choice agency. If interested, please write me at the address below.

I promise to promptly answer your inquiry and our conversations will remain totally private.

Agency Owner PO Box 3068 Oak Brook, IL 60522

8 | 2020 V6

www.pianet.com | PIA CONNECTION

CAPITOL HILL REPORT

By Jon Gentile Vice President, Government Relations PIA National

BIPARTISANSHIP ON VIRUS AID WANES AS ELECTIONS APPROACH AT THE BEGINNING OF THE CORONAVIRUS crisis, Congress moved with relative speed to pass three coronavirus economic stimulus packages. Things have slowed down more recently.

An example of lawmakers’ action at the outset: on March 27, President Trump signed 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 Paycheck Protection Program (PPP) component of the CARES Act provides businesses with low interest loans, which, under certain circumstances, can be converted into grants. PPP funds were quickly exhausted, prompting Congress to just as quickly replenish funds and extend PPP. As the COVID-19 crisis dragged on, lawmakers began work on a fourth coronavirus economic stimulus package. But for weeks, bipartisan agreement was replaced with an inability to achieve consensus.

EXECUTIVE ACTIONS FALL SHORT The talks largely broke down over substantial disagreements between the White House and congressional Democrats on funding for state governments, local governments, and public schools, and how much assistance to provide to small businesses.

As it became clear in early August that no deal was imminent, the president announced an executive order and several memoranda to federal agencies. These actions were intended to address the economic uncertainty facing renters and homeowners, ease the payroll tax burden on employers, and reauthorize the just-expired federal unemployment benefit provided in the CARES Act. Without supporting legislation, these efforts via executive action fall far short of what businesses need to stay afloat. PIA National has been actively advocating for more funding and reforms to the Paycheck Protection Program, for liability protections for businesses trying to bring employees back to work, and for the creation of a COVID-19 Recovery Fund to help businesses survive in the wake of state-mandated shutdown orders.

The White House and Congressional leaders have said

PIA CONNECTION | www.pianet.com

they may try to negotiate again in September. PIA National is engaged on providing commonsense provision in such a relief package. One such item is a bill PIA National, along with a broad coalition of business groups, strongly supports H.R. 7777, “The Paycheck Protection Program Small Business Forgiveness Act,” sponsored by Reps. Chrissy Houlahan (D-PA) and Fred Upton (R-MI). This bill would forgive PPP loans of less than $150,000 upon the borrower’s completion of a simple, one-page forgiveness document. Expediting the loan forgiveness process for small businesses will ease their burden, freeing them to work to stay viable.

RECOVERY FUND PIA National is continuing to advocate for inclusion of a proposed Recovery Fund in coronavirus relief legislation for businesses and employees that will enable small businesses to receive the relief they need to stay afloat and keep their workers employed. PIA National strongly supports legislation introduced by Reps. Filemòn Vela (D-TX) and Lance Gooden (R-TX) H.R. 7671, the “Small Business Comeback Act” that would create a COVID-19 Recovery Fund that is meant to protect employees unable to work because of COVID-19, preserve jobs through payroll assistance for closed businesses that continue to retain their employees, and protect businesses from insolvency. The Recovery Fund is modeled after the September 11th Victim Compensation Fund and is supported by over 100 organizations. PIA supports creation of a Recovery Fund as a sensible solution to a serious problem.

At the start of a major national crisis, it is not unusual to see lawmakers quickly coalesce and pass significant legislation in a burst of bipartisanship. But often, comity is quickly replaced with the usual controversy and partisan wrangling.

This trend is being exacerbated this year with the approach of the presidential and congressional elections, together with the extremely high level of partisanship that has characterized our politics in recent years.

As the wrangling continues, PIA National will continue to urge action on relief for businesses during this unprecedented and difficult time.

Jon Gentile is vice president of government relations of PIA National

2020 V6 | 9

CREDIT-BASED INSURANCE SCORES AREN’T THE SAME AS CREDIT SCORES NAIC Says There Are Key Differences IN MOST STATES, INSURERS can use your credit-based insurance score to determine your premiums.

Your credit-based insurance score is not the same as your regular credit score.

According to FICO, a data and analytics company that measures credit risks, many insurers use credit-based insurance scores in states where it is legally allowed.

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L E PAR

TN ER

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THINGS YOU NEED TO KNOW Know how an insurance company uses your credit-based insurance score. An insurance company can only use your credit-based insurance score as one factor in its underwriting process.

It will be considered with several other factors that vary by insurance type.

For example, with auto insurance, other factors could be: your ZIP code; the age of the operators; the make, model and age of your car; and even the miles you drive annually. You can ask your insurance company if a credit-based insurance score was used to underwrite and rate your policy and which risk category you were placed in after you receive a quote.

Know what’s in a credit-based insurance score. There are several different companies that create credit-based insurance score reports

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

10 | 2020 V6

for insurers to use. FICO looks at five general areas that it believes will best determine how you manage risk. This is the breakdown of what it considers and how much the information generally weighs in figuring your creditbased insurance score: Payment history (40%) — How well you have made payments on your outstanding debt in the past.

Outstanding debt (30%) — How much debt you currently have.

Credit history length (15%) — How long you have had a line of credit.

Pursuit of new credit (10%) — If you have applied for new lines of credit recently.

Credit mix (5%) — The types of credit you have (credit card, mortgage, auto loans, etc.).

A credit-based insurance score cannot use any personal information to determine your score. Information that is not in your credit report and cannot be used includes the following: • Race, color, national origin • Religion • Gender • Marital status • Age • Income, occupation or employment history • Location of residence • Any interest rate being charged • Child/family support obligations or rental agreements • Certain types of inquiries on your credit report like account review inquiries, employment inquiries, promotional inquiries from credit companies, etc.

• Whether a consumer is participating in credit counseling of any kind Know how to check your credit report and how to get information about improving your credit-based insurance score. The Fair and Accurate

Credit Transaction Act of 2003 (FACT Act) allows consumers to obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies (Equifax, Experian and TransUnion). You can go to www.annualcreditreport.com to check all three reports annually without paying a fee or being asked to buy other products. If you find errors on your credit report, contact the credit reporting company to have them corrected; errors could affect your credit-based insurance score.

Many insurers will reconsider a change in premium if a policyholder experienced an extraordinary life circumstance like a catastrophic event, job loss or serious illness.

It is also important to understand your state’s law on the use of credit.

Contact your state insurance department for that information and tips for how to control your auto insurance rates.

TOP THREE THINGS TO REMEMBER Not all states allow the use of creditbased insurance scores in determining premiums. Some states only allow it as one factor for property insurance like auto and homeowners insurance.

Other states allow it to be used with any type of insurance. Check with your state insurance department to find out what the law in your state allows.

Generally, five different factors are used to determine your credit-based insurance score: payment history, outstanding debt, credit history length, pursuit of new credit and credit mix.

You can improve your credit-based insurance score. Make payments on time. Pay bills, taxes and fines/fees as agreed. If you are behind on payments, catch up and stay current. Keep balances on credit cards as low as possible.

National Association of Insurance Commissioners

www.pianet.com | PIA CONNECTION

RACE AND INSURANCE: NAIC TO ADDRESS DIVERSITY AND INCLUSION THE NATIONAL ASSOCIATION OF INSURANCE Commissioners (NAIC) held a special session during its virtual Summer National Meeting on race and insurance, as the organization initiates an in-depth look at the issue of race in the insurance industry.

Ray Farmer, NAIC president and director of the South Carolina Department of Insurance, said a special committee formed for the purpose will conduct research and analyze the level of diversity and inclusion in the insurance industry, as well as engage a broad group of stakeholders on issues Ray Farmer, NAIC president related to race, diversity and inclusion.

The special committee will be co-chaired by Farmer and David Altmaier, NAIC president-elect and commissioner of the Florida Office of Insurance Regulation. Dean Cameron, NAIC Vice President and Director of the Idaho Department of Insurance, and Chlora Lindley-Myers, NAIC SecretaryTreasurer and Director of the Missouri Department of Commerce and Insurance will serve as co-vice chairs for the committee.

HISTORICAL INFLECTION In addition to the formation of the committee, the NAIC held a special session on Race and Insurance during its Summer National Meeting, which was conducted in a virtual format because of the coronavirus.

“Moments of historical inflection like this are rare, and none of us should want to be remembered as having taken a pass at doing the right thing in creating a lasting, positive change,” said Farmer.

Farmer said the NAIC has heard from insurance CEOs and “they are committed to making this change. My fellow commissioners and I welcome those words and are going to hold them to it. We are looking at the regulatory side as well. I promise that we are going to hold a mirror up to ourselves just as we hold it up to the insurance sector.”

“It is the duty of the insurance sector to address racial inequality while promoting diversity in the insurance sector,” he said. “We welcome the public commitments of industry leaders to address these issues and I am excited by the strong and personal commitment of my fellow commissioners to take action on these important subjects. If not us, who? If not now, when?”

OPENING PANELS During the NAIC’s special session on Race and Insurance, Missouri Insurance Director Chlora Lindley-Myers, NAIC’s PIA CONNECTION | www.pianet.com

Secretary-Treasurer, moderated a discussion among former Kentucky Insurance Commissioner George Nichols III, the current President and CEO of The American College of Financial Services; Dr. Leroy D. Nunery II, the founder and principal of PlūsUltré LLC; and Dr. Chlora Lindley-Myers, Robert Klein, Consultant with Robert W. NAIC SecretaryKlein and Associates.

Treasurer The second panel began with remarks from Connecticut Insurance Commissioner Andrew Mais, who observed the connection between insurance and the transfer of wealth. He reminisced about his father’s insistence that he have a passbook savings account, which helped teach Commissioner Mais about the value of financial security.

While the first panel addressed historical insurance-related and other financial disparities among races, the second discussed current race-based challenges facing the insurance industry.

“Our regulatory system and insurance in general is a reflection of the society it aims to protect, and while state insurance regulators have worked to eliminate overt discrimination and racism, we all have been increasingly aware that unconscious bias can be just as damaging to society,” said NAIC CEO, Mike Mike Consedine, Consedine. “I applaud the commitment NAIC CEO of our membership in their decision to embark on this important work.”

The committee is charged with the following: • Conduct research and analyze the level of diversity and inclusion within the insurance sector.

• Engage with a broad group of stakeholders on issues related to race, diversity, and inclusion in the insurance sector.

• Determine whether current practices exist in the insurance sector that potentially disadvantage minorities.

• Make recommendations to the Executive Committee and membership by year-end regarding steps: (a) both insurance regulators and the insurance industry can take to increase diversity and inclusion; (b) that should be taken to address practices that potentially disadvantage minorities; and (c) to ensure ongoing engagement of the NAIC on these issues through charges to existing committees, task forces and working groups.

Farmer said the committee will make recommendations to the NAIC executive committee and membership by the end of the year.

2020 V6 | 11

THE 2020 NUPC/PIA INDEPENDENT AGENT SURVEY Since 2017, PIA National has partnered with the National Underwriter (NU) Property and Casualty to develop insights from the perspective of independent Property & Casualty insurance agents and brokers throughout the U.S. The 2020 NUPC/PIA Independent Agent Survey was conducted by ALM Intelligence, a division of NUPC’s parent company, ALM Media.

This year’s survey has an extensive focus on technology—gauging agents’ attitudes and practices regarding what NUPC and PIA have heard anecdotally is a significant pain point and understanding those concerns, along with how much disruption the agents face as they implement new technology and as they compete with online sellers.

This year’s survey has the distinction of having been conducted immediately prior to the start of the COVID-19 crisis. As such, it provides a snapshot of agent attitudes just before the many changes that occurred as agencies took action to adapt to the new realities rooted in the need to cope with the effects of the coronavirus on business. These benchmarks will provide a valuable “before” picture as part of a “before-and-after” analysis conducted in next year’s 2021 Independent Agent Survey.

RESPONSE DEMOGRAPHICS The demographic snapshot of this year’s survey respondents is similar to those of previous years, however they do contain a few interesting variations. The largest group to respond by age was 50-59; this is younger than the one leading age group has been in the past. Overall, this contributes to a good age spread. Also of note is a slightly higher number of women responding (23.7%).

The vast majority of those responding are agency owners (68.6%), with the next big group producers (13.9%). This is good for the sample because the people who really know most

70

How many years have you worked in the P&C insurance industry?

about what is going on in the agency are the ones telling us.

There has been a slight bump up this year in the percentage of agencies reporting that they are organized as sole proprietorships; this may be attributable to the recent addition to PIA’s membership ranks of hundreds of former independent contractors with Nationwide, who have transitioned to the independent agency distribution system.

Overall, the characteristics of agencies participating in the 2020 NUPC/PIA Independent Agent Survey show that agency-owner principals are largely driving the responses.

30

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How old are you?

35

5 5.2%

9.1%

9.4%

8.3%

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Less than 5 years

5–10 years

11–15 years

16–20 years

More than 20 years

12 | 2020 V6

0

0.9%

7.8%

12.7%

31.9%

19.0%

25.0%

Under 30

30–39

40–49

50–59

60–64

65 and Prefer not older to say

2.6%

www.pianet.com | PIA CONNECTION

TECHNOLOGY AND DIGITAL SERVICES Respondents were offered a menu of potential choices when asked a broad question about what challenges their agency faces when it comes to adapting to new technologies, and told to check all that apply. Six factors showed little statistical difference, less than +-3%. That means these leading concerns are inter-related: • Insufficient training • Insufficient staffing • Lack of financial or other support from my carriers • Insufficient budget

There are two broad strands running through these responses. First, concern about how much that necessary technology will cost, and what will be the measurable ROI benefit? And second, how supportive will carriers be?

The upgrades/changes that will be needed are significant, and agencies are concerned with how they are going to pay for it. Agency owners know that needed technology upgrades will cost big bucks.

• Cultural resistance • Cultural resistance • Lack of compatibility with most of my carriers • Cultural resistance • No clear ROI

What challenges does your agency face in adopting new technologies?

Insufficient training

38.6%

Insufficient staffing

31.8%

Lack of financial or other support from my carriers

31.2%

Insufficient budget

27.3%

No clear ROI

26.8%

Cultural resistance

25.2%

Lack of compatibility with most of my carriers

22.7%

Siloed legacy systems

15.3%

Other

12.1%

0

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What is your gender?

10

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30

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40

How would you describe your primary function at your agency?

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70

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60

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40

30

30

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5

73.5%

23.7%

Male

Female

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68.6%

13.9%

Agency owner/ principal

Producer

7.8%

3.2%

3.0%

Employee Marketing Customer /agent service

1.3%

0.9%

1.2%

Claims

IT

Other

CONTINUED ON PAGE 14

PIA CONNECTION | www.pianet.com

2020 V6 | 13

THE 2020 NUPC/PIA INDEPENDENT AGENT SURVEY CONTINUED FROM PAGE 13

TECHNOLOGY AND THE AGENT-CUSTOMER EXPERIENCE When asked what elements of the agency-client experience are well suited to online service, notable are two receiving very low responses: Establishment of trust; and discussions with clients that go beyond routine process and coverage.

“This comes as no surprise at all, as these form the core of the independent agent’s relationship with clients,” said PIA National Executive Vice President & CEO Mike Becker.

Other interesting points from the technology section: 57% of agencies have telecommuting in place and 37.7% have videoconferencing—particularly interesting in light of a pandemic. We may see this change significantly as agencies grapple with new ways to run their offices remotely.

Just over half (56%) of agents say that data security and compliance is #1 concern when it comes to serving clients online. This is an important challenge, but can be overcome with the right planning, education and training.

Overall 56% of respondents say it’s very or extremely important to their competitive success to be able to deliver insurance products in a digital environment.

“ONLINE COMPETITION, FINDING TALENT AND GROWTH ARE TOP-OFMIND FOR MOST AGENCY OWNERS, SCORING WELL AHEAD OF OTHER CONCERNS.” —PIA NATIONAL CEO MIKE BECKER AGENTS LIST THEIR MOST SIGNIFICANT CHALLENGES: 1) COMPETITION FROM ONLINE AND/OR DIRECT-TO-CONSUMER PROVIDERS; 2) ATTRACTING AND RETAINING TALENT; AND

Three responses top the list by a significant margin when agencies are asked to rate their most significant challenges: 1) competition from online and/or direct-to-consumer providers; 2) Attracting and retaining talent; and 3) finding business development opportunities/growth opportunities.

“This tracks perfectly with what we hear from independent agents regularly. Online competition, finding talent and growth are top-of-mind for most agency owners, scoring well ahead of other concerns,” Becker said.

There is almost a total balance when agencies are asked how concerned they are about online competition. About half say they are slightly concerned or not concerned, with another half saying they are very or extremely concerned.

The rest are in the middle, saying they are moderately concerned.

When it comes to the support agents want from carriers, they are clear. According to the survey, the No. 1 thing agents want from carriers is marketing-sales support as 67.5% of agents rated this as very important or extremely important.

What elements of the agency-client experience are well & poorly suited to online service?

Payment of premiums Filing a claim Changes to a policy Answering routine process and coverage questions Solicitation for purchase of additional coverage Discussions with clients that go beyond routine process and coverage questions Establishment of trust Other 0

20

40 Well

60

80

100

Poor

3) FINDING BUSINESS DEVELOPMENT/GROWTH OPPORTUNITIES.

14 | 2020 V6

www.pianet.com | PIA CONNECTION

56% 38.6%

What concerns do you have when it comes to serving your clients online?

31.8%

Data security/ privacy compliance

56.4%

Losing control

46.0%

Inability to offer all the same

41.3%

Clients sharing access to our files with other agents

32.4%

Record keeping

30.0%

Other

AGENTS RATED LOWEST FOR USE OF ONLINE WITH CLIENTS: 1) ESTABLISHMENT OF TRUST

8.3%

I don't have any concerns about serving clients online.

13.8%

0

SAY IT’S VERY OR EXTREMELY IMPORTANT TO DELIVER INSURANCE PRODUCTS DIGITALLY.

10

20

30

40

50

2) DISCUSSIONS WITH CLIENTS THAT GO BEYOND ROUTINE PROCESS AND COVERAGE.

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What are the most significant challenges your agency faces?

Competition from online and/or direct-to- 54.4% consumer insurance providiers

“THIS COMES AS NO SURPRISE AT ALL, AS THESE FORM THE CORE OF THE INDEPENDENT AGENT’S RELATIONSHIP WITH CLIENTS.” —PIA NATIONAL CEO MIKE BECKER

Attracting and retaining talent 50.4% Finding business development 47.0% opportunities/growth opportunities Professional development 27.0% for existing employees Perpetuation planning 24.1% Integrating insurtech 22.5% Barriers to collaborating 22.0% with carrier-partners Product innovation 20.8% Promoting diversity and inclusion 8.1% at the agency Other 7.3% 0

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MORE FROM THE 2020 NUPC/PIA AGENT SURVEY: AGENTS AND INSURTECH https://www.propertycasualty360.com/2020/03/30/ insurance-agents-and-insurtech-what-gives/ TODAY’S INSURANCE AGENT DEMOGRAPHICS https://www.propertycasualty360.com/2020/03/31/ 2020-agent-survey-todays-insurance-agent-demographics/ HOW TECHNOLOGY DRIVES COMPETITION https://www.propertycasualty360.com/2020/04/01/ 2020-agent-survey-how-technology-drives-competition/

PIA CONNECTION | www.pianet.com

PODCAST: 2020 AGENT SURVEY PC360’s Editor-in-Chief, Insurance & Tax Publications, ALM Media, LLC discusses solutions to common independent agent issues and misunderstandings in this podcast with Michael Jans, founder of Agency Revolution.

Listen here: https://www.podbean.com/media/share/ pb-nijux-e00cab?utm_campaign=w_share_ep&utm_ medium=dlink&utm_source=w_share

2020 V6 | 15

YOUR MEMBER BENEFITS FROM PIA NATIONAL BUSINESS-BUILDING TOOLS ✦ MARKETING REIMBURSEMENT PROGRAM. PIA is here to help with specific marketing tools PIA members can use and a $250 reimbursement to help offset the cost! www.pianet.com/agentsupport ✦ PIA DMV: PIA’S DIRECT MARKETING VAULT. Targeted direct mail and digital advertising campaigns. Turn-key yet highly customizable. www.piadmv.com ✦ PIA BRANDING PROGRAM. Print ads, radio commercials, consumer-oriented flyers and social media support for PIA members. www.piabrandingprogram.com ✦ 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 ✦ HARTFORD FLOOD INSURANCE. PIA’s endorsed flood provider since 2004. Dedicated local sales directors Alexi’s and book transfer/rollover team plus pick great commissions for PIA members.

Call (860) 547-5006. ✦ 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.

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

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

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

AGENCY MANAGEMENT TOOLS

INSURANCE PRODUCTS ✦ 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 AGENTS UMBRELLA PROGRAM. Excess insurance protection includes E&O and business liability coverage, with available endorsements for EPL and personal coverage. ✦ 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; and AD&D. www.piatrust.com

TOOLS FROM THE PIA PARTNERSHIP, PIA’S COMPANY COUNCIL ✦ WINNING@TALENT. Your guide to hiring, motivating and retaining the best agency employees.

Nicolette’s ✦ AVYST EFORMS WIZARD. pick 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!

AGENCY JOURNEY MAPPING. Value your agency, maximize your retirement income, and plan for unexpected death/disability while creating a perpetuation plan for your agency.

✦ FLOODBROKER.COM. Sell more flood insurance with a flood quoting Web portal. A PIA member exclusive!

✦ CYBER 101. Cyber education for you and your clients.

✦ PIA AGENCY MARKETING GUIDE. Hands-on marketing tips from industry experts. Published annually.

✦ SMALL BUSINESS INSURANCE & THE INTERNET—THE VOICE OF THE CL CUSTOMER. Stay ahead of online competition in commercial lines.

✦ 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.

✦ 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.

✦ 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. ✦ HIRE WITH IDEALTRAITS. The comprehensive, go-to hiring tool for agencies looking to hire top performers. www.idealtraits.com/pia ✦ 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, probusiness perspective and who support our issues. www.piapac.com

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

16 | 2020 V6

www.pianet.com | PIA CONNECTION

PIA MEMBER BENEFIT SPOTLIGHT

CAPITALIZE ON THE RESURGENCE OF DIRECT MAIL WITH THE PIA DMV ACCORDING TO A RECENT STUDY FROM

TO LEARN MORE ABOUT THE PIA DIRECT MARKETING VAULT AND START CREATING YOUR AGENCY’S NEXT MARKETING CAMPAIGN, PLEASE VISIT:

Valassis, 37% of consumers are more excited to receive their mail each day than before the pandemic. Is your agency marketing taking advantage of this unexpected trend?

Using the PIA DMV: PIA’s Direct Marketing Vault, you can capitalize on the resurgence of direct mail while also reaching those same prospects online through our direct mail and digital advertising services, available exclusively to PIA members.

And now, through the PIA Member Reimbursement Program, PIA members can get $250 back when launching a PIA DMV marketing campaign.

Through the PIA DMV, PIA members access a marketing portal through which they can select the types of people they would like to market to. They can then customize postcard designs PIA has created for members or create their own postcard designs.

These designs can then be extended to digital advertising as well.

Our program partner, One Brand, then prints and mails the postcards and places your agency’s digital advertising for you. All you need to do is handle the incoming leads.

https://pianet.com/PIADMV TO LEARN HOW YOU CAN RECEIVE $250 BACK WHEN LAUNCHING A PIA DMV MARKETING CAMPAIGN, PLEASE VISIT THE PIA MEMBER REIMBURSEMENT PROGRAM AT:

https://pianet.com/agentsupport Thank you! The reimbursement program described above is made available to PIA members through generous donations from the following PIA Partnership carriers: National General Insurance, Progressive Insurance, State Auto Insurance Companies and West Bend Mutual Insurance Company. PIA thanks these companies for their support of professional insurance agents.

UPCOMING PIA WEBINARS Date

Topic

Time

9/16

How to Quickly Identify and Avoid Hiring Sales Phonies

2:00 PM ET

9/17

Hartford Flood System Webinar

10:00 AM ET

9/22

Hartford Flood System Webinar

2:00 PM ET

9/29

How eForms Wizard is Helping Agents Address Remote Work Challenges

2:00 PM ET

10/14

Interoffice Dynamics: Sales vs. Service

2:00 PM ET

11/11

Learn How Floodbroker.com Can Help You Sell More Flood Insurance

2:00 PM ET

To register for an upcoming webinar, visit: Pianet.com/calendar

Questions? Contact ProductsandServices@pianet.org

PIA CONNECTION MARKETPLACE

PIA DMV ult

Va PIA’s Direct Marketing

www.auw.com

Customizable postcards and digital advertising for PIA members.

m com v.co mv. adm piad pi

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

To learn more and get a contract,1/6/20 5:17 PM SBP_PIAnewsletter_010619.indd 1 or to inquire about display advertising, please contact Alexi Papandon at alexipa@pianet.org or 703-518-1353.

PIA CONNECTION | www.pianet.com 2020 V6 | 17

$

AGENCY MARKETING

FLOOD INSURANCE How To Prepare Your Clients For The Next Hurricane

ACCORDING TO THE Hartford, 20% of flood claims come from properties beyond high-risk flood zones. Are your clients aware of the risks they face? Unfortunately, many customers believe that floods are covered by their homeowner’s insurance or commercial lines property policies. Other customers believe that a flood could never happen where they live or do business or that the government will provide assistance in their time of need. The misconceptions of flood insurance can provide you with the opportunity to have informative discussions with your insureds before the next hurricane.

HOW CAN HARTFORD FLOOD HELP? The Hartford is dedicated to providing agents with extraordinary customer service, especially when helping agents rollover their flood book. In addition to being a leading carrier for FEMA’s 18 | 2020 V6

National Flood Insurance Program, The Hartford has been PIA’s nationally endorsed flood provider since 2004.

During that time, they have proven to be a great partner to PIA members from coast-to-coast.

They offer PIA members preferred commission rates for new, renewal and transfer business as well as dedicated flood marketing representatives to aid.

They recently moved to the Torrent Flood platform which provides a host of new tools to their flood agents as well as an improved transfer program sure to increase revenue to participating agents.

As part of PIA’s ongoing partnership with The Hartford’s flood insurance program, PIA members have access to monthly eNewsletter’s

"According to The Hartford, 20% of flood claims come from properties beyond high-risk flood zones."

www.pianet.com | PIA CONNECTION

"Your Homeowners Insurance doesn't cover flood damage, but we do! " - Floodbroker

produced by The Hartford for its flood insurance agents. PIA members visiting PIA’s Flood Insurance Marketing Support Center can download flyers to help their personal lines and commercial lines clients prepare for floods, deal with the aftermath of flooding, and prepare for a visit by an adjuster.

The Hartford also provides a vast library of marketing materials to help your agency market flood insurance effectively.

The Hartford Flood program is available to PIA members and their policyholders in all 50 states, the District of Columbia and Puerto Rico.

WHAT IS FLOODBROKER.COM? Floodbroker.com is a unique service that helps you increase flood insurance sales in your agency while potentially reducing errors and omissions exposure when it comes to offering a flood policy. The result is increased revenue for you, a higher PIF count across your PIA CONNECTION | www.pianet.com

books of business, and a covered client.

Floodbroker has automated the process of obtaining a flood insurance quote through the NFIP and makes this technology available to participating PIA member agents through their very own agency-branded, flood

insurance microsites. Agents direct their clients and prospective insureds to their microsite where they can learn what flood zone they are in and answer a few questions to receive a flood insurance quote. The resulting quote is emailed to their agent who completes the sale offline using their agency’s regular flood insurance carrier. In some cases, an actual quote cannot be generated online, but the prospect can still submit the information they have input into the form so that their agent can get back to them and continue the flood insurance sale offline.

LEARN MORE To get started with The Hartford Flood Program, PIA members should visit, https://pianet.com/hartfordfloodinsurance.

To get started with Floodbroker.com, PIA members should visit, https://pianet.com/floodbroker.

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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.