PIA Connection—PIA’s 90th Anniversary

PIA CONNECTION 2021 V6

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PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

PIA’S 90TH ANNIVERSARY PAGES 10–15

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

CONTENTS

PRESIDENT-ELECT Anthony Curti, CIC, LIC (MI) tcurti@acrisure.com

NEWS BRIEF 6-7 Liberty Mutual Agrees to Buy State Auto for $2.29 Billion…AON, Willis Towers Watson End Merger Agreement…Florida Citizens to Insure 766,000 By Year’s End…Former Georgia Insurance Commissioner Convicted of Fraud…Few Missouri Homes Have Earthquake Insurance…NASA Predicts Big Rise in Coastal Flooding in 2030s.

VICE PRESIDENT/TREASURER Gerald F. Hemphill, CIC, LUTCF (VA/DC) ghemphill@gfhinsurance.com SECRETARY/ASSISTANT TREASURER Richard A. Savino, CIC, CPIA richs@broadfieldinsurance.com IMMEDIATE PAST PRESIDENT Dennis D. Kuhnke, CIC, CPIA (WI) dkuhnke@robertsonryan.com EXECUTIVE VICE PRESIDENT/CEO Mike Becker (PIA National) mbecker@pianational.org PUBLISHER/EDITOR-IN-CHIEF Ted Besesparis | tbesesparis@pianational.org MANAGING EDITOR Sade Hale | shale@pianational.org ADVERTISING DIRECTOR Alexi Papandon, CAE | apapandon@pianational.org GOVERNMENT AFFAIRS EDITOR Jon Gentile | jgentile@pianational.org REGULATORY AFFAIRS EDITOR Lauren Pachman, Esq. | lpachman@pianational.org MARKETING EDITOR Nicolette Bowman | nbowman@pianational.org CONTRIBUTING EDITOR Patricia A. Borowski, CPIW PRODUCTION EDITOR Laurel Prucha Moran | laurelpm@blueroomstudio.com July–August 2021 PIA Connection is published ten times yearly by the National Association of Professional Insurance Agents.

419 North Lee Street Alexandria, Virginia 22314 ©2021 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.

COVER STORY PIA’S 90TH ANNIVERSARY Decades of Accomplishments for Professional, Independent Insurance Agents from the 1930’s to the 2020’s

10-15

OVER 90 YEARS, PIA HAS ASKED, “WHY NOT?” 15 Pat Borowski, PIA senior VP emeritus and 40-year staff veteran, reflects on 40 years working for PIA National.

“More than any other insurance group, it has been PIA agency-owners, and thus PIA National, that have consistently dared to ask and consequentially to act upon the idea of “why not?” In doing so they have kept good solid growing independent insurance agencies in business, the communities they served more stable and the insurers that finally see the light, profitable.”

CAPITOL HILL UPDATE PIA National vice president of government relations Jon Gentile looks at how PIA priorities are advancing in Congress. A PIA-backed bill, the Federal Insurance Office Abolishment Act of 2021, was reintroduced in the House on July 30 with our strong support after PIA spearheaded its introduction in the Senate in March.

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DEPARTMENTS From the President . . . . . . . . . . . . . . . . . . 5 From the CEO . . . . . . . . . . . . . . . . . . . . 5 PIA National Member Benefits . . . . . . . . . . . 16 PIA Member Benefit Spotlight . . . . . . . . . . . 17 PIA Connection Marketplace . . . . . . . . . . . . 17 Upcoming PIA Webinars . . . . . . . . . . . . . . 17 PIA Affiliate Listings . . . . . . . . . . . . . . . . 18 Last Word . . . . . . . . . . . . . . . . . . . . . . 19

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

PIA CONNECTION | of www.pianational.org For additional information on any the subjects addressed in this publication, please access the PIA National website at www.pianational.org.

Background cover image: iStockphoto

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FROM THE PRESIDENT WITH ALL THAT ALL OF US HAVE BEEN through over the last year-and-more, it gives me great satisfaction to report that our Association is strong, and is meeting our challenges and helping our members in many ways.

The COVID crisis has meant that PIA National has devised many new ways—and created many new programs—to provide even more assistance to PIA members and their agencies than ever before.

We’ve done this as we continue to rack up legislative wins on Capitol Hill and pursue our agenda at the NAIC. We are also doing great work for PIA members with our carrier partners who are members of The PIA Partnership.

PIA is an activist organization that remains true to our principles. We are fully engaged in Congress, in state capitals and with regulators. We are proud, unabashed advocates for professional independent insurance agents and the American system of free enterprise—and we always will be.

PIA continues to be a “thought leader” in the insurance industry, publishing a steady stream of articles, op-eds and think pieces.

For the fifth consecutive year, in cooperation with the National Underwriter, we’ve done the PIA/National Underwriter Independent Agent Survey, which tracks agents’ experiences and attitudes in many areas. The new 2022 survey will be out in January.

At PIA, we advocate for the things that are for the betterment of the industry, and for the protection of the agency distribution system. At the same time, we help our carriers understand how to work effectively with us—and us with them—so that it’s a win-win for everyone.

As we mark PIA’s 90th Anniversary this year, let me take this opportunity to thank you for being a member of the best agents association, bar none: PIA! And if you are not yet a member, please accept my personal invitation to you to join us.

Wayne L. White President

FROM THE CEO WHEN AN ASSOCIATION CELEBRATES A significant anniversary, there is a temptation to focus only on the past, especially when there is a significant history of accomplishment spanning many decades. That temptation is particularly acute when it comes to PIA, which was founded 90 years ago and has an impressive list of achievements over the years.

On December 12, 1931, 90 years ago, board members of PIA’s precursor organization met in Washington, D.C, and adopted eight agent-focused Founding Principles. All eight are as current today as they were then. You can see them on page 12, at the start of an article that traces PIA’s accomplishments, decade-by-decade.

While we are mindful of PIA’s past, it is merely our anchor.

We live, work and advocate for our members’ interests in real-time, in the present, and always focus on building a better future. PIA can meet the challenges of the future because we are grounded in firm principles and successful advocacy for agents that have stood the test of time.

PIA CONNECTION | www.pianational.org

I love the people in this industry. Professional, independent insurance agents are some of the best people in their communities. Our carrier partners believe in partnering with local agents for their own benefit and that of their appointed agencies.

The incredible team at PIA at the state and the national level work tirelessly for the betterment of all PIA members. We believe that we owe it to our members to help them evolve, so they are more profitable, more efficient and more successful.

We all share an abiding belief in the agency distribution system, our industry and our communities. We protect people and help to make them whole if there’s a loss.

It’s a lot more than just a job. It’s a noble calling.

Mike Becker CEO

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!

NEWS BRIEF

LIBERTY MUTUAL AGREES TO BUY STATE AUTO FOR $2.29 BILLION

to a historic low of 12.7 percent, according to the

Liberty Mutual Holding Co. agreed to buy State Auto Financial Corp. for about $2.29 bil-

Missouri Department of

lion in cash, adding roughly 3,400 independent agencies in 33 U.S. states.

Commerce and Insurance.

“State Auto Group’s capabilities and product expertise are an ideal complement to Liberty Mutual’s domestic personal lines and small commercial business,” Liberty

Earthquake insurance costs also are up 760 percent compared to 2000, and

Mutual Chief Executive Officer David Long said in a statement.

many insurers only offer

READ: Liberty Mutual – State Auto Deal

coverage with deductibles

“We believe the largest players with scale and deep pockets will continue to expand

at 25 percent of the value

distributions channels,” said Matthew Palazola, an analyst at Bloomberg Intelligence.

of insured homes.

Liberty’s deal solidifies its position with independent agents.”

“We are very concerned about the state of earthquake insurance in Mis-

and Exchange Com-

approved rate adjustments

souri,” said Missouri

mission, both Arthur J.

to raise average premi-

Department of Commerce

Gallagher & Co. and Willis

ums by an additional 2.3

and Insurance Director

Towers Watson announced

percent in February 2022,

Chlora Lindley-Myers.

the termination of a May

if approved by Florida’s

She added that the drop

12, 2021, agreement under

Office of Insurance Regu-

in earthquake insurance

which Gallagher would

lation. The average rate

spans several states and

pay $3.57 billion to acquire

increase for new and

will take a multistate effort

Willis Re and some other

renewing policies after

to solve. Missouri will host

Willis Towers Watson

Aug. 1 will be 5.2 percent.

a conference on the issue

operations.

For renewals after Feb. 1,

in September.

7.6 percent. Under Senate

have put Aon ahead of the

FL CITIZENS TO INSURE 766,000 BY YEAR’S END

world’s largest insurance

Citizens Property Insur-

broker Marsh & McLennan

ance Corp., Florida’s

percent cap will be gradu-

Cos. Inc.

state-backed insurer of

In June, the Department of

last resort, says it is carry-

Justice had sued to block

ing 638,263 policies as of

the deal, saying it would

June 30, up nearly 30,000

reduce competition and

since May 31 and more

could lead to higher prices.

than 160,000 from June

Aon will pay $1 billion as

30, 2020. It now expects

a termination fee to Willis,

to see 766,000 enrolled by

it said.

year’s end.

Meanwhile, in statements filed with the Securities

AON, WILLIS TOWERS WATSON END MERGER AGREEMENT Insurance brokers Aon PLC and Willis Towers Watson PLC said on July 26 they had agreed to terminate their $30 billion merger agreement and end their litigation with the U.S. Department of Justice, according to a joint statement. The deal would

6 | 2021 V6

2022, rates will be going up Bill 76, which was recently signed into law, a 10 ally raised to 15 percent on premium increases for Citizens’ customers.

FEW MISSOURI HOMES HAVE EARTHQUAKE INSURANCE

FORMER GEORGIA INSURANCE COMMISSIONER CONVICTED OF FRAUD A jury in Atlanta took less than two hours to convict suspended insurance commissioner Jim Beck on 37 criminal counts relating to more than $2.5 million embezzled from his former

The percentage of homes

employer. Federal officials

with earthquake insurance

began investigating Beck

in Missouri’s highest-risk

as he was elected state-

Meanwhile, the Citizens

areas, including along

wide in 2018 as Georgia’s

Board of Governors

the New Madrid fault, fell

chief insurance regula-

www.pianational.org | PIA CONNECTION

!

NEWS BRIEF NASA PREDICTS BIG RISE IN COASTAL FLOODING IN 2030S In the mid-2030s, every U.S. coast will experience rapidly increasing high-tide floods, when a lunar cycle will amplify rising sea levels caused by climate change, according to a new study led by members of the NASA Sea Level Change Science Team from the University of Hawaii. The study also indicated that these floods will sometimes occur in clusters lasting a month or longer.

iStockphoto

“Low-lying areas near sea level are increasingly at risk and suffering due to the increased flooding, and it will only get worse,” said NASA Administrator Bill Nelson. “NASA’s Sea Level Change Team is providing crucial information so that we can plan, protect, and prevent damage to the environment and people’s livelihoods affected by flooding.” The higher seas, amplified by the lunar cycle, will cause a leap in flood numbers on almost all U.S. mainland coastlines, Hawaii, and Guam.

tor, indicting him weeks

tors and Beck’s lawyers

ney’s office and our law

dollars,” said Georgia

after the Republican took

declined comment immedi-

enforcement professionals

Insurance and Safety Fire

office in 2019. Sentenc-

ately after the verdict.

for their work bringing

Commissioner John F.

ing is scheduled for Oct. 8

this case to a close and

King in a statement. King

on mail fraud, wire fraud,

“While today is a som-

ensuring justice for the

was appointed by Gov.

money laundering and tax

ber one for our state, I

gross misuse of Georgia

Brian Kemp after Beck was

fraud charges. Prosecu-

commend the U.S. Attor-

Underwriting Association

charged.

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

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2021 V6 | 7

Good Business Decisions Help An Agency Succeed and Secure Its Future.

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PIA membership gives you access to resources, products, and services designed to make it easy for you to run your business—not only day-to-day but with strategic planning for the future.

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Business-building tools - Numerous tools to build your business and grow from PIA Market Access to eForms Wizard to the PIA Member Reimbursement Program, and more!

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Advocacy - PIA fights for agents in state capitals around the country and in

the PIA Blueprint for Agency Success, hiring tools, and more. And, let PIA take care of your ACORD End User License fees!

Washington, D.C. PIA’s daily vigilance has achieved tax relief for agencies, permanent repeal of the Cadillac Tax, introduction of bill to repeal the Federal Insurance Office, and more.

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MEMBERS

EARN MORE PIA members can

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to make sure the views of independent agents are accurately represented.

more in commissions when they write business with PIA Market Access, PIA’s flood program with The Hartford, and PIA Cyber Insurance.*

The above is a snapshot of the many PIA member benefits available through a PIA membership to help you save money, maximize commissions, and grow your agency.

MAKE A GOOD

DECISION TODAY

JOIN PIA!

AND

For more information about PIA membership, or to join now, visit: www.pianational.org *The availability and effectiveness of any of the named programs depend on each agent’s individual circumstances. Many features, including applicable state law and regulation, may cause individual results to differ from those of this hypothetical PIA member, and these results are not necessarily indicative of future commission earnings. Results will vary by agent, location, regional market variations, and other factors. This example is for informational, illustrative, and educational purposes only. Members or prospective members should not assume their commissions will equal or exceed those in the example shown above. The specific products listed in the example may not be available to all PIA members and do not represent all PIA products. The market for and availability of each product may vary among and even within states.

CAPITOL HILL UPDATE

By Jon Gentile Vice President, Government Relations PIA National

PIA PRIORITIES INTRODUCED

ADVOCACY MATTERS In November 2016, PIA became the first national insurance association to publicly call for the repeal of the FIO. Since then, we helped develop the Federal Insurance Office Abolishment Act and have continued to build support for it.

Thanks to the advocacy of engaged PIA members from Virginia and Wisconsin during our 2021 Advocacy Day, Reps. Cline and Tiffany recognized the importance of this issue and the need for its reintroduction. This bill’s introduction is a testament to the value of true grassroots advocacy, and, as ever, we are thankful to our members for their hard work and enthusiastic support.

PIA will continue to build support for this legislation in both the House and Senate throughout the 117th Congress.

NFIP CONTINUOUS COVERAGE BILL INTRODUCED On July 27, Reps. Kathy Castor (D-FL), and Blaine Luetkemeyer

(R-MO) reintroduced H.R. 4699, the Continuous Coverage for Flood Insurance Act. The bill would provide continuous coverage protection to policyholders who leave the National Flood Insurance Program (NFIP) to purchase a private flood policy and then need to return to the NFIP. This bill would allow consumers whose private-market flood policies are cancelled in the middle of a policy year, through no fault of their own, to return to the NFIP and purchase a policy at their previous rate. Without continuous coverage, consumers with subsidized NFIP policies are effectively penalized with higher rates for attempting to return to the NFIP after leaving it for the private market.

The continuous coverage bill was included in a long-term NFIP reauthorization package that passed the House Financial Services Committee in June 2019. PIA strongly supports H.R. 4699 and views the inclusion of a continuous coverage provision as a top priority in the NFIP reauthorization process.

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

AC

L E PAR ER

PIA CONNECTION | www.pianational.org

another Dodd-Frank creation.

Specifically, the Executive Order (EO) directs the Treasury secretary to have the FIO “assess climate-related issues or gaps in the supervision and regulation of insurers…” If an inquiry into the potential effects of climate change on the stability of the insurance industry is justified, it should be undertaken at the state level by state insurance regulators, not the federal government.

This EO is another example of opponents of state insurance regulation using the FIO as a means of improperly asserting federal authority over the insurance industry.

TN

effort to repeal the Federal Insurance Office (FIO) for years. On July 30, H.R. 4866, the Federal Insurance Office Abolishment Act of 2021 was reintroduced in the 117th Congress with our strong support. The bill was introduced by Rep. Ben Cline (R-VA) and cosponsored

by Rep. Tom Tiffany (R-WI). PIA also supports the Senate version of the repeal bill, which was introduced in March.

The Federal Insurance Office Abolishment Act will protect the successful state insurance regulatory system by repealing the FIO, an unnecessary federal bureaucracy created by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank).

PIA opposed the creation of the FIO from the outset. Many of the FIO’s duties are duplicative of other offices in the U.S. government, and, like most federal offices, since its creation, its power has increased. In its decade of existence, the FIO has sought federal regulation of mortgage insurance; inclusion in supervisory colleges, which are joint meetings of interested regulators and company officials; and uniform national standards for state guaranty associations.

In addition, it has sought to administer the National Association of Registered Agents and Brokers (NARAB). Each of these acts would be an overreach by the federal government.

A recent example of the threat posed by the FIO’s continued existence is contained in the Biden administration’s recent Executive Order on Climate-Related Financial Risk, which gave climate-related assignments to both the FIO and the Financial Stability Oversight Council (FSOC),

P I NN

PIA HAS BEEN LEADING THE

Encompass Insurance Erie Insurance State Auto Insurance Companies 2021 V6 | 9

Decades of Acc Professional In

1931 OUR FOUNDING PRINCIPLES PIA was founded in 1931 with objectives that are as relevant today as they were then: • Educate agency owners and staff about insurance concepts; • Keep agents informed about changing company offerings; • Allow agents to assist one another in proper underwriting of their business; • Increase cooperation between carriers and agents; • Encourage uniform policy writing and assist in proper form completion; • Advocate for agents in legislative matters; • Foster acquaintanceship among agents so they could support one another; • Protect the American Agency System.

1960s The 1960s marked the beginning of a transition in the association, transformed from an internally oriented organization to one also able to impress its views upon the industry, government and general public—views that were responsible and constructive, as well as in the best interest of members and consumers. That engagement continues to today.

Adopted unanimously by the NAMIA (PIA) Board of Directors, December 12, 1931.

1950s CREATION OF ACCOUNT CURRENT SYSTEM Working with carrier partners, PIA created the account current system that is still used in the independent agency/carrier system today.

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www.pianational.org | PIA CONNECTION

complishments for ndependent Insurance Agents A group of NAMIA Presidents posed in 1953 (right). Standing in the center is John R. Chappell of Richmond, Virginia, NAMIA’s first president. Standing to his right is Fred E. Reuning of Bristol, Virginia, NAMIA’s 6th president. Seated on the far left is NAMIA’s 20th president, John H. Kroll of Washington, D.C. Seated behind him is Charles M. Boteler, also from Washington, NAMIA’s president. Mrs. John R. Chappell is seated on the far right. (Below) NAMIA members gather outside for a group portrait during their third annual national convention held in Washington, D.C., September 26-28, 1934.

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2021 V6 | 11

required that the main P&C insurer in the agency had to agree and provide a managing oversight support.

1970s

PIA National Presidents, mid-2000s: (left to right): Kenneth R. Auerbach; Ray L. Peretti; Donna L. Pile; Terry R. Adams.

CREATION OF THE NFIP In response to a collapse in availability of flood insurance coverage, PIA successfully advocated for the creation of the National Flood Insurance Program (NFIP). Beginning in 1967, PIA drafted enabling legislation and lobbied Congress for its passage. Congress created the NFIP in 1968.

AGENCY TRANSITIONS PIA successfully advocated for state laws and regulations that would address the unexpected death of an agency owner.

Upon the death of the agent/owner, the estate could apply to the DOI for a temporary P&C agent license allowing the independent agency to operate for 90/120 days on servicing-only business that was already on the books until either the agency could be sold or another agency employee could secure a fulltime P&C license. The first versions of these laws/regulations

Although the association’s commitment to state regulation of insurance remains firm to today, it responded to the federal government’s growing interest and involvement in the insurance business. It took a leadership role in formulation the industry’s positions on flood, crime and no-fault auto insurance.

It was during this time that NAMIA was in the forefront of the producer movement to prohibit banks from entering the insurance agency business.

It also launched the ICAP—Insurance Consumer Action Panel—which demonstrated that insurance buyers’ complaints against companies and agents could be settled through third-party arbitration instead of time-consuming lawsuits.

That experience laid the groundwork for the association’s later success in creating the Consumer Insurance Interest Group (CIIG) as a vehicle for cooperative action between the industry and consumer activities.

CROP INSURANCE When it became clear that the federal government was going into the crop insurance business, with federal employees acting as crop agents, PIA worked to assure that independent insurance agents could write federal crop insurance policies. Ultimately, Congress decided that having federal employees distribute crop insurance had failed, and PIA successfully argued for private sector distribution through independent agents.

REGULATORY CHANGES During the market crisis of the 1970s (which extended into the 1980s), PIA created and led the movement countrywide

THE CHANGING FACE OF PIA LOGOS The first national association logo was not adopted until 1949, and it showed a mounted warrior carrying a flag on which was inscribed “Mutual Insurance” with “First in America” written at the bottom.

In 1977, a year after the association changed its name from “Mutual” to “Professional,” The logo changed again. The words “Professional Insurance Agents” were inscribed around an oval containing the lettering “PIA.”

The next logo was one with the name of the association encircling the liberty bell and the words “Mutual Insurance – First in America.”

In 1987, the logo was changed again to have the letters “PIA” done in what was considered a more modern way.

This logo was changed in 1962 to the shape of a shield with “Service – Savings” in small letters above the acronym “MIA” in very large lettering.

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In 2021, the logo was changed again, with the letters “PIA” in the center of a circle which can accommodate various text. The national version of the logo says “National Association of” and “Professional Insurance Agents: around the circle. There are multiple versions of the logo with custom text, including versions for all PIA affiliates and stakeholders such as The PIA Partnership.

www.pianational.org | PIA CONNECTION

to adopt agency termination laws and regulations across the country. PIA successfully advocated for legislative changes to personal lines cancellation/nonrenewal laws/regulations across the country. In less than one year we succeeded in advocating for changing the policy cancellation/nonrenewal laws for all commercial lines insureds in the same way.

NAME CHANGE IN 1976 Ever since the founding of what was to become PIA in 1931, our association was named the National Association of Mutual Insurance Agents (NAMIA) and represented independent agents who represented mutual carriers. Over the years, the differences between mutual agents and stock agents diminished, so in November 1976, NAMIA changed its name to the National Association of Professional Insurance Agents (PIA) and opened membership to all professional independent insurance agents.

When PIA was formed, with help from mutual insurance companies, agency members had to have a majority of mutual insurers in the agency. PIA never required that all agencies have only mutual insurers in the agency. In the 1960s this was changed to having at least one mutual insurer, and then in 1976 the mutual requirement was dropped altogether.

1980s STANDARDIZATION In the market crisis of the 1980s, PIA’s lobbying led to additional changes to the policy cancellation/nonrenewal laws so all commercial lines insureds in the same way.

EARLY USE OF DATA – PIA BUSINESS LINK PIA innovated one of the earliest uses of data to match agents looking for carriers and carriers in need of agents.

In the market crisis of the 1980’s, many carriers terminated agency appointments. PIA created Business Link, a confidential database maintained by PIA to facilitate agency/company appointments of PIA members. The Business Link program applies a business/data model-driven approach to “matching” carriers to agencies. In the late 1990’s, PIA transferred the program to PIA affiliates, some of whom still use it.

1990s PIONEERING WORK ON DIVERSITY In 1994, PIA convened an all-industry series of meetings in Detroit to address the need for greater diversity in the insurance industry. The dialogue opened in these sessions was the subject of a report published as a book the following year by PIA, Doing Business With the New Insurance Consumer.

COMPANY COUNCIL OF EXECUTIVE OFFICERS (PIA-CCEO) FORMED In 1996, PIA provided the impetus along with startup funding for an agency-company organization, the Company Council of Executive Officers (CCEO). Initially, carrier representatives PIA CONNECTION | www.pianational.org

PIA National President Gareth (Gary) W. Blackwell, Jr., addresses the 2017 PIA Federal Legislative Summit.

working with PIA leadership concentrated solely on conducting cutting-edge research and engaging in dialogue to support the American Agency System. The CCEO grew and expanded its mandate, becoming the precursor of The PIA Partnership.

2000s PIA ADVOCATES FOR THE TERRORISM RISK INSURANCE ACT (TRIA) Less than one month after the September 11, 2001 terrorist attacks, PIA took a leadership stance along with our industry allies which led to the creation of the Terrorism Risk Insurance Act (TRIA). Less than a year later, TRIA was passed and PIA attended the White House bill signing ceremony at the invitation of President George W. Bush.

THE PIA PARTNERSHIP IS FORMED The PIA Company Council of Executive Officers (CCEO) was transformed into The PIA Partnership, with an expanded membership and mandate.

For more than 20 years, The PIA Partnership has identified areas of opportunity in the agency-company partnership, conducting solution-oriented research and producing a steady stream of business tools agencies can use to build their business, operate more effectively, and achieve greater success.

ADVOCACY FOR THE NATIONAL FLOOD INSURANCE PROGRAM PIA begins what would become over two decades of legislative advocacy for long-term congressional reauthorization of the National Flood Insurance Program (NFIP). Many times, Congress granted only multiple short-term reauthorizations, and many times the program lapsed for short periods. PIA successfully advocated for several five-year reauthorizations and is recognized as an industry leader in flood insurance.

FLOOD INSURANCE PRODUCERS Beginning in the 2000s and continuing to today, PIA has served as a member and rotating chair of the Flood Insurance 2021 V6 | 13

Producers National Committee (FIPNC).

PIA, ROUGH NOTES ANNOUNCE ANNUAL YOUNG INSURANCE PROFESSIONAL AWARD To encourage more young people to consider a career in the agency system, in 2007 PIA began the annual PIA Young Professional of the Year Award (YIP). For 15 years, this prestigious industry award has been sponsored by The Rough Notes Company, Inc. and its President & CEO Walter J. Gdowski, a lifelong supporter of professional independent insurance agents.

OPPOSITION TO OPTIONAL FEDERAL CHARTER PROPOSALS/SUPPORT OF STATE REGULATION One of PIA’s core principles is support of the state-based insurance regulation. In the 2000’s and 2010’s, PIA fought successfully against federal proposals to allow “optional” federal charters for insurers and producers. Multiple bills introduced calling for an OFC were actively opposed by PIA. None passed.

PIA SUCCESSFULLY DEFENDS AGENT CONTINGENT COMMISSIONS Starting in 2004, several state Attorneys General announced that they had uncovered instances of alleged bid-rigging in dealings involving a handful of top-of-the-marketplace mega brokers in insurance. Settlement agreements imposed on several insurers by then-New York Attorney General Eliot Spitzer would have the insurers “voluntarily” ban contingent commissions. Although no PIA members were ever accused on any wrongdoing, the settlement agreements would ban all contingent commissions, including those paid to Main Street independent agents, who did nothing wrong.

PIA moved to defend the reputations of all PIA members, through both legal actions and a public relations campaign.

PIA National filed an amicus, of friend-of-the-court brief in the U.S. District Court for New Jersey, challenging the elimination of contingent commissions, the first of several legal actions. In a major victory for agents, in 2007 courts held that contingent commissions were neither illegal nor unethical.

2010s PIA OPPOSES FEDERAL INSURANCE OFFICE PIA is a steadfast supporter of state regulation of insurance and strongly opposes federal insurance regulation.

In 2010, supporters of federal insurance regulation succeeded in adding creation of a Federal Insurance Office (FIO) in the Wall Street Reform and Consumer Protection Act (Dodd-Frank). At the time, the proposal to create the FIO would have given it broad regulatory authority over insurance.

PIA worked closely with the legislative staff of the NAIC to push back at this, succeeding in inserting legislative language prohibiting the FIO from acting as a regulator.

PIA is continuing to encourage support in Congress for the repeal of the FIO by seeking cosponsors for the Federal 14 | 2021 V6

Insurance Office Abolishment Act and urging House members to introduce a companion bill.

SECURED REPEAL OF THE “CADILLAC TAX” PIA fought against a provision in the Affordable Care Act (ACA) that would have imposed a 40 percent excise tax on so-called “overly generous” employer-sponsored health plans.

It would apply to fully insured and self-funded employer health plans and tax policies with limits that exceed the annual thresholds.

The tax never took effect. Throughout the decade, PIA successfully advocated for Congress to repeatedly postpone the effective date of the tax, while also lobbying for its outright repeal. Then in 2019, Congress passed the bipartisan MiddleClass Health Benefits Tax Repeal Act (H.R. 748) to repeal it entirely. President Trump signed the repeal bill into law.

SECURED INCLUSION OF INSURANCE AGENCIES IN 2017 TAX BILL PIA actively advocated for the passage of the 2017 tax bill because it provides subchapter S corporations—also known as “passthrough” corporations—with more favorable tax treatment. The law includes a tax deduction for owners of small businesses—including independent insurance agencies—that organize as passthrough corporations, reducing their potential tax burden. The 20 percent deduction has helped small businesses, including qualifying insurance agencies.

PIA/NATIONAL UNDERWRITER ANNUAL AGENT SURVEY Beginning in 2017, PIA and ALM Media, publisher of the National Underwriter/PC360, initiated the annual PIA/ National Underwriter Independent Agent Survey. The upcoming 2021 survey will be the fifth annual edition.

2020s The COVID crisis that began in early 2020 and is ongoing has meant that PIA National has devised many new ways, and formed many new programs, to provide even more assistance to PIA members and their agencies than ever before.

We’ve done this as we continue to rack up legislative wins on Capitol Hill and pursue our agenda at the NAIC. We are also continuing to do great work for PIA members with our carrier partners who are members of The PIA Partnership. We are a leading force for agents in InsurTech, forming the PIA Insurance Technology Leadership Advisory Board (PIA IT-LAB).

At PIA, we advocate for the things that are for the betterment of the industry, and for the protection of the agency distribution system. At the same time, we help our carriers understand how to work effectively with us—and us with them—so that it’s a win-win for everyone.

But above all, we continue to do what we have done without interruption since 1931, 90 years ago: serve PIA members. www.pianational.org | PIA CONNECTION

OVER 90 YEARS PIA HAS ASKED, “WHY NOT?”

By Patricia A. Borowski PIA, 90 years in business – WOW, and no I did not work for PIA all those years. However, allow me a bit of reflection.

The economic crisis of the 70s and early 80s shook insurance and its executives to its core. Insurers were running from entire states by terminating books of business while independent insurance agencies frantically sought required coverages and limits so that their customers could meet their obligations and stay afloat. While not insuring anything seemed like the short-term path out of the chaos for carriers, not to insure was sudden death to agencies and insureds through no fault of their own.

It was into this new breach that I began my career in both commercial casualty and personal lines with a major global insurer then a large independent insurance agency operation, finally coming to PIA. Working for PIA always reminded me of the George Bernard Shaw quote (paraphrased by President John F. Kennedy)… “There are those that look at things the way they are, and ask why? I dream of things that never were, and ask why not?”

More than any other insurance group, it has been PIA agency-owners, and thus PIA National, that have consistently dared to ask and consequentially to act upon the idea of “why not?” In doing so they have kept good solid growing independent insurance agencies in business, the communities they served more stable and the insurers that finally see the light profitable.

PIA-led agency termination laws never prohibited a carrier from terminating an agency. Rather, these requirements imposed a fair and equitable order and timing to the method of termination; demonstrating and underpinning the legally recognized value, ownership and control of the independent agency’s business and worth; gave breathing room to an insurance-marketplace in crisis, and time for carriers to give a second thought to their actions.

Extending the time-period in which termination of insurance contracts from 10-days for property and 15-days for liability to the standards of today gave insureds a rational period-of-time for a more orderly exit from one and re-entry into another market provider that benefited local and regional economies, as well as terminating carriers’ need to contract or expand.

PIA’s 1970 first-ever federal lawsuit against Worcester National Bank quickly rallied insurance agency

PIA CONNECTION | www.pianational.org

organizations and, for a while, insurers into the banksout-of-insurance movement that bought this entire industry time, taught banks lessons about the real loss/ profit for them and gave sounder footing today to both industries.

When carriers threatened again to leave insurance markets wholesale in the late 1980s, PIA agencies created Business Link. This was a well-managed and organized pairing of agencies’ qualified books of business with insurers that were looking to do business…some traditional partners that saw a costeffective way to expand their markets and territory reach, and others that were fresh-faced new-comers.

So, carriers that wanted out-now got their wish.

Business Link allowed me to accept in one day 1800 agency terminations across several states from an insurer (that at the time was a leader in P&C) and have every agency placed with new CL and PL carriers within 1 week. By the by, the agencies did great, their customers made it through the transitions, the new carriers are now leaders in our industry, and the insurer that terminated the agencies is no more.

Here it is in a nutshell. PIA agencies have known their communities, customers, risks, markets and this industry far better and more comprehensively than any carrier or collection of carriers do. By their very position in the marketplace, they see and know that to best serve their customers’ insurance needs, while balancing loss and profitability requirements of carriers, they require a variety of insurers from which to choose; and fully understand and accept the expanded legal obligations, responsibilities and compliance in doing so.

All independent agencies of today and the carriers of this business owe PIA a great debt. YOU are here because PIA agencies of the past dared to ask and act upon, “Why not?” And I for one have been privileged and thankful to have been along for the ride, and a joyous and exciting one it was.

While you’re celebrating these past 90-years, PIA, gear up for the next 90. Imagine what that commitment will really mean to independent agency owners and the insurers with which they work, because they are that important to every one of our communities and this industry.

Patricia A. Borowski is senior vice president emeritus of the Alexandria, Va.-based National Association of Professional Insurance Agents.

2021 V6 | 15

YOUR MEMBER BENEFITS FROM PIA NATIONAL BUSINESS-BUILDING TOOLS ✦ PIA MEMBER REIMBURSEMENT PROGRAM: Receive reimbursements on PIA marketing and PIA Partnership programs (up to $250 per program, for a total of up to $500). www.pianational.org/agentsupport

INSURANCE PRODUCTS

✦ PIA DMV: PIA’S DIRECT MARKETING VAULT. Targeted direct mail and digital advertising campaigns. Turn-key yet highly customizable. www.piadmv.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.pianational.org/ member-benefits/eo-cyber

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

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

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HARTFORD FLOOD INSURANCE. PIA’s endorsed flood provider since 2004. Dedicated local sales directors and book transfer/rollover team plus great commissions for PIA members. Call (860) 547-5006.

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

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✦ 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

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

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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@VIRTUAL. Your guide to evolving your sales and service in a digital world. ✦ READY FOR EVERYTHING. The online crisis resource hub for insurance agents. ✦ WINNING@TALENT. Your guide to hiring, motivating and retaining the best agency employees. ✦ AGENCY JOURNEY MAPPING. Value your agency, maximize your retirement income, and plan for unexpected death/ disability while creating a perpetuation plan for your agency. ✦ CYBER 101. Cyber education for you and your clients. ✦ SMALL BUSINESS INSURANCE & THE INTERNET—THE VOICE OF THE CL CUSTOMER. Stay ahead of online competition in commercial lines. ✦ CLOSING THE GAP—GROWTH & PROFIT. Plan for growth and profitability.

Includes tools for improving retention, sales and account-rounding. ✦ AGENCY TOUCH POINTS—THE VOICE OF THE CUSTOMER. Give personal lines customers what they really want. ✦ REACHING GEN Y. Convert Gen Y age group insurance consumers into loyal agency customers.

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

AGENCY MANAGEMENT TOOLS ✦ PIA BLUEPRINT FOR AGENCY SUCCESS: A 3-part resource guide for business planning, growth strategies, and agency continuity. ✦ 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.pianational.org/advocacy/ contact-your-legislators ✦ 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.pianational.org/ advocacy/pia-advocacy-day ✦ 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.pianational.org/ advocacy/pia-political-action-committee

Learn more about these PIA National member benefits at www.pianational.org.

PIA MEMBER BENEFIT SPOTLIGHT

DISCOVER THE POWER OF BEHAVIORAL INSIGHT WITH THE OMNIA PROFILE FOR OVER 30 YEARS, OMNIA HAS PROVIDED managers and agency owners with well informed assessment data to evolve their workforce. PIA has endorsed The Omnia Profile® to help PIA members find top talent. The Omnia Profile® is an essential tool for agency owners who plan to hire new agency personnel, but can also be used to promote current top performers.

The Omnia Profile provides behavioral and cognitive assessments which can be used to: • Answer the question “Can your producers really sell?”

• Learn if a CSR will fit with your team • Compare job candidates with top staff • Uncover management challenges • Maximize your employees’ potential PIA members can try a complimentary online, instant assessment or a free custom assessment of an agency employee or prospective employee. Additionally, if you buy a package with Omnia Profiles, you will also get one free added to your initial package purchase. Get started today by calling The Omnia Group at 800-525-7117 or email sales@omniagroup.com and be sure to tell them you

are a PIA member to receive your free assessments. Visit: https://www.omniagroup.com/pia-members/ To learn how you can receive $250 back from PIA on your Omnia Profile purchase, please visit the PIA Member Reimbursement Program at: https://www.pianational.org/agentsupport UPCOMING PIA WEBINARS Date:

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PIA & You: An Overview of PIA Member Benefits

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To register for an upcoming webinar, visit: www.pianational.org/events-webinars Questions? Contact ProductsandServices@pianational.org

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2021 V6 | 17

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@pianational.org | Web Site: www.pianational.org

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

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@pianational.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@pianational.org | Web Site: www.pianational.org

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@pianational.org | Web Site: www.pianational.org

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@pianational.org | Web Site: www.pianational.org

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@pianational.org | Web Site: www.pianational.org

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: trina@kansaspia.org | 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

KENTUCKY PIA of Kentucky, 107 Consumer Lane, Frankfort, KY 40601 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

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

LOUISIANA

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

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@pianational.org | Web Site: www.pianational.org

OHIO

WISCONSIN

MAINE

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

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

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

18 | 2021 V6

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

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

www.pianational.org | PIA CONNECTION

THE LAST WORD

HOW THE RIGHT TECHNOLOGY CAN EMPOWER YOUR AGENCY It’s time to reconsider investing in new tools for your business.

By Kevin Callahan

I’M SURE MANY INDEPENDENT AGENCY PRINCIpals will concur when I say my relationship with technology is a bit ... complicated.

I’m a blind person. However, I often say that if you’re going to be blind, being blind in the 21st century is the best possible time to do it. Technology is deeply empowering for someone with the visual challenges that I and millions of others have.

Thus, on a personal level, I’m a huge fan of technology. On the other hand, I’ve been in the financial services industry for 35 years: Over that period I’ve witnessed the arrival of dozens of massive technology-platform projects—some of which have turned out to be successful, and many of which have not.

Having borne witness to this, I bring a healthy dose of skepticism. Not to the value of technology, nor to what it can do to support the kind of experience we all want to bring to our customers, nor to the kind of efficiency we want to bring to our organizations.

My skepticism comes from understanding that successfully implementing new technology is difficult, for several key reasons: It’s hard to identify exactly what technology will be necessary or ideal for the task, who the right partners are to work with, how to train people in using that technology, and how to ensure that it becomes embedded in the culture of the business.

Not one of those steps is easy, and all are equally critical.

They all contribute to the hard truth that broadly speaking, independent agencies and technology are often at odds with each other. Many an agency principal has told me that historically, the tech tools they’ve used were often inadequate for their needs.

However, I believe that we’re now at a point where most independent agencies recognize the importance of technology in achieving their goals around profitability, growth, enhancing their agency’s valuation and delivering an efficient experience to their customers.

What independent agents have always understood is that their true value is exhibited in the relationships they build with their customers: individuals, families, small businesses—their PIA CONNECTION | www.pianational.org

client base. That relationship is all about providing advice, mentoring and being a trusted partner in terms of managing risk. Frankly, agents are busy selling. It’s what they’re great at.

As a result, many agents have pushed the idea of wholly embracing technology to the back burner, believing that managing those customer relationships—critical as those may be—is far more important.

However, they’ve come to realize that approach is no longer adequate. They need to be able to provide the very best capabilities in serving those clients—and in order to deliver the level of efficiency their customers have grown accustomed to in the age of Amazon, employing the right technology is a game-changer.

WHY A TRUSTED TECHNOLOGY PARTNER IS SO VALUABLE Finding the right technology enabler is essential to help chart your course—and those needs for each agency are very specific.

Adopting new technology means adopting new workflows.

Even if a tech solution delivers on its promise of efficiency, your staff still has to not only learn how to use it but also to make it part of their process on a daily basis. That, too, is never easy, because in any organization, people always push back against change—and technology always brings a bit of disruption when new tools are introduced. A capable partner is needed to help ensure these things are achieved smoothly.

It takes an investment of time, money and patience to achieve new efficiencies. But once the proper investment is made and all hands are on deck, the benefits will far outweigh any temporary discomfort during that transitional period.

It’s critical for insurance agency principals to understand that the ability to capture and leverage their own data is the new path forward, and the importance of partnering with the right technology experts who know how to use that intel to unlock new opportunities to grow your business.

Kevin Callahan (Kcallahan@renaissanceins.com) is Chairman and CEO of Renaissance Alliance.

2021 V6 | 19

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