PIA Connection—Risk Rating 2.0 Transforms Federal Flood Insurance Program

Prepare For Any Crisis with Ready for Everything

page 14–15

PIA CONNECTION 2021 V8

RISK RATING 2.0 TRANSFORMS FEDERAL FLOOD INSURANCE PROGRAM page 8

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2021 V8

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS PRESIDENT Anthony Curti, CIC, LIC (MI) tcurti@acrisure.com PRESIDENT-ELECT Gerald F. Hemphill, CIC, LUTCF (VA/DC) ghemphill@gfhinsurance.com VICE PRESIDENT/TREASURER Richard A. Savino, CIC, CPIA richs@broadfieldinsurance.com SECRETARY/ASSISTANT TREASURER Ariel Rivera, CIC (PR) ariel@deerinsurance.com IMMEDIATE PAST PRESIDENT Wayne F. White, CPA, CPIA, PFMM (AR) wwhite1948@aol.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 Robert Holt, CLU, ChFC, CASL | rholt@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 November/December 2021 PIA Connection is published ten times yearly by the National Association of Professional Insurance Agents.

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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.

CONTENTS NEWS BRIEF 6-7 PIA Advocacy Helps Kill Negative Provisions in Reconciliation Bill…

Some Insurers Pull Back on Cyber Cover…Annual Insurtech Investment Tops $10 Billion…Infrastructure Bill Targets Drunk Driving…LGBTQ+ Insurance Network Opens First U.S. Chapter.

COVER STORY RISK RATING 2.0 TRANSFORMS FEDERAL FLOOD INSURANCE PROGRAM 8-9 Flood insurance agents, carriers and policyholders are having to learn the National Flood Insurance Program’s new ratings methodology, Risk Rating 2.0. PIA Counsel and Director of Regulatory Affairs Lauren G. Pachman, Esq. takes an in-depth look at the change, tools to aid agents in the transition, and how the new system is doing so far.

HOW TO ADD MORE BUILDERS RISK TO YOUR BOOK 10-11 The builders risk insurance market is extremely hot in 2021. Mary Stiglic, a marketing manager for US Assure, takes a look at how the builders risk market operates.

FLOOD, CROP AND 2022 PRIORITIES 12 PIA National Vice President of Government Relations Jon Gentile takes a look back at some of the accomplishments and ongoing efforts on behalf of PIA members as part of PIA’s program of legislative and regulatory advocacy.

ARIEL RIVERA INSTALADO COMO OFICIAL DE LA PIA 13 Ariel Rivera, MBA, CIC, CPIA, of San Juan, Puerto Rico, was installed as an officer of the national PIA during the association’s board of directors meeting held Sept. 23, 2021 in Detroit, Michigan. Since 2015, Ariel has served as the National Director of PIA of Puerto Rico & the Caribbean.

PREPARE FOR ANY CRISIS WITH READY FOR EVERYTHING 14-15 When a crisis hits, it’s the planning and preparation that really counts.

Ready For Everything is a crisis information hub brought to you by The PIA Partnership.

AGENCY OWNERS: WHAT’S YOUR FINANCIAL ENDGAME? 16-17 The considerations involved in agency transitions are complex, and decisions can have a big impact on what comes next. Kevin Callahan takes a look at what the process entails, and speaks with a legendary expert on the proper valuation of agencies, Al Diamond.

PIA PREPARES TO LAUNCH A MAJOR CAMPAIGN TO COMBAT CYBERCRIME

19

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

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.

Cover image: Laurel Prucha Moran / Blue Room Design

2021 V8 | 3

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4 | 2021 V8

www.pianational.org | PIA CONNECTION

FROM THE PRESIDENT CHANGE IS OFTEN CITED AS THE ONLY constant in insurance. While largely accurate, it may be a slight overstatement. After all, one of the attributes of our industry is stability – the stability we have, and that which we facilitate for our clients.

Still, change has been accelerating in the industry generally, as well as in the agency business. We’re all familiar with the litany of reasons for this, which include but by no means are limited to the adaptations all of us have made as a result of the pandemic and extreme weather events.

More change is on the way, according to a new report by Bain and Company, Insurance 2030: As Risks Mount, Insurers Aim to Augment Protection with Prevention. While the biggest headline from this report was the predication that global insurance premiums could reach $10 trillion by 2030, research explores the evolving risk landscape for insurers.

The report shows risks declining or flat lining in mature areas, such as personal auto and mortality; expanding in new areas, such as cybercrime and digital assets; and growing more severe in others, including climate change and infectious disease.

The nature and severity of risk is evolving, as are the insurance products that will be needed to protect against these risks.

There’s no question that the insurance industry has the ability to employ technology-based tools to help analyze future risks and their impact to society. New technologies, like artificial intelligence, Internet of Things (IoT) and machine learning will reduce costs and create value. This coupled with huge data sets, analytics and resulting trends will further enhance decision making ability.

Progressive organizations will be in prime position disrupt the value chain and create customized solutions for customers— ultimately enhancing the customer experience.

These changes are propelling the insurance industry to take on a new role, moving us toward more involvement in new forms of risk management to mitigate the new risks. It’s all part of what we do.

Tony Curti President

FROM THE CEO WHEN PIA BEGAN ITS PARTNERSHIP WITH ALM

Media, publisher of the National Underwriter and PC 360, for our annual Independent Insurance Agents Survey, we were confident that we would discover that despite some vexing challenges, we would find that agents are optimistic.

That was a fair bet. After all, a can-do attitude has always been a characteristic of independent agents, along with adaptability and resilience. And that is what we found.

However, our survey also revealed a prevailing perception that could work to the disadvantage of independent agents. When asked “What aspects of the agent-client experience are poorly suited to online service?”, the top two responses stood out: Discussions with clients that go beyond routine process and coverage questions 77.4% Establishment of trust 66.3% Independent agents rely on building relationships of trust with their clients. Traditionally, that occurred primarily through in-person interactions. But in the 2020s, the perception by agency owners that such relationships cannot be built and maintained primarily online is not accurate, and could lead to missed opportunities.

So how do agents develop personal relationships with clients in an online environment?

PIA CONNECTION | www.pianational.org

That’s the question PIA decided to address by creating a new PIA member resource, The Agent Experience [https://www. pianational.org/agentexperience].

The pandemic has brought about changes in how much business is conducted, moving it online. At the same time, growing customer expectations for digital engagement apart from the pandemic has also replaced some physical contact.

This doesn’t mean agents should give up on what’s worked in the past. It’s not all-or-nothing. It’s about meeting your customers where they are and using digital for greater reach, deeper connections and more business. >>>>>>>>>>>>> Thanks to all of you who participated in the 2021-2022 NU/PIA Independent Insurance Agent Survey. The data is now being analyzed and survey results will be reported out in February 2022, in the National Underwriter, PC 360, on the PIA website and here in PIA Connection.

Mike Becker CEO 2021 V8 | 5

!

NEWS BRIEF

PIA ADVOCACY HELPS KILL NEGATIVE PROVISIONS IN RECONCILIATION BILL

as the “Build Back Better

harmful to independent

used methods for per-

Act.” If approved as-is by

agents were ultimately not

forming sales and claims

the Senate, the legislation

included in the bill, thanks

functions.

will allocate roughly $1.75

in large part to PIA’s advo-

trillion in spending over

cacy on these issues. Over

On Nov. 19, the U.S. House

a 10-year period. The bill

the last several months,

passed H.R. 5376, the $1.75

passed largely along party

PIA worked tirelessly to

trillion budget reconcili-

lines by a vote of 220-213.

push back on a series of

ation bill which has been

Many of the provisions

marketed by Democrats

that would have been most

proposals that would have imposed unfair burdens on small businesses. These provisions were all, at one time or another, under consideration for inclusion

iStockphoto

in the budget reconcilia-

number of ransomware attacks during the pandemic.

U.S. authorities say $590 million worth of suspected ransomware payments were made in the first six months of 2021. Many insurers covered large payouts to policyholders, but some carriers are benefiting from an increased demand for cyber insurance coverage.

However, some insurers like AIG and Lloyd’s of London are cutting cyber limits and availability.

Some Lloyd’s of London companies were able to charge higher premium rates to cover ransomware incidents. Lloyd’s, which has around a fifth of the global cyber market, has discouraged its 100-odd syndicate members from taking on cyber business next year, industry sources say on condition of anonymity.

Lloyd’s declined to comment.

6 | 2021 V8

start trying to download an app, sign up, verify yourself via email and all that kind of mess. You want to speak to someone now,” said Eytan Morgenstern, director of media communications for Lightico.

A survey revealed that just 10.5 percent of claims are

them out of the House-

submitted through mobile

passed bill.

apps, with the bulk (44

Now that the House has

percent) coming through

the Senate for consider-

of cyber insurance they offer thanks to an increasing

flooded, you don’t want to

to have successfully kept

reconciliation bill goes to

Insurance companies have begun to lower the amount

totaled or your house

tion bill, and we’re pleased

passed the package, the

SOME INSURERS PULL BACK ON CYBER COVER

“When your car was just

ation, where changes are

phone calls. Slightly less than 30 percent are initiated on a website and 7.5 percent are done face-to-

expected. If the Senate

face. Similar results were

does revise and pass a

seen for sales.

bill, its revised version

it can be signed by Presi-

ANNUAL INSURTECH INVESTMENT TOPS $10 BILLION

dent Biden.

Consolidated global invest-

will need to be considered again in the House before

USE OF INSURANCE MOBILE APPS LAGS

ment into the InsurTech sector continues to reach new highs. Capital invested

While mobile devices have

in insurance technology

become ingrained in our

start-ups surpassed the $10

culture, consumers still

billion mark as of Q3 2021

aren’t robustly leveraging

for the first time in any one

insurance company apps,

year on record, accord-

according to a survey from

ing to the new Quarterly

Lightico, which found

Insurtech Briefing from

mobile is the among least

Willis Towers Watson PLC.

www.pianational.org | PIA CONNECTION

!

NEWS BRIEF

The LGBTQ+ Insurance Network “Link” is expanding its reach to the United States in a first step outside of the UK, forming a chapter in Los Angeles.

Link was established 10 years ago in London, with a mission to make the insurance industry the employer of choice for the

transcends international borders and recognizes the trend towards increased global mobility,” said Link Chair Maurice Rose, Senior Manager, Insurance Risk and Regulation at PricewaterhouseCoopers LLP in iStockphoto

LBGTQ+ INSURANCE NETWORK OPENS FIRST U.S. CHAPTER

London. “This is why we are so excited to support the LGBTQ+ community in the US and will use this as an opportunity to expand further.”

INFRASTRUCTURE BILL TARGETS DRUNK DRIVING A provision of the $1 trillion federal infrastructure bill would set a requirement of as early as 2026 for new

LGBTQ+ community. Link’s

Link has supported the

first chapter in the United

establishment of LGBTQ+

States was announced

Employee Resource

with a kickoff event in Los

Groups in the insurance

Under the legislation, monitoring systems to stop intox-

Angeles on December 1,

sector and has supported

icated drivers would roll out in all new vehicles as early

2021, with more chapters

the industry on its journey

as 2026, after the Transportation Department assesses

planned across the coun-

toward making insurance

the best form of technology to install in millions of

try.

a more attractive sector for

vehicles and automakers are given time to comply. It’s

all talent. Founded in 2012,

one of the mandates along with a burst of new spend-

Link has drawn support

ing aimed at improving auto safety in the package that

from a host of carriers and

President Joe Biden signed.

“Insurance, and the LGBTQ+ community, is global in nature and with the world becoming an even more interconnected place, it’s important that diversity and inclusion

vehicles to include monitoring systems that can detect if a driver is intoxicated.

is a 2019 recipient of the Queen’s Award for Voluntary Service, the highest

teer groups across the UK

work done in their own

award given to local volun-

to recognize outstanding

communities.

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

PIA CONNECTION | www.pianational.org

2021 V8 | 7

PIA LEGAL ANALYSIS

By Lauren G. Pachman, Esq.

RISK RATING 2.0 TRANSFORMS FEDERAL FLOOD INSURANCE PROGRAM THE NATIONAL FLOOD Insurance Program (NFIP), through which many PIA members sell flood insurance, is administered by the Federal Emergency Management Agency (FEMA). As you may know, FEMA is in the process of updating the NFIP’s risk rating process through the implementation of a methodology known as Risk Rating 2.0 (RR 2.0). Over the past several months, flood insurance agents, carriers, and policyholders around the country have been learning about the changes RR 2.0 will require and the effect it will have on existing and prospective policyholders.

FINANCIAL HEALTH OF THE NFIP The NFIP has been financially unstable since 2005, when Hurricane Katrina losses depleted the program’s reserves and then some. For the past 16 years, the program has had to borrow from the Treasury Department repeatedly to pay for severe flood losses and has carried an enormous debt to Treasury.

Thanks to accumulating interest, the debt grows every year, even in years with mild hurricane seasons and few floods. Even with Treasury forgiving $16 billion of its debt in 2017, the NFIP currently carries a $20.5 billion debt.1 The program has no hope of

paying down its remaining debt or achieving or maintaining financial solvency without large-scale changes like those imposed by RR 2.0.

Restructuring the NFIP’s premium rates so that they more closely align with those of the private market will help consumers. But as long as the NFIP is not subject to uniform application of risk-based pricing, the private market will remain at a disadvantage. Increased involvement in flood insurance by the private market will lower prices across the board and provide consumers with a wider selection of more affordable products.

If NFIP premiums remain widely subsidized, the private market will never be able to compete at scale, and more robust competition will result in better incentives for innovation.

LEGACY RATING V. RISK RATING 2.0 Risk Rating 2.0 assigns premium rates to properties using substantially more granular data than the legacy system, so it produces rates that more closely align with a property’s actual level of flood risk. The full implementation of RR 2.0 will move the NFIP toward solvency while also giving policyholders more comprehensive, accurate information about their property’s true flood risk. With better information,

policymakers and regulators hope property owners will be newly encouraged to engage in mitigation efforts.

RR 2.0 produces more precise information about a property’s flood risk by considering several rating factors that are not considered in the legacy rating system. Specifically, the legacy system considers the following variables: · Flood Insurance Rate Map Zone · Base Flood Elevation · Foundation Type · Structural Elevation (Special Flood Hazard Area Only) RR 2.0 will consider these variables instead: · Distance to Flooding Source & Flood Type · Building Occupancy · Construction Type · Foundation Type · Ground Elevation · First Floor Height · Number of Floors · Prior Claims FEMA’S DATA RESOURCES FEMA has mapping data, the Great Lakes Analysis, catastrophe models, a geolocation tool, a first-floor height tool, and a replacement cost value (RCV) tool. It is also using coastal data provided by the National Oceanic and

1 As this article was being prepared, the House of Representatives passed its budget reconciliation bill, H.R. 5376, which would forgive the NFIP’s remaining debt of $20.5 billion. However, the Senate is expected to make changes to the bill, and the debt cancellation provision could be stricken during that process.

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www.pianational.org | PIA CONNECTION

Atmospheric Administration (NOAA), levee data provided by the U.S. Army Corps of Engineers (USACE), and elevation data provided by the U.S. Geological Survey (USGS).

RR 2.0 considers a much larger set of inputs than the legacy rating methodology. Unlike the legacy methodology, it is “geospatially aware,” meaning that it accounts for a property’s relative distance to a variety of flooding sources. It also uses multiple elevation reference points, including elevation relative to flooding sources (like coastal or riverine risks) and elevation relative to surrounding elevations. At the time of publication, FEMA was considering adding additional data on levees.

TIMING AND IMPLEMENTATION Risk Rating 2.0 went into effect for all new policyholders and some existing policyholders beginning with policies starting or renewing on October 1, 2021. Existing policies with renewal dates between October 1 and March 31, 2022* are transitioning to their new rates at their upcoming renewal, if the new rate is more favorable (i.e., lower) to the policyholder than their existing or legacy rate.

The remaining NFIP renewals (those whose rates are staying the same or increasing in the new system and those whose policies are not scheduled to renew until after April 1*) will transition to the new rates at their next renewal, but no sooner than April 1, 2022.* Beginning with policies with renewal dates of April 1, 2022*, all policies, whether new or renewing, are subject to RR 2.0, and the legacy rating system will no longer be available.

The transition from legacy rating to RR 2.0 for policies with effective or renewal dates between Oct. 1,

2021, and March 31, 2022 is further explained in FEMA’s Industry Transition Memo (ITM). The ITM also provides guidance for NFIP agents, insurers, and vendors on how to accomplish the transition.

TOOLS TO AID AGENTS IN TRANSITION If you have been working with the NFIP for a while, you are probably familiar with its Flood Insurance Manual (FIM), which is updated every year and provides step-by-step instructions for selling NFIP policies. FEMA has issued a Risk Rating 2.0 FIM meant to be used for NFIP policies being quoted and issued using RR 2.0. It should be used for rating new business policies with effective dates after Oct. 1, 2021 and for rating renewing policies with effective dates between Oct. 1, 2021 and March 31, 2022* that are transitioning to RR 2.0 at renewal. This version should not be used for rating using the legacy pricing methodology FEMA has also provided an updated version of the existing FIM (originally published on April 1, 2021) to use when working with policies that are being renewed using the legacy rating system. The FIM for legacy-rated policies also includes a special attachment that updates the guidance for policies renewing on or after Oct. 1, 2021. When agents rate renewals using the legacy methodology, they should continue to refer to the April 1, 2021 FIM but must also consult Attachment A of Bulletin W-21013 for guidance on policies with effective dates between Oct. 1, 2021 and March 31, 2022* to make any required language substitutions, additions, and deletions. This FIM should not be used for RR 2.0 rating; all policies issued using RR 2.0

must use the guidance located in the RR 2.0 FIM. Until April 1, 2022,* two FIMs— one for each rating methodology—will be in effect simultaneously. As of April 1, 2022, only the RR 2.0 FIM, like the RR 2.0 methodology, will remain in effect.

EFFECTS OF RR 2.0 SO FAR Risk Rating 2.0 will likely have some effect on a variety of interconnected aspects of the economy, including new home sales, property costs in high-risk areas, take-up and retention rates, distribution of flood insurance policies between the NFIP and the private market, and more. As time goes on, and more data becomes available, trends potentially attributable to RR 2.0 may emerge. For now, though, anecdotal information reveals that agents are sometimes unpleasantly surprised by the quotes generated by RR 2.0 for many properties, both new and renewing. Several issues contribute to this problem.

RR 2.0 considers many more rating variables than the legacy system does.

With the amount of data going into the system, RR 2.0 is revealing that the legacy system grossly underestimated the flood risk associated with many properties.

RR 2.0 is designed to eventually move all NFIP policies to risk-based pricing—pricing that accurately reflects the flood risk associated with the property the policy is protecting.

The legacy methodology priced many policies in a way that was not commensurate with the insured property’s CONTINUED ON PAGE 11

FLOOD PIA CONNECTION | www.pianational.org

2021 V8 | 9

HOW TO ADD MORE BUILDERS RISK TO YOUR BOOK

By Mary Stiglic, US Assure

THE BUILDERS RISK insurance market in 2021 is extremely hot. Construction levels are high, with ongoing new construction and renovations. From an independent agent’s perspective, this means: 1. Agents can enter the builders risk market to gain new customers and increase their business.

2. Agents with an existing builders risk market can expand their client base.

Nationally, Dodge Data reported that residential construction starts were 22% higher for the 12 months ending June 2021 compared with the prior-year period. Single family starts gained 29%, while multifamily starts were up 5% on a 12-month sum basis.

The U.S. Commerce Department, meanwhile, reported in late July “a severe shortage of houses, which has boosted prices and sparked bidding wars across the country…” The department also reports that “demand for houses is being driven by low mortgage rates and a desire for more spacious accommodations during the COVID-19 pandemic.”

ABOUT BUILDERS RISK INSURANCE It’s always best to have a policy that fits the exposure. Builders risk is distinct from homeowners insurance as it covers the materials, fixtures and/ or equipment to be installed during construction or renovation. Policies are typically provided only for the length of the project. A standard builders risk policy should include coverage for perils like theft, fire, vandalism, backup of sewer, and materials in transit and at temporary locations (such 10 | 2021 V8

as storage), to name just a few. When it comes to claims, the most common is fire, followed by theft of materials.

Homeowners insurance likely insures few if any of those risks.

Homeowners may be planning to build a new home or private vacation getaway. After COVID, many are thinking about remodeling to accommodate new ways they want to live and work in their existing house. And, business owners may be modifying their spaces for more outdoor entertainment or finally making time for much needed improvements.

Usually a completion clause calls for coverage to end 60 days after construction ends. That includes coverage of the project while the building owners is waiting to sell.

The most common claim is fire, then theft of materials.

boards, too. Get your name out there.

On the commercial side, the selling process will take longer because of permitting and other pre-construction activities. This could be as long as 6-12 months in commercial construction.

Permitting for a home, by contrast, could be the same day.

For the commercial construction market, many of the centers of influence are the same. Additional networking outlets include the chamber of commerce, attorneys and community leaders. That’s not all! You can find active leads by subscribing to contractor bidding sites like BidClerk and Construction Monitor, where building details like the contactor name are listed. Most of the projects are commercial, and you’re likely to find opportunities in your area to target your outreach.

HOW TO ENTER THE BUILDERS RISK MARKET Whether you want to enter the market for the first time or grow your builders risk book, you must get a foot in the door by networking, starting with the obvious—your current customers!

While the most important contacts for independent agents are builders, construction companies and contractors, it’s also essential to network with builders associations, financing firms, real estate brokers, loan officers and other influencers. For the residential construction market, key influencers are chambers of commerce, attorneys, real estate professionals, homeowners associations and banks.

I’ve known agents who have garnered business by dropping flyers on vehicles in the local Home Depot and Lowe’s. Stores like that have bulletin

ABOUT RESIDENTIAL RENOVATION TRENDS Any look at a TV home renovation program will show that new countertops, new appliances, updated kitchens, and bathroom remodels are in.

With quarantining during 2020-21, homeowners are looking to “feather the nest” or create more living space.

Led by HGTV and other shows, homeowners are favoring the open concept of removing walls between kitchens and family/living rooms or between kitchens and dining areas. In fact, families are spending lots of money doing this.

ABOUT BUILDING PRICES Much has been made about skyrocketing prices for lumber and materials.

One thing to remember as an independent agent is that the price of a www.pianational.org | PIA CONNECTION

iStockphoto

renovation or new constructions can give sticker shock to both commercial and personal lines clients. A $100,000 home project might now be priced at an additional $20,000 to allow for current costs. Agents need to reach out to customers who have builders risk in place (currently and in the future) to see if inflation is affecting total completed value. Secondly, lumber and materials prices aren’t the only

causes of bumped-up costs. Contract change orders—such as for upgraded or additional appliances, fixtures, floors, lighting and other elements of a project—also increase costs.

Insurance agents, beware: Your commercial and personal lines customers may neglect to inform you about their course of construction projects. Check in with them regularly and provide builders risk education

in your marketing communications.

Remember, the opportunity is there.

You simply have to start the conversation.

Mary Stiglic is marketing manager for US Assure (usassure.com), which exclusively distributes, underwrites and services Zurich’s builders risk insurance program across the U.S.

RISK RATING 2.0 TRANSFORMS FEDERAL FLOOD INSURANCE PROGRAM CONTINUED FROM PAGE 9

level of flood risk. This manifested itself in ways that were both good and bad for consumers, depending on where they live and the nature of their property’s risk.

Some consumers were saddled with premiums that were higher than they should have been, while others were artificially propped up by premiums that were lower than they should have been.

In the long term, RR 2.0 will address these injustices by applying risk-based rates to all properties. In the short term, though, agents are expected to explain to their insureds what will happen and why,

which is not easy. Insureds with properties whose premiums were unnaturally low should be prepared for their premiums to increase when they move to RR 2.0.

Those insureds will move to RR 2.0 at their next renewal on or after April 1, 2022.* Insureds with properties whose premiums were unfairly high should be prepared for their premiums to decrease at their next renewal, when they move to RR 2.0.

The new rating system is available now for all new policies and some renewing policies. Specifically, renewing policies are only subject to RR 2.0 rates if it would be

PIA CONNECTION | www.pianational.org

beneficial to the policyholder to move to RR 2.0 now. In other words, two groups are currently being rated into RR 2.0: new policyholders, who will enter the system at their full-risk rates; and renewing policyholders whose rates are decreasing. If an existing policyholder’s rate will increase using RR 2.0, they should not be moved to RR 2.0 until their next renewal on or after April 1, 2022.* Lauren G. Pachman, Esq. is PIA Counsel & Director of Regulatory Affairs

2021 V8 | 11

CAPITOL HILL UPDATE

By Jon Gentile Vice President, Government Relations PIA National

FLOOD, CROP AND 2022 PRIORITIES toward another year, we look back at some of the accomplishments and ongoing efforts on behalf of PIA members as part of PIA’s program of legislative and regulatory advocacy.

PIA’s advocacy is centered on a list of priorities based on our principles.

We support what benefits agents, agencies and their clients. We oppose what would undermine or threaten PIA members’ interests. It’s that simple.

Here are a few updates: PIA continues to participate at a high policy level regarding the National Flood Insurance Program as the NFIP rolls out its new Risk Rating 2.0, which is designed to slowly transition to more risk-based flood insurance rates. PIA strongly supports Risk Rating 2.0 (RR 2.0) because it will help the NFIP move more quickly to the use of actuarially sound rates commensurate with the level of flood risk posed to individual properties.

Lauren Pachman, Esq., PIA National’s Counsel and director of regulatory affairs, our staff liaison to the NFIP and the Flood Insurance Producers National Committee (FIPNC), regularly updates PIA members on flood insurance issues. Her latest update on RR 2.0 is in this issue of PIA Connection.

For the first time in almost a decade, the presidential budget request issued for Fiscal Year 2022 did not include cuts to the Department of Agriculture’s federal crop insurance program, the protection of which is a longstanding PIA top priority.

This marked a change in a pattern in 12 | 2021 V8

iStockphoto

AS WE LOOK AHEAD

which the crop insurance program was repeatedly targeted for cuts by both Democratic and Republican presidents.

In recent years, administrations from both parties have tried to cut funding to the crop insurance program using the budget and appropriations process. Last year, the FY21 budget request recommended an eight percent cut to the U.S. Department of Agriculture, and crop insurance specifically would have been cut by $25 billion over the next decade. In 2015, a budget package included a $3 billion cut to the program, but PIA and its allies successfully pushed for a measure to reverse the cuts. PIA continues to oppose any cuts to the crop insurance program.

Legislation to fully repeal the Federal Insurance Office (FIO)—a top PIA priority—advanced in 2021, being introduced in both the House and the Senate. Another top PIA priority, the SAFE Banking Act, passed the House in September as part of the National Defense Authorization Act (NDAA). It

includes provisions to protect insurance agents and carriers from federal prosecution for doing business with cannabis-related enterprises in states in which such businesses are legal.

Looking ahead to 2022, PIA will also continue to advocate for a longterm reauthorization of the National Flood Insurance Program (NFIP) and build support for the Main Street Tax Certainty Act of 2021, which would make permanent the 20 percent tax deduction presently available to passthrough entities via the tax reform law passed at the end of 2017.

PIA’s list of advocacy priorities is long, comprised of what is important to professional independent insurance agents. PIA will continue to advocate for policies that help agents protect consumers. In addition, PIA will continue our work with Congress on our priority issues, along with legislative responses to the ongoing coronavirus crisis.

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

www.pianational.org | PIA CONNECTION

ARIEL RIVERA INSTALLED AS OFFICER OF PIA ARIEL RIVERA, MBA, CIC, CPIA, of San Juan, Puerto Rico, was installed as an officer of the National Association of Professional Insurance Agents (PIA National) during the association’s board of directors meeting held Sept.

23 in Detroit, Michigan.

Since 2015, Ariel has served as the National Director of Professional Insurance Agents of Puerto Rico & The Caribbean (PIA of PRC) with PIA National. In 2018 he also joined the Board of Directors of the American Insurance Marketing & Sales Society (AIMS Society) where he works actively in insurance continuing education and

is also a faculty member.

“I love insurance, the industry and sharing my knowledge, experiences and expertise with everyone,” Rivera said. “Resilience, the ability to adapt, to turn on a dime when necessary, to embrace technology and master it to empower greater profitability, and to forge relationships with clients – all these and more are attributes that help to maintain independent insurance agents as the unquestioned leaders in insurance distribution.”

Ariel Rivera was sworn in as Secretary/Assistant Treasurer along with his fellow officers comprising the executive committee of PIA National: Tony Curti of Bloomfield Hills, Michigan, President; Gerald F. Hemphill of Richmond, Virginia, President-elect; Richard A. Savino of Warwick, New York, Vice President/ Treasurer; and Wayne F. White of Conway, Arkansas, Immediate Past

President. All the officers will serve one-year terms that begin on October 1, 2021 and run through September 30, 2022. According to tradition, Rivera would be slated to go through the executive committee chairs until October 1, 2024, when he would serve one year as PIA National President.

Rivera has been in the Insurance industry since 2004. In 2005 he started his first independent insurance agency in San Juan, PR. In 2008 he became a faculty member of The National Alliance for Insurance Education & Research. In 2019 he founded Deer Insurance Agency, LLC, in Jacksonville, FL. At the end of 2020 he also founded Fun Insurance Solutions, LLC, a marketing and advisory agency dedicated to help insurance professionals around the country, Puerto Rico, and US Virgin Islands through education, podcasting, workshops and bootcamps.

ARIEL RIVERA INSTALADO COMO OFICIAL DE LA PIA ARIEL RIVERA, MBA, CIC, CPIA, de San Juan, Puerto Rico, fue instalado como oficial de la National Association of Professional Insurance Agents (PIA) durante la reunión de la junta de directores de la asociación celebrada el 23 de septiembre de 2021 en Detroit, Michigan.

Desde el 2015, Ariel ha fungido como Director Nacional de Professional Insurance Agents of Puerto Rico & The Caribbean (PIA of PRC) con PIA National. En el 2018, también se unió a la Junta de Directores de la American Insurance Marketing & Sales Society (AIMS Society), donde trabaja activamente en la educación continua de seguros y también es miembro de su facultad y enseña los seminarios de Certified Professional Insurance Agent (CPIA).

“Yo amo los seguros, la industria y todo lo que representa. Me apasiona compartir mi conocimiento, experiencias y ayudar a todas las personas”, dijo Rivera. “La resiliencia, la capacidad PIA CONNECTION | www.pianational.org

de adaptarnos y de ajustarnos en un instante cuando sea necesario, de adoptar la tecnología y dominarla para crecer nuestros negocios y forjar relaciones con los clientes, todo esto y más, son atributos que ayudan a mantener a los agentes de seguros independientes como los líderes incuestionables en la distribución de seguros ”.

Ariel Rivera juramentó como Secretario/Asistente de Tesorero junto con sus compañeros oficiales que componen el comité ejecutivo de PIA National: Tony Curti de Bloomfield Hills, Michigan, Presidente; Gerald F. Hemphill de Richmond, Virginia, Presidente Electo; Richard A. Savino de Warwick, Nueva York, Vicepresidente/ Tesorero; y Wayne F. White de Conway, Arkansas, Inmediato Pasado Presidente.

Todos los oficiales cumplirán mandatos de un año que comenzarán el 1 de octubre de 2021 y se extenderán hasta el 30 de septiembre de 2022. Según la tradición, Ariel Rivera está programado

para ocupar las distintas posiciones del comité ejecutivo hasta el 1 de octubre de 2024, cuando ocupará por un año el cargo de Presidente de PIA National.

Rivera ha estado en la industria de seguros desde el 2004. En el 2005 fundó su primera agencia de seguros independiente en San Juan, PR. En el 2008 se convirtió en miembro de la facultad del The National Alliance for Insurance Education & Research en donde enseña la designación de Certified Insurance Service Representative (CISR). En el 2019 fundó Deer Insurance Agency, LLC, en Jacksonville, FL. A finales del 2020 también fundó Fun Insurance Solutions, LLC, una agencia de Marketing & Advisory dedicada a ayudar a los profesionales de seguros en todo Estados Unidos de América, Puerto Rico y las Islas Vírgenes de EE.UU a través de educación, podcasting, talleres y bootcamps.

2021 V8 | 13

PREPARE FOR ANY CRISIS WITH READY FOR EVERYTHING CAN A CRISIS MAKE YOUR agency stronger?

The answer is yes according to many who — during the Coronavirus — have found opportunities to connect with customers in new ways, stress test work-at-home capabilities, and build greater teamwork.

Insurance agencies are well-versed in all types of crises, regularly steering clients through the claims process after floods, fires, and storms to name a few. This pandemic is different in many ways, and similar in some. Good planning, flexibility, and work-from-anywhere technology are key to surviving— and thriving—during any crisis.

WHAT IS READY FOR EVERYTHING? When a crisis hits, it’s the planning and preparation that really counts. Ready For Everything is a crisis information hub brought to you by The PIA Partnership. The Ready For Everything toolkit gives agents resources on planning, remote working, and employee and customer communications. We’ve curated and organized a host of industry articles, videos, and podcasts, and provided key takeaways in an effort to make it as easy as possible for insurance agencies to be more prepared — when the next crisis hits.

- PIA National Immediate Past President

CRISIS PLANNING Creating a plan in advance can help lessen the impact and speed up the path to recovery. Ready For Everything provides best practices for creating a plan, avenues for financial assistance, and technologies that can help.

According to PropertyCasualty360, agencies should begin creating crisis plans now to accelerate recovery and growth. In order to have a successful plan, leadership should start with an immediate response to employees and customers to set expectations moving forward. When the crisis has prolonged

14 | 2021 V8

for over 30 to 60 days, it’s important for agencies to have a temporary plan. This could include COVID-19 resources and or reaching out to clients. For long-term planning, agencies should look ahead to prepare new marketing strategies to build company revenue.

REMOTE SET-UP AND MANAGEMENT Does your agency have policies in place to take on a successful remote work environment? According to FlexJobs, remote work has grown by 159% over the last twelve years. Due to the current global crisis, remote work has become the new normal for many companies. Ready for Everything provides multiple resources to prepare insurance agents should their employees be displaced from the office over an extended period of time.

During a crisis, it is crucial to have a successful work from home environment to insure the smooth operation of business. Ready For Everything provides details on tools available to help teams collaborate, tips on how to manage employees remotely, and guidance on how to protect information when out of the office.

COVID-19 /RETURN TO WORK According to GDI Insurance, many employers are looking to the future of employees returning to work. The COVID-19 pandemic has continued to interrupt businesses across the country, so it is recommended that HR departments start to create a plan.

First, employers should work to set an anticipated return to work date. If disinfecting and cleaning measures are not in place along with social distancing protocols, a plan should be created to protect employees. Lastly, employee screening procedures are imperative along with employee safety training to provide protection to all staff members.

www.pianational.org | PIA CONNECTION

Prepare for crisis – all in one place.

When a crisis hits, it’s the planning and preparation that really counts.

Our Ready For Everything crisis information hub – brought to you by the PIA Partnership – gives you resources on planning, remote working, and employee and customer communications.

EMPLOYEE AND CUSTOMER COMMUNICATIONS When disaster strikes, it can create uncertainty amongst insurance clients. Many customers have questions concerning policies and employees want to know how their jobs will be impacted. Ready for Everything provides multiple resources to help insurance agents prepare for future disasters.

During a crisis, it is imperative to have an effective communication strategy to insure the smooth operation of business. This hub brings credible information together for crisis planning such as ideas for maintaining constant communication, types of information to share, and technologies to ensure information gets out quickly LEARN MORE To get started with Ready For Everything, PIA members should visit, www.getreadyforeverything.com.

THANK YOU The PIA Partnership is a joint effort of leading insurance carriers and PIA. PIA and the companies belonging to The PIA Partnership work together to develop hands-on tools for PIA members and agents appointed by Partnership carriers, specifically addressing areas of opportunity in the agencycompany partnership.

The PIA Partnership was established in 1996. PIA would like to thank the PIA Partnership companies that helped to develop Ready For Everything: Encompass Insurance, Erie Insurance, Liberty Mutual, Met Life Auto & Home, National General Insurance, Progressive Insurance, Selective Insurance Group, State Auto Insurance Companies, The Hanover Insurance Group, Travelers, and West Bend Mutual Insurance Company. Learn more about The PIA Partnership at www.ThePIAPartnership.com.

PIA CONNECTION | www.pianational.org

We’ve curated a host of industry articles, videos and podcasts so that your agency can be more prepared – when the next crisis hits.

READY FOR EVERY THING

Brought to you by The PIA Partnership – PIA’s national carrier council. Partnership companies include:

Visit our crisis information hub today at getreadyforeverything.com

2021 V8 | 15

$

AGENCY MARKETING

By Kevin Callahan

AGENCY OWNERS:

WHAT’S YOUR FINANCIAL ENDGAME? While you may not wish to retire soon, there are several important decisions to make for the benefit of your agency – as well as your family’s welfare.

(Part 1 of 2) IF YOU’RE LIKE ME, YOU truly enjoy your work. Creating, building, and remaining inspired are constant goals to aspire to, and for many of us, staying active professionally is the key.

It’s also a good way to continually make good on your earnings potential.

When I sat down to write this column, my intent was to shine some light on a topic that’s all too often overlooked by longtime insurance agency owners: As the principal, how much money would I need to retire and maintain the lifestyle to which I’ve become accustomed?

It’s easy to understand why agency principals are not often focused on their career endgame. For a good number of them, being an insurance agent is something they are, not just something they do. That is their identity.

All too often, however, what happens to some of those principals is they don’t develop a solid succession plan, they don’t execute on a value

16 | 2021 V8

assessment of their agency, their family gets left holding the bag when their health suddenly fails, and the agency’s value begins to erode. You don’t want your agency’s financial destiny left to those who aren’t intimately familiar with its books.

Rather, you want to ensure that when it comes time for you to step down, you’ve got the means to continue living comfortably once you’re no longer collecting the annual income of a full-time principal. To do that, you need two things: constant, solid growth for your agency, and a long-term plan (20 years is advised) to determine who will eventually succeed you. Ensuring the legacy of your agency might involve having your children buy you out, in which case it’s even more critical that you grow your agency and its value to help protect their financial future as well.

Unfortunately, there’s no hard-andfast rule to follow for retirement savings, such as having twice your annual revenues in the bank. It’s far more complicated than that.

The amount of money you need to retire on at your current level of income depends on your lifestyle.

If you’re 70 years old and you’re expected to live at least another 14 to 17 years (or more) and you’re spending $150,000 a year to support yourself, you need at least $2.1 million. So where are you going to get it? That’s either going to come from selling your agency or you’d better have sufficient

assets to sponsor $2.1 million over the next 14 years at a minimum, whether or not you care if you have any assets left over.

Putting Social Security and other personal investments and savings aside (especially since the latter is a wild card among agency owners, who often choose to continually invest in their business), that puts the focus on the dollar value of your agency.

The best way to enhance the value of your agency, and therefore secure your retirement, is to plan well ahead and to focus on the things that drive greater value: growth and enhanced profitability/margin.

THE MOST CRITICAL QUESTION The most important question to ask when considering your financial endgame is: how long do you want to be running your agency full time?

Al Diamond, a 50-plus year veteran of the insurance industry, is president of Agency Consulting Group Inc. in Cherry Hill, N.J. He’s an expert on the proper valuation of their agencies and consults principals on, among other things, whether it’s the right time for the principal to exit – and if so, how to determine the best financial and strategic course of action.

He’s also refreshingly direct when asked about the “best” time to retire.

“Retirement is vastly overrated,” he told me. “The time to retire is when you either lose your heart for the game, or when your health gives out

www.pianational.org | PIA CONNECTION

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

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L E PAR ER

PIA CONNECTION | www.pianational.org

expenses. The more profitable your agency, the more it’s worth to your successor. Remember, any buyer is going to buy you out with the cash flow that generates from your agency over an acceptable period of time.

Next month in Part 2 of this column, we’ll explore other key factors that determine much you can get for your agency – and the options available to you in ensuring your financial well-being in retirement.

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HOW MUCH IS MY AGENCY WORTH? The value of a business is two things: how much cash you have in the bank (and any other “liquid” assets), and how much you can sell your revenue stream (your renewal cash flow) for – and in his decades of advising principals on their agencies’ worth, Diamond has witnessed a distressing trend.

“During the valuation process, the owner will ask, ‘How much is my agency worth?’ And after examining their books, we’ll break the news to

them: ‘Your agency’s value has gone down by 50%.’”

“And they say, ‘How can that be?

Our revenue has gone up.’ And I explain to them, ‘You’re spending all your money. You’ve taken more money out every single year, even much more than your revenue increase. Your profit has diminished to almost zero.’”

In that situation, he adds, “you can’t sell your agency for very much, if the successor expects to run the agency like you did because you don’t make any money.” If you expect the agency to be taken apart by a new owner, then it can still sustain a value based on the cash flow that the buyer could sustain from the revenue he buys from you.

If you do wish to sell, Diamond says the first step to correcting your balance sheet is to clean up your accounts receivable: stop borrowing money from your agency and pay off any money you’ve taken out. If it’s paid back, then it becomes an asset. If you have borrowed money on your books, even though it appears to be an asset, any savvy buyer knows that it’s just a hidden liability.

Next, have a hard look at your

P I NN

– when your business goes from being a career to a life sentence.”

Alternatively, if you continue working, you can keep maximizing your earnings potential for as long as you can while continuously building your agency’s value. Once you’re at least two years away from a transfer of ownership, the process of setting up your agency’s balance sheet for a possible sale isn’t overly complicated – but it involves a level of accountability and transparency that you may not be accustomed to as the agency’s owner.

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2021 V8 | 17

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www.pianational.org | PIA CONNECTION

PIA PREPARES TO LAUNCH MAJOR CAMPAIGN TO COMBAT CYBERCRIME PIA IS PREPARING TO launch a major initiative to empower agents to deal effectively with cybercrime.

“Cybercrime is growing in frequency and severity and represents a dangerous challenge for both agents and their clients,” says Mike Becker, CEO. “That’s why we are planning a multi-phase effort, not just to educate but also to facilitate courses of action to fit each agency’s needs.”

The campaign will kick off with a one-a-kind assessment of an agency’s cyber weaknesses, developed by Thomas H. Wetzel &

PIA CONNECTION | www.pianational.org

Associates twetzel@wetzelandassoc.com, long-time agent marketing and cybersecurity specialist. The lowcost assessment is designed specifically for independent insurance agencies and includes detailed analyses of both agencies and their vendors and step-by-step recommendations. Special pricing is available for PIA members.

In addition, an expanded cybersecurity section on the PIA National website will contain detailed explanations of cyber risks, cases, and quizzes. Other features in the coming months will include podcasts and CE-approved

cybersecurity courses.

“Insurers and regulators are requiring agencies to do more to mitigate cybersecurity risks on top of everything else, and this initiative has been developed to give our members compliant, practical information and tools,” says Becker.

The PIA announcement follows word from the U.S. State Department that it intends to create a bureau of cyberspace and digital policy dedicated to tackling the issues of ransomware attacks and a global decline in digital freedom.

2021 V8 | 19

YOUR PIA MEMBER BENEFITS BUSINESS-BUILDING TOOLS

AGENCY MANAGEMENT TOOLS

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✦ 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 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.

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✦ PIA BLUEPRINT FOR AGENCY SUCCESS: A 3-part resource guide for business planning, growth strategies, and agency continuity.

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/eando

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

✦ AGENCY PREPAREDNESS AND RECOVERY PLAN. The PIA guide to creating an agency-specific business contingency plan.

✦ INDIVIDUAL AND GROUP INSURANCE PRODUCTS. Basic, voluntary and dependent term life; long/short term disability; and AD&D. www.piatrust.com

✦ EMPLOYEE PROFILING. Hire the right people with skills and personality testing from OMNIA.

TOOLS FROM THE PIA PARTNERSHIP, PIA’S COMPANY COUNCIL

✦ HIRE WITH IDEALTRAITS. The comprehensive, go-to hiring tool for agencies looking to hire top performers. www.idealtraits.com/pia

✦ WINNING@VIRTUAL. Your guide to evolving your sales and service in a digital world.

✦ Discounts on producer licensing, car rentals, shipping with UPS and calendars from Mines Press.

✦ READY FOR EVERYTHING. The online crisis resource hub for insurance agents.

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

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

✦ 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.

✦ AGENCY AGREEMENT REVIEW SERVICE. Free to members and carriers, PIA recommends changes to carriers and highlights concerns for members.

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

✦ 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!

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

✦ 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.

✦ Free subscriptions to industry publications.

✦ WINNING@TALENT. Your guide to hiring, motivating and retaining the best agency employees.

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✦ 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.

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✦ PIA DMV: PIA’S DIRECT MARKETING VAULT. Targeted direct mail and digital advertising campaigns. Turn-key yet highly customizable. www.piadmv.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.

LEGISLATIVE & REGULATORY OUTREACH

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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 member benefits at www.pianational.org.

PIA MEMBER BENEFIT SPOTLIGHT

RESOURCES FOR EVERY STAGE OF YOUR AGENCY JOURNEY The PIA Blueprint for Agency Success provides exercises, checklists, and resources that can help you set your agency up for success whether you are a new independent agency or you have owned your agency for many years.

Sections of the Blueprint include: Business Planning Guide to address insurance agency start-up considerations from formation of the business entity to insurance licensing to budgeting and finance to branding · Section 1: Formation Fundamentals · Section 2: Financial Management Fundamentals · Section 3: Securing Insurance Markets · Section 4: Marketing Basics

Growth Strategy Guide to outline agency automation, producer development and operational policies, procedures, and workflows · Section 1: Agency Systems Selection and Implementation · Section 2: Agency Policy, Procedure, and Workflow Fundamentals · Section 3: HR · Section 4: Building Your Book of Business Agency Continuity Guide with templates for business continuity planning, disaster planning, and leadership training · Section 1: Agency Continuity · Section 2: Leadership By following the advice outlined within the PIA Blueprint for Agency Success, you and your team can systematically launch, grow, and sustain your independent insurance agency. Visit: www.piablueprintforsuccess.com

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2021 V8 | 21

PIA AFFILIATES ALABAMA

MARYLAND

OREGON/IDAHO

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

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

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

MASSACHUSETTS

PENNSYLVANIA

PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@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

HAWAII 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

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

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

NEW HAMPSHIRE

UTAH

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

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

NEW JERSEY

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

NEW YORK

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

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

MAINE 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

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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

INDIANA

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

TENNESSEE

PIA of Nebraska/Iowa, 11932 Arbor Street, Ste. 100, Omaha NE 68144 PHONE: (402) 392-1611 | FAX: (402) 392-2228 e-mail: cathy@pianeia.com | Web Site: www.pianeia.com

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

KANSAS

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

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

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

VIRGINIA/DC

NORTH CAROLINA

PIA Assn of Virginia & DC 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

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

WASHINGTON/ALASKA

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

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

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

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

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

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

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

www.pianational.org | PIA CONNECTION

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