Main Street Industry News - August 2025 by Cathy Klasi

PIA National’s Summer School: The Summer Agency Leadership Series » 7 Auto Insurance: Consumers Not that Loyal These Days » 17

Engaged Workers: On the Decline » 28

We speak human, not ﬁne print.

We believe insurance should sound like a conversation, not a contract. So, we skip the jargon and meet you where you are—with tools, insights, and people who know your customers’ industries inside and out, from manufacturers and contractors to breweries and wineries.

That’s how partnerships work. And that’s how we work. Because at EMC, we’re all about Keeping insurance human®

Let’s get to know each other at emcinsurance.com

Did you know that PIA’s company council, The PIA Partnership, has conducted nationwide research about the insurance buying preferences of small business owners?

The research is encouraging because it found that small business owners strongly prefer independent insurance agents as they make choices in today’s online world.

However, the results also serve as a wake-up call that agents must take steps to continue to demonstrate their value and also be more engaged online.

PIA and the companies belonging to The PIA Partnership have created a public website that helps agents understand PIA’s findings.

PIA members also have access to a private website containing a series of strategies and tools to help them stay ahead of online competition in commercial lines.

To access the newest PIA Partnership project, Small Business Insurance & The Internet — The Voice of the Commercial Lines Customer.

If you are not a PIA member and want to access all of the tools available through this program, contact us for a membership application or visit us online at www.pianational.org/header-utility-items/join/Join-PIA

N. Washington St., Alexandria, VA 22314-2353 www.pianet.com | membership@pianet.org | (703) 836-9340

PIA National’s Summer School: The Summer Agency Leadership Series | 7

PIA National has announced its Summer Agency Leadership Series. It is a dynamic three-part program designed to inspire and empower insurance professionals.

Business & Insured Losses: Big Worries | 9

A new study from Gallagher points out that business owners have a growing bunch of worries in 2025. Concerns range from tariffs to supply chain disruption to AI to natural disasters.

U.S. House Looks at Auto Insurance Rate

Discrimination: PIA Reacts | 10

Michigan Rep. Rashida Tlaib has introduced a bill in the U.S. House of Representatives to change how auto insurance companies set premium rates.

Electric Vehicles:

Americans Not Sold on Them | 12

AAA just completed a survey on electric vehicles. While they’re becoming more popular, not that many people plan on getting one anytime soon.

Commercial Prices Up But the Trend is Downward | 14

Willis Towers Watson’s Commercial Lines Insurance Pricing Survey (CLIPS) found insurance rates rising again in the first quarter of 2025. However, the upward trend goes downward from the increases seen in 2024.

Auto Insurance:

Consumers Not that Loyal These Days | 15

The 2025 US Auto Insurance Trends Report from LexisNexis Risk Solutions is showing something most of us already know. Policy shopping and changing providers is at record levels.

Risks to Homes:

Homeowners Know but Do Nothing | 26

Reports from all kinds of sources are talking about this being a season of drought for states all over the country.

Homeowners Insurance Rates: A Frightening Statistic | 27

Lending Tree does an annual look at home insurance rates. The 2025 State of Home Owners Insurance Report said from 2019 to 2021 homeowners rates were fairly stable.

Happy, Engaged Workers: On the Decline | 28

Gallup did a report earlier this month about employee engagement. State of the Global Workplace: Understanding Employees, Informing Leaders found employee engagement falling 24% in 2024.

PIA NE IA EVENTS

PIA Summer Leadership Series | 17

Upcoming Events Calendar 2025 | 20 2025 Rural Town & Agents Seminar | 24

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PIA FOR NEBRASKA AND IOWA

PIA Association for Nebraska and Iowa is committed to focusing its resources in ways that cast the most favorable light on its constituents. We are dedicated to providing the type of programs, the level of advocacy, and the dissemination of information that best supports the perpetuation and prosperity of our members. We pledge to always conduct ourselves in a manner that enhances the public image of PIA and adds real value to our members.

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The PIA NE IA, Main Street Industry News reserves the right to edit your comments to fit space available. We respectfully ask that you keep the comments to 200-300 words. Cathy Klasi, Executive Director (402) 392-1611

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PIA NATIONAL’S SUMMER SCHOOL THE SUMMER AGENCY LEADERSHIP SERIES

PIA National has announced its Summer Agency Leadership Series. It is a dynamic three-part program designed to inspire and empower insurance professionals. The series is open to both members and non-members. Members are free and there is a fee for nonmembers to take the classes.

They will be held virtually in July, August and September and you can attend just one, two or all three. Each session is recorded and you will be given a recording after each session.

The three sessions unite agency owners, industry leaders, young professionals, and tech experts to address key challenges facing independent agencies. PIA National COO Dana Anaman said they’ll focus on innovation, growth, and leadership.

"Whether you're just starting out or a seasoned pro, these sessions offer actionable strategies and fresh perspectives to help you thrive in today’s market,” Anaman said. “Our goal is to ensure every attendee walks away with practical tools and relevant insights to drive results.”

SYNOPSIS OF THE THREE SESSIONS:

Inspiring the Next Generation of Agency Leaders — July 16, 2:00–3:00 PM ET

A panel of rising insurance agents will explore what drives them — from workplace culture and flexibility to the importance of mentorship and technology. Participants will share personal stories, challenges, and strategies for making a meaningful impact in their careers and within the industry.

Winning@Work: Creating Agencies Where Employees Want to Work — August 7, 2:00–3:00 PM ET

Agency owners will share how they’re building environments that support the development of next-generation talent. This panel will dive into best practices in fostering agency culture, employee growth, and the role of technology and mentorship. Attendees will also receive a complimentary copy of PIA’s Winning@Work Report, featuring insights from young agents nationwide.

Using AI for Effective Agency Communications Workshop — September 10, 2:00–3:30 PM ET This hands-on session will explore how AI tools like ChatGPT and Copilot are transforming

communications in the insurance industry. From sales and social media to client interactions and data security, attendees will learn how to use AI effectively and responsibly, with practical exercises and best practices from leading agencies.

"Whether you're just starting out or a seasoned pro, these sessions offer actionable strategies and fresh perspectives to help you thrive in today’s market,” said Dana Anaman, PIA COO. “Our goal is to ensure every attendee walks away with practical tools and relevant insights to drive results.”

To register or learn more, visit https://www. pianational.org/events-webinars/pia-summerleadership-series

www.guard.com Our original specialty, Workers’ Comp has long served as the anchor line for our growing suite of commercial products. We distinguish our coverage by providing a host of value-added services before, during, and after a claim.

BUSINESS & INSURED LOSSES: BIG WORRIES

A new study from Gallagher points out that business owners have a growing bunch of worries in 2025. Concerns range from tariffs to supply chain disruption to AI to natural disasters.

The biggest worry? Whether insurance will cover everything—90% aren’t confident it will fully cover a specific loss or event.

• 87% of the responding businesses filed a claim in 2024

• 73% said the claim was for $25,000 or more

More specifics on the concerns:

• 93% are concerned about supply chain disruptions in the next 12 months

• 73% say they’ve had supply chain issues in the past

• 75% have contingency suppliers ready just in case

• 90% are closely watching the tariff impact on business

• 89% worry about product recalls

• 85% have been hit and impacted by a recall in the past

• 91% keep an eye on natural disasters and worry about the impact of one on them

• 71% have filed a flood insurance claim in the past

The survey found businesses are more proactive than ever in protecting their properties.

• 40% have done flood-proofing

• 39% worked on fire-proofing

• 37% did wind-proofing

• 32% put emphasis on hurricane-proofing

• 31% focused on hair

A huge point is how 57% of those surveyed have considered moving their business to a “safer” location or investing in building a more resilient facility.

Other concerns:

• 72% are extremely or very concerned about cyber attacks

• 36% say they’re willing to purchase cyber insurance or expand what they have

• 93% worry about the negative effects of artificial intelligence

• 95% say AI misuse needs stronger regulation

• 90% say businesses need regulations to give them better protection from AI

Source: PropertyCasualty360.com

PIA Reacts U.S. HOUSE LOOKS AT AUTO INSURANCE RATE DISCRIMINATION

Michigan Rep. Rashida Tlaib has introduced a bill in the U.S. House of Representatives to change how auto insurance companies set premium rates. If passed, and made law, the Prohibit Auto Insurance Discrimination Act (PAID) has a long list of things that insurers won’t be able to use to determine rates.

• Education

• Occupation

• Employment status

• Homeownership status

• Credit score, consumer report

• Gender

• Zip code or adjacent zip codes

• Census tract

• Marital status

• Previous insurer

• Prior purchase of insurance

“If this bill passes, it appears Representative Tlaib’s bill won’t let insurance companies use anything to determine rates,” PIA Western Alliance Executive Vice President Kim Legato told Weekly Industry News. “We don’t believe

she will prevail and doubt this bill will go very far in the House because of 1945’s McCarranFerguson Act that gave the power to regulate insurance to the states.”

Tlaib said her constituents pay some of the highest auto premiums in the country.

“Your education level, zip code, credit score, home ownership status, job, and marital status do not determine your driving ability,” Tlaib said. “Yet auto insurance companies use these predatory and discriminatory practices when determining rates. Auto insurance discrimination continues to keep our residents in the cycle of poverty.”

Her co-sponsors are New Jersey Rep. Bonnie Watson Coleman and California’s Mark Takano.

PIA National CEO Mike Skiados said the bill clearly violates the 1945 McCarran-Ferguson Act that gave insurance regulation to the states.

“The National Association of Professional Insurance Agents (PIA) strongly supports the longstanding and successful state regulation of insurance which has benefited consumers and industry alike for over a century,” Skiados told Weekly Industry news. “The Prohibit Auto Insurance Discrimination (PAID) Act violates the authority given to states by the McCarranFerguson Act of 1945 to regulate most insurance issues. States have laws in place to prevent discrimination in insurance pricing, and the federal government is not the appropriate place to address an issue that has been most effectively handled at the state level.”

Legato said the items used by insurers to set rates that Tlaib wants to ban are not predatory, nor are they discriminatory.

“One of the things Representative Tlaib and her co-sponsors want to eliminate is credit scoring. We are very familiar with this issue. PIA Western Alliance lobbyists and members have successfully fought the credit score battle for years,” Legato said. “The focus has mostly been in Washington and Oregon. Washington’s last insurance commissioner, Mike Kreidler unilaterally did away with credit scoring and a lawsuit filed by the PIA stopped his illegal push. The state’s new insurance commissioner, Patty Kurderer is now arguing for a ban on credit

scoring and got permission from the Legislature to do another study on the matter. What she — and others — ignores is study after study making it clear that credit scoring is a positive for consumers and actually keeps insurance rates down.”

The PIA lobbyists, with help from members, have been able to successfully stopped bills banning credit scoring for the last decade.

Source: Insurance Business America

ELECTRIC VEHICLES

Americans Not Sold on Them

AAA just completed a survey on electric vehicles. While they’re becoming more popular, not that many people plan on getting one anytime soon.

Stats:

• 16% say they are likely or very likely to buy an EV for their next vehicle

• 51% say they’re unlikely or very unlikely to make their next purchase an EV

• That’s down from 63% in 2022

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Important reasons why:

• 62% noted the high cost of battery repair

• 59% worry about the battery purchase price

• 57% say they aren’t suited to longdistance trips

• 56% say there aren’t enough convenient public charging stations

• 55% worry about losing their charge will driving

• 31% have safety concerns

• 27% say installing a charging station at their residence is a challenge

• 12% say the enticing tax credits and rebates are gone

All of those reasons are counter to the push by manufacturers that gas savings could be had, they have lower maintenance costs and are good for the environment. While those statements are mostly true, the percentage of people thinking most cars will be electric in the next 10 years fell from 40% in 2022 to 23% this year.

Source: Claims Journal

COMMERCIAL PRICES UP BUT THE TREND IS DOWNWARD

Commercial lines saw an aggregate jump of 5.3% in the first quarter. WTW’s Yi Jing — the senior director of insurance consulting and technology — said that’s down from 5.6% in the first quarter of 2024 and way down from the 6.1% seen in the fourth and third quarters of 2024.

“Overall, the continued reduction in rate increases is a very positive sign for buyers,” Jing said and pointed to “consistent doubledigit rate jumps for areas like commercial auto

signify continued pricing difficult in the market. The only other coverage area maintaining double-digit rate increases is excess/umbrella liability.”

In the last quarter of last year, excess and umbrella liability had the highest increases and had them for the last three years. Commercial auto had the highest price increase in the history of CLIPS surveys.

Things are way different in the first quarter of 2025 as commercial auto had the biggest drop of all the lines surveyed. Commercial property also fell significantly.

Source: Insurance Journal

AUTO INSURANCE

Consumers Not that Loyal These Days

The 2025 US Auto Insurance Trends Report from LexisNexis Risk Solutions is showing something most of us already know. Policy shopping and changing providers is at record levels.

It’s been growing for several years but in the past year those changes are been pushed forward by consumers more focused on their premium costs, the aggressive marketing

by insurers and the convenience of digital shopping and purchasing.

Some conclusions of the survey:

• There was record volume of shopping and switching insurers in 2024

• Consumers are very actively looking for better rates

• It’s very easy to shop online these days

• Shopping online eliminates the traditional hassle of changing insurers

• To counter, insurers are offering loyalty discounts, putting together better bundling offers and pumping up customer service

“Insurers must embrace advanced analytics and customer-centric innovation to navigate this dynamic market,” the report suggests. “Personalized pricing models, real-time quote adjustments, and digital engagement will be critical differentiators in retaining and acquiring customers.”

Generation Z — people age 18 to 26 — are doing the most shopping and switching. The most loyal consumers are baby boomers. Here’s the generational breakdown:

Gen Z — age 18 to 26:

• They are the most active shoppers

• They do the most switching

• Over 80% of Gen Z used mobile or online platforms to compare quotes

• They are very sensitive to even the smallest premium changes

• Many will change insurers after just one price increase

• They are the least loyal of all the age groups

Millennials — age 27 to 42:

• They are a close 2nd to Gen Z in policy switches

• Life changes like families, new homes, jobs etc. push the switching

• They are super tech savvy and use digital tools to research and purchase

• However, they also love good customer service — online or in person

• The more an insurer can — or will — bundle, they more like the insurer

Gen X — age 43 to 58:

• More stable insureds and more loyal

• However, 2024 saw a big increase in those shopping and switching

• They will stay with an insurer if the value of staying offsets prices

• They love bundling discounts and this is a good strategy to retain them

Baby Boomers — age 59 to 77:

• They are the least likely to switch and remain very loyal to their insurer

• They are most likely to go through agents or call centers rather than online

• They’ll tolerate premium increases longer than the other groups

• However, a large increase will send them shopping

Other parts of the survey...

High-risk drivers:

• They frequently switch carriers especially after filing a claim or getting a violation

• They rely deeply on aggregation to find affordable insurance options

Families and multi-car households:

• They love bundling and multi-policy discounts

• Shopping is usually pushed by life changes like teenage drivers or buying a new vehicle

Urban vs. rural:

• Urban consumers shop more often and change insurers more often

• They are also exposed to more aggressive digital advertising

• Rural consumers have lower switching rates

• They love working with agents instead of online

• They often have fewer insurance options

Source: Insurance Business America

PIA National is proud to present the PIA Summer Leadership Series — a three-part virtual program designed to inspire, educate, and empower insurance professionals at every stage of their career. Spanning July through September, this series brings together agency owners, leaders, and tech experts to share strategies for growth, innovation, and leadership.

August 7: Winning@Work: Creating Agencies Where Employees Want to Work

September 10: Using AI for Effective Agency Communications

REGISTRATION LINK: CLICK HERE

Events Calendar 2025

August 28, 2025 Eroding: The Personal Lines Implosion and What Happens Next

August 28, 2025 An Hour with Nicole: Personal Lines: Read the %^&* Form!

September 9, 2025 CISR: Agency Operations

September 9, 2025 An Hour with Patrick: Reinsurance: How It Works & Why It Matters

September 10, 2025 Homeowners Endorsements Insureds Don't Want (But Do Need)

September 10, 2025 An Hour with Nicole: Making Sense of Homeowners Deductibles (Once and For All!)

September 11, 2025 An Hour with Cathy: Understanding (Finally!) How Claims Made Policies Work

September 13-16, 2025 PIA National Fall Leadership Meetings - Starts Sunday

September 17, 2025 PIA National Advocacy Day on The Hill - WednesdayDepart Thursday

September 16, 2025 Reasons Personal Lines are Broken (and What to Do About It)

September 17, 2025 An Hour with Dave: What Everyone Must Know About Flood

September 18, 2025 Name That Endorsement: Business Auto and Commercial Property Edition

September 18, 2025 Ethics in Insurance - Protecting the Client and the Agency

September 25, 2025 Bad Machines, Evil People: The Latest in Cyber

September 30, 2025 Liar!: An Agent's Role in Identifying & Handling Fraud

Webinar: 8 - 11 AM

September 30, 2025 Scholarship Golf Outing Quarry Oaks

September 30, 2025 An Hour with Sam: Physical Damage Coverage Concerns in the Personal Auto Policy

October 7, 2025 Imminent Danger: Spotting Site Risks & Saving Construction Insureds

October 7, 2025 CISR: Life & Health Essentials

October 9, 2025 Ethics, Diligence, Success: What Agencies Need to Know NE/IA

October 9, 2025 CPIA 2: Implement for Success

October 14, 2025 Certificates, Contractors, and You: Fights, Coverage Issues, Best Practices

October 14, 2025 Commercial Property: Claims, Coverages, Consequences NE/IA

October 16, 2025 Eroding: The Personal Lines Implosion and What Happens Next

October 16, 2025 An Hour with Nicole: Personal Lines: Read the %^&* Form! NE/IA

October 21-22, 2025 CIC: Commercial Multiline Institute

October 21, 2025 CGL Endorsements That Will Break Your Policy

October 23, 2025 Just Use Mine: Home, Vehicle and Other Sharing Exposures Insurance Doesn’t Like

October 23, 2025 Dawn of New Age or End of the World? Emerging Risks That Make You Wonder

October 28, 2025 Stinkin Rich, Insurance Poor: P&C Coverage Challenges for High-Net-Worth Individuals

October 28, 2025 CISR: Commercial Casualty 1

October 29, 2025 Big Rig, Big Risk: Mastering Trucking Accounts

October 29, 2025 Social Security and Medicare: Your Questions Answered

October 30, 2025 Definition of Insanity: Common Home and Auto Exposures We Know Are There & Do Nothing About

November 4, 2025 CPIA 3: Sustain Success

November 11, 2025 CISR: Insuring Personal Residential Property

8:30 - 4:15 PM

Webinar: 12 - 3 PM

Webinar: 8 - 11 AM

Webinar: 8:30 - 4:15 PM

8 - 11 AM

Webinar: 8:30 - 4:15 PM

States Live Webinar: 8:30 - 4:15 PM

November 18-19, 2025 CIC: Commercial Casualty Institute All States Des Moines, IA

RISKS TO HOMES Homeowners Know but Do Nothing

Reports from all kinds of sources are talking about this being a season of drought for states all over the country. So not just California is at risk of disastrous wildfires. The PIA Western Alliance states of Oregon, Washington, Nevada and Arizona, along with California, are facing some serious threats as the summer progresses.

The Hanover Insurance Group released a report on homeowners and safety last week. Since most of us are aware of the need to fortify our property and protect it from wildfire, much of the focus of the survey was threats like water, wind and hail.

• One in 60 homeowners had water damage loss last year

• One in 35 filed an insurance claim related to wind or hail damage

• In a catastrophic weather event, 70% to 90% of residential losses are roofs

The survey found many homeowners ignore risks even when informed.

>>WATER<<

• 79% of homeowners say they are aware of the benefit of water sensors

• 76% know about automatic water shutoff devices

• But just 16% have installed those sensors

• Only 13% have water shutoff systems

>>WIND<<

• 61% of homeowners know about fortified roofing

• 59% know of the benefits of wind-related garages

• Just 17% have upgraded the roof

• And 10% have installed wind-rated garages

• The good news is more homeowners checking their roofs

• 57% of those surveyed said they checked their roof this year

• Last year’s figure was 38%

• 60% of homeowners have started trimming trees because 20% of wind and hail claims are from trees

>>FIRE<<

• Fire is the most expensive loss with the average cost topping $75,000

• But just 67% of homeowners have smoke detectors installed

• Yet, 99% know the importance of having them

• 62% have cleaned dryer vent ducts

• 57% have serviced or replaced HVAC filters

Source: Claims Journal

HOMEOWNERS INSURANCE RATES

A Frightening Statistic

LendingTree’s 2025 State of Homeowners Insurance Report shows rates were stable from 2019–2021, rising just 2–3% annually. But from 2022–2024, things changed: rates jumped 5.4% in 2022, then surged to 11% in 2023 and 11.4% in 2024.

The average cost of homeowners insurance nationwide is $2,801. If you live in Oklahoma, Nebraska or Kansas, things get even worse. Oklahoma’s average yearly cost is $6,133, Nebraska’s average is $5,912 and in Kansas the average yearly cost is $5,412.

The lowest average rates are in the states of Hawaii, California and in Vermont. Hawaii’s average is $632. The real surprise is California which is overwhelmed with an

homeowners insurance crisis. The Golden State’s average is $1,260.

The largest increases in the six-year period between 2019 and 2024 were Colorado with a 76.6% rise, Nebraska hit 72.3% and Utah sawa an average of 70.6%.

In 2024, the state of Montana and Nebraska had the biggest increases. Both saw average raises of 22.1%. The state of Washington was hit hard, too. Washington’s average hike in 2024 was 19.5%.

It was tied for third with Minnesota.

The lowest average increases in the six years between 2019 and 2024 were Vermont at 12.2%, the state of Alaska 12.9% and Maine at 17.9%

These are the coverages and deductibles used in the report:

• $400,000 dwelling coverage

• $40,000 other structures

• $200,000 personal property

• $80,000 loss of use coverage

• $100,000 liability

• $5,000 medical payments

• $1,000 deductible

Source: Insurance Journal

HAPPY, ENGAGED WORKERS

On the Decline

Gallup did a report earlier this month about employee engagement. State of the Global Workplace: Understanding Employees, Informing Leaders found employee engagement falling 24% in 2024.

That’s just the second drop in the last 12 years and it’s worrisome.

At 19%, Gallup’s survey found workers unable to work remotely are the least likely to be engaged. Both hybrid and on-site remotecapable employees are at 23%. The most likely to be engaged are remote workers.

That figure is 31%.

“Employee engagement measures the enthusiasm workers feel for their work and their attachment to their team and organization, and it directly affects team performance and business outcomes,” Gallup’s report said. “Remote workers may be more engaged because they have more autonomy in their work. This freedom allows them to play to their

strengths, reach a flow state more easily, and use their time more efficiently.”

The biggest decline in engagement came from managers. It dropped from 30% to 27%. The two types of managers most impacted, and likely to be less engaged, are younger managers under age 35 and female managers.

The report offers several suggestions to improve engagement:

• Make sure managers get training that will cut their extreme disengagement

• Just 44% of the managers surveyed say they get such training

• Teach managers how to coach workers and get them engaged

• When managers get such training, their thriving levels go from 28% to 34%

“Manager engagement is the key to reversing declining productivity, improving employee wellbeing and unlocking trillions in economic potential,” the reports concludes. “By redefining the role, expectations, and support of managers, leaders can create an environment where managers thrive — and when managers thrive, so do their teams. The choice for executives is simple: Invest in the future of management or risk the consequences of inaction.”