Main Street Industry News - August 2019

INSIDE Trump Administration Issues ObamaCare Small Business Break » 7 It’s Official: Burnout is a Medical Condition » 18 Finances: Families List Their Top Financial Problems » 31

Photo by Linh Nguyen

August 2019 | Published Monthly

farm

home

auto

Providing over 125 years of exceptional service and peace of mind—so you can focus on what matters most.

Contact: Andy Kraus, CPCU Vice President of Agencies akraus@fmne.com | 800.742.7433

fmne.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, visit us at www.pianet.com/voiceoftheclcustomer.

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.pianet.com/joinpia.

National Association of Professional Insurance Agents 400 N. Washington St., Alexandria, VA 22314-2353 www.pianet.com | membership@pianet.org | (703) 836-9340

Trump Administration Issues ObamaCare Small Business Break | 7 The Trump administration says it wants to continue to help small business with its ObamaCare obligations.

The Future of Autos Might Affect Auto Insurance | 8 The annual Collision Conference has released some interesting information.

Update: HealthCare: Medicare for All | 22 You heard ideas on Medicare for All in the debates of the Democratic Party presidential challengers.

Finances: Families List Their Top Financial Problems | 31 Gallup has a new poll. It involves the economy and what people — and people are your clients — fear most economically.

Flood Insurance Changes: Private Insurance Acceptance | 9 Important flood insurance decision.

Reauthorizing TRIA: A High Insurance Priority | 12 It was originally called the Terrorism Risk Insurance Act or TRIA. Distracted Driving: More Research, More Danger | 14 Teenagers come first in this report.

A Huge Reason for Purchasing Cyber Insurance | 16 If you haven’t been able to convince your clients large and small to at least think about picking up cyber insurance, show them this story.

It’s Official: Burnout is a Medical Condition | 18 The World Health Organization (WHO) has officially declared that burnout is a medical condition and added it to the International Classification of Diseases (ICD).

PIA NE IA EVENTS Farm Seminar October 1, 2019 | 24 Scholarship Golf Outing September 5, 2019 | 25 Upcoming Events Calendar 2019 | 26 Professional Insurance Agents NE IA, AIMS Society and The National Alliance Designation | 30

ADVERTISEMENTS

A.M Best: P&C Net Income Up 70% in 2018 | 20 A.M. Best’s special report Generally Favorable 2018 Statutory Results for Property/Casualty Insurers says P&C insurer net income rose close to 70% in 2018. No.

August 2019 | Main Street Industry News | www.pianeia.com | 4

Contact us to place an ad. Cathy Klasi, Executive Director (402) 392-1611

SHOW YOUR PIA PRIDE!

ncy e g ce A ran

ent u g A s . t In nQ Joh n Stree treet Mai Main S SA 123 town, U Any

John Q. Agent Main Street Insurance A gency 123 Main Street Anytown, USA

Showcase the PIA member logo on your business cards, letterhead, and more.

Download Now: www.pianet.com/pialogos

IS YOUR E&O X-DATE HERE? 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.

SUBSCRIBE OR COMMENT Professional Insurance Agents NE IA Attention: Editorial Main Street Industry News 920 S 107 Avenue, Ste. 305 Omaha, NE 68114 Email: office@pianeia.com Ph: 402-392-1611 www.pianeia.com

Considering a change?

Let the PIA quote your E&O

Steve Bailey (402) 392-1611 Steve@pianeia.com

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.

Join Our Facebook Fan Page

Professional Insurance Agents of NE IA

ADVERTISING QUESTIONS Cathy Klasi, Executive Director (402) 392-1611

This publication is designed by Strubel Studios.

E&O Coordinator Steve Bailey

TOP STORIES

TRUMP ADMINISTRATION, ISSUES OBAMACARE SMALL BUSINESS BREAK

The Trump administration says it wants to continue to help small business with its ObamaCare obligations. So a new rule has been added to the president’s executive order of 2017 and it expands insurance options.

Treasury Secretary Steven Mnuchin said the goal is to expand healthcare choices. “This new rule gives businesses a better way to offer health insurance to employees and allows workers to select coverage that best fits their and their families’ needs,” he said.

White House health care advisor Brian Blase said what the rule does is allow employers to use tax-exempted funds — or health reimbursement arrangements — and give them to workers so they can purchase insurance on the individual market. The decision will “particularly benefit smaller employers ... by creating another option for financing worker health insurance coverage,” he said.

While controversial, this one is much less controversial than the original order in 2017.

The administration says that action expanded short-term health insurance plans that are cheaper for employers. They don’t — however — cover people with pre-existing conditions.

That set off a firestorm of Democrat criticism.

Department of Health and Human Services (HHS) Secretary Alex Azar said the criticism is unfair and this action proves that. “President Trump has promised Americans that he will put them in control of their healthcare,” he said.

“And this expansion of health reimbursement arrangements will help deliver on that promise by providing Americans with more options that better meet their needs.”

Source: The Hill

August 2019 | Main Street Industry News | www.pianeia.com | 7

TOP STORIES

THE FUTURE OF AUTOS MIGHT AFFECT AUTO INSURANCE The annual Collision Conference has released some interesting information. The phone and some other, new auto-sharing concepts could soon replace the automobile for a lot of people.

Filld is a mobile gas delivery service. Its CEO Scott Hempy pointed out that more people are working from home these days and that is causing the interest in owning a car to drop.

Experts like Andre Haddad — CEO of the carsharing company Turo — say ride-sharing apps like Lyft and Uber, and shared ownership of autos could end up replacing individual autos in the future.

Then there’s autonomous vehicles. Volvo Cars Technology CEO Zaki Fasihuddin said they’re going to be used for ridesharing in the future and that — too — is going to drop the demand for cars.

“Your phone will be your car,” he said and pointed out that more people may end up renting vehicles from time to time rather than buy. Unaffordable car payments, parking and — yes — insurance are the reasons.

“Give consumers the choice,” he said. “Ridesharing is a viable option. Nowadays people take that for granted, and that’s a valid mode of transportation.”

“Many more are realizing they can share their car when they’re not using it or rent it out to recover the big costs of ownership,” he said.

Source: Insurance Journal

While auto sales are still high worldwide, car ownership among young adults is dropping and a lot fewer people under age 25 are buying cars. That said, demand for vehicles for weekend trips and vacations will be stable and even go up.

August 2019 | Main Street Industry News | www.pianeia.com | 8

TOP STORIES

FLOOD INSURANCE CHANGES PRIVATE INSURANCE ACCEPTANCE In February of this year the Federal Reserve System’s board of governors, the Farm Credit Administration, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration and the Office of the Comptroller of the Currency made an important flood insurance decision.

They said private flood insurance will be legal in some circumstances and banks and other lenders must accept that decision.

The decision is based on policies that were put into place by the Biggert-Waters Flood Insurance Reform Act of 2012. The circumstances listed include a definition of private flood insurance and said — under Biggert-Waters — financial institutions have: • Mandatory acceptance of private flood insurance • Mandatory acceptance of compliance aid • Discretionary acceptance of private flood insurance • Food coverage provided by mutual aid societies What this basically means is insurance issued by duly licensed or approved insurance companies can and will be accepted. However, the insurance must be as comprehensive and as broad as that provided by the National Flood Insurance Program (NFIP).

And while these changes have happened and it’s now easier to pick up private flood insurance, the Higher Ground coalition is urging Congress and other governments to take action to keep development out of low-lying floodplains.

The group is sending out a — pun intended — storm of videos, photos and other materials to persuade the federal, state and local governments to ban such building.

The group says statistics from New York University’s Furman Center shows that 5% of the population of the country lives in areas prone to flood every 100 years. Yet building is not prohibited in those areas. You can build if you follow regulations that reduce risk and if you purchase flood insurance.

Carlos Martin of the Urban Institutes said the impact of climate change with more frequent and powerful storms make this building not a very good idea. “Development continues in places that are less than ideal — known floodplains and future ones,” he said.

Chad Berginnis is the executive director of the Association of State Floodplain Managers.

The non-profit says beefed up regulations will prevent more losses and fewer costs to taxpayers. “The communities who have those kind of standards on their books typically experience less flood damage,” Berginnis said.

Source: JD Supra, Reuters

August 2019 | Main Street Industry News | www.pianeia.com | 9

THE HARTFORD’S FLOOD PROGRAM

PIA MEMBERS - ACCESS THE TOOLS, TECHNOLOGY AND SUPPORT YOU NEED TO GROW YOUR FLOOD BUSINESS The Hartford and PIA have joined together to make it easier for PIA member agents to provide their clients with flood coverage through The Hartford. The program is available to PIA members and their policyholders in all 50 states and Puerto Rico.

HELPING YOU MARKET • On demand training • Webinars • Marketing materials and newsletter • Dedicated Flood Sales Executive • Access to Transfer Consultant – we make moving your flood business to The Hartford easy • Access to Training Consultant – we help you build flood expertise ADVANCED TECHNOLOGY FOR EASE OF DOING BUSINESS • Flood zone determinations • SEMCAT and Vertafore integrated flood quote technology • Electronic application submission • Assistance in obtaining elevation certificates • Technological upgrades due to legislative changes MEASURING YOUR SUCCESS • Claims reporting • Policy database download and maintenance • Electronic movement of premium and commission funds • Increased revenue with competitive commissions • Reports on demand • Repetitive loss review

THE PIA ADVANTAGE When you participate in PIA National’s official flood insurance program from The Hartford, you have the power of PIA behind you.

PIA’s dedicated staff is ready to help if you need assistance. And, you’ll have access to The Hartford’s Flood Insurance Marketing Support Center.

CONTACT US For more information about The Hartford’s Flood Insurance program for PIA agents, contact your local Flood Sales Executive: Michele Battis Phone: 704-972-5918 Email: Michele.Battis@thehartford.com

LEARN MORE AT PIANET.COM/HARTFORDFLOODINSURANCE.

The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including issuing companies, Hartford Fire Insurance Company, Hartford Insurance Company of the Midwest and Hartford Underwriters Insurance Company. Its headquarters is in Hartford, CT. All policies are written subject to the National Flood Insurance Program. Please note that this product is available in most states. Features and credits may vary by state. For simplicity, this brochure does not include all the features, exclusions and limitations of the policy. For full information, The Hartford suggests that you read your policy or consult with your independent agent. On all losses and claims, policy terms apply. All information and representations herein are as of March 2018 PLA245-1 © March 2018 The Hartford Financial Services Group, Inc. All rights reserved.

: E Y B D GOO MARRKKEETTININGG YS OOFF MA WAAYS OOLLDD W

: O L L E H PI A DMV

t, a oneirect Marketing Vaul D s A’ PI V: M D A s.

PI Introducing the tal advertising service gi di d an l ai m ct re ur di stop shop for all yo

Old Way • • • • • • •

Hire a designer to create your marketing pieces Take years curating your own prospect marketing list Spend hundreds on postage Print, bundle and deliver mail to multiple post offices Mail is delivered to mismatched prospects Increase your reach by placing ads in the newspaper Takes weeks or months to execute

New Way

• • • • • • • •

Use PIA-branded postcard templates or create custom pieces with the PIA DMV in-house team Filter customers by preferred demographics (age, gender, income, homeownership, and more!)

Deliver mail to every home and business on a postal route Or target customers based on a list you provide or purchase from the PIA DMV Customer service team prints, prepares the mailing, and ships directly to multiple post offices.

Digital ads delivered to mailed recipients’ digital devices Save money with low cost postage Quick, fast, and easy marketing

Find your next client and grow your business with the PIA DMV.

www.piadmv.com

PIA’s Direct Marketing Vault is made available to PIA members through the PIA Branding Program.

Funding for the PIA Branding Program is provided in part by PIA’s Pinnacle Partners.

TOP STORIES

REAUTHORIZING TRIA

A HIGH INSURANCE PRIORITY

It was originally called the Terrorism Risk Insurance Act or TRIA. Later the law evolved into the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA). It was signed into law by President Barack Obama and will run through December 31, 2020.

TRIA — or TRIPRA — is the federal backstop that helps insurers survive a terrorist act like that of 9/11. The industry is already preparing Congress for renewing TRIPRA when it expires next year.

Several executives from Marsh and others testified recently before the Senate Banking Committee. Their message? Keep TRIPRA and keep it viable.

Tarique Nageer is the company’s property terrorism placement and advisory leader. He led the group and said there hasn’t been any events in recent years but “terrorism remains

an evolving, expanding, and ever-present risk in the US, which underscores the importance of the Terrorism Risk Insurance Program and its role in ensuring the continued stability and health of the terrorism insurance markets.”

Marsh President and CEO John Doyle agrees.

“The breadth of clients purchasing terrorism insurance in the US is considerable and comprised of companies across every sector of the economy, of all sizes, in big and small cities alike,” Doyle said. “These organizations depend on the program to thrive and protect their workforce. We strongly support the reauthorization of TRIPRA.” So does PIA National. Your association believes it to be important to insurers, business and consumers. “The high level of exposure, particularly for certain geographic areas, has created an increased need for such insurance,” PIA National stated in 2015 when the TRIA

August 2019 | Main Street Industry News | www.pianeia.com | 12

TOP STORIES extension was being discussed. “The TRIA program addresses those concerns by offering a feasible solution through what has proven to be a successful public/private partnership.”

Guy Carpenter’s Emil Metropoulos worries about the impact of non-renewal on workers’ compensation. He runs the Workers’ Compensation & Terrorism Center of Excellence for the company — which, by the way, is a Marsh & McClennan company — and said, “Uncertainty about TRIPRA’s future is already prompting insurers and terrorism insurance buyers to seek additional reinsurance limits and coverage, on the assumption that there will be limited capacity available in the private market.”

Nageer agreed. “A seamless renewal process and robust reauthorization bill can help keep the terrorism insurance market viable and competitive for buyers and encourage decisions to be made with a full understanding of shifts in the nature of terrorism and how they can affect organizations and insurers.”

Workers’ compensation losses from 9/11 hit $2.8 billion but would have been significantly higher if the World Trade Center was a full occupancy at the point of the attack.

Nageer said, “The impact of TRIA on the workers compensation market makes clear that as long as the federal backstop remains in place, there should be adequate capacity for workers compensation terrorism coverage.

Because of its state-regulated nature, workers compensation policies cannot limit or exclude coverage for perils such as terrorism or nuclear, biological, chemical or radiological.”

That’s the pitch to the committee. It’s chaired

by Republican Sen. Mike Crapo of Idaho. His goal is to reduce taxpayer exposure while still keeping the program intact. That’s why his

committee is already meeting with stakeholders like the nation’s insurers.

The committee’s ranking member is Sen. Sherrod Brown of Ohio. He wants to look at the availability and affordability of coverage for religious institutions that are the current focal point of terrorist activity by white supremacists.

Brown said he’s heard that these religious institutions cannot get affordable coverage.

Baird Webel is an economics specialist from the Congressional Research Service. He answered Brown’s question and said, “The law is basically silent on that. There is a make-available provision, but it does not include specifications on what the premium is supposed to cost. This is certainly an issue.”

Nageer said there is plenty of capacity for that kind of coverage. “The terrorism marketplace, as we see it, is quite competitive,” he said.

Brown also wondered how long the TRIPRA extension should last. “I think anywhere between seven to 10 years would be a good outcome,” Nageer said. “It would allow the marketplace to adapt and grow, build capital and be able to take on more of a trigger or coinsurance mechanism.”

Kunreuther agrees. “A longer period is always desirable, but I think there are tradeoffs in doing that because when you have a longer period, the question is are there going to be changes that would require one to review this,” he said. “I think cyber is a very good example of that, by the way, because there are some real challenges as to how one is going to deal with cyber and that would not have been necessarily true five or 10 years ago.”

Sources: Insurance Business America, Business Insurance, PIA National

August 2019 | Main Street Industry News | www.pianeia.com | 13

TOP STORIES

DISTRACTED DRIVING MORE RESEARCH, MORE DANGER

Teenagers come first in this report.

AAA says the most distracted drivers in the country are teenagers. That’s no surprise.

Young adults — from stats we’ve read — are the next most distracted. AAA says from 2013 to 2017 they killed over 3,500 people while driving distracted. These statistics were released by AAA’s Foundation for Traffic Safety. It does so every year as it marks what AAA calls the 100 most dangerous days for traffic fatalities.

That is the period between Memorial Day and Labor Day. The study looks at information from the National Highway Traffic Safety Administration Fatality Analysis Reporting System and at drivers age 15 to 18. Their driving permissions

August 2019 | Main Street Industry News | www.pianeia.com | 14

TOP STORIES range from learners permits to restricted license to full driving privileges.

AAA Executive Director Dr. David Yang said speeding and driving while drinking are the main causes of those 3,500 deaths.

“Crash data shows that teens are a vulnerable driver group with a higher probability of being involved in crashes,” Yang said. “And while teens may make mistakes when first learning to drive, it is important to continue educating them about safety behind the wheel so they avoid the reckless behaviors that put themselves and others at risk on the road.”

The stats are frightening: • 52% of teens admit to reading a text message or email while driving • 40% say they have sent texts or emails while driving • 58% of crashes were because teens did not use hands-free devices, or were texting As for solutions? Dr. Wendy Sue Swanson is a pediatrician at Seattle, Washington’s Seattle Children’s Hospital. She gives lectures to parents and teens about unsafe driving. One of the cures — Swanson notes — is for parents to have a pact with their kids to not text or call their children when they know they’re driving.

“The first six months of driving are the most dangerous in our life time,” Swanson said. “We have to be ruthless about how to compartmentalize looking at our phones ... turn off the phone, put the do not disturb on or airplane mode.”

The National Safety Council has done an interesting study on the dangers of distracted driving. It talked to first responders like police, ambulance and others giving aid at the scene of a crash, a disabled vehicle and other

incidents. The study also checked in with those driving by them.

• 71% say they slow down and take photos of the emergency workers • That’s three-times more than the 24% who take photos in normal driving • 60% say they post the crash photos — or whatever the emergency — on social media • 66% say they do so while driving by the incident Doing such foolish photography has consequences and these are a big concern of the emergency workers polled by the National Safety Council. A frightening 16% of drivers taking photos at an emergency admit to hitting or nearly hitting the vehicle of a first responder.

• 40 first responders were killed last year at the side of a road • That’s up 60% from 2017 • 21 people have died so far in 2019 • 10 are police officers • 14 police officers were killed in these crashes in 2018 Kelly Nantel of the National Safety Council said, “What surprised us most about this study was the magnitude of people who are really exercising very dangerous behavior. They’re adding another level of exposure to these first responders.”

Nantel pointed out that all 50 states have what is called a move-over law. It requires drivers to give first responders some room when driving by a crash, a stalled vehicle, or whatever crisis the responder is responding to. Police say about half of us do it.

Sources: ABC News, CBS News Photo by Alexandre Boucher

August 2019 | Main Street Industry News | www.pianeia.com | 15

TOP STORIES

A HUGE REASON FOR PURCHASING

CYBER INSURANCE If you haven’t been able to convince your clients large and small to at least think about picking up cyber insurance, show them this story. This is scary stuff. Very scary. Organized crime groups on the Dark Web are selling access to the computer networks of banks.

They are also selling tools and instructions to help people hack them.

This information comes from Michael McGuire who is a professor of criminology at the University of Surrey in Britain. He and his team found bad guys selling tools to help steal login info for businesses including the customers of Bank of America and the Qatar National Bank.

Marketplaces for hackers. Oh, goodie.

“We couldn’t legally purchase this stuff,” McGuire said and noted the data being sold can be used for ID theft and for credit card fraud. Others use the tools sold on the Dark Web to plant ransomware. Some of those selling this information are individuals. Others — McGuire suspects — are nation states.

By the way, you can pick up a phishing tool kit — including a manual to explain how it works step-by-step — for as little as $11.

The groups selling this stuff are being sought out by people but they are also checking in with employees at large companies and are asking if they’d be willing to sell contract and payroll information.

Though the health industry from doctors to hospitals to insurers are the most hacked, the financial sector is the biggest target for those selling or trying to buy information.

They amount to 35% of the offers on the Dark Web. If you want to hire one of these bad actors to hack a corporation it can run you $4,500. To target someone specifically — like for blackmail or some such action — it can cost $1,000 to $15,000.

There is a lesson in all this, and it’s one that’s actually good advice. McGuire said cyber security officials from corporations and government ought to be monitoring the Dark Web regularly. He says you never know what attack hints you’re likely to pick up.

At the very least you might be able to catch an employee doing something that will be very damaging to the company.

Source: PropertyCasualty360.com

August 2019 | Main Street Industry News | www.pianeia.com | 16

WHO YOU GONNA CALL WHEN THEY SLIP AND FALL? BUSINESS INSURANCE THAT’S DESIGNED TO BE WORRY FREE A company is a business owner’s pride and joy. Help maximize coverage and protect it with business insurance from the Worry Free company — IMT Insurance.

Learn how you can represent IMT Insurance at imtins.com/contact.

AUTO | HOME | BUSINESS

SELECT THE RIGHT AG RISK MANAGEMENT SOLUTIONS FOR YOUR OPERATION From traditonal MPCI to Crop Hail and Private Product coverage, we provide up-to-date information, prompt response, and quick turnaround of claim payments.

Find an ARMtech agent in your area. www.armt.com 800.335.0120

ARMtech Insurance Services, Inc. is an equal opportunity provider.

2019 ARMtech PIA of NE IA ad.indd 1

1/14/2019 4:09:10 PM

TOP STORIES

IT’S OFFICIAL BURNOUT IS A MEDICAL CONDITION

The World Health Organization (WHO) has officially declared that burnout is a medical condition and added it to the International Classification of Diseases (ICD).

Burnout is defined as “a syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed.”

August 2019 | Main Street Industry News | www.pianeia.com | 18

TOP STORIES Also included in the statement is a broad definition of burnout: • Feelings of energy depletion or exhaustion • Increased mental distance from one’s job, or feelings of negativism or cynicism related to one’s job • Reduced professional efficacy WHO said the designation is mostly aimed at the workplace. “Burn-out refers specifically to phenomena in the occupational context and should not be applied to describe experiences in other areas of life,” the statement said.

The publication Psychology Today took the WHO designation and listed five ways to help you define whether you are burned out or not.

It is difficult to cope with workplace stress: WHO says burnout is more than just stress.

It is at the core of the concern. Stress can be handled with some coping mechanisms.

Burnout comes from those coping systems not working.

Drained from work: When work exhausts you or depletes all of your energy, you are burned out. To test this go back to a time when you put in the same amount of hours and same amount of work and ended that amount of time feeling invigorated. Burnout says you are more mentally, emotionally and physically exhausted by that same work.

and negative. It becomes more and more difficult to connect positives to work.

You don’t feel you can accomplish your work obligations: When stress in the workplace becomes chronic you become less efficient. You doubt your ability. This doubt includes work you are normally very competent doing. This — in turn — impedes your motivation, functionality and productivity.

The publication says if you’re feeling any of these things, you are burned out and need to seek assistance from a trained professional.

WHO also added two new conditions to the list: • Compulsive sexual behavior as a mental disorder • It is not an addiction as some have suggested • Video gaming The list removes transgenderism as a mental disorder. It is now a “condition related to sexual health.”

Sources: Psychology Today, The Straits Times, Quartz at Work, The Daily Mail

You find no pleasure in your work: Even if your job is exhausting, you still feel connected, that you have a purpose and fulfilled by your work. When you are burned out you have no pleasure in work at all.

Negative feelings about work: When you are burned out thoughts about work brings up negative emotions. You find yourself cynical

August 2019 | Main Street Industry News | www.pianeia.com | 19

TOP STORIES

A.M BEST

P&C NET INCOME UP 70% IN 2018 A.M. Best’s special report Generally Favorable 2018 Statutory Results for Property/Casualty Insurers says P&C insurer net income rose close to 70% in 2018. No. You did not read that number incorrectly nor is it a typo.

THE ACTUAL FIGURE IS 69.3% AND IT SAT AT $59.2 BILLION. Lower catastrophe losses, loss reserve improvements and higher net investment income are some reasons. The tax reducing 2017 Tax Cut and Jobs Act didn’t hurt either.

Net written premiums jumped 10.8% due to the tax changes and was at $617.4 billion by year’s end. Improved underwriting percentages helped. Here’s more: • Incurred losses rose 4.4% • Lower catastrophe payouts helped the loss-adjustment expenses • They fell 0.5% • Underwriting expenses rose 0.7% • There was a 9.9% uptick in net premiums earned

• So the overall underwriting loss was $2.9 billion • That’s a huge improvement over last year’s underwriting loss of $25.3 billion • The combined ratio dropped to 99.6 from 104.6 There’s also net investment income. It increased 14% in 2018. On the negative, unrealized investment losses hit $43.8 billion.

Equity market declines caused those losses and they had an effect on the policyholders’ surplus.

Sources: Carrier Management, Business Insurance

August 2019 | Main Street Industry News | www.pianeia.com | 20

Are You Standing Out or Standing Still?

Berkshire Hathaway GUARD will help you rise above the competition.

Apply now at www.guard.com/apply/

Berkshire Hathaway

GUARD

Insurance Companies

AmGUARD EastGUARD NorGUARD WestGUARD

The Security You Need. The Name You Trust.

TOP STORIES

UPDATE: HEALTHCARE MEDICARE FOR ALL

You heard ideas on Medicare for All in the debates of the Democratic Party presidential challengers. The U.S. House of Representatives recently held a hearing on the matter.

Proponents say it is about time and opponents — and that includes a lot of Democrats and House Speaker Nancy Pelosi — say at $33 trillion over a decade, it’s too expensive and not workable.

Of the leading candidates for president, Sen. Bernie Sanders, Sen. Elizabeth Warren and Sen. Kamala Harris support the idea and don’t want to leave much room for private insurers to participate.

Former Vice President Joe Biden and South Bend, Indiana Mayor Pete Buttigieg want a government option — a government insurance

August 2019 | Main Street Industry News | www.pianeia.com | 22

TOP STORIES company — that works alongside private insurers. The consumer gets to choose which one they want.

Referring back to what happened when President Obama promised this for ObamaCare, most of us — according to a Morning Consult/Politico survey — like the idea of Medicare for All if we can keep our own doctors.

While not an overwhelming majority, when told Medicare for All would reduce the role of private insurers in healthcare but you can keep your doctor, the figure is significant at 55%.

When just told the system would only diminish the role of private insurers the support figure fell to 46%.

Here’s more: • 77% of Democrats want it • 50% of Independents want it • 27% of Republicans want it A different poll — one done by the Kaiser Family Foundation — says most of us don’t really have a clue about how Medicare for All will work. In spite of stories and information outlining that these things will go away: • 69% said people will still pay premiums, deductibles and copays • 55% think people with private insurance will get to keep their plans • Those private plans — as you know — go away with Medicare for All • 54% think individuals and employers will keep paying premiums

As for who understands and who doesn’t, Republicans have a better understanding of the plan than Democrats: • Just 24% of Democrats know people will not be able to keep their private plans • 53% of Republicans know they won’t be able to keep those plans In the focus groups — and once they understood the Medicare for All plan — Kaiser said many were skeptical that private insurance would go away. Many feel these companies are too powerful and will be there for those wanting extra coverage.

Lastly, questions on cost. Kaiser did find that 78% of those polled understand that taxes will increase for most of us if the plan is eventually adopted.

On the subject of healthcare, theTrump administration is continuing its effort to totally overturn the Affordable Care Act. The 5th Circuit Court of Appeals in New Orleans is hearing — as you read this, or shortly before you read this — the case of the 20 Republicanled states that filed the suit to overturn the law based on the tax reforms passed in 2017.

It did away with the individual mandate.

Texas-based U.S. District Court Judge Reed O’Connor agreed with the Republican led states and said since the individual mandate is gone, ObamaCare is unconstitutional and the law invalid.

Democratic Party led attorneys general in 20 states filed an appeal. That appeal is what is being heard in the 5th Circuit Court of Appeals.

Source: The Hill

August 2019 | Main Street Industry News | www.pianeia.com | 23

PIA NE IA EVENTS

Upcoming Events Calendar 2019 For information and to register Click Here or call (402) 392-1611.

Date

Class/Webinar

Where

When

July 8 - August 23, 2019

MERG: Personal Lines Coverage Basics

Online

Online Course

July 8 - August 30, 2019

MERG: Make Your New Employee A Winner

Online

Online Course

August 7, 2019

CISR: Elements of Risk Management

Davenport

Saint Ambrose University

August 8, 2019

Ethics and E&O: Synergy, Not Rivalry

NE/IA

Webinar: 12:00PM - 3:00PM

August 12 October 12, 2019

MERG: Commercial Lines Coverage Basics

Online

Online Course

August 12 October 4, 2019

MERG: Make Your New Employee A Winner

Online

Online Course

August 13, 2019

Everything's Soaked and My Stuff Stinks: The Water Damage Webinar

NE/IA

Webinar: 12:00PM - 3:00PM

August 13, 2019

E&O: Reasons and Solutions

NE/IA

Webinar: 8:00AM - 11:00AM

August 14, 2019

CISR: Insuring Personal Residential Property

Waukee

Holmes Murphy & Associates, LLC

August 15, 2019

How Savvy Businesses Use Life Ins. to Hedge Against Financial Losses

NE/IA

Webinar: 12:00PM - 3:00PM

August 21, 2019

Alphabet Soup: The Mistakes and Coverage Behind D&O, EPLI, FLI and EBL

NE/IA

Webinar: 12:00PM - 3:00PM

August 21 - 23, 2019

CIC: Insurance Company Operations Institute

West Des Moines

Holiday Inn Hotel & Suites

August 27, 2019

Catastrophe: The Coverage Expertise You'll Need When It Matters Most

NE/IA

Webinar: 12:00PM - 3:00PM

August 28, 2019

Contractors, Contractors, Contractors

NE/IA

Webinar: 8:00AM - 11:00AM

August 29, 2019

*NEW* Commercial Liability Claims That Cause NE/IA Problems

Webinar: 12:00PM - 3:00PM

August 2019 | Main Street Industry News | www.pianeia.com | 26

PIA NE IA EVENTS

September 5, 2019

2019 Annual Scholarship Golf Outing - Golf & Dinner Registration

Ashland

Iron Horse Golf Club

September 5, 2019

A Walk Around the Farm: Farm Liability Considerations

NE/IA

Webinar: 12:00PM - 3:00PM

September 8 October 25, 2019

MERG: Personal Lines Coverage Basics

Online

Online Course

September 11, 2019

On Ethics: Data, Dilemmas and Knuckleheads

NE/IA

Webinar: 12:00PM - 3:00PM

September 11, 2019

CISR: Insuring Commercial Property

Hiawatha

Kirkwood Linn Regional Center

September 17, 2019

Certificates of Insurance and Additional Insureds: Making Sense of It

NE/IA

Webinar: 8:00AM - 11:00AM

September 17, 2019

Everything's Soaked and My Stuff Stinks: The Water Damage Webinar

NE/IA

Webinar: 12:00PM - 3:00PM

September 18, 2019

Cyber Coverage - Data Breach and So Much More!

NE/IA

Webinar: 12:00PM - 3:00PM

September 18, 2019

CPSR: Systems, Operations & Procedures

Kearney

Younes Conference Center

September 23, 2019

CPIA 1: Position for Success

Waukee

Holmes Murphy & Associates, LLC

September 25, 2019

CISR: Personal Lines Miscellaneous

Des Moines

Hilton Garden Inn Des Moines/Urbandale

September 25 - 27, 2019

CIC: Commercial Casualty Institute

Omaha

Omaha Marriott Hotel

September 26, 2019

CPIA 1: Position for Success

Omaha

Omaha Marriott Hotel

October 3, 2019

Ethics and E&O: Synergy, Not Rivalry

NE/IA

Webinar: 12:00PM - 3:00PM

October 7 November 29, 2019

MERG: Delivering Quality Service (to the Customer and the Employer)

Online

Online Course

October 8, 2019

Insurance Issues for Today's World

NE/IA

Webinar: 12:00PM - 3:00PM

October 9, 2019

CISR: Agency Operations

Waukee

Holmes Murphy and Associates, LLC

October 10, 2019

CPSR: Commercial Casualty

York

Holthus Convention Center

October 16, 2019

E&O: Reasons and Solutions

NE/IA

Webinar: 12:00PM - 3:00PM

October 16 - 18, 2019

CIC: Commercial Multiline Institute

West Des Moines

Holiday Inn Hotel & Suites

August 2019 | Main Street Industry News | www.pianeia.com | 27

PIA NE IA EVENTS

October 22, 2019

Homeowner's Policy Coverage Concerns for the Modern Family

NE/IA

Webinar: 12:00PM - 3:00PM

October 23, 2019

Commercial Property Claims That Stink and How To Handle Them

NE/IA

Webinar: 12:00PM - 3:00PM

October 23, 2019

CISR: Commercial Casualty 2

Davenport

Saint Ambrose University

October 29, 2019

Alphabet Soup: The Mistakes and Coverage Behind D&O, EPLI, FLI and EBL

NE/IA

Webinar: 12:00PM - 3:00PM

October 29, 2019

Construction Contracts: What The Ins. Agent Should Know, Do & NOT Do

NE/IA

Webinar: 8:00AM - 11:00AM

November 6, 2019

CISR: Commercial Casualty 1

Hiawatha

Kirkwood Linn Regional Center

November 7, 2019

On Ethics: Data, Dilemmas and Knuckleheads

NE/IA

Webinar: 12:00PM - 3:00PM

November 12 - 13, 2019

Ruble: Graduate Seminar (NE)

Omaha

Omaha Marriott Hotel

November 19, 2019

Everything's Soaked and My Stuff Stinks: The Water Damage Webinar

NE/IA

Webinar: 12:00PM - 3:00PM

November 20, 2019

CISR: Elements of Risk Management

Des Moines

Hilton Garden Inn Des Moines/Urbandale

November 20, 2019

Contractors, Contractors, Contractors

NE/IA

Webinar: 12:00PM - 3:00PM

November 21, 2019

If It Moves On the Farm It Presents A Risk

NE/IA

Webinar: 12:00PM - 3:00PM

November 21, 2019

Catastrophe: The Coverage Expertise You'll Need When It Matters Most

NE/IA

Webinar: 8:00AM - 11:00AM

December 3, 2019

Ethics and E&O: Synergy, Not Rivalry

NE/IA

Webinar: 12:00PM - 3:00PM

December 5, 2019

Alphabet Soup: The Mistakes and Coverage Behind D&O, EPLI, FLI and EBL

NE/IA

Webinar: 12:00PM - 3:00PM

December 10, 2019

Cyber Coverage - Data Breach and So Much More!

NE/IA

Webinar: 8:00AM - 11:00AM

December 10, 2019

Homeowner's Policy Coverage Concerns for the Modern Family

NE/IA

Webinar: 12:00PM - 3:00PM

December 12, 2019

E&O: Reasons and Solutions

NE/IA

Webinar: 8:00AM - 11:00AM

December 12, 2019

Commercial Liability Claims That Cause Problems

NE/IA

Webinar: 12:00PM - 3:00PM

December 17, 2019

How Savvy Businesses Use Life Ins. to Hedge Against Financial Losses

NE/IA

Webinar: 12:00PM - 3:00PM

August 2019 | Main Street Industry News | www.pianeia.com | 28

PIA NE IA EVENTS

Carrying you into the future.

Our cutting edge technology is backed by the largest crop insurer in America with knowledgeable field staff and division offices ready to serve you in this ever-changing industry. We provide you with updated training and tools as soon as new products and processes are released, so you can focus on what’s important: the success of your business and those you serve.

Rain and Hail, the partner your growers deserve.

Join our team today.

800.776.4045 | www.RainHail.com

This institution is an equal opportunity provider and employer.

August 2019 | Main Street Industry News | www.pianeia.com | 29

CONGRATULATIONS FOR YOUR EARNED DESIGNATION

The Professional Insurance Agents NE IA would like to congratulate everyone who has earned a designation from AIMS Society and The National Alliance in 2019.

2019 The National Alliance

CIC Designation Mr. Quinn Hancock, CIC True North Companies Cedar Rapids, IA 52406

AIMS Society

CPIA Designation Angela Redington CPIA Des Moines, IA Dione Young CISR, CPIA Holmes Murphy & Associates Waukee, IA

Mr. Anthony J. Hunt, CIC Central Insurance at Central Bank Cherokee, IA

CISR Elite Designation Ms Lacey Jo Koenigsfeld, CISR Elite TrueNorth Companies Cedar Rapids, IA 52405

CISR Designation Ms. Morgan Elizabeth Stroud, CISR AW Welt Ambrisco Insurance Agency Iowa City, IA

TOP STORIES

FINANCES: Families List Their Top Financial Problems Gallup has a new poll. It involves the economy and what people — and people are your clients — fear most economically. Health care costs topped the list. Here are some overall numbers: • 17% say health care is the most significant financial issue • 11% said a lack of money or low wages

of money and low wages in 2018. Health care costs, energy costs like oil and gas prices and a lack of money and low wages are the only three issues to be named a most important family financial problem listed in all 48 of these polls that Gallup has done since 2005.

It must be noted, though, that the high costs of energy and gas prices has dropped over the last decade.

Here’s another oddity from the poll:

• 8% pointed to college expenses

• 20% of us say we do not have a most important financial problem

• 8% noted the cost of owning or renting a home

• That’s one of the highest responses in 14-years

• 8% said taxes

• It also tops February of 2005 when 21% said none to that question

The issue is the top concern for older Americans: • 25% of those between 50 and 64 named it tops • 23% of people 65 and older did as well • It tied lack of money, college expenses and housing costs for those under 50 In 2017 health care costs topped the list as well and it came close to being in a tie with a lack

In its statement on the poll, Gallup said, “Even in generally good economic times, Americans still face significant personal financial challenges.

Foremost among these are healthcare costs, which have been a consistent concern over time but currently stand above all other concerns. As such, healthcare will likely continue to be a major focus in national elections, including the 2020 presidential election.”

Source: The Hill

August 2019 | Main Street Industry News | www.pianeia.com | 31

Help Keep Your Agency Active If You Should Become Disabled...

Cover Overhead Expenses With The PIA Trust

Business Overhead Expense Insurance Plan BOE COVERAGE DESIGNED WITH LOCAL AGENTS IN MIND As a PIA Member* serving Main Street America, you have access to a highquality, competitively priced BOE plan through the PIA Services Group Insurance Fund.

Office expenses don’t stop because you become disabled. Bills keep coming in whether or not you’re in the office. Those overhead expenses could become a real problem if your agency’s revenues are dependent on you. With the PIA Trust Business Overhead Expense plan, you can help maintain your agency until you are able to resume your duties.

For more information about the PIA Trust Business Overhead Expense Insurance Plan, please contact your local PIA Affiliate or call the Plan Administrator at (800) 336-4759.

PIA SERVICES GROUP INSURANCE FUND

Additional information is also available on-line at www.piatrust.com. * PIA National membership, when required, must be current at all times

The policy or its provisions may vary or be unavailable in some states. The policy has exclusions and limitations which may affect any benefits payable.

Underwritten by Unimerica Insurance Company, Association Administrative Address, P.O. Box 17828, Portland, Maine 04112-8828, under Policy Form ADI-4001-A (UIC).

Insurance Program Administered by Lockton Affinity, LLC.