Main Street Industry News - December 2013

INSIDE PIA National Responds to FIO Modernization Report »7 PIA Partnership & a New Tool for PIA Members »12 ObamaCare — Two Interesting Polls »16 Conning — The Independent Agency Model Still Works »19

Cover Photo: Nebraska Some rights reserved by Nebraska Helen

December 2013 | Published Monthly

Insuring the Midlands Since 1891 Les Hileman, CPCU, AIC Vice President of Agencies 800-742-7433 lhileman@fmne.com

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If you are not yet a PIA member, please consider joining today. Contact us for a membership application or visit us online at www.pianet.com/joinpia. * Membership in the National Association of Professional Insurance Agents must be in good standing at all times. This advertisement is not intended to provide full coverage details. A complete listing of the coverages including exclusions and limitations can be found in the policy forms. If differences exist between these summaries and the policy forms, the policy forms will govern. The policies may vary or be unavailable in some states.

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Top Stories PIA National Responds to FIO Modernization Report | 7 On December 13th the Federal Insurance Office (FIO) finally issued the report it was required to produce under the Dodd-Frank Act on how to modernize and improve the system of insurance regulation in the United States.

GEICO Now #2 Auto Insurer | 8 Ever aggressive and ever creative advertising has propelled GEICO to the number-two auto insurer in the nation.

Insurance Firms as a Threat to the Economy — FSOC Criticized | 9 The Financial Stability Oversight Council (FSOC) is charged — via the Wall Street reforming Dodd-Frank Act — with deciding which U.S. financial firms pose the greatest danger to the U.S. financial system.

Flood Insurance Reform Reforms Stall in Congress | 10 The Senate and the House have both said no to bills to put off the National Flood Insurance Program (NFIP) rate increases for flood insurance called for in the Bigger-Waters Act. PIA National Seeks Award Nominations | 11 PIA National is looking for nominations for three prestigious awards in its 2014 Spring Awards Program.

National Association of Insurance Commissioners (NAIC) to the White House.

Agents & Brokers & ObamaCare | 15 Here’s a story with a twist.

ObamaCare — Two Interesting Polls | 16 LIMRA — the Life Insurance and Market Research Association — did a study of how consumers are reacting to the Affordable Care Act’s federal government health exchange and the independent state exchanges.

Conning — The Independent Agency Model Still Works | 19 Conning says 12 of 18 personal lines insurers have outperformed their direct-writer peers in growth and profitability.

PIA NE IA Events Annual Holiday Party | 20 Upcoming Events Calendar 2013-2014 | 24

Advertisements Wanted, For Sale and Opportunities | 28 Contact us to place a classified ad.

PIA Partnership & a New Tool for PIA Members | 12 PIA National has unveiled a new tool designed to help independent insurance agencies achieve growth and profitability.

Meeting of the Minds — NAIC and U.S. Treasury Meet | 14 It was a meeting of the minds that started when President Obama invited the leadership of the December 2013 | Main Street Industry News | www.pianeia.com | 4

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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.

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Top Stories

PIA National

Responds to FIO Modernization Report

PIA National Executive Vice President and CEO Mike Becker

On December 13th the Federal Insurance Office (FIO) finally issued the report it was required to produce under the Dodd-Frank Act on how to modernize and improve the system of insurance regulation in the United States.

The report is almost two-years late.

In its comments last week, PIA National’s initial reaction was disappointment. “We are disappointed that the FIO, in its narrative regarding the 2007-2009 financial crisis, does not appear to take into account the report issued by the Government Accountability Office (GAO) on June 27, 2013. The FIO report sails by the GAO [General Accounting Office] conclusion that the state insurance regulatory system worked well to help mitigate the negative effects of the crisis on the insurance industry,” PIA National said.

The only case cited as an argument for more uniform regulation at the state regulatory level is AIG. “We believe it significantly misreads and misinterprets what actually happened. It also appears to give a pass to the regulatory failures admitted by the Office of Thrift Supervision (OTS) involving the non-insurance unit of AIG which generated the initial problems.”

PIA National says the report — in subtle ways — is trying to reframe the state vs. federal regulation of insurance. That reset includes the “assumption that federal involvement is necessary when the goals FIO sets out are not embraced by the states.”

This — if adopted — would replace deference to the states for determining insurance public policy with deference to the FIO. And this happens potentially under threat of preemption.

FIO may wish to change the terms of this debate as a way to advance its views and gain more power for itself. Congress — however — is under no obligation to accept the suggestions contained in the report.

PIA National is also highly critical of the FIO’s focus. “The FIO seems to express an inordinate level of concern with the global aspects of the insurance industry, as opposed to the domestic United States insurance marketplace. At one point, it asserts that the state-based regulatory system creates ‘inefficiencies and burdens … for the international community.’ [emphasis added] PIA believes that the primary public policy focus should be for the well-being of U.S. insurance consumers and our domestic insurance marketplace. Concern for domestic insurance operations should take precedence over concern for global insurance operations, not vice-versa.”

Ironically, many of the recommendations wanted by the FIO are already being undertaken by the National Association of Insurance Commissioners (NAIC). PIA National writes this is the way modernization ought to happen.

“This is appropriate, as the states regulate the business of insurance; however, since action is already being taken by the NAIC, many of these recommendations are merely duplicative.”

December 2013 | Main Street Industry News |www.pianeia.com| 7

Top Stories Last week PIA National Executive Vice President and CEO Mike Becker said the FIO — noting the current political climate — did not propose a full takeover of insurance regulation by the federal government. Instead, the report gets there in a more round about way. Becker also noted that the FIO’s report justifies federal involvement in the regulation of insurance via assumptions that will not hold up to close inspection.

NAIC CEO and former Sen. Ben Nelson said, “The Dodd-Frank Act established the Federal Insurance Office (FIO) within the Treasury Department and makes clear that FIO is not a regulatory agency and its authorities do not displace state insurance regulation. While we appreciate FIO’s suggestions for improvement, the states have the ultimate responsibility for implementing regulatory changes.”

Nelson went on to praise the nation’s system of state insurance regulation and his organization.

“The NAIC’s deliberate, thoughtful, and transparent process has served policyholders well for the past 140 years. In this regard,

GEICO

Now #2 Auto Insurer

reports such as this one as well as other comments provided by consumers, industry, and governmental organizations as part of this process are always welcome and are useful tools for assisting regulators in identifying areas that require improvement.”

Also commenting was National Conference of Insurance Legislators (NCOIL) President Rep. Greg Wren of Alabama. He said, “NCOIL will be thoroughly and thoughtfully examining the FIO Modernization Report with a keen eye toward its direct and indirect impact on the statebased system of insurance regulation.”

He, too, defended state regulation of insurance as a positive for consumers and for insurance.

“NCOIL legislators throughout the United States are fully aware of the preeminent role which has been reserved to the states in the regulation of insurance in order to protect U.S. consumers.

NCOIL stands ready to work directly with the Treasury Department and the FIO to ensure state legislatures have a significant role in the future of insurance regulation in the United States.” n

Ever aggressive and ever creative advertising has propelled GEICO to the number-two auto insurer in the nation. That news comes courtesy of third quarter financial reports compiled by SNL. GEICO hit $4.89 billion in direct premiums in the third quarter.

Allstate took in $4.65 billion.

Neither comes close to touching State Farm’s number-one status. State Farm took in $8.7 billion. n

December 2013 | Main Street Industry News | www.pianeia.com | 8

Top Stories

Insurance Firms as a Threat to the Economy – FSOC Criticized AIG has been designated by the FSOC as systemically significant. So has Prudential and MetLife. Some on the council do not approve of the FSOC approach to insurers. Roy Woodall — who is a former Kentucky insurance commissioner and who worked in the U.S. Treasury — is the independent insurance expert on the council. He has been critical of how the FSOC looks at insurance companies. So is Missouri Insurance Director John Huff who is also on the council.

The Financial Stability Oversight Council (FSOC) is charged — via the Wall Street reforming Dodd-Frank Act — with deciding which U.S. financial firms pose the greatest danger to the U.S. financial system. Those deemed systemically significant are then put under strict scrutiny and restrictions.

Most of the nation’s largest banks are targets for FSOC regulation. So are many insurers. That’s ironic because a Government Accountability Office (GAO) report noted in July of this year, insurers under state regulation came through the Great Recession and the financial crisis of 2008 and 2009 with flying colors.

Just one insurer had problems and that is AIG. It — some say — nearly brought down the world’s economy. But it was AIG’s financial services division and not its insurance division that caused the problem.

Both recently addressed the National Association of Insurance Commissioners (NAIC) committee working on issues of financial stability. Woodall said the FSOC’s reviews of insurance companies doesn’t give the needed clarity or transparency. A proper system of review — Woodall said — would help identify risky activities that can help state insurance regulators and international regulators stabilize the industry.

Huff agreed and said the FSOC members do not understand the business of insurance.

He isn’t so sure some of his fellow insurance regulators understand insurance either.

Both men are critical of the FSOC’s selection of defining systemically significant to the U.S. economy. The SIFI designation is decided upon through material distress tests. That direction, Woodall says, “provides no direction, clarity or transparency to the public or to state insurance regulators, international supervisors, the companies themselves — or even FSOC members as to what activities need to be addressed or modified.”

December 2013 | Main Street Industry News |www.pianeia.com| 9

Top Stories Huff has been super critical of the FSOC’s decision to designate Prudential a systemic risk. “Banking regulators should not be making designation decisions that could have impacts on firms and markets in which they have no experience or authority overseeing, like insurance,” he said.

The solution — Huff told the NAIC — is to listen to those around the decision table that have insurance experience. That would be Huff and Woodall. To do anything else, he advises, could

Flood Insurance Reform Reforms Stall in Congress The Senate and the House have both said no to bills to put off the National Flood Insurance Program (NFIP) rate increases for flood insurance called for in the Bigger-Waters Act. The increases go into effect in January.

Even Rep. Maxine Waters — whose name is on the legislation — wants the delay. She said she did not understand the extent of the financial hardship that some homeowners will experience.

Neither house of Congress was willing to go out on a line and redo the law.

end up sending the FSOC in the wrong direction.

“At its core, the basis for Prudential’s designation is grounded in implausible, even absurd scenarios, involving insurance policyholder runs and resulting liquidation of assets with little, if any, regard to the policyholder disincentives — contractual provisions that allow the company to manage surrenders over a lengthy period of time — and regulatory authorities that my colleagues, some of whom sitting here with me today, have to prevent surrenders,” Huff said. n

Her bill delays the implementation of the law for four years so the impact of the rate increases can be studied and more studies can be done on flooding.

Many oppose postponing the rate hikes. R.J. Lehmann of the R Street Institute Louisiana Senator — a think tank — said Mary Landrieu any changes in the law ought to be done with great deliberation. “To the extent that there are legitimate concerns about affordability or how the Biggert-Waters reforms are implemented, those are best addressed through targeted, limited and means-tested programs considered through regular legislative order,” Lehmann said.

And he added, delaying it may not be the smartest thing to do.

Rep. Maxine Waters

Louisiana Senator Mary Landrieu — a Democrat — said the senate will vote on her bill to delay the rate hikes. This will happen in January when Congress returns from the holiday break. Senate Majority Leader Harry Reid told Landrieu he will expedite a vote on the Homeowner Flood Insurance Affordability Act at that time.

“Simply kicking the can down the road with delays, whether short-term or long-term, fails to grapple with the reality that the flood program is broke, that the benefits being phased out flow disproportionately to wealthy homeowners and that, against the backdrop of rising sea levels and increasingly costly catastrophes, we simply can no longer afford to encourage people to live in flood-prone areas,” Lehmann said. n

December 2013 | Main Street Industry News | www.pianeia.com | 10

Top Stories

Seeks Award Nominations PIA National is looking for nominations for three prestigious awards in its 2014 Spring Awards Program.

Nominations are being accepted now through January 24, 2014 for the association’s Professional Agent of the Year, Customer Service Representative (CSR) of the Year and Young Insurance Professional of the Year awards.

The PIA National Professional Agent of the Year Award — the association’s highest national award of distinction — is presented annually to one outstanding professional insurance agent who is a member of PIA. Nominations for this award are made by PIA state and regional affiliate associations.

“Every Professional Insurance Agent is outstanding, but once a year we bestow our highest honor on just one PIA member who exemplifies the best of our best,” said PIA Nation President John G. Lee. The PIA National Customer Service Representative of the Year Award is given annually to an outstanding agency customer service representative who works for a PIA

member insurance agency. Nominations for this award are made by PIA members. The CSR of the Year Award is sponsored for the seventh year in a row by The Hartford, a member carrier of The PIA Partnership as well as a Pinnacle Partner.

The PIA National Young Insurance Professional of the Year Award is given to an outstanding employee, owner or principal of a PIA member agency who is under the age of 40 or a member of a PIA-affiliated Young Insurance Professionals association. PIA members as well as PIA state and regional affiliates may make nominations for this award, which is sponsored for the ninth year in a row by Rough Notes magazine.

All three awards will be presented during a luncheon ceremony on Friday, March 28, 2014, in Arlington, Virginia, held in conjunction with the 2014 PIA Federal Legislative Summit and 2014 PIA National Spring Governance Meetings. Learn more and download nomination forms at www.pianet.com/awards.

PIA’s four other major national awards — the Company Award of Excellence, the Managing General Agency of the Year, the Company Representative of the Year and Excellence in Social Media — will be presented in San Antonio, Texas, on September 20, 2014, in conjunction with the association’s Fall Governance Meetings. n

December 2013 | Main Street Industry News |www.pianeia.com| 11

Top Stories

PIA Partnership and a New Tool for PIA Members PIA National has unveiled a new tool designed to help independent insurance agencies achieve growth and profitability. The tool is a product of The PIA Partnership, PIA National’s agency-company council.

for agents. Agencies can also project auto and homeowner premium and commission by customer type — comparing various ways in which their own retention rates, premium rates and commissions factor into agency profitability.

The tool is called Closing the Gap – Growth & Profit. It gives agents calculators to help their agencies project and plan for new business growth and profitability. The program is designed for a five-year cycle. Current PIA members are able to access the tool on a newly redesigned website: Agency Growth-Profit.

Since results from these calculator tools are not static, agencies can create “what if” scenarios and improve their bottomline results by adjusting factors including improved retention, increased sales goals and ramping up account-rounding activities.

REAL NUMBERS = REAL RESULTS

Agencies are then offered three turn-key approaches for use in their own agencies which have been developed by The PIA Partnership based on survey input received from PIA leaders earlier this year: • Asking Customers the Right Questions is built on a proven strategy successful agencies are already using to enhance both growth and profitability.

• Claim Alert Lead Program focuses on both retention and lead generation.

It is directed toward an agency’s current homeowners clients.

PIA National President John G. Lee said, “This latest tool is of great value to PIA members as they seek new ways to ensure their success. The cutting-edge projects of The PIA Partnership are critical to the success of both the companies that market their products through the American Agency System and the PIA agents who represent those companies.”

Working with the new tool begins with calculators created for use with Microsoft Excel to help insure ease of access and adaptability

• Conducting a Young Driver Seminar is designed to help enhance an agency’s overall image not only with their current customers, but potentially with everyone in their community.

Each of these approaches is comprehensive and includes a series of guides and step-by-step instructions for implementation by an agency.

Closing the Gap for Growth and Profitability is adaptable and customizable

December 2013 | Main Street Industry News | www.pianeia.com | 12

Top Stories from start to finish. By first using an agency’s own current results and projections, agency principals identify areas of opportunity. They’re then able to use the tools and approaches that are right for them and their agency. These new Partnership tools are designed to help agencies close the gap — to maximize growth and profit.

Find your sweet spot for Growth & Profit ...

STEP ONE Take a snapshot of your agency with our calculators

STEP TWO

Identify areas of opportunity for growth

STEP THREE

Use our turnkey tools to get there

Meanwhile, The PIA Partnership has announced its annual project for 2014.

Agency Touch Points — The Voice of the Customer: Commercial Lines will conduct a nationwide survey of commercial lines customers to determine their buying preferences. It will be the follow-up to The PIA Partnership’s groundbreaking 2012 study, The Voice of the Customer: Personal Lines.

PIA National Vice President/Treasurer Rob Hansen is a representative of the PIA National Executive Committee to The PIA Partnership. He said, “The enthusiasm of our carrier partners for the important work of The PIA Partnership has produced groundbreaking research and the development of tools that provide atthe-desktop value to PIA agency principals and the carriers they represent. PIA greatly appreciates the commitment of our carrier partners and we look forward to many more years of close collaboration.” n

Closing the Gap for Growth and Profitability is adaptable and customizable from start to finish. These new Partnership tools are designed to help agencies close the gap – to maximize growth and profit.

Available online at http://agency-growth-profit.com

The PIA Partnership is a group of insurance companies that share resources and work closely with PIA National to conduct research and develop tools and resources designed to benefit professional independent insurance agents.

Current PIA Partnership companies include: Central Insurance Cos. Encompass Insurance Erie Insurance Hanover Insurance Group Harleysville Insurance Liberty Mutual Insurance MetLife Auto & Home

Motorists Insurance Group Progressive Insurance Selective Insurance Group State Auto Group The Hartford Travelers

December 2013 | Main Street Industry News |www.pianeia.com| 13

Top Stories

ObamaCare Meeting of the Minds

NAIC and U.S. Treasury Meet

U.S. Treasury Secretary Jack Lew

It was a meeting of the minds that started when President Obama invited the leadership of the National Association of Insurance Commissioners (NAIC) to the White House. His purpose was to get the NAIC to assist in getting states and insurers to help him keep his pre-ObamaCare promise that if people liked their insurance they could keep their insurance.

The meeting didn’t get the president what he wanted but it yielded an interesting President & Louisiana conversation Insurance Commissioner between Obama Jim Donelon and NAIC President and Louisiana Insurance Commissioner Jim Donelon. He asked Obama to support state regulation of insurance and discussed problems some states

are having with the enforcement of the BiggertWaters flood insurance reforms.

The president agreed to connect them with U.S. Treasury Secretary Jack Lew who oversees the Federal Insurance Office (FIO) who is charged with reporting to Congress and the administration on the modernization of insurance.

That report — two years late — was just filed and suggested a hybrid regulation of insurance between the federal government and state insurance commissioners.

President Obama arranged a meeting. Last week 18 state insurance commissioners who are NAIC executive members and the association’s CEO former Sen. Ben Nelson met with Lew. The goal of the meeting is the modernization of insurance regulation and to give states a voice in the FIO’s international regulatory work.

After the meeting Lew’s department issued a release saying the Treasury Secretary pushed the FIO’s role in that suggested hybrid and the common interests of the federal government and states in insurance regulation. He also insisted on safeguards for the nation’s financial system where insurance is concerned.

Florida Insurance Commissioner Kevin McCarthy attended. He is a former president of the NAIC. McCarty said things went “very well” and he

December 2013 | Main Street Industry News | www.pianeia.com | 14

Top Stories said Lew is supportive of state-based regulation.

However, the secretary stressed the FIO’s leadership in efforts to standardize insurance matters internationally. That power is given to it via the Dodd-Frank Act. He said the FIO — along with other nations — is shooting for higher global insurance standards. The commissioners are concerned with regulations being pushed upon them by the international Federal Stability Board (FSB) and the International Association of Insurance Supervisors (IAIS) without being able to help shape them.

As an aside, PIA National believes the Treasury and the FIO should be more concerned with regulations in the U.S. and supporting U.S. insurance interests than international interests.

Lew countered the commissioner’s point

Agents & Brokers

ObamaCare Here’s a story with a twist. For the last several months PIA National has been urging the Department of Health and Human Services (HHS) to give consumers a way to contact independent agents through www.healthcare.gov.

Those requests were ignored.

Last week, HHS asked PIA for help in referring consumers to independent agents and brokers in states utilizing the federal government’s exchange. PIA National is currently working with both HHS and PIA affiliates on the details of this referral opportunity.

It doesn’t stop there.

New Hampshire Democrat Sen. Jeanne Shaheen has called on Department of Health and Human Services (HHS) Secretary Kathleen

of view saying giving states a voice is not something he can unilaterally do.

After the meeting, Donelon said, “We are extremely pleased with the Secretary’s statement of strong support for the state-based regulatory system.

The focus of the meeting was on significant international developments, including the ongoing EU/U.S. dialogue and Solvency II, the inclusion of state regulators in the work of the (FSB), and efforts to develop a global capital standard.”

The statement issued after the meeting by the Treasury said that the Treasury and states need to work together to modernize insurance regulation at the state level. It also noted that more engagement between the NAIC and the Treasury on these issues will be needed in the future.

Nelson also issued a news release and said the NAIC looks forward to continued dialogue. n

Sebelius to make it easier for agents and brokers to help their clients secure health insurance under the Affordable Care Act (ACA).

In a letter to Sebelius, she said it should be made easier for consumers to find agents and brokers on the government’s healthcare website www.healthcare.gov.

She wrote: “Unfortunately, insurance agents and brokers are experiencing barriers that prohibit them from successfully helping consumers sign up for health insurance online, by mail or through call centers. Making meaningful progress in addressing their concerns is critically important to ensuring robust enrollment in healthcare.gov, and I encourage the Administration to address the issues facing agents and brokers.”

Sen. Shaheen added that “contact information for local agent and broker resources should be easily accessible for those shopping on the website.”

PIA National is pleased with Sen. Shaheen’s efforts and says this is important to you.

December 2013 | Main Street Industry News |www.pianeia.com| 15

Top Stories “PIA National has been urging HHS for several months to give consumers a way to contact independent agents through healthcare.gov.

Last week, after lengthy conversations with HHS, they agreed to do so. HHS requested information from PIA to help them refer consumers to independent agents who sell health insurance. PIA National is currently working with PIA affiliates on the details of this referral opportunity.”

Meanwhile, the concept of using agents and brokers to help with the purchase of health insurance on the federal government’s exchange is working for the people of Pennsylvania. They have discovered there’s more than one way to sign up for health insurance under the Affordable Care Act (ACA). And they don’t have to deal with the federal government’s problem-plagued website and can go directly to their local Main Street agent or broker.

The newspaper the Allentown Morning Call published an excellent article — Want Obamacare? Brokers, insurance agents can help — that points out that agents and brokers

ObamaCare Two Interesting Polls LIMRA — the Life Insurance and Market Research Association — did a study of how consumers are reacting to the Affordable Care Act’s federal government health exchange and the independent state exchanges. The group found that 60% of those who have used the exchanges looked for assistance when making their purchase.

Half surveyed who are planning on shopping for insurance — or who are not sure they’re going to shop for insurance — think they’ll need help with the process once they start. Here are some details:

can do more for consumers than governmentpaid healthcare navigators. “Unlike ACA navigators, they can offer advice on what level of insurance and which company policies work best based on a person’s income and health care needs,” the article said.

University of Pennsylvania health law professor Tom Baker is quoted in the article. He said “the Obama administration did not embrace insurance professionals, questioning whether they would act in consumers’ best interest.”

The logjam of consumers looking for help changed that. “As they realized the complexity of rolling out the health insurance exchanges, they have become more open to encouraging brokers to assist consumers,” he said.

Tim Jost — a health law professor at Washington & Lee University in Lexington, Virginia — agrees. “Certainly, there are thousands and thousands of brokers out there compared to a relative handful of [ACA] navigators. They are one of the key parts of the strategy to get people enrolled.” n

• 59% think they’ll need help finding a costeffective plan.

• Over half think they’ll need help determining eligibility and with understanding their insurance options.

• Over half will want help determining the plan that will meet their needs.

• That same group also wants to know how all this works.

LIMRA’s Yuliya Babushkina — a senior analyst — said, “Obviously, the highly publicized technical challenges experienced by the online exchanges influenced some Americans' views on the level of help they will need and deterred others from

December 2013 | Main Street Industry News | www.pianeia.com | 16

Top Stories shopping and purchasing health insurance at all.

Our study found that more than a quarter of the targeted market — uninsured consumers — said they did not plan to shop at the exchanges, citing cost as the number one reason.”

spawned by the Affordable Care Act. The poll asked the uninsured if ObamaCare is going to create a better system of health care in the United States. They were given three choices: better, worse and no change.

About 20% of the uninsured surveyed said they aren’t going to shop online at either the federal government’s exchange or a state exchange.

The reasons:

Each choice received an equal number of responses.

• They don’t know enough about the insurance marketplace.

• 21% said they will access health insurance somewhere else.

Babushkina said the study found that those currently with health insurance are more likely to seek help when shopping than an uninsured shopper. “We believe those who have experience with health insurance better recognize the nuances within health insurance and are more interested to ensure the plan they choose offers the best value and coverage. In addition, uninsured individuals, who often are the least knowledgeable about how health insurance works — including such cost considerations as deductible and plan coverage — may not recognize how much help they may need.”

Looking at the federal and state government exchanges:

The poll also found a high number — 54% — of the uninsured say they are confused about the law. And only 23% think the quality of health care they’re going to get will be better.

• 54% say they’ll purchase health insurance.

• Affordability is not the most mentioned reason.

• They aren’t buying because insurance is good to have, but because they must under the law.

• A big percentage say the cost of health insurance is too high.

• 59% think purchasing that insurance will be a financial hardship.

A lot of people in the survey said they are not going to purchase insurance: • 50% said they’re not buying because it is too expensive.

• 7% who shopped the first two weeks of October actually purchased health insurance.

• 29% object to the coverage requirement by the government.

• Not surprisingly 80% say they attempted to shop but were unable to get on the exchange for technical reasons.

• 77% of the uninsured hate the individual mandate.

• 60% say they’ll get around to it before the March 31st deadline.

• 68% of the insured hate the individual mandate. n

A New York Times/CBS poll says the uninsured — and the insured — are unhappy with and do not support the exchange system December 2013 | Main Street Industry News |www.pianeia.com| 17

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Top Stories

Conning

The Independent Agency Model Still Works Conning says 12 of 18 personal lines insurers have outperformed their directwriter peers in growth and profitability. The Conning report is called Growth and Profit Leaders in Personal Lines Insurance. The negative is the growth in direct channels has come at the expense of independent agents and brokers.

“The flexibility of the independent-agency channel is well suited to the rapid growth of these companies,” Conning said in the report.

The Conning report contradicts a study

by McKinsey and Co. called A Flawed Premise Wrapped in a Faulty Analysis. It argued the value provided by independent agents is diminishing. Leading PIA agents strongly disputed the McKinsey study with a series of press statements and an article in National Underwriter.

Conning notes that the most common channel for companies in its “growth and profit leader group” was the independentagency channel. The firm added that the channel allows small and mid-sized insurers “to accommodate growth without requiring the large fixed-cost base of a direct-response organization.”

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 high-quality, 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.

PIA SERVICES GROUP INSURANCE FUND

*PIA National membership, when required, must be current at all times

For more information about the PIA Trust Business Overhead Expense Insurance Plan, please contact your local PIA Affiliate or call the Plan Administrator at 1-800-336-4759. Additional information is also available on-line at www.piatrust.com.

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, ME 04112-8828, under Policy Form ADI-4001-A (UIC).

Insurance Program Administered by Lockton Risk Services.

Annual Holiday Party PIA NE IA Events

December 3, 2013 Professional Insurance Agents of NE IA had their Annual Holiday Party

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PIA NE IA Events

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PIA NE IA Events

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PIA NE IA Events

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PIA NE IA Events

Upcoming

Events Calendar 2013-2014 For information and to register Click Here or call (402) 392-1611.

Date

Event

State

Time

December 2, 2013

Business Auto Coverages

IA

Webinar: 12:00PM - 3:00PM

December 3, 2013

2013 PIA Annual Holiday Party

Omaha

Champions Run

December 10, 2013

Patches for the Imperfect Policy - Home, Work & Auto Edition

IA

Webinar: 8:00AM - 11:00AM

December 17, 2013

Changes to the Homeowners Program

IA

Webinar: 10:00AM - 12:00PM

December 20, 2013

Ethics for Insurance Professionals

IA

Webinar: 8:00AM - 11:00AM

January 13, 2014

Business Auto Coverages

IA

Webinar: 12:00PM - 3:00PM

January 14, 2014

Business Income - How Much is Enough?

IA

Webinar: 10:00AM - 12:00PM

January 15, 2014

Waivers of Subrogation/Indemnity/Certificates

IA

Webinar: 8:00AM - 11:00AM

January 16, 2014

National Health Care Reform

IA

Webinar: 12:00PM - 3:00PM

January 24, 2014

Seven Ways to get Sued and How to Avoid Them

NE

Webinar: 10:00AM - 12:00PM

January 29, 2014

It's Personal: Home and Auto Exposures your Insured Won't Tell You

NE/IA

Webinar: 12:00PM - 3:00PM

January 30, 2014

Ethics for Insurance Professionals

NE/IA

Webinar: 12:00PM - 3:00PM

February 3, 2014

National Health Care Reform

NE/IA

Webinar: 8:00AM - 11:00AM

February 10, 2014

Ethics for Insurance Professionals

NE/IA

Webinar: 8:00AM - 11:00AM

February 10, 2014

BIP(idy), BOP(idy), Boo(ze): Turning 3 Mundane Coverages into Magic

NE

Webinar: 12:00PM - 3:00PM

February 11, 2014

CPSR: Commercial Property

NE

Dusters/Columbus

February 12, 2014

Changes to the Homeowners Program

IA

Webinar: 8:00AM - 10:00AM

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PIA NE IA Events

February 13, 2014

CISR: Commercial Casualty 1

Des Moines

Hilton Garden Inn Des Moines/Urbandale

February 18, 2014

CYBERTECH- Recognizing and Insuring Electronic Risk

NE

Webinar: 8:00AM - 11:00AM

March 6, 2014

CISR: Commercial Casualty 2

Davenport

Saint Ambrose University

March 7, 2014

National Health Care Reform

NE/IA

Webinar: 12:00PM - 3:00PM

March 20, 2014

Waivers of Subrogation/Indemnity/Certificates

NE/IA

Webinar: 12:00PM - 3:00PM

March 20, 2014

CISR: Insuring Commercial Property

Marion

Kirkwood Training Center

March 24, 2014

It's Personal: Home and Auto Exposures your Insured Won't Tell You

NE/IA

Webinar: 8:00AM - 11:00AM

March 25, 2014

Business Income - How Much is Enough?

NE/IA

Webinar: 10:00AM - 12:00PM

March 26, 2014

Ethics for Insurance Professionals

NE/IA

Webinar: 8:00AM - 11:00AM

April 3, 2014

Changes to the Homeowners Program

Iowa

Webinar: 10:00AM - 12:00PM

April 9, 2014

CISR: Agency Operations

Des Moines

Hilton Garden Inn Des Moines/Urbandale

April 9, 2014

Seven Ways to get Sued and How to Avoid Them

Nebraska

Webinar: 12:00PM - 3:00PM

April 10, 2014

CPIA 1: Position for Success

Omaha

Omaha Marriott Hotel

April 14, 2014

CYBERTECH- Recognizing and Insuring Electronic Risk

NE/IA

Webinar: 8:00AM - 11:00AM

April 15, 2014

Ethics for Insurance Professionals

NE/IA

Webinar: 8:00AM - 11:00AM

April 16, 2014

Business Auto Coverages

IA

Webinar: 8:00AM - 11:00AM

April 16, 2014

Patches for the Imperfect Policy - Home, Work & Auto Edition

IA

Webinar: 12:00PM - 3:00PM

April 22, 2014

BIP(idy), BOP(idy), Boo(ze): Turning 3 Mundane Coverages into Magic

NE/IA

Webinar: 8:00AM - 11:00AM

April 23, 2014

National Health Care Reform

NE/IA

Webinar: 8:00AM - 11:00AM

April 29, 2014

CPSR: Systems, Operations & Procedures

Kearney

Holiday Inn Express

May 6, 2014

CISR: William T. Hold: Advanced Learning Seminar

Marion

Kirkwood Training Center

May 7, 2014

CISR: Personal Lines Miscellaneous

Des Moines

Hilton Garden Inn Des Moines/Urbandale

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PIA NE IA Events May 8, 2014

CPIA 1: Position for Success

Des Moines

Hilton Garden Inn Des Moines/Urbandale

May 12, 2014

E&O and the Legal & Ethical Duties of Agents/ Brokers

NE

Webinar: 8:00AM - 11:00AM

May 15, 2014

Waivers of Subrogation/Indemnity/Certificates

NE/IA

Webinar: 8:00AM - 11:00AM

May 19, 2014

Ethics for Insurance Professionals

NE/IA

Webinar: 12:00PM - 3:00PM

May 20, 2014

National Health Care Reform

NE/IA

Webinar: 12:00PM - 3:00PM

May 21, 2014

CISR: Insuring Commercial Property

Davenport

Saint Ambrose University

May 21, 2014

Social Networking: OMG or E&O?

NE/IA

Webinar: 12:00PM - 3:00PM

May 27, 2014

Business Income - How Much is Enough?

NE/IA

Webinar: 10:00AM - 12:00PM

May 29, 2014

It's Personal: Home and Auto Exposures your Insured Won't Tell You

NE/IA

Webinar: 8:00AM - 11:00AM

June 3, 2014

CPIA 2: Implement for Success

Omaha

Omaha Marriott Hotel

June 12, 2014

CISR: Insuring Commercial Property

West Des Moines

LaMair - Mulock Condon Insurance (LMC)

June 26, 2014

CISR: Agency Operations

Marion

Kirkwood Training Center

July 10, 2014

CISR: Insuring Personal Auto Exposures

Des Moines

Hilton Garden Inn Des Moines/Urbandale

July 17, 2014

CISR: Personal Lines Miscellaneous

Davenport

Saint Ambrose University

July 22, 2014

CPSR: Residential Property

Columbus

Dusters

August 6, 2014

CISR: Commercial Casualty 2

Marion

Kirkwood Training Center

August 12, 2014

CPIA 2: Implement for Success

Des Moines

Hilton Garden Inn Des Moines/Urbandale

August 13, 2014

CPIA 3: Sustain Success

Omaha

Omaha Marriott Hotel

August 21, 2014

CISR: William T. Hold: Advanced Learning Seminar

Des Moines

Hilton Garden Inn Des Moines/Urbandale

September 10, 2014

CISR: Insuring Personal Residential Property

Des Moines

Hilton Garden Inn Des Moines/Urbandale

September 24, 2014

CISR: Agency Operations

Davenport

Saint Ambrose University

September 25, 2014

CISR: Personal Lines Miscellaneous

Marion

Kirkwood Training Center

October 9, 2014

CISR: Commercial Casualty 2

Des Moines

Hilton Garden Inn Des Moines/Urbandale

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PIA NE IA Events October 23, 2014

CISR: Dynamics of Service

Marion

Kirkwood Training Center

October 29, 2014

CISR: Insuring Personal Residential Property

Davenport

Saint Ambrose University

November 5, 2014

CISR: Insuring Commercial Property

West Des Moines

LaMair - Mulock Condon Insurance (LMC)

November 6, 2014

CISR: Commercial Casualty 1

Marion

Kirkwood Training Center

November 11, 2014

CPIA 3: Sustain Success

Des Moines

Hilton Garden Inn Des Moines/Urbandale

November 18, 2014

CPSR: Commercial Casualty

Omaha

Omaha Marriott Hotel

Apr 21 - Jun 13, 2014

MERG: Commercial Lines Coverage Basics

Online

Online Course

Apr 21 - Jun 6, 2014

MERG: New Agency Employee Orientation

Online

Online Course

Apr 9 - 11, 2014

CIC: Personal Lines Institute

Lincoln

Holiday Inn Lincoln Downtown

Aug 18 - Oct 10, 2014

MERG: Commercial Lines Coverage Basics

Online

Online Course

Aug 18 - Oct 3, 2014

MERG: New Agency Employee Orientation

Online

Online Course

February 17 - April 11, 2014

MERG: Commercial Lines Coverage Basics

NE

Online Course

February 17 - April 4, 2014

MERG: New Agency Employee Orientation

NE

Online Course

February 17 - March 28, MERG: Delivering Quality Service (to the Customer 2014 and the Employer)

NE

Online Course

February 19-21, 2014

CIC: Commercial Property Institute

NE

Omaha Marriott Hotel

January 20 - February 28, 2014

MERG: Personal Lines Coverage Basics

NE

Online Course

January 20 - March 7, 2014

MERG: New Agency Employee Orientation

NE

Online Course

Jul 21 - Aug 29, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

Jul 21 - Sep 5, 2014

MERG: New Agency Employee Orientation

Online

Online Course

Jul 30 - Aug 1, 2014

CIC: Personal Lines Institute

West Des Moines

Holiday Inn Hotel & Suites

Jul 9 - 11, 2014

CIC: Commercial Casualty Institute

Omaha

Omaha Marriott Hotel

Jun 16 - Aug 1, 2014

MERG: New Agency Employee Orientation

Online

Online Course

Jun 16 - Aug 8, 2014

MERG: Commercial Lines Coverage Basics

Online

Online Course

Jun 16 - Jul 25, 2014

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

Online

Online Course

December 2013 | Main Street Industry News |www.pianeia.com| 27

PIA NE IA Events Jun 18 - 20, 2014

CIC: Commercial Property Institute

Cedar Rapids

DoubleTree Hilton

Mar 17 - Apr 25, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

Mar 17 - May 2, 2014

MERG: New Agency Employee Orientation

Online

Online Course

March 12 - 14, 2014

CIC: Agency Management Institute

IA

Holiday Inn Hotel & Suites

May 19 - Jul 4, 2014

MERG: New Agency Employee Orientation

Online

Online Course

May 19 - Jun 27, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

Nov 12 - 14, 2014

CIC: Life & Health Institute

West Des Moines

Holiday Inn Hotel & Suites

Nov 17 - Dec 26, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

Nov 17 - Jan 2, 2015

MERG: New Agency Employee Orientation

Online

Online Course

Oct 15 - 17, 2014

CIC: Agency Management Institute

Omaha

Omaha Marriott Hotel

Oct 20 - Dec 12, 2014

MERG: Commercial Lines Coverage Basics

Online

Online Course

Oct 20 - Dec 5, 2014

MERG: New Agency Employee Orientation

Online

Online Course

Oct 20 - Nov 28, 2014

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

Online

Online Course

Sep 10 - 12, 2014

CIC: Life & Health Institute

Lincoln

Holiday Inn Lincoln Downtown

Sep 15 - Oct 24, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

Sep 17 - 19, 2014

CIC: Commercial Casualty Institute

Cedar Rapids

DoubleTree Hilton

Sep 5 - Oct 31, 2014

MERG: New Agency Employee Orientation

Online

Online Course

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