Main Street Industry News - December 2017

ANNUAL HOLIDAY PARTY Benefiting

Toys for Tots

December 13, 2017 Page 15

INSIDE Tax Reform Talk — Senate Republicans, Trump, the People » 7 Mergers & Acquisitions — On a Smaller Scale » 11 Cyber Threat Non-Answers and a Possible Answer » 22 The New Cyber Nightmare — Holiday Shopping » 40

Cover Image: Angelo Mercado, Winter Wonderland!

December 2017 | Published Monthly

Utica National Customer Care Center Service and information at your fingertips — any day, any time of the day.

FEATURES OF THE SYSTEM

› › › ›

Account and billing information available 24 hours a day, 7 days a week Online payments accepted with same-day postings Review your claims history Access our Risk Management site, featuring: • Loss Control articles • Lessons Learned • E&O Tips

• Frequently Asked Questions • Ask The Expert • Library of training materials for insurance agents

REGISTERING IS EASY! 1.

1

Visit www.UticaCustomerCare.com and click the Login/Register link

2.

2

Complete registration. All you need to register is your account or policy number and ZIP code. Enter some basic information and create a secure User ID and Password to be used in future visits.

3.

3

Validate your account. We’ll send you an email notification of your registration and you follow the simple instructions to validate your new online account.

More service — more convenience — more information — whenever you need it, from Utica National.

Be sure to register and login today!

9-A-2507 Ed 12-15

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

Tax Reform Talk — Senate Republicans, Trump, the People | 7 Senate Republicans have begun negotiations with each other on a final tax reform plan. Majority Leader Mitch McConnell is targeting a full Senate vote this week. It may have already taken place.

California’s Wildfires — The Aftermath | 9 Cleanup has begun for the thousands of homes, businesses and other buildings destroyed in the devastating wildfires.

Do You Know What’s Really Happening in Your Agency? | 10 Today, probably more than ever, insurance agencies are conducting some degree of auditing.

Mergers & Acquisitions — On a Smaller Scale | 11 We keep hearing a lot about mergers and acquisitions and how this large company gobbled up that small, mid-sized or other large company.

The Soft Market, Storms, Fires & Insurance Pricing | 12 The quarterly joint report by ISO and the Property Casualty Insurers Association of America (PCI) said profits declined for P&C insurers in the first half of 2017.

Update: The Obama Administration-Labor Department Overtime Rule | 14 The Obama administration wanted major changes in the threshold for overtime-exempt employees.

J.D. Power — Insurers & Apps & Consumers | 16 The J.D. Power 2017 U.S. Auto Claims Satisfaction Study offers some interesting insights into how the public views insurance industry applications.

A Workplace Problem — Cheating Employees | 25 Whether you’re an employee or employed, this is something we all encounter. It’s the cheating employee.

The New Cyber Nightmare — Holiday Shopping | 40 Generali Global Assistance (GGA) keeps up on all things cyber. The company recently took a look at holiday shopping.

PIA NE IA EVENTS Annual Holiday Party - Benefiting Toys for Tots on December 13, 2017 | 15 Professional Insurance Agents Nebraska Iowa NEBRASKA - 2018 Scholarship Application | 28 Professional Insurance Agents Nebraska Iowa IOWA - 2018 Scholarship Application | 30 Upcoming Events Calendar 2017-18 | 32 Professional Insurance Agents NE IA and The National Alliance Iowa CIC & CISR Designation | 34 Professional Insurance Agents NE IA and The National Alliance Nebraska CIC and CRM Designation | 37

ADVERTISEMENTS

Special Report: Flood Insurance Reform — PIA National Unhappy | 17 The 21st Century Flood Reform Act has passed the House of Representatives. PIA National is not happy.

Cyber Threat Non-Answers and a Possible Answer | 22 The Federal Reserve Bank — like all other financial institutions and most businesses — worries about cyber attacks.

December 2017 | Main Street Industry News | www.pianeia.com | 4

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

52 MILLION 3,600 970 A C R E S.

A G E N T S.

CLAIMS PROFESSIONALS.

WE’VE GOT THIS.

Your clients trust you with their livelihood. That’s why crop insurance agents trust RCIS. As one of the nation’s leading crop insurance providers, now part of Zurich North America, RCIS aims to deliver outstanding claims handling, experience and technology.

Come grow with us. We’ve got this.

Contact an RCIS field representative or visit RCIS.COM. RCIC is an equal opportunity provider. The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the basis of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual's income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities). Some products not available in all states or counties.This is intended as a general description of certain types of insurance and services available to qualified customers provided solely for informational purposes. Coverage is underwritten in all states by Rural Community Insurance Company, Anoka, MN except in Montana where hail coverage is underwritten

by Tri-County Farmers Mutual Insurance Company, Malta, MT. Nothing herein should be construed as a solicitation, offer, advice, recommendation, or any other service with regard to any type of insurance product or services. Your policy is the contract that specifically and fully describes your coverage, terms and conditions. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy. Coverage may vary by state. Coverages and rates are subject to individual insured meeting our underwriting qualifications and product availability in applicable states.

RCIS is a registered trademark of Rural Community Insurance Company. © 2018 Rural Community Insurance Company. All rights reserved.

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

Joyce Royal (402) 392-1611 Joyce@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 Joyce Royal

TOP STORIES

Tax Reform Talk

Senate Republicans, Trump, the People Senate Republicans have begun negotiations with each other on a final tax reform plan. Majority Leader Mitch McConnell is targeting a full Senate vote this week. It may have already taken place.

Deal making and dickering will still produce something close to what was passed out of the Senate Finance Committee just before the Thanksgiving break. With a slim majority and a half-dozen Republican Senators not sure about the plan, the final push will be interesting.

Concerns of some Republicans in the Senate are the affordability of the plan, its likelihood of adding to the deficit and the provision in the Senate bill to do away with the Affordable Care Act’s individual mandate requiring all of us to have health insurance or be penalized.

Democrats continue to maintain the bill benefits big business and the rich.

Of most concern to most small businesses — like many of your businesses — is the passthrough business tax changes. Wisconsin Sen. Ron Johnson worries this is a huge hit to small business.

PIA National has the same concern. In its statement on tax reform, the association said: “PIA National supports a clear and simple tax code and reducing individual and corporate income tax rates for small businesses.

PIA National opposes tax provisions and regulations that impede small business growth.”

The pass-through business tax changes would appear to stifle that growth. Under the

proposals taxes for pass-through businesses would be about 30% and a huge hit for many.

Senate Finance Committee Chairman Sen. Orrin Hatch of Utah and his committee have met with the president and believe they can come up with a package that will merge easily with the House plan once it reaches a conference committee.

To emphasize their concerns the Democrats point to a Congressional Budget Office (CBO) analysis of the tax plan. The nonpartisan body found those earning $100,000 a year or more will benefit greatly while those under that figure will be worse off.

• By 2019 those earning less than $30,000 will begin losing money • By 2021 those earning less than $40,000 a year will begin losing money • By 2027 those earning $75,000 and under will begin losing money • Those with incomes of $100,000 or more will see no change or an actual tax cut

December 2017 | Main Street Industry News | www.pianeia.com | 7

TOP STORIES The CBO says the big reason the poor will take a hit is because of the repeal of the individual mandate. It found insurance premiums will rise and four million will lose health insurance by 2019 and 13 million will see it go away by 2027.

What do the people think? A Washington Post-ABC News poll taken October 29th through November 1st says the people aren’t exactly thrilled with the reforms.

Question: What kind of job do you think Trump is going on improving the federal tax system?

• Excellent/Good — 34% Breaking it down between excellent, good, not so good, poor:

• Favor the poor — 2% • Treat all people equally — 17% • No opinion — 7% Question: Generally speaking do you think of yourself as a: • Democrat — 31% • Republican — 23% • Independent — 38% • Other — 6% • No opinion — 2% Sources: MSN, The Hill, The Washington Post, PIA National

• Excellent — 10% • Good — 24% • Not so good/poor — 56% Breaking down not so good and poor: • Not so good — 22% • Poor — 34% • No opinion — 10% Question: Given what you’ve heard about or read about it, do you support or oppose Trump’s tax plan? Do you feel that way strongly or only somewhat?

• Support — 33% • Oppose — 50% Question: Do you think Trump’s proposals on cutting taxes favor the rich, favor the middle class, favor the poor, or treat all people equally?

• Favor the rich — 60% • Favor the middle class — 13% December 2017 | Main Street Industry News | www.pianeia.com | 8

TOP STORIES

California’s Wildfires

The Aftermath Cleanup has begun for the thousands of homes, businesses and other buildings destroyed in the devastating wildfires. Federal, state and local authorities are coordinating the work and cleanup is expected to be finished by early 2018.

The damage is unimaginable. It’s hard to wrap our heads around fires moving at unbelievable speed took the lives of 42 people and injured hundreds more. Others — 100,000 in all — barely escaped with their lives. Many had no time to pack anything and lost everything.

California Insurance Commissioner Dave Jones said 15 insurers have posted these claim statistics: • 10,016 residential properties that are partial losses • 4,712 residential properties that are total losses • 728 commercial property losses, which includes commercial businesses and multi-family (apartments) with four or more units • Over 3,200 personal auto losses • 91 commercial vehicle losses • 153 farm or agriculture equipment losses • 111 watercraft

185 more. Aon’s conclusion is it’ll end up as the most expensive insured wildfire event in history.

The California Department of Insurance said 19,000 residential, commercial and auto claims have been filed today and more than $3.3 billion has been paid out. That figure — Aon predicts — will rise.

What’s worrying authorities now is the rebuilding process. Many want stronger regulations about what can be built where and how buildings are built. The goal? When the next fire comes — and one will — the impacts of these fires can be avoided.

Or at the very least, minimized.

Researchers at the U.S. Forest Service and the University of Wisconsin say what happens after fires like this is urban growth that is even more dense than what was destroyed. This in spite of the fire risk.

The fires also did millions in damage to the area’s critical wine industry.

However, rebuilding will not be as quick as one would expect. A high percentage — 35% — of the rebuilds in California after a fire is five years.

Aon Benfield thinks eventually losses will hit $8 billion. The fire also killed 43 people and injured

Sources: Reinsurance News, Associated Press, Insurance Business America

December 2017 | Main Street Industry News | www.pianeia.com | 9

TOP STORIES

Do You Know What’s Really Happening in Your Agency?

by Curt Pearsall, CPCU, AIAF, CPIA, President, Pearsall Associates, Inc. and Special Consultant to the Utica National E&O Program

Today, probably more than ever, insurance agencies are conducting some degree of auditing. Agency management is keenly aware of the need to verify that the firm’s procedures are being followed consistently. In the errors and omissions (E&O) world, “consistency” is a fundamental word.

• Determine who will conduct the auditing.

The options are many, ranging from outsourcing, to a dedicated staff member, to a “peer-to-peer” approach. The latter might be the best approach to start with, where employees audit the work of their fellow employees.

• Identify a realistic number of files to audit.

For many agencies, the goal is 10% of the policy count. If this is not doable, pick a number, such as 10 files per quarter, per employee. Auditing at least quarterly is suggested.

Determine the exact audit questions with the potential responses being “yes,” “no,” or “n/a.”

Consider the following:

However, there are still many agencies that don’t believe they have the resources to dedicate to this important process. The best suggestion to those agencies is to at least start the process. You do not want to find out at the time of an E&O claim that your staff was “doing their own thing.”

• A new business exposure analysis checklist was completed.

Key steps to begin auditing

• A binder was issued within 24 hours of the binding of coverage.

• Have established procedures for processing new and renewal business.

If this is not something that your agency currently has in place, work with your staff to identify at least five key processes. This will provide the foundation to build on.

• The accepted proposal template was used.

• There was confirmation to the client of coverages they rejected.

• Upon receipt of the policy, it was reviewed and errors were identified.

• The policy was delivered in accordance with the agency’s expectations.

December 2017 | Main Street Industry News | www.pianeia.com | 10

TOP STORIES As the auditing process is ready to be introduced and implemented, meet with the staff to advise them of the purpose. The goal is to get their buy-in. Through a “softer” approach, the staff will realize that auditing is not only good, but also necessary. By identifying the issues in the files that did not get a passing grade, the agency will be able to develop the appropriate solutions. This could involve the need for further training on the expected way to handle a task. It could also involve tasks being performed. For example, the documentation for a task, such as an exposure analysis checklist, is not being placed in the proper spot in the agency system or in the document management system. It may also identify an employee who does not agree with the specific agency procedure.

• As the audit results are tabulated, hold a meeting involving the employee, the staff member who did the audits, and management. If appropriate, an action plan should be developed to address areas in need of correction. Through this approach, the agency will be able to determine progress as future quarterly audits are completed.

• Celebrate successes. The goal of auditing is not to be punitive although, unfortunately that may occur at some point. The goal is to improve toward a greater degree of consistency.

Tremendous benefits Strive to create good auditing habits. These habits will eventually become the norm in your agency. Don’t fear auditing. Some agencies become overwhelmed in the development of auditing and try to do it perfectly from the beginning. Even if your agency starts slowly, at least it has started. The benefits will be tremendous and the process can be refined over time.

Mergers & Acquisitions On a Smaller Scale We keep hearing a lot about mergers and acquisitions and how this large company gobbled up that small, mid-sized or other large company.

This year we are seeing record numbers of them.

Some of them are huge and running into the billions of dollars.

An interview we found on the online insurance news service, Insurance Business America with Rick Dennen of Oak Street Funding said not all acquisitions are of the mega-sale variety. In fact, Dennen — whose company provides financing for agencies entering into M&A territory — said a huge number of them are small agencies buying other small agencies.

Or it’s someone in the company buying from the owner or owners.

“We see this all the time. We see these smaller [M&A] deals — they’re just as prevalent. But it’s a friendly structure, and a succession way for these older guys to get out,” Dennen said.

His company’s focus is the middle and smaller market and loans ranging from $25,000 to $25 million. The big difference between the high-end loan and something much lower is — as noted earlier — friendliness. Smaller deals are often between family, friends or acquaintances.

“Most of it is succession stuff, when you’re dealing with the smaller [deals]. You might have someone in their 60s talking to someone in their 50s, and that 60-year-old is saying, ‘Look, I’m getting to that point where there’s still a lot of regulation, there’s a lot of change, I don’t want to update my technology and invest in the business, so let me sell it to you.

Give me 50, 60, 70% of the cash up front, and then I’ll transition the book to you over a three-year period, and you can pay me the remainder of three or four years’,” Dennen said.

He calls it, “sell it to a buddy and everyone is happy. It’s very friendly, smaller deals, as opposed to an [actual] M&A strategy.”

Source link: Insurance Business America

December 2017 | Main Street Industry News | www.pianeia.com | 11

TOP STORIES

The Soft Market, Storms, Fires & Insurance Pricing The quarterly joint report by ISO and the Property Casualty Insurers Association of America (PCI) said profits declined for P&C insurers in the first half of 2017.

The report’s — if we can call them that — highlights: • Net income — after taxes — dropped 29% to $15.5 billion when compared to the first half of 2016 • The annualized rate of return on policyholders surplus dropped 4.4% from 6.4% last year • The combined ratio fell to 100.7% from 99.7% a year ago • Underwriting losses were $4.5 billion in the first six months compared to $1.5 billion in 2016

• Policyholders surplus is at a record level $717 billion up from $709 billion last quarter and $708 billion in quarter four of 2016

Other highlights: • Premium growth is 4.1% compared to 3.1% in the first half of last year • Premium growth is $4 billion above the 10year average • Earned premiums rose 3.4% to $265.8 billion • LLAE jumped 5.7% to $194.3 billion • Underwriting expenses are up 1.6% to $75 billion • Policyholders dividends remained the same at $1 billion

December 2017 | Main Street Industry News | www.pianeia.com | 12

TOP STORIES Biggest concern of the report: • The underwriting loss is $4.5 billion • That is 3x the $1.5 billion loss of the first half of 2016 While the report is full of bad and neutral news, apparently nearly all commercial insurance lines are seeing renewal rate increases. That tidbit is courtesy of IVANS. • Commercial auto premium renewal rates jumped an average of 3.1% • General liability rates are up 1.8% • Umbrella rates rose 1.3% • Commercial property umbrella rates were up 1.3% • Commercial property rates themselves increased 2.8% • BOP policies are seeing a 3.6% jump The only line to see things in the negative is workers’ compensation. Rates fell in that line by 2.2% There’s another factor at play. Experts say we just experienced the worst hurricane season in decades. Will this drive us into a hard market? Probably not says a report issued by Bloomberg of some of insurance’s top CEOs.

Evan Greenberg, CEO, Chubb:

“I believe we are at the beginning of a firming price environment, driven by years of soft pricing that has resulted in inadequate rates in many classes. The magnitude of this year’s CAT losses, which on a worldwide aggregate basis was between a one-in-five and one-in-10 year industry event, simply adds to the pressure to return to pricing that produces an adequate risk-adjusted return.”

Dan Glaser, CEO, Marsh & McLennan:

“While there could be some movement in pricing in catastrophe-exposed areas in certain lines of coverage, the degree and sustainability of any changes remains uncertain. From our vantage point, too much is unknown about how losses will ultimately develop, how capital will react or how client buying patterns will change. ... Right now, it is just too early to tell.”

J. Patrick Gallagher Jr., CEO, Arthur J. Gallagher:

“…it appears there could be some modest hardening on U.S. property lines.”

J. Powell Brown, CEO, Brown & Brown:

“There continues to be a lot of capital across the insurance marketplace. However, the recent storms, fires and earthquakes may have implications on pricing in 2018. At the present time, we don’t have a clear view on the potential impact for next year, but there are a lot of discussions about rate increases for coastal properties. If there are proposed increases, which we think there will be, the question really is, will they stick?”

Gregory Hendrick, President of Property & Casualty, XL Group:

“We believe that all lines will be impacted from a pricing and terms and conditions perspective. ... We are starting to see rates on short-tail lines increasing to double-digit range, with loss impacted accounts seeing higher increases. ... While there is the normal competing view amongst underwriters, brokers and clients on the breadth and magnitude of the market change, we fully expect there to be more favorable trading conditions in 2018.”

Sources: Business Insurance, Bloomberg, Reinsurance News

December 2017 | Main Street Industry News | www.pianeia.com | 13

TOP STORIES

UPDATE The OBAMA AdministrationLabor Department Overtime Rule

The Obama administration wanted major changes in the threshold for overtime-exempt employees. A ruling from the U.S. Department of Labor in August of 2016 almost doubled what is currently in place. Under the ruling the increase goes from today’s $455 a week — or $23,660 annually — to $913 a week or $46,476 a year.

Court. That’s where we sit now. However, the department is run by the Trump administration.

It says once the case is on the court’s docket, a request will be made to hold the appeal in abeyance until the Labor Department “undertakes further rule-making to determine what the salary level should be.”

Business groups and organizations around the country responded instantly. So did 21 states.

They put their resources together and filed a suit that landed in a Texas federal court where U.S. District Judge Amos Mazzant issued an injunction and said the Labor Department’s rule has to be delayed.

Some find it odd that the business-focused Trump administration wants to explore this further. Richard Meneghello is an attorney with Portland, Oregon’s Fisher Phillips L.L.P. He says the answer is simple.

The Labor Department then appealed to the 5th U.S. Circuit Court of Appeals. But Mazzant made that appeal unnecessary when he later ruled that overtime ought to be based on duties and not salary.

When Mazzant made his decision the Labor Department appealed that to the 5th Circuit

“Even though the current administration may disagree with the previous administration on the merits of the rule in terms of how much the salary basis is increased for the overtime requirement, they don’t actually want to concede that they didn’t have the power to issue such a rule if they want to,” he said.

Source: Business Insurance

December 2017 | Main Street Industry News | www.pianeia.com | 14

Professional Insurance Agents NE IA Invites Members, Non-Members, Spouses, Guests & Staff to the

Annual Holiday Party Benefitting Toys for Tots

Wednesday, December 13, 2017 4:30 PM—8:30 PM Happy Hollow Country Club 1701 S. 105th Street Omaha, NE 68114

RSVP by December 4, 2017 See Back to Reply $20 per person Includes Drink Ticket & Heavy Hors D’oeuvres Please bring a new, unwrapped gift.

We will be accepting your Toys for Tots donation.

Mem

TOP STORIES When it comes to claims satisfaction, here is how J.D. Power rated the companies. All numbers are based on a 1,000 point scale. The industry average is 858 and just one for profit company — Amica Mutual — is in the power rating 5 echelon.

J.D. Power

Insurers & Apps & Consumers The J.D. Power 2017 U.S. Auto Claims Satisfaction Study offers some interesting insights into how the public views insurance industry applications. The report found that consumers — with significant advertising and the establishment of digital purchase channels on the part of insurers — don’t seem to want to use them for claims.

They prefer an adjuster on the phone — or in person — when filing one.

22% will begin such communication online Just 9% — however — will give the company notice of a claim online or via an app David Pieffer of J.D. Powers found that odd considering how much insurers have spent to develop and market these claims programs.

“There are still certain areas of the claims process where the human touch is proving difficult to replace. As insurers continue down this path, it will be critical that communication with their customers is not negatively affected.”

The non-filing of a claim online isn’t based on age or comfort with technology. No age group is more comfortable with technology than millennials. Just 12% of them are likely to use digital channels to file a claim.

Plus, those who are using apps for claims are less satisfied with the results than those that don’t.

Power Rating 5 Amica Mutual...........................................901 Power Rating 4 Auto-Owners Insurance...........................892 Erie Insurance ..........................................881 The Hartford ............................................878 Hanover ...................................................871 GEICO..................................................... 870 MAPFRE Insurance .................................868 Power Rating 3 State Farm ...............................................865 Allstate .....................................................864 Nationwide ..............................................863 21st Century ............................................858 Industry Average: 858 American Family ......................................856 Esurance ..................................................854 Progressive ..............................................853 Auto Club of S. Cal ..................................851 Travelers ..................................................851 MetLife .....................................................850 Farmers ...................................................849 Automobile Club Group ...........................843 CSAA Insurance Group ...........................842 Power Rating 2 Liberty Mutual ..........................................841 Mercury ...................................................840 Country Financial ....................................837 Safeco .....................................................820 Source: PropertyCasualty360.com

December 2017 | Main Street Industry News | www.pianeia.com | 16

TOP STORIES

SPECIAL REPORT Flood Insurance Reform

PIA National Unhappy

The 21st Century Flood Reform Act has passed the House of Representatives. PIA National is not happy. Yes. The association wants reforms and even approves of much of what the act contains. There is — however — one part that is completely unacceptable and so unacceptable that the PIA opposes the bill going any farther.

In a statement the association said: “PIA opposed the bill over the provision that cuts the Write-Your-Own (WYO) reimbursement rate paid to insurance companies that participate in the NFIP by 3 percentage points.

The WYO reimbursement rate is the vehicle by which agents receive their commissions for selling NFIP policies. Many WYO carriers have stated that, for them to remain in the program, they will pass on the cut to agents through their commissions.”

Adding to the statement, PIA National Vice President of Government Relations Jon Gentile said, “H.R. 2874 includes some important reforms to the National Flood Insurance Program (NFIP), such as revamping mapping and mitigation programs and including a mechanism for consumers and communities to appeal FEMA decisions. Notably, PIA is pleased with the inclusion of language to incentivize the growth of the private flood market, which we strongly support.”

PIA wants an actuarily sound program but — in addition to agents — this version of the bill will consumers.

“One of the goals of reforming the NFIP is to increase sales of policies, especially preferred risk policies, to put the program on a firmer

December 2017 | Main Street Industry News | www.pianeia.com | 17

TOP STORIES financial footing. Reducing agent compensation undermines that goal by applying a disincentive for agents to increase sales. Such a cut will force agents who currently sell flood insurance to leave the program, because it will become prohibitively expensive for agents to continue to sell flood insurance, and it will discourage new agents from entering the NFIP policy market,” Gentile noted.

The PIA statement on the 21st Century Flood Reform Act added, “PIA will continue to work with Congress to provide a strong and robust protection for agent compensation, so consumers will have the expertise they need to navigate the NFIP, and the program itself can achieve the increased level of participation it requires to be financially strong.”

The focus now is on the Senate. It may act on the House bill or do one of its own. Then there is the option of doing nothing at all.

That’s not likely since the current National Flood Insurance Program (NFIP) expires on December 8th of this year.

Other insurance groups share PIA’s concerns.

Nat Wienecke is the senior vice president at the Property Casualty Insurers Association of America (PCI) said the bill does contain a lot of necessary reforms. And he likes the idea of opening the market to private insurers and that it will become more solvent.

However, “PCI, however, is concerned that the bill would make cuts to the Write Your Own companies that partner with FEMA to administer the NFIP,” Wienecke said. To emphasize the importance of that statement he said since 2004 the number of WYO insurers has fallen from 107 in 2004 to fewer than 70 today.

That’s a 35% drop.

NAMIC’s Jimi Grande agrees with the PCI and the PIA. “Cutting the reimbursement under the WYO program may make for good politics but it will ultimately only hurt the consumers that Congress claims to want to protect,” Grande said.

He pointed out that less than 10% of U.S. insurers are involved in the WYO program and this bill will make it even more costly for them to participate in the program and “will likely mean even fewer choices for the same consumers who benefit from competition in the market.”

As for the bill’s details, House Financial Services Committee Chairman and Texas Republican Rep. Jeb Hensarling said this truly is reform and will bring more private insurers into the flood insurance mix.

“There are a lot of good reforms in this bill for both taxpayers and ratepayers. It is an absolutely revolutionary reform that we can break open the government monopoly and bring in market competition, innovation, more affordable rates for so many,” Hensarling said.

Business groups and most taxpayer and insurance groups support the bill.

Democrats do not. Like the PIA, many in the Democrat Party think the bill will raise the cost of insurance to consumers and middle-income homeowners. They — however — go beyond PIA’s concerns and worry that higher premiums and surcharges mean fewer people are going to buy flood insurance.

Some environmental groups like what the House has passed but think the bill does not go far enough to protect the environment and hope the Senate will put even more reforms into this bill or into its own.

December 2017 | Main Street Industry News | www.pianeia.com | 18

TOP STORIES

Here’s what the bill does: • Brings more private insurers into the market • Reduces the cost to the NFIP of repetitive loss properties • Caps annual premium increases and surcharges • Grandfathers some properties from riskbased rates • Requires the Federal Emergency Management Agency (FEMA) to share flood loss data with private insurers • Permits WYO insurers to sell private policies • Improves flood mapping

Where PIA opposes the bill is in the WYO portion: • It drops the reimbursement to private insurers which means that cut will be passed onto agents in the form of reduced commissions • Limits the premiums on any residential property to $10,000 a year • This applies no matter what the value of the property is • Allows business to opt out of flood insurance requirements after a year • Permits local governments to create their own flood maps Hensarling said one of the biggest selling points of the bill is the mitigation of repetitive loss properties. “We have to realize if we’re going to make this program sustainable we cannot have one percent of the properties causing 25 percent of the losses. Ultimately, if all we do is rebuild the same properties in the same fashion in the same location, that is neither wise nor compassionate.”

Rep. Maxine Waters — the ranking Democrat on Hensarling’s committee — likes what Hensarling and Wisconsin Republican Rep. Sean Duffy are trying to do and their efforts toward bipartisanship. However, she — predictably these days when it comes to Democrat and Republican relationships — didn’t support the bill because she believes it hurts low and middle income homeowners.

“This bill will punish lower and middleclass Americans with increased premiums, surcharges, and reserve fund assessments.

In the wake of a historic hurricane season that devastated so many communities, it is unconscionable that we are considering a bill that would make flood insurance less affordable. We should be focusing on providing additional disaster relief and recovery after these devastating storms, not punishing these communities with higher premiums and surcharges,” Waters said.

Her main complaints are provisions that let businesses opt out of flood insurance mandates and that will impact coverage for homes with past damages that have exceeded three-times the replacement value. This — she says is the case — even if they are sold the new owners. “As borrowers lose NFIP coverage, and especially if alternative private coverage is not available or affordable, these properties will lose value and the risk of abandonment and/or foreclosure increases dramatically,” she added Florida Democrat Rep. Kathy Castor said the bill will “increase costs for many policyholders without providing the necessary resources.

Increasing rates will not address the solvency of NFIP and will actually worsen the burden on FEMA and taxpayers,” she said.

Duffy disagrees. “I hear my friends say, ‘you’re going to hurt homeowners, the rates are going to skyrocket.’ What? On average, for a year, the price of flood insurance, on average, will go up twenty dollars-less than two dollars a

December 2017 | Main Street Industry News | www.pianeia.com | 19

TOP STORIES month-and they’re screaming bloody murder about that?” he told his colleagues during the floor debate.

He did admit that properties that are highly subsidized will pay more for premiums but there is $1 billion in the bill to help more homeowners flood-proof their homes and to assist communities with flood mapping.

And then there’s the private market changes.

“We set up a private market. Now, you don’t have to take the private market, but you have an option to get a private plan that might have a better rate than the government offers you.

You have a choice. A choice. God forbid a choice. That gives you a better price. And by the way, when we get the private market in, we offload our risk to the private sector. When a disaster hits Texas or Florida, it’s not just the taxpayers that bear all the burden. We have

private companies in play. That’s a great thing.

This is a good bill. This is a bipartisan bill.

Let’s stand together and reform a program to help the homeowner and our national debt,” Duffy said.

What the bill does not do is directly address the NFIP’s debt. The program is now at its borrowing limit of $30 billion. However, some financial reforms are in the bill and the most important requires the NFIP to do an annual actuarial study to see if the agency is collecting enough revenue to cover expected long-term losses.

FEMA is also required to develop and maintain a reserve fund so it won’t have to borrow money from the Treasury to fund the program and to keep the NFIP from going deeper into debt.

Source: PIA National, Insurance Journal

BE WORRY FREE WITH IMT

We understand the importance of partnerships and take great pride in building strong, stable relationships with our agents and policyholders. Through experienced claims expertise and hightouch customer service, we are there when we are needed most.

Learn how you can represent IMT Insurance & Wadena Insurance at imtins.com/contact_us.

imtins.com | west des moines, iowa December 2017 | Main Street Industry News | www.pianeia.com | 20

What’s New?

What’s Not?

Now a billion dollar company . . . and still growing! (Sales passed the mark in 2016.)

Secure financial strength that comes from being a member of the Berkshire Hathaway family.

Nationwide geographical scope.

Our A+ (”Superior”) A.M. Best Company Rating.

An increasingly robust product suite that features Workers’ Compensation, Businessowner’s Policy, Commercial Auto, Umbrella, and Professional Liability coverage.

Average annual growth in premium in excess of 25% per year for the past five.

Broader appetite for select risks (including Total Insured Property Values as high as $50 million for certain industries and risks).

Ongoing product and service enhancements to win renewals and keep a high retention ratio.

Our focus on being data-driven and using business intelligence to gain a competitive edge.

Higher A.M. Best financial size (i.e., “X”).

A superior combined ratio that (according to A.M. Best) outperforms our peers.

Enhanced infrastructure to support growth.

Our commitment to distribution through independent agents!

Balancing Change with Continuity!

ST

W RO T

Berkshire Hathaway

GUARD

Insurance Companies

We have agency appointments available.

Go to www.guard.com/apply!

ILIT Y AB

H

G

TOP STORIES

NONANSWERS AND A POSSIBLE ANSWER The Federal Reserve Bank — like all other financial institutions and most businesses — worries about cyber attacks. The Fed’s senior associate director of supervision and regulation is Arthur Lindo.

Some see more regulation as the answer but Lindo says research by the Fed finds that’s not the answer.

“I don’t think the solution to the cybersecurity problem rests in regulation. We’re going to try a more flexible approach,” he said. Lindo did not say what the flexible approach entails.

Here’s how the Fed’s decision came about.

Republican Mike Crapo — who heads the Senate Banking Committee — responded to the Fed’s request to consider more regulations. The Fed and government departments issued an intent to add rules on cyber risk management standards for financial institutions.

December 2017 | Main Street Industry News | www.pianeia.com | 22

TOP STORIES we get the same questions from different regulators,” Gronberg said.

Thus, the idea was dropped.

With cyber attacks increasing at alarming rates, and if more rules and regulations are not the answer, then what do we do? Republican Rep. Tom Graves of Georgia and Arizona Democrat Rep. Kyrsten Sinema think businesses and individuals ought to have the right to hit back.

Even though security and legal experts are opposed, their bill is gaining traction. It amends a federal law passed in 1986 that prohibits access to someone’s computer without their specific authorization.

If passed — and it’s a long way from getting there — here’s what their bill will allow businesses to do in retaliation. The defensive measures will be limited but victims will: • Be able to leave their networks to attribute attacks • Be able to disrupt an attack • Be able to retrieve or destroy stolen data • Be able to track the behavior of the attacker Cyber security experts, industry groups and individual businesses looked over the proposed rules and said no. The contention of those opposing more rules is that there are already lots of rules in place for banks and other financial institutions to follow.

In fact, it’s a mess says JPMorgan Chase’s Kevin Gronberg. His company put a spread sheet together and it consists of 2,000 lines.

That shows — if anything — there’s an overlap and it may create more problems than it solves.

“We tried to put it all into a common language, so we can reply with the same answer when

• Be able to use beacon technology to find the physical location of the attacker Proponents — and the two congressmen — like the idea because it gives companies the power to monitor, identify and stop attackers targeting their systems. “The status quo is not acceptable anymore,” Graves said.

Their bill has now picked up seven bipartisan cosponsors including House Oversight and Government Reform Committee Chairman Rep. Trey Gowdy.

December 2017 | Main Street Industry News | www.pianeia.com | 23

TOP STORIES National Security Agency (NSA) Director Mike Rogers hates the idea. “My concern is, be leery of putting more gunfighters out on the street in the Wild West. As an individual tasked with protecting our networks, I’m thinking to myself, we’ve got enough cyber actors out there already,” he said.

One of his predecessors, Keith Alexander agrees. He thinks companies could start wars against each other which will just add to the problem.

Not so says Graves. He notes that he and Sinema have put plenty of controls in place to prevent vigilantism and other unintended consequences. Companies cannot destroy or damage data that doesn’t belong to them or that is stored on another person or entity’s computers.

But that doesn’t really work said Joseph Wolff who is a professor at Rochester Institute of Technology and fellow at the New America Cybersecurity Initiative. He said, “You’re talking about this idea that private actors, say mostly companies, are going to be able to know who is attacking them and know with enough certainty to be able to retaliate effectively.”

The problem is most hacks come through foreign actors who use an intermediary to do the attacking. “You’re not necessarily going after the people who initiated the attack. You could be going after somebody who is caught in the middle,” Wolff said.

And that says Washington D.C. lawyer and cyber expert Doug Henkin is the crux of the dilemma. “You’ve got to wonder whether it would be in the best interests of a company to do something like this, particularly if they had just been hacked and their systems were thus possibly vulnerable in ways they might not yet know that could actually be further exploited were they to go digging in presumably hostile systems,” he said.

Graves said critics aren’t really reading the bill.

He said controls are in place to limit damage and if engaging in an “active defense” a company has to let the FBI cyber crime unit know what it is doing before it can proceed.

“We’re trying to give them more additional tools to defend themselves,” Graves said.

That could be a positive says Heritage Foundation policy wonk David Inserra. “It turns a victim — a company that has been attacked — into a witness. That’s more information that our authorities can use to find and catch the offender,” Inserra said.

While the bill does have a long way to go before seeing the light of day, Graves said the White House and the Department of Justice are doing a review. “Cyber is one of the priorities of the administration, and they are very interested in what we are proposing here and the thought that has gone into this,” Graves added.

Sources: Insurance Journal, The Hill

December 2017 | Main Street Industry News | www.pianeia.com | 24

TOP STORIES

that cheating happens everywhere from the boardroom down to the lowest maintenance worker. You’ve seen the stories: • Wells Fargo’s insurance and account scandals • Volkswagon’s emission scandal • School districts faking standardized test scores • Researchers stretching facts We could cite more but you get the point.

Marie Mitchell said the purpose of the paper is to explain why it happens and how you can prevent it from happening to you. She said, “It’s the desire for self-protection that primarily causes employees to cheat. Employees want to look valuable and productive, especially if they think their job is at risk.”

A Workplace Problem Cheating Employees Whether you’re an employee or employed, this is something we all encounter. It’s the cheating employee. They’re the person who causes an equal amount of trouble for the boss and the co-worker.

Researchers Michael Baer of Arizona State University, Maureen Ambrose and Robert Folger of the University of Central Florida, Noel Palmer of the University of Nebraska-Kearney and Marie Mitchell of the University of Georgia took a look at cheating employees and wrote a paper called Cheating Under Pressure: A Self-Protection Model of Workplace Cheating Behavior.

Their paper was published in the Journal of Applied Psychology and concludes

In other words, some employees feel their job depends on high marks so they “fudge” to stay employed.

“We’ve seen it in finance, we’ve seen it with educators and test scores, we’ve seen it in sports, it’s everywhere. Performance pressure elicits cheating when employees feel threatened. Even though there is the potential of getting a good payoff if they heighten their performance, there’s also significant awareness that if they don’t, their job is going to be at risk,” Mitchell noted.

Sadly she says these employees don’t think they can meet an employer’s expectations any other way. It causes them to do what is beneficial to them no matter who it harms — and that includes co-workers.

“Angry and self-serving employees turn to cheating to meet performance demands.

It’s understandable. There’s a cycle in which

December 2017 | Main Street Industry News | www.pianeia.com | 25

TOP STORIES nothing is ever good enough today. Even if you set records last month, you may get told to break them again this month. People get angry about that, and their self-protective reflex is elicited almost subconsciously,” Mitchell said.

Mitchell said managers need to understand the potential threat to the workplace and other employees, and how to prevent it from happening. It starts with coaching employees that their performance goals are not meant as a threat.

“It could be that if you pair performance pressure with ethical standards and give employees the right kind of assurance within the workplace, it can actually motivate great performance. There have been many scholars who have argued that you need to stretch your employees because it motivates them, makes them step outside of their normal boxes and be more creative. Our research says that it could, but it also might cause them to act unethically.”

Source: Insurance Journal

Help Build Your Family’s Financial Future With

PIA Trust Insurance Plans INSURANCE PLANS DESIGNED WITH LOCAL AGENTS IN MIND As a PIA Member* serving Main Street America, you and your employees have access to a variety of highquality, competitively priced insurance plans.

Plans available include:  Basic Term Life**  Voluntary Term Life  Dependent Term Life  Hospital Indemnity  Short & Long Term Disability  Business Overhead Expense  Accidental Death & Dismemberment

PIA SERVICES GROUP INSURANCE FUND

*PIA National membership, when required, must be current at all times. **Only available if 100% employer paid and if the employer and 100% of the employees enroll.

No medical underwriting necessary up to guaranteed issue limits.

For more information about PIA Trust Insurance Plans, 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.

Policies or provisions may vary or be unavailable in some states. Policies have exclusions or limitations which may affect any benefits payable.

All coverages underwritten by Unimerica Insurance Company, Association Administrative Address, P.O. Box 17828, Portland, ME 04112-8828.

Insurance Program Administered by Lockton Affinity, LLC.

December 2017 | Main Street Industry News | www.pianeia.com | 26

Utica’s Agents’ Errors & Omissions Program is all about…

INTEREST-FREE FINANCING

PIA of Nebraska & Iowa (402) 392-1611 www.pianeia.com

Professional Insurance Agents Nebraska Iowa NEBRASKA 2018 Scholarship Application

Scholarship Value $310 NE—$315 IA

Scholarship Value $115

Scholarship Value $115 member/$140 non-member

Must be working within the P&C business.

Must be working within the P&C business.

Must be working within the P&C business.

Recipient must desire to complete all five CIC courses towards CIC designation. Scholarship is not limited to first time participants.

Recipient must desire to complete all five CISR courses towards CISR designation. Scholarship is not limited to first time participants.

Applicants from any NE or IA agency or company are eligible.

Applicants from any NE or IA agency or company are eligible.

Recipient must desire to complete all three Insurance Success Seminars towards CPIA designation. Scholarship is not limited to first time participants.

Must register for CIC class of choice and pay registration fee. PIA will reimburse scholarship value after exam is taken. Reimbursement is not contingent upon exam results. May not be applied to Ruble Graduate Seminar.

Must register for CISR class of choice and pay registration fee.

PIA will reimburse $115 after exam is taken. Reimbursement is not contingent upon exam results.

CIC Course Fees NE: $415 credit card/ $405 check IA: $420 credit card/$410 check

Professional Insurance Agents Nebraska Iowa continually educates members of the insurance industry by providing institutes and courses. Through the PIANEIA scholarship program, all levels of insurance professionals are financially supported in their efforts to advance their knowledge and designations.

Applicants from any NE or IA agency or company are eligible.

Must register for CPIA class of choice and pay registration fee.

PIA will reimburse $115 after class is completed. No exam for designation.

CISR IA Course Fee $159 credit card/ $155 check

CPIA NE IA Course Fee $155 member/$140 non-member

Applicants will be evaluated on their commitment to achieving designations.

Submissions accepted via MAIL: PIANEIA 920 S. 107th Avenue, Suite 305 Omaha, NE 68114

Application Deadline January 31, 2018

EMAIL: frontdesk@pianeia.com FAX: 402 392-2228

For questions, call 402 392-1611. Applicants will be notified via email by February 28, 2018.

Name and Designations_________________________________________________________________ Agency or Company____________________________________________________________________ Agency or Company Address_____________________________________________________________ City, State, Zip_________________________________________________________________________ Agency or Company Phone Number _______________________________________________________ Applicant’s Email Address________________________________________________________________ Length of time in insurance industry_______________________________________________________ Please provide a description of the work, experience, commitment to professional advancement or other reasons for consideration. Limit to one page or less. May use space below or add additional sheets of paper if necessary. ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ The institute, class or seminar that I would like to attend or have already registered for is: Topic____________________________________________ Date_____________________________________________ Location_________________________________________ To View the 2018 Education Calendar, Please Visit www.pianeia.com

Professional Insurance Agents Nebraska Iowa IOWA 2018 Scholarship Application

Scholarship Value $310 NE—$315 IA

Scholarship Value $115

Scholarship Value $115 member/$140 non-member

Must be working within the P&C business.

Must be working within the P&C business.

Must be working within the P&C business.

Recipient must desire to complete all five CIC courses towards CIC designation. Scholarship is not limited to first time participants.

Recipient must desire to complete all five CISR courses towards CISR designation. Scholarship is not limited to first time participants.

Applicants from any NE or IA agency or company are eligible.

Applicants from any NE or IA agency or company are eligible.

Recipient must desire to complete all three Insurance Success Seminars towards CPIA designation. Scholarship is not limited to first time participants.

Must register for CIC class of choice and pay registration fee. PIA will reimburse scholarship value after exam is taken. Reimbursement is not contingent upon exam results. May not be applied to Ruble Graduate Seminar.

Must register for CISR class of choice and pay registration fee.

PIA will reimburse $115 after exam is taken. Reimbursement is not contingent upon exam results.

CIC Course Fees NE: $415 credit card/ $405 check IA: $420 credit card/$410 check

Professional Insurance Agents Nebraska Iowa continually educates members of the insurance industry by providing institutes and courses. Through the PIANEIA scholarship program, all levels of insurance professionals are financially supported in their efforts to advance their knowledge and designations.

Applicants from any NE or IA agency or company are eligible.

Must register for CPIA class of choice and pay registration fee.

PIA will reimburse $115 after class is completed. No exam for designation.

CISR IA Course Fee $159 credit card/ $155 check

CPIA NE IA Course Fee $155 member/$140 non-member

Applicants will be evaluated on their commitment to achieving designations.

Submissions accepted via MAIL: PIANEIA 920 S. 107th Avenue, Suite 305 Omaha, NE 68114

Application Deadline January 31, 2018

EMAIL: frontdesk@pianeia.com FAX: 402 392-2228

For questions, call 402 392-1611. Applicants will be notified via email by February 28, 2018.

December 2017 | Main Street Industry News | www.pianeia.com | 30

Name and Designations_________________________________________________________________ Agency or Company____________________________________________________________________ Agency or Company Address_____________________________________________________________ City, State, Zip_________________________________________________________________________ Agency or Company Phone Number _______________________________________________________ Applicant’s Email Address________________________________________________________________ Length of time in insurance industry_______________________________________________________ Please provide a description of the work, experience, commitment to professional advancement or other reasons for consideration. Limit to one page or less. May use space below or add additional sheets of paper if necessary. ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ The institute, class or seminar that I would like to attend or have already registered for is: Topic____________________________________________ Date_____________________________________________ Location_________________________________________ To View the 2018 Education Calendar, Please Visit www.pianeia.com December 2017 | Main Street Industry News | www.pianeia.com | 31

PIA NE IA EVENTS

Upcoming Events Calendar 2017-18 For information and to register Click Here or call (402) 392-1611.

Date

Class/Webinar

Where

When

December 7, 2017

Street Level Ethics

NE/IA

Webinar: 12:00PM - 3:00PM

December 7, 2017

Tricks to Fix: Closing Coverage Gaps in Home, Work and Auto

NE/IA

Webinar: 8:00AM - 11:00AM

December 7, 2017

Street Level Ethics (NE)

NE/IA

Webinar: 12:00PM - 3:00PM

December 11, 2017

Commercial Liability Endorsements To Watch Out For

NE/IA

Webinar: 12:00PM - 3:00PM

December 13, 2017

2017 PIA Annual Holiday Party

Omaha

Happy Hollow Country Club

January 10, 2018

Insuring the Building Project: Builders Risk and Installation Coverage

NE/IA

Webinar: 12:00PM - 3:00PM

January 11, 2018

Cyber Liability - the 21st Century Peril

NE/IA

Webinar: 8:00AM - 11:00AM

January 11, 2018

Regarding Ethics

NE

Webinar: 12:00PM - 3:00PM

January 16, 2018

Current Trends & Changes: The Homeowner & Auto Marketplace

NE/IA

Webinar: 12:00PM - 3:00PM

January 23, 2018

And the CHAOS Continues

NE

Webinar: 8:00AM - 11:00AM

January 23, 2018

Commercial Property Claims that Cause Problems

NE/IA

Webinar: 12:00PM - 3:00PM

January 24, 2018

Additional Insureds: The Quandry

NE/IA

Webinar: 12:00PM - 3:00PM

January 25, 2018

How to be the Agent Advocate at Claim Time

NE

Webinar: 12:00PM - 3:00PM

February 6, 2018

Home Business vs. Home Insurance

NE/IA

Webinar: 12:00PM - 3:00PM

February 7, 2018

CISR: Insurance Personal Auto Exposures

IA

Hilton Garden Inn Des Moines/Urbandale

February 8, 2018

Tricks to Fix: Closing Coverage Gaps in Home, Work and Auto

NE/IA

Webinar: 8:00AM - 11:00AM

February 13, 2018

Certificiates and Additional Insureds: Navigating the Maze

NE/IA

Webinar: 12:00PM - 3:00PM

December 2017 | Main Street Industry News | www.pianeia.com | 32

PIA NE IA EVENTS February 13, 2018

E&O Loss Prevention

NE/IA

Webinar: 8:00AM - 11:00AM

February 14-16, 2018

CIC: Personal Lines Institute

NE

Double Tree Omaha Southwest

February 14, 2018

**LAST TIME, NE ONLY** Executive & Management Liability

NE

Webinar: 8:00AM - 11:00AM

February 15, 2018

**LAST TIME, NE ONLY** Man Vs. Machine (NE)

NE

Webinar: 8:00AM - 11:00AM

February 20, 2018

Street Level Ethics

Iowa

Webinar: 12:00PM - 3:00PM

February 20, 2018

Street Level Ethics (NE)

NE

Webinar: 12:00PM - 3:00PM

February 21, 2018

**LAST TIME, NE ONLY** Top 12 Coverage Countdown (NE)

NE

Webinar: 8:00AM - 11:00AM

February 21, 2018

A Walk Around the Farm Farm Property Considerations (NE)

NE

Webinar: 12:00PM - 3:00PM

February 21, 2018

A Walk Around the Farm Farm Property Considerations

Iowa

Webinar: 12:00PM - 3:00PM

February 28, 2018

CISR: Elements of Risk Management

Hiawatha

Kirkwood Linn Regional Center

December 2017 | Main Street Industry News | www.pianeia.com | 33

PIA NE IA EVENTS

CONGRATULATIONS FOR YOUR EARNED DESIGNATION The Professional Insurance Agents NE IA would like to congratulate everyone who has earned a designation from The National Alliance in 2017.

2017

Iowa CIC Designation Mr. Garrett Patrick Adams, CIC TrueNorth Companies Cedar Rapids, IA Mrs. Leah Adolphson, CIC Holmes Murphy & Associates West Des Moines, IA Ms. Denise Allex, CIC, CISR Holmes Murphy & Associates, Inc. West Des Moines, IA Ms. Gwendolyn Brooke Appeldorn, CIC, AINS, API Nationwide Des Moines, IA Mr. Evan Michael Behnke, CIC Cottingham & Butler Dubuque, IA

Mr. Christopher A. Betts, CIC Gateway Insurance Services Ames, IA

Ms. Vallery Eisenmann, CIC, LUTCF American National Insurance Co. Slater, IA

Ms. Kelly Marie Breuner, CIC Nationwide Insurance Des Moines, IA

Mr. Michael L. Elliott, CIC Nationwide Insurance Des Moines, IA

Ms. Blythe C. Bruner, CIC Cottingham & Butler Dubuque, IA

Mr. Leon Michael Fettkether, CIC Skogman Carlson Hiawatha, IA

Ms. Laisha Lee Carter, CIC Holmes, Murphy and Associates, LLC West Des Moines, IA

Mr. Charles Joseph Freund, CIC Cottingham & Butler Dubuque, IA

Ms. Regina Chock, CIC, CISR Holmes Murphy & Associates West Des Moines, IA

Mr. Scotty Fry, CIC, CPCU, AIS Cameron Mutual Cameron, MO

Mr. James R. Cliber, CIC Nationwide Insurance Des Moines, IA

Mr. Nathan M. Gallaher, CIC Tulip City Agency Pella, IA

Mr. Chad K. Dunne, CIC Sheets Forrest Draper Marion, IA

Mr. Steven Genck Jr., CIC Holmes Murphy & Associates, Inc. West Des Moines, IA

Mrs. Sarah Jo Eiben, CIC, AAI Cottingham & Butler Dubuque, IA

Mr. Daniel Hartlieb, CIC Holmes, Murphy and Associates, LLC West Des Moines, IA

December 2017 | Main Street Industry News | www.pianeia.com | 34

PIA NE IA EVENTS Mr. Joseph C. Heimer, CIC Town & Country Insurance Agency Osage, IA Mr. Jacob Mark Heins, CIC Cottingham & Butler Dubuque, IA Mr. Tony Helm, CIC Integrated Insurance Solutions, Inc. Bettendorf, IA Ms. Nicki Ann Henson, CIC Continental Western Group Urbandale, IA

TrueNorth Cedar Rapids, IA Mr. Jeremy M. Smith, CIC, CISR Millhiser Smith Agency Cedar Rapids, IA Mr. Trace A. Stegman, CIC Cottingham & Butler Dubuque, IA Ms. Rose M. Stoline, CIC Complete Insurance, LTD Jefferson, IA

Iowa CISR Designation Ms. Kelly M. Andrews, CISR Sheets Forrest Draper Marion, IA Ms. Kaylee Baish, CISR PDCM Insurance Waterloo, IA

Mrs. Stephanie Lee Strayhorn, CIC EMC Insurance Des Moines, IA

Ms. Mary C. Barnes, CISR TrueNorth Companies Cedar Rapids, IA

Mr. Bradley J. Veenstra, CIC McKay Insurance Knoxville, IA

Ms. Natalie Rae Becker, CISR TrueNorth Comapnies Cedar Rapids, IA

Mr. Nicholas John Kohlhof, CIC Cottingham & Butler Dubuque, IA

Ms. Kim Miller Weber, CIC, CPCU, AINS Nationwide Insurance Des Moines, IA

Ms. Julie E. Brockert, CISR Arthur J. Gallagher RMS, Inc. Muscatine, IA

Mr. Alexander J. Krist, CIC, CISR Krist Insurance Services West Des Moines, IA

Mr. John A. Weil, CIC Nationwide Sales Solutions Des Moines, IA

Mr. Michael A. Lee, CIC, AU, AFIS Nationwide Des Moines, IA

Ms. Stephanie Marie Wells, CIC, CPCU, CRIS Nationwide Insurance Des Moines, IA

Mr. Mathew S. Johnson, CIC ING Johnston, IA Mr. Christopher Bradbury Kelley, CIC Koele, Inc. Hull, IA

Ms. Amy L. Martin, CIC Grinnell Mutual Reinsurance Company Grinnell, IA Mr. Michael Joseph Meisheid, CIC United Fire Group Cedar Rapids, IA Mrs. Amaechi Helen Nnadi, CIC Nationwide Insurance Des Moines, IA Mr. Rob Schmidt, CIC Lee Agency Inc. Muscatine, IA Ms. Tracie M. Schulte, CIC

Mr. Andrew B. Young, CIC Sumners Insurance Agency Clarion, IA

Ms. Blythe K. Buffington, CISR Holmes Murphy & Associates, LLC West Des Moines, IA Ms. Carrie E. Burns, CISR Nationwide Des Moines, IA Ms. Michelle Chally, CISR Pharmacists Mutual Insurance Co. Algona, IA Ms. Jennifer M. Connelly, CISR SilveStone Group Insurance Council Bluffs, IA

National CIC Statistics Total Participants: 66,694 Total Designated: 30,015

Mr. Steven P. Cook, CISR, CPIA West Bend Mutual West Bend, WI

Iowa CIC Statistics Total Participants: 1,510 Total Designated: 678 IA CICs Conferred in 2017: 44

Mrs. Melissa Detrick, CISR Pharmacists Mutual Burt, IA Ms. Tracey L. Doss, CISR LMC Insurance & Risk Management West Des Moines, IA

December 2017 | Main Street Industry News | www.pianeia.com | 35

PIA NE IA EVENTS Mrs. Megan Ellison, CISR PDCM Insurance Waterloo, IA

Ms. Traci A. Lyons, CISR Millhiser Smith Agency Cedar Rapids, IA

Ms. Kimberley K. Gienau, CISR LSB Insurance Cedar Falls, IA

Ms. Jennifer L. Machande, CISR The Engel Agency, Inc. Maquoketa, IA

Ms. Nicole Christine Glenn, CISR Holmes Murphy West Des Moines, IA

Ms. Megan Rose Manders, CISR PDCM Insurance Waterloo, IA

Ms. Kathleen Wolfe Hansen, CISR Arthur J Gallagher Muscatine, IA Ms. Sonja Harapat, CISR Hills Insurance Agency Iowa City, IA Ms. Tia Ascella Heires, CISR True North Companies Cedar Rapids, IA Ms. Raine Allyce Hoel, CISR TrueNorth Comapnies Cedar Rapids, IA Ms. Renae L. Hopp, CISR FCIS Insurance Forest City, IA Ms. Lori L. Houston, CISR True North Companies Cedar Rapids, IA Ms. Carrie Ihnen, CISR Holmes, Murphy and Associates, LLC West Des Moines, IA

Mrs. Wendy Marcum, CISR Holmes Murphy West Des Moines, IA Ms. Stephanie Rose Marlow, CISR, AINS Pharmacists Mutual Insurance Company Algona, IA

Ms. Amy B. Sorensen, CISR, CLCS Holmes Murphy West Des Moines, IA Ms. Lynette M. Sugden, CISR PDCM Insurance Waterloo, IA Ms. Paige L. Thompson, CISR Elite PDCM Insurance, Inc. Waterloo, IA Ms. Kristine Tinsman, CISR Farm Bureau Financial Services west des moines, IA Ms. Samantha Trost, CISR PDCM Insurance Waterloo, IA

Ms. Gayle D. McMillen, CISR Holmes Murphy West Des Moines, IA

Ms. Lynn Ann Uridil, CISR Millhiser Smith Agency Cedar Rapids, IA

Ms. Chelsea Marie Meyers, CISR Kingsgate Insurance Fort Dodge, IA

Ms. Nicole L. Vennard, CISR PDCM Insurance Waterloo, IA

Ms. Nicole C. Nee, CISR LMC Insurance & Risk Management West Des Moines, IA

Ms. Tressa Walton, CISR Wilson-Hite Insurance Vinton, IA

Ms. Lori L. Norman, CISR PDCM Insurance Waterloo, IA

Mr. Brett Daniel Watkins, CISR PDCM Insurance Waterloo, IA

Ms. Jennifer Kentner, CISR TrueNorth Cedar Rapids, IA

Ms. Stacy Lynn Paisley, CISR Molyneaux Insurance Davenport, IA

Ms. Susan L. Koepke, CISR Nelson Brothers Agency Bettendorf, IA

Ms. Holly Marie Ranney, CISR Skogman Carlson Insurance Hiawatha, IA

Ms. Ladona R. Kollasch, CISR Pharmacists Mutual Insurance Co. Algona, IA

Ms. Kristen M. Sanecki, CISR Molyneaux Insurance Davenport, IA

Ms. Kimberly Sue Krizek, CISR PDCM Insurance Waterloo, IA

Mrs. Trude Smouse, CISR Holmes, Murphy and Associates, LLC West Des Moines, IA

December 2017 | Main Street Industry News | www.pianeia.com | 36

National CISR Statistics Total Participants: 69,507 Total Designated: 27,492 Iowa CISR Statistics Total Participants: 962 Total Designated: 448 IA CISRs Conferred in 2017: 48

PIA NE IA EVENTS

Nebraska CIC Designation

Ms. Jennifer Trevarrow, CIC Unico Lincoln, NE Ms. Rhonda S. Tucker, CIC, CISR NBISCO Agency Services Lincoln, NE

Ms. Michelle H. Bivens, CIC, CISR, AINS The Harry A Koch Co. Lincoln, NE

Mr. Chad LeRoy Van Ostrand, CIC, ARM, CRIS, CWCS Unico Group, Inc. Lincoln, NE

Mr. Gordon Bryant, CIC, AAI LMC Insurance and Risk Management Omaha, NE

Ms. Michelle M. Werth, CIC, CISR Consortio Group Omaha, NE

Mr. Robert J. Gall, CIC Agri-City Insurance Agency Norfolk, NE Ms. Lindsay M. Glaug, CIC, AAI The Harry A Koch Company Omaha, NE Ms. Robin Hawley, CIC Harry A. Koch Co Omaha, NE Ms. Holly J. Hild, CIC Agri-City Insurance Schuyler, NE

Mr. Ryan O. White, CIC, AU Liberty Mutual Omaha, NE

National CIC Statistics Total Participants: 66,694 Total Designated: 30,015 Nebraska CIC Statistics Total Participants: 711 Total Designated: 290 NE CICS Conferred in 2017: 16

Mr. Brennan J. Malm, CIC JG Elliott Company Scottsbluff, NE Ms. Laci Marie Mueller, CIC, CISR Western Insurors Ogallala, NE Mr. Anthony Keith Purvis, CIC Gary Thompson Agency Kearney, NE Ms. Sharon K. Ruskamp, CIC, CISR INSPRO Insurance West Point, NE Mr. Joshua R. Sirek, CIC Town & Country Insurance Pierce, NE

Nebraska CRM Designation Ms. Melissa D. Bullock, CRM ARAG Des Moines, IA Mr. Graham R. Dahler, MBA, CIC, CRM Iowa Bankers Insurance & Services, Inc. Johnston, IA

Mr. Andrew M. Kuecker, CIC, CRM, CPCU, ARM, AU EMC Insurance Companies Des Moines, IA Ms. Brandi Rose Mack, CIC, CRM, AAI Cottingham & Butler Dubuque, IA Mr. Christopher Murphy, CIC, CRM, CPCU, ARM, CSP, AAI, AU, AMIM, ARe, AIM, AINS, AIC, API Nationwide Insurance Des Moines, IA Ms. Vanessa Plotz, CRM Agri-Business Insurance Services West Des Moines, IA Mr. Rick Smithpeter, CIC, CRM, CSP Central Valley Ag Omaha, NE

National CRM Statistics Total Participants: 21,703 Total Designated: 4,068 Nebraska CRM Statistics Total Participants: 85 Total Designated: 11 Iowa CRM Statistics Total Participants: 453 Total Designated: 93 NE & IA CRMs Conferred in 2017

2017

December 2017 | Main Street Industry News | www.pianeia.com | 37

JOBCAREER It’s the turning point for successful professionals.

Life-Changing Education The Certified Insurance Counselors (CIC) designation is the stamp of “Career Professional” in the eyes of the insurance and risk management industry. When the letters CIC follow your name, you demonstrate your full commitment to your profession. When you earn the CIC designation you swing the doors of opportunity wide open. In fact, studies published in the Producer Profile publication show CICs earn 30% more than their competitors.

www.PIANEIA.com Available online and in the classroom at www.TheNationalAlliance.com

December 2017 | Main Street Industry News | www.pianeia.com | 38

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

fmne.com

TOP STORIES

THE NEW

CYBER

NIGHTMARE Holiday Shopping Generali Global Assistance (GGA) keeps up on all things cyber. The company recently took a look at holiday shopping. It found: • 75% are more skeptical about shopping during the holidays • 91% of us will holiday shop but don’t think merchants can protect our personal information • 40% don’t think businesses do enough to protect our information • 75% of us are somewhat or very concerned about a data breach impacting our personal information That we are shopping is a given and our concern about merchants is deserved. A bigger concern, however, is where we shop.

• 57% of us believe online shopping puts us at greater risk of ID theft than a brick and mortar store • 84% of us say we’ll never shop at a store again if it is one where our ID was taken • Just 22% of us think the brick and mortar store is an ID theft danger What about physical assaults like being robbed or having our pockets picked?

• 11% of us fear being physically robbed • 10% are concerned about having their vehicle broken into

Paige Schaffer of Generali Global’s Assistance Identity program said, “Consumers are clearly more concerned than ever about identity theft and related issues as we enter the 2017 holiday season. With data breaches at major organizations occurring so frequently and impacting literally millions of people in the U.S. alone, consumer confidence in the ability of businesses to protect their data has been shaken.”

None of this — however — is going to keep us from holiday shopping and spending money.

Most of us will use credit cards to pay for gifts followed by debit cards and cash. Some of us still — believe it or not — use checks and a few will use mobile payment apps.

• 91% of us will shop this holiday season • 75% will do at least some shopping online Schaffer’s advice is to be careful out there.

“The holiday season is the busiest shopping time of the year, and all this spending results in increased vulnerabilities for hackers and other nefarious parties to exploit. The increased use of credit cards, greater smartphone usage and even crowded malls can all pose identity theft risks during the holidays. Fortunately, there are steps that consumers can take to protect themselves in order to enjoy a worry-free and festive season,” Schaffer said.

December 2017 | Main Street Industry News | www.pianeia.com | 40

TOP STORIES And whatever you do — she warns — be careful with your cell phone.

Also keep your personal items safe because ID theft can occur in ways other than online.

“Regardless of where they are being used, consumers should limit the use of unsecured, public Wi-Fi networks. While using such networks may be tempting because of the convenience they provide, unsecured connections may create openings for hackers to steal your personal information,” Schaffer warned.

“Throughout the holidays, many consumers will find themselves in crowded locations — malls, parties, airports and the like. Crowded areas are ideal for pickpockets, as all the hustle and bustle can leave even the shrewdest individuals unaware,” she said.

What happens — she noted — is ID thieves will set up unsecured networks in public areas and hope people will log into them thinking they belong to a mall or a merchant or someone safe.

“If you must use a public network, it is essential to never access your financial account or any other sites that require a password,” she said.

HER ADVICE

Keep wallets, passports, smartphones and other sensitive items in bags and pockets and only take them out when you need to use them. Also be careful of ATM machines and gas pumps. Your info could be skimmed.

Source: PropertyCasualty360.com

December 2017 | Main Street Industry News | www.pianeia.com | 41

Help Protect Your Most Valuable Asset - Your Income - With The PIA Trust

Long Term Disability Plan

LTD COVERAGE DESIGNED WITH LOCAL AGENTS IN MIND As a PIA Member* serving Main Street America, you and your employees** have access to a highquality, competitively priced LTD plan through the PIA Services Group Insurance Fund.

How would you manage if a long-term disability reduced your earning power? For many people, disability means an interruption in earnings that can put them financially at risk. With the PIA Trust Long Term Disability Income Insurance plan, PIA members and their employees** can get the coverage they need to help protect against that risk.

With no medical underwriting necessary*** and additional flexible options available, each participant can easily customize a plan to suit their own specific needs.

PIA SERVICES GROUP INSURANCE FUND

For more information about the PIA Trust Long Term Disability Income Insurance plan, please contact your local PIA Affiliate or call the Plan Administrator at (800) 336-4759. Additional information is also available on-line at www.piatrust.com. * PIA National membership, when required, must be current at all times ** No minimum participation required *** Benefits subject to a pre-existing condition limitation

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 Affinity, LLC.