Main Street Industry News - February 2018

INSIDE The Consumer Financial Protection Bureau — Changes & Congress » 7 Analysis: Small Business & Insurance » 12 Update: Trump Tax Cuts & Insurance » 16 Top Business Worries 2018 » 22

Cover Image: Tim Vrtiska, Homestead - Nebraska

February 2018 | Published Monthly

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.

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

The Consumer Financial Protection Bureau — Changes & Congress | 7 The House Financial Services Committee has passed two bills out of committee to help insurers saddled with regulatory burdens.

Sign Up for PIA’s Very Important Cyber Risk Program | 9 PIA National is — on your behalf — responding to the growing cyber crisis. It’s a new program called Cyber 101 and is an educational resource created by PIA and The PIA Partnership.

Rumor No More — Amazon, Berkshire, JPMorgan Create Health Care Company | 11 For months we’ve been hearing about Amazon maybe going into the health insurance business.

It has finally happened. Sort of.

Analysis: Small Business & Insurance | 12 We hear about bankruptcy all the time. Most of the news we get is big businesses like Gap, Walgreens, Sears, Pennys and others.

PIA National Wants Congress to Finish NFIP Reform | 13 PIA National was very critical of Congress when it didn’t extend the National Flood Insurance Program (NFIP) before the federal government shutdown.

The U.S. Drops MetLife Too-Big-to-Fail Fight | 19 The suit is going to be dismissed. The U.S. Department of Justice and MetLife have both agreed they will seek to dismiss the government’s appeal of a Federal District Court Judge’s decision that MetLife should not be designated as a systemically important financial institutions also known as too-big-to-fail.

Top Business Worries 2018 | 22 The seventh annual Allianz Global Corporate and Specialty business worry survey is out. The Allianz Risk Barometer: Top Business Risks for 2018 says business interruption is the top worry but a growing concern — as it has been in the past few years — is cyber attacks and incidents.

PIA NE IA EVENTS Professional Insurance Agents NE IA and The National Alliance Nebraska and Iowa CIC & CISR Designation | 24 Upcoming Events Calendar 2018 | 26

ADVERTISEMENTS

Update: Trump Tax Cuts & Insurance | 16 No surprise that tax reform was a major topic at the Insurance Information Institute’s 2018 P/C Joint Industry Forum a couple of weeks ago.

Your Clients — Savers, Savings & Such | 17 As most of you know, financial experts say all of us should have at least enough money in savings to take care of our expenses for three to six months.

February 2018 | Main Street Industry News | www.pianeia.com | 4

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

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

fmne.com

IS YOUR E&O X-DATE HERE? PIA FOR NEBRASKA AND IOWA PIA Association for Nebraska and Iowa is committed to focusing its resources in ways that cast the most favorable light on its constituents. We are dedicated to providing the type of programs, the level of advocacy, and the dissemination of information that best supports the perpetuation and prosperity of our members.

We pledge to always conduct ourselves in a manner that enhances the public image of PIA and adds real value to our members.

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

Considering a change?

Let the PIA quote your E&O

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

The PIA NE IA, Main Street Industry News reserves the right to edit your comments to fit space available. We respectfully ask that you keep the comments to 200-300 words.

Join Our Facebook Fan Page

Professional Insurance Agents of NE IA

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

This publication is designed by Strubel Studios.

E&O Coordinator Steve Bailey

TOP STORIES

THE CONSUMER FINANCIAL PROTECTION BUREAU CHANGES & CONGRESS The House Financial Services Committee has passed two bills out of committee to help insurers saddled with regulatory burdens. One bill is H.R. 3746, the Business of Insurance Regulatory Reform Act of 2017. It amends the Consumer Financial Protection Act of 2010 — which is part of the Dodd-Frank Act — and if complaints arise it exempts insurers from the bureau’s enforcement.

said the bill creates a certainty for insurers — and for consumers — that there will not be conflicting or duplicative consumer protection regulations.

The reason for the change is because insurers are already regulated by state regulators. It passed 37 to 18.

“This bipartisan legislation clarifies that the Consumer Financial Protection Bureau should only exercise regulatory jurisdiction over the business of insurance where it has clear authority from Congress, and that deference should be given to state insurance regulators when it comes to the business of insurance,” he said.

Dirk Kempthorne is the president and CEO of the American Council of Life Insurers. He

The other bill passed out of the House Financial Services Committee is H.R. 4061. It is known

February 2018 | Main Street Industry News | www.pianeia.com | 7

TOP STORIES as the Financial Stability Oversight Council Improvement Act. This one amends the DoddFrank Act to make the Financial Stability Oversight Council (FSOC) consider the how appropriate it is to impose heightened standards on non-bank financial companies supervised by the Federal Reserve instead of other forms of regulation designed to mitigate risk.

That one passed 45 to10.

By the way, this bill is based on Section 151 of H.R. 10. That is the Financial CHOICE Act of 2017. It eliminates Dodd-Frank’s too-big-to-fail tag from insurers and does a lot of other things supported by the PIA like: • Replacing the non-voting, independent insurance member of the FSOC with a voting member • Requiring the federal government to consult with state insurance regulators when looking at national and International matters of insurance What PIA National doesn’t like about The CHOICE Act is the creation of the Independent Insurance Advocate. PIA National Executive Vice President Mike Becker said it will be housed in the Treasury and is the only thing PIA doesn’t like about CHOICE. “The Independent Insurance Advocate could quickly become a federal insurance czar with no supervision, positioned to usurp our strong and effective system of state insurance regulation. It runs counter to the purpose of shrinking the federal footprint,” Becker said.

Speaking of changes in Dodd Frank, Office of Management and Budget Director Mick Mulvaney is the new head of the Consumer Financial Protection Bureau (CFPB). The bureau has been — if they are to be believed — the bane of the existence of financial institutions

like banks, credit card companies, loan and other financial businesses and to some extent insurers which is why the House Financial Committee made its change in the CFPB regulations.

Mulvaney is making changes in the CFPB and wants these institutions to file complaints about how they have been treated. Mulvaney — like many financial institutions— thinks the CFPB has overstepped its authority in some cases and he is looking “for evidence to ensure the bureau is fulfilling its proper and appropriate functions to best protect consumers.”

Translation: He’s cutting the aggressive regulatory and enforcement actions of the bureau.

Responding to criticism that he’s supporting business over consumers, Mulvaney said it’s “natural for the Bureau to critically examine its policies and practices to ensure they align with the Bureau’s statutory mandate. Moving forward, the Bureau will consistently seek out constructive feedback and welcome ideas for improvement. Much can be done to facilitate greater consumer choice and efficient markets, while vigorously enforcing consumer financial law in a way that guarantees due process.”

The complaints of financial institutions under the Obama presidency — which is when the bureau was created by the Dodd-Frank Act — is they were automatically assumed guilty when any complaint was filed. The contention being that due process was violated and they had no way to prove it when they’d done nothing wrong.

Mulvaney said he’s going to shift the focus of the CFPB to deregulation and more choices for consumers. He plans sweeping changes based on what he’s going to hear from business.

Sources: The Hill, Business Insurance, PIA National

February 2018 | Main Street Industry News | www.pianeia.com | 8

TOP STORIES

SIGN UP FOR PIA’S VERY IMPORTANT

CYBER RISK PROGRAM PIA National is — on your behalf — responding to the growing cyber crisis. It’s a new program called Cyber 101 and is an educational resource created by PIA and The PIA Partnership. The purpose is to educate you — the PIA member — on cyber security issues. You are then encouraged to pass your knowledge onto your clients.

Why? Most small businesses think only large businesses are ripe for a cyber-attack. That — of course — is not true. The PIA course looks at the seven most common cyber risks faced by small and mid-sized businesses. Chances are many — if not most — of your clients fit that definition.

The courses look at the business practices and insurance coverages that can reduce those risks.

Nicole Carter is the manager of agent/broker relations for Liberty Mutual and is the chair of

the PIA Partnership. Carter said, “Agents and carriers have tiptoed into the cyber arena for a number of years. The age of wading slowly is over. Agents need the same level of expertise and competence about cyber that they have with other areas of risk and insurance. Their clients increasingly expect it. Our hope is that by elevating this resource, we can create a greater sense of urgency, a call to action to ‘insure yourself, then educate and protect your customers,’” she said.

ABA Insurance Services (ABAIS) has partnered with the PIA to put on the programs. David Rupnow is ABAIS’ Senior Product Manager.

He agrees with Carter and said, “Many small and mid-sized business owners and operators do not understand the many ways that their businesses can suffer a cyber-related loss.

Because so many people are affected by the data breaches at very large companies, news reports often focus on these events.

However, our experience shows us that small

February 2018 | Main Street Industry News | www.pianeia.com | 9

THERE IS A RIGHT TIME AND A WRONG TIME FOR YOUR CLIENTS TO LEARN ABOUT FLOOD RISK.

{wrong time}

TOP STORIES businesses are also at risk, and not just from data breaches.”

In December, the program focused on fraudulent funds transfers. The January course looked at extortion/ransomware. You can access your PIA account and watch both of the courses if you missed them. Once you’ve logged into your account click here to access the Cyber 101 page.

The classes run about an hour. You can also — once you’ve logged into your account — register for the upcoming classes. The next one is Tuesday, February 27th.

Click here to register for the next course.

UPCOMING CLASSES

{right time}

MAKE FLOOD INSURANCE SALES EASIER WITH FLOODBROKER.COM Floodbroker is available only to PIA members.

Contact Evan Spindelman at 855.442.4130 or evan.spindelman@floodbroker.com or visit

WWW.PIANET.COM/FLOODBROKER Brought to you by PIA and Floodbroker.

Social Engineering

Tuesday, February 27, 11am PST

Business Interruption

Tuesday, March 27, 11am PST

Data Breach/Privacy

Tuesday, May 1, 11am PST

Network Security

Tuesday, June 5, 11am PST

Website Media Liability

Tuesday, July 10, 11am PST

You definitely need to register. Carter added the biggest cyber threat is complacency.

“Cyber 101 is designed to get the message out to agents, brokers and everyone. The Cyber threat is real, it’s growing, and everyone needs to ensure that they are protecting themselves appropriately.”

Register today — or soon. The courses are at no charge.

Click here to register.

February 2018 | Main Street Industry News | www.pianeia.com | 10

TOP STORIES will be — says the statement — independent and “free from profitmaking incentives and constraints.”

The big question today is will the new company expand beyond Amazon, Berkshire Hathaway and JPMorgan? The statement forming the company did not say but at the announcement Dimon said “our goal is to create solutions that benefit our U.S. employees, their families and, potentially, all Americans.”

So expansion may be inevitable.

RUMOR NO MORE

AMAZON, BERKSHIRE, JPMORGAN CREATE HEALTH CARE COMPANY For months we’ve been hearing about Amazon maybe going into the health insurance business. It has finally happened. Sort of. The company has connected with Warren Buffett’s Berkshire Hathaway and with JPMorgan Chase and they’re putting a health care entity together to service their employees and provide them with quality health care.

And the goal is to do so at a “reasonable cost.”

None of the firm’s leaders — Jeff Bezos of Amazon, Warren Buffett of Berkshire nor Jamie Dimon of JPMorgan — offered details. In a statement Buffett said the new company is in the beginning stages. “The ballooning costs of (health care) act as a hungry tapeworm on the American economy. Our group does not come to this problem with answers. But we also do not accept it as inevitable,” he said.

What we do know is the new company will be independent of the three companies and

The announcement of the new company on Tuesday morning caused shares in health care companies to take a big hit in early trading.

At issue for those companies is the new company’s new take on how health care is delivered to employees.

Health care, health insurance and skyrocketing rates is one of the most controversial issues facing the U.S. today and has been a focus since President Obama and a Democratcontrolled Congress started work on the Affordable Care Act in 2008.

The Kaiser Foundation says even since ObamaCare was passed — and still — just half of U.S. companies with three to 49 employees offer coverage. That’s down from 66% a decade ago. Part of that reason may be the Affordable Care Act only requiring those with 50 or more employees to purchase insurance for their employees.

The radical change with this new company is the three firms contending they can use their scale and size and “complimentary expertise” to this project.

Source: OregonLive.com

February 2018 | Main Street Industry News | www.pianeia.com | 11

TOP STORIES

ANALYSIS SMALL BUSINESS & INSURANCE

BANKRUPTCY

Commercial real estate brokers Cushman & Wakefield released some data recently saying some 12,000 stores will likely close in 2018.

That’s up from 9,000 or so from 2017.

Along those lines Insureon and Manta checked in with small business owners. Their survey found only 9% of the 1,200 small business owners they questioned have been bankrupt before. A whopping 98% of that number said they don’t expect to ever have to file.

That’s very positive but many of that 98% could end up in failure and bankruptcy because of the lack of the proper insurance. This is insurance that would pay for lawsuits and incidents that can lead to bankruptcy.

In an interview with Insurance Business America, Insureon President Jeff Somers said, “It’s remarkable how many small businesses are either uninsured or underinsured. Small business owners are literally pouring their blood, sweat, tears and hard-earned dollars into building their businesses, and yet many of them lack appropriate protection for the unlikely event that something does happen to their business.”

SURVEY STATS We hear about bankruptcy all the time. Most of the news we get is big businesses like Gap, Walgreens, Sears, Pennys and others. The American Bankruptcy Institute (ABI) thinks these firms are in danger of collapse in 2018. The ABI says commercial bankruptcy filings rose 26% last year and most of those are small businesses.

That’s not good considering small business is the backbone of the U.S. economy.

Just 28% had business owner policies.

That’s the combination of general liability and commercial property A minuscule 6% had business interruption insurance 17% don’t have enough workers’ compensation Only 2% have cyber insurance

February 2018 | Main Street Industry News | www.pianeia.com | 12

TOP STORIES Somers pointed to the 98% who don’t worry about bankruptcy and said, “When you look at ABI data from 2016 when almost 38,000 businesses in the US declared bankruptcy, you realize these business owners are perhaps overly optimistic about the risk. It is something that does and can happen — and there are appropriate steps you can take to protect against it.”

An example he gave is an injury when someone slips and falls. Somers notes the average settlement is $20,000. That’s a tough nut to crack for a very small business and is something easily fixed with a BOP. Damaged or stolen property is paid for via a commercial property policy. General liability helps pay for lawsuits and in this case a lawsuit involving a slip and a fall.

“The problem is, not all small businesses truly understand their insurance needs. There’s a lack of awareness and education, which insurers and brokers must try to resolve. One reason for this protection gap is a misplaced anxiety around how much insurance actually costs. But when you compare the small price of business insurance to the potential risks it protects against, the math is very straightforward,” Somers said.

He added that many small business owners don’t realize the risks they face.

“Many think if anything were to happen to them, it won’t be a big deal because they’re only a small business — but in reality, these risks can be a big deal. As small businesses they’re particularly at risk because they can’t afford to take any kind of major hit to their business. The risk/reward profile is so skewed in favor of the small business when they elect to take insurance that it’s a really smart thing to do. Our job is to make sure they know that,” Somers said.

Source: Insurance Business America

PIA National Wants Congress to Finish NFIP Reform PIA National was very critical of Congress when it didn’t extend the National Flood Insurance Program (NFIP) before the federal government shutdown. The lack of a continuing resolution to extend means many real estate transactions and policyholder actions were put on hold.

The association has been very critical of Congress for not permanently getting an extension done. PIA leadership thinks it’s time to get going since the NFIP expired on September 30th and was extended until December 8th. Then it was extended again until December 22nd and then again to January 19th.

Too many extensions and not enough solutions.

When the Senate and House voted to restart the federal government an extension of the NFIP was included but it expires when the agreement to temporarily fund the government expires on February 8th.

Included in the funding of the government is another extension of the delay of ObamaCare’s Cadillac Tax. “PIA calls on Congress to immediately pass an extension of the NFIP so that consumers and their properties can again be protected.

We will also continue to urge Congress to pass a long-term reauthorization of the program that recognizes the key role independent agents play in delivering it to consumers,” PIA National said in a statement.

Sources: PIA National, Insurance Business America

February 2018 | Main Street Industry News | www.pianeia.com | 13

Independent Insurance Agents Every day, you as independent agents put on a rocking show for your clients. We are proud to give you a standing ovation!

TOP STORIES

UPDATE Trump Tax Cuts & Insurance

No surprise that tax reform was a major topic at the Insurance Information Institute’s 2018 P/C Joint Industry Forum a couple of weeks ago.

The discussion was mostly positive. Barclays Capital Managing Director and senior equity analyst at Barclays Capital Jay Gelb said the cuts and reforms will be a bottom-line benefit for U.S. companies.

“We’ve actually estimated for Berkshire Hathaway alone, just on their deferred tax liability going down, it’s a $34 billion benefit — about 12 percent of their book value.

Berkshire’s earning power going forward should benefit by around 12 percent as well,” he said.

should have to pass their tax rate reduction “windfalls” onto insurance consumers.

“The recent revision to the Federal Tax Schedule for 2018 reduced the corporate tax rate from 35 percent to 21 percent. That means that nationally insurers will now be able to retain even more of policyholder premiums as profit. However, in California the prior approval process that applies to property and casualty insurance rates limits insurer profits. I have directed my staff to commence a regulatory review of these insurers’ rates given the major tax windfall under the new federal tax rules. I have also directed staff to consider and identify possible actions in other lines of business where insurers will benefit from the tax cut to see if we can enable their policyholders to also benefit from the lower corporate taxes paid by their insurers,” Jones said.

Mark Sektnan is the vice president of state government relations for the Property Casualty Insurers Association of America (PCI) He called Jones’ statement shortsighted.

Gelb and the researchers at Barclays say American companies domiciled here will see a large jump in earnings going forward. “Then the question becomes, ‘How much of that will actually go to the bottom line in terms of will rates be adjusted to take that into account or will competitive factors ramp up?’” he said.

“The home, auto, and business insurance marketplace is extremely competitive, and this is the best guarantee of service, product innovation and prices. The impact of tax reform will vary greatly from company to company. In California, companies’ immediate concern moving into 2018 is helping families and businesses rebuild after the tragic wildfire season.”

He doesn’t think — however — that offshore insurers and reinsurers will see that much benefit and believes some will even see a negative impact. It will be slight but negative nonetheless.

He pointed out that premium reductions will be one of many options insurers will consider.

Some companies might use the excess money to expand operations, add new jobs or to give employees more benefits and incentives.

Brian Duperreault of AIG said, “Generally speaking, so far so good. It got put together so quickly. There are still some things that need to be clarified.”

Sektnan’s bottom-line? “This announcement is another example of regulators overstepping their boundaries,” he said.

One thing is clear in California Insurance Commissioner Dave Jones’ mind is that insurers

Sources: Carrier Management, Insurance Journal

February 2018 | Main Street Industry News | www.pianeia.com | 16

TOP STORIES

YOUR CLIENTS SAVERS, SAVINGS & SUCH As most of you know, financial experts say all of us should have at least enough money in savings to take care of our expenses for three to six months. This is an emergency fund that can — in desperate times — keep a person or a family afloat in the event of an unexpected emergency or job loss.

Yes. Yes. Yes. We all know that but how many of us actually have that much money in savings? Not even half. Or so says a GOBankingRates survey. It shows a pathetic 57% of us have less than $1,000 saved.

While that’s awful news, it is better than the 2016 survey that found 69% of us had less than that amount in a savings account. The bad news about the 2017 survey is the number of people with absolutely nothing in the bank has risen on average from 34% to 39%.

Two PIA Western Alliance states — Alaska and New Mexico — are among the 10 with the highest percentage of those with no money at all in a savings account. Sadly, Alaska is number one and New Mexico is sixth.

2017 STATISTICS — NATIONWIDE

AVERAGE % WITH LESS THAN $1,000 — 57% OF THE NATION 2017 MILLENNIALS (18-24) 46%

have no savings

21%

have less than $1,000

15%

have $1,000 to $4,999

5%

have $5,000 to $9,999

13%

have $10,000 or more

2017 MILLENNIALS (25-34)

39%

have no savings

41%

have no savings

19%

have less than $1,000

20%

have less than $1,000

12%

have $1,000 to $4,999

13%

have $1,000 to $4,999

6%

have $5,000 to $9,999

6%

have $5,000 to $9,999

25%

have $10,000 or more

20%

have $10,000 or more

February 2018 | Main Street Industry News | www.pianeia.com | 17

TOP STORIES

SAVINGS HABITS FOR NEBRASKA AND IOWA

2017 YOUNG GEN X (35-44) 38%

have no savings

16%

have less than $1,000

12%

have $1,000 to $4,999

6%

have $5,000 to $9,999

30%

% of residents with $0 saved

28%

have $10,000 or more

55%

% of residents with less than $1,000 saved

2017 OLDER GEN X (45-54) 40%

have no savings

18%

have less than $1,000

12%

have $1,000 to $4,999

6%

have $5,000 to $9,999

25%

have $10,000 or more

2017 BABY BOOMERS (55-64) 33%

have no savings

16%

have less than $1,000

13%

have $1,000 to $4,999

6%

have $5,000 to $9,999

32%

have $10,000 or more

NEBRASKA

Nebraska has the second-lowest percentage of respondents with $0 saved. However, the overall amounts saved in the state is low when you consider that a total of 55 percent of residents have less than $1,000 in savings.

IOWA 30%

% of residents with $0 saved

48%

% of residents with less than $1,000 saved

Iowa has seen a big improvement in its savings rate over the last year. The percentage of residents with $0 saved fell from 36 percent in 2016 to 30 percent. And more than half have $1,000 or more in savings — compared with about one-third in 2016.

2017 SENIORS (65+) 32%

have no savings

14%

have less than $1,000

9%

have $1,000 to $4,999

5%

have $5,000 to $9,999

39%

have $10,000 or more

Source: MSN Money

February 2018 | Main Street Industry News | www.pianeia.com | 18

TOP STORIES

The U.S. Department of Justice Drops MetLife TooBig-to-Fail Fight The suit is going to be dismissed. The U.S. Department of Justice and MetLife have both agreed they will seek to dismiss the government’s appeal of a Federal District Court Judge’s decision that MetLife should not be designated as a systemically important financial institutions also known as too-big-to-fail.

Since AIG and GE Capital have been removed by the Financial Stability Oversight Council (FSOC) as too-big-too-fail and will not be subject to enhanced financial regulations. That means the only non-banking company left on the list is Prudential.

Treasury Secretary Steven Mnuchin said this is another move by the Trump administration

to ease the Obama-era business regulations.

“I am pleased that the Justice Department has settled the MetLife case, consistent with the recommendation by a majority of FSOC voting members. I will be working with the Council to clarify and revise the non-bank designation rule and guidance,” he said.

The FSOC was formed in the Dodd-Frank Act after the Great Recession and was designed to make sure the nation’s largest financial institutions, banks and businesses could not collapse and have significant impact on the U.S. economy like AIG did and like banks did in the recession.

Critics said the FSOC applied its power in an inconsistent way.

By the way, expect Prudential to argue its way out of the too-big-to-fail designation in the next few months.

Source: Insurance Journal

February 2018 | Main Street Industry News | www.pianeia.com | 19

BE Y R R WO EE! FR

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 high-touch 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

Carrying you into the future.

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

Rain and Hail, the partner your growers deserve.

Join our team today.

800.776.4045 | www.RainHail.com

This institution is an equal opportunity provider and employer.

February 2018 | Main Street Industry News | www.pianeia.com | 20

PEOPLE WHO EARNED THIS ALSO EARNED MORE

30,900 MORE OF THESE

PER YEAR.

If you’re looking to jump start a new career or make more with the one you are in, education is your best investment. Now, more than ever, it is important to invest in your greatest assets— yourself and your people. According to The National Alliance Producer Profile, commercial lines producers with the Certified Insurance Counselor (CIC) designation earn 30% more than those without the designation. To learn more about the CIC Program, call or visit us on the web.

The Official Sponsor of Insurance Professionals The National Alliance for Insurance Education & Research www.TheNationalAlliance.com or call 800-633-2165

TOP STORIES

TOP BUSINESS WORRIES 2018 February 2018 | Main Street Industry News | www.pianeia.com | 22

TOP STORIES Done in October and November of last year, the survey checks in with risk managers, underwriters, brokers and others in the insurance industry. Super big business is the largest portion of responses at 53%. Next is small business at 25% and midsize enterprises are 22%.

For big business, the survey said 42% named business interruption as the top concern.

Cyber incidents took a close second at 40%.

That’s a long way up from finishing 15th just five years ago. Ironically, cyber incidents also ranked as the most feared cause of business interruption.

That’s a first.

Placing third is natural disasters and the report made a note of the $135 billion in losses — with maybe more to come — in 2017. Most of that came from hurricanes Harvey, Irma and Maria.

Small and medium businesses had similar results and — at 47% — those two categories account for almost half of the businesses surveyed. For small businesses business interruption also ranked at the top. Cyber was second and natural disaster third followed by market developments and changes in legislation.

Medium-sized firms picked cyber as the numberone concern and business interruption is second.

Natural catastrophes, fire, explosion and market developments rounded out the top worries.

By the way, small and medium-sized businesses are defined as those with annual revenue of less than $300.8 million.

The seventh annual Allianz Global Corporate and Specialty business worry survey is out. The Allianz Risk Barometer: Top Business Risks for 2018 says business interruption is the top worry but a growing concern — as it has been in the past few years — is cyber attacks and incidents.

All you’ve just read is based on a global view.

In the U.S. cyber concerns are the top worry followed by business interruption and natural catastrophes.

Source: Business Insurance

February 2018 | Main Street Industry News | www.pianeia.com | 23

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.

2018 CISR Designation CIC Designation Mr. Mitchel Lee Graybill CIC, CISR Millhiser Smith Agency, Inc. Cedar Rapids, IA Ms. Kimberly A. Hall, CIC Nationwide Insurance Des Moines, IA

Ms. Darcy Lynn Huff CISR Elite Blair Insurance Agency Missouri Valley, IA

CISR Elite Designation Ms. Samantha Trost CISR Elite PDCM Insurance Waterloo, IA Ms. Elizabeth Smith, CISR Millhiser Smith Agency, Inc. Cedar Rapids, IA

February 2018 | Main Street Industry News | www.pianeia.com | 24

2018

PIA NE IA UPDATE

February 2018 | Main Street Industry News | www.pianeia.com | 25

PIA NE IA EVENTS

Upcoming Events Calendar 2018 For information and to register Click Here or call (402) 392-1611.

Date

Class/Webinar

Where

When

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

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

March 7, 2018

CISR: Elements of Risk Management

Davenport

Saint Ambrose University

March 12 - May 4, 2018

MERG: Make Your New Employee A Winner

Online

Online Course

March 12 - 12, 2018

MERG: Personal Lines Coverage Basics

Online

Online Course

February 2018 | Main Street Industry News | www.pianeia.com | 26

PIA NE IA EVENTS March 14 - 16, 2018

CIC: Life & Health Institute

West Des Moines

Holiday Inn Hotel & Suites

March 15, 2018

Additional Insureds: The Quandry

NE/IA

Webinar: 8:00AM - 11:00AM

March 20, 2018

Regarding Ethics (NE)

Nebraska

Webinar: 12:00PM - 3:00PM

March 21, 2018

**LAST TIME** Construction Defects: Property Damage and the ISO CGL

NE/IA

Webinar: 12:00PM - 3:00PM

March 21, 2018

CISR: Insuring Personal Residential Property

Des Moines

Hilton Garden Inn Des Moines/Urbandale

March 22, 2018

**LAST TIME** FLOOD INSURANCE

NE/IA

Webinar: 8:00AM - 11:00AM

March 27, 2018

Commercial Property Claims that Cause Problems

NE/IA

Webinar: 1:00PM - 4:00PM

March 28, 2018

**LAST TIME** Commercial Liability Endorsements To Watch Out For

NE/IA

Webinar: 8:00AM - 11:00AM

April 4, 2018

Cyber Liability - the 21st Century Peril

NE/IA

Webinar: 12:00PM - 3:00PM

April 5, 2018

Insuring the Building Project - Builders & Risk Installation Coverage

Nebraska

Webinar: 8:00AM - 11:00AM

April 9 - June 8, 2018

MERG: Commercial Lines Coverage Basics

Online

Online Course

April 10, 2018

CPIA 1: Position for Success

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

April 11, 2018

CPIA 1: Position for Success

Omaha

Paul Davis Restoration

April 11, 2018

Street Level Ethics

NE/IA

Webinar: 12:00PM - 3:00PM

Apr 11 - 13, 2018

CIC: Commercial Casualty Institute

Lincoln

Marriott Courtyard

April 17, 2018

CISR: Insuring Commercial Property

Hiawatha

Kirkwood Linn Regional Center

April 19, 2018

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

NE/IA

Webinar: 1:00PM - 4:00PM

April 19, 2018

CISR: Commercial Casualty 1

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

April 24, 2018

A Walk Around the Farm - Farm Property Considerations

NE/IA

Webinar: 12:00PM - 3:00PM

April 25, 2018

CPSR: Commercial Property

Kearney

Holiday Inn Express

May 8 - 9, 2018

Ruble: Graduate Seminar (IA)

West Des Moines

Holiday Inn Hotel & Suites

February 2018 | Main Street Industry News | www.pianeia.com | 27

PIA NE IA EVENTS May 16, 2018

CISR: Agency Operations

Davenport

Saint Ambrose University

May 22, 2018

CISR: Personal Lines Miscellaneous

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

May 30 - June 1, 2018

CIC: Commercial Property Institute

Omaha

Omaha Marriott Hotel

June 7-8, 2018

PIA Annual Convention

Omaha

Omaha Marriott Downtown at the Capitol District

June 11 - July 27, 2018

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

Online

Online Course

June 19, 2018

CISR: Agency Operations

Hiawatha

Kirkwood Linn Regional Center

June 20 - 22, 2018

CIC: Commercial Casualty Institute

Cedar Rapids

Cedar Rapids Marriott

June 27, 2018

CISR: Elements of Risk Management

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

July 11, 2018

CISR: Commercial Casualty 2

Davenport

Saint Ambrose University

July 18, 2018

CISR: William T. Hold: Advanced Learning Seminar

Des Moines

Hilton Garden Inn Des Moines/Urbandale

July 18 - 20, 2018

CIC: Commercial Property Institute

West Des Moines

Holiday Inn Hotel & Suites

August 8, 2018

CPSR: Systems, Operations & Procedures

Omaha

Paul Davis Restoration

August 22 - 24, 2018

CIC: Agency Management Institute

Lincoln

Marriott Courtyard

August 22, 2018

CISR: Insuring Personal Residential Property

Hiawatha

Kirkwood Linn Regional Center

August 28, 2018

CISR: Commercial Casualty 2

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

September 12, 2018

CISR: Personal Lines Miscellaneous

Davenport

Saint Ambrose University

September 17, 2018

CPIA 2: Implement for Success

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

September 26, 2018

CISR: Personal Lines Miscellaneous

Hiawatha

Kirkwood Linn Regional Center

October 2, 2018

CISR: Insuring Commercial Property

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

October 3 - 5, 2018

CIC: Commercial Multiline Institute

Cedar Rapids

Cedar Rapids Marriott

October 16, 2018

CPIA 2: Implement for Success

Omaha

Paul Davis Restoration

February 2018 | Main Street Industry News | www.pianeia.com | 28

PIA NE IA EVENTS October 17 - 19, 2018

CIC: Commercial Multiline Institute

Omaha

Omaha Marriott Hotel

October 25, 2018

CISR: Insuring Commercial Property

Davenport

Saint Ambrose University

November 6, 2018

CISR: Commercial Casualty 1

Hiawatha

Kirkwood Linn Regional Center

November 13, 2018

CPIA 3: Sustain Success

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

November 14 - 16, 2018

CIC: Personal Lines Institute

West Des Moines

Holiday Inn Hotel & Suites

November 14, 2018

CISR: Dynamics of Service

Des Moines

Hilton Garden Inn Des Moines/Urbandale

November 16, 2018

CPIA 3: Sustain Success

Omaha

Paul Davis Restoration

52 MILLION 3,600 970 ACRES.

AGENTS.

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.

RCIS4061 – Main Street Industry News Half Page Ad – 7.5 x 4.75

February 2018 | Main Street Industry News | www.pianeia.com | 29

The PIA Branding Program

Advertising that helps set PIA members apart from — and above — their competition. �������������� ���������������

�������� ���������� ������

������������� �������������������

������������� ����������� ������������

���������������

����������������� ���������������� ������������������������������� ��������������������������� �������������������������������������� ����������������������������������� �������������������������������� ��������������������������������� ���������������������������������� ���������������������������������� �����������������

������������������������������ ���������������������������� ����������������������������������� ������������������������� ����������������������������� ��������������������������������� ������������������������������� ������������������������������

������������������������������������������������������������������� ��������������������������������������������������������������� ��������������������������������������������������������������

���� ��������� ���������� ����� ��� ��� ����

���� ��������� ���������� ����� ��� ��� ����

�� � � ��������������������������������������������������������������������������� ����������������������������������������������������������������������������� ������������������������������������������������������������������������������ ������������������������������������������������

�� � � ��������������������������������������������������������������������������� ����������������������������������������������������������������������������� ������������������������������������������������������������������������������ ������������������������������������������������

�� ����������������������������������������������������������������������������� ����� ��� ������� ��������� ������ ����� ���� ����������� ���� ��������� �������������� �������������������������������������������������

�� ����������������������������������������������������������������������������� ����� ��� ������� ��������� ������ ����� ���� ����������� ���� ��������� �������������� �������������������������������������������������

���������������������������������������������������������������������������� ��������������������������������������������������������������������������������� ��������������������������

���������������������������������������������������������������������������� ��������������������������������������������������������������������������������� ��������������������������

��� ����� ������ ������������� ���������� �������� ��� ������ ����� ����� �������������� ������ �� �������������� ��� ����������� ����� ���� ������� ���� �������� ��� ����� ������� �������� ���� ���� ��������������� ��������������������������������������������������������������������������� ������ �� ������ ������������ ��� ������� ����� ��� ���� ���� ��� ����� ������ ������ ������������������������������������������������������������������������������� ������������� ��� ������ ��� ���������� ���� ����� ���������� ������ ������ ��� ��� ���� ���������������

Local advertising for Local Agents Serving Main Street America

SM

How does a Professional Insurance Agent separate himself or herself from the pack in a crowded insurance marketplace? Simple.

By taking advantage of PIA’s new print advertising program.

Best of all, this powerful branding tool is available free and exclusively to PIA members, as part of their PIA membership. Company sponsorship of the PIA Branding Program is also free.

PIA has created a series of ten print advertisements that PIA members can run in local publications or print as fl yers. These ads focus on the combination of choice and personal support and service that make PIA members Local Agents Serving Main Street America.

Learn More

SM

These attractive ads can be customized with agency logos and contact information and (optionally) a company logo. There are four general agency ads, two homeowners ads, two auto ads and two commercial lines ads, with numerous variations, sizes, color as well as black and white ads, making a total of 227 ads in all.

National Association of Professional Insurance Agents 400 N. Washington St. • Alexandria, VA 22314-2353 (703) 836-9340 (phone) • (703) 836-1279 (fax) www.PIANET.com • piabrandingprogram@pianet.org

Whether you’re a PIA member now, you’re an agent who has yet to join, or you’re interested in company sponsorship, head on over to PIA National’s website to see the ads and get all the details about the PIA Branding Program: www.pianet.com/piabrandingprogram