Main Street Industry News - May 2013

From PIA National’s President Andrew C. Harris »7

INSIDE How solid is your agency’s personal E&O commitment?

Curtis M. Pearsall »10 Insurers in the Fortune 500 »14 Medicaid & ObamaCare Who Will Take the New Patients? »16 Convention 2013 - Learn & Laugh »21

Cover: © Some rights reserved by Flickr/Aaron McIntyre (Grazing Horse)

May 2013 | Published Monthly

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

?

Did you

know

Did you know that on April 10-11, 2013, PIA members from across the country came to Washington, DC to meet with their Members of Congress as part of PIA’s annual Federal Legislative Summit (www.piafls.com)?

These agents know that laws made in Congress can have devastating effects on their businesses. They also know that PIA has the tools, information and support materials to arm a grassroots movement.

Here are some of the important issues these agents were fighting for: • Crop Insurance • Health Care Reform • National Flood Insurance Program • Regulation of Insurance • Tax and Regulatory Reform To learn how you can become a PIA Grassroots Action Leader, visit www.piagrassroots.com.

PIA will continue to fight for the best interests of professional insurance agents. If you are not a PIA member, please join the fight. 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

Top Stories From the President, Andrew C. Harris | 7 I am very optimistic about the future prospects for independent insurance agents, despite all of the challenges all of us face.

Fitch Ratings Underwriting Profits 2013 Prediction | 8 Fitch says the outlook for property/casualty is stable. It will likely remain so.

April 2013 — Commercial Rates Continue Their Rise | 9 Commercial rates continue their much appreciated rise.

How solid is your agency’s personal E&O commitment? | 10 Here’s a hypothetical scenario: you manage an agency with 10 staff members, eight of whom have a strong commitment to errors-andomissions loss prevention.

TRIA Renewal — The Debate Rages | 12 The insurance industry is worried that the Terrorism Risk Insurance Act — or its current version — will not be renewed at the end of 2014 when it expires.

PIA National — Disaster is Expensive | 13 PIA National says the United States does not have a comprehensive approach to disaster relief.

Insurers in the Fortune 500 | 14 There are 46 insurers in the Fortune 500 in 2013.

Of the 46, there are 11 insurers in the top 100.

brows and thankful that tax season is over and we can move on with our lives.

Medicaid & ObamaCare — Who Will Take the New Patients? | 16 In October of this year people without health insurance and those working for small businesses not offering insurance will begin going to the insurance exchanges established in each state.

Serious Illness — Some Info | 16 Siemens Healthcare took a look at catastrophic illness and at our perception and wants when it comes to serious illness.

Just for Fun Just for Fun — Your Brain & Multitasking | 18 We are overwhelmed by technology.

PIA NE IA Events Upcoming Events Calendar 2013 | 20 Convention 2013 - Laugh & Learn | 21

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

Health Insurers and ObamaCare — Not so Sure | 15 A week ago those of us waiting until the last minute to file were wiping the sweat from our

May 2013 | Main Street Industry News | www.pianeia.com | 4

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Top Stories

From PIA National’s President I am very optimistic about the future prospects for independent insurance agents, despite all of the challenges all of us face. There are many reasons for my optimism, but let me focus on one: Conventional wisdom about agent disintermediation is all wrong.

If you pay attention to some industry pundits — which is always risky — you might think that customers increasingly want to buy insurance policies online. You might come to believe that younger customers really want to transact business online. You could assume that price is the prime motivating factor in insurance purchases. You might even be tempted to conclude that people value insurance agents less.

The trouble with all of that is all of it is wrong!

Andrew Harris, PIA National’s President

In just the past year, there have been several large surveys conducted that reveal that this so-called “conventional wisdom” is incorrect. One of these surveys was conducted by Ernst & Young. Another was conducted by Accenture. Another was conducted by PIA, through our company council, the PIA Partnership.

Ernst & Young found that consumers do not want to do all of their insurance shopping online, they care about more than just price and while some customers may research insurance online, many more express a desire for more personal interaction.

Accenture found that in personal lines, more than 76 percent of consumers express a preference for setting up their auto and home insurance policies in person with an agent. Nearly one-third of respondents aged 18 to 24 said they prefer to obtain a quote in person. And more than two-thirds (68 percent) of respondents aged 18 to 24 said they would be willing to pay more for personalized advice when purchasing an auto or home policy.

This means that our next crop of customers coming up is more inclined to do business with us and value what we offer! Add that to the huge number of baby boomers that are approaching retirement age and definitely need advice and counsel regarding their investment strategies, life insurance and retirement benefits.

The PIA Partnership found that price is not the most important factor. What’s important is what agents are able to do for customers. From the customer’s point of view, what’s important to them is that agents deliver value.

So what is driving the misconception that customers do not value agents? Massive advertising by the direct writers. We need to get the truth out person by person, client by client. Warren Buffett can pay to put a billion geckos on our television screens, but a cartoon character or a disembodied voice will never be there after a Hurricane Katrina or a Superstorm Sandy, personally helping insureds put their lives back together.

Customers come to us for the personal relationship, advice and counsel that direct writers and captives are simply not equipped to deliver. We are the real good neighbor, not only at the time of sale but for each and every small challenge or family disaster. That’s why when honest surveys are conducted, consumers always vote for the value that agents deliver.

Andrew C. Harris President May 2013 | Main Street Industry News |www.pianeia.com| 7

Top Stories

Underwriting Profits 2013 Prediction Fitch says the outlook for property/casualty is stable. It will likely remain so. The rating firm notes that rates have improved quite a bit across most lines of insurance since part two of 2011.

The hitch — says Fitch — is continuing underwriting losses. And the good news is that is causing rates to rise and will keep them up through at least the end of 2013. Premium growth — the prediction goes — will remain “favorable” and by the end of the year we’ll see a 99.5% combined ratio.

Fitch’s prediction has underwriting generating a profit for just the fourth time in 35 years.

The ratings company’s big worry is profits.

Better underwriting results means more profit but investment income continues to be problematic. Yields from investments continue to drop and the return on surplus for 2013 — so far — is below 7%. n

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

Top Stories

April 2013

Commercial Rates Continue Their Rise Commercial rates continue their much appreciated rise.

April’s composite rate rose 5% according to MarketScout’s monthly report. It’s the same jump we saw in March.

MarketScout CEO Richard Kerr said, “The market is bumping along in a continued slow but steady path towards overall increases. For the rest of 2013, we expect some months with lower composite increases than prior months but the general direction of rates will be upward, unless new capacity enters the market.”

In the April report Kerr also noted Berkshire Hathaway’s entry into the commercial insurance market and the four executives leaving AIG to join the company. He says it could impact commercial insurance in the future.

“No one other than Berkshire and the crew of executives who just departed AIG know for sure what the Berkshire plan includes. Original speculation was they would be building a large non-admitted insurer. Some insurance company executives now speculate Berkshire may also have plans to launch a new multi-line admitted underwriting company,” Kerr said.

And then he added, “If the plan is to start a large E&S company, it could have an impact on pricing.

If the plan includes an admitted primary market strategy, rates in that area could be impacted as well. Of course, all of this is speculation and

the direction of rates, be it up or down, depends on what Berkshire’s pricing strategy becomes.

Historically, Berkshire has proven to be a very sound underwriting company so it is doubtful they will price their products inappropriately.”

Whatever happens, Kerr said the future is bright for both Berkshire and AIG in the P&C market and that’s good news for brokers and agents and consumers.

April increases by class: Commercial Property

Up 6%

Business Interruption

Up 3%

BOP

5%

Inland Marine

3%

General Liability

4%

Umbrella/Excess

5%

Commercial Auto

5%

Workers’ Compensation

6%

Professional Liability

3%

D&O

3%

Medium accounts averaged 7% increases and jumbo accounts fell from 5% last month to an increase of 3% in April.

Personal lines increases were 3%. That’s down a point from March’s 4%. n

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

Top Stories

How solid is your agency’s personal E&O commitment?

Defining The Commitment

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

Self-assessment questions can include: • Are you confident and comfortable with your knowledge of the products you are responsible for?

• Are you honest with your customers and prospects in answering their questions and explaining the coverages they do or don’t have?

• Do you make a concerted effort to understand your clients’ needs?

Here’s a hypothetical scenario: you manage an agency with 10 staff members, eight of whom have a strong commitment to errors-andomissions loss prevention. The other two just don’t seem to have the necessary commitment.

One day, an E&O claim is made against your agency. If you had to make an educated guess, which employee(s) do you think are alleged to have made the “error or omission?”

If you believe one or both of the two employees who are somewhat lacking in their commitment are the likely focal point of the summons and complaint, you are probably right. In some respects, an agency’s E&O commitment is like a chain – only as strong as its weakest link. To improve the overall strength of the chain, it is crucial to strengthen that weakest link.

Following the “agencies don’t make mistakes, people do” line of reasoning, a good starting point is for each agency staffer to perform a self-assessment of his or her personal E&O commitment. How strong does each employee feel about their commitment to meeting agency expectations and to doing their job in a professional and ethical manner?

• Do you promptly advise your customers when you will be unable to provide them with the requested coverage?

• Are you using your agency management system in the manner expected by the agency and consistent with how other agency members are using it?

• Are you taking the necessary time to ensure all documentation is performed timely and professionally?

• If you are not in the office tomorrow and a co-worker looks into one of your files, will he or she understand the notes you entered?

• Are you documenting back to customers the essence of their conversations with you to ensure there are no misunderstandings?

• Are you securing the sign-off from customers on those coverages/options they are rejecting?

• Are you following up on direct-bill non-pay notices even though the agency does not want that task performed?

• When you move a customer’s coverage to another carrier, are you advising the customer

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

Top Stories of the areas where the “new” coverage is more restrictive than the prior coverage?

• If your agency has a procedures manual, are you performing tasks the way they are expected to be performed?

• Are you signing a customer’s signature to an application or other key document?

• Do you provide advice even if you are unsure it is correct?

• Are you looking for ways to educate your customers to help them understand how their insurance program will perform when a loss occurs?

These are just some of the key questions that must be answered by every staff member and includes virtually all levels within an agency.

While many agencies would think solely of the producers and CSRs, receptionists and claims staff are also generating E&O claims through the manner in which they interact with customers and via the way they perform (or don’t perform) various tasks. Thus, any assessment should require these staff members to answer the questions, too. How these questions are answered has the potential to enhance the E&O culture of the agency or detract from it.

A Positive Result If you had answered these same questions a year ago, how would you have “scored?”

Do you believe you made progress over the last year? A recent industry survey asked the question, “Is your agency’s E&O culture and commitment stronger today than it was last year at this time?”

Survey results indicated that 85 percent of the agencies responding reported an improvement over the previous year, with 70 percent of that 85 percent indicating a substantial improvement was made – a positive result indeed!

Those agencies deserve a huge pat on the back. If you asked each of those agencies how they did it, there’s a very good chance you would hear “one person at a time.” Many agencies probably went through the process of ensuring that staff members were aware of the agency expectations and used tools, such as auditing, to verify how well those expectations were being met.

No Better Time An agency’s staff members must be honest with themselves – or this process will not bear much benefit. For the staff that realizes they are in need of improvement, this is a positive step by itself and should be appreciated and rewarded. The key is for those agency staff members to have a plan to improve their commitment. However, bottom line is that it won’t just happen by itself. Their commitment should be memorialized in a document and reviewed to ensure the expected growth and progress are a reality.

Management must also realize the role it plays. As with most businesses, the culture of the organization starts with management/ leadership. The staff will follow suit to the degree that management “walks the walk” and “talks the talk.” Thus, where it is readily apparent that agency management is committed to a strong errors-and-omissions culture, that message will heavily drive staff behavior.

The E&O world is changing, so there is no better time than now for agencies to understand where they are and what changes are necessary to ensure a greater E&O commitment. Start with the staff by asking them to “look at themselves in the mirror” and make note of what they see that is important. After all, agencies don’t make mistakes, people do. n

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

Top Stories

TRIA Renewal The Debate Rages The insurance industry is worried that the Terrorism Risk Insurance Act — or its current version — will not be renewed at the end of 2014 when it expires. The act was done by Congress after the attacks of 9/11 because the industry cannot take the potential high losses of another attack similar to that of the World Trade Center.

Consumer Federation of America (CFA) head Robert Hunter disagrees. He said the industry has a surplus of $600 billion and that’s more than enough. “The current industry surplus of nearly $600 billion dwarfs the $24 billion (in 2013 dollars) of insurer losses from 9/11. The industry can easily afford the losses of up to $100 billion that the current act would cover,” Hunter wrote.

And Hunter continued, “We understand the desire of the insurers to keep a free reinsurance program and thus further expand their profits, but at a time of record-breaking federal-budget deficits, we question the wisdom of providing multi-billion dollar subsidies to an industry that can easily afford to insure many terrorist events even larger than 9/11.”

Dr. Robert Hartwig, the head of the Insurance Information Institute (I.I.I.) disagrees. He says TRIA keeps insurance companies offering terrorism risk insurance.

Without it, the industry will not offer the product.

Robert P. Hartwig, President of the Insurance Information Institute.

“Private-sector insurers have difficulty pricing terrorism risk insurance

because neither the prospective frequency nor the potential cost of man-made, intentionally violent acts can be accurately assessed before they occur,” he said.

Dr. Hartwig went on to say, “The American Academy of Actuaries years ago estimated that hundreds of billions of dollars in insured claim payouts could be generated by a single terrorist attack in one city, so there is a role for the federal government to play when it comes to sharing in the very substantial risks the nation faces. Strangely, the CFA presumes to have more knowledge about the likelihood and cost of future terrorist attacks than the insurance industry and federal government combined.”

And this is the bottom-line: “Fundamentally, you have to view it this way; if TRIA were not in existence then insurers would simply not write the coverage at all in most instances.”

And while the debate between Hunter and Hartwig continues, Fitch Ratings said without the renewal of TRIA terrorism insurance rates will rise. Even worse, it could cause some insurers to abandon insuring against terrorist acts in large metropolitan areas.

Fitch says that’ll be hard on banking, commercial real estate and construction.

The Real Estate Roundtable said in the 14 months between the 9/11 attacks and Congress passing TRIA over $15 billion in real estate deals were dropped or slowed down because of the lack of terrorist risk insurance.

During that time period — and because of no TRIA — 300,000 jobs were impacted. n

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

Top Stories

PIA National

Disaster is Expensive PIA National says the United States does not have a comprehensive approach to disaster relief. The association believes we need one. Daniel Weiss and Jackie Weidman did a new study and found Congress has spent at least $136 billion on disaster relief since 2011.

Figures from the National Oceanic and Atmospheric Administration (NOAA) also show that costly natural disasters have become more frequent in the last few decades. In the 2010s, the number of weather events causing at least $1 billion in damage increased to more than 10 a year. That compares to an average of two a year in the 1980s.

That spending — however — is spread out and not coordinated.

Weiss and Weidman’s study emphasized that no federal agency — neither the Federal Emergency Management Agency (FEMA) nor the Office of Management and Budget (OMB), for example — kept accurate records of the government’s spending on disaster relief and that the information was not readily available from any source. To calculate their estimate, the authors had to examine the appropriations bills and disaster relief supplementals approved by Congress between fiscal years 2011 and 2013.

Here’s what they found from 2011 to 2013: • FEMA spent $55 billion on general relief and flood insurance.

• The Department of Agriculture spent $27 billion on crop insurance due to the severe drought in the Midwest in 2012.

• The Army Corp of Engineers spent approximately $7 billion on flood control.

On average extreme weather events now cost the United States more than $80 billion per year. And in the last few years the federal government has been picking up a greater share of that tab. States and private insurers are picking up much of the rest.

Often, however, the damage is simply paid for through lost economic activity. A 2010 study by the National Federation of Independent Businesses (NFIB) found 30% of small businesses fail to reopen following a presidentially-declared disaster or emergency.

What It Means to Agents: This latest study illustrates that currently, national disaster public policy is being handled on an “adhoc” basis. Many parts of government have a piece of it, but no one entity is in charge. PIA favors a public-private collaborative effort in designing a catastrophe plan which involves participation by states and local governments, and emphasizes mitigation.

PIA does not support legislation to replace private insurance with government programs.

PIA believes that natural catastrophe risk should be placed in the insurance market, not on taxpayers. n

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

Top Stories

Insurers in the

Fortune

There are 46 insurers in the Fortune 500 in 2013. Of the 46, there are 11 insurers in the top 100. That’s down three from 2012 when 14 insurers were there. One of them is Berkshire Hathaway who moved up the list to number five from number seven. The only companies ahead of Berkshire Hathaway are Wal-Mart and energy firms Exxon Mobil, Chevron and Philips 66.

For insurance companies, UnitedHealth Group leaped five spots from 22 to 17 and Prudential surprised everyone and went from 55 to 29. AIG continues to fall and is 38 — down from 33. n

top 200 on the list with last year’s number in parentheses: RANK

INSURER

5

Berkshire Hathaway (7)

17

UnitedHealth Group (22)

29

Prudential Financial (55)

38

AIG (33)

40

MetLife (34)

44

State Farm (43)

47

Wellpoint (45)

73

Humana (79)

81

Liberty Mutual (84)

84

Aetna (89)

89

New York Life (86)

92

Allstate (93)

94

Mass Mutual (121)

97

TIAA-CREF (88)

100

Nationwide (100)

103

Cigna (130)

112

The Hartford (131)

114

Northwestern Mutual (116)

116

Travelers (112)

118

Aflac (128)

139

USAA (144)

166

Progressive (169)

188

Loews (190)

195

Coventry Health Care (219)

202

Chubb (202)

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

Top Stories

ObamaCare Health Insurers and ObamaCare

Not So Sure

Once the details were finally ironed out, health insurers liked the idea of the Patient Protection and Affordable Care Act. It meant 16 million new customers in the beginning and by 2016 an expectation of 24 million. However, as the law has been put into effect and as the health insurance exchanges are being formed — the majority of them by the federal government — health insurers are getting cold feet.

What that means is that one of the big selling points to the people — more competition and lower rates — may not happen because many states will have insurance markets with little or no competition.

Insurance Journal reports that the heads of the four largest health insurers say they probably won’t be selling insurance on twothirds of the nation’s exchanges. They’ll — instead — just stay in the states where they currently offer products. The reasons vary from no clarity from the federal government on prices they can set to a limit on the number of plans they can sell in each state.

And there is concern that there will only be 7-million new potential customers and not the 16 or more million promised in the original concept. So the exchanges in the larger states like New York, California and Washington will do very well. Smaller states will not.

UnitedHealth is the nation’s largest insurer. It says it’s only going to do 10 to 25 exchanges.

Aetna will do 14. WellPoint — the operator of Blues Cross Blue Shield — say it, too, is going to go with 14 states. Cigna hasn’t set a number but it says the number will be “limited.”

Secretary of Health and Human Services Kathleen Sebelius is not worried. Eventually she sees competition lowering costs and making the exchanges appealing. “What I think we are going to see is a very different kind of competitive market and that competition in and of itself should help moderate prices. We have seen that happen in the market in the last three years and I think that is going to continue.”

Meanwhile, in Oregon Regence BlueCross Blue Shield has pulled out of Oregon’s exchange. It is the state’s largest health insurer. Washington state counterpart Regence BlueShield is also pulling out of that state’s exchange. n

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

Top Stories

Medicaid & ObamaCare

Who Will Take the New Patients?

In October of this year people without health insurance and those working for small businesses not offering insurance will begin going to the insurance exchanges established in each state. Estimates are 7-million people will enroll in ObamaCare in the first year and many million more the second, third and so on.

In the exchanges, Medicaid money will help subsidize the newly insured.

The Patient Protection and Affordable Care Act expands Medicaid and encourage states to expand their Medicaid offering to take care of them. It may be in vain. HealthPocket did a survey of medical providers and found that only 43% of doctors currently accept Medicaid patients.

It gets worse when talking to nurse practitioners and physician assistants. Just 20% of them will take those on Medicaid. You

can see where this is going. Millions more in the country will be insured and no one will take care of them.

The amount of pay for procedures is the hang up. Historically, Medicaid pays lower than what insurers pay and what Medicare pays. Kaiser Family Foundation statistics show Medicaid will pay just 66% of what Medicare pays for the same procedure.

To the credit of the Patient Protection and Affordable Care Act, provisions will raise the amounts paid for Medicaid patients for treatment. However, Kev Coleman of HealthPocket said the increases have not been implemented yet and the increase is just temporary and will last two-years.

“Ensuring there are sufficient healthcare providers available to the newly insured — even those with private insurance — is a major public health challenge right now. But if the current Medicaid acceptance rates hold true for 2014, timely access to care for those relying on Medicaid is likely to become more difficult as enrollees increase for an already inadequate pool of doctors,” he said. n

Serious Illness: Some Info …

Siemens Healthcare took a look at catastrophic illness and at our perception and wants when it comes to serious illness.

The survey found 92% of us say knowing exactly what’s wrong with us is as important as having access to a doctor.

And 78% say they want to have a diagnosis to determine exactly what’s wrong even if there is no cure for the disease.

Here’s more: • 66% are willing to pay for tests for serious illness diagnosis even if it is not covered by insurance.

• 87% say ruling out a diagnosis means no costly treatments.

• 83% say even if test are expensive it will save money in the long run if doctors have the right diagnosis more quickly.

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

Top Stories Another study by the Washington National Institute for Wellness Solutions (IWS) — yes, there is one — found that 90% of middleincome individuals are not prepared financially for a critical illness.

The study is called Middle-Income America’s Perspectives on Critical Illness and Financial Security. It checked with 1,001 people between the age 30 to 66. The an annual household income was between $35,000 and $99,999.

Just one in 10 felt they had enough saved to handle a catastrophic illness. And having one — the institute notes — is highly possible. It pointed out that cancer, heart disease, stroke and Alzheimer’s are common in that age group.

Few us of are financially prepared: • 75% have less than $20,000 in savings.

• 50% have less than $2,000 in savings.

• 25% have no savings at all.

To survive during a health crisis those surveyed said they would: • Use credit cards — 28%.

• Get loans from family members — 23%.

• Get loans from financial institutions — 19%.

The survey says 23% have no idea what they’d do and 30% don’t think they’d ever recover financially from the crisis. n

When considering which crop insurance company to do business with consider the facts. ARMtech Insurance Services has a proven track record for handling your agricultural risk management needs. ARMtech’s infrastructure is solid and stable, from sales and servicing to prompt claims settlement; we have the team in place to accurately and quickly take care of all your crop and livestock insurance needs. ARMtech also offers crop hail insurance products that are second to none.

Selecting the RIGHT crop insurance company is critical to your success. With agents and adjusters located throughout the United States, rest assured your risk management and claim needs will always be handled quickly and efficiently. If you are already an ARMtech customer, thank you for your continued confidence, and if you are not, we would love the opportunity to work with you in the future.

We are dedicated to helping you protect your investment.

That’s The ARMtech Advantage!

Offices in California, Iowa, Minnesota, Mississippi, Nebraska and Texas 800.335.0120 | www.armt.com ARMtech Insurance Services, Inc. is an equal opportunity provider

May 2013 | Main Street Industry News |www.pianeia.com| 17

Just For Fun

Your Brain and

Multitasking We are overwhelmed by technology. It interrupts our daily lives continually. Who hasn’t had an email pop up while reading something like this? Who hasn’t had a text message or a Twitter tweet or a phone call while in a meeting or talking with a friend or family member?

Click on Image to View Larger and Read More Details. (Infographic from Rasmuseen.edu)

Carnegie Mellon University has a HumanComputer Interaction Lab. Yep, someone is researching how all of this is distracting and — worse — sapping your brain power. Not only is all this communication technology distracting you but it is making you dumber.

Dumber? Really?

It’s the multitasking. And the folks at the lab say it’s not really multitasking. When you juggle email, Facebook, Twitter, phone calls and all you are really doing what brain researchers call rapid

toggling between tasks. Or context switching.

The conclusion — though you may think differently and think you can prove it — both tasks suffer. Their theory runs along the lines of economics. In economics when you switch something there is a cost. Change banks. It costs you. The same happens with multitasking.

University of California Irvine’s Gloria Mark did a study on switching and said the typical office worker gets just 11-minutes between interruptions and that it takes 25-minutes to recover from one and get back on task. n

May 2013 | Main Street Industry News | www.pianeia.com | 18

Just for Fun

Click on Image to View Larger and Read More Details. (Infographic from Rasmuseen.edu)

Click on Image to View Larger — (Infographic from Economic Times)

PIA NE IA Events

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

Date

Event

City

State

June 4-5, 2013

Convention

Kearney

NE

June 19, 2013

CISR Agency Operations

Marion

IA

June 26-28, 2013

CIC Commercial Property Institute

Des Moines

IA

June 26, 2013

CISR William T. Hold Seminar

W Des Moines

IA

July 10, 2013

CISR Personal Lines/Miscellaneous

Marion

IA

July 17, 2013

CISR Insuring Personal Residential Property

Johnston

IA

July 17-19, 2013

CIC Personal Lines Institute

Omaha

NE

July 24, 2013

CISR Commercial Casualty I

Davenport

IA

August 7, 2013

CISR Insuring Personal Auto Exposures

Marion

IA

August 21-23, 2013

CIC Personal Lines Institute

Cedar Rapids

IA

August 28, 2013

CISR Insuring Commercial Property

W Des Moines

IA

September 10, 2013

Scholarship Golf Outing

Ashland

NE

September 12, 2013

CISR Commercial Casualty II

W Des Moines

IA

September 18-20, 2013

CIC Commercial Casualty Institute

Lincoln

NE

September 19, 2013

CISR Dynamics of Service Seminar

Johnston

IA

September 26, 2013

CISR Agency Operations

Davenport

IA

October 3, 2013

CISR Insuring Personal Residential Property

Marion

IA

October 16, 2013

CISR Insuring Personal Auto Exposures

Davenport

IA

October 16-18, 2013

CIC Commercial Casualty Institute

Des Moines

IA

November 13-15, 2013

CIC Life & Health Institute

Omaha

NE

November 21, 2013

CISR William T. Hold Seminar

Marion

IA

December 5, 2013

Greater Omaha Committee Christmas Party

Omaha

NE

May 2013 | Main Street Industry News | www.pianeia.com | 20

Be a Part of the Fun! Convention Hotel Facility (you must register yourself for accommodations)

Holiday Inn Hotel & Convention Center - Kearney

110 South 2nd Ave., Kearney NE 68847 (308) 237-5971

Agent’s Information: Name: _____________________________________

Company Name: ___________________________

Address: ___________________________________

City/State/Zip: _____________________________

Phone: _____________________________________

E-mail: ____________________________________

Golf Outing at Awarii Dunes:

q $85/Members

**Limited to the first 80 registrants**

No. of Players: ________

Name(s) of Players: __________________

Evening of Comedy & Trade Fair Past President’s Breakfast AM & PM Seminars Achiever’s Luncheon

__________________

q $35/Members q $15/Members q FREE/Members q $25/Members

q $95/Non-Members __________________ __________________

q $45/Non-Members q $25/Non-Members q $55/Non-Members q $25/Non-Members

Total for all Events/Classes you plan to attend: $_______________ Cancellations received 5-10 calendar days before convention will incur a $25 non-transferable fee. Cancellations received 2-5 calendar days before will incur a $75 non-transferable fee. If you cancel the day before or fail to show up for any events, registration fee is forfeited; no exceptions.

Payment Information: Amount Enclosed: _____________ q I’m Sending a Check q Credit Card No. ____________________ Approval Signature: _____________________________________ Exp Date: ________________________ Return with payment to:

PIA of Nebraska Iowa 920 South 107th Ave., Ste 305, Omaha, NE 68114 FAX: (402) 392-2228 Questions? Email Jenn at frontdesk@pianeia.com Register Online at pianeia.com

Don’t Be Left Out! Golf & Entertainment Day — Tuesday, June 4th

The morning starts out with …

Golf Outing at Awarii Dunes Golf Course: www.awariidunes.com Awarii Dunes Golf Course 592 S Road Axtell, NE 68924 (308) 743-1111 **5 miles south of the Kearney Holiday Inn**

$85 members/$95 non-members **Includes two drink tickets.

**Limited to the first 80 registrants** Awarii Dunes Golf Club is an 18 hole championship course measuring approximately 7,000 yards. It was built on sand hills created by nature, not man. Awarii means “windblown” in Pawnee and refers to the majestic winds that blow through, around & sometimes up & over the dunes.

Registration begins at 11:00 am Shot Gun Start is at 12:00 pm

The evening brings …

Trade Fair & Evening Entertainment at Holiday Inn & Convention Center Holiday Inn & Convention Center - Kearney 110 S 2nd Ave Kearney, NE 68847 (308) 237-5971

$35 members/$45 non-members Trade Fair begins at 6:00pm **Golf Prizes will be awarded at 6:30pm

Representatives of numerous businesses that support our association are eager to visit with you. Refreshments and hors d’oeurves will be available as you mingle with the crowd and make the rounds of the exhibit booths. Be sure to bring plenty of business cards and make the most of this opportunity to make new contacts and strengthen established relationships.

Evening Comedy Show begins at 7:30pm

After a little mingling, relax and enjoy the comedic styling of Gayle Becwar! His quick wit, sharp memory, and likable ad-libbing style will have you in stitches! Becwar recently taped for HBO’s Comic Relief and for Showtime’s Funniest Man in America Contest, where he scored big to thundering applause. The Associated Press said it best: “More than just a magician, Gayle Becwar is a complete entertainer.”

Hotel Facility: Holiday Inn & Convention Center, Kearney NE

You are responsible for making your own hotel reservation by contacting the Holiday Inn Hotel & Convention Center at (308) 237-5971 and requesting the group name “Professional Insurance Gayle Becwar Agents” for our special rate of $92.95 (Suites - $159.95). A block of rooms have been reserved for June 4-5, 2013. The special room rate will be available until May 7th or until the group block is sold-out.

Event Attire:

For Tuesday’s golf outing, appropriate golf attire please.

For Tuesday evening & Wednesday, the attire is Business Casual.

Be Entertained & Be Informed: Laugh & Learn with PIA!

Education Day – Wednesday, June 5th

Past President’s Breakfast - 7:00 am $15 members/$25 non-members

Everyone is welcome to join us to Honor Past Presidents.

Morning Session

FREE for Members / $55 Non-Members with PM Seminar

The Latest in E&O

3 P/C CE hours (applied for)!

Morning Session – 8:30 am **Registration begins at 8:00 am**

Every year, the Agents E&O landscape seems to take some new twists. This 3 hour loss control seminar will take a look back in time and review what has changed over the years. Included will be extensive discussion on the major E&O issues that agents face and the new plaintiff’s that are bringing litigation against today’s agent. A series of best practices will be provided to help agents face these various challenges. Throughout the session, actual E&O cases will be used to enhance the understanding of the material.

Curtis Pearsall, CPIA, CPCU, AIAF, ARM, AU - Utica, NY

Curt is the President and Founder of Pearsall Associates Inc., a Risk Management Consulting firm specializing in helping agents protect themselves. He is the former SVP of Utica National’s Agents E&O program where he oversaw their Underwriting, Marketing Services and Claims divisions from 1987 to 2009. Curt regularly provides free E&O tips for agents on his blog www.agentseotips.com

Every agency wants to save money.

Earn a 5% credit—up to a maximum of 10% credit applied to your Utica premium by attending this seminar! There is no minimum premium threshold for an account to be eligible for the credit, which will be applied after the application of any schedule rating modifiers.

Total Staff Size and Who Needs to Attend 1-3 staff size 4-10 staff size 11-20 staff size 21+

> 1 principal/office manager or CSR need to attend > 1 principal/office manager and 1 CSR need to attend > 1 principal/office manager and 2 CSRs need to attend > 20% of staff need to attend

Achievers Luncheon - 12:15 pm – 1:45 pm

$25 for Members / $25 Non-Members PIA Vice President of Federal Affairs, Mike Becker, will be fresh off of Capitol Hill with the latest news about insurance issues affecting you and your agency! Not to mention great stories and gossip from the Hill! Also, find out who is “Agent of the Year,” “Marketing Rep of the Year,” and “Company of the Year!” Meet the winner of the $1000 PIA Scholarship!

Afternoon Session

Public Entities & Municipalities

Mike Becker

3 P/C CE hours (applied for)!

Afternoon Session – 2:00 - 5:00 pm

Learn everything you need to know about producing and servicing public entities; including municipalities, school districts and other tax-funded organizations. The presentation will cover the following topics: • The myths surrounding public entity purchasing.

• What defines an organization as a public entity?

• Standard coverage lines as they apply to public entities & unique coverage lines required.

• Statutory immunities and how they change insurance coverage.

• How sunshine laws affect the sales process.

REMEMBER Register Online pianeia.com

• The pluses and minuses of public entity pools.

Monte Giddings, CIC, ARM – Leawood, KS

Monte has 31 years of experience in Property/Casualty risk management and insurance solutions. In 1978 he entered the insurance industry as an underwriter for Aetna Life & Casualty, learning the technical side of the business before crossing over to the agency side. He has been both an account executive in major accounts and Vice President of Operations for two national brokerage houses before becoming an agency owner. Monte specializes in business analysis, Property/ Casualty insurance program design, strategic risk management, and total cost improvement.

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

Cover Overhead Expenses With The PIA Trust

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

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

PIA SERVICES GROUP INSURANCE FUND

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

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

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

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

Insurance Program Administered by Lockton Risk Services.