Industry News

Facing widespread losses from terrorism after the 2001 terrorist attacks, Congress created the Terrorism Risk Insurance Act (TRIA) to ensure the availability of terrorism-related insurance coverage while providing the private insurance industry with certainty regarding the outer limits of the financial risks it is undertaking.

While yet another extension of the terrorism insurance program is being debated in Congress, there are new calls for a similar program for cyber risk. Some suggest that now Congress should consider a similar mechanism to address cyberattacks, especially given that cyber activity has increased as a part of the global economy and demand for insurance coverage has risen.

READ: A federal backstop for insuring against cyberattacks?

The U.S. Department of Labor has announced a final rule for overtime pay under the Fair Labor Standards Act (FLSA).

Here are the main points to know:

• raising the “standard salary level” from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full-year worker) (this is the amount that was in the proposed rule on which PIA commented earlier this year);
• raising the total annual compensation level for “highly compensated employees (HCE)” from the currently-enforced level of $100,000 to $107,432 per year;
• allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices (this also reflects the proposed rule that was issued earlier this year); and
• revising the special salary levels for workers in U.S. territories and in the motion picture industry.

The DOL says the new rule will make 1.3 million American workers newly eligible for overtime pay under the FLSA.

PIA members can sell the same great PIA cyber insurance coverage that many have already purchased for their own agency.

PIA’s cyber insurance is the first cyber insurance program tailor-made for small and medium-sized businesses. The PIA enhanced cyber insurance policy covers both first- and third-party loss for the most common cyber risks such as social engineering, funds transfer fraud, ransomware, network interruption, data breach, network security, and media liability. In addition to the seven coverage parts, PIA members’ clients are provided with special PIA enhancements and reduced rates compared to ABAIS’s standard program for social engineering coverage.

PIA members who sell the PIA cyber insurance receive 12.5% in sales commission.

Getting started is easy. Start protecting your clients today.

Need more information? Attend a webinar on October 2 at 2 PM ET.

Haven’t purchased cyber insurance for your agency yet? Contact your local PIA affiliate.

There has been a widespread easing of rates for both individual and small-group Affordable Care Act (ACA) markets, according to state rate filings. A report from the Kaiser Family Foundation credits the easing of prices to innovations such as reinsurance programs, which it said have “proven popular across the ideological spectrum.

In Washington state, for example, 13 health insurers filed an average proposed rate increase of 0.96% for the 2020 individual market, a record low. Montana’s three insurers providing coverage on the individual market proposed average rate decreases of at least 6.7 percent for 2020. Proposed rates in Delaware, which has only one carrier statewide — Highmark Blue Cross Blue Shield of Delaware — would go down nearly 6 percent, according to the state Insurance Department. Even in states where individual rates are rising, growth is slowed. There are exceptions. In Louisiana, for example, individual rates are proposed to increase 11.7 percent.

The moderation of rates follows spikes in 2017 and 2018. Health policy experts predict that for 2020, average unsubsidized ACA individual market premiums will only be going up an average of less than one percent nationally.

Many small business owners may not think they need cyber liability coverage, but small businesses are extremely vulnerable to security threats. That’s why PIA is excited that PIA members are now able to sell PIA cyber insurance to their clients!

PIA and ABAIS Insurance Services have worked with Great American E&S Insurance Company (rated A+ by A.M. Best) to create a cyber insurance program that responds to the most common threats facing small and mid-sized businesses.

The PIA enhanced cyber insurance policy covers both first- and third-party loss for the most common cyber risks such as social engineering, funds transfer fraud, ransomware, network interruption, data breach, network security, and media liability. In addition to the seven coverage parts, PIA members’ clients are provided with special PIA enhancements and reduced rates compared to ABAIS’s standard program for social engineering coverage.

PIA members who sell the PIA cyber insurance receive 12.5% in sales commission.

Agents are able to purchase the same PIA cyber insurance for their agency for a significantly reduced rate through their local PIA affiliate producers.

Getting started is easy. Protect your clients today.

WASHINGTON – The National Association of Professional Insurance Agents (PIA National) today announced a partnership with ONE Brand that provides PIA members with a portal that contains marketing materials to use with direct mail and digital advertising services. The PIA DMV: PIA’s Direct Marketing Vault is provided to independent agents as part of the PIA Branding Program (www.piabrandingprogram).

Through the PIA DMV, PIA members can market their businesses using customizable PIA-branded postcard templates that can be mailed utilizing the United States Postal Service’s (USPS) Every Door Direct Mail program or Targeted Direct Mail. Customers have the option to create and distribute a digital suite of ads based on the postcards with their orders.

The Every Door Direct Mail program (EDDM), created by the United States Postal Service, provides a cost-effective way for businesses to saturate a localized area and get their marketing messages directly into the hands of consumers and, optionally, local businesses. Agents can use a digital mapping tool to select postal routes and filter down chosen routes based on preferred demographics such as location, income, age, type of household, and more. Marketing messages are then delivered to “every door” on the postal route.

PIA members who would like to use a more targeted approach can send personalized, Targeted Direct Mail instead. Customers can provide their own mailing list, purchase a mailing list from ONE Brand, or select a combination of the two. Purchased lists are targeted to ideal audiences based on preferences such as geography, age, gender, income level, and more.

“Finding new clients in an increasingly competitive environment can be challenging for independent agents,” said PIA National President Keith Savino, CPIA, of Mahwah, New Jersey. “PIA’s Direct Marketing Vault allows agents to locate their desired customers and create highly targeted postcard marketing campaigns with the option of serving digital advertisements to all postcard recipients. The one-two punch of print and digital advertising served to the same audience promises to elevate PIA members’ marketing acumen to a whole new level.”

PIA members who send direct mail using EDDM or Targeted Direct Mail can maximize their impact by adding-on targeted digital advertising to their order. The direct mail piece is turned into a suite of digital ads. Digital ads are delivered via geofencing software to mailed recipients’ computers and smart devices.

“Creating marketing materials for your business can be time consuming and expensive,” said PIA National Director of Marketing and Affiliate Relations Dana Anaman. “We wanted to reduce some of the heavy lift for PIA members and create eye-catching, PIA branded postcard templates that can easily be modified to highlight the services of your agency. The postcards come in different sizes, which allows you to use EDDM or Targeted Direct Mail.”

The postcard templates are free and can only be accessed in the PIA DMV: PIA’s Direct Marketing Vault.

“We have found that coupling digital ads with Every Door Direct Mailings and Targeted Direct Mailings allows our customers to deliver integrated multi-touch campaigns to the consumer,” says Myke Hanna, Director of Strategic Partnerships at ONE Brand. “Our advanced geo-fencing software enables us to deliver ads to the right person at the right time.”

In addition to the new direct marketing and digital advertising services now available to PIA members, PIA makes many other marketing materials available through the PIA Branding Program. These include the annual PIA Agency Marketing Guide, social media support, numerous consumer-oriented 1-pagers answering common insurance questions and an extensive serie

Cyber101 is an educational resource created by PIA and The PIA Partnership to help educate PIA members and their clients about the seven most common cyber risks faced by small and mid-sized businesses, as well as the business practices and insurance coverages that can reduce those risks.

Cyber 101 focuses on seven key areas of risk: fraudulent funds transfer, extortion/ransomware, social engineering, business interruption, data breach/privacy, network security, and website media liability. Agents can learn more about each risk with additional resources such as interactive claims examples that demonstrate loss risks to clients, 1-page PDFs explaining the risk, and 30-minute webinars. PIA agents can also personalize and provide their clients with general cyber educational resources.

Visit Cyber 101 today to gain the knowledge you need about the seven most common cyber risks faced by businesses.

For additional information about The PIA Partnership, please visit www.ThePIAPartnership.com.

Thank you to the current PIA Partnership companies: Central Insurance Company, Encompass Insurance, Erie Insurance, Liberty Mutual Insurance, MetLife Auto & Home, National General Insurance, Progressive Insurance, Selective Insurance Group, State Auto Insurance Companies, and The Hanover Insurance Group.

A popular new mobility option, the electric scooter, is raising questions about insurance coverage. A recent Associated Press article said riders are exposing themselves to liability and are most likely not insured for the damages they may cause. A rider’s personal health insurance — if they have it — could help defray the cost of their own medical bills in case of an accident.

But it’s another matter entirely when a scooter rider hits and injures a pedestrian, damages someone’s property, or causes a car accident. The rider may be held responsible, and most insurance policies currently will not cover those expenses.

“Under the standard insurance policy, there’s most likely a pretty significant gap in coverage,” said Lucian McMahon, senior research specialist for the Insurance Information Institute. “Even if the odds are low, it doesn’t mean that something bad might not happen, and owing people money or compensation for injuries that you caused them can get very, very expensive, perhaps even ruinously so.”

READ: Spotlight on: e-scooters and insurance

Experts say automobile insurance generally doesn’t cover vehicles with less than four wheels. And homeowner’s or renter’s insurance may cover an accident that occurs on a traditional bicycle, but it may not cover motorized bike or scooter trips. Scooter riders are advised to contact an insurance agent to ask how they can get coverage.

Many small business owners may not think they need cyber liability coverage, but small businesses are extremely vulnerable to security threats. And that’s why PIA members are now able to sell PIA cyber insurance to their clients!

PIA and ABAIS Insurance Services have worked with Great American E&S Insurance Company (rated A+ by A.M. Best) to create a cyber insurance program that responds to the most common threats facing small and mid-sized businesses.

The PIA enhanced cyber insurance policy covers both first- and third-party loss for the most common cyber risks such as social engineering, funds transfer fraud, ransomware, network interruption, data breach, network security, and media liability. In addition to the seven coverage parts, PIA members’ clients are provided with special PIA enhancements and reduced rates compared to ABAIS’s standard program for social engineering coverage.

PIA members who sell the PIA cyber insurance receive 12.5% in sales commission.

Agents are able to purchase the same PIA cyber insurance for their agency for a significantly reduced rate through their local PIA affiliate producers.

Getting started is easy. Protect your clients today.

Need more information? Attend a live webinar on July 2 at 2 PM ET.

PIA’s cyber insurance is the first cyber insurance program tailor-made for small and medium-sized businesses. The PIA enhanced cyber insurance policy covers both first- and third-party loss for the most common cyber risks such as social engineering, funds transfer fraud, ransomware, network interruption, data breach, network security, and media liability. In addition to the seven coverage parts, PIA members’ clients are provided with special PIA enhancements and reduced rates compared to ABAIS’s standard program for social engineering coverage.

PIA members who sell the PIA cyber insurance receive 12.5% in sales commission.

Getting started is easy. Start protecting your clients today.

Haven’t purchased cyber insurance for your agency yet? Contact your local PIA affiliate.