Industry News

The three-day federal government shutdown ended with Monday’s compromise in Congress extending funding until February 8.

On Monday January 22, the Senate agreed 81-18 to end debate, approving a temporary funding plan through Feb. 8—the culmination of days of deal making that unfolded as both parties traded blame for the government closure that began at 12:01 a.m. Saturday. Senate Minority Leader Chuck Schumer said he and Senate Majority Leader Mitch McConnell had “come to an arrangement.” Later Monday, the House passed the continuing resolution 266-159, and President Trump signed it. PIA issued a statement.

This leaves almost three weeks for the parties to resolve deep differences on the issue of immigration, the major stumbling block that led to the three-day shutdown.

The National Flood Insurance Program (NFIP) did go into technical shutdown during the three days, but it has been reauthorized until February 8. During the three-day shutdown, FEMA had requested that agents and other industry professionals begin implementing its guidance.

A government shutdown would not have affected payment of flood insurance claims, and the insurance that people have would remain in effect. Where the effect of a shutdown is felt is with real estate closings, where lenders require flood insurance. The National Association of Realtors estimated in a 2011 study that the inability to write new policies affected 1,332 homes sale closings per day, or roughly 40,000 per month. The association derived the estimate from a 33-day period during the height of summer home sales in 2010 when the NFIP had not been reauthorized.

As part of PIA’s ongoing partnership with The Hartford’s flood insurance program, we are proud to provide PIA members with the latest Flood Agent eNewsletter produced by The Hartford for its flood insurance agents. This month’s contents address important facts about ice jam flooding, the NFIP reauthorization update, and claim capabilities on FloodPro.

In addition to The Hartford’s eNewsletters, PIA members visiting PIA’s Flood Insurance Marketing Support Center can download flyers to help their personal lines and commercial lines clients prepare for floods, deal with the aftermath of flooding, and how to prepare for a visit by an adjuster.

PIA thanks The Hartford for making these excellent materials available to all PIA members, regardless of their participation in PIA’s flood insurance program with The Hartford.

PIA members who want to earn great flood insurance commissions while working with a top-flight Write-Your-Own flood insurance company should consider the PIA/Hartford flood insurance program. To learn more visit www.pianet.com/hartfordfloodinsurance or contact Joseph M. Surowiecki, Jr. of The Hartford at 860-547-5006 or joseph.surowiecki@thehartford.com.

Independent insurance agents need to have the same level of expertise and competence about cyber insurance that they have in other areas of risk and insurance. That’s according to PIA Executive Vice President & CEO Mike Becker, in an opinion article [Putting Cyber in Proper Perspective] appearing in PC360 and the National Underwriter.

“As bad as they are now, cyber attacks are only likely to increase, making it all the more important for independent insurance agents to have the knowledge and the tools they need to help their clients protect themselves,” says Becker. “That’s why PIA National joined together with our carrier council, The PIA Partnership, to unveil a new, comprehensive educational resource: Cyber 101, available to PIA members and agents appointed by carriers participating in The PIA Partnership.”

As part of PIA’s ongoing partnership with The Hartford’s flood insurance program, we are proud to provide PIA members with the latest Flood Agent eNewsletter produced by The Hartford for its flood insurance agents. This month’s contents address the NFIP reauthorization, the Broker of Records process, and spotlights the Increased Cost of Compliance.

In addition to The Hartford’s eNewsletters, PIA members visiting PIA’s Flood Insurance Marketing Support Center can download flyers to help their personal lines and commercial lines clients prepare for floods, deal with the aftermath of flooding, and how to prepare for a visit by an adjuster.

PIA thanks The Hartford for making these excellent materials available to all PIA members, regardless of their participation in PIA’s flood insurance program with The Hartford.

PIA members who want to earn great flood insurance commissions while working with a top-flight Write-Your-Own flood insurance company should consider the PIA/Hartford flood insurance program. To learn more visit www.pianet.com/hartfordfloodinsurance or contact Joseph M. Surowiecki, Jr. of The Hartford at 860-547-5006 or joseph.surowiecki@thehartford.com.

Floodbroker.com can help you convert your clients and prospects into flood insurance clients. PIA has an exclusive partnership with Floodbroker.com, a unique service that makes it easy for your clients and prospects to learn about their flood risks and how much an NFIP policy will cost them—right on your agency’s website.

On Wednesday, January 17, 2018 at 2:00 p.m. Eastern, PIA is holding a FREE WEBINAR so you can learn all about Floodbroker.com and what it can do for your agency’s growth potential. Evan Spindelman, Floodbroker.com president, will show you the website interface and illustrate how easy it is to use. The webinar will conclude with an open Q&A session.

Space is limited, so register today.

Can’t wait for the webinar? Learn more now.

As part of PIA’s ongoing partnership with Floodbroker.com, we are proud to provide PIA members with December’s Floodbroker.com newsletter, a monthly newsletter produced by Floodbroker.com for flood insurance agents.

Shortly before Christmas, Congress adopted a stopgap continuing resolution (CR) averting a government shutdown. As a result, government funding is maintained at current levels through January 19.

“We are pleased that the National Flood Insurance Program [NFIP] was extended as part of the continuing resolution,” said Jon Gentile, PIA vice president of government relations. “This will keep the flood insurance program fully operational through January 19, guarding against interruptions for policyholders and protecting the progress of real estate transactions that require evidence of flood coverage.”

Gentile added that while it is positive that the NFIP will not lapse, it’s vital that in 2018, Congress move away from short-term measures and provide a long-term reauthorization of the program. “We will continue our advocacy in pursuit of that goal,” he said.

Just in time for the holidays, The PIA Branding Program has released a holiday light and fire safety-focused consumer-friendly issue paper with safety information for your clients.

This one-page paper features key information your clients should know to help them stay safe this holiday season. Each paper is available in multiple formats (1) ready-to-send with PIA logo and branding, (2) customizable so that it can be personalized by PIA members with their photo/logo and contact information, and (3) new papers include an infographic for social media. Social media copy is also provided for each paper.

Log on here and download yours! Start sharing this content with your clients today or utilize the text on your agency's website, email, or blog. Happy holidays!

The PIA Branding Program provides a collection of free advertising and marketing materials PIA members can customize and use in their local market and beyond.

Funding for the PIA Branding Program is provided in part by PIA’s Pinnacle Partners: Bankers Insurance Group, Encompass Insurance, Erie Insurance, Nationwide Independent, Progressive Insurance, State Auto Insurance Companies, The Motorists Insurance Group, and Wright Flood.

WASHINGTON — The National Association of Professional Insurance Agents (PIA) has issued the following statement on the House’s passage of H.R. 2874, the 21^st Century Flood Reform Act:

PIA opposed the bill over the provision that cuts the Write-Your-Own (WYO) reimbursement rate paid to insurance companies that participate in the NFIP by 3 percentage points. The WYO reimbursement rate is the vehicle by which agents receive their commissions for selling NFIP policies. Many WYO carriers have stated that, for them to remain in the program, they will pass on the cut to agents through their commissions.

PIA National Vice President of Government Relations Jon Gentile said:

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

“Despite these positive aspects, PIA opposes H.R. 2874 because it contains a provision that will hurt consumers, agents, and the program itself going forward.

“One of the goals of reforming the NFIP is to increase sales of policies, especially preferred risk policies, to put the program on a firmer financial footing. Reducing agent compensation undermines that goal by applying a disincentive for agents to increase sales. Such a cut will force agents who currently sell flood insurance to leave the program, because it will become prohibitively expensive for agents to continue to sell flood insurance, and it will discourage new agents from entering the NFIP policy market.

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

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America ^SM. PIA’s web address is www.pianet.com.

President Donald Trump signed into law a $36.5 billion disaster aid bill that contains $16 billion in debt forgiveness for the National Flood Insurance Program. The relief package, which includes funds for recovery from hurricanes Harvey, Irma, and Maria, was approved by the House on October 12. The package, H.R. 2266, was passed in the Senate on October 24.

PIA issued a statement praising the NFIP debt forgiveness, which will allow the NFIP to continue to pay claims, as it had already reached its borrowing limit. PIA is continuing to work with Congress to provide a long-term reauthorization of the NFIP that recognizes the vital role independent insurance agents play in delivering the program to policyholders. Authorization for the flood insurance program is currently set to expire on December 8.