Industry News

PIA National is running an “Open Letter to Carriers” in the December issue of the National Underwriter. In it, PIA notes that the relationship between an independent insurance agency and its multiple carrier partners is designed to achieve mutual benefit, accomplishing together what the parties cannot alone. We offer to every carrier an open door to be a sounding board for changes they may be contemplating. “Such communication can foster more successful results,” we note. You can read PIA’s ad here.

A federal judge has issued a preliminary injunction blocking implementation of the U.S. Department of Labor’s (DOL) overtime rule. The injunction, issued by Judge Amos L. Mazzant of the U.S. District Court for the Eastern District of Texas, puts a hold on implementation of the rule nationwide. The final rule was to go into effect on Dec. 1.

The rule would expand the pool of employees eligible for overtime by doubling the salary threshold to $47,476. A preliminary injunction is not a permanent order and is subject to modification (including an order making it permanent), or it could be vacated entirely. The DOL issued a statement saying it disagreed with the decision and was “currently considering all of our legal options.”

Prior to the injunction, PIA issued a FAQ on the impending changes.

PIA National has strongly opposed the rule due to its negative impact on small businesses, including independent insurance agencies. We are pleased with the granting of the preliminary injunction before the rule was to take effect. After the injunction was issued, PIA distributed this analysis.

PIA will continue to urge Congress to pass legislation to permanently stop implementation of the overtime rule, and we will continue to monitor judicial activities out of the Eastern District insofar as they affect the future of the rule.

(PIA) is proposing that the Federal Insurance Office (FIO) be repealed.

The election of Donald Trump as president and a Republican majority in both houses of Congress will bring about a unique opportunity to reexamine the regulatory framework for insurance. As part of regulatory reform, PIA is calling on policymakers to fully repeal the FIO.

PIA opposed the creation of the FIO from the outset. In 2010, advocates of federal insurance regulation succeeded in getting the FIO established as part of the Wall Street Reform and Consumer Protection Act (Dodd-Frank)—but PIA, along with the NAIC, fought back attempts to give this office broad authority. In the end, a prohibition on the FIO acting as a regulator of the business of insurance was included.

While over the years the FIO has adhered to this restriction, there have been repeated indications that it favors more federal involvement. Former NAIC CEO Ben Nelson once felt compelled to state that “the FIO does not speak for insurance regulators.” Former Connecticut Insurance Commissioner Thomas Leonardi recently observed, “Since its creation, the FIO has often taken positions in direct contradiction to the views of the state regulators.”

FIO Director Michael McRaith once gave a speech saying that the insurance sector should be treated the same as the banking and securities sectors, prompting a strong rebuke from PIA.

“One should never forget that all insured risks will always be local,” commented PIA National Senior Vice President Patricia A. Borowski at the time. “The United States has an effective and efficient state-based insurance regulatory system that protects policyholders and offers them a broad array of competitive choices from many insurance carriers. To those who want a different system, we simply say they are woefully misguided.”

“If the goal is to eliminate unnecessary federal regulation, getting rid of the FIO makes good sense,” said PIA National Vice President of Government Relations Jon Gentile. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states. PIA will remain vigilant in its efforts to ensure that no new paths to the federal regulation of insurance are created as part of any Dodd-Frank rollback.”

The election of Donald Trump as president and a Republican majority in both houses of Congress will bring about a unique opportunity to reexamine the regulatory framework for insurance. As part of regulatory reform, PIA calls on policymakers to fully repeal the Federal Insurance Office (FIO).

“With Congress poised to significantly roll back key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), we ask that they repeal the FIO,” said PIA National Vice President of Government Relations Jon Gentile. “A June 2013 report issued by the Government Accountability Office (GAO) found the state-based system of insurance regulation helped to mitigate the negative effects of the financial crisis on our industry. This report highlights the unnecessary bureaucracy that the FIO represents.  Our longstanding and robust state-based insurance regulatory regime does not require this level of federal oversight.”

“If the goal is to eliminate unnecessary federal regulation, getting rid of the FIO makes good sense,” Gentile said. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states. PIA will remain vigilant in its efforts to ensure that no new paths to the federal regulation of insurance are created as part of any Dodd-Frank rollback.”

With control of both houses of Congress and the White House, Republicans are likely to concentrate on the broad goals of reducing regulations, cutting taxes, and generally pursuing business-friendly policies that promote economic growth. PIA looks forward to working with President-elect Trump and the 115th Congress to achieve these goals.

National Underwriter Property & Casualty, in partnership with PIA National and Flaspöhler, part of NMG Consulting, will conduct the 2017 National Underwriter/PIA Independent Agent Survey, a project whose findings will provide deep, revealing insight into the challenges, needs, and demographics of independent property & casualty insurance agents across the U.S.

The survey, which launches this week, will be hosted online by renowned intelligence firm Flasphler Research, with which National Underwriter has enjoyed a decade-long editorial relationship. The questionnaire, crafted by NU, PIA and Flaspöhler, will be distributed to NU’s proprietary lists of agents and brokers nationwide as well as by PIA to PIA’s national membership.

The results of this project will be shared in print and online as a data-rich cover feature of charts, graphs and editorial analysis in National Underwriter's February print edition, as well as on PropertyCasualty360.com.

“A survey of this size and scope has never before been attempted, and the findings and insight gained from this project will be a benefit to the industry,” said Shawn Moynihan, National Underwriter's Editor-in-Chief. “Our alliance with PIA in this effort will help us all gain broader perspective on the needs of the people who sell P&C products every day, and will help inform our editorial coverage going forward as we continue to serve them.”

“PIA is pleased to partner with the National Underwriter and Flaspöhler in this groundbreaking survey, which will provide our industry with the most comprehensive and accurate picture of what professional independent insurance agents need to best serve their P&C clients,” said PIA National Executive Vice President & CEO Mike Becker. “Independent agents have achieved an unparalleled track record of success as the preferred distribution system for P&C products. This survey will help them stay on top.”

Four out of five millennials are “optimistic” or “very optimistic” that the insurance industry will evolve to attract the next generation of insurance talent, due to productivity and efficiency gains from technology adoption, according to Vertafore’s second annual “Millennial Revolution” study. PIA examined the research results in an article in PIA Connection.

As a PIA member exclusive benefit with The Omnia Group, we recently created educational webinar tracks for a variety of positions within an agency. The first series which started September 14^th features subjects for those in management roles.

The next webinar in the series titled How to Succeed as a First Time Manager will take place on Wednesday, November 16^th at 2pm EST.

Sign up for one or all of the newly created webinars with Omnia by selecting the track that best suits you.

View the full schedule and descriptions at http://www.omniagroup.com/pia-webinar-registration/ Space is limited so sign up now!

Want to learn more about Omnia as a member benefit?

When first contacting Omnia, PIA members receive a free online, instant assessment or a free custom assessment of an agency employee or prospective employee. Plus, if you buy a package of Omnia Profiles you’ll receive one free.

Get started on your track to success today by calling Carletta Clyatt of The Omnia Group at 800-525-7117, x 1226 or email her at cclyatt@omniagroup.com and be sure to tell her you are a PIA member.

Or visit The Omnia Group website at www.omniagroup.com/pia-members/

/news/insurance-news/2016/register-now-for-the-upcoming-management-track-of-omnia-group-webinars

Many people in the insurance industry—especially agents—have a particular affinity for the sport of golf. That’s why the news of the passing of Arnold Palmer, whom many considered to be among the greatest professional golfers of all time, hit hard. Palmer passed away at the age of 87 on September 25 in Pittsburgh.

PIA National Past President Tom Adderhold of Duluth, Georgia was General Chairman of the PGA Championship in 2011. Tom shares some thoughts on the passing of Arnold Palmer:

“The world has lost one of the true legends of the game of golf, business and life. Arnold Palmer and television turned a game into a mega-million enterprise and influenced the lives of so many people, both in golf as well as the non-golfer. Mr. Palmer established a Legacy to live by: ‘Be a person of principle.’ He liked to say, ‘Success depends less on strength of body than upon strength of mind and character. Winning isn’t everything, but wanting it is.’”

“Mr. Palmer always had time for the fans, the kids and the volunteers. He gave back in so many ways, such as hospitals and scholarships. He was a ferocious competitor, but always a gentleman. He personally answered his own mail and autographed millions of items with a signature that is legible. I hope we all in the insurance world will adopt his legacy and strive to be the best agents in servicing our customers and our industry.”

Tom Adderhold

Past President, PIA National

General Chairman of the 2011 PGA Championship

PIA National issued this statement on the draft of the Financial CHOICE Act (H.R. 5983). The bill was introduced on September 9, 2016 by its sponsor, House Financial Services Committee Chairman Jeb Hensarling (R-TX). It then went to a committee markup on September 13, 2016.

In PIA’s statement, we express serious concerns about the creation of a new federal office called the independent insurance advocate, stating that “we remain unconvinced of the need to create a permanent insurance office in the federal bureaucracy.”

Days before he is set to speak in Washington, D.C. at a Property Casualty Insurers Association of America (PCI) roundtable discussion about international insurance regulation, former Connecticut Insurance Commissioner Thomas Leonardi gave an interview which reminded everyone about his well-deserved reputation for outspokenness.

In a wide-ranging interview with Best’s News Service, Leonardi said international regulators need to be more transparent in developing global insurance capital standards and maintain an open dialogue with the carriers they seek to supervise, as well as U.S. state regulators.

Leonardi is a steadfast supporter of state regulation of insurance. He sounded a warning about the Federal Insurance Office (FIO), a part of the U.S. Treasury Department.  FIO and the Treasury are now in negotiations for a covered agreement with European regulators, who have pushed the U.S. to adopt a system of federal insurance regulation similar to theirs. There are concerns that possible outcomes of these covered agreement talks could threaten the U.S. system of state-based insurance regulation.

“Since its creation, the FIO has often taken positions in direct contradiction to the views of the state regulators,” Leonardi said. “We are seeing this happen right now in the context of the negotiations around the covered agreement.”

“FIO’s approach is one of ‘we’ll let you know what happens’ as opposed to having the state regulators, that are ultimately responsible for prudential regulation of insurers in this country, actively at the table,” Leonardi said.

State regulators need to be involved in the process, Leonardi said, adding that he supports the Transparent Insurance Standards Act of 2016 (H.R. 5143), a bill endorsed by PIA that sets objectives for U.S. negotiators regarding international insurance standards, grants Congress 90 days to approve or reject proposed agreements, and mandates a public comment period.

“The state regulators regulate 6,600 insurance companies in this country and that is not going away anytime soon,” Leonardi said. “It’s really important that the Fed and FIO not enter into an agreement that is not supported by the state regulators. Otherwise you have chaos.”