Industry News

Two innovative PIA National leaders whose agencies have been on the cutting-edge of our industry's digital transformation share their insights in "Digital Destiny," in the January 2015 issue of the National Underwriter.

Stanley G. Logan Jr., an agency principal at Logan Lavelle Hunt Insurance Agency LLC in Louisville, Ky., and a member of the PIA National board of directors, representing PIA of Kentucky; and Keith Savino, a principal with the insurance agency Warwick Resource Group LLC in Warwick, N.Y., ACORD board member and recipient of the PIA National 2014 Excellence in Social Media Award, commented extensively in the article.

"What I hear from our customers is that they like to be with an agent and an agency that is spending the money to be relevant to them," says Logan. "When I talk to my insurance company partners, they are interested in sales. That's still the No. 1 game in town, and they want more and more from us. Having the right tools to do that job is the edge that forward-looking agencies can enjoy, if they're willing to do the homework."

Savino rattles off the technical advancements incorporated in his agency's business plan, but bristles at calling them "tech." "These are just communications tools. I don't see them as 'technology,'" he explains. "Some people don't even view smartphones as 'tech' anymore. I see it as a required part of business; I don't think of it as an advantage as much as a requirement. I challenge people to think differently about that."

"The big challenge is communicating your value to your clients," he continues. "The minute you stop offering a service because you will not implement new business tools, you're intentionally putting up a roadblock to a good customer experience."

Read the full article here.

Senate Action Follows House Passage by One Day; President Obama Expected to Sign the Bill

WASHINGTON – The National Association of Professional Insurance Agents (PIA) praised the U.S. Senate for passing bipartisan legislation [H.R. 26] that extends the Terrorism Risk Insurance Act (TRIA) for six years. Action by the Senate followed by one day passage in the House.

“The message is clear: America will remain insured against acts of terrorism,” said PIA National Executive Vice President and CEO Mike Becker. “PIA commends Congress for its strong leadership in taking this vital action to ensure that America’s businesses will remain protected from financial devastation in the event of terrorist attacks.”

“PIA is very pleased that the leadership of the new Congress made this its first priority upon convening,” Becker said. “The overwhelming votes in both the House and the Senate demonstrate that when it comes to protecting the citizens of the United States against terrorism, there is no partisanship on Capitol Hill. We are hopeful that this forging of bipartisan consensus will serve as a template for dealing with other insurance issues going forward.”

Approval by the Senate by a vote of 93-4 came just one day after the U.S. House of Representatives passed the bipartisan bill on a near-unanimous vote of 416-5. The bill also includes a provision that benefits Main Street insurance agents, the National Association of Registered Agents and Brokers (NARAB II). President Obama is expected to sign H.R. 26 into law shortly.

Despite widespread support, passage of the six-year reauthorization of TRIA hit a roadblock in December 2014 when one retiring senator who was opposed to the inclusion of NARAB II placed a hold on the legislation, preventing a vote.

“This is a victory for consumers, businesses, the American economy and our national security,” said PIA National Director of Federal Affairs Jon Gentile. “It is an example of legislation in which everybody truly wins.”

“Renewal of the terrorism risk insurance program was a top legislative priority of PIA, because the customers of Main Street insurance agents need the certainty that it provides,” Gentile said. “It is an example of what we all can achieve when we work together toward a common goal.”

Notable for PIA, the bill also includes the creation of NARAB II, an independent, non-government, non-profit membership organization based in Washington, D.C. designed to facilitate multi-state producer licensing. PIA supports NARAB II. “NARAB will provide agents with a streamlined multi-state licensing process, while protecting states’ rights and the independent agency system,” said Gentile.

PIA cautions that in accordance with how the legislation is written, the Federal Insurance Office (FIO) should have no role whatsoever in the implementation of NARAB II.

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.

PIA National Immediate Past President Andrew C. Harris is the subject of a major cover article and profile in the September 2014 issue of the National Underwriter.

The profile of Harris looks at how he decided to get into the insurance business 38 years ago (after majoring in biology and chemistry in college), and why he has never regretted his decision. It traces his path from working commercial accounts for Liberty Mutual to his decision to start an independent insurance agency, and the resulting success he has achieved. Harris also shares his views on the challenges facing the agency distribution system. "Our challenge is to show our customers that the money they are paying is well spent, and that the value they're getting is worth it," he says.

The article details Harris' decades-long involvement in PIA, at both the national level and with PIA of New Jersey. He also talks about the need for young agents "to become truly independent and not just join a direct writer," observing that PIA is "uniquely positioned to help brand-new agents starting in the business."

"In my entire insurance history, I have never asked another agent for help on anything and been rejected or denied," Harris said. "As an industry, we are the most incredible, benevolent competitors you can imagine."

Read the full National Underwriter profile of Andy Harris here.

Andrew C. Harris – The Player (National Underwriter September 2014)

All of PIA honored PIA of New Jersey and PIA of New York on both associations’ 75th anniversaries. PIA National President John G. Lee presented PIA of New York with a special commemorative plaque, marking the occasion; while PIA National Immediate Past President Andrew C. Harris presented a plaque to PIA of New Jersey. Both presentations were made this week during a joint convention held in Atlantic City, New Jersey.

“I can still remember all of the problems that were caused by Eliot Spitzer, and his attack on Main Street agents getting contingent commissions,” said Lee. “PIA of New York was at the forefront of our battle against Spitzer as PIA National filed a legal brief opposing Spitzer’s actions. PIA of New York and PIA National worked together—in the courts and also in the court of public opinion—to successfully defend all PIA members.”

Harris thanked his fellow New Jersey agents for the support they provided him as PIA National president. “I always had the unqualified backing and support of PIA of New Jersey,” he said. “PIA of New Jersey has been an organization of strident professionals for 75 years. We were there during 9/11. We were there during Hurricane Sandy. We were there fighting Eliot Spitzer.”

Recently, the CEO of one of the strategic partners who is helping a big online retailer market auto insurance was quoted saying, “Consumers don’t want a relationship with an agent or even a carrier,” and “The consumer is looking for a store or aisle in a store where the shelves are stuffed with every risk management product they need.”

PIA National President John G. Lee takes issue with this in his most recent President's Message. Lee says that contrary to the claims of those who try to market insurance as a commodity, consumers don’t see it that way. They know that insurance is a contract to protect people and their property, and a promise to be made whole in the event of a loss. It’s not something that can be found in a box next to the canned tomatoes at a discount store.

“They can stuff their shelves with whatever they want,” Lee stated. “If you look at the facts as opposed to the hype, consumers want a relationship. Statements to the contrary come from our competitors. What would we expect them to say?”

“Insurance is serious business,” Lee said. “It is not ‘stuff.’”

PIA of North Dakota just had a very successful annual convention last week. The event in Bismarck marked the 50^th anniversary of PIA of North Dakota. PIA National President Johnny Lee delivered the keynote address.

“Throughout the years, there has been no more stalwart PIA affiliate than PIA of North Dakota,” said Lee. “No matter what the issue, we can always count on PIA of North Dakota to ask: ‘Is there any more we can do?’”

“So, on behalf of our entire Association—and every PIA member in the country—I would like to present this plaque in honor of PIA of North Dakota’s 50^th Anniversary,” Lee said. A total of 23 of the 34 living Past Presidents of PIA of North Dakota attended and were acknowledged, along with four original PIA charter members still living.

PIA takes issue in a press release with an assertion made by Michael McRaith, the director of the Federal Insurance Office (FIO), in a recent speech.

In remarks to the Networks Financial Institute’s Insurance Public Policy Summit on March 12, reported by Best’s News Service, McRaith said this: “We need to get past the notion that the insurance sector in the United States should be treated separately than any other sector because of this historic debate going back to 1904.”

“Rather than needing to ‘get past’ opposition to treating the insurance sector separately, advocates of greater federal involvement need to get over the idea that insurance can be regulated the same way the banking and securities sectors are by the federal government,” said PIA National Executive Vice President & CEO Mike Becker.

PIA National Senior Vice President Patricia A. Borowski added, “When Mr. McRaith says the insurance sector should be treated the same as the banking and securities sectors, he is dead wrong, and in conflict with current federal laws, among them the McCarran-Ferguson Act and the Gramm-Leach-Bliley Act (GLBA). The fact that insurance is regulated by our state-based regulatory system is why our sector – and the policyholders it serves – emerged almost completely unscathed from the financial crisis of 2007-2009, in marked contrast to the federally-regulated sectors.”

Read PIA’s full press release here.

PIA Responds to FIO Director’s Speech Advocating Federal Involvement

WASHINGTON — The National Association of Professional Insurance Agents (PIA) takes issue with an assertion made by Michael McRaith, the director of the Federal Insurance Office (FIO), in a recent speech.

In remarks to the Networks Financial Institute’s Insurance Public Policy Summit on March 12, as reported by Best’s News Service, McRaith said this: “We need to get past the notion that the insurance sector in the United States should be treated separately than any other sector because of this historic debate going back to 1904.”

“When Mr. McRaith says the insurance sector should be treated the same as the banking and securities sectors, he is dead wrong, and in conflict with current federal laws, among them the McCarran-Ferguson Act and the Gramm-Leach-Bliley Act (GLBA),” said PIA Senior Vice President Patricia A. Borowski. “The fact that insurance is regulated by our state-based regulatory system is why our sector – and the policyholders it serves – emerged almost completely unscathed from the financial crisis of 2007-2009, in marked contrast to the federally-regulated sectors.”

PIA is disappointed that the FIO, in its recent report to Congress, did not take into account the report issued by the Government Accountability Office (GAO) on June 27, 2013, that found that multiple regulatory actions and other factors helped mitigate the negative effects of the financial crisis on the insurance industry and its policyholders and that state regulators were especially critical in maintaining general stability in the market during the crisis.

“Rather than needing to ‘get past’ opposition to treating the insurance sector separately, advocates of greater federal involvement need to get over the idea that insurance can be regulated the same way the banking and securities sectors are by the federal government,” said PIA National Executive Vice President & CEO Mike Becker. “Insurance is different. Congress recognized this by mandating that the FIO serve a narrowly defined role that does not include insurance regulation, a fact that Mr. McRaith has noted repeatedly in previous congressional testimony.”

“The Dodd-Frank law assigns to the FIO a series of responsibilities involving monitoring that are all advisory in nature,” Becker said. “We agree with Congress’ decision in this regard that our state-based insurance regulatory system is best suited to regulate the business of insurance.”

“Federal law has already defined its relationship with the state-based business of insurance,” Borowski said. “The disagreement is whether we will continue the productive federal-state relationship in insurance as it is currently defined or go the way suggested by Mr. McRaith of a federally-directed industry.”

“One should never forget that all insured risks will always be local,” Borowski added. “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. Needed modernization is accomplished through state-based organizations like the National Association of Insurance Commissioners (NAIC) and the National Conference of Insurance Legislators (NCOIL). Our system protects both the American economy and the global economy. To those who want a different system, we simply say they are woefully misguided.”

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

New risks and high-profile data breaches have opened up a new opportunity for agents and brokers to offer cyber liability coverage. PIA National Senior Vice President Patricia A. Borowski addressed the new opportunity in comments in an article in the March issue of National Underwriter.

“Even among large mid-market insureds, there is a huge uptick that has to happen in terms of their attention to the real scope and detail of this exposure. This is even more the case with smaller commercial accounts,” said Borowski, adding that she believes the tipping point in cyber purchasing will ultimately come not through broker outreach, but by the growing recognition of risk across the business community.

Into the Breach (National Underwriter March 2014)

Linda L. Hughes, CPCU, CPIA, CPIW, passed away last week. Linda was senior Resource Center representative, having joined the Professional Insurance Agents of Ohio (PIA), now PIAA, in 2000. Linda was a highly respected, well-connected woman with a positive, joyful energy. This year marked her 50th year in an industry that became her home, family and passion.

“Those of you who knew Linda’s spirituality and her values know that she felt blessed in her life and career,” said PIAA CEO George W. Haenszel. “When she left the carrier side of the business, Linda told me that she simply wanted to help people. Thankfully, she came to PIAA. She was committed to passing her good fortune on to others and was especially partial to counseling young people at the beginning of their careers. She helped many of us ‘gray-haired’ kids along the way too.”

View PIAA’s tribute page for Linda Hughes here.