Industry News

The date May 4, 1989 will be etched in Gene Galligan's memory forever. On that day his home town Monroe, Louisiana was hit by a catastrophic hail storm. Soon after, Gene's agency was hit by carriers pulling out. But his agency survived, thanks to his PIA colleagues lining him up with a new carrier, when he needed it most.

"Because of our PIA affiliations, we were able to continue in business; from there we were able to plant with other companies," said Galligan "Twenty-six years later, we are still in business and still a member of PIA! From those acts, I realized that PIA agents are not just competitors but part of a family, and I needed to be an active member in that family." Read Gene Galligan's compelling story here.

My PIA Family Helped Me Save My Agency (PIA Connection April 2015)

The picture of millennials as wanting to do everything online continues to be challenged by what they say in surveys. Nearly 40% of the 2,122 people ages 21 to 48 surveyed by a retirement investment firm, Topeka, Kansas-based Security Benefit, say an adviser is a major source for financial information—more than twice the amount who listed the internet as their go-to resource. And people born between the mid-1960s to the early 1990s want in-person education.

Recently, another myth was exploded. It turns out that millennials don't all prefer to do their reading online. A University of Washington study of digital textbooks found that a quarter of students still bought print versions of e-textbooks that they were given for free. Pew studies show the highest print readership rates are among those ages 18 to 29, and the same age group is still using public libraries in large numbers.

Younger Workers Want In-person Education (Employee Benefit News 4/22/15)
Digital Natives Prefer Reading in Print (Washington Post 2/22/15)

PIA National has released testimony for three congressional hearings on insurance matters held over three days this week on Capitol Hill.

On Tuesday, April 28, the Senate Banking Committee held a hearing entitled, "The State of the Insurance Industry and Insurance Regulation." Then, on Wednesday, April 29, the House Financial Services Committee Housing and Insurance subcommittee scheduled a hearing entitled "The Impact of International Regulatory Standards on the Competitiveness of U.S. Insurers." Finally, a hearing was set for Thursday, April 30, in the Senate Banking Committee on Securities, Insurance, and Investment subcommittee on "Examining Insurance Capital Rules and FSOC Process."

PIA's testimony states our support of a modernized state-based insurance system and opposition to any federal regulation or international standards that would destabilize or supplant state-based regulations. In addition, PIA comments in support of transparency, especially by the International Association of Insurance Supervisors (IAIS), which recently voted to close many of its meetings to stakeholders.

PIA expresses concern with the level of transparency in the decision-making process of the Financial Stability Oversight Council (FSOC), as it has the power to designate "systemically important financial institutions" (SIFIs). PIA also cautioned against applying bank-centric standards to insurance companies.

"While banks and other financial institutions profit by actively seeking out risk, insurance companies profit by insuring against risk. Therefore, it is not prudent to attempt to apply bank centric standards to insurance entities, as they are completely different," the PIA testimony states.

Full text of PIA testimony to:
Senate Banking Committee (Apr. 28, 2015)
House Financial Services Committee (Apr. 29, 2015)
Senate Banking Committee (Apr. 30, 2015)

WASHINGTON — Sarah Sun of Klinger & Associates in Germantown, Maryland, was named the 2015 PIA National Customer Service Representative (CSR) of the Year. The award was presented March 27, 2015, by the National Association of Professional Insurance Agents (PIA) and was sponsored by The Hartford.

“Sarah Sun exemplifies what a professional CSR should be,” said PIA National President-elect Rob Hansen. “She goes above and beyond the call of duty to take care of her clients. She is responsible for one-quarter of Klinger & Associates’ commercial line book of business—over 1,350 renewals, plus new clients. Her retention on her book of business over the past nine years is 94%. Sarah has also helped the agency serve a growing number of customers in the Asian community.

Hansen added that when agency principal Bob Klinger was deployed to Iraq for 18 months, Sarah and Bob’s wife ran the office while he was gone. Sarah worked tirelessly to help make sure that the agency continued to operate as normal.

The PIA National CSR of the Year award is given annually to an outstanding agency customer service representative who works for a PIA member insurance agency. Nominations for this award are made by PIA members. The award recognizes a CSR who has improved operations of the agency, served their clients in a unique or extraordinary way and engaged in community involvement and activities to advance the betterment of the insurance industry.

“We congratulate Sarah Sun on being the recipient of this year’s PIA National CSR of the Year award, which recognizes a CSR’s critically important role in an agency,” said Marie Alvarado, assistant vice president of agent and broker engagement at The Hartford and head of The Hartford School of Insurance. “The Hartford is proud to sponsor this award for the eighth consecutive year as part of our commitment to the independent agency channel and the talented staff that serve our customers.”

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 has released its 2015 policy issues of focus. PIA's top five issues of focus for 2015 are agent licensing uniformity, fighting for agent compensation in healthcare, promoting small business & tax reform, protecting state insurance regulation and safeguarding important P&C programs. In addition, PIA will continue to focus on a multitude of other business and policy issues that impact independent agents, as well as monitor and address emerging policy issues as they arise. PIA's 2015 Policy Plan is available here.

PIA National has released its 2015 policy issues of focus. PIA's top five issues of focus for 2015 are agent licensing uniformity, healthcare reform, promoting small business & tax reform, protecting state insurance regulation and safeguarding important P&C programs. In addition, PIA will continue to focus on a multitude of other business and policy issues that impact independent agents, as well as monitor and address emerging and emergency policy issues as they arise.

PIA's 2015 Policy Plan is available here: /docs/2015/2015piapolicyplan/.

"In 2014, PIA had great success in advocating for independent insurance agents at the federal and state level," said PIA National Executive Vice President & CEO Mike Becker. "In the first weeks of 2015, we have already seen early success with the renewal of the Terrorism Risk Insurance Act and passage of the National Association of Registered Agents and Brokers. Throughout 2015, PIA will continue to tirelessly fight for independent agents."

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.”