Industry News

WASHINGTON, November 7, 2007  - The Association of Marketing and Communication Professionals (AMCP) has selected the National Association of Professional Insurance Agents' "PIA Branding Program" as a recipient of two awards in its annual MarCom Awards competition.

The PIA Branding Program was presented with a Platinum Award in the Corporate Branding category, one of a limited number of categories representing entire campaigns. The AMCP also presented the PIA Branding Program with a Gold Award in the Advertising Campaign category.
 
"PIA is honored to be recognized by the Association of Marketing and Communication Professionals with these MarCom Awards," said PIA National President Robert Page. "These awards are a testament to the quality of the branding materials PIA makes available to its members through the PIA Branding Program, Local Agents Serving Main Street America SM."
 
"Almost daily we hear from agents who see the benefit of branding their agencies using the advertisements PIA makes available through the PIA Branding Program," Page said. "It is especially gratifying to have our program recognized for excellence in competitions conducted by some of the most prestigious organizations involved in marketing and advertising." 
 
The MarCom Awards is an international, creative competition that recognizes outstanding creative achievement by marketing and communication professionals. There were over 5,000 entries from throughout the United States and several foreign countries in the 2007 competition, perhaps the largest and most respected of its type in the world.
 
During 2007, the PIA Branding Program also received two other prestigious awards. The program was named a Gold Award recipient of the Hermes Creative Awards 2007 competition by the Association of Marketing and Communication Professionals. And the PIA Branding Program received an APEX Award for Publication Excellence.

Additional information about the PIA Branding Program is available on PIA National's website.
 
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.

Last week PIA reported on a series of decisions that, when taken together, reaffirm the legal arguments made by PIA in our court filings over the past two years. The September 28 ruling by a federal judge dismissing the remaining racketeering claims pending against several dozen insurers and brokers in a class action lawsuit is significant is several respects.

The decisions reaffirm that receiving contingent compensation is neither illegal nor unethical, and that the kind of flawed disclosure regimes contained in questionable settlement agreements which were selectively imposed on Main Street agents who were never accused of any wrongdoing, are not required by the law.

Background:  In the wake of scandals stemming from industry wide investigations by then-New York Attorney General Eliot Spitzer into bid-rigging and client-steering allegations against a handful of insurers and mega-brokers, settlement agreements were negotiated. Some called for outright bans on the payment of contingent commissions, while others proscribed a disclosure regime.

But instead of being applied just to those suspected of wrongdoing, these agreements were applied to all Main Street agents in all jurisdictions nationwide. While those suspected of wrongdoing were included in the negotiations leading to these agreements, Main Street agents were shut out, but then included in the sanctions that were imposed. Then, to add insult to our injury, some of those suspected of wrongdoing subsequently had the sanctions against them reduced by authorities, while the restrictions on Main Street agents were kept in place!

In short, Main Street agents were getting used. That's why PIA decided to fight back. PIA made clear from the outset that we would write, speak, act and litigate - in short, we would fight hard to defend the integrity of PIA members.

PIA had the fortitude of character to stand up when others were retreating, making clear to the media, insurers, insurance regulators, state AGs and other insurance trade associations that adverse comments and actions blindly taken against retail Main Street agencies were factually and legally wrong, unfair and would not be tolerated. PIA was the first to challenge such actions in court. PIA provided the most comprehensive legal briefs in the federal district court action.

PIA was the only insurance trade association that provided the NAIC with the correct way to draft a producer compensation disclosure model and, when they did not act on our advice, we opposed their disclosure in the states. As a result, no state ever adopted the flawed NAIC disclosure model.

It has been a long, hard struggle. Although some legal skirmishes may remain, PIA members have won a major victory in the battle to defend the integrity of all PIA members and protect their business interests.

Courts Underscore Receiving Producer Compensation is Legal (PIA 10/2/07)

Second Award in Two Weeks for "Local Agents Serving Main Street America" (SM)

WASHINGTON, July 26, 2007 - The National Association of Professional Insurance Agents' (PIA National) "PIA Branding Program" has been named an APEX Awards for Publication Excellence award winner.

The PIA Branding Program, Local Agents Serving Main Street America (SM), is an advertising and promotional campaign available at no additional cost to all PIA member agencies throughout the nation. The program currently consists of twenty-one print advertisements with 251 variations that PIA members can run in their local publications.

The APEX Awards for Publication Excellence is an annual competition for writers, editors, publications staff and business and nonprofit communicators. APEX Awards are based on excellence in graphic design, editorial content and the ability to achieve overall communications excellence. The PIA Branding Program was presented with the prestigious APEX Award of Excellence in the Marketing and Public Relations Campaigns category.

"PIA is honored to receive the APEX 2007 Award of Excellence," said PIA National President Donna Pile. "Almost daily we hear from agents who see the benefit of branding their agencies using the advertisements PIA makes available through the PIA Branding Program. It's nice to have an independent group of professionals recognize the quality of this program."

The APEX award was the second in two weeks for the PIA Branding Program. The program was previously named a Gold Award recipient of the Hermes Creative Awards 2007 competition. The Hermes Creative Awards program is administered and judged by the Association of Marketing and Communication Professionals. The awards program is an international competition for creative professionals involved in the concept, writing and design of traditional materials and programs, and emerging technologies.

Additional information about the PIA Branding Program is available on PIA National's website here.

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.

By Ray L. Peretti
President
PIA National

The year 2006 marks an auspicious milestone for PIA.  It is our association's 75th anniversary.  In 1931, a group of independent insurance agents gathered together in Washington, D.C. and held the first meeting of the National Association of Mutual Insurance Agents.

NAMIA's name was changed to the National Association of Professional Insurance Agents in the bicentennial year of 1976. PIA's name was changed, but the mission remains the same.

The mission statement of PIA National is: "To promote, protect and defend the integrity of our members, the value of their profession and the success of their businesses."

And while it is great to make note the past, PIA's focus is always on the future success of PIA member agencies. That's why the PIA National Board of Directors decided that the best way to celebrate our association's 75th anniversary is to invest in PIA's future - not throw a party.

PIA's 75th anniversary provides our association with a unique opportunity to let all the players in our industry, as well as policymakers and industry colleagues, know that PIA is strong, active, influential and committed to growth and success for many years to come.

PIA National staff has developed a coordinated strategy of enhanced promotion and engagement that will occur throughout 2006. Beginning in January and continuing throughout the year, you will be seeing an aggressive national ad campaign by PIA in many industry publications, including the National Underwriter and Rough Notes. PIA affiliates will have the opportunity to participate in coordination with this campaign.

The other elements of this strategy will be announced as the year progresses.

All activities under the umbrella of the 75th Anniversary will be leveraged to build the PIA brand and increase membership, making PIA a stronger organization that is better equipped to directly benefit its members.  We will do this by substantially raising PIA's profile among independent insurance agents, the insurance industry generally and those policymakers we need to influence.

Advocating for Agents

Advocacy by an association is comprised of the positions it takes on key legislative and regulatory issues and its effectiveness at pursuing its agenda.  It encompasses grassroots advocacy as well as lobbying on Capitol Hill, in the state legislatures, at the NAIC, NCOIL and NCSL - and, when necessary, in the court of public opinion.

PIA members must continue this long heritage of personal, direct engagement in the state and federal political process. This involves knowing your state representatives, commissioners and other officials. It involves knowing your Members of Congress, and sharing those contacts with your state and national PIA, so that we can work with you and get those leaders to "get things done!"

It is sharing with policymakers on a regular basis what is important to your agency and how that affects you and your clients in your community. It is being a visible part of their campaign efforts. This is especially important to PIA members' individual interests on federal issues, because it take the votes of a majority in both the House and Senate - all coming from various states - to achieve the federal legislative victories that you need!

PIA's ability to engage in detailed policy analysis at the NAIC, as well as in the various states, assures that PIA members' interests are being protected.

Carrier advocacy is anot

PIA's efforts to help Gulf Coast agents and their clients in the aftermath of Hurricane Katrina were detailed in an article in the November 2005 Rough Notes magazine.

"The PIA issued a call to members of the association from across the country to offer temporary housing assistance as needed to independent agents in the areas damaged by Hurricane Katrina," the article noted. "From its headquarters in Alexandria, Virginia, PIA National immediately began to coordinate the relief effort with PIA state affiliate offices in Louisiana, Mississippi and Alabama."

"The PIA provided $100,000 in assistance to the three state affiliates hit by Katrina. Moreover, PIA National contacted state insurance regulators and federal authorities recommending they ease certain insurance regulations that apply to insurance claims processing to assist consumers beginning to cope with the aftermath of Hurricane Katrina. On behalf of PIA affiliates in Louisiana, Mississippi and Alabama, PIA National transmitted a request that the appropriate state departments of insurance issue [certain directives and orders]."

In September, the National Underwriter published an article in which PIA members and affiliate executives from Louisiana, Mississippi and Alabama shared their experiences.

Agents Respond to Hurricane Katrina (Rough Notes, November 2005)

Besieged Agents Need a Helping Hand (National Underwriter 9/19/05)

There are regular disasters and extraordinary catastrophes, and the media cover both differently. That point was made by PIA National Vice President of Communications Ted Besesparis in an article that appeared in PR Week, a national publication for PR professionals. Besesparis was interviewed for the article along with Robert Hartwig, chief economist for the Insurance Information Institute; Tom McCoy, editor-in-chief of Rough Notes; and Mechell Clark, media relations manager with Aflac Insurance.

"Most disasters tend to play out over a shorter period of time, so you usually quickly see focused stories dealing with how to prepare for the next crisis," says Besesparis. "In a situation like Katrina, your second- and third-day stories have become second- and third-week stories because most reporters were dealing with the immediate situation for a lot longer."

Crises Spotlight Insurance Issues (PR Week 9/23/05)

PIA National Senior Vice President Patricia A. Borowski discussed PIA's call on Congress to adopt and fund a coordinated natural disaster catastrophe program, during a nationally televised interview on CNN, on Saturday November 5.

Borowski appeared on the CNN real estate program Open House, hosted by CNN anchor Gerri Willis. 

"In taking the model of the federal flood program, those that have the exposure and purchase the properties will be the ones to certainly pay the largest amount of that cost," said Borowski, elaborating on the proposal for a catastrophe fund that was adopted uninimously by the PIA National Board of Directors on September 11, 2005. "That will lessen the amount of money that the federal government and local governments and state governments already pay out."

"The federal efforts thus far have to be improved," Borowski said. "And part of that also is understanding that, as these insurance premium funds are created, they cannot be raided by subsequent decisions of Congress or any administration to be used for other purposes."

Joining Borowski on the CNN program was J. Robert Hunter, insurance director of the Consumer Federation of America (CFA). Despite the fact that PIA has strenuously objected to some of Mr. Hunter's statements in the past regarding the insurance industry in general and independent agents in particular, he did not attack PIA's proposal. Pressed by the host for his response, Hunter said, "Well, we have to wait for the details."

We are in the process of securing from CNN permission to post a video file of this program here on PIANET. Check back for the link.

For additional information, read PIA National's September 11, 2005 press release: PIA National Board Endorses Creation of Public-Private Natural Catastrophe Fund

As the evacuation preceding Hurricane Rita began, PIA agents were quick to lend a helping hand to their fellow agents who had to evacuate their offices. Agents located inland volunteered temporary office space to PIA agents who were displaced from their offices.
 
PIA has created a special Hurricane Rita Web Resource Center with information for Texas agents, including a PIA Preparedness Alert, ACORD forms and updates from the Texas Department of Insurance (TDI). This page will be updating this page continually as the situation warrants.

PIA Hurricane Rita Resource Center

PIA Agents Lend Helping Hand in Texas (9/22/05)

PIA Agents Offer Office Space to Agents Fleeing Rita (Insurance Journal 9/23/05)

It Is Our Responsibility to Ensure the Future of Our Industry and PIA

By Lewis L. Wilson
PIA National Director, New York

Throughout my involvement in business, politics and PIA, one thing I have noticed is that there are few issues upon which almost everybody can agree.

In the agency business, there is one thing almost everyone believes: we need to do more to attract young people into our industry.

Those of us who have spent many years as independent insurance agents might like to think that we will be around forever - but we know better. As business owners, we know that no enterprise can achieve long-term success without attracting a steady stream of new talent that will one day be in charge.

Many of us who chose to work in the insurance industry made that decision because a family member was also in insurance. Involvement in the insurance industry is often something that gets handed down from one generation to the next.  But in today's world, perpetuation by tradition isn't enough.

If we want the American Agency System to continue to flourish, we need to do more to reach out to young people with the message that one of the most exciting, challenging and lucrative career choices they can make is to become a Professional Insurance Agent.

Now, I realize that, for many Americans, "exciting" and "insurance agent" are terms that seldom get used in the same sentence. It can be a daunting task for a person more mature in years (which some people have suggested describes me) to convince a young person just starting out that insurance is a great career choice.

In 2002, this issue was discussed during a CEO Conference hosted by PIA of New York, the New York Insurance Association and the New York Young Insurance Professionals (NY-YIP). What came out of those discussions was that we, as an industry, have to attract college-aged men and women who want to learn about all that the industry has to offer. We must develop more insurance-based programs for these students to test the waters in order to ensure that their entrance into the industry will be long term - and not serve as a r©sum© builder. We need to reach out to young people before they make their career choices. We must go to them; they will not come to us.

In several states, PIA associations have sponsored organizations to encourage the young professionals who already work in our industry and attract others to join us. The New York, New Jersey and Connecticut Young Insurance Professionals associations are thriving groups comprised of dedicated young insurance people who gather to network, enable education, engage in charitable works and have fun. There are also similar YIP organizations, councils or committees in Virginia, Louisiana, Wisconsin, Arkansas and other PIA affiliates.

For years, I have been working hard to help our Young Insurance Professionals gain the recognition they deserve by our national association. That's why I am pleased that beginning in 2006 our national association will inaugurate the PIA National Young Agent of the Year Award. It is especially fitting that the first of these awards will be presented during PIA's 75th Anniversary year. After all, what better way to celebrate the fact that PIA has been in existence for many generations than to give recognition to PIA's upcoming leaders.

As all of us move through our lives and our careers, we try to give back. For many of us, service to PIA is not only in the best interest of our businesses, it is also a chance to contribute something back to the industry that we cherish, that has helped us achieve the best for ourselves and our families.

For many years, the members of PIA have been steadfast in their shared belief in the future of professional insurance agents. In every decade, so-called "industry experts" have tried to sound the death knell for independent agents. And every time they try to c

PIA of Tennessee Presents PIA Boxing Gloves to PIA National

"You may have noticed that lately, some people have been taking a lot of shots at professional insurance agents," said PIA of Tennessee outgoing President Britt Linder, during the PIATN annual convention. "The folks at PIA National have been quick to speak up on our behalf - to state attorneys general, at the NAIC, in Congress, with carriers and in the press."

Linder noted that recently, the National Underwriter reported on PIA National Executive Vice President & CEO Len Brevik's criticisms of a mega-broker's suggestion that contingency commissions for Main Street independent agents should be eliminated. The magazine put Brevik's picture and quote on its front cover, under a big boxing glove.

PIA of Tennessee outgoing President Britt Linder presents PIA National Executive Vice President & CEO Len Brevik with a custom pair of boxing gloves with the PIA logo at the PIATN annual convention.

"It's nice to know that when we have to stand up for our interests, the staff at PIA National is always there to 'fight the good fight' for us," Linder said. "So, as a token of out appreciation, the members of PIA of Tennessee would like to present you with this custom pair of boxing gloves with the PIA logo. We know you'll be able to use them."

In his remarks to PIA of Tennessee, Len Brevik noted the mission statement in PIA National's new Strategic Long Range Plan: "To promote, protect and defend the integrity of our members, the value of their profession and the success of their businesses."

"This says it all," he said. "It is what PIA is all about. At times, it is a difficult task, but our job is to speak truth to power."

He noted that PIA has been in the forefront of the public policy debate resulting from the investigations by New York Attorney General Eliot Spitzer.

"From the moment the first Spitzer story broke, PIA National shifted its focus," said Brevik. "First, we responded to the initial news with a public statement, and assured that all of PIA was on the same page.  Then, we got about the task of exercising our influence with policymakers, to assure that any new regulatory or legislative initiatives did not create a competitive disadvantage for PIA members."

Brevik noted that PIA National has been engaged with the NAIC, NCOIL and with state legislatures across the country, in an effort to ensure that any new legislation is not burdensome for agents. He also noted that at times during the post-Spitzer period, it has been necessary for PIA to go on the offensive.

He pointed out that when a consumer activist, J. Robert Hunter, told Congress that the performance bonuses agents receive are "kickbacks" and implied agents may delay claims filings, PIA took Hunter to task in public. When Consumer Reports magazine advised consumers that by buying coverage from direct writers like State Farm, they can avoid "the bid rigging problem," PIA challenged them in public by releasing the story to the National Underwriter, which reported that Consumer Reports offered no evidence that independent agents were involved in bid rigging.

On the issue of insurance regulation, Brevik says PIA's position is crystal clear. "PIA is a steadfast supporter of state regulation of insurance - always has been, always will be," he said. "PIA has worked closely for decades with the NAIC. But when the NAIC adopted a broker disclosure model that was not in the interest of our members, PIA opposed it publicly."

Another recent area of focus has been company-specific disclosure