Industry News

Most customers who are lured away from independent agents by direct insurers promising lower prices will ultimately return to an independent agent. According to a recent study commissioned by The Hanover Insurance Group, nearly 60 percent of consumers who had purchased insurance through a direct channel ten or more years ago reported switching back to an independent agent because they wanted more value.

This study was conducted for The Hanover, an independent agency company and member of the PIA Partnership, by the research firm InsightExpress, which surveyed 1,000 consumers who purchased insurance through direct channels 10 or more years ago. Most consumers who switched back to independent agents cited expertise and convenience for their decision. According to the survey, the motivators for consumers who switched to work with independent agents also included the benefits of having one point of contact to handle insurance needs and questions and having the guidance of an experienced personal insurance professional.

“This research demonstrates that consumers really value the advice provided by independent agents and the personal relationships they build with their customers,” said Mark R. Desrochers, president, personal lines insurance at The Hanover. “The majority of respondents said their number one reason for switching from a direct insurance provider was to have someone to guide them through their insurance buying decisions. Clearly trust and expertise are important to consumers.”

“The study shows that consumers realize the value that independent agents bring. That’s why we deliver our products exclusively through agents who are ‘the value creating channel,’” said Dick Lavey, president of field operations and chief marketing officer at The Hanover.

Study Shows Consumers Who Go Direct Return to Independent Agents (Hanover 8/12/13)

The report by the Government Accountability Office (GAO) that found that the state insurance regulatory system helped mitigate the negative effects of the 2007-09 financial crisis on the insurance industry continues to make news. PIA’s report and analysis on the GAO study is featured in the National Underwriter’s Property/Casualty 360. In our analysis, we note that the GAO report serves as an objective counter-balance to an upcoming report that will likely not be objective: A study of insurance regulatory modernization by the Federal Insurance Office (FIO).

GAO: State Regulatory System Lessened Financial Crisis (National Underwriter 8/8/13)
Industry, Regulators Cheer GAO Finding that State System Worked Well (PIA)

A report by the Government Accountability Office (GAO) found that the state insurance regulatory system worked to help mitigate the negative effects of the 2007-2009 financial crisis on the insurance industry. In addition, the GAO found that since the financial crisis, state insurance regulators have continued efforts to strengthen the insurance regulatory system.

The report noted that state regulators were especially critical in maintaining general stability in the market during the crisis. “The effects of the financial crisis on insurers and policyholders were generally limited, with a few exceptions,” the report stated.

The GAO report was proposed 18 months ago by PIA and was prepared for the chairman of the House Financial Services subcommittee on Housing and Insurance, Rep. Randy Neugebauer (R-Texas), as well as subcommittee member Rep. Steve Stivers (R-Ohio).

PIA wanted the GAO to do the study because a separate Congressionally-mandated study of insurance regulatory modernization by the Federal Insurance Office (FIO) — which was due in January 2012 and has still not been released — would be biased in favor of federal insurance regulation, based upon the questions the FIO published for it.

“The GAO report is positive, in that it essentially says the state regulatory system worked well during the financial crisis,” said Mike Becker, vice president of federal affairs at PIA National. “It also says that state regulators and the NAIC have taken steps since the financial crisis to further strengthen the state insurance regulatory system.”

“Multiple regulatory actions and other factors helped mitigate the negative effects of the financial crisis on the insurance industry,” the GAO report notes. It said state insurance regulators and the NAIC took various actions to identify potential risks and help provide capital relief for insurers. In addition, several federal programs were also made available that infused capital into certain insurance companies. “Also, industry business practices and existing regulatory restrictions on insurers’ investment and underwriting activities helped to limit the effects of the crisis on the insurance industry.”

The report found that the financial crisis “generally had a limited effect on the insurance industry and policyholders,” with the exception of certain annuity products in the life insurance industry and the financial and mortgage guaranty lines of insurance in the P/C industry. PIA National will be providing additional analysis of the GAO report.

Impacts of and Regulatory Response to the 2007-2009 Financial Crisis (GAO)

Commenting in an article in Best’s News Service, National Association of Insurance Commissioners (NAIC) CEO Ben Nelson said he has been meeting with Federal Insurance Office (FIO) Director Michael McRaith and holding conference calls in an effort to clarify the FIO’s role on the international stage. But he said more communication may be necessary.

“Communication involves more than just meetings and telephone calls,” Nelson said. “It has got to mean that FIO has to tell us their positions in advance, so we don’t learn about them as a surprise or that they have a position but they can’t tell us what it is. That’s not communication.” Questions about the FIO’s role have reached a point where Rep. Randy Neugebauer (R-Texas), who chairs the House Financial Services Subcommittee on Housing and Insurance, has asked McRaith to submit monthly updates about the office’s interaction with the NAIC and on the development of policy positions.

Nelson said McRaith has attempted to speak on behalf of state insurance regulators and has “taken positions that run contrary to the state regulatory mechanism.” Nelson said some of the FIO’s actions and statements have led to confusion among its international counterparts about whether the office is actually a regulator. He said that only representatives of state regulatory bodies should speak on behalf of regulation.

NAIC CEO Nelson: Confusion Persists on FIO’s Role (Best’s News 7/10/13) (subscription)
Nelson to Congress: FIO Does Not Speak for Insurance Regulators (PIA 6/18/13)

Eliot Spitzer, the former governor of New York who resigned in disgrace as the result of a prostitution scandal that he said last week was the result of his “urges,” has announced that he will re-enter politics and run for Comptroller of New York City. In an odd twist, one candidate the ex-governor will face is Kristin Davis, the ex-madam who says she supplied him with hookers and who is running on the Libertarian line.

In November 2008, prosecutors in charge of the case announced that Spitzer would not face criminal charges for his involvement in the sex ring, because they found no evidence of misuse of public funds and therefore pressing charges would not serve the public interest.

Beginning in late 2004, Spitzer, then the state attorney general of New York, investigated allegations of bid-rigging and client-steering against a handful of insurers and mega-brokers. Then, together with a few of his fellow Attorneys General, he negotiated supposedly “voluntary” settlement agreements in which they agreed to forgo contingent commissions, without admitting any wrongdoing.

Smearing Main Street Agents

While Professional Insurance Agents were never suspected of any wrongdoing, Spitzer and his allies tried to tarnish Main Street agents with his broad brush. He attempted to use his “voluntary” settlements to bring about an industry-wide ban on contingent commissions, including those received by PIA members. In short, Spitzer wanted Main Street agents to be punished for the suspected wrongdoing of others, when Main Street agents did nothing wrong.

PIA battled this unfair assault led by Mr. Spitzer and his cohorts for the better part of a decade. We took legal action in 2006 to defend PIA members from the onslaught. In the end, the courts agreed with us, ruling that contingent commissions are ethical, not illegal, and not a breach of fiduciary responsibility. We also conducted a major public relations campaign, winning in the court of public opinion.

If you would like to peruse the entire history of PIA’s battles with Eliot Spitzer, click on this link. It will take you to PIA’s complete files, detailing almost 10 years of our fighting – ultimately, successfully – to protect the good name and reputation of all PIA members. Another link is to the brief PIA filed in federal court in which we made our case against Spitzer’s attempts to smear honest Main Street insurance agents. And there’s a recent link to a story about Spitzer blaming his problems on his “urges.” Check it out – all of it makes for very interesting reading.

PIA’s Years of Battles with Eliot Spitzer (complete file)

Spitzer Blames ‘Urges” for Prostitution Scandal (PBS 7/9/13)

Brief of Amicus Curiae
Unites States District Court, District of New Jersey
in opposition to Proposed Class Settlement with Zurich Insurers
National Association of Professional Insurance Agents
(Filed 9/15/2006)

In-Depth Article on Spitzer and PIA’s Brief (Rough Notes Nov. 2006)

A small bipartisan group of U.S. senators last week introduced legislation that would break up Wall Street’s megabanks by separating traditional banking activity from riskier financial services. The 21st Century Glass-Steagall Act would bring back elements of the 1933 Glass-Steagall Act, which divided commercial and investment banking and was repealed in 1999.

The new legislation would separate the operations of traditional banks with accounts backed by the Federal Deposit Insurance Corp. (FDIC) from riskier activities such as investment banking, insurance, swaps and hedge funds. It would include a five-year transition period and would call for penalties if companies violated the law. The bill is sponsored by Sens. John McCain (R-Ariz.), Angus King (I-Maine), Maria Cantwell (D-Wash.) and Elizabeth Warren (D-Mass.).

“Since core provisions of the Glass-Steagall Act were repealed in 1999, shattering the wall dividing commercial banks and investment banks, a culture of dangerous greed and excessive risk-taking has taken root in the banking world,” said Sen. McCain. “Big Wall Street institutions should be free to engage in transactions with significant risk, but not with federally insured deposits. If enacted, the 21st Century Glass-Steagall Act would not end Too-Big-to-Fail. But, it would rebuild the wall between commercial and investment banking that was in place for over 60 years, restore confidence in the system and reduce risk for the American taxpayer.”

21st Century Glass-Steagall Act (bill text)

New York Bill Awaits Gov. Cuomo's Signature; Montana Bill Introduced by Sen. Fred Thomas Signed Into Law

In a major victory for PIA, both Montana and New York have passed bills backed by PIA to address the large and growing problem all producers face when handling certificate of insurance requests.

In New York, the New York State Senate passed a bill, which was already approved in the New York State Assembly, and sent it to Gov. Andrew Cuomo for his signature. PIA of New York said it will continue to work diligently to urge the Governor to sign the bill as soon as it reaches his desk.

In Montana, State Sen. Fred Thomas (R), a past PIA National President, introduced the Certificates of Insurance Model Act (S. 158) and shepherded it to passage. It was signed into law on April 25, 2013 by Gov. Steve Bullock (D).

The victories in Montana and New York cap a two-year long process, in which PIA National took the lead in getting the National Conference of Insurance Legislators (NCOIL) to adopt a model bill to curb requests of agents for illegal Certificates of Insurance. PIA National President Andrew C. Harris led the effort along with PIA National Assistant Vice President of Regulatory Affairs David M. Eppstein, Esq. Harris testified at several NCOIL meetings, urging the legislators to act, because agents are increasingly being asked to add information to certificates of insurance that may not match the underlying policy terms. He also personally brokered a compromise with lenders to address their concerns.

What It Means to Agents: PIA’s leadership on this issue broke a stalemate that had existed for decades. Montana and New York are two of eight states so far to consider the NCOIL certificates model. This achievement is a powerful example of what PIA is able to accomplish for the benefit of PIA members everywhere, when everybody works together.

PIA Achieves Major Win with Certificates Model Law (PIA Connection 12/12)

PIA National issued a press release on May 24 that had two purposes: (1) to educate the public about post-disaster claims filing; and (2) to make the point that most people do not need to hire a public adjuster.

Our press release was prompted by one that was issued by the National Association of Public Insurance Adjusters, in which they present claims filing advice filled with recommendations that Oklahoma disaster victims should consider hiring a public insurance adjuster.

“Public adjusters sometimes have a role, but frankly in most cases consumers do not need to take on the additional expense of hiring one,” said PIA National Executive Vice President & CEO Ron Von Haden. “Professional insurance agents assist their clients in the claims filing process, which begins with filing a claim with the insurance company, at no added cost. The overwhelming number of claims are properly paid. Approaching the claims filing process in an open, cooperative manner produces a better result than assuming a potentially adversarial stance from the outset.”

In our press release, Senior Vice President Patricia A. Borowski elaborated further. “Public adjusters imply that the settlement won’t be fair to the policyholder without their intervention, for which they charge an additional fee directly to the person who is insured,” she said. “This fee is usually a percentage of the final settlement – and for some, it might also include extra charges for the expenses of the public adjuster.”

“Under the insurance and contract laws of every U.S. jurisdiction, insurance companies are required and obligated to perform the claims services and settlements that are stated in their insurance policy contracts,” Borowski said. “Also, in every state there is a Department of Insurance, along with regulators, who will assist consumers to ensure that insurers meet their obligations. This service is a part of state government, which consumers have already paid for in their taxes.”

PIA Offers Post-Disaster Claims Filing Tips (May 24, 2013)

If you pay attention to some industry pundits — which is always risky — you might think that customers increasingly want to buy insurance policies online. You might come to believe that younger customers really want to transact business online. You could assume that price is the prime motivating factor in insurance purchases. You might even be tempted to conclude that people value insurance agents less.

The trouble with all of that is all of it is wrong! PIA National President Andrew C. Harris notes that in just the past year, there have been several large surveys conducted that reveal that this so-called “conventional wisdom” is incorrect. One of these surveys was conducted by Ernst & Young. Another was conducted by Accenture. Another was conducted by PIA, through our company council, the PIA Partnership. The bottom line on all of them: consumers value what agents provide and they prefer dealing with agents!

Harris notes that misconceptions about what consumers want are being driven by massive advertising by the direct writers. “We need to get the truth out person by person, client by client,”said Harris, in his latest President’s Message to PIA. “Warren Buffett can pay to put a billion geckos on our television screens, but a cartoon character or a disembodied voice will never be there after a Hurricane Katrina or a Superstorm Sandy, personally helping insureds put their lives back together.” You can read Harris’ full message here.

Elsie Reamy, who for 41 years was affiliated with the Professional Insurance Agents Association of Virginia and D.C. (PIA-VA/DC) and served as the organization’s executive vice president, passed away in April after a long battle with cancer. She was 75 and resided in Richmond, Va.

Reamy began her career in 1970 as office manager for what was then called the Mutual Insurance Agents’ Association of Virginia and (Washington) D.C. Following her retirement from PIA-VA/DC in 2003, she retained a part-time affiliation as state legislative chair for another eight years.

Besides the countless awards and recognitions for her contributions to the association – such as growing membership, building offerings to more than 100 classes, creating an education foundation and two PACs, and her tireless involvement with insurance causes throughout Virginia – Reamy was known as leader of a professional organization run with a major dose of Southern hospitality.

“There’s really no limit to the sense of fellowship and community that Elsie’s charm and professionalism brought to nearly every phase of the insurance industry in Virginia,” said Dennis Yocom, current executive vice president of PIA-VA/DC. “They really broke the mold with Elsie; she’s one of a kind and will be remembered fondly by agents across the nation.”

Over the span of 41 years, Elsie earned countless awards, and recognition for so many organizational “firsts” that they cannot be accurately listed. Here are just a few: more than doubled agent membership and staffing; increased budget by 10 times; built educational offerings to more than 100 classes annually while increasing attendance by 50 percent; created publications, an education foundation and two PACs; grew convention attendance annually; wrote the 70+ year history of PIAVA/DC titled “A Legacy of Service and Fellowship”, and adopted Special Olympics of Virginia as charity of choice 34 years ago. Her most endearing accomplishment is that Elsie took a self-help concept from a group of professional insurance agents and, by applying a major dose of Southern hospitality, turned it into an organizational “family” providing personal professional services to more than 500 agencies and in excess of 2,500 agents in Virginia and DC.

In her own words: “I want your association to always be an agents’ association; by this I mean for programs and services to be those you need and use. I want it to always be meaningful to you, and for you to feel that you’re the one running it.”

Reamy was a licensed insurance agent with numerous designations and was a certified association executive (CAE). In 1991, she was given an Award of Excellence from the Virginia Society of Association Executives. She was recognized by her insurance association peers as Executive of the Year in 1992 by the National Society of PIA Executives, and in 1996 was honored as Industry Person of the Year by the Insurance Women of Richmond. In 2003, Reamy received recognition on the floor of the House of Delegates of the Virginia General Assembly for her service to the association community, to the insurance industry and to the Virginia Legislature.

She was also active in the church community, having served as a leader, church school teacher and secretary at local churches. Reamy is survived by a brother, Joseph Reamy, of Montross, Va.

Donations in Reamy’s honor may be made to the Elsie Reamy Scholarship Fund, c/o PIA VA/DC, 8751 Park Central Drive, Ste 140, Richmond, VA 23238 or to Ephesus Christian Church General Fund (P.O. Box 1027, Montross, VA 22520); or Bethany Christian Church Memorial Fund (5400 Forest Hill Ave, Richmond, VA 23225).

Elsie Reamy Remembered

On Sunday, April 14, 2013, the Board of Directors of the National Association of Professional Insurance Agents issued a solemn Proclamation, honoring the late PIA National Chief Financial Officer (CFO) Loan Nguyen, who passed away on Tuesday, March 19, 2013 following a long illness.

Loan served PIA since 1986, managing our finances with the highest degree of professionalism and the utmost commitment to PIA. She touched the lives of all those who were fortunate enough to know her. The Board Proclamation states, in part:

Whereas: For more than 27 years, Loan Nguyen guarded the financial assets of the National Association of Professional Insurance Agents with diligence;

Whereas: Everyone in PIA, at the national level and throughout the many PIA affiliates, recognized and appreciated Loan Nguyen’s unquestioned honesty and integrity;

Whereas: Loan Nguyen truly believed in and loved PIA with a fierce loyalty;

Whereas: Loan Nguyen believed that PIA is a family, that PIA was part of her family, and as such she always cared about and sought to protect her PIA family;

Whereas: PIA has suffered an incalculable loss with the passing of Loan Nguyen – our guardian, our matriarch, our protector, the keeper of the PIA National flame, our dearest and most beloved friend;

Therefore Be It Resolved: That the Board of Directors of the National Association of Professional Insurance Agents does hereby express its most profound condolences upon the passing of our dear friend Loan Nguyen and confer the highest affirmation of our undying appreciation and respect upon the memory of her time among us.

ADOPTED unanimously, on this 14th day of April, 2013, by the National Association of Professional Insurance Agents. You may read the complete proclamation here.

A special dedication ceremony, with the planting of a tree outside Loan’s former office, the installation of a memorial plaque and a celebration of Loan’s life, is planned at the PIA National headquarters in Alexandria, Virginia on May 1, 2013.

The announcement that former Nebraska Governor and former U.S. Senator Ben Nelson had been chosen as the new chief executive officer of the National Association of Insurance Commissioners (NAIC) was music to the ears of supporters of state insurance regulation. An article by PIA’s Ted Besesparis in the March 2013 issue of American Agent & Broker magazine sings the praises of Nelson, with whom PIA National and PIA of Nebraska have maintained a close working relationship over several decades.

An excerpt: “Like the cavalry riding to the rescue, Nelson was in his new job only 24 hours before he held a press conference and declared that there is ‘no need for dual regulation’ of insurance. You could almost hear a collective national sigh of relief emanating from the supporters of state insurance regulation.” You can read the entire article here.

Ben Nelson to the Rescue ..(American Agent & Broker March 2013)

Mike Becker has been named Vice President of Federal Affairs for the National Association of Professional Insurance Agents (PIA). The announcement was made by PIA National Executive Vice President & CEO Ron Von Haden. Becker heads PIA’s day-to-day lobbying efforts on Capitol Hill, directs the annual PIA National Federal Legislative Summit and is the lead liaison to the association’s Government Affairs Committee. He serves as the Treasurer of the Professional Insurance Agents Political Action Committee (PIAPAC) and is a board member of Advocates for Highway and Auto Safety.

“PIA is pleased to recognize the accomplishments of Mike Becker in his Capitol Hill advocacy for PIA members,” said Von Haden. “His legislative acumen, dogged determination and extensive Washington contacts benefit our members by advancing PIA’s agenda every day.” – more –

PIA National Names Becker as Federal Affairs VP (Insurance Journal 2/18/13)

PIA has confidence that the reforms adopted by Congress last summer will put the National Flood Insurance Program (NFIP) back on a firm footing. Rep. Jeb Hensarling (R-Texas), incoming chairman of the House Financial Services Committee, said during the debate that while people with flood policies need to be paid now, his committee will mark up a bill this year “to transition to a private innovative, competitive, sustainable flood-insurance market.” He acknowledged that some reforms were imposed through the NFIP reauthorization legislation enacted in July, but said that despite those reforms “Sandy has hit before many of these provisions could take effect.”

“PIA supports the NFIP and we remain confident that after years of work, the NFIP reform law that passed Congress last year will make the necessary changes to put this program back on a sound footing,” said PIA National assistant vice president of federal affairs Mike Becker. “We caution against proposals that would privatize the NFIP before the reforms are even implemented, and we look forward to conversations with the Chairman on his ideas to strengthen the program.”

PIA National scored a major victory for independent insurance agents everywhere as a model law governing certificates of insurance was finally adopted by the National Conference of Insurance Legislators (NCOIL). The action by NCOIL capped an intense 2-year campaign by PIA National. By enacting the model, states can eliminate demands for improper certificates of insurance.

PIA advocated for passage of the model over the course of the last two years and played an integral role in guiding it to approval by the state legislators, by helping to broker an agreement between carriers and lenders.

“This is a great achievement for PIA and NCOIL,” said PIA National President Andrew C. Harris, who testified in support of the model and worked to assuage the concerns of lenders.

“This is truly awesome news,” said PIA National Secretary/Assistant Treasurer Rob Hansen. “Congratulations and thank you to all who worked tirelessly to get this model certificates of insurance law adopted by NCOIL! Once again, PIA leads the way!”

David M. Eppstein, Esq., assistant vice president of regulatory affairs and a staff attorney for PIA National, worked closely with Harris to bring about NCOIL passage of the model. Eppstein writes about the successful PIA campaign in an article in PIA Connection.

PIA Achieves Major Win with Certs Model Law (PIA Connection 12/12)

PIA National President Andrew C. Harris addresses the agency-carrier partnership in his latest President’s Message. An excerpt:

“When independent insurance agencies speak about the carriers they represent, they often refer to their “carrier partners.” This is particularly appropriate, for many reasons. First, the business relationship between the agency and the carrier is one designed to be of mutual benefit. Second, revenue generated from this relationship goes to both parties. Finally, this business arrangement allows both participants to accomplish together what they cannot without each other.

“PIA agencies need financially sound, able and competitive insurers to meet the needs of their customers; carriers need quality, financially able independent insurance agencies to conduct the scope of business and provide the services required by insurance customers. In addition to marketing the carriers’ products, the agency processes insurance transactions, carries out the carriers’ instructions and assures that compliance obligations are met...

Canadian regulators are investigating whether banks have improperly solicited insurance business from their banking customers. Banks have been allowed to own insurance companies for about 20 years, but are not allowed to sell insurance products directly through bank branches or bank websites, said Steve Masnyk, manager of public affairs for the Insurance Brokers Association of Canada.

The IBAC filed a complaint with the Office of Superintendent of Financial Institutions, which oversees banks, alleging the Royal Bank of Canada and the Bank of Montreal have broken that rule, Masnyk told A.M. Best.

“We don’t have an issue with banks owning insurance companies, but are opposed to them retailing insurance directly with the bank, especially at the point where credit is granted,” Masnyk said. “It’s unfair to people when they are applying for credit to be pushed into any kind of insurance product.”

On November 29, PIA National met with Federal Insurance Office (FIO) Director Michael McRaith at the U.S. Treasury Department. McRaith requested the meeting to discuss PIA’s views on regulatory modernization priorities. McRaith met with PIA Executive Vice President & CEO Leonard C. Brevik, Senior Vice President Patricia A. Borowski and Assistant Vice President of Federal Affairs Mike Becker. PIA’s comments were on the record and will be included in FIO’s report to Congress.

PIA National is preparing detailed written remarks to be submitted to the FIO. The written comments are due in mid-December. Our comments and ensuing discussion primarily focused in four areas:

1. That we believe insurance is efficiently regulated by the states and independent agents play a valuable role in serving consumers.
2. That FIO should support and compliment state regulation of insurance without federal preemption of state laws.
3. That FIO could help in addressing some of the licensing challenges faced by producers:

a.   support the National Insurance Producer Registry (NIPR) 
b.   Resolve foreign corporation issues

That FIO should ensure the solvency and financial soundness of foreign carriers operating in the U.S. domestic market.

Director McRaith had a number of follow up questions and the exchange was constructive.

An insurance company’s new campaign takes a crack at the increasing number of funny insurance commercials. Erie Insurance has been running ads that take aim at the Geico gecko, the Aflac duck, Flo, the Progressive spokeswoman, and Allstate’s mayhem guy. The company’s newest ad says, “It’s nice to have a good laugh now and then. But really...shouldn’t billions of dollars in humorous insurance ads be put to better use? We think so. For seriously good insurance, take a look at Erie Insurance.” The ad promises: “We give you great insurance.” A guy in a Groucho Marx getup drives the point home.

Erie Insurance Group is a member of The PIA Partnership.

Here’s Erie ad: http://www.seriouslygoodinsurance.com/landing.cfm

WASHINGTON, Tuesday, June 21, 2011  - The National Association of Professional Insurance Agents (PIA) is pleased to announce that Selective Insurance Company of America (Selective) has joined The PIA Partnership.

Comprised of senior insurance company executives, The PIA Partnership identifies areas of opportunity in the agency-company partnership, facilitates dialogue between senior company executives and PIA leaders and conducts solution-oriented research to enable the creation of practical hands-on tools for agents.

"We are extremely pleased that Selective, a distinguished company with a solid track record of supporting the American agency system, has joined The PIA Partnership," said PIA National Vice President/Treasurer Andrew C. Harris. "Selective's participation demonstrates its ongoing commitment to the continuing success of professional independent agents across the country."

"We believe in PIA's value proposition," said John Marchioni, Executive Vice President, Insurance Operations, of the company's decision to participate in The PIA Partnership. "Your advocacy, your objectives and your business tools align with Selective's commitment to the independent agent channel."

"I've seen first-hand the work PIA is doing on behalf of independent agents in our distribution system," Marchioni said. "The Partnership has developed some valuable tools and agents who are able to leverage this insight will be able to increase their value to their customers."

Selective Insurance Company of America is a subsidiary of Selective Insurance Group, Inc., a holding company for seven property and casualty insurance companies rated "A+" (Superior) by A.M. Best. Through independent agents, the insurance companies offer primary and alternative market insurance for commercial and personal risks, and flood insurance underwritten by the National Flood Insurance Program. Selective maintains a website at www.selective.com.

Founded in 1996 with start-up funding from PIA National, The PIA Partnership identifies areas of opportunity in the agency-company partnership, facilitates dialogue between company executives and PIA leaders and conducts solution-oriented research designed to enable both agents and companies to profit from these opportunities. Recent projects of The PIA Partnership have included Reaching Gen Y and Making the Internet Work for You; A Practical Guide to Successful Planning; and Perpetuation Central.

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.