PIA CONNECTION - pianet · · 2017-05-26NEWS BRIEF 6-7 Property Owners’ P&C IQ is...

PIA CONNECTIONNATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

MAY 2017

NO FEDERAL INSURANCE CZAR! PAGE 9

New PIA Agent Survey Results p. 13-21

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Customized Coverage for Specialty Liability Insurance

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Extraordinary Claims ResultsFlexible Underwriting

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www.primeis.com

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TRANSPORTATION SERVICES:COMMERCIAL AUTOTRUCKING: COMMERCIAL AUTO

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Final Prime Ad_PRINT READY.indd 1 10/17/16 11:56 AM

PIA CONNECTION | www.pianet.com May 2017 | 3

PresidentGareth W. Blackwell, Jr., CPCU (ME) [email protected]

President-Elect Timothy G. Russell, CPCU (CT) [email protected]

Vice President/Treasurer Keith A. Savino, CPIA (NJ) [email protected]

Secretary/Assistant Treasurer Dennis D. Kuhnke, CIC, CPIA (WI)[email protected]

Immediate Past PresidentRobert W. Hansen, Jr., LUTCF, CPIA (NE/IA) [email protected]

Executive Vice President/CEO Mike Becker (PIA National) [email protected]

Publisher/Editor-in-Chief Ted Besesparis [email protected]

Managing Editor Sade Hale [email protected]

Advertising Director Alexi Papandon, CAE [email protected]

Government/Regulatory Affairs Executive Editor Patricia A. Borowski, CPIW [email protected]

Contributing Editors Jon Gentile [email protected]

Production Editor Laurel Prucha Moran [email protected]

PIA Connection is published ten times yearly by the National Association of Professional Insurance Agents.

400 North Washington Street,Alexandria, Virginia 22314©2016 All rights reserved.

The information in this publication is general in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with compe-tent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers.

All PIA members receive PIA Connection at the member subscription rate of $12.00 per year.

Non-member subscriptions available at $24.00 per year ppd.

For additional information on any of the subjects addressed in this publication, please access the PIA National website at www.pianet.com.

PIA CONNECTIONNATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

MAY 2017

CONTENTSNEWS BRIEF 6-7Property Owners’ P&C IQ is Lacking…State Farm to Close Facilities on Auto Losses…UK Freezes Assets of North Korean Insurance Company…Q1 a Disaster for Insurance Payouts… P/C Insurers Saw Weak 2016…

CARRIERS TURN TO AGENTS AS AUTO INSURANCE SALES SLOW 8

A CONTRADICTION WITHIN THE CHOICE ACT 9PIA’s Jon Gentile explains why Congress should consign the proposed Office of the Insurance Advocate to the nearest trash can.

2017 PIA FEDERAL LEGISLATIVE SUMMIT A SUCCESS! 10-11Members of PIA from around the country came to Washington, D.C. April 5-6 and participated in a successful 2017 PIA Federal Legislative Summit (FLS).

WHAT CAR INSURANCE CUSTOMERS LIE ABOUT 12A look at the costs to the insurance industry of inaccurate information.

THE 2017 PIA INDEPENDENT AGENT SURVEY 13-21PIA releases in-depth data from a survey of PIA member agencies, put into perspective in an analysis by PIA’s Patricia A. Borowski.

THE 2017 PIA NATIONAL AWARDS 22-23 PIA National honors the 2017 Professional Agent of the Year, YIP of the Year and CSR of the Year

ARE YOUR CLIENTS AWARE THAT FLOOD IS NOT COVERED ON THEIR HOMEOWNERS POLICY? 24-25

EXPLOIT YOUR BUILT-IN COMPETITIVE ADVANTAGES WITH DIGITAL–THE RIGHT WAY 26-27Tom Wetzel provides a blueprint.

DEPARTMENTSFrom the President . . . . . . . . . . . . . . . . 5From the CEO . . . . . . . . . . . . . . . . . . . 5PIA Affiliate Listings . . . . . . . . . . . . . . 28PIA Product Spotlight . . . . . . . . . . . . . . 29PIA Marketplace . . . . . . . . . . . . . . . . 29PIA Member Benefits . . . . . . . . . . . . . . 30

Cover image: © David Klein

PIA AWARDS PAGES 22-23

Prime Insurance Company is a True Excess and Surplus Lines Carrier that provides:

Customized Coverage for Specialty Liability Insurance

Partnership Approach and Innovative Solutions

Extraordinary Claims ResultsFlexible Underwriting

Risk Management Expertise

*For latest ratings, access www.ambest.com

800-257-5590

www.primeis.com

[email protected]

FEAR NO RISKP R I M E D E L I V E R S C OV E R AG E W I T H C O N F I D E N C E

TRANSPORTATION SERVICES:COMMERCIAL AUTOTRUCKING: COMMERCIAL AUTO

RECREATION: COMMERCIAL LIABILITY STRIP MALL: COMMERCIAL PROPERTY

Final Prime Ad_PRINT READY.indd 1 10/17/16 11:56 AM

Business Insurance

Employee Benefi ts

Auto

Home

42314A

Policies are written subject to the National Flood Insurance Program. Insurance is provided by the property and casualty insurance companies of The Hartford Financial Services Group, Inc., Hartford, CT. © 2014 The Hartford Financial Services Group, Inc., Hartford, CT 06155. All Rights Reserved.

The Hartford is one of the largest providers of flood insurance, offering a full-service solution, competitive commissions and a dedicated local Sales Director.Contact Joseph Surowiecki, National Flood Sales Manager at 860.547.5006.

PARTNER WITH THE HARTFORD,A LEADER IN FLOOD INSURANCE.

The Hartford is proud to be PIA’s nationally endorsed flood insurance provider.

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FROM THE PRESIDENT

FROM THE CEO

IT’S NOT BEEN A GOOD COUPLE OF YEARS FOR auto insurance. J.D. Power recently reported that auto insurance shop-ping activity has been stagnant and rate increases have been modest for the second straight year.

As a result, carriers are becoming more reliant on “agent rec-ommendations as a driver of customer consideration and quote generation.”

J.D. Power also reported that it’s not just carriers that are turning to agents; more customers are doing so, as well.

“Shoppers are also increasingly reliant on agent recommendations when considering and quoting insurers, compared to 2015 (a 9- and 10-percentage point increase, respectively),” says the J.D. Power 2017 U.S. Insurance Shopping Study.

The study also found that the key performance indicators affect-ing the auto insurance purchase experience the most are: ensuring the customer completely understands coverage; providing guidance and/or tools for selecting the right coverage; and ensuring customers

understand premium calculations. Things that agents excel at doing.

To put it another way: When times are tough, both carriers and customers rely even more on agents.

This should come as no sur-prise. Our customers know the value that independent insurance agents deliver. So do our carrier partners. Customers appreciate our professionalism and the fact that we provide insurance products that meet their needs. And carriers know they can depend on us to represent them well in an increasingly competitive marketplace.

Gary BlackwellPresident

Earlier this year, PIA and the National Underwriter released one of the most comprehensive agent surveys ever completed. But in addition to that PIA/NU survey, PIA conducted an additional PIA members-only survey—the results of which were not included in the broader, previously-released results.

Now for the first time, the results of the exclusive 2017 PIA Independent Agent Survey are being released here, in a special supplement to this issue of PIA Connection. They provide a detailed profile of PIA agencies. Some highlights:

• PIA agencies continue to be retail operations (91.3%). In 58.6% of the agencies, commercial lines drive their premium volume.

• PIA agencies are holding their own and finding placements among their admitted carriers without great difficulty.

• In almost identical ratios to the NU results, 27.2% of PIA agen-cies believe that their carrier relationships have improved while 51.2% believe they have remained the same. Only 22% believe their carrier relationships have declined.

• The majority of agencies reported they increased their agency volume in the last 3-5 years.

• PIA agencies’ use of technology is expanding.

Responses to the PIA-specific survey were complimentary to those of the broader NU/PIA survey. Together, they form a statistically-accurate picture of the broad independent agency marketplace and of the segment consisting of PIA member agencies. The PIA-only data will be useful to PIA in developing our own strategies to help our mem-bers succeed, and to carriers in their dealings with their appointed agencies.

Taken together, these two extensive, comprehensive surveys pro-vide PIA members and their carrier partners with a level of informa-tion that will enable both to better align their efforts to ensure mutual success and profitability.

Mike BeckerExecutive Vice President & CEO

6 | May 2017 www.pianet.com | PIA CONNECTION

NEWS BRIEF!

STATE FARM TO CLOSE FACILITIES ON AUTO LOSSESState Farm Mutual Auto-mobile Insurance Co., the largest U.S. home and auto insurer, plans to shut 11 U.S. facilities, displac-ing about 4,200 workers, after a $7 billion annual underwriting loss last year on auto policies. The com-pany said employees in affected facilities will have opportunities at other State Farm locations.

State Farm is among companies that have been

PROPERTY OWNERS’ P&C IQ LACKINGA survey by the National Associa-tion of Insurance Commissioners (NAIC) reveals that one-third of homeowners believe flood dam-age is covered by their standard policy, more than 50 percent think their policy covers them in the event of a water line break, 35 percent believe they will be com-pensated for an earthquake, and a similar percentage think their poli-cies cover mold.

In addition, fewer than 22 percent of homeowners view changing weather patterns or disasters as an important factor when updat-ing their homeowners insurance policy. Nearly all policies provide fire, wind, hail, lightning, and explosion protection but exclude damage caused by earthquakes, floods, mold, nuclear incidents, terrorism, and acts of war.

The NAIC survey revealed 56

percent of homeowners have not reviewed their insurance policies in more than a year and 14 percent are unsure when—if ever—they last reviewed their policies. Research also indicates that nearly half of homeowners (44 percent) have a home inven-tory. But of those who have an inventory, more than 40 percent have not updated it in more than a year.

“During the past decade, the United States has experienced significant shifts in the frequency, severity, and location of natural disasters,” said NAIC CEO Mike Consedine. “According to our sur-vey, most consumers aren’t con-necting the dots between these shifts and the impact on their home insurance needs. Missing these links can be costly.”

UK FREEZES THE ASSETS OF NORTH KOREAN INSURANCE COMPANYThe UK has frozen the assets of a North Korean company based in south-east London after claims it funneled cash to Pyongyang’s nuclear weapons program.

The Korea National Insurance Corporation (KNIC) is registered at a property in the Blackheath section of London. The Euro-pean Union (EU) has already imposed sanctions against the company, which it describes as “generating substantial foreign exchange revenue which is used to support the regime in North Korea.” The move by the EU followed a United Nations resolution. A company spokesman told the Sunday Times the allegations against the company were groundless.

The Korea National Insurance Corporation is registered at a property in the Black-heath section of London.

Homeowners who believe �ood damage is covered by their standard policy.

Homeowners who believe they will be compensated for an earthquake or mold.

Homeowners have not reviewed their policy in more than a year.

Homeowners who believe they are covered in the event of a water main break.

33%50% 35%

56%


NEWS BRIEF!burned in recent years by higher claims expenses from car crashes as more drivers are distracted by electronic devices. Higher repair costs have also hurt in an era when drivers are logging more miles behind the wheel. Companies have been charging more for coverage and looking for ways to reduce costs. State Farm’s net income dropped to $400 million last year from $6.2 billion in 2015, hurt by the auto insurance results.

Q1 A DISASTER FOR INSURANCE PAYOUTSAon Benfield reports that insured damage from all natural disasters in the United States in the first quarter is cur-rently estimated to total nearly $7 billion, and of that, about $6 billion is from severe storms. That makes this year’s opening three months the most expensive first quarter on record for the insur-ance industry in paying out severe thunderstorm-related claims. This year’s

first-quarter cost com-pares with an average of about $1.5 billion in such first-quarter insured losses from 2000-2016, said Aon Benfield.

According to preliminary government data, there were 425 tornadoes from January through March, compared with 205 in the same period in 2016, and an average of 93 in the same period for 2014-2016. Aon Benfield meteo-rologist Steve Bowen noted that April is “shap-ing up as another costly month” for U.S. insurers.

P&C INSURERS SAW WEAK 2016According to ISO and the Property Casualty

Insurers Association of America (PCI), U.S. prop-erty and casualty insurers saw net income fall by 25 percent to $42.6 billion for 2016 following higher catastrophe losses.

The market saw an overall net underwriting loss for 2016 of $4.7 billion, com-pared with an $8.9 billion gain in 2015, following a string of catastrophes earlier in the year as well as less favorable reserve development. Insured catastrophe losses totaled $21.6 billion in 2016, com-pared with $15.2 billion in 2015. Net investment income also decreased slightly to $46.3 billion in 2016 from $47.2 billion the year before.

Commercial lines direct written premiums expanded to $258.6 billion in 2016, a 3.1 percent increase from a year earlier, according to estimates from ISO Mar-ketStance. The increase in direct premiums was mostly the result of exposure growth in small commercial and middle market risks, such as spe-cialty trade contractors, building construction, real estate, and auto dealers.

Despite overall losses, insurers saw net premi-ums rise from $506 million in 2015 to $528 million in 2016. Net premiums earned for the group have seen increases in each of the past two years.

Mike Smith Editorial Cartoon used with the permission of Mike Smith, King Features Syndicate and the Cartoonist Group. All rights reserved.

THIS YEAR’S OPENING THREE

MONTHS WAS THE MOST

EXPENSIVE FIRST QUARTER ON

RECORD FOR THE INSURANCE

INDUSTRY IN PAYING OUT

SEVERE THUNDERSTORM-

RELATED CLAIMS.


AMID A SECOND STRAIGHT year of stagnant auto insur-ance shopping activity and modest rate increases, auto insurance companies have grown increasingly reliant on great customer service, personalized advice and strong agents to win over their customers, according to the J.D. Power 2017 U.S. Insurance Shopping Study.

With average premiums increasing by a modest 2-3% annually, new insurance shopping rates flat and new customer acquisition rates unchanged, auto insurers are faced with the challenge of resisting commoditization.

The study finds that as auto insurers struggle to compete on price, they are being forced to differentiate based on factors such as brand reputation, agent recommendations, product and service to drive new business sales.

Key findings of the 2017 study include:• Agents continue to play a key role: Agent recommendations

have become an increasingly important driver of customer consideration and quote generation. Shoppers are also increas-ingly reliant on agent recommendations when considering and quoting insurers, compared to 2015 (a 9- and 10-percentage point increase, respectively).

• Auto insurance market shopping stagnates: This year sees a continuation of the slowdown in shopping activity that was first noted in 2016. Average premium rates have increased just 2-3%; customer acquisition rates are flat; new quote volume is flat; and the total number of insurance shoppers is largely unchanged from the last year.

• Price is more influential in brand consideration and quot-ing: Despite stagnant pricing, price remains a driver in every stage of the acquisition process, meaning insurers must always take it into consideration to be competitive in the market. For example, the influence of price on a shopper’s decision to consider and quote a brand has increased 5 percentage points in each of the past two years. As a result, the importance of price has surpassed that of a good past service experience when a shopper considers or quotes a brand.

• Communication is critical driver of satisfaction: The key per-formance indicators affecting the purchase experience the most are: ensuring the customer completely understands coverage; providing guidance and/or tools for selecting the right cover-age; and ensuring customers understand premium calculations.

STUDY RANKINGSErie Insurance ranks highest in the J.D. Power Survey among

auto insurers in providing a satisfying purchase experience, with a score of 879. This marks the fifth consecutive year Erie Insurance has ranked highest in the study. American Family ranks second (869); The Hartford third (861); Automobile Club Group fourth (852); and Amica Mutual fifth (850).

Erie Insurance and The Hartford are carrier members of The PIA Partnership.

WHY ARE AUTO ACCIDENTS ON THE RISE?According to the National Safety Council, traffic deaths increased

6 percent to 40,200—the first time since 2007 that more than 40,000 have died in motor vehicle crashes in a single year. The 2016 total fol-lows a 7 percent rise in 2015.

In addition, the U.S. Department of Transportation’s early estimates show the motor vehicle traffic fatalities for the first nine months of 2016 increased about 8 percent as compared to the motor vehicle traffic fatalities for the first nine months of 2015.

While much of these increases can be attributed to lower gasoline prices and an improving economy which has increased motor-vehicle mileage, there’s more at work.

The Department of Transportation’s Federal Highway Administration shows that driving jumped 3.5 percent over 2015, the largest uptick in more than a decade. Americans drove more than 3.15 trillion miles, equivalent to around 337 round trips from Earth to Pluto. The previous record, around 3 trillion miles, was set in 2007.

A new study from AAA Foundation for Traffic Safety shows that millennial drivers (more 19- to 39-year-old drivers) are texting, speeding and running red lights. While the statistics improve for older drivers, it’s not by much. Approximately 660,000 drivers are attempt-ing to use their phones while behind the wheel of an automobile.

On top of that, we now have sensors and technologies that respond to our every move in vehicles. We have apps that connect to center consoles and more touch-screen technology in vehicles than ever before. Distractions abound.

Add to all this, the costs of repairs are up—repairing cars, and also repairing the human body.

Advanced technology in cars is a great advantage, but repairing is complex. Computer-based systems can be very expensive. In addition, according to the Mayo Clinic, more than 35 percent of spinal cord injuries are caused by vehicle accidents (truck, automobile, or motor-cycle). Costs to treat this one kind of injury increased 95 percent between 1999 and 2008.

J.D. POWER: AS AUTO INSURANCE SALES SLOW, CARRIERS TURN TO AGENTS


CAPITOL HILL REPORT By Jon GentileVice President, Government Relations

PIA National

A CONTRADICTION WITHIN THE CHOICE ACT

WHEN DOES LEGISLATION that is supposed to scale back onerous federal regulation actually end up strength-ening it? When it contains a provision that has the potential of creating a federal insurance czar.

The Financial CHOICE Act is designed to reform Dodd-Frank and get rid of the many restrictions it places on the ability of our financial system to function in a manner that will grow our economy. In most respects, it does an excellent job of this. But inexplicably, the CHOICE Act contains a provision that could increase, rather than reduce, federal encroachment on insurance.

The provision in question merges the Federal Insurance Office (FIO) with the independent member with insur-ance expertise on the Financial Stability Oversight Council (FSOC), to create the Office of Independent Insurance Advocate. This provision runs completely counter to the intent of CHOICE reform by creating a new, expansive, and equally unneces-sary structure with the potential to grow quickly into a full-fledged federal insurance bureaucracy.

Reading the draft of the CHOICE Act, we cannot help but be struck by how powerful the Office of the Independent Insurance Advocate would be. The direc-tor of the new office would be a Senate-confirmed presidential appointee with a six-year term. The new office would have its own budget and would be able to hire its own employees, including attorneys, analysts, and economists.

Perhaps most significantly, although the new position would be housed in the Treasury Department, the Secretary of the Treasury would be prohibited by statute from taking any action to “delay or prevent

the issuance of any rule or the promulga-tion of any regulation by the Independent Insurance Advocate” or from intervening “in any manner.”

The FIO is one of the creations of Dodd-Frank that was not needed in the first place and is still not needed. Its involvement in the insurance industry over the past seven years has been confined mainly to attempts to expand its own influence. It has busied itself attempting to devise ways to extend its reach and exceed its limited congressional mandate—behav-ior typical of many federal agencies that are, in fact, superfluous.

Our nation’s vibrant insurance industry is the envy of the world. For more than 150 years, the insurance sector has been regulated successfully by the states. During the financial crisis of 2007-09, when banks and investment firms were collapsing, the insurance sector weathered the crisis. Insurance companies survived because they are regulated prudently and conserva-tively by the states.

A 2013 report by the Government Accountability Office (GAO) found that the state insurance regulatory system worked well to help mitigate the negative effects of the financial crisis on the insur-ance industry, noting that state insurance regulators took various actions to identify and lower potential risks, and help provide

capital relief for insurers. Over the years, repeated attempts have

been made to transfer regulatory author-ity over the business of insurance from the states to the federal government. These efforts, all of which have failed, have been spearheaded by those few who would stand to gain financially from such a change: a handful of major international financial services firms that regard insurance as merely another global banking product. Fortunately, Congress has always appreci-ated the fact that all insurance is local, and that banking and insurance are inherently and fundamentally dissimilar.

CHOICE is supposed to rein in an unneeded federal bureaucracy, not create a new one with even more power over the private sector. If one were to draft a proposal to extend the reach of the federal government over the insurance industry, this provision of the CHOICE Act would fit the bill. Fortunately, there is still time for lawmakers who believe in reducing, rather than greatly increasing, federal regula-tion to consign both the existing Federal Insurance Office and the prospective Office of Independent Insurance Advocate to the nearest trash can.

Jon Gentile is vice president of govern-ment relations for the National Association of Professional Insurance Agents, based in Alexandria, Va.

CHOICE IS SUPPOSED TO REIN IN AN UNNEEDED FEDERAL BUREAUCRACY, NOT CREATE A NEW ONE WITH EVEN MORE POWER OVER THE PRIVATE SECTOR.


2017 PIA FEDERAL LEGISLATIVE SUMMIT A SUCCESS!

PIA President Gary Blackwell and Maine Insurance Agents Association delegation meets with Rep. Bruce Poliquin (R-ME).

PIA of Louisiana poses with House Majority Whip Rep. Steve Scalise (R-LA).


PIA Would Like to Thank Our 2017 Federal Legislative Summit Sponsors

GOLD LEVEL

SILVER LEVEL BRONZE LEVEL

PLATINUM LEVEL

R

Sen. Heidi Heitkamp (D-ND) greets PIA of North Dakota delegation.

Pat Borowski chats with National Director Wayne White (AR) and National Director and Secretary/Assistant Treasurer Dennis Kuhnke (WI).

PIA’s 2017 PIA Legislator of the Year Rep. Dennis Ross (R-FL) and PIA President Gary Blackwell.

PIA’s 2016 PIAPAC Person of the Year Dennis Overland (MN) and Immediate Past PIAPAC Chairperson Liz Luce (WY).


FUDGING INFORMATION ON a car insurance application to get a lower rate might not seem a big deal to you, but it is to car insurance companies.

Lies and honest mistakes by custom-ers and insurance agents cost car insurers an estimated $29 billion in 2016, accord-ing to a new report by Verisk Insurance Solutions, a data analytics company. That amount equals 14% of the total premiums that motorists pay for personal auto cover-age, the report estimates.

Inaccurate information leads to under-pricing, or “premium leakage” in insurance lingo. Here are the details customers lie about, forget or omit the most:

WHO’S DRIVING THE CARCost: $10.3 billion

You’re supposed to list the licensed drivers in the household on a car insurance policy. But Verisk estimates 12% to 15% of car insurance policies are missing drivers. A parent may forget to add a newly licensed teen driver or young-adult child who returned home, for instance. A Verisk study at one of the 10 largest insurance companies found that it took more than a year on aver-age for new drivers to be added to policies.

ANNUAL MILEAGECost: $5.4 billion

Insurance companies often give price breaks for low mileage. But moves, new jobs and other changes make estimating mileage tricky. “Mileage may be more susceptible to honest mistakes rather than deliberate fraud,” the Verisk report says. “Self-reported estimates are notoriously inaccurate.”

THE CAR, HOW IT’S USED AND OTHER DETAILSCost: $4.1 billion

The type and age of a car, who owns it and whether it’s used for business are

some of the details that affect car insurance prices. Some mistakes happen because of misunderstandings. An Uber driver might not realize he needs rideshare insurance. Others are deliberate. Verisk said that people sometimes insure a vehicle they don’t own to get insurance for someone with a bad driving record.

TRAFFIC VIOLATIONS AND ACCIDENTSCost: $3.4 billion

Keeping violations secret to avoid an insurance increase after an accident or ticket might be tempting. But the insurance company can find out by checking your motor vehicle record. Sometimes violations fall under the radar if insurers don’t monitor records closely enough. Foreign driver’s license abuse is becoming an increasing prob-lem, too, the report says. This is when some-one pretends to be a foreign driver to hide violations. The higher price for being a new driver in the U.S. is less than the surcharge for a bad driving record, according to Verisk.

WHERE THE CAR IS GARAGEDCost: $2.9 billion

Car insurance is based partly on where the vehicle is garaged, meaning where it’s usually parked when it’s not in use, like your home. Sometimes people forget to inform the insurer when they move. But some customers list a different address to get a cheaper price. Verisk said a vehicle insured in Gary, Indiana, but garaged in Chicago would be priced 35% less than it should, for example. A Verisk analysis of an insurance company’s policies found that more than 10% of customers listed wrong addresses. The most blatant errors were addresses for prisons or check-cashing companies.

DRIVER IDENTIFICATIONCost: $2.8 billion

Sometimes people provide wrong details about their identities. For example, an applicant may provide a driver’s license number that’s assigned to another person.

THE PRICE YOU COULD PAY FOR DISHONESTY

You might think you can get away with it, but it’s a bad idea to lie to an insurance company. Insurance fraud is against the law, and sophisticated tools are available to find discrepancies. Verisk markets technol-ogy that alerts insurers when applications for coverage likely have inaccuracies.

Trying to pull a fast one on the insurance company also puts your finances at risk. Get caught in a deliberate lie, and the insurer could deny coverage for a claim.

Barbara Marquand is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @barbaramarquand.

WHAT CAR INSURANCE CUSTOMERS LIE ABOUT—OR FORGET Barbara Marquand

NerdWallet

THE 2017 PIA INDEPENDENT AGENT SURVEY

A PIA-EXCLUSIVE ADDENDUM TO THE NATIONAL UNDERWRITER/PIA SURVEY

A PIA-exclusive survey conducted in conjunction with the 2017 National Underwriter/PIA Independent Agent Survey finds synergy across the board.

This additional PIA survey provides a “deeper dive” and additional data on many issues. It elicits new insights into PIA agencies’ position in the marketplace, their plans for future growth, and the current state of their carrier relationships. In this report of our findings, the survey’s co-author Patricia A. Borowski analyzes this additional data and comments on what it means for PIA member agencies.

By Patricia A. Borowski Senior Vice President, Industry Affairs PIA National



PROFILE OF THE PIA AGENCY

BY FAR, SURVEYS ARE THE MOST OFTEN USED tool in assessment research. Yet, the public that consumes

them, almost daily, has little awareness of all the caveats with

which they come.

Too often surveys are skewed to get a specific result

(“Polling” is a great example); or have poorly-designed ques-

tions that are not understand, or for which all optional answers

apply; or suffer from too few responses, or over-responses from

only a part of the needed sample group.

Also, most surveys are “once-&-done” ventures that cre-

ate single “point-in-time” data. These results are frozen in

time (and temperament) to when responders completed their

answers. The challenge is to determine how valid such results

are in terms of scope, scale and nature going forward.

So, what do we need from a survey so that it is worth our

consideration and provides information upon which we can

rely?

First, the sponsor and survey “engineer” need to be

authorities with validated backgrounds and expertise in the

survey subject, method, and target population. Second, similar

surveys, asking like-kind questions and querying the same

population, should produce a similar pattern in responses that

show connected trends and/or logical subset-responses.

The 2017 National Underwriter/PIA Independent Agent

Survey brings proven experience, expertise and tools to this

process, making the survey results noteworthy for this industry.

The National Underwriter has been a top media publication

for the insurance industry for more than 100 years. Its reader-

ship is comprised of all sectors of our business. NU has a long

tradition of surveying their readers’ opinions, and periodically

repeats these surveys so that credible data comparisons are

possible, upon which sounder predictions can be made.

PIA National was very pleased to partner this year with

the National Underwriter to produce the 2017 National

Underwriter/PIA Independent Agent Survey, which was

published in February 2017. This survey drew responses from

the PIA membership, together with those from lists furnished

by the Underwriter and the survey facilitator, renowned intel-

ligence firm Flaspöhler Research, with which NU has enjoyed a

50–5934%

40–4913%

65 and older23%

60–6427%

30–39 3%

Under 30 0%

AGE OF SURVEY RESPONDANT?

WHO IS THE PIA AGENCY? This is an experienced, well-educated, and insurance-knowledgeable population that own and make the decisions for their agencies, and carry the direct legal and financial responsibility for their operations and results.

70%HOLD A CPCU AND/OR CIC DESIGNATION.

92%OF TOTAL RESPONDENTS HAVE WORKED IN THE INSURANCE BUSINESS MORE THAN 15 YEARS.

92%OF RESPONDENTS IDENTIFIED THEMSELVES EITHER AS AN AGENCY PRINCIPAL OR OWNER (MOSTLY OWNERS).


decade-long editorial relationship.

In addition to our participation in this survey, PIA was able

to conduct an additional, complimentary PIA member-only

survey for our exclusive use that respondents could elect

to also complete. This article delves into results of this PIA-

specific survey.

(Noted for comparison are results from several surveys since

2013 in which PIA engaged*, either exclusively or as an active

survey partner with others.)

Also, because the 2017 PIA-only survey results so tightly

follow those of the larger NU universe survey results, we are

able to make further assessments about PIA agencies. This rich

body of data provides a solid, well-qualified suite of results

of current status, as well as a sound sense of the most recent

trends, giving a better basis upon which one can extend

assessments going forward.

*Major survey results used for comparative purposes for this report are: 2013 PIA National Market Tends Survey; 2015 ACORD Producer Survey; 2016 Insurance Digital Revolution Summary of Producers & Technology; and a series of similar surveys done by several other publications between 2013 to current.

TRADE & BUSINESS PROFILE OF THE PIA AGENCY

The trade and business profile of PIA agencies produced

from responses to the PIA-only questions is highly similar to

that produced by the broader NU survey. Also, these results

show that whether you are a PIA agency or work for a major

alphabet house, the concerns, experience and mix of issues are

highly similar. This should dispel the misconception by some

that PIA agencies operate and experience this business on its

margins.

WHO IS THE PIA AGENCY? Those that completed the

surveys were 92.2% agency owner/principals with (91.7%) hav-

ing more than 15 years of experience in the insurance business.

This population reports 69.7% hold a CPCU &/or CIC designa-

tion, with 54.2% reporting other designations held in addition

to those listed. Further, 69.4% are corporations with only 19%

reporting they are LLCs.

This is an experienced, well-educated, and insurance-knowl-

edgeable population that own and make the decisions for their

agencies, and carry the direct legal and financial responsibility

for their operations and results.

As to age, 51% report being under 60, with 47.3% being 40-49

(equal spread for each decade). This makes 49% age 60 or older.

We need to make a note here: This is a well-balanced age range

of owners. Too often, we hear from some that such numbers

show a constantly aging agency population. However, in 2016

PIA was asked by National Public Radio (NPR) to work with them

on a story about attracting new talent to the business of insur-

ance. We thank the agencies and carrier representatives that

participated in this program, which aired on March 15, 2016 as

part of NPR’s “Morning Edition.”

During this piece, a carrier expert noted that 58% of the senior

executives of US insurers are beyond retirement age, i.e. +65

years old (Hmm, now who’s old?) The fact of the matter is that

overwhelmingly, those that completed this survey are the owners,

not employees of some else’s corporation. Further, with 70-years

of age being “the new 50,” and people living a great deal longer

(and in a more expensive society), it makes perfect sense that if

you have the opportunity and ability, even AARP tells you to keep

working.

MIX OF BUSINESS: PIA agencies continue to be retail

(Main Street) operations (91.3%). In 58.6% of the agencies,

commercial lines drives their premium volume (half with more

than 40%; and the remainder more than 60%), with most

focused on small business. However, personal lines continues

to play a material role

in the 50+% of agen-

cies having more than

40% of business in P/L.

Just as with any insurer,

the majority of account/

policy units and service requirements are taken up by personal

lines. However, commercial lines generate the leading portion

of agencies’ premium-volume, with the majority comprised of

small-to-mid-sized insureds.

Further, a majority of agencies (57.8%) report writing both

life and health lines, which includes A&H. The majority has

more than 15 years of experience in these lines of insurance.

This strong percentage participating in these lines still report

a smaller proportion of overall agency earning for these lines

91%ARE RETAIL (MAIN STREET) OPERATIONS


(93.8% reporting less than 20% of total earnings). In health

insurance 78.48% participate in private market placement

while 16.2% have had to engage in ACA markets for their

customers. These agencies were also evenly split between

reporting that these earnings represented an increase,

decrease or remained the same over the last 5-years.

BUSINESS MIX MOVEMENTS: Nonetheless, 53.4%

state that they will be increasing their position in these lines

over the next 5-years. This statistic is further supported

by 72.7% stating that they will not be getting out of these

lines of insurance. This 2017 result improved upon the 2013

study*, which showed mixed results; at that time, fewer

agencies would increase or enter these lines. Further, PIA

agencies showed a distinct preference for engaging and

entering Life lines at that time.

In this latest 2017 report, there is a leveling out with

agencies showing preference for growing on both seg-

ments. These differences might be more attributable to

agencies being uncertain the scope of impact the ACA

would have on their business in 2013 vs. learning that

private market options would remain strong and provide an

offset to their initial concerns.

As to overall business, PIA agencies continue to report

that approximately 25% (+/- of that depending upon size

and market tenor) of their agency business requires place-

ment in non-standard markets, the majority of which is E&S,

and greatly prefer an ongoing E&S market relationship.

This year the same percentage (36.5%) reported that E&S

placements have increased over the last three years with

another 48.4% reporting that they have remained the same

for their agencies. This latter percentage was 51% in 2013.*

Further, almost the same percentages believe that E&S

market share of their agency business will increase over

the next three years (34%), with 52.4% believing their E&S

placements will remain the same. This data also begins to

hint at a firming market trend.

*2013 PIA Market Trends Survey

Decreased

IncreasedRemained the same

37%

14%

48%

Don’t know

1%

OVER THE LAST 3 YEARS, HAS YOUR AGENCY’S PERCENTAGE OF

E&S/SPECIALTY MARKET WRITINGS:

20%-39%

Less than 20%

10%

12%

28%

47%

40%-59%

60% or more

$ $

$ $

$ $ $ $ $

$ $ $ $ $ $ $ $ $

WHAT PERCENTAGE OF P&C BUSINESS YOUR AGENCY

WRITES IS PERSONAL LINES?

$ $ $ $ $ $ $ $

20%-39%

Less than 20%

16%

40%-59%

60% or more

30%

29%

24%

$$$ $ $ $ $ $

$ $ $ $ $ $ $

$ $ $ $ $

WHAT PERCENTAGE OF P&C BUSINESS YOUR AGENCY

WRITES IS COMMERCIAL LINES?


EARNINGS AND MARKETS

EARNINGS AND MARKETS

AGENCY EARNINGS: Over 60% or more of agencies

reported that commissions had increased or stayed the same

for PL, CL, Health/A&H and/or Life lines. When asked what

percentage of change did they experience (with the exception

of health insurance), the majority of agencies reported a 1-5%

change in commission (as a percentage of their commission

rate, not as a percentage of premium). While the percentages

of increase or loss in commission earnings for P/L and C/L were

relatively the same, the financial impact to agencies of such

changes is felt differently among the lines.

Margins for P/L are already modest. The nature of P/L

requires more staff hands-on per account, but C/L are more

complex, requiring more expert service.

With respect to health insurance, 68.1% of PIA agencies

reported a loss of more than 10% of earnings in this line over

the last three-years with an increase in required service. The

unsettled nature of coverage-offerings, pricing and which

health insurers are participating in which markets means much

more service work per agency customer. Add to this the fact

that work done to compare and/or place through the ACA

goes uncompensated.

MARKETS MOVING FORWARD: When asked if the

agency is planning to expand their business over the next

5-years, 63.5% said YES. In 2013* when asked how market share

of their agency would perform in the next 3 years, agencies

overwhelmingly agreed that their agency business would grow

(84% in PL, 76% in CL and 71% in WC), and more than 60%

of agencies believed that the overall independent insurance

agency system would increase market share as well (54% in PL;

66% in CL; and 67% in WC).

As a side note, in the 2013 study* there was a substantial

percentage (more than 25%) of younger, non-owner agency staff

also completing the survey. When comparing agency-owners’

responses to those of non-owning younger staff, we found that

how positive or negative young staff was about the future of their

agency and/or the IA system was directly correlated to how posi-

tive or negative their agency owner-principals were.

Clearly positive owner-leadership has positive effects on

employees, and studies show that firms with positive views

among their owners and employees do better competitively.

Put another way, the clear positivity of owner-leadership

appears to directly affect the positive attitudes of employees.

A further point here is that studies also show that firms with

positive views among their owners and employees also do bet-

ter competitively.

CARRIER RELATIONSHIPS

PIA AGENCIES ARE POSITIVE ABOUT CARRIER RELATIONSHIPS: The dream of every PIA Main Street agency

is to be able to place all their business with and through their

standard insurer arrangements. This is because, in general, both

pricing and coverage protection are better for their agency

customers in these markets. As long as the majority of their stan-

dard agency insurance business can be placed with these stan-

dard carriers, PIA agencies have control of their marketplace.

That contributes to positive agency-carrier relations. Conversely,

when standard markets become a challenge for PIA agencies,

it generally starts with increased difficulty negotiating with their

standard insurers’ underwriting desks. In turn, that forces a larger

portion of their agency insurance placements out into alternative

placements, i.e., residual and/or E&S markets. This change-up

in placement pattern lessens agency controls, increases pricing

and usually decreases some coverage for agency customers.

That in turn also creates more E&O exposure for agencies that

increases friction in agency-carrier relations.

In the 2013 survey*, PIA members agreed that compared

to 2012, they had to remarket more business due to changes

in underwriting requirements and/or rate increases greater

than 20% (27.9% PL, 19.44% for CL & 12.50% for WC). However,

when asked if, as a result of all this did their percentage of

business going into E&S or residual markets increase, an aver-

age of 75% for E&S and 81% for residual markets reported that

*2013 PIA Market Trends Survey

HEALTH INSURANCE EARNINGS

The unsettled nature of coverage-offerings, pricing and which health insurers are participating in which markets means much more service work per agency customer.


such placements for their agencies remained unchanged from

2012. Hence, while remarketing was up, the new placements

went to other standard-market carriers in the agency.

Looking at this year’s results, while some firming has been

reported in both the general NU and PIA surveys’ results, to

include an increase percentage of placements in E&S/Residual

markets (as noted earlier), it does not yet constitute a tipping

from a competitive functioning standard marketplace to one

that is sliding into market difficulties.

PIA agencies are holding their own and finding placements

among their admitted carriers, as an overall market experience,

without great difficulty. Therefore, we should not be surprised

to see that in almost identical ratios to the N/U results, 27.2%

of PIA agencies believe that their carrier relationships have

improved while 51.2% believe they have remained the same.

(Please also note that we believe it is fair to presume that if

agencies checked “remains the same,” this means that rela-

tions are functioning, which is a positive characteristic.)

A sign of significant adverse changes existing in the market-

place is when carriers begin large-scale agency terminations,

and those agencies have difficulty establishing new admitted-

market business relationships. In the past, PIA agencies have

described this as: “Hoping you can be an agency that will be

chosen.” When markets are functioning, PIA agencies have

better control as “an agency of choice.” This means that the PIA

agency is (more than not) able to choose carrier partnerships

and/or remain a partner of choice for their desired carriers.

More than 51% of PIA agencies reported that they had

changed insurer-partnerships in the last 3-5 years. More than

50% reported it was their agency’s decision to do so with

another 23 % advising that it was a mutual decision.

A major difference of core/fundamental market perspec-

tive that independent insurance agencies and broker-firms

have over carriers is that they are committed to knowing the

underwriting profile and coverage needs of their varied insur-

ance customers. Insurers, on the other hand, are interested in

gathering the largest number of insureds that will match their

prescribed underwriting and claims experience tolerances.

So PIA agencies know that they must develop multi-carrier

relationships. As a result, they develop a very good under-

standing and appreciation for how given carriers fit into their

marketplace’s insurance pricing, underwriting and coverage

perspectives, as well as their competitive positions.

Agencies appreciate that carriers do not all want the same

exact thing in any given marketplace. Further, some carriers are

good at one thing while others are better at something else,

either in expert coverage/underwriting or competitive pricing.

These differing market appetites and tolerances among carri-

ers is also why agencies may need to place coverage among

several carriers in order to make the “package” better meet

the insurance customer’s requirements.

This whole market view among agencies is clearly evident in

the larger NU survey results when agencies/brokers are asked

to assess carriers. They know and respect that carrier A is bet-

ter then B or C at different things, whether that be the activities

that most directly affect the day-to-day working and processing

relationship (turnaround time, etc.), to which carrier is better

at which certain types of bonds vs. pollution coverage and

CARRIER RELATIONSHIPS

RESPONDENT’S RELATIONSHIP WITH THEIR CARRIERS

OVER THE PAST THREE YEARS.

CARRIER RELATIONSHIPS POSITIVE. While 22% thought their carrier relations declined…..51% thought they were stable (good for carriers) and an additional 27% thought they had improved.

Declined

22%

Improved

27%

Stayed the same

51%

DID RESPONDENT CHANGE CARRIERS IN

THE PAST THREE TO FIVE YEARS?

Did not change carrier

Change carrier, agent’s decision

Change carrier, carrier’s decision

Change carrier, mutual decision

Change carrier, other

48% 26%

9%

11%

4%


COMMENTS FROM AGENTS

the like. The positive functioning of the current marketplace is

further underscored by the fact that in the larger N/U survey,

agencies and broker-firms had their list of prospective carriers

as well. PIA agencies understand that rare is the carrier that will

score excellent in every category. As long as carriers and offer-

ings meet the needs in an agency, then carrier relations will be

assessed as good.

COMMENTS FROM AGENTS

THE AREAS THAT PLEASE AND ANNOY: In one

section of the PIA-specific survey, we allowed open-ended

(anonymous) comments. Many of these addressed carrier rela-

tionships. The bulk of comments, pro and con, keyed on carrier

communications.

The following is a summary of agencies’ individual com-

ments reflecting a majority of observations:

Agencies want carriers that clearly and regularly com-

municate what they want from a marketplace and match that,

consistently, with the coverage, underwriting and pricing that

works competitively in their market scopes and tiers. Such car-

riers, agencies noted, also provided quick turn-around times

for answers to agencies’ inquiries (bids, binders, changes,

claims, etc.).

Agencies praised carriers that provide reasonable advance

notice and clear written explanations of all new coverages issued

(and/or changes made to current forms); access to all current

and archived carrier insurance forms and their various editions,

as well as providing access to archived underwriting instructions.

There is concern in the producer community that as

insurers move all of their issued insurance materials to online

web platforms, they are becoming less aware and deliberate

to include their standing and ongoing obligations to agencies

(as well as themselves). This concerns assuring access to an

archive of all previously issued materials by edition dates. Many

an E&O claim turns on what version of explanation, instruc-

tion and/or underwriting guide applied at the time the agency

placed. This also involves an assessment of what the carrier’s

instructions, decisions and guidance were at the time. Further,

many E&O claims have a long tail. While general corporate

trend may be to retain edition dates of previous materials for

only 3-years, that won’t work for agencies or carriers in terms of

standing insurance legal obligations.

Agencies valued carriers that have field staff trained to

actively reach out to agencies, asking what they need and

working with the agency and carrier teams to make more hap-

pen. This included working with carrier-agent councils.

FOR EXAMPLE: When asked to rank the importance (1

least, 5 most) of a carrier providing benefits listed, agencies

ranked employment and commercial leads programs the

2.21 Employment leads program

4.23 Access to current carrier forms

3.26 Access to archived carrier forms

3.71 Staff/producer training

3.96 Marketing support

4.51 Timely information on new products

4.65 Timely information on product changes

3.13 Support in agency acquisition activities

3.84 Support for upcoming agency technology investments

4.73 Continuity of underwriting & pricing behaviors in my market

4.29 More knowledgeable company reps to help our agency

DECIDING FACTORS ON A SCALE OF 1 TO 5, HOW IMPORTANT

IS IT THAT YOUR AGENCY PARTNERS OFFER EACH OF THE FOLLOWING?


lowest (66+% only ranked in 1-2). For the following, 56+%

or more of agencies valued them 4-5: Staff/producing train-

ing; Marketing support; Timely information on new products;

support for upcoming technology changes; Continuity of

underwriting “in my market;” and more knowledgeable field

and desk staff. An interesting note, which will be more fully

discussed later, is that agencies were evenly split across all 5

valuation factors when asked what importance they placed on

carriers providing support for agency acquisitions.

On the flip side, agencies’ open-ended comments expressed

frustration and noted as a major negative in their relations with

insurers whenever carriers’ communication was not clear. (Not

surprising given the aforementioned data). However, agencies

may have put a finger on what may be causing this friction.

They noted their concerns when (and that this is increas-

ing) a carrier has a high turnover rate in underwriting, servic-

ing/processing, marketing/field and/or claims staff. Agencies

observed that too-frequent a turnover in any one of these

carrier employee areas, and/or too many changes across all

these areas in a close time period “confuses” the communica-

tion lines between “the carrier” and the agency. New carrier

staff either slow down the rate of processing until they “feel”

that they’re up to speed and/or may come to the new position

having been trained in a more restrained/restrictive market-

place, i.e. trained to say “no” more times than “yes, “ while at

the same time, the carrier is still pressing the agency for more

production.

Carriers tend to think and act many times in a compartmen-

talized manner, i.e., each part of their operations works sepa-

rately. However, all these different parts converge upon and

affect the single agency. In order to do business, the agency

must take these parts and make sense of them as a whole.

Agencies must also be able to present and explain the carrier as

an integrated understandable whole to the insurance customer.

When the carrier’s parts don’t fit together because churn in staff

creates timing and/or differing views (e.g. marketing says “go”,

but underwriting says “no”), agencies have to put more time

and energy into resolving the internal carrier differences. This

leaves less time for agencies to devote to production.

FURTHER CARRIER SUPPORT WANTED: Just as the

ACORD and IDR surveys showed, PIA agencies’ use of tech-

nology is expanding. Only 20+% of agencies listed that they

allowed agency flash drives and/or use of 3rd-party networked

LAN systems. From our cyber-education efforts, PIA knows

these are two areas of increased security concerns for agen-

cies. However, an average of 70+% checked that their agency

actively engages Agency-issued: E-doc retention; WI-FI; lap-

tops; smartphones; website; social media pages; and remote

desktop connections. Agencies allowing employees to use

their own personal e-devices over which to conduct agency

business is still high (52.4%), but that is down from the high

70s% when asked this question in 2013.

Further, more than 48+% feel that they do not have enough

access to expert/guidance that can assist them with the increasing

Electronicdocumentretention

system

Agency Wi-Fi

(wireless internet

connection)

Third-partymobile

network to access agency

documents or network

(cellular service)

Agencylaptops

Agency smart-

phones

Agency flash

drives

Agency website

Agency socialmediapages

Remotedesktop

connection

79%77%

29%

59%

54%

21%

85%

60%64%

TECHNOLOGY USAGE IS UP. Agencies/broker-firms are clearly focused on their own growth—and carriers that will help them achieve it.

WHAT TECHNOLOGY DEVICES DOES YOUR AGENCY USE/ALLOW?


challenges and learning curve of new and changing technology.

This was also reflected in the ACORD and IDR reports, showing a

potentially fruitful area in which carriers may wish to invest.

AGENCIES’ FUTURE PLANS

As indicated earlier in the report, the majority of agencies

reported they increased their agency volume in the last 3-5

years and intend to continue this pattern. More than 91+%

made clear that they would do so through securing new growth

through their agency: retaining current customers and securing

additional policy count within each policyholder portfolio. This is

another reason why agencies highly valued clear communications

between carriers and agencies. The better agencies know the

more precise and efficient they can be in placing the correct busi-

ness with the right fit in a carrier, it supports agency production.

A significant majority (65+%) of agencies stated that they

had not purchased another agency’s book of business over

the last 10 years. This may be more a function of the economy

since 2008. Also, since agencies were equally split between

and among values 3-5 regarding their interest in purchasing

another’s book of business, the past inactivity in this area may

not be applicable going forward. In other words, agencies will

begin to move out and increase their agency operations in all

ways: increased retention, internal policy count growth; new

customer growth and agency book acquisitions.

This again provides an opportunity for positive carrier assis-

tance, an area which PIA along with its national partner carriers

are exploring. As agencies have already pointed out, carriers

need to rethink how to support and assist agencies.

This becomes more important when we look at what the

“retirement” plans of these agency owners are. Only 15.2% of

the agency owners advised that they would be retiring within

the next 5-years, with 31.9% pegging this in the next 5-9 years

and 40.8% electing in 10-year or more. Again, if we go back to

the owners’ age brackets and the issue that most people (own-

ers or employees) want to work longer and are doing so, these

retirement schedules seem to make sense.

Further, 65+% of these agency-owners advise that their

retirement plan will be handled internally by the agency. No

doubt this is another reason why agency owners are so com-

mitted to continuing to increase agency volume. Internal acqui-

sitions on the one hand can be easier to control and bring a

higher level of valuation assurance to all parties because they

create stability in the agency operations. On the other hand,

the necessary financial outlay can leave the agency highly

leveraged, a concern of continuing owner-principals. Agencies

that can do business with carriers that cause less friction and

better support results will be winners.

SUMMARY

PIA has been active in using member and organizational

surveys for many decades to better “see and understand” the

why and what is happening in our members’ agencies and

markets. That, in turn, allows PIA to productively and more

successfully support what they need to continue their success.

A critical part of that is always assessing the current status of

agency-carrier relations and what can improve them.

Over the last 10+ years, agency-carrier relations have been

assessed by agencies at their highest levels for the longest

period of time as compared to those from 1973 through 1994.

As shown by this data and viewing it with our collective orga-

nizational experience, good and productive relationships hap-

pen when carriers and agencies can be in sync and properly

aligned in the marketplace with each other—so that together

they can meet the insurance customer’s needs, and write good

business, competitively and profitably.

Patricia A. Borowski is Senior Vice President of Industry Affairs for the National Association of Professional Insurance Agents (PIA).

ACENCIES’ FUTURE PLANS

Don’t know

In 10 or more years

41%

12%

In the next 5–9 years

32%

Less than 5 years

15%

WHEN ARE YOU PLANNING TO RETIRE?


PIA NATIONAL NAMES KIMBERLEY HARWOOD 2017 PROFESSIONAL AGENT OF THE YEAR

KIMBERLEY W. HARWOOD, CISR, has been named the 2017 Profes-sional Agent of the Year by the National Association of Professional Insurance Agents (PIA). Harwood is vice president of Harwood & Son Insurance of Farmville, Virginia.

“This award is PIA’s highest honor,” said PIA National Gary Blackwell, in presenting the award. “It recognizes the achievements of one Professional Insurance Agent who is an outstanding member of PIA.”

The PIA National Professional Agent of the Year award is the association’s highest national award of distinction. It is presented annually to one outstand-ing professional insurance agent who is a member of PIA. Nominations for this

award are made by PIA state and regional affiliate associations.

“A consummate professional, a believer in agent education, an active member of her community, a doer of charitable works, a successful Main Street insurance agent in service to her clients, and a proud member of PIA—Kimberley Harwood personi-fies what a PIA agent is and should be,” Blackwell said.

Harwood has been a member of PIA of Virginia & DC since 1998. She was President of the affiliate in 2014-2015, served on almost all of PIA’s committees and won many awards, including CSR of the Year in 2001, Young Professional of the Year in 2002. In 2016, she was named the PIA of Virginia & DC Agent of the Year.

During the year she was president of PIA of Virginia & DC, she served as interim association executive for six months while also doing her job at Harwood & Son Insurance. Active in her community, Harwood went to Honduras in 2007 as part of a medical mission trip with the Farmville United Methodist Church. In 2012, she and her husband went to Israel as part of another mission team.

The PIA National Professional Agent of the Year award was presented during a gala luncheon ceremony on April 7, 2017, in Arlington, Virginia, held during the national PIA meetings, which followed the 2017 PIA Federal Legislative Summit (FLS).

THE 2017 PIA NATIONAL AWARDS –

(Left to Right): J. Vincent Mullins, Scott Harwood, Kevin Kowar, Christine Brown, 2017 PIA National Agent of the Year Kim Harwood, Jeff Brown, Gerald Hemphill, Ken Daveler, Jordan Reynolds, Cole Tucker.


TAKING PRIDE IN HONORING OUR BEST

CRYSTAL ROSE CATHCART IS PIA NATIONAL’S 2017 YOUNG INSURANCE PROFESSIONAL OF THE YEAR

SHAWN RADKE NAMED PIA NATIONAL 2017 CUSTOMER SERVICE REPRESENTATIVE OF THE YEAR

CRYSTAL ROSE CATHCART, Regional Relationship Director with MarketStance of Middletown, Connecticut, has been named the 2017 PIA National Young Insurance Professional of the Year. The award was presented April 7, 2017, by the National Association of Professional Insurance Agents (PIA) and was sponsored by The Rough Notes Company.

The PIA National Young Insurance Professional of the Year award recognizes outstanding achievement by a young insurance professional. Sponsored for the 12th year in a row by The Rough Notes Company, it was presented during a gala luncheon ceremony on April 7, 2017, in Arlington, Virginia, held during national

PIA meetings which followed the 2017 PIA Federal Legislative Summit.

“Crystal’s unique role at MarketStance draws on her many years of working as a personal and commercial lines agent,” said PIA National Vice President/Treasurer Keith Savino, who presented the award. “She works directly with senior execu-tives at P&C carriers, MGAs and Agency Aggregators, helping them work with their agency partners on strategic growth initia-tives in commercial and personal lines.”

Cathcart is also an active mem-ber, treasurer and board member of the Connecticut Young Insurance Professionals. “Encouraging young people to consider a career as a professional

insurance agent must be a top priority for all of us,” Savino said. “We are particularly pleased to partner with the Rough Notes Company in this important effort.”

SHAWN RADKE OF THE KOHLNHOFER AGENCY in Lakeville, Minnesota was named the 2017 PIA National Customer Service Representative (CSR) of the Year. The award was presented April 7, 2017 at a ceremony in Arlington, Virginia, by the National Association of Professional Insurance Agents (PIA) and was spon-sored by The Hartford.

The PIA National CSR of the Year award is given annually to an outstanding 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 opera-tions 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.

“This year’s PIA National CSR of the Year is a consummate pro-fessional with a can-do attitude,” said PIA National President-elect Tim Russell. “Shawn Radke is a talented individual who is diligent, dependable, caring, hardworking, intelligent, and a team player. He exemplifies what a professional CSR is.”

“We value the critical role that customer service plays in agency success and are honored to sponsor this prestigious award for the tenth consecutive year,” said Melinda Thompson, head of sales & dis-tribution for The Hartford. “The Hartford congratulates Shawn Radke

on his achievement and commitment to helping customers in ways that go beyond the policy.”

(Left to Right): Maryellen May (The Hartford), 2017 CSR of the Year Shawn Radke, CIC, Beth Kohlnhofer Raskovich (President of the Kohlnhofer Agency and Affiliate President of PIA of MN), and Greg Sather (Affiliate Executive of PIA MN).

2017 YIP winner Crystal Rose Cathcart.


ACCORDING TO FINDINGS FROM A 2016 survey performed by the Insurance Information Institute, 43% of homeowners think that their standard homeowners insurance covers flood damage from heavy rain and 28% think that storm surge is covered. Don’t let your clients be caught unaware.

LOW PURCHASING RATES OF FLOOD INSURANCE The 2016 flooding in Louisiana, as well as floods in the Midwest

and elsewhere in the South, provided a stark reminder of the damage that can be wreaked by excessive rain.

Flood damage is not isolated to high-risk flood zones or areas prone to hurricanes. More than 20 percent of claims paid under National Flood Insurance Program (NFIP) policies each year go to homeowners living in low- to moderate-risk flood zones.

In addition to causing dozens of deaths, 2016 floods caused bil-lions of dollars in property damage. Unfortunately, many of these losses were uninsured because most homeowners do not purchase supplemental flood insurance. The percentage of homeowners who do purchase flood insurance has hovered between 10 percent and 14 percent since 2010.

With its history of hurricane and river flooding, the South has the highest regional rate of flood insurance take-up. Fourteen percent of homeowners in the South purchase supplemental flood coverage. The Midwest—which saw flooding in 2016 in Wisconsin, Missouri, Minnesota, Kansas and other states—has the lowest rate, at 8 percent.

A standard homeowners policy does not cover damage caused by flooding from heavy rain or a hurricane-driven storm surge. Despite public education efforts, a significant portion of homeown-ers mistakenly think that flood damage is covered by their standard homeowners insurance, without the need for supplemental insurance. Flood insurance is available through the federal government’s NFIP, however—as a separate policy.

INCORRECT—AND POTENTIALLY COSTLY—ASSUMPTIONS ABOUT COVERAGE

For many types of perils, homeowners may be pleasantly surprised to find that their insurance policy offers coverage when they didn’t expect it. Unfortunately, the I.I.I. Consumer Insurance Survey shows that the reverse is true as well: Consumers often think that certain events are covered when they’re not.

FLOOD DAMAGE IS NOT COVERED When it comes to water damage caused by weather-driven,

ground-level flooding, a basic homeowners policy does NOT provide coverage. For example, there is no coverage if:

• A hurricane storm surge damages your property;• Heavy rains flood your basement;• An overflowing river or creek damages your home; or• Tsunami-driven water destroys your home.

For coverage of these types of incidents, homeowners must purchase separate flood insur-ance policy—available from the NFIP and a few private insur-ers. A significant portion of homeowners, however, believe that their standard homeown-ers policy will cover flood damage.

Confusion about flood coverage may arise from the fact that some types of water and storm-related damage are covered by a standard home-owners policy. For example, most homeowners insurance

ARE YOUR CLIENTS AWARE THAT FLOOD IS NOT COVERED ON THEIR HOMEOWNERS POLICY?

Homeowners With Flood Insurance

2010 2011 2012 2013 2014 2015 2016

10% 14% 13% 13% 13% 14% 12%

Fig. 5

Insurance Information Institutewww.iii.org

5

Supplemental Natural Disaster InsuranceLow Purchasing Rates of Flood Insurance

The 2016 flooding in Louisiana, as well as floods in

the Midwest and elsewhere in the South, provided a

stark reminder of the damage that can be wreaked

by excessive rain.

Flood damage is not isolated to high-risk flood zones

or areas prone to hurricanes. More than 20 percent of

claims paid under National Flood Insurance Program

(NFIP) policies each year go to homeowners living in

low- to moderate-risk flood zones.

In addition to causing dozens of deaths, 2016 floods

caused billions of dollars in property damage.

Unfortunately, many of these losses were uninsured

because most homeowners do not purchase

supplemental flood insurance. The percentage of

homeowners who do purchase flood insurance has

hovered between 10 percent and 14 percent since

2010 (Fig. 5).

With its history of hurricane and river flooding, the

South has the highest regional rate of flood insurance

take-up. Fourteen percent of homeowners in the

South purchase supplemental flood coverage. The

Midwest—which saw flooding in 2016 in Wisconsin,

Missouri, Minnesota, Kansas and other states—has the

lowest rate, at 8 percent.

A standard homeowners policy does not cover

damage caused by flooding from heavy rain or a

hurricane-driven storm surge. Despite public edu-

cation efforts, a significant portion of homeowners

mistakenly think that flood damage is covered by their

standard homeowners insurance, without the need for

supplemental insurance. Flood insurance is available

through the federal government’s NFIP, however—as

a separate policy.

Homeowners With Flood Insurance by Region (2016)

Midwest Northeast South West

8% 13% 14% 10%


6

Misperceptions About Flood Coverage

Homeowners Lack Coverage for

Earthquake Damage

Property damage caused by earthquakes is also not

covered by a standard homeowners policy, though

fire damage following an earthquake will usually

be covered. Although earthquakes have caused

damage in all 50 states, only 8 percent of American

homeowners purchase separate earthquake

insurance or add an earthquake endorsement to their

homeowners policy.

Misperceptions About Earthquake Coverage

Historically, the most destructive U.S. earthquakes

Historically, the most destructive U.S. earthquakes

have occurred in the West, primarily in California.

Homeowners in the West purchase earthquake

coverage far more frequently than residents of

other regions (Fig. 6).

In recent years, there has been increased seismic

activity in the Midwest and South. Measurable

earthquakes have occurred in Kansas, Oklahoma and

Texas, as well as in Alaska, Arizona, Idaho, Nevada

and California. In 2016, the largest earthquake in the

U.S. took place in Alaska. On September 3, 2016,

Oklahoma experienced its largest earthquake ever,

at magnitude 5.8. The quake caused one injury and

buildings in the town of Pawnee were damaged.

The U.S. Geological Survey reports that increased

seismic activity in Oklahoma is caused by under-

ground wastewater disposal associated with oil and

natural gas production. Other states with energy pro-

duction and underground wastewater disposal may

also be prone to greater seismic activity, suggesting

that consumers may increasingly be at risk of damage

from earthquakes.

Midwest Northeast South West

7% 6% 6% 14%

Fig. 6

Homeowners With Earthquake Insurance by Region (2016)

29% Homeowners who incorrectly think that standard homeowners insurance covers earthquake damage

Standard homeowners insurance does NOT cover earthquake damage.

43% Homeowners who think that standard homeowners insurance covers damage caused by flooding from heavy rain

28% Homeowners who think hurricane storm surge flood damage is covered

Most flood damage is NOT covered by standard homeowners insurance.


includes coverage for damage caused by wind-driven rain, burst pipes and water leaking into your house because of a roofline ice dam.

When it comes to water damage caused by weather-driven, ground-level flooding, a basic homeowners policy does NOT provide coverage.

MOST DON’T SHOPMost policyholders do not comparison shop for home-

owners insurance when it’s time to renew their policy.Only 44 percent of homeowners compare prices of dif-

ferent insurers at renewal time. For homeowners who do

shop for insurance, the most popular method is to talk with an insur-ance agent in person: 29 percent of homeowners said they met with their agent to compare prices from different insurance companies.

SHOPPING FOR INSURANCE: HOMEOWNERS VS. AUTO

While homeowners understand the basics of their coverage, the I.I.I. Consumer Insurance Survey makes it clear that there is still a great deal of misunderstanding about what typical policies cover and don’t cover.

NEED A NEW FLOOD CARRIER?PIA members who want to earn great flood insurance commissions

while working with a top-flight Write-Your-Own flood insurance company should consider the PIA/Hartford flood insurance pro-gram. To learn more visit www.pianet.com/hartfordfloodinsurance or contact Joseph M. Surowiecki, Jr. of The Hartford at 860-547-5006 or [email protected].

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Address, P.O. Box 17828, Portland, ME 04112-8828. Insurance Program Administered by Lockton Risk Services.



9

Incorrect—and Potentially Costly—Assumptions About CoverageFor many types of perils, homeowners may be

pleasantly surprised to find that their insurance

policy offers coverage when they didn’t expect it.

Unfortunately, the I.I.I. Consumer Insurance Survey

shows that the reverse is true as well: Consumers

often think that certain events are covered when

they’re not.

Flood Damage Is NOT Covered

When it comes to water damage caused by weather-

driven, ground-level flooding, a basic homeowners

policy does NOT provide coverage. For example,

there is no coverage if:

• A hurricane storm surge damages your property;

• Heavy rains flood your basement;

• An overflowing river or creek damages your

home; or

• Tsunami-driven water destroys your home.

For coverage of these types of incidents, home-

owners must purchase a separate flood insurance

policy—available from the NFIP and a few private

insurers. A significant portion of homeowners,

however, believe that their standard homeowners

policy will cover flood damage (Fig. 10).

Fig. 10

Misunderstanding of Flood Coverage

Confusion about flood coverage may arise from

the fact that some types of water and storm-related

damage are covered by a standard homeowners

policy. For example, most homeowners insurance

includes coverage for damage caused by wind-driven

rain, burst pipes and water leaking into your house

because of a roofline ice dam.

Heavy rain flooding

43%

Tsunami storm surge

18%

Hurricane storm surge

28%

%Percentage of homeowners who incorrectly believe these perils are covered under their standard policy


13

III. Conclusion: Shopping for Homeowners Insurance in a Changing WorldThe I.I.I. Consumer Insurance Survey shows that most

policyholders do not comparison shop for home-

owners insurance when it’s time to renew their policy.

Only 44 percent of homeowners compare prices of

different insurers at renewal time.

As a point of contrast, in November 2015, 69 percent

of consumers said they comparison shopped for auto

insurance when their policy comes up for renewal.

This higher rate of comparison shopping may in

part reflect the fact that a greater percentage of

people view auto insurance as a financial burden,

as compared to homeowners insurance (49 percent

vs 31 percent).

Ways Homeowners Shop for InsuranceFor homeowners who do shop for insurance, the

most popular method is to talk with an insurance

agent in person: 29 percent of homeowners said

they met with their agent to compare prices from

different insurance companies.

Surprisingly, fewer than one out of five policy-

holders compares homeowners insurance prices

online (Fig. 14).

44% Homeowners insurance

policyholders

69% Auto

insurance policyholders

Percentage of policyholderswho comparison shop when their insurance is up for renewal

%

Comparison Shopping for Homeowners Insurance

17%Online

24% By

Phone

53%Don’t Shop

29%In

Person

Fig. 14

Shopping for Insurance: Homeowners vs. Auto



9







they’re not.









home; or








Fig. 10









Heavy rain flooding

43%

Tsunami storm surge

18%


28%




9







they’re not.









home; or








Fig. 10









Heavy rain flooding

43%

Tsunami storm surge

18%


28%



13

III. Conclusion: Shopping for Homeowners Insurance in a Changing WorldThe I.I.I. Consumer Insurance Survey shows that most

policyholders do not comparison shop for home-

owners insurance when it’s time to renew their policy.

Only 44 percent of homeowners compare prices of

different insurers at renewal time.

As a point of contrast, in November 2015, 69 percent

of consumers said they comparison shopped for auto

insurance when their policy comes up for renewal.

This higher rate of comparison shopping may in

part reflect the fact that a greater percentage of

people view auto insurance as a financial burden,

as compared to homeowners insurance (49 percent

vs 31 percent).

Ways Homeowners Shop for InsuranceFor homeowners who do shop for insurance, the

most popular method is to talk with an insurance

agent in person: 29 percent of homeowners said

they met with their agent to compare prices from

different insurance companies.

Surprisingly, fewer than one out of five policy-

holders compares homeowners insurance prices

online (Fig. 14).

44% Homeowners insurance

policyholders

69% Auto

insurance policyholders

Percentage of policyholderswho comparison shop when their insurance is up for renewal

%

Comparison Shopping for Homeowners Insurance

17%Online

24% By

Phone

53%Don’t Shop

29%In

Person

Fig. 14

Shopping for Insurance: Homeowners vs. Auto

Graphics by


EXPLOIT YOUR BUILT-IN COMPETITIVE ADVANTAGES WITH DIGITAL—THE RIGHT WAY

PIA AGENTS ENJOY A BUILT-in advantage over their direct writer and online competitors—the ability to create a local and personalized brand that’s separate and distinct from their carriers. This advantage, however, can be exploited only if the agent builds and maintains a strong digital presence. That means an up-to-date, one-of-a-kind, interactive and intuitive website, effective social media outreach and mobile connections to at least some of their services.

Every agent I know believes in their ability to deliver quality service

face-to-face. Happily, most people, includ-ing millennials, want to do business with people they can get to know and trust. To reach those prospects first, however, requires the right digital presence—to make it as easy as possible for clients to do business with you and for prospects to find you and then decide whether or not they want to.

Many agency principals tell me they appreciate the need to add or upgrade their digital tools but hesitate because of the perceived costs. Unfortunately, this hesitation costs agencies real money in

the form of lost business—from clients who bolt to more digitally-savvy competi-tors (it’s happening more and more) and prospects who won’t give them a second look. The solution is not to throw money at the problem but to take specific steps to create a realistic, cost-effective plan and then follow-through with it.

First, the agency website must be more than a static, institutional brochure. It must reflect the agency’s personality, stand out from competitors (give prospects a reason to choose you over the agency across town), and be easy to use. To put it another

AGENCY MARKETING$ By Tom Wetzel


way, a website is not to be read, it is to be used.

The agency’s social media activity must be original, (cookie-cutter content doesn’t cut it), relevant, consistent and conversa-tional—and targeted to reach the agency’s preferred markets. The number one ques-tion I am asked in my agent presentations around the country is “what social media sites should I be using? “ My answer is always the same: What sites do your clients and prospects use?

The agency also needs its own branded mobile app. Using a carrier’s app just con-ditions clients to bypass the agency. Finally, each of these three tools should function as one and project the same brand charac-teristics and messaging that’s distinct and unique to the agency.

Like it or not, we live in a “I want it now” society. None of us want to wait in line at the grocery store, we don’t want to be put on hold and we want prompt answers to our questions. There’s no ques-tion that complex insurance products can’t be sold in the same way as a loaf of bread. By the same token, however, that fact does not let agents off the hook when it comes to “going digital.” If banks, doctors and hospitals and financial counselors make the most of digital tools, why would agents believe they are somehow exempt from this trend?

“Going digital” the right way does not automatically mean breaking the bank. If your website is more than two years-old, it may be time to redo it. If you’re not using social media now, start. If you’re not happy with the results of the program you have now, make the necessary changes. You can evaluate your current situation by answer-ing the following questions and in some cases, making some small changes that cost little or nothing. Good luck!

FOR YOUR WEBSITEIs your website mobile-optimized (able

to be read easily on a smartphone)? Does it take more than two clicks for someone to find what they’re looking for on your web-site? And what information can they find?

On your website, where is the contact information located?

How often do you change content, including photos, on the website?

Do you maintain a blog? Is the author identified? Are topics indexed?

How does your website compare with those of your competitors? Do they all look the same? If a prospect did not know you, what would make them look at your website first and not a competitor’s?

SOCIAL MEDIADo you promote social media sites

on your website that you don’t use or dabble in less than once a week? Do you include your social media pages in email signatures?

Do you maintain a social media com-mittee to review postings periodically and discuss content?

If you use social media, how did you select which sites to use?

How do you decide what to post? Is social media content written by one person in the office with few contributions from the rest of the staff?

How often do you post content on social media? Every day? Once a week?

Are social media posts tailored to your agency or could they just as well apply to any of your competitors?

GENERAL AND MOBILEAre you measuring activity on your

website and social media? Do you know who is looking at them, when, and what they’re looking at? How often do you review the metrics?

How do you provide access to your services via the smartphone? Agency or carrier app? What services does it provide?

Do your digital tools all project the same distinctive personality and brand?

Tom Wetzel is CEO of Thomas H. Wetzel

& Associates, an insurance marketing firm for independent agents whose signature services include the Social Media Content Roadmap© and website design. An insur-ance communicator for over 30 years, he has conducted presentations and work-shops to thousands of insurance profession-als across the country, served as the social media columnist for Rough Notes and now writes an agents column, “Tech Talk” for Insurance Journal. He can be reached at [email protected], writes a blog called “The Good Risk” at www.wetzelandasssociates.com and can be found on Facebook at “Social Media Management for Insurance,” Twitter and LinkedIn.

LIKE THIS ARTICLE? WANT MORE LIKE IT?If so, then you should read all of the marketing tips in past and present issues of the annual PIA Agency Marketing Guide. Read them all at www.PIAAgencyMarketingGuide.com.

PIA wishes to thank the sponsors of the most recent issue of the PIA Agency Marketing Guide: EZLynx, ITC, Rough Notes and Smart Choice.

PIA’s Agency Marketing Guide is published as part of the PIA Branding Program, PIA’s agency marketing program (www.piabrandingprogram.com). Funding for the PIA Branding Program is provided in part by PIA’s Pinnacle Partners: Bankers Insurance Group, Encompass Insurance, Erie Insurance, Nationwide Independent, State Auto Insurance Companies, The Motorists Insurance Group, and Wright Flood.

Brought to you by these sponsors:

Special Report: PIA Members Find

New Markets and Referrals

PIAAgency Marketing Guide

A product of the PIA Branding Programwww.piabrandingprogram.com

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State Auto Insurance Companies

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2017 PIA NATIONAL PINNACLE PARTNERS


ALABAMAPIA Southern Alliance, 3805 Crestwood Pkwy NW #140, Duluth, GA 30096PHONE: (770) 921-7585 | FAX: (770) 921-7590e-mail: [email protected] | Web Site: piasouth.com

ARKANSASPIA of Arkansas Inc. 10801 Executive Center Drive, Suite 207, Little Rock, AR 72211PHONE: (501) 225-1645 | FAX: (501) 225-2550e-mail: [email protected] | Web Site: www.piaar.com

CA/NV/AZ/NMPIA Western Alliance, 3205 Northeast 78th St #104, Vancouver, WA 98665PHONE: (888) 246-4466 | FAX: (360) 571-7600e-mail: [email protected] | Web Site: www.piawest.com

COLORADOPHONE: (703) 836-9340 | FAX: (703) 836-1279e-mail: [email protected] | Web Site: www.pianet.com

CONNECTICUTPIA of Connecticut, P.O. Box 997, Glenmont, NY 12077-0997PHONE: (800) 424-4244 | FAX: (518) 434-2342e-mail: [email protected] | Web Site: www.pia.org

DELAWAREPHONE: (703) 836-9340 | FAX: (703) 836-1279e-mail: [email protected] | Web Site: www.pianet.com

FLORIDAPIA of Florida, Inc., 1390 Timberlane Road, Tallahassee, FL 32312-1766PHONE: (850) 893-8245 | (800) 277-1171 FL only | FAX: (850) 893-8316e-mail: [email protected] | Web Site: www.piafl.org

GEORGIAPIA Southern Alliance, 3805 Crestwood Pkwy NW #140, Duluth, GA 30096PHONE: (770) 921-7585 | FAX: (770) 921-7590e-mail: [email protected] | Web Site: piasouth.com

HAWAIIPIA of Hawaii, 1247 Kelewina St. Kailua, HI 96734PHONE: (808) 261-9460 | FAX: (808) 262-5355e-mail: [email protected] | Web Site: www.piahawaii.com

ILLINOISPHONE: (703) 836-9340 | FAX: (703) 836-1279e-mail: [email protected] | Web Site: www.pianet.com

INDIANAPIA of Indiana, 50 E. 91 Street Ste. 207 Indianapolis, IN 46240PHONE: (317) 899-9200 | FAX: (317) 493-0408e-mail: [email protected] | Web Site: www.piaindiana.com

KANSASKansas Association of Professional Insurance Agents216 SW 7th Ave, Topeka, KS 66603PHONE: (785) 232-4143 | FAX: (785) 232-0272e-mail: [email protected] | Web Site: www.kansaspia.org

KENTUCKYPIA of Kentucky, P.O. Box 4205, Frankfort, KY 40604-4205PHONE: (502) 875-3888 | FAX: (502) 227-0839e-mail: [email protected] | Web Site: www.piaky.org

LOUISIANAPIA of Louisiana Inc. 4021 W. E. Heck Ct., Building K, Baton Rouge, LA 70816PHONE: (225) 766-7770 | (800) 349-3434 LA only | FAX: (225) 766-1601e-mail: [email protected] | Web Site: www.piaoflouisiana.com

MAINEMaine Insurance Agents Association 17 Carriage Lane, Hallowell, ME 04347PHONE: (207) 623-1875 | FAX: (207) 626-0275e-mail: [email protected] | Web Site: www.meiaa.com

MARYLANDInsurance Agents & Brokers of Maryland 5050 Ritter Rd, Mechanicsburg, PA 17055-0763PHONE: (717) 795-9100 | FAX: (717) 795-8347e-mail: [email protected] | Web Site: www.iabforme.com

MASSACHUSETTSPHONE: (703) 836-9340 | FAX: (703) 836-1279e-mail: [email protected] | Web Site: www.pianet.com

MICHIGANMichigan PIA, P.O. Box 99579 Troy, Michigan, 48099PHONE: (616) 454-4461 | FAX: (616) 454-4491e-mail: [email protected] | Web Site: www.mipia.com

MINNESOTAPIA of Minnesota, 8646 Eagle Creek Circle, Suite 202, Savage, MN 55378PHONE: (866) 694-7070 | FAX: (866) 749-8678e-mail: [email protected] | Web Site: www.piamn.com

MISSISSIPPIPIA Southern Alliance, 3805 Crestwood Pkwy. NW, Ste. 140, Duluth, GA 30096PHONE: (770) 921-7585 | FAX: (770) 921-7590e-mail: [email protected] | Web Site: piasouth.com

MISSOURIMissouri Association of Insurance AgentsP.O. Box 1785, Jefferson City, MO 65102-1785PHONE: 573-893-4301 | FAX: 573-893-3708e-mail: [email protected] | Web Site: www.missouriagent.org

MONTANAPIA Western Alliance, 3205 NE 78th St Ste 104, Vancouver, WA 98665-0697PHONE: (888) 246-4466 | FAX: (360) 571-7600e-mail: [email protected] | Web Site: www.piawest.com

NEBRASKA/IOWAPIA of Nebraska/Iowa, 920 South 107th Avenue, Suite 305, Omaha, NE 68114PHONE: (402) 392-1611 | FAX: (402) 392-2228e-mail: [email protected] | Web Site: www.pianeia.com

NEW HAMPSHIREPIA of New Hampshire, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 | FAX: (518) 434-2342e-mail: [email protected] | Web Site: www.pia.org

NEW JERSEYPIA New Jersey, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 | FAX: (518) 434-2342e-mail: [email protected] | Web Site: www.pia.org

NEW YORKPIA New York, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 | FAX: (518) 434-2342e-mail: [email protected] | Web Site: www.pia.org

NORTH CAROLINAPIANC, PO Box 1387 Davidson, NC 28036PHONE: (704) 534-2338e-mail: [email protected] | Web Site: www.pianc.net

NORTH DAKOTAPIA of North Dakota1211 Memorial Hwy Holiday Park Office #6, Bismarck, ND 58504-5213PHONE: (701) 223-5025 | (800) 733-1050 ND&MN onlyFAX: (701) 223-9456 | e-mail: [email protected] Site: www.piand.com

OHIOOhio Insurance Agents Association, Inc., 600 Cross Pointe Road, Gahanna, OH 43230PHONE: (614) 552-8000 | (800) 555-1742 | FAX: (614) 552-0115e-mail: [email protected] | Web Site: www.ohioinsuranceagents.com

OKLAHOMAPHONE: 703-836-9340 | FAX: 703-836-1279e-mail: [email protected] | Web Site: www.pianet.org

OREGON/IDAHOPIA Western Alliance 3205 Northeast 78th Street, #104, Vancouver, WA 98665PHONE: (503) 287-7570 | FAX: (360) 571-7600e-mail: [email protected] | Web Site: www.piawest.com

PENNSYLVANIAPHONE: (703) 836-9340 | FAX: (703) 836-1279e-mail: [email protected] | Web Site: www.pianet.com

PUERTO RICO & CARIBBEANPIA of Puerto Rico and the Caribbean IncKOI Building, Urb. Muñoz Rivera, Acuarela Street, 3A, Office G – 10,Guaynabo, PR 00969PHONE: (787) 792-7849 | FAX: (787) 792-4745e-mail: [email protected] | Web Site: www.piaofpr.org

RHODE ISLANDPHONE: (703) 836-9340 | FAX: (703) 836-1279e-mail: [email protected] | Web Site: www.pianet.com

SOUTH CAROLINAPIA of South Carolina, PO Box 21367, Columbia, SC 29221-1367PHONE: (803) 772-0557 | (888) 742-6372 | FAX: (803) 772-0846e-mail: [email protected] | Web Site: www.piasc.net

SOUTH DAKOTAPHONE: (703) 836-9340 | FAX: (703) 836-1279e-mail: [email protected] | Web Site: www.pianet.com

TENNESSEEPIA of Tennessee Inc 504 Autumn Springs Court Suite A-2, Franklin, TN 37067PHONE: (615) 771-1177 | FAX: (615) 771-3456e-mail: [email protected] | Web Site: www.piatn.com

TEXASPIA of Texas PO Box 700877, Dallas, TX 75370PHONE: (972) 862-3333 | FAX: (972) 307-7888e-mail: [email protected] | Web Site: www.piatx.org

UTAHUtah Association of Independent Insurance Agents4885 S. 900 E., Suite 302, Salt Lake City, UT 84117PHONE: (801) 269-1200 | FAX: (801) 269-1265e-mail: [email protected] | Web Site: www.uaiia.org

VERMONTPIA of VermontP.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 | FAX: (518) 434-2342e-mail: [email protected] | Web Site: www.pia.org

VIRGINIA/DCPIA Assn of Virginia & DC 8751 Park Central Dr., Ste 140, Richmond, VA 23227PHONE: (804) 264-2582 | FAX: (804) 266-1075e-mail: [email protected] | Web Site: www.piavadc.com

WASHINGTON/ALASKAPIA Western Alliance 3205 Northeast 78th Street, #104, Vancouver, WA 98665PHONE: (360) 571-7100 | FAX: (360) 571-7600e-mail: [email protected] | Web Site: www.piawest.com

WEST VIRGINIAPHONE: (703) 836-9340 | FAX: (703) 836-1279e-mail: [email protected] | Web Site: www.pianet.com

WISCONSINPIA of Wisconsin, Inc., 6401 Odana Road, Madison, WI 53719-1126PHONE: (608) 274-8188 | (800) 261-7429 | FAX: (608) 274-8195e-mail: [email protected] | Web Site: www.piaw.org

WYOMINGAssoc. of Wyoming Ins. Agents, 197 Pine Haven Road, Pine Haven, WY 82721PHONE: (307) 201-4801 | FAX: (775) 796-3122e-mail: [email protected] | Web Site: www.awia.com

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Phone: 800-844-0536 www.sportsfitness.com

PIA CONNECTION MARKETPLACE

IN THE PAST 5 YEARS, ALL 50 states have experienced floods or flash floods. Yet many homeowners do not real-ize that the typical homeowners insurance policy does not cover flooding. The same goes for businesses and their property policies. And even if they realize that these policies do not cover flooding, they may not know that flood insurance is available as a stand-alone policy.

PIA has an exclusive partnership with Floodbroker.com, a unique service that helps agents increase flood insurance sales in their agency while potentially reducing errors and omissions exposure when it comes to offering a flood policy. The result is increased revenue for participating agen-cies and a higher PIF count across their books of business, leading to improved retention.

HOW DOES IT WORK?Floodbroker has automated the process

of finding flood insurance rates through the National Flood Insurance Program (NFIP). Here’s how it works:

1. PIA members signing up with Floodbroker receive their very own agency-branded, flood insur-ance microsite with the NFIP rating technology baked in.

2. They then direct clients and pro-spective insureds to their microsite where they can determine their flood zone and see the NFIP rates available to them.

3. The resulting “quote” is emailed to their agent who completes the sale offline using their agency’s regular flood insurance carrier.

SAVE STAFF TIME WHILE INCREASING SALES

Floodbroker clients maximize staff time and sales by delivering qualified leads straight to their inbox from inter-ested clients and prospective clients who filled out the online form on the agency’s Floodbroker microsite.

LEARN MORE ABOUT FLOODBROKER

To learn how you can get your own agency-branded Floodbroker microsite—with your logo and con-tact information—please contact Evan Spindelman at 855-442-4130 or [email protected].

For more information and a video about this PIA member-only program or to attend a free informational webi-nar, please visit PIA National’s website at www.pianet.com/floodbroker.

ROUND YOUR BOOK. IMPROVE RETENTION. INCREASE REVENUE.

PIA PRODUCT SPOTLIGHT

PIA BRANDING PROGRAM

marketing materials for PIA members

www.piabrandingprogram.com

YOUR AD HERE.When PIA members are looking for solu-

tions to their problems, make sure you’re in the right place at the right time. Make sure you’re in the PIA Connection Marketplace!

AGENCY E&OContact your local PIA E&O

producer today!

WWW.PIANET.COM/EANDO


BUSINESS-BUILDING TOOLS

✦ PIA BRANDING PROGRAM. Print ads, radio commercials, consumer-oriented flyers and social media support for PIA members. www.piabrandingprogram.com

✦ HARTFORD FLOOD INSURANCE. PIA’s endorsed flood provider since 2004. Dedicated local sales directors and book transfer/rollover team plus great commissions for PIA members. Call (860) 547-5006.

✦ FLOODBROKER.COM. Sell more flood insurance with a flood quoting Web portal. A PIA member exclusive!

✦ PIA AGENCY MARKETING GUIDE. Hands-on marketing tips from industry experts. Published annually.

✦ ROUGH NOTES PRODUCER ONLINE. Identifies risk exposures. Provides detailed coverage analysis. PIA member price $500 annually (reg. $1,695). Call 800-428-4384. Use your PIA member ID# above name on mailing label.

✦ DOCIT FOR AGENTS. Align applicants with the right carrier early in the auto quoting process with DocIT for Agents’ online database of driver violation data.

✦ AGENCY REVENUE TOOLS. Boost personal lines sales by engaging in employee worksite marketing using your appointed markets at regular commission rates.

✦ AGENCY WEBSITES. Cutting-edge websites tailored specifically to insurance agents.

✦ PIA LOGO. Put the PIA logo on your business card, website, stationery and signage. Order items with the PIA logo in our online store.

✦ CONSUMER BROCHURES. Answer your customers’ questions with PIA’s attractive brochures.

INSURANCE PRODUCTS

✦ E&O INSURANCE. With access to admitted and non-admitted markets with differing appetites chances are we can find the coverage and price that’s right for you. www.pianet.com/eando

✦ PIA AGENTS UMBRELLA PROGRAM. Excess insurance protection includes E&O and business liability coverage, with available endorsements for EPL and personal coverage.

✦ CYBER AND PRIVACY INSURANCE. PIA and U.S. Risk Brokers have introduced a robust program exclusively for PIA members.

✦ INDIVIDUAL AND GROUP INSURANCE PRODUCTS. Basic, voluntary and dependent term life; long/short term disability; AD&D; business overhead expense; and hospital income protection. www.piatrust.com

TOOLS FROM THE PIA PARTNERSHIP, PIA’S COMPANY COUNCIL

✦ SMALL BUSINESS INSURANCE & THE INTERNET—THE VOICE OF THE CL CUSTOMER: Stay ahead of online competition in commercial lines.

✦ CLOSING THE GAP—GROWTH & PROFIT. Plan for growth and profitability. Includes tools for improving retention, sales and account-rounding.

✦ AGENCY TOUCH POINTS—THE VOICE OF THE CUSTOMER. Give personal lines customers what they really want.

✦ REACHING GEN Y. Convert Gen Y age group insurance consumers into loyal agency customers.

✦ PERPETUATION CENTRAL. Guidance through the many phases of your agency’s lifecycle.

✦ PRACTICAL GUIDE TO SUCCESSFUL PLANNING. Plan for success within your own agency.

AGENCY MANAGEMENT TOOLS

✦ AGENCY AGREEMENT REVIEW SERVICE. Free to members and carriers, PIA recommends changes to carriers and highlights concerns for members.

✦ AGENCY PREPAREDNESS AND RECOVERY PLAN. The PIA guide to creating an agency-specific business contingency plan.

✦ EMPLOYEE PROFILING. Hire the right people with skills and personality testing from OMNIA.

✦ PRESCRIPTION DISCOUNTS. Save money on prescriptions not covered by insurance. Available to PIA members and their clients.

✦ Discounts on producer licensing, car rentals, shipping with UPS and calendars from Mines Press.

✦ Free subscriptions to industry publications.

LEGISLATIVE & REGULATORY OUTREACH

✦ GRASSROOTS ALERTS. Send pre-written, fully-editable letters directly to your elected officials. www.piagrassroots.com

✦ PIA FEDERAL LEGISLATIVE SUMMIT. Every spring, PIA members visit Capitol Hill to meet with their elected representatives. www.piafls.com

✦ DISTRICT LOBBYING DAY…CAPITOL HILL IN YOUR BACKYARD. Every August, PIA members meet with Members of Congress in their district offices. www.piadld.com

✦ PIA POLITICAL ACTION COMMITTEE (PIAPAC). PIAPAC contributes to the campaigns of candidates to federal office who share our pro-insurance, pro-business perspective and who support our issues. www.piapac.com

YOUR MEMBER BENEFITS FROM PIA NATIONAL

Learn more about these PIA National member benefits at www.pianet.com.


Congratulations, Shawn Radke, on your recognition for outstanding customer service. As a proud sponsor of this award, The Hartford supports great CSRs in every way we can.

Shawn Radke of the Kohlnhofer Agency, is the recipient of the 2017 PIA National Customer Service Representative (CSR) of the Year Award.

thehartford.com

Prepare. Protect. Prevail. With The Hartford.® The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries. 17-0505 © May 2017 The Hartford

Business Insurance Employee Benefits Auto Home

CONGRATULATIONS ON PROVIDING EXCEPTIONAL CUSTOMER SERVICE. WE STRIVE TO DO THE SAME.

Left to Right: Maryellen May (The Hartford), Shawn Radke, CIC (CSR winner), Beth Kohlnhofer Raskovich (President of the Kohlnhofer Agency and Affiliate President of PIA of Minnesota).

Expect big things in workers’ compensation. Expect to save a third of your clients 30% or more. Most classes approved, nationwide.

For information call (877) 234-4450 or visit auw.com/us. Follow us at bigdoghq.com.

©2017 Applied Underwriters, Inc., a Berkshire Hathaway company. Our insurance carriers are rated A+ (Superior) by A.M. Best. Insurance plans protected U.S. Patent No. 7,908,157.

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