PIA TN Magazine Summer Edition

Summer 2015 • Tennessee edition

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ALTERNATIVE CAPITAL AND THE REINSURANCE MARKET A look at an evolving market as hurricane season starts

THE CHANGING MARKET 09

What’s up with ride hailing?

21

The E&S market

25

A look at niches And more …

Now In More States MidSouth Mutual provides regional Workers’ Compensation insurance to customers in 7 states including Tennessee, Kentucky, Arkansas, Mississippi, Alabama, Georgia and North Carolina.

Examples of clients we serve include: HVAC Contractors

Bricklayers

Carpenters

Masonry

Building Suppliers

Electricians

Framers

Insulation

Dozing Services

Plumbers

Dry Wallers

Cabinetry

Road Contractors

Painters

Landscapers

Flooring

Thank You to all the independent agencies representing MidSouth Mutual. We look forward to a great 2015 working with you.

States we serve:

www.midsouthmutual.com Contact Tom Perez at tom.perez@bwood.com or 615-379-8245 Administered by Brentwood Services Administrators, Inc. Proudly serving the members of the Home Builders Association of Tennessee since 1995.

Departments 04 In brief Summer 2015 • Tennessee edition

09 Legal 12 Case law 25 Learn 30 Readers’ service and advertising index 31

Officers and directors directory

Cover story 16 Alternative capital and the reinsurance market A look at an evolving market as hurricane season starts

Feature 21 The two-way beauty contest Relations between agents, wholesalers can be a win-win in the E&S market

Statements of fact and opinion in PIA magazine are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the Professional Insurance Agents. Participation in PIA events, activities, and/or publications is available on a nondiscriminatory basis and does not reflect PIA endorsement of the products and/or services.

President and CEO of PIA Management Services Inc. Mark LaLonde, CPIA, CIC, AAI; Executive Director Kelly K. Norris, CAE; Communication Director Mary E. Christiano; Senior Magazine Designer Sue Jacobsen; Member Information Manager Jaye Czupryna.

Postmaster: Send address changes to: Professional Insurance Agents of Tennessee, 504 Autum Springs Court, Suite A-2, Franklin, TN 37067.

“Professional Insurance Agents” is published quarterly by PIA Management Services Inc. PIA Management Services, 25 Chamberlain St., P.O. Box 997, Glenmont, NY 12077-0997; (518) 434-3111 or toll-free (800) 424-4244; email pia@pia.org. ©2015 Professional Insurance Agents. All rights reserved. No material within this publication may be reproduced—in whole or in part—without the express written consent of the publisher.

Cover design Patty Dykeman Summer 2015

In brief

association news

2015 Convention and Trade Show PIA of Tennessee presents its 80th Convention and Trade Show, July 27-29, 2015, at the Omni Hotel in Nashville.

There will be a golf tournament, trade show, silent auction and much more.

This year we have made registration easier than ever.

Visit www.piatnconvention.com and you will be taken directly to the registration page. Hotel and member sign

up is open until Friday, June 26, 2015. With hotel rates of $212 in the heart of downtown Nashville, this is an opportunity you will not want to miss. We hope to see you there!

Schedule Monday, July 27 8:00 a.m.

Golf Tournament

10 a.m.-noon

Education Business Development

Noon-1 p.m.

Lunch

3:30 p.m.

Registration opens

1:30-3:30 p.m. Trade Show open

5-6:30 p.m.

Platinum Partner Reception

7 p.m.

7 p.m.

TINSPAC Dinner

Tuesday, July 28—Agency Staff Day (Tuesday is Agency Staff Day at the PIA Convention and Trade Show, so be sure to sign up your customer service representatives and producers to attend the entire day, which is filled with great benefits for everyone in the agency.)

Wednesday, July 29 8-9 a.m.

Breakfast (TBA) 10 a.m.11:30 p.m.

8:30-9:30 a.m. Breakfast and PIA Annual Business Meeting 10 a.m.

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Dinner with Awards Presentation

Trade Show move in

Professional Insurance Agents magazine

Trade Show open—Exhibitor and Grand Door Prizes

Five minutes with …

By the numBers

2015insurance Insurance 2015 industry Industryoutlook Outlook

Insights from Insights From Towers Watson’s Towers Watson’s Global GlobalInsurer InsurerSurvey Survey

Regulatory change and interest rates are primary environmental concerns for nearly three-quarters of respondents in a global Towers Watson survey.

More than half (53%) are also concerned about economic developments over the next one to three years.

Technology challenges and talent needs are the two top-ranked resource concerns among both life and P&C companies.

Nearly half (47%) of survey respondents identify changing customer demographics or distribution as a top threat or opportunity.

0011011 1010100 1010110 0011011 1010100

(30%) cite big data, while 25% worry about competitive threats including

Nearly one-third

the rise of the big Internet-based companies.

But social media list at just 9%.

falls near the bottom of the

More life insurers see opportunity/threats in regulations and changing customer demographics, while the pace of innovation is of greater concern among P&C insurers.

Over the next three years, 77% of respondents expect

market conditions to remain flat or worsen somewhat. Life and

multiline executives tend to be more optimistic than their P&C industry counterparts.

Sample responses: What keeps you up at night?

Not changing fast enough to be relevant to future generations (Global) Are our key performance indicators leading us to make incorrect decisions? (EMEA) Increasing competition from alternative capital (North America) The pace of regulatory change and our ability to respond to it (Asia Pacific)

About the Study This survey of Emphasis readers, completed in November 2014, reflects the opinions of 365 respondents from around the world. Survey participants were almost equally divided between the life and P&C industries.

Why did you pick your niche?

My niche is comprised of hard-to-place business in Eddie Holt the trucking producer Keisling Insurance industry.

I Byrdstown, Tenn. work within this niche because of my experience with the market and the concentration of the industry in my region.

How do you build a niche?

To successfully build a niche market you need to be knowledge about your niche’s specific needs and work with program managers to build an insurance product for those needs.

You need to market directly to those in the niche and get involved in relevant associations to help build a stronger market.

How has having a niche helped your business?

Having a niche has increased my percentage of renewals and referrals to write new business. It also allows my agency focus on the products we sell.

Any advice for others looking to develop a niche?

My advice is: Find a market that is not targeted heavily and do your research on it. Also, look for markets with special needs that no other agency has developed a niche. Stay in the marketplace and help build products that service your niche.

Anything else to share with our readers?

Niche markets are a great way to be a leader in your marketplace and to increase your professionalism in the insurance industry.

© Towers Watson 2015. Used with permission. www.piaTN.com Emphasis 2015/1 | i

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news to use

PIA of TN aids in the passing of a new UM law A new law has passed in Tennessee that will make the enforcement of driving without insurance much more efficient. It is estimated that one in five drivers are on the road without the proper insurance, which puts Tennessee at sixth in the nation for highest levels of uninsured motorists, according to the bill. These statistics fueled the insurance agencies in Tennessee to look toward the legislation for ways to resolve the problem. The Professional Insurance Agents of TN voiced its support for the passing of the bill during its annual Day on the Hill.

Fast facts: 6th —Rank of Tennessee among the states in terms of highest uninsured motorists.

20.1% —Percent of drivers in Tennessee who are uninsured.

1,105,500 —Estimated number of uninsured motorists in Tennessee.

663,000 —Number of estimated individuals Starting July 1, a new verification system will require proof who will obtain the correct amount of insurance of insurance before renewal of registration is possible. resulting from this bill.

Republican Representative William Lamberth has stated that, “We want it to be cheaper to just stay within the boundaries of the law and follow the rules of the road than it is to violate the law.” This law—the James Lee Atwood Jr. Law—will almost triple fines for driving without insurance and gives police officers the option to tow the vehicles of motorist who are driving without insurance.

For more information on this law, visit www.capitol.tn.gov/Bills/109/Bill/HB0606.pdf.

Education

CPIA on the road Certified Professional Insurance Agent courses are now coming to a city near you.

In addition to Nashville, these classes will now be offered in Knoxville, Chattanooga and Memphis.

The dates are as follows: Knoxville on June 10 and Oct. 14; Chattanooga on July 8 and Nov. 12; Nashville on July 27; and Memphis on Sept. 9.

The classes will take place at a local Pinnacle bank in each area. Go to piatn.com to sign up.

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Professional Insurance Agents magazine

Acquisition Strategy

#15

MARKETING SUPPORT

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What the hail?

Ride hailing. The practice of ride hailing has evolved from its inception as a glorified form of carpooling into a transportation service that generates millions of dollars a year in revenue for Transportation Network Companies. For the uninitiated, ride hailing is the sharing of private motor vehicle transportation with another person or persons. Drivers receive a fee for their services and passengers get an inexpensive ride to their destination.

Currently, those who participate in ride hailing use a TNC digital application, or “app,” to match drivers with passengers. TNC drivers log on to the TNC app and indicate their willingness to accept passengers. To hail a TNC vehicle, passengers log on to the TNC app and are matched with nearby drivers.

Right angles The angles of ride hailing are as numerous as the taxis in New York City. However, as I have learned in my time at PIA, insurance affects everything. Ride hailing is no different. The issue of insurance coverage has generated the most conversation and the most court cases with regard to ride hailing. The main question is: When is a TNC

legal

bradford j. lachut, esq.

PIA Management Services’ government affairs counsel

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www.piaTN.com

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driver’s personal auto policy primary and when is the coverage provided by the TNC primary?

Typically, a person’s PAP contains a livery exclusion. This exclusion states that when an individual uses his or her personal auto as a livery vehicle—such as acting as a TNC driver—the PAP will not cover liability, medical payments, uninsured/underinsured motorist or physical damage for any accident that occurs while the vehicle is being used as a livery.

The largest TNCs have responded to the livery exclusion in PAP by providing liability, uninsured/underinsured motorist and comprehensive/collision coverages for a fee to TNC drivers while they transport passengers. However, this

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The PIA/Penn National Insurance agents’ umbrella offers: ■ Excess limits on a followingform basis for E&O ■ Business operations: Auto, Liability ■ Optional personal umbrella coverage ■ Optional EPL

For details, contact your local PIA affiliate or PIA National at 800.742.6900 x 382 or visit the PIA Main Street Store at www.PIANET.com

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does not solve the issue because policies provided by TNC typically are excess to the PAP and only will respond once a driver’s PAP has excluded coverage. This creates ambiguity, ambiguity creates court cases, and court cases create nice legal fees for other members of my profession.

So, when does the TNC policy become primary? To answer that question we need a better understanding of the ride-hailing process.

Like hockey, ride hailing can be experienced in three periods: Period 1: When a driver logs on to the TNC application, but is not yet matched with a passenger.

Period 2: When a match is made and accepted, but the passenger has not entered the vehicle.

Period 3: When the passenger has been picked up and is occupying the vehicle.

Understanding, that prior to Period 1, a person is not engaged in a livery service so his or her PAP would respond to any accident. On the flipside, TNCs have conceded that any coverage they provide is primary to a TNC driver’s PAP during Period 3 of the ride-hailing experience (i.e. when a passenger is in the TNC vehicle).

So, the question becomes which coverage, the PAP or the TNC policy, is primary during Periods 1 and 2?

Private parts The private market has attempted to answer this question in two entirely different ways. First, the Insurance Services Office Inc., has modified its PAP to amend its livery exclusion to exclude personal auto coverage whenever an insured is logged into the TNC application as a driver.

This means that the TNC coverage would be primary from Period 1 through Period 3.

On the other side of the bitcoin, ISO has developed—and several carriers have started offering—TNC drivers new endorsements they can add to their PAP that expressly provide coverage (for an additional charge), for TNC activities while a car is without passengers. This means a driver’s PAP would be primary during Period 1 and Period 2. TNC coverage only would be primary in Period 3.

The buck stops here

In every instance in which insurance maintained by a driver to fulfill the insurance requirements has lapsed; failed to provide the required coverage; denied a claim for the required coverage; or otherwise ceased to exist, insurance maintained by a TNC must provide the coverage required by this bill beginning with the first dollar of the claim.

The insurance requirements of the bill, as well as the fact that the driver’s PAP may not provide coverage, must be disclosed (in writing) to TNC drivers before they are allowed to accept a request for TNC services.

By the way, I would like to thank my fellow Government Affairs Counsel, Campbell Wallace, Esq., who suggested the title of this article.

Stability. Longevity.

Integrity

State legislatures around the country also have stepped up to spell out when PAP coverage ends and TNC coverage begins.

Tennessee When drivers log on to TNC digital networks and indicate they are available to receive request for transportation, but they have not yet agreed to pick up a passenger, liability insurance must meet at least the minimum coverage requirements set out in Tennessee’s Financial Responsibility Law. Liability insurance must be maintained by a TNC and provide coverage in the event a participating TNC driver’s own automobile liability policy excludes coverage or does not provide coverage of at least the limits required.

When a driver has agreed to provide services, the liability insurance requirements include primary automobile liability insurance that recognizes the TNC driver’s provision of TNC services; and automobile liability insurance of at least $1 million for death, personal bodily injury and property damage.

The coverage requirements may be satisfied by automobile liability insurance maintained by the driver; automobile liability insurance maintained by the TNC; any combination of the two.

1-800-971-2667 • www.summitholdings.com Coverage available in Alabama, Arkansas, Georgia, Florida, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas.

www.piaTN.com

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case law

robert m. sullivan, esq.

Senior partner of Sullivan & Klein, LLP

Read and sign Our review of the law in preparation for this column brought to our attention a case decided by the Supreme Court of Tennessee. As is the circumstance with most of our factual cases, this one has something for everyone and the principles espoused in the case serve to illustrate similar legal principles in the other states of our readership (New York, New Jersey, Connecticut and New Hampshire).

As telegraphed by our title, our discussion focuses upon the burdensome, but necessary task of obtaining a complete, accurate and signed application from an insured.

The signed application is an insurance producer’s best friend. If it is completed accurately and it is read and signed by the insured, then there will not be a problem. However, as we will see from our discussion of the case by the Supreme Court of Tennessee, the application process can be a nightmare for the professional, independent insurance agent or broker.

The trusting applicant Our featured case involves the procurement of life insurance policies for a married couple.1 Under the facts of the case, the husband had a $300,000 term life insurance policy. During the period of the policy, he was convicted of driving while intoxicated. In addition to the DWI conviction, the husband was known to use tobacco products and particularly was known to be a cigar smoker.

Eventually, the insured and his wife became members of a country club and developed a friendship with two life insurance agents/certified financial planners. Over time, the insured and his wife expressed concern over the amount of life insurance that he held and wanted to obtain life insurance for the wife as well. The two agents recommended a replacement term-life policy with a $1 million limit for the husband, and a $250,000 policy for the wife who had no insurance.

At a meeting, the agents asked the insureds questions to obtained quotes based upon the information provided. After the initial meeting, one of the agents prepared the applications based upon the information provided at the meeting. The only follow-up from the meeting was a telephone call to the wife in which she was asked for her driver’s license number and her son’s Social Security number. She was never asked about her own use of tobacco products and there was never any further communication with the husband.

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Subsequently, the agents mailed several documents to the insureds for their signature. There was no cover letter with instructions for the insureds and the applications just had “sticky notes” (presumably Post-Its) indicating where the document should be signed. According to testimony adduced at trial, neither the husband nor wife read the applications before signing. According to the testimony of the wife at trial, “… it was obvious that [agent] had done everything for us and all we needed to do was sign …” The policy was placed and, on the advice of the agents, a prior $300,000 policy held by the husband was allowed to lapse.

Unfortunately, the husband was involved in an automobile accident, which took his life. The accident occurred before the expiration of the contestable period of the policy. The insurer denied coverage because the husband’s application posed a question as to whether the husband— in the prior five years—was ever accused or convicted of a moving violation while driving a car. The application also asked whether the husband ever used tobacco products or had any other life insurance to which the answer on the application was “no” and “not applicable,” respectively.

The trial evidence established that the husband was asked about his DWI conviction during a physical

examination for the policy and he responded truthfully. It also was established that the agents had seen the husband smoking cigars and, since they advised him to replace his prior life policy, knew that he had other life insurance.

In finding for the wife in her suit against the agents, the court held that although the husband and wife did not read the application, the wife, as beneficiary, should still recover. On this fact pattern, the insurance agents, while not required to, did undertake a duty to complete the applications and accurately record the clients’ underwriting information. According to the court, the insureds had a right to trust the agents and rely upon them to complete the applications accurately.

However, important to the court’s determination was the clear evidence that the insureds were never asked the questions on the application, and had they been asked, they would have provided truthful answers as evidenced by the disclosure of the DWI by the husband during the physical examination. Also important to the court’s determination was the absence of any cover letter or directions from the agents when the applications were sent for signatures as to the importance of reviewing the applications. Essentially, having undertaken the obligation to prepare the applications properly and knowing that the insureds were relying upon them to do so, they could be held responsible for any error that resulted in coverage being voided.

In a subsequent case decided by a federal court sitting in Tennessee, the court distinguished the case emphasizing the important of establishing that the insured had in fact been asked the questions on the application.2

Analysis So, does this mean that having an insured sign the application is a pointless exercise that will result in liability on the part of an agent or broker wherever the insured claims they didn’t understand or sign the application? Are the courts just easy when it comes to life insurance claims? The answer is no on both counts.

The law in Tennessee is quite clear that when an insured signs an application for insurance, he or she is bound by the representations contained within the application.

A mere denial that the application was read or that the insured did not understand the questions will not excuse the insured from the consequences of errant information contained therein, including voiding the policy of insurance.3

trial to allow who would be charged with the errors in the application.

Again, it appears that the courts, in order to relieve an insured of the consequences of a signed application, must find evidence of reliance by the insured upon the agent or broker coupled with clear evidence that the insured, in fact, never saw the relevant questions on the application.

Suggested losscontrol strategies The application process can be somewhat burdensome in terms of the paper and work created and the time consumed. However, errors in the process and the subsequent finger pointing between the insured and the agent are a significant source of errors-and-omissions claims (and

However, when other facts are established, such as reliance upon the agent to complete the application accurately coupled with objective evidence that the insured, in fact, did not see the questions or the complete application, the courts will hold that there is an issue of fact regarding whether the insured should be bound by the contents of the application.

In one New York case,4 evidence was adduced that an issuance broker undertook the completion of the application, and it contained inaccurate information concerning the existence of certain cooking equipment on the property. The insured offered evidence that showed he was not sent the entire application, only the signature page. In addition, the agent was unable to provide evidence that, in fact, the entire application was sent. The court held that there existed an issue of fact requiring a

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sometimes payouts) against agents and brokers. Here are a few suggestions for consideration:

ncy

O

Agency

1. Have the insured complete the application is optimal. However, recognizing that having the agent or broker complete the application is necessary for the sake of expediency, ensure that a detailed interview of the insured is undertaken utilizing the application as a guide.

E&O

2. In completing the application, accuracy is essential. Never assume that an inspection by the insurer, or in the case of a life policy, a physical, will satisfy the insurer’s need for accurate underwriting information on the application.

3. Always send the complete application to the insured, not just the signature page or relevant pages. Retain evidence that the complete application was sent. A fax confirmation with number of pages or an email. If delivered in person, even a contemporaneous annotation on a copy or the date of delivery.

4. Undertake to have the entire application returned by the insured to you, not just the signature page. Create a contemporaneous copy and preserve that copy.

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5. Consider having the insured not only sign the application, but initial each page as well. This would take all of 20 seconds in most cases.

6. When forwarding a completed application, send a short cover memo or letter providing instructions to the insured and emphasizing that you and the insurer are relying upon the insured to confirm the accuracy of the information and to advise you of any inaccuracies. This eliminates the element of reliance upon you by the insured and places the burden back upon the insured to guarantee the accuracy of the information provided.

In our view, this transfers the application into what it was meant to be—a vehicle to provide accurate underwriting information to the insurer to underwrite the risk. You want to avoid having it used as a “gotcha” for the agent or broker for the purpose of setting up an E&O claim.

Sullivan is senior partner of Sullivan & Klein, LLP. He can be reached at (212) 695-0910.

1

Morris v. Allen, 338 S.W.3d 417 (2011)

Southern Trust Insurance Co. v. Morgan, _____ F.Supp.3d ____; 2014 WL 4829029 (E.D. Term, 2014)

2

See Tennessee–Smith v. Tennessee Farm Life Reassurance Co., 210 S.W.2d 584 (Tenn. Ct. App., 2006); New York–Bleecker Street Health & Beauty Aids Inc. v. Granite State Ins. Co., 11 Misc.3d 1091(A), 819 N.Y.S.2d 846 aff’ d 38 A.D.3d 231 (Sup. Ct., 2006) 834 N.Y.S.2d 1 (1st Dept., 2007); New Jersey–New Hampshire Ins. Co. v. Diller, 678 F.Supp.2d 288 (D.N.J., 2009); Connecticut–Bristol v. Commerce Union Life Ins. Co. of America, 211 Conn.

622, 560 A.2d 460 (1989) 3

4

See Bleecker Street Health & Beauty Aids Inc., supra.

Professional Insurance Agents magazine

PIA Tennessee 7.5x10 Date.pdf

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JAMES LYNCH Chief actuary and director of information services, I.I.I.

Alternative capital and the reinsurance market A look at an evolving market as hurricane season starts

W

hen New York transit authorities were looking for insurance against storm surges like the ones that devastated the city’s subways during Superstorm Sandy, they found coverage in an unlikely place—the bond market.

The Metropolitan Transit Authority received $200 million in insurance protection by creating a unique bond that it can tap if it suffers significant storm surge losses from a hurricane before Aug. 5, 2016.

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The MTA deal is one of the more prominent examples of the capital markets taking on the role of the traditional insurance and reinsurance markets.

Few insureds have the MTA’s size and sophistication to go directly to capital markets. But, major property and homeowners insurers like Allstate, Chubb, State Farm, Travelers and USAA are increasingly getting some of their reinsurance from such alternative capital arrangements.

As of September 2014, alternative markets had tripled their share of the global reinsurance market in six years, supplying $61.9 billion, or 12 percent of all global reinsurance capital, according to Aon Benfield Analytics.

As Insurance Information Institute President Dr. Robert P. Hartwig and I wrote in Alternative Capital and its Impact on Insurance and Reinsurance Markets, a white paper published earlier this year, the emergence of alternative capital is restructuring the reinsurance market, at least in the short term. Some reinsurers are changing their business models to accommodate the new breed of investors. And, the new ways of doing business are driving a recent wave of reinsurance mergers.

The next Sandy When the next Sandy strikes the Northeast, there is a good chance that one of these alternative structures will be tapped to help insurers cover their claims.

They appear to be safe forms of insurance or reinsurance; the funds needed to cover claims are held in escrow and invested conservatively.

The deals are structured to act like traditional reinsurance, with transactions most professional, independent insurance agents and policyholders will never notice. Still, when a major catastrophe happens, these special reinsurance arrangements are likely to be in the news and agents will need to explain them to clients.

How it works As most industry professionals know, reinsurance is the protection that insurance companies buy. The insuring contract is known as a treaty, rather than a policy, but it acts in a similar way. The insurer is trying to lay off some of the risk it takes in writing a book of business.

One key risk insurers must manage is catastrophes, and they commonly use reinsurance to do so. Consider an East Coast homeowners insurer that purchases a property catastrophe treaty to protect against losses from June 1, 2015, to May 31, 2016. The terms of the contract will stipulate what level of losses will be reimbursed and how much in losses must be paid before the reinsurer begins reimbursement.

Using our example, suppose the treaty would reimburse the next $30 million in losses from a catastrophe after the insurer had paid $20 million. If a hurricane were to strike on Aug. 30, 2015, the insurer would remain responsible for all policyholder losses, but reinsurance would reimburse it for some of those losses.

The insurer would keep track of storm losses. Once the total exceeded $20 million, it would bill the reinsurer for the amount above $20 million.

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If losses totaled $25 million for example, the insurer would pay claimants $25 million, then file its own claim against the reinsurer to recover the amount above $20 million—$5 million.

The insurer would bill the reinsurer regularly until either the insurer paid its last storm claim or losses exceeded the treaty’s limit, $30 million. The practice allows the insurer to write additional business in a region while reducing its risk if a storm hits.

It also stabilizes earnings. Without reinsurance, earnings would be quite variable, with good results in years with no storms and terrible results in years with them. If the company buys reinsurance, the cost will hurt results a bit in the years without a hurricane. However, in years with a storm, results will be better than they would have been otherwise.

The evolution Reinsurance started hundreds of years ago—some industry experts have unearthed a contract dated in the year 1370. The two largest reinsurers, Munich Re and Swiss Re, are more than 100 years old (founded in 1880 and 1863, respectively).

In recent years, hedge funds, pension managers and other investors have moved into the reinsurance business, focusing on catastrophe risks.

Alternative capital makes up half the capital in the catastrophe reinsurance market, Aon Benfield estimates.

Capital markets like catastrophe reinsurance for a couple of reasons. First, results from reinsuring these risks are known with relative certainty and quite quickly. Capital investors are less interested in casualty risks, whose ultimate profitability takes a long time to determine.

Second, profits and losses from catastrophe business are uncorrelated with profits and losses in the financial markets, except by chance.

The lack of correlation reduces the risk in the capital investors’ overall portfolios.

Investors sometimes use unconventional means to enter the market, the best known being catastrophe bonds like the one MTA entered.

Investors strike a deal with an insurance company. They supply collateral that will be tapped in case of a catastrophe. The amount of capital is the maximum that the insurance company can recover, like the limit on an insurance policy.

In exchange for taking on the risk, the bondholders receive regular interest payments from the insurance company, usually a sliver of the premium policyholders pay. The amount of collateral and the size of the interest payment are spelled out in advance, as are the terms of what specific catastrophes the bond protects against.

The catastrophe bond market set a record last year, with $8 billion in new issues, according to brokerage firm Guy Carpenter. At year-end, $22.9 billion in catastrophic bonds were outstanding, 60 percent more than three years earlier.

Another common form of alternative capital is collateralized reinsurance.

It is not as well-known as catastrophe bonds, but it is growing faster, with more than $25 billion in capital last year, nearly 10 times more than four years earlier.

Here investors set up their own reinsurance company. They lock up funds equal to policy limits on every reinsurance deal they write—every deal is collateralized fully, hence the name. In standard reinsurance deals,

the insurer depends on ratings agencies like A.M. Best and state regulators to assess the reinsurer’s claims-paying ability.

Alternative deals are written worldwide, but investors prefer U.S. risks, particularly hurricanes. About two-thirds of catastrophic bonds covered U.S. hurricane risk as of fourth quarter 2014, according to Willis Capital Markets.

U.S. risks are understood better than risks elsewhere. Sophisticated computer models can estimate the probability and size of storms, which investors believe give them a good idea of the probability a reinsurance arrangement could suffer a loss. That information is analogous to the probability of default on a traditional bond.

Traditional reinsurers act Traditional reinsurers are responding to the competition from these alternative markets. Some have partnered with the new investors, either by creating their own catastrophe bonds or forming alliances in which the investors supply capital and the reinsurers supply underwriting and claims-handling savvy.

Other reinsurers are hanging back, saying reinsurance is only a temporary home for the new investor thanks to a paucity of high-yielding investment opportunities elsewhere. They also note investors have come to the reinsurance market during a relatively quiet catastrophe period; it has been almost 10 years since Hurricane Wilma became the last Category 3 hurricane to strike the U.S. mainland.

When hurricane frequency and traditional investment yields return to their respective averages, traditional reinsurers predict, the new investors will return to the markets with which they are familiar.

Online Education

• Pre-Licensing • Training and Education for the New Employee • Continuing Education from CEU.com

www.piatn.com/education Education at your convenience

www.piatn.com/education For more information, call Pam Cass, CPIA, at 800-875-7428

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The effect In the meantime, reinsurance costs are falling as new investors and traditional reinsurers compete. Rates on catastrophe reinsurance fell 11 percent early this year, according to Guy Carpenter.

That has likely translated into lower rates on property and homeowners insurance. Some observers credited lower reinsurance costs, in part, for a decrease taken early this year

by Florida’s largest homeowners insurer, state-run Citizens Property Insurance Corp. The California

Earthquake Authority specifically cited lower reinsurance costs in its proposal to reduce quake rates late last year.

The impact on rates is likely small, as the cost of catastrophe reinsurance is only one expense of many borne by insurers and in many property markets non-catastrophic losses are on the rise.

In the meantime, falling rates and a glut of capital have spurred mergers, as reinsurers seek sufficient size to partner with the new investors. Among this year’s multibillion-dollar deals: Catlin Group has merged with XL Group and Endurance Specialty Holdings has agreed to acquire Montpelier Re Holdings.

And, a proposed merger between PartnerRe and Axis Capital Holdings turned into a bidding war with Exor, an Italian holding company.

AMERISAFE successes in TENNESSEE Workers’ Comp for Working People

Traditionalists note that the reinsurance market always has been volatile.

New companies always are being launched, but many get absorbed by merger. Prices plunge as capital enters and soar when catastrophe strikes. Still, the new capital, regardless of its staying power, has changed reinsurance markets and indirectly affected standard property coverage worldwide.

Lynch is chief actuary and director of information services for the Insurance Information Institute in New York.

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Professional Insurance Agents magazine

jonathan P. brown President and owner of MGA Consulting

The two-way beauty contest Relations between agents, wholesalers can be a win-win in the E&S market This article addresses the situation in which a professional, independent insurance agent needs to approach the excess-and-surplus-lines market on a particular risk (I assume the approach will be through a wholesaler), and the dynamics and expectations that pertain to both sides of this relationship.

it taken care of as quickly as possible. E&S business may only be about 10 percent of the agency’s book (especially in non-catastrophe-prone states), so it’s probably not a huge revenue generator. Rather, it is business that is the proverbial “squeaky wheel” and can take more work to place than the average account.

The E&S market is the safety valve to the admitted market, which provides capacity and expertise in areas where the admitted market’s “box” does not fit. While agents should always be aware of the A.M. Best Co.’s rating and security of an E&S carrier—since it is not regulated directly by their state—in general the rate of failure of E&S carriers in any one year is no better or worse than that of admitted carriers.

As an aside (and contrary to what many agents tell wholesalers), most studies suggest that commission is not a huge factor here, provided it is “reasonable”—it is speed and quality of service that matter. To an extent, the relationship also enters the picture as probably the second most attractive feature. The relationship is usually with the individual underwriter at the wholesaler rather than the company as a whole.

However, to get to this carrier, or indeed to this market, the agent is going to have to deal with a wholesaler. That wholesaler will then have authority from a carrier to quote and bind the business in-house (e.g., a small vacant dwelling) when he or she acts as a managing general agent, or he or she will act purely as a broker and send the risk on to the carrier directly (e.g., a large products liability risk).

So, if prompt service from a responsive, friendly and professional underwriter giving good terms and reasonable commission is what the agents look for, then obviously the reverse is true. An underwriter who does not respond with terms or questions, or does not return calls is unlikely to see much more business. On top of that, irritants can arise from tardy policy or endorsement issuance or accounting issues (though often poor service in one area may mean it’s poor in most areas). These are the “ugly” aspects that will drive business away.

What I want to look at here is the nature of the relationship that comes about when this business is submitted.

I describe it as a two-way beauty contest and will look at what will attract and repel each party in turn.

What each side wants The agent wants a quote, and probably a quick quote, as a declination may have been received late from the admitted markets. So, is quick, effective service the most attractive feature?

In most studies of what agents want from wholesalers, service—specifically speed of quote—always comes top by a long way. Why? Often because this is a rush item; it is an oddball for some reason and the agent needs to get

However, agents also want options, so they may send the risk to more than one wholesaler. Now here is where problems can begin. If agents do this, then they should make sure they know what markets the wholesaler uses because when the market tells wholesalers they are blocked by a submission from the same agent through another wholesaler, then the wholesalers’ keenness to do business with that agent is now adversely affected. Wholesalers are busy too—even in a good year they may only bind 25 percent of what they quote—so spinning their wheels will just annoy them and mean the next quote may not get the same attention.

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Managing relationships If the agency knows its wholesalers, what markets they have and where authority is held, business can be turned around quickly. With this information if an agency can set out to build strong contacts with the wholesalers’ underwriters; then it will receive better service and the agency’s business will be taken care of more quickly. This does require some strategic and tactical planning and a new wholesaler that solicits business should be able to show clear superiority to existing markets to get a chance. Often agents jump from wholesaler to wholesaler, depending on which one was last to come visit.

Agents, especially in this market, often seem to send business (including renewals) everywhere, desperate to avoid being outbid, only to find that they have no solid relationship to fall back on when they need a favor or something done quickly. This tactic leads the wholesaler to regard the agent as unreliable and fickle—and agents know how they feel about clients who exhibit this behavior.

If the agency knows its wholesalers, what markets they have and where authority is held, business can be turned around quickly. With this information if an agency can set out to build strong contacts with the wholesalers’ underwriters; then it will receive better service and the agency’s business will be taken care of more quickly.

Furthermore, with the lack of a good relationship base, the agent may feel all wholesalers are the same and in granting no respect, the agent receives none in return. If an agent wants to stand out from his or her peers, the agent needs to decide with whom to do business and develop and nurture that relationship, which then will be more productive in the medium term.

From the wholesaler’s perspective, how does an agent become attractive? Firstly, the agent needs to get the submission right. A fully completed (current) application with any needed supplemental applications and a brief narrative will get attention. These are not “in-the-box” risks and will need more information than the standard ACORD application will provide. If an agent doesn’t have the supplemental application, the wholesaler’s website should have it, or it can emailed quickly.

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Professional Insurance Agents magazine

The rise of online quoting shifted attention from “normal” applications, but they still are needed and the agent’s risk will be placed on the top of the pile if all the information is included, such as: the supplemental application; a loss run; and a target price. This action will separate an agent from 85 percent of the agents out there who provide partially completed (or illegibly handwritten) applications that do not include a supplemental application or loss runs and a terse “quote please” on a fax or email. The underwriter wants to quote the business, but knows if he or she has to ask questions about the risk, then there’s a good chance the questions won’t be answered.

The competition?

The agent should consider this: When a risk is submitted to a wholesaler and another agent also is working the same risk, the competition at least initially is not with that agent, but with every other agent who has sent a risk to the underwriter that day.

The first impression—the way the risk initially is presented will determine how it will proceed. A good submission where the underwriter now knows competitive terms can be offered, will get attention and be the first out of the door. The poor, scruffy submission goes to the bottom of the pile for after lunch when the underwriter can get round to listing out all the things still needed, knowing full well that when information has to be painfully extracted, those risks typically do not bind. If agents habitually submit in this fashion, they should not be surprised if eventually their risks are simply ignored.

Beware the easy quote

The beauty contest

Some MGAs and wholesalers do quote on horribly incomplete information. Of course, this is a shortterm practice. At a risk level, the inspection will identify the problem and possibly lead to cancellation of the policy, which will cause the agent to go back to square one.

Or there will be numerous recommendations and requirements that will tie up the agent’s time and use up commission dollars.

At a market level, the MGA or wholesaler eventually will lose its authority once the procedures are audited and the agent will have to remarket the risk. A word of caution: If it seems too good to be true about how little information the MGA or wholesaler needs to quote the risk, then it likely is too good to be true and is unlikely to last.

The agent wants a good wholesaler— a knight in shining armor who will rush the agent a quote at the last minute—saving his or her face with a customer. The agent also wants a wholesaler that will issue the binder and policy promptly and handle endorsements and inspections efficiently. This is the agent’s dream relationship, but he or she needs to look in the mirror. Is the agent worth it?

The wholesaler wants an attractive agent, one who supplies the correct information in a timely manner and who binds business that does not cancel. The best wholesalers keep detailed records, including submissions, binds, cancellations, premium volume, types of business and rank agents accordingly. But, if the agent supplies this information and binding business and still cannot

get same-day turnaround, returned phone calls or emails, prompt policy or endorsement issuance, then the agent has an ugly wholesaler and it’s time to look elsewhere.

Given that good relationships should bring increased prosperity to both parties, fewer disputes and fewer errors-and-omissions situations, it is worth it for the agent to put his or her most attractive side forward in the hope of meeting a retailer (or wholesaler) that has a similar disposition.

Brown is a former Lloyd’s underwriter and Lloyd’s broker who has held senior underwriting positions in two national managing general agents prior to launching MGA Consulting to work within the MGA community in a variety of ways. More information can be found at www.mgaconsultingllc. com. He can be reached at jpbrown@ mgaconsultingllc.com.

EXPLORE THE BENEFITS OF THE CERTIFIED PROFESSIONAL INSURANCE AGENT DESIGNATION Earn E&O credit while earning Tenn. credit.

Plot your course below.

The CPIA program is an excellent way to earn your state‑mandated CE credits; participants need not pursue the designation to receive CE credit. The CPIA designation is approved by Utica Mutual for E&O loss prevention credit. This credit is applied once the designation is achieved. To earn the designation, developed by the American Insurance Marketing and Sales Society, candidates are required to complete all three, one‑day Insurance Success Seminars (in any order.) Participants leave with fresh ideas that will produce results.

CPIA 1: POSITION FOR SUCCESS 6/10/2015 Knoxville, TN CPIA 2: IMPLEMENT FOR SUCCESS 7/8/2015 Chattanooga, TN CPIA 3: SUSTAIN SUCCESS 7/27/2015 Nashville, TN *The CPIA designation is approved by Utica Mutual for E&O loss prevention credit. This credit is applied once the designation is achieved. Please call PIA for details.

TIMES

Sign-in: 8:45 a.m.; Class 9 a.m-5 p.m.

REGISTRATION FEES $135/$155 for members; $175/$195 for non‑members, per session.

Registration fee includes refreshments, instruction & materials.

CE CREDIT GUIDE CPIA 1: POSITION FOR SUCCESS 7 hours CE CPIA 2: IMPLEMENT FOR SUCCESS 7 hours CE CPIA 3: SUSTAIN SUCCESS 8 hours CE

To register, call PIA at (800) 875-7428 or log on to www.piatn.com/index.php/Education-and-Events/cpia.html

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110297 3/14

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Earn Your CE Credits Without the Expense of Travel and No Test Required!

Webinar Success Formula Live Instruction + Internet Connection =

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How It Works: Step 1: – Register.

Step 2: – At date/time of Webinar, click link provided in email invitation.

Step 3: – Enjoy the presentation.

Verify attendance when prompted.

Why It’s Great: Earn CE without the expense of travel.

Earn CE without having to take a test.

Earn CE while participating in a live (not pre-recorded) presentation.

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How to use the ‘essential lure’ to hook clients How do you stand out from the crowd in a super-saturated market? It takes expertise and ingenuity. What does that mean? It means transitioning from being a generalist to a specialist, where you laser focus your energy in a specific niche market.

To the average consumer, your products and services look identical. Customers are hard-pressed to tell the difference between one insurance agent and the next. And, if there’s no obvious difference, any agent will do. Add to that problem the fact that most people don’t understand insurance.

They know they need it. They understand the need for protection and peace of mind, but the attention focuses on the product and price, rather than the professional, independent insurance agent who creates the relationship.

Be an expert When you own a niche and position yourself as an expert, you can blow your competition away easily.

But, what exactly is a niche? The word niche originates from French and it literally means “a small corner.” In marketing terms it means taking a market, dividing it into smaller pieces and then focusing your marketing strategies on one, two or a maximum of three of those pieces.

Most insurance agents are taught to chase down every lead, in every direction, without any focus, Nichepreneur™ agents—my term for someone who specializes in a niche market—benefit from less direct competition. The more narrowly one defines a market segment, the fewer agents there are to devote energy to pursue it.

Let’s take a look at an example that focuses on auto insurance, which many readers probably sell. If you want to niche yourself. These might include coverage for motorbikes, recreational vehicles, classic cars, rental cars, personal injury, etc.

Naturally, these are just a small number of the many different components that you could cover under the auto insurance banner. The question to ask yourself is, “Could I be an expert in any one of these areas or even a subsection of these areas?” An extreme example could be: “an expert in collision insurance for teenagers in New York state.”

Positioning yourself as “The Expert Agent,” in any given field allows you to enjoy enhanced profitability and greater visibility in the public eye. This

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increased visibility is critical for increased referral business, especially client-driven word of mouth referrals—the absolute best form of advertising possible.

learn

susan friedmann, csp TheNichePreneur coach

The essential lure Experts educate. By definition, an expert is someone with industry insight and knowledge to share. One of the best ways for an expert agent to make the most of his or her expertise is to offer seminars and other educational programming to lure your prospects.

People want to learn from the industry leaders with inside knowledge. Offering educational sessions can make the difference between losing clients and gaining them.

You can gain high returns from a modest investment of money, time and energy.

Whether you choose to give in-person presentations, webinars or teleseminars, education is a powerful tool for attracting new clients and maintaining solid relationships with existing ones.

High return, low investment Agents often ask, “Why spend time educating clients when I can be making sales?” Teaching your clients

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is one of the most powerful tools for sales. Investing your valuable sales time in education pays off, even if you don’t sell or upgrade a single policy during the seminar itself. Here are six reasons to help bring you a high return: 1. Educated clients buy more wisely and they are more dependable When persuaded by a good sales pitch, an uninformed client may buy a policy, but when renewal time comes around, there’s a high probability the client won’t remember why insurance seemed so important. The client may decide that the coverage is an extravagance. On the other hand, an informed client will buy intelligently, renew on time and increase coverage as needed.

2. Educated clients see the value of staying well insured With so many competing demands for money and attention, even the most intelligent client can lose track of the importance of insurance. It’s a sad fact that people postpone doing even important things if there’s no easy way to do them. When you offer a program of readily accessible educational seminars, you give your clients information of real worth, while keeping their attention on the value of staying well insured.

3. Stay abreast of client information Seminars offer a way to keep up with your clients’ lives even when they’re not buying. You can learn about the new baby, the planned business expansion and all the other events that can affect a client’s insurance needs. They may well bring up these changes in the questions they ask, or you might learn about them from a casual conversation before or after the session.

4. Attract new potential clients Advertising your seminars will attract new potential clients. By giving them free or low-cost samples of your expertise, you establish yourself as an expert in their eyes. You build your reputation, gain prestige and respect, and then, when these clients are ready to buy, chances are they’ll turn to you. Plus, seminar registration data offers a list of solid leads for follow up.

5. Share information with multiple clients Seminars offer a low-cost way to share information with more than one client at once. Instead of repeating the same conversation a dozen times with a dozen different clients, you can present the information just once to all of them. You can even schedule two or three sessions using the same materials you already have developed.

6. Education builds trust By giving potential clients the information they need, without pressure to buy anything, you establish yourself as a reliable source of wisdom and advice.

Offering seminars makes you more than an agent. It transforms you into an expert.

People are anxious to make the right decisions and turn to experts for help and advice. When they need to buy insurance, they will think of you not as

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Professional Insurance Agents magazine

an agent trying to get their business, but as an expert who recommends what’s best for them: someone they can trust.

Although educational programs demand some development time, your preparation and presentation time continue to pay off after the program. You can provide the recorded session as an .mp3 download, CD, DVD, a podcast, or present it as a streaming video from your website. These products also make valuable promotional gifts or can be sold to clients.

By offering educational opportunities to your existing and potential clients, you are not only providing a useful service but, more importantly, establishing yourself as the trustworthy expert.

Friedmann is an international bestselling author of Riches in Niches: How to Make it BIG in a Small Market and recognized expert working with service professionals to increase their niche marketing potential. For a free copy of 10 Questions to Help Find Your Niche email susan@ richesinniches.com.

Can’t afford to order MVRs when quoting automobile insurance policies?

Reduce Your Agency’s MVR Expenses and Improve Your Customer Experience

Real-time, comprehensive driver’s

With DocIT for Agents You Can:

violation reports are now available

Help an applicant’s recollection of traffic violations

for as little as 75¢ per transaction.

DocIT for Agents contains traffic and criminal traffic violation information on drivers sourced directly from court records (not the MVR). Exclusively to PIA members.

Discover violations for additional drivers in household Generate more accurate quotes and align applicant to the right carrier the 1st time Reduce occurrence of rate changes on subsequent quotes Have a more positive customer experience Enable customers not interested in price to selfselect out earlier in the process Significantly reduce your MVR expenses

Learn More About Drivers History’s DocIT for Agents To learn more about DocIT for Agents PIA members can contact Erin Reilly at Drivers History at 856.673.1286 or pia@drivershistory.com. Additional information including the dates and times of upcoming PIA member webinars can also be found on PIA National’s website at www.pianet.com/DocITforAgents.

1 year subscription required with a $50/

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CYBER‐LIABILITY 1.0

The basics of a typical cyber‐liability policy include two types of coverage.

A quick snapshot of what is included in each policy is clearly defined below.

Typical Loss Coverage Components

Typical Liability Coverage Components

Will cover costs the insured incurs to...

Will cover claim expenses and damages the insured is legally obligated to pay as a result of the following:

Breach Response/Crisis Management ‐

respond to a network or privacy breach. Includes: Breach notification, PR, forensic consultants, and credit monitoring costs

Cyber Extortion Loss ‐ respond to a threat by third party to commit a network security or privacy breach Business Interruption/Extra Expense Loss ‐ loss of income resulting from a network security breach or a network attack and extra expenses incurred to restore network to original condition

Data Loss ‐ cost to restore data destroyed or altered

as a result of a network security breach

For more information call: Adam Felton PIA Services, Inc. adamfe@pianet.org

Network Security Liability ‐ Provides coverage for actions that the Insured is legally liable for claims made against the Insured for a Network Security Breach Privacy Liability ‐ Provides coverage for actions that

the Insured is legally liable for claims made against the Insured for a Privacy Breach of PII, PHI or Corporate Confidential Information

Regulatory Coverage ‐ Provides coverage for actions/proceedings and fines/penalties against the Insured by a regulatory agency resulting from a violation of a Privacy Law

Website Media Content ‐ . Provides coverage for actions that the Insured is legally liable for claims made against the Insured for a Media Peril of content on the Insured’s Internet Site Professional Liability‐ . Provides coverage for acts, errors or omissions in the rendering or failure to render professional services to a client of the Insured

Sagemark Consulting

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Accident Fund Ins. Co. of America Bituminous Insurance Donegal Insurance Group EMC Insurance Cos. Erie Insurance www.piaTN.com

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Directory

Readers’ service and advertising index

20 Amerisafe 8 AmTrust North America 15 Consumers Insurance USA 7 EMC Insurance 2 MidSouth Mutual Insurance Co. 13 M.J. Kelly of Tennessee BC PIA Branding Program 14 PIATN Agency E&O 24 PIATN CE Partnership

Show your true colors

23 PIATN CPIA 28 PIATN Cyber-Liability 27 PIATN DocIT for Agents 19 PIATN Online Education 9 PIATN Trust Insurance Plans 10 Penn National Insurance 11 Summit 30 Utica National Insurance Group

Name____________________________________________________________________ Agency___________________________________________________________________ Address__________________________________________________________________ City/town________________________________ State____________ ZIP_____________ Phone____________________________________________________________________ Check advertisers of interest, complete form and mail to: PIATN magazine • 504 Autumn Springs Court, Suite A-2 • Franklin, TN • 37067

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Professional Insurance Agents magazine

Enhance your ad with the impact of color.

Reach our sales representative at (800) 875-7428. .

Directory

PIATN officers and directors OFFICERS

NATIONAL DIRECTOR

President John Keisling, CPIA, CISR Keisling Insurance Agency Byrdstown, TN (931) 864-3116 john@keislingins.com

June Taylor, CIC, CPIA, CPIW, DAE Wilkinson Insurance Agency White House, TN (615) 672-4439 june.taylor@wilkinsonins.com

President-elect Joe Kerr, CIC, CPIA Kerr Insurance Services Brentwood, TN (615) 360-7524 joe@kerrinsurance.net

Greg Augustine, CPIA The Augustine Insurance Group Clarksville, TN (931) 503-0015 gaugustine@aol.com

Vice President Bill Richards, CPIA, LUTCF Community Insurance Greeneville, TN (423) 638-1422 brichards@greatci.com Secretary Herbert Montgomery Clay and Land Insurance Memphis, TN (901) 767-3600, ext. 107 hmontgomery@clayandland.com Treasurer Chris Mills, CPCU, CIC Mills Insurance Agency Nashville, TN (615) 620-4452 chris@millsinsuranceagency.com Immediate Past President Tina Hutsenpiller, CPIA Hutsenpiller Insurance Services Mt. Juliet, TN (615) 773-2886 tina@hutsenpillerinsurance.com

DIRECTORS

Llew Boyd Southern Insurance Associates Chattanooga, TN (423) 296-0626 llboyd@southins.com Carl Butcher, CIC, CPA C.L. Butcher Insurance Agency Knoxville, TN (865) 689-5482 carl@clbutcher.com Tom Gernt, CPIA Art E. Gernt Insurance Inc. Crossville, TN (931) 484-3448 tom@gerntinsurance.com Anna Lima-Montgomery, CPIA Montgomery & Associates LLC Brentwood, TN (615) 829-8457 anna@montgomeryassociatesllc.com Dedric Pearson, CPIA Pete Mitchell & Associates Inc. Memphis, TN (901) 345-6176 dedric.pearson@petemitchellins.com Jeff Puckett Boyle Insurance Agency Inc. Franklin, TN (615) 567-8000 jeffp@boyle.cm

EXECUTIVE VICE PRESIDENT

Jeff Anderson, CPIA PIA of Tennessee 504 Autumn Springs Court, Suite A-2 Franklin, TN 37067 (615) 771-1177 janderson@piatn.com

STAFF

Pam Cass, CPIA Director (615) 771-1177 pcass@piatn.com Bekah Hutsenpiller Marketing Coordinator (615) 771-1177 bekahhutsenpiller@gmail.com

The PIA Branding Program

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Local advertising for Local Agents Serving Main Street America

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How does a Professional Insurance Agent separate himself or herself from the pack in a crowded insurance marketplace? Simple.

By taking advantage of PIA’s new print advertising program.

Best of all, this powerful branding tool is available free and exclusively to PIA members, as part of their PIA membership. Company sponsorship of the PIA Branding Program is also free.

PIA has created a series of ten print advertisements that PIA members can run in local publications or print as flyers. These ads focus on the combination of choice and personal support and service that make PIA members Local Agents Serving Main Street America.

Learn More

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These attractive ads can be customized with agency logos and contact information and (optionally) a company logo. There are four general agency ads, two homeowners ads, two auto ads and two commercial lines ads, with numerous variations, sizes, color as well as black and white ads, making a total of 227 ads in all.

National Association of Professional Insurance Agents 400 N. Washington St. • Alexandria, VA 22314-2353 (703) 836-9340 (phone) • (703) 836-1279 (fax) www.PIANET.com • piabrandingprogram@pianet.org

Whether you’re a PIA member now, you’re an agent who has yet to join, or you’re interested in company sponsorship, head on over to PIA National’s website to see the ads and get all the details about the PIA Branding Program: www.pianet.com/piabrandingprogram