PIA’s 90th Anniversary – Decades of Accomplishments for Professional Independent Insurance Agents

1931

Our Founding Principles 

PIA was founded in 1931 with objectives that are as relevant today as they were then: 

• Educate agency owners and staff about insurance concepts;
• Keep agents informed about changing company offerings;
• Allow agents to assist one another in proper underwriting of their business;
• Increase cooperation between carriers and agents;
• Encourage uniform policy writing and assist in proper form completion; 
• Advocate for agents in legislative matters; 
• Foster acquaintanceship among agents so they could support one another; 
• Protect the American Agency System.
  

Adopted unanimously by the NAMIA (PIA) Board of Directors, December 12, 1931. 

1950s

Creation of account current system

Working with carrier partners, PIA created the account current system that is still used in the independent agency/carrier system today. 

1960’s

The 1960s marked the beginning of a transition in the association, transformed from an internally oriented organization to one also able to impress its views upon the industry, government and general public - views that were responsible and constructive, as well as in the best interest of members and consumers. That engagement continues to today.

Creation of the NFIP

In response to a collapse in availability of flood insurance coverage, PIA successfully advocated for the creation of the National Flood Insurance Program (NFIP). Beginning in 1967, PIA drafted enabling legislation and lobbied Congress for its passage. Congress created the NFIP in 1968.

Agency transitions

PIA successfully advocated for state laws and regulations that would address the unexpected death of an agency owner. 

Upon the death of the agent/owner, the estate could apply to the DOI for a temporary P&C agent license allowing the independent agency to operate for 90/120 days on servicing-only business that was already on the books until either the agency could be sold or another agency employee could secure a full-time P&C license.  The first versions of these laws/regulations required that the main P&C insurer in the agency had to agree and provide a managing oversight support.

1970’s

Although the association’s commitment to state regulation of insurance remains firm to today, it responded to the federal government’s growing interest and involvement in the insurance business. It took a leadership role in formulation the industry’s positions on flood, crime and no-fault auto insurance. 

It was during this time that NAMIA was in the forefront of the producer movement to prohibit banks from entering the insurance agency business.

It also launched the ICAP - Insurance Consumer Action Panel - which demonstrated that insurance buyers’ complaints against companies and agents could be settled through third-party arbitration instead of time-consuming lawsuits. That experience laid the groundwork for the association’s later success in creating the Consumer Insurance Interest Group (CIIG) as a vehicle for cooperative action between the industry and consumer activities.

Crop insurance

When it became clear that the federal government was going into the crop insurance business, with federal employees acting as crop agents, PIA worked to assure that independent insurance agents could write federal crop insurance policies. Ultimately, Congress decided that having federal employees distribute crop insurance had failed, and PIA successfully argued for private sector distribution through independent agents.

Regulatory changes

During the market crisis of the 1970s (which extended into the 1980s), PIA created and led the movement countrywide to adopt agency termination laws and regulations across the country. PIA successfully advocated for legislative changes to personal lines cancellation/nonrenewal laws/regulations across the country. In less than one year we succeeded in advocating for changing the policy cancellation/nonrenewal laws for all commercial lines insureds in the same way.

Name Change in 1976

Ever since the founding of what was to become PIA in 1931, our association was named the National Association of Mutual Insurance Agents (NAMIA) and represented independent agents who represented mutual carriers. Over the years, the differences between mutual agents and stock agents diminished, so in November 1976, NAMIA changed its name to the National Association of Professional Insurance Agents (PIA) and opened membership to all professional independent insurance agents.

When PIA was formed, with help from mutual insurance companies, agency members had to have a majority of mutual insurers in the agency. PIA never required that all agencies have only mutual insurers in the agency. In the 1960s this was changed to having at least one mutual insurer, and then in 1976 the mutual requirement was dropped altogether. 

1980s 

Standardization

In the market crisis of the 1980s, PIA’s lobbying led to additional changes to the policy cancellation/nonrenewal laws so all commercial lines insureds in the same way.

Early Use of Data – PIA Business Link

PIA innovated one of the earliest uses of data to match agents looking for carriers and carriers in need of agents. 

In the market crisis of the 1980’s, many carriers terminated agency appointments. PIA created Business Link, a confidential database maintained by PIA to facilitate agency/company appointments of PIA members. The Business Link program applies a business/data model-driven approach to “matching” carriers to agencies. In the late 1990’s, PIA transferred the program to PIA affiliates, some of whom still use it. 

1990s

Pioneering work on diversity 

In 1994, PIA convened an all-industry series of meetings in Detroit to address the need for greater diversity in the insurance industry. The dialogue opened in these sessions was the subject of a report published as a book the following year by PIA, Doing Business With the New Insurance Consumer.

Company Council of Executive Officers (PIA-CCEO) formed

In 1996, PIA provided the impetus along with startup funding for an agency-company organization, the Company Council of Executive Officers (CCEO). Initially, carrier representatives working with PIA leadership concentrated on conducting cutting-edge research and engaging in dialogue to support the American Agency System. The CCEO grew and expanded its mandate, becoming the precursor of The PIA Partnership. 

2000s

PIA Advocates for the Terrorism Risk Insurance Act (TRIA)

Less than one month after the September 11, 2001 terrorist attacks, PIA took a leadership stance along with our industry allies which led to the creation of the Terrorism Risk Insurance Act (TRIA). Less than a year later, TRIA was passed and PIA attended the White House bill signing ceremony at the invitation of President George W. Bush.

The PIA Partnership is formed

The PIA Company Council of Executive Officers (CCEO) was transformed into The PIA Partnership, with an expanded membership and mandate.

For more than 20 years, The PIA Partnership has identified areas of opportunity in the agency-company partnership, conducting solution-oriented research and producing a steady stream of business tools agencies can use to build their business, operate more effectively, and achieve greater success.

Advocacy for the National Flood Insurance Program

PIA begins what would become over two decades of legislative advocacy for long-term congressional reauthorization of the National Flood Insurance Program (NFIP). Many times, Congress granted only multiple short-term reauthorizations, and many times the program lapsed for short periods. PIA successfully advocated for several five-year reauthorizations and is recognized as an industry leader in flood insurance.

Flood Insurance Producers

Beginning in the 2000s and continuing to today, PIA has served as a member and rotating chair of the Flood Insurance Producers National Committee (FIPNC).

PIA, Rough Notes Announce Annual Young Insurance Professional Award

To encourage more young people to consider a career in the agency system, in 2007 PIA began the annual PIA Young Professional of the Year Award (YIP). For 15 years, this prestigious industry award has been sponsored by The Rough Notes Company, Inc. and its President & CEO Walter J. Gdowski, a lifelong supporter of professional independent insurance agents.

Opposition to Optional Federal Charter proposals/Support of state regulation

One of PIA’s core principles is support of the state-based insurance regulation. In the 2000’s and 2010’s, PIA fought successfully against federal proposals to allow “optional” federal charters for insurers and producers. Multiple bills introduced calling for an OFC were actively opposed by PIA. None passed.

PIA Successfully Defends Agent Contingent Commissions

Starting in 2004, several state Attorneys General announced that they had uncovered instances of alleged bid-rigging in dealings involving a handful of top-of-the-marketplace mega brokers in insurance.  Settlement agreements imposed on several insurers by then-New York Attorney General Eliot Spitzer would have the insurers “voluntarily” ban contingent commissions. Although no PIA members were ever accused on any wrongdoing, the settlement agreements would ban all contingent commissions, including those paid to Main Street independent agents, who did nothing wrong.

PIA moved to defend the reputations of all PIA members, through both legal actions and a public relations campaign. PIA National filed an amicus, of friend-of-the-court brief in the U.S. District Court for New Jersey, challenging the elimination of contingent commissions, the first of several legal actions. In a major victory for agents, in 2007 courts held that contingent commissions were neither illegal nor unethical.

2010s

PIA Opposes Federal Insurance Office

PIA is a steadfast supporter of state regulation of insurance and strongly opposes federal insurance regulation. 

In 2010, supporters of federal insurance regulation succeeded in adding creation of a Federal Insurance Office (FIO) in the Wall Street Reform and Consumer Protection Act (Dodd-Frank). At the time, the proposal to create the FIO would have given it broad regulatory authority over insurance. PIA worked closely with the legislative staff of the NAIC to push back at this, succeeding in inserting legislative language prohibiting the FIO from acting as a regulator. 

PIA is continuing to encourage support in Congress for the repeal of the FIO by seeking cosponsors for the Federal Insurance Office Abolishment Act and urging House members to introduce a companion bill. 

Secured Repeal of the “Cadillac Tax”

PIA fought against a provision in the Affordable Care Act (ACA) that would have imposed a 40 percent excise tax on so-called “overly generous” employer-sponsored health plans. It would apply to fully insured and self-funded employer health plans and tax policies with limits that exceed the annual thresholds. 

The tax never took effect. Throughout the decade, PIA successfully advocated for Congress to repeatedly postpone the effective date of the tax, while also lobbying for its outright repeal. Then in 2019, Congress passed the bipartisan Middle-Class Health Benefits Tax Repeal Act (H.R. 748) to repeal it entirely. President Trump signed the repeal bill into law.

Secured Inclusion of Insurance Agencies in 2017 Tax Bill

PIA actively advocated for the passage of the 2017 tax bill because it provides subchapter S corporations – also known as “passthrough” corporations – with more favorable tax treatment. The law includes a tax deduction for owners of small businesses—including independent insurance agencies—that organize as passthrough corporations, reducing their potential tax burden. The 20 percent deduction has helped small businesses, including qualifying insurance agencies.

PIA/National Underwriter Annual Agent Survey

Beginning in 2017, PIA and  ALM Media, publisher of the National Underwriter/PC360, initiated the annual PIA/National Underwriter Independent Agent Survey. The upcoming 2021 survey will be the fifth annual edition.

2020s

The COVID crisis that began in early 2020 and is ongoing has meant that PIA National has devised many new ways, and formed many new programs, to provide even more assistance to PIA members and their agencies than ever before.

We’ve done this as we continue to rack up legislative wins on Capitol Hill and pursue our agenda at the NAIC.

We are also continuing to do great work for PIA members with our carrier partners who are members of The PIA Partnership. We are a leading force for agents in InsurTech, forming the PIA Insurance Technology Leadership Advisory Board (PIA IT-LAB).

At PIA, we advocate for the things that are for the betterment of the industry, and for the protection of the agency distribution system. At the same time, we help our carriers understand how to work effectively with us – and us with them – so that it’s a win-win for everyone.

But above all, we continue to do what we have done without interruption since 1931, 90 years ago: serve PIA members.

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