PIA Stands Firm in Defense of
PIA National has reaffirmed its strong opposition to any legislation
that would reduce the reimbursement rate for Write Your Own flood
insurance carriers. PIA's
statement follows an initial markup by the
House Financial Services Committee on June 15, which passed two of
seven bills to reform and reauthorize the National Flood Insurance
The WYO reimbursement rate is used by carriers to pay agent
commissions, and most WYOs have acknowledged that, for them to remain
in the program, they intend to pass any cut to the WYO rate on to
agents in the form of commission cuts, similar to what was done in
"Our position is straightforward: As an agents' association,
PIA will not endorse a provision which will likely result in a cut
to agent compensation," said PIA National Executive Vice President
& CEO Mike Becker,
in a statement issued on Friday June 16.
"Accordingly, PIA will continue to oppose this legislation."
The legislation includes several provisions, like including a
multi-year reauthorization, improving the claims process, and taking
steps to encourage the private market to sell policies, that PIA
National supports. However, PIA opposes the entirety of the
legislation because of the agent compensation issue.
PIA cannot support this legislation due to the cut to the
WYO reimbursement rate and the cuts to agent compensation it
would engender. PIA is the only agent group to oppose the
legislation over this issue. When it comes to defending PIA
members' commissions, PIA refuses to be neutral.
Commercial Prices Nearly Flat in Q1
Willis Towers Watson PLC's Commercial Lines
Insurance Pricing Survey (CLIPS), price changes reported by
commercial insurers averaged less than 1 percent for the sixth
consecutive quarter, following a moderating trend in price
increases that began in the first quarter of 2013. The CLIPS
indicated that commercial insurance prices in the United States
were nearly flat during the first quarter of 2017.
Price changes in the first quarter for most lines of
business were fairly consistent with changes reported in the
fourth quarter, said Willis Towers Watson. Four lines —
workers' compensation, commercial property, directors and
officers, and surety — indicated modest price decreases.
Price changes were fairly similar across segments, though
slightly positive for small accounts, and flat for midmarket,
large, and specialty accounts.
"Despite ample capital and benign claim cost inflation trends,
the commercial P&C insurance market has exercised considerable
discipline as a whole over the past couple of years," said
Serhat Guven, Willis Towers Watson's Americas property and
casualty sales practice leader.