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Industry News

IIABA NEWS

Need for Federal Role in Terrorism Insurance

Earlier this week, in the heart of the world’s financial markets, the Big "I" urged Congress to protect the country’s economic stability by ensuring availability of terrorism risk insurance through a continued federal role.

The Big “I” testified before the House Financial Services Committee’s Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises during a field hearing in New York City.

The association thanked the committee members and Congress for recognizing the importance of a federal role in terrorism insurance by enacting the Terrorism Risk Insurance Extension Act (TRIEA) of 2005. The original enactment of TRIA in 2002 and its extension have been successful in stabilizing the insurance marketplace and have helped eliminate the market disruptions and uncertainties witnessed in the wake of Sept. 11.

“It is well known that the insurance community performed admirably in the immediate aftermath of Sept. 11, 2001, honoring its commitment and providing resources needed to quickly and fully pay claims and thus playing a pivotal role in the recovery-and-rebuilding process,” says the Big “I” written testimony. “However, even though the insurance marketplace responded effectively to the 9/11 losses, it was quickly apparent, and remains so today, that insurers could not handle the risk of further large-scale terrorist events without a federal backstop.”

The association noted that the insurance market’s ability to protect the American economy from the financial consequences of terrorism risk is a critical component of national security during the ongoing war on terror.

“As former Federal Reserve Chairman Alan Greenspan and other notable experts have asserted, the private insurance market is simply not in a position to handle the unpredictable nature and possible immense size and scope of terrorist attacks,” the Big “I” testified. “Despite the warnings of these experts, a specific plan for developing a private reinsurance mechanism to spread catastrophic risk from terrorism has yet to emerge. Now is the time to develop a long-term public-private partnership.”

If the federal role lapses, terrorism risk coverage would become inordinately expensive and probably unavailable to many businesses. The association emphasized that while terrorism risk coverage is critical in cities like New York, it’s not just a “big city” or “big business” problem—the economic impact would be widespread if the coverage becomes unavailable.

“As take-up rates have gone up across the country, we have seen terrorism coverage purchased by a wide and diverse variety of interests, from small towns in Mississippi to small and large businesses in New York City,” the association said. “Our members remain concerned that the needs of many policyholders will not be met with affordable and good quality coverage for this peril if there is no terrorism insurance program in place after Dec. 31, 2007.”

Charles Symington Jr., Big “I” senior vice president for government affairs and federal relations, pledges the Big “I” will keep working to secure a continued federal role in terrorism risk insurance.

“The Big ‘I’ is coordinating closely with other insurance trade associations, individual insurance companies, and commercial policyholder groups to extend the current terrorism insurance program at the end of the year,” Symington says. “We would like to thank Insurance Subcommittee Chairman Paul Kanjorski and Ranking Member Deborah Pryce for holding today’s field hearing to shed light on the continued need for federal reinsurance in the terrorism insurance market. We will continue to work with these Congressional leaders and others to ensure that a long-term federal backstop is in place at the end of 2007.”

YOUNG AGENTS

YAC-Centric Events and Activities

The National Young Agents Committee is offering events geared specifically for up-and-coming leaders at the Big “I” Legislative Conference & Convention. Special sessions include a first-timers reception, the Young Agent attendee and InsurPac chairs luncheon, a hospitality event and the always-popular President’s Panel breakfast with Big “I” leadership. Young agents will gain valuable legislative and leadership skills at this ground-breaking insurance industry event. The Big “I” Legislative Conference & Convention will be held at the Marriott Wardman Park Hotel in Washington D.C. April 25-27, 2007. For more information, contact Katie Cosgrove at 703- 776-5455; katie.cosgrove@iiaba.net.


InVEST

InVEST Silent Auction is Coming

Don’t miss the chance to support the next generation of industry professionals. Participate in the InVEST Silent Auction and support the program’s annual scholarships awarded to graduates of InVEST who are pursuing higher education with an emphasis on insurance.

The InVEST board of directors will hold the 2007 InVEST silent auction during the Big "I" Legislative Conference & Convention, April 25 through 27 at the Marriott Wardman Park Hotel in Washington, D.C. The InVEST Silent Auction will open at 6 p.m. April 26 and will close at 1 p.m. April 27. Be sure to keep an eye on bids – the InVEST Silent Auction is a popular event during Big “I” Legislative Conference and Convention.

A 501(c)3 educational trust, InVEST introduces high school and community college students to insurance and the more than 350 diverse careers available within the industry giving students a new outlook on the future. The program offers insurance agencies, brokers and carriers a diverse and talented group of entry-level recruits.

Click here to access information regarding the InVEST Silent Auction including updates on the great auction items. Visit www.independentagent.com and click here to download a contribution form. For more information, contact Sandra Skipper at 703-706-5437; sandra.skipper@iiaba.net.


TRUSTED CHOICE^®

Thousands See Trusted Choice^® Ads

In July, August and September alone, approximately 25,937,000 people saw a Trusted Choice^® advertisement. And, on average, these people saw the spot 4.5 times so the total number of impressions was 116,716,500.

The nationwide Trusted Choice^® television ads continue this month on CNN. The networks and detailed programming schedules for the rest of the spring and summer are as follows: March 12-25, CNN; April 9-22, The Travel Channel; May 7-19, Fox News; June 4-16, The Food Network; July 9-22, CNN; August 13-25, The Weather Channel.

Click on the station for a detailed schedule of the shows and times that the ads are running. Trusted Choice^® has also secured an additional local market overlay on CNN/Headline news (in the mornings and evenings) during the week of the National Legislative Conference & Convention, April 23 through 29. The local markets the ads will be broadcast in are: Washington, D.C.; Arlington, Alexandria and Fairfax, Va.; and Montgomery County, Md. To see that specific ad schedule, please click here.

The increased frequency of national Trusted Choice^® ads, combined with more agencies than ever running tie-in ads in conjunction with the national campaign, lead to a greater consistency of exposure to consumers. The “Agents/Brokers” area on TrustedChoice.com, under Advertising, includes print, billboard, radio and television ads specifically produced with Trusted Choice^® agencies in mind. All of the advertisements can be tagged with an agency’s contact information. These ads can be downloaded from the Web site free of charge, so the only cost to is the cost of purchasing the media space.  Agents who invest a little time and a small amount of their resources in advertising can significantly raise the profile of their Trusted Choice^® agency with local consumers—including existing and prospective customers. For additional information, contact Jenner Gohr at 800-221-7197; jenner.gohr@iiaba.net.


VIRTUAL UNIVERSITY

Seeking High-Quality CE Online?

As spring approaches and outdoor activities increase, many agents will be looking for a creative and fun way to get the insurance education they need in a way that won’t keep them in a classroom all day. The Big “I” Virtual University has a wide variety of unique quality online classes to enhance and expand insurance technical and business skills. The classes, which can be purchased by both members and non-members, include certification and designation programs, as well as beginner, intermediate and advanced classes --- all online and available anytime.

Some of the offerings available online include: New Employee Training Course, ACSR Modules 1 – 5, ACSR Modules 10 -12, SkillSoft courses, Building Your Service Into Gold, Business Interruption Insurance, Changing Attitudes: Creating Opportunities, Commercial Crime, Conflict Resolution, Fair Credit Reporting Act and Insurance Scoring, National Flood Insurance Program Flood Insurance (Based on the new FEMA Requirement for agents), How to Calculate Business Income in Five Minutes and more.

Some of the advantages of using the Big “I” Virtual University’s online course offerings include: self-paced classes; easy-to-understand technology, and step-by-step instructional diagrams on the Web site to help navigate through the courses effortlessly; a variety of learning mediums including a combination of video, audio, presentation slides, worksheets, interactive tests and challenges; availability anytime, 24 hours a day, seven days a week via the Internet, from a home, office or even a vacation spot; consistency in that every person in an organization will see, hear, read and apply the same consistent, high quality Big “I” training; and technical support.

To access the Virtual University go to www.indpendentagent.com or to go directly to the online course catalog, click here.