NU Online News Service, Nov. 2, 12:21 p.m. EDT
The independent agents' associations in Delaware and Pennsylvania say they will no longer be affiliated with the National Association of Professional Insurance Agents as of the start of 2012.
Both associations, which are managed by a single office, Insurance Agents & Brokers, say in statements that they made the decision after years of waiting for the two national associations, PIA and the Independent Insurance Agents and Brokers of America (IIABA), to merge into one.
"This was a tough decision," says Diana M. Hornung Hanby, chairwoman of the Delaware Association of Insurance Agents & Brokers, "but the board feels that it is the most responsible course of action in fulfilling our fiduciary responsibilities."
Insurance Agents & Brokers of Pennsylvania Inc.'s Chairman G. Greg Gunn said the decision was a difficult one to make, but it too felt it had a fiduciary obligation to fulfill.
"Since the consolidation of our state associations in 2003, we have openly espoused the need for independent agents to have a single national trade association focusing on addressing needs and challenge," says Gunn.
He added there is disappointment that no progress "has been made on the national level to consolidate trade groups to better serve all professional independent insurance agents."
Hanby echoed Gunn's comments, noting that the Delaware associations consolidated their two state associations in 2007.
"Seeing no movement toward forming a unified trade group at the national level was a source of great frustration," she says.
In a letter to agents obtained by NU Online News Service, both groups note economic strains on the state assocation and its members from having to pay dues to both national associations as another contributing factor toward the decision.
The two groups will continue their affiliation with the IIABA.
For its part, the National PIA's Executive Vice President and Chief Executive Officer Leonard C. Brevik calls the decision by the two organizations "unfortunate," and says that PIA disagrees with the decision.
He says the association would continue its commitment to agents in those two states despite the decision and "provide a viable membership alternative to agents." He adds that PIA will "actively and aggressively solicit continued membership" in the national association.
"The operative word in the term 'independent agent' is 'independent,'" he says. "PIA members believe in choices: choice in carriers, choice in markets and choice in the associations that represent them. One size does not fit all, and competition, not forced conformity, provides better choices for independent insurance agents," he says.
Brevik notes that the association of Maryland agents, which is also managed by IA&B, has not ceased affiliation.
The IIABA's chairman, Mike Donohoe issued a statement saying, "IIABA looks forward to continuing our partnership with the IA&B of PA and the DAIAB, and to continue working with those states to deliver the highest-quality services and advocacy for independent insurance agents and brokers. IIABA has always advocated having one national association for independent agents and brokers, and we continue to seek discussions with the National Association of Professional Insurance Agents to further this goal."
This story was updated at 3:06 p.m. EDT with information about the role dues played in the decision to end the affiliation.
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