WASHINGTON, June 15, 2017 /PRNewswire-USNewswire/ -- PIA understands that a deal has been negotiated on House legislation to reauthorize the National Flood Insurance Program (NFIP) that would reduce the Write Your Own (WYO) reimbursement rate from 30.9 percent to 27.9 percent, with a three-year phase-in. It also directs FEMA to reduce costs for WYOs 1.5 percent by streamlining inefficiencies.
"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. "Accordingly, PIA will continue to oppose this legislation."
The WYO reimbursement is used by carriers to pay agent commissions, and most WYOs have acknowledged that, for them to remain in the program, they will likely pass any cut to the WYO rate on to agents in the form of commission cuts, similar to what was done in healthcare.
"We appreciate the House Financial Services Committee's work on this issue," said Jon Gentile, vice president of government relations for PIA. "Unfortunately, PIA cannot support this legislation due to the cut to the WYO reimbursement rate. Doing so will ultimately hurt consumers as agents leave the program. We continue to oppose this bill and will continue to work with Congress to find a way forward on NFIP reauthorization that recognizes the crucial role independent agents play in the NFIP."
Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America SM. PIA's web address is www.pianet.com.
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SOURCE National Association of Professional Insurance Agents