PIA Group to Become AIP

In an effort to maximize its member services, the Professional Insurance Agents Group (PIA) has announced its disaffiliation with PIA National, effective Dec. 31, 2002. “We just decided that it was in our member’s best interest to take the money that we were giving to the National association and spend it here close to home,” Alan Smith, president and CEO of PIA Group, said.

“For the past several years, we have really been looking at our relationship with National; what was the value that we received for our franchise fees that we paid to National; as we would look at any business relationship,” Smith continued. “Finally, this year, we just decided that the franchise fees were not generating enough tangible benefits for our members here in our four states.”

The Group will take on the name Association of Insurance Professionals (AIP) on Jan.1, 2003.

“As far as changing anything, it really doesn’t.” Smith said. “It doesn’t affect any of our corporate set-ups.”

The money saved from the National franchise fees will be used to further enhance the Group’s existing services, which include new markets, lobbying and advocacy on behalf of the insurance industry and educational programs.

Smith said that the decision stemmed from many months of deliberating with members. “We’ve been surveying our members,” he said. “We stay in regular touch with them. We’ve been having conversations with literally hundreds of our members over the last couple of years about the value of the National as well as other services that we provide.

“So far we have not had any expression from any member of any serious concern whatsoever,” he continued. “In fact, most of our members totally support this move. The reason they joined our association is primarily for the services they get in our four state area. National has been, if you will, a plus.”

Smith added that Group members who wish to maintain their membership with National are invited to do so directly.

The PIA Group, comprised of over 1,000 member agencies in California, New Mexico, Arizona and Nevada, has been in existence for over 60 years. The association evolved from the California Association of Mutual Insurance Agents, to the California Insurance Association and then to its affiliation with PIA National in the late ’70s.

As for PIA National’s response, Smith said, “They’re certainly not happy to lose one of their large affiliates, [but] they realize that from time to time you have to make tough business decisions.”

“It was a very difficult decision,” Smith added. “We’ve been part of National for many years, we have many friends and associates and relationships, and we certainly wish them the very best.”