It’s a good thing Noah built an ark and didn’t rely on Congress to protect him from the flood. As I write column, it seems that only an act of God could get our representatives in Washington, D.C. to do the responsible thing. As I file this story, the Senate has just voted to extend the National Flood Insurance Program to Sept. 2011, after weeks of anxiety for homebuyers during hurricane season. I’ll forgo the obvious analogy of Congress as a bunch of animals, but the neglect they demonstrated by failing to extend the National Flood Insurance Program in a timely manner and by placing homeowners at risk during the hurricane season is simply irresponsible. Less than two weeks ago, the Senate voted down a package that included a NFIP extension—the fourth time this year our national lawmakers have allowed the NFIP to slip into lapsed status. Although consumers with current flood insurance policies remained covered, new policies could not be issued while NFIP lapsed. The economic impact of this recurring issue is clear and urgent: During this tenuous economic time, when the real estate market needs nurturing, not obstacles; property transactions are held up as mortgage lenders require proof of flood insurance. A lapsed NFIP leaves agents and carriers unable to write new policies, delaying and even preventing closings for our clients. Even though the Senate passed another NFIP extension, those who need a new policy still will have to wait an additional 30 days, per the required waiting period.

PIA National has sent letters (most recently to Majority Leader Reid and Minority Leader McConnell) and encouraged members to contact their lawmakers to urge them move quickly to reauthorize NFIP. It’s amazing, that despite the lack of controversy, our association must resort to vigorous advocacy on such an important issue. Meanwhile, there’s positive news on the more local front: In response to PIANY’s continued advocacy, a bill (A.4847) sponsored by Assemblyman Harvey Weisenberg (D-Nassau) has been developed, directing the New York State Insurance Department to establish uniform standards for windstorm deductible triggers on homeowners policies. Readers of my column will remember my regular reports of the dire need for this, and realize that PIANY has been pushing for uniform triggers that put windstorm deductibles in force to be standardized for some time. I’m pleased to report has the bill passed the Assembly as of June 21. Assemblyman Weisenberg is to be commended for recognizing the necessity of such legislation in his district and for acting to address it. Although getting this bill through the dysfunction of Albany is easier said than done, I see its introduction as progress. It’s just a shame that the Senate doesn’t seem to see its importance, even during the hurricane season. Where are those senators from Long Island, Staten Island and Westchester who should be watching out for their constituents? These examples, in which property owners again are pawns to our politicians, demonstrate a familiar contrast: between slow, reactionary national public policymaking and a more proactive and nimble state process. This has been cited often in our industry. The argument for state-based insurance regulation over federal oversight suggested by the Optional Federal Charter is another example. It usually is the case that local, smaller and more nimble parties can react and address issues faster and with more insight about a particular situation than larger, more remote ones—lifeboats versus arks, if you will indulge my analogy, albeit with a twist.

The same rationale can be applied to explain the value of wholesalers: In this changing market, where big carrier appetites have increased, we are wise to remember the value of the nimble wholesalers in our industry. Despite the soft market, many our options wholesalers give us would not otherwise be available to us. Through thick and thin, they always manage to get a quote to us on time. I know of many occasions when our direct markets have let us down in the middle of the quoting process and it was our familiar wholesaler who would come through for our clients. They are often a lifeboat for a sinking client.

The reason we use wholesalers is because they can produce coverage for my clients that we could not get through normal channels. I’m sure fellow agents and brokers have shared that sense of relief I experience when my office phone rings and my wholesaler is on the line saying, “Steve, I got you your coverage.”

Beyond a variety of markets, it’s the specialist expertise that wholesalers bring to our business that helps our customers. The wholesaler knows his or her markets and can get the appropriate coverage for special situations based on this expertise; (s)he knows where to go without wasting valuable time, and comes through because (s)he knows I need the coverage as quickly as possible. The expertise of the wholesaler in specialty lines is vast and brings value to the agent and his or her client. Speaking of value, I’d like to close this article with a report as a member of PIA’s Agent and Broker Compensation and Disclosure taskforce. PIA has been at the forefront against mandatory disclosure since it was first suggested by politicians in 2004 and the association has and continues to work relentlessly on behalf of all independent producers through this nightmare. During his comments at the PIANJ/PIANY joint annual conference Kevin Ryan thanked the agent volunteers for their labor on this issue. I have to say, I am proud that PIA has had the foresight to stay in the battle, rather than walk away from discussions with the New York State Insurance Department, and we now are seeing fruit of our labor. Without taking shots at others who might capitalize on this issue to exaggerate competition among our agent community for their own profit, PIA continues to whittle away at this regulation: simplifying its requirements and making it easier for agents to deal with. As one of my fellow agents told me during the conference, “PIA has been the ‘thinking agents’ association on this matter.” Most recently, PIA announced the development step-by-step guidance with language and considerations that fit easily into individual agency workflows. PIA is a lifeboat to agents if ever there was one.