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Tax Clarification Could Impact Agencies
SB 2487 attempts to close what legislative leaders view as a tax “loophole” involving insurance companies transferring money between their subsidiaries. As drafted, SB 2487 updates the definition of “insurer” for tax purposes and pulls insurance brokers into that definition.
The bill language is broad enough that it could unintentionally sweep premium funds collected by agents into having the premium tax applied (retroactively back to 2019), even though these funds are held in trust solely to be passed along to insurers. IIABW is lobbying to exclude fiduciary premium funds held in trust from being treated as income for this tax. Can you imagine paying 2% of all the premium that flowed through your trust account over the last 7 years?
Assignment of Benefits Regulation
SB 6178 passed the Senate this week. This bill prohibits a person from soliciting or contracting with an insured to enter into an agreement to assign or transfer a postloss property insurance benefit from the insured to them.
An assignment of benefits (AOB) is an agreement signed by a policyholder that allows a third party, such as a repair company, to act on behalf of the insured and seek payment from the insurer. An AOB allows the third party to deal directly with the insurer in negotiating repairs and issuing payment directly to the third party without the policyholder's involvement.
IIABW Testifies on Flood Insurance
Tony Kelley of Kelley Insurance Agency & Financial Services in Everson testified before a WA House committee on flood insurance. He shared the experiences of his customers in North Whatcom County in 2021, when the Nooksack River’s flooding caused evacuations in Sumas, Nooksack, Everson, Marietta, and Ferndale. Some of the same areas flooded during the latest bomb cyclone.
IIABW Conferences in 2026
- 9/16-18 GO BIG Conference at the NEW Snoqualmie Hotel and Casino
Our Thoughts are With Suzanne
Our thoughts and prayers are with Suzanne Arnett, IIABW’s Director of Member Services. Bryant, her husband of 35+ years, unexpectedly passed away on January 3rd.
Recent Storm Causes $115B in Economic Losses
The recent winter storm that impacted 200 million people from 24 states is expected to result in total damage and economic losses of over $100 billion. To date, the largest winter storm by insured losses was the 2021 Texas freeze at $18 billion.
Insurance Agency M&A Falls 12% in 2025
Independent insurance agency mergers & acquisitions activity was down 12% from 2024 with the number of buyers continuing to shrink since 2021. Private equity (PE)-backed brokers slowed purchase activity by 10% in 2025, falling 23% below the five-year average. Publicly traded brokers completed 27% less purchases in 2025, and privately owned firms were 9% lower in 2025. Hybrid buyers accounted for 73% of transactions.
2026 P&C Outlook
After a peak in underwriting profitability in 2025, the U.S. P & C industry is expected to enter a softening market in 2026, “as rising competition, easing premium rates and the impact of persistent inflation on claims push up the combined ratio,” according to Swiss Re.
- overall premium growth is expected to slow to 3% in 2026 and 3.5% in 2027.
- return on equity is expected to decline to 12% in 2026, from 15% for 2025.
- personal auto’s 2025 net combined ratio was 94 points, while net written premium growth slowed to 3.6%, the lowest level since 2020. For 2026, personal auto will be flat, down from an average increase of 7% a year ago.
- General liability and commercial auto will remain above a net combined ratio of 100 points.
Surplus Lines Premium Volume Rose 8% in 2025
The 15 states with surplus lines insurance stamping offices (including WA) saw an 8% increase over 2024. Oregon reported the largest premium increase (24%). Nonprofessional liability was the largest category of coverage, with $38B in premium volume, up 12%, followed by property at $28B, up 2%, and professional liability at $8B, up 5%.
WA Population Hit 8 Million
Washington have 8 million residents for the first time and remained the 13th most populous state. Last year the state’s population increased by 73,000 people – 6th highest in the country. Washington added
- 17,000 in natural change (births minus deaths)
- 9,000 net gain from other states
- 46,000 net gain from abroad – the seventh most in international migration. Washington’s total net international migration was 71,000 in 2024.
GO HAWKS! Share Your Seahawks Spirit
IIABW would like to put pictures of your staff celebrating our Seahawks on our Facebook page and in our Big I Washington Magazine. Hit 'reply' to this email and attach a picture or a link to your social media page. GO HAWKS!
Insuring the Super Bowl
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Coverage type: General liability, event cancellation, workers' compensation, media liability and D&O.
- Who it protects: NFL, stadium, vendors, league organizers, players and staff, network and performers, executives and organizers.
- Example claim scenario: Fan injury, property damage, severe weather, major disruption, on-the-job injury, defamation and copyright claims, alleged negligence and management failures.
IIAB of King & Snohomish Co Events
- 2/19: 12-2 Lunch @Learn @La Mar in Bellevue
- 5/18: 11am Golf Tourney @The Plateau Club in Sammamish
- Go to their website for more details.
RLI Personal Umbrella
RLI's Stand Alone Personal Umbrella Policy covers your client's assets by providing up to $5 million in coverage above and beyond the insured's underlying homeowners and automobile policies. This personal umbrella is the perfect solution for difficult-to-place personal lines accounts. The application is self-underwriting, so you'll know immediately whether or not your insured qualifies.
Review our RLI vs. the Competition flyer to see a side-by-side comparison for measuring IIABW endorsed umbrella partner RLI against other umbrella carriers. For more product features and eligibility information, visit IIABW's personal umbrella program homepage or contact Ridge Ostling on our staff.
Submit Your 2025 Marketing Reimbursement until 2/28
The Trusted Choice Marketing Reimbursement Program (MRP) is continuing into 2026 - still offering up to $1,000 per agency to support digital marketing, TechCompare vendors and eligible marketing education.
Big I Retirement Plans
As a Big I member, you have exclusive access to the only retirement consultants who cater exclusively to independent agents and brokers. The Big I MEP 401(k) Plan has lower overall costs while giving employees consulting, helpful educational tools and low-cost investment options.
Big I Bonds Offerings
Bond underwriting can feel rigid. But what happens when a promising client doesn’t fit the standard profile? Learn about bonds available through the Big I.
25% off Big I CE Webinars
Aben Winter CE sale! Save 25% with code WINTER (use code at checkout) on over 50 webinars,
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