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Lessons in Leading Through Change and Shaping the Future of Affinity Insurance

  

Lessons From a Young Leader in a New Era 

Jim Larsons journey with PIMA started at its very beginning, back in 1975, when a small group of industry leaders gathered in Chicago to confront a rapidly evolving affinity insurance landscape. Long before he became PIMA president in 2006, Jim found himself at the center of a movement that would go on to shape the affinity insurance industry for generations. I was just a kid back then,” he recalls, “27 or 26 years old.” 

Despite his age, Jim was lucky enough to attend that first PIMA meeting in 1975, born out of the need to respond to pressing insurance industry challenges. Changes in postal regulations and increased scrutiny of nonprofit mailings were creating roadblocks for large third-party administrators (TPAs)The industry needed a unified voice to represent the affinity markets interests. 

“[Back then], most of the TPAs were using not-for-profit postage for endorsed insurance mailings from the associations. The government changed that. The rules and regulations changed what was going on,” Jim explains. So PIMA was formed, not to fight, but try to get our story across to the regulators.” 

PIMA’s creation was a direct response to these shifting regulations, and Jim’s journey with the organization offers a firsthand account of how it adapted to navigate such challenges. Drawing from decades of experience, Jim shared key moments and lessons that highlight PIMA’s role as both a leader and advocate in the affinity insurance market. His stories provide a roadmap for present and future PIMA members to thrive in a complex and ever-changing industry, just as he did. 

Lesson #1: If You Want to Redefine the Industry, Challenge the Status Quo 

In the mid-1970s, the insurance landscape was simpler and far less transparent. Jim credits industry transformers like Kirke-Van Orsdel, Inc. (KVI) for introducing innovative practices during this time. “The real beauty of KVI is [how] the two founders found three little simple principles that changed the industry,” Jim explains. “They gave the association ownership of records. They paid a royalty to the association. And equally as important, they shared full financial disclosure.” 

KVI’s emphasis on transparency and accountability set new standards for the market, fostering trust and reshaping how business was conducted. They also embraced early automation, streamlining operations and improving efficiency. “They were the early people, in fact, probably the first people to focus on computers,” Jim recalls. “They automated their records to better service the client, the carrier, and themselves. 

As Jim rose through leadership, he carried those lessons on transparency and accountability into his approach. These new industry standards mirrored the values he championed within PIMA, encouraging members to adapt and modernize in an ever-changing market while maintaining transparent practices. 

Lesson #2: Sometimes, the Best Way Forward Is to Look Back 

Throughout his life, and particularly in the affinity industry, Jim found that simpler solutions often hold the key to sustainable success. Early in his career, the industry thrived on what he calls the “keep it simple, stupid” (KISS) philosophy. “It was purely a supplemental marketplace,” Jim explains. “Short-form applications, small premiums... it was really a simple situation for the members to understand the need and to apply in practice.” 

This straightforward approach worked because it met people’s needs quickly and efficiently. “Back in that era,” Jim says, “you put something in the mail, and you pretty much expected to be successful.” The simplicity of these “nickel and dime” products—affordable policies that provided supplemental coverage—opened the door for cross-sells and upgrades, fostering long-term customer relationships. 

However, over time, the industry moved away from this model, chasing new opportunities. “The sale became much more difficult,” he explains. “There were more underwriting requirements... financial disclosure was sometimes necessary. It changed the whole industry.” 

Yet, Jim goes on to say, “History does repeat itself if you allow it to.” The market is now circling back to those “nickel and dime” concepts under the banner of “embedded insurance,” integrating coverage into everyday transactions. For Jim, it’s not a new idea—it’s a revival of what worked decades ago. Embedded insurance, like you buy a plane ticket, and it’s embedded right in there, and then you buy up if you want more,” he says. That’s how we started out. We just lost our way.” 

The lesson is clear: the foundation of the affinity insurance market lies in its ability to deliver simple, accessible products that resonate with consumers. We're not creating the need for this coverage [anymore]. We’ve got to do that. 

For today’s PIMA members, this lesson is more relevant than ever. By revisiting the lessons of years past, focusing on smaller, supplemental products, and educating consumers about their value, members can reconnect with the industry’s roots while positioning themselves for long-term growth. Simplicity doesn’t mean stagnation—it means building a solid foundation for innovation and success. 

Lesson #3: Leadership Means Preserving What Matters While Embracing Change 

When Jim Larson became PIMA president in 2006, he found himself leading the organization through a period of cultural transformation. For decades, PIMA had been more than just a trade association, fully embracing the role of a family-oriented organization where business was intertwined with personal connections. “Back in the earlier days, kids were a major part of it,” Jim recalls. “It was very family-oriented. Yes, it’s a serious business. Yes, we want to educate each other, but the whole atmosphere changed.” 

The shift had come as PIMA grew and modernized, a visible result of keeping pace with the times. While this brought efficiency, it also meant losing some of the camaraderie and personal touch that had defined the organization’s culture. “It became more matter of fact,” Jim says. The transition wasn’t without challenges, as members and leadership adjusted to a new dynamic. 

For Jim, the heart of leadership during this shift was finding ways to balance progress with tradition. One of his key initiatives as president was ensuring that members remained at the center of the organization’s mission. As such, Jim prioritized practical, member-led sessions over high-profile keynotes, believing they provided more value.  

“We felt that we got the best response after a meeting when we had members sitting on a chair and answering questions,” he says. “Not giving away trade secrets but talking about blocking and tackling—how they dealt with issues, what their average premium was, the response rates they were getting, and how they were effectively selling business.” 

Through these efforts, Jim worked to preserve the sense of community that had long been PIMA’s strength, even as the organization evolved. His belief in member-driven collaboration underscores a timeless leadership principle: real progress happens when you stay connected to the people and purpose at the heart of your mission. 

For PIMA members today, it’s important to remember that change is inevitable. However, change does not always necessitate letting go of what makes an organization unique. A forward-looking industry leader is one who honors the past, embraces the present, and prepares for the future—all while keeping the heart of the organization intact. 

A Vision for the Affinity Industry of Tomorrow 

For Jim, the future of the affinity market depends on one simple principle: stay engaged. “Come and learn. Be part of the audience,” he says. He also believes the affinity market has untapped potential. He encourages members to challenge the status quo and think creatively about the problems they face.I believe there are answers in reinventing the marketplace of today, he explains. 

Reflecting on PIMA’s 50 years, Jim sees its return to a member-driven focus as a testament to the strength of its community and the value it provides. PIMA’s commitment to fostering relationships, sharing knowledge, and embracing collaboration gives him confidence in the road ahead. 

According to Jim, the future of the affinity market is bright. The challenges it faces are opportunities for reinvention, and he believes PIMA members are ready to lead the way. The organization’s legacy of innovation and resilience ensures it will remain a powerful force for decades to come. 

PIMA® (Professional Insurance Marketing Association®) is a member-driven trade association focused exclusively on the affinity market. 

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