To recap the issues raised during this week’s conference call, here are the key media stories we discussed, and the messages we’re conveying.
If there is a subject you would like to see addressed on Wednesday, April 29, please email me at michaelb@iii.org.
FEDERAL GOVERNMENT FINDS COST OF AUTO INSURANCE GREW 5.9 PERCENT OVER THE PAST YEAR
The cost of auto insurance grew by 5.9 percent during the period March 2014 – March 2015; and grew 4.2 percent in calendar year 2014, the U.S. Department of Labor found.
AMERICANS DRIVE 29 MILES A DAY, ON AVERAGE, ACCORDING TO THE AAA FOUNDATION FOR TRAFFIC SAFETY AND THE URBAN INSTITUTE
The first-year (May 2013 – May 2014) survey results were based on telephone interviews with a nationwide sample of more than 3,300 drivers.
STORIES IN THE WORKS
The I.I.I.’s Bob Hartwig discussed with The Hartford Courant’s Mara Lee a Connecticut proposal to make it optional to purchase uninsured/underinsured motorist coverage.
The I.I.I.’s Jeanne Salvatore is speaking later this week with The Washington Post’s Jill Chodorov regarding the use of credit-based scores in the homeowners insurance market, something that Maryland bans.
The I.I.I.’s Loretta Worters briefed Property Insurance Report’s Brendan Noonan on the risks faced by home-based businesses, and the coverage these entities need.
The I.I.I.’s Michael Barry spoke to The Chicago Tribune’s Bob Weber about how the collision provision of an auto policy covers pothole-caused damages to an insured’s vehicle.
The I.I.I.’s Barry prepared responses to a Syracuse, New York, ABC affiliate’s inquiries about auto insurer use of preferred auto body repair shops and after-market parts, although the investigative reporter has for the moment held off on pursuing the story.
The I.I.I.’s Janet Ruiz explained to Sacramento CBS affiliate investigative producer Nicole Longhini how an auto insurer traditionally handles a diminution of value case.
CAPITOL HILL
Financial Stability Oversight Council (FSOC) met in a closed session this week, according to A.M. Best (subscription required). A Reuters columnist offered this take on last month’s U.S. Senate hearing on FSOC Accountability: Nonbank Designations.
President Obama said in his weekly address last weekend “the fact that the climate is changing has very serious implications for the way we live now. Stronger storms. Deeper droughts. Longer wildfire seasons.”
The U.S. Air Force’s Weather Agency is replacing the Weather Research and Forecasting (WRF) model developed by the Boulder, Colorado-based University Center for Atmospheric Research with the Unified Model of the United Kingdom Met Office.
STATES
Alabama
Five tornadoes touched down in the state on Sunday, April 19, with two EF-1s landing in Russell County, and one EF-1 each in Henry and Houston County. An EF-0 struck Cherokee County.
The state has been the site of the deadliest tornadoes nationally (620 fatalities between 1953-2014), as well as eight of the 10 most intense tornadoes in the U.S. since 1966, a Storm Prediction Center (SPC) report found.
California
A wildfire near Corona (Riverside County) burned hundreds of acres east of Los Angeles early on Sunday, April 19.
Hollister’s City Council (San Benito County) voted this week to impose municipal accident response fees on its residents, such as charging a negligent driver $435 if their car crash warranted a hazardous materials assessment by the city’s fire department.
Assembly Bill (AB) 1203 (Jones-Sawyer): Property Insurance Surcharge is expected to be on the Wednesday, May 6, calendar when the Assembly Committee convenes publicly on that day in Sacramento.
Florida
The I.I.I.’s Lynne McChristian appeared in a Tampa ABC affiliate segment last night (April 21) regarding the link between advances in auto safety and the cost of auto insurance.
The Palm Beach Post reported last weekend on a National Flood Insurance Program (NFIP) policyholder who was asked to pay a $250 surcharge, rather than the $25 fee they should have been paying, on their primary residence.
The Florida Hurricane Catastrophe Fund (FHCF) is acquiring a total of $2.2 billion in reinsurance coverage, with $1 billion coming through the purchase of private reinsurance and the balance via a FHCF bond issuance.
Georgia
A 60-year-old woman died after a tree fell on her northwestern Atlanta home early on Monday morning, April 20. The day before, Atlanta’s CBS affiliate reported that heavy rainfall adversely impacted residents in Canton and Holly Springs (Cherokee County).
The president declared a major federal disaster exists in 15 counties after the severe winter storm that occurred on February 15-17, 2015.
Kentucky
Governor Steve Beshear has requested a major federal disaster declaration for the severe winter weather that hit the state between February 15-22, 2015 (see page 6 of this FEMA bulletin).
Louisiana
Louis Freeh, the former FBI chief now serving as a watchdog over BP oil spill settlement claims, is seeking dismissal of a lawsuit filed against Freeh, and his corporation, by an attorney once involved in the claims process, the Associated Press reports.
Maine
Most of the state was placed under a flood watch on Tuesday, April 21, after a storm dumped more than four inches of rain, roiling the Kennebec and Androscoggin Rivers.
Michigan
By a vote of 21-17, the state Senate passed a measure (Senate Bill 248) which “provides long-needed fraud measures and medical and attendant care cost controls for the [no-fault] system without impacting the high level of benefits enjoyed by Michigan consumers.”
Mississippi
Attorney General Jim Hood announced his office is suing State Farm and seeking a jury trial, alleging the company denied Katrina claims, which were then paid for by the federal Homeowner Assistance Program.
North Carolina
The state’s Association of Realtors is expected to focus today (April 22) on pending homeowners insurance reform bills during its annual Legislative Day in Raleigh, the Charlotte Observer reports. The House (151 and 182) Senate (208, 683 and 691) bills are summarized.
Oklahoma
The Oklahoma Geological Survey said it now “considers it very likely” some of the state’s earthquakes are linked to the energy industry’s practice of injecting wastewater from oil and gas operations deep underground.
Red Rock Insurance Co., an Oklahoma insurer, is being liquidated after the capital provided by its buyers included bonds from an acknowledged counterfeiter and a stamp collection purportedly valued at $40 million, according to The Wall Street Journal.
South Carolina
EF-1 and EF-2 tornadoes touched down in Akin, Calhoun and Darlington counties on Sunday, April 19. They caused minor property damage but no injuries were reported.
Tennessee
The National Council on Compensation Insurance (NCCI) will become the Tennessee Workers Compensation Insurance Plan’s (TWCIP) new administrator, effective July 1, 2015. The TWCIP is also being renamed the Workers Compensation Insurance Plan (WCIP).
Texas
Strong winds sent trees crashing into a number of Huntsville (Walker County) homes on Thursday, April 16. Other Houston-area communities, such as Spring and Tomball, were hit by heavy rainfall and hail on Sunday, April 19.
SOCIAL MEDIA REPORT
Monday (April 20) marked the five-year anniversary of the BP oil spill in the Gulf of Mexico. On social, people remembered the victims of this disaster as well recapping the damage the spill caused not only to the environment but the economy, as well. Mother Jones posted an article that quickly spread through social platforms, discussing the economic implications of the spill.
A wildfire in southern California’s Riverside County last weekend prompted the evacuation of 300-plus homes in the area. Many media outlets have been posting updates about the fire on social.
In a separate development, the smoke from a wildfire in Russia made its way to California, Oregon and Washington, causing dramatic sunsets.
Today (April 22) is Earth Day and just about everyone with a Twitter account has posted the steps they’re taking to protect the environment. One very popular tweet was posted by NASA, featuring historical views of the Earth. The I.I.I. is celebrating Earth Day on social by posting content related to green insurance. Search the hashtag #EarthDay to see how the world is marking the occasion.
MEDIA MATTERS
Patti Vowinkel has been appointed executive editor, Best’s Review. She used to work for Reuters and can be reached in New Jersey at either 908-439-2200, ext. 5540 or at patricia.vowinkel@ambest.com.
Al Jazeera America is struggling in the cable television ratings, averaging only around 27,000 viewers nationally in prime time, The New York Post reported this week.
The I.I.I. is cited regularly in the media as an authoritative source of insurance information. To access the current I.I.I. press clips, click here
For an I.I.I. Blog search, click here.
