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, May 6, please email me at michaelb@iii.org.
THE I.I.I. ISSUES ADVISORIES AS NEPAL EARTHQUAKE AND BALTIMORE RIOTS GENERATE INTERNATIONAL MEDIA COVERAGE
The deadly earthquake in Nepal occurred on Saturday, April 25, while civil unrest broke out in Baltimore, Maryland on Monday, April 27.
I.I.I. PARTNERS WITH TU-AUTOMOTIVE DETROIT FOR ITS JUNE 3-4, 2015, CONFERENCE
The conference focuses on the future of the connected car, and automotive technology innovation. Prospective attendees should register by Friday, May 1, to receive a $100 discount. For further information, contact Charlotte Wright, TU-Automotive’s marketing manager (charlotte@tu-auto.com).
I.I.I. ESTABLISHES A DIVERSE MARKETS SUBCOMMITTEE
The purpose of the subcommittee will be: 1) to learn more about the non-English language resources of I.I.I. members and promote them to the media and consumers; and 2) to provide input to the I.I.I.’s ongoing Hispanic education initiative.
MORE ARE SHOPPING FOR A NEW AUTO INSURER, BUT FEWER ARE SWITCHING CARRIERS, J.D. POWER’S 2015 U.S. INSURANCE SHOPPING STUDY FINDS
Among those who shopped, only 29 percent actually switched in 2014, compared with 37 percent in 2013.
HYDRAULIC FRACTURING MAY HAVE CAUSED EARTHQUAKES IN MULTIPLE STATES, ACCORDING TO U.S. GEOLOGICAL SURVEY (USGS)
The USGS released the agency’s first comprehensive assessment of the seismic effects of drilling for energy.
NATIONAL INSURANCE CRIME BUREAU (NICB) REPORT SAYS NEARLY 7 PERCENT OF 2014 U.S. VEHICLE THEFTS OCCURRED WHEN THE KEYS WERE IN THE IGNITION
The NICB estimates 659,717 vehicles were stolen nationally in 2014, and 44,828 of those vehicles had the keys in them at the time of the theft.
THE WALL STREET JOURNAL EXAMINES HOW 2010 DODD-FRANK ACT LED TO THE FEDERAL RESERVE’S GROWING INSURANCE REGULATORY ROLE
The designation of AIG, MetLife and Prudential, as “systemically important financial institutions (SiFis),” coupled with The Federal Reserve’s oversight of 14 insurers who own banks, has given The Federal Reserve broad powers over the insurance industry.
STORIES IN THE WORKS
The I.I.I.’s Jeanne Salvatore briefed Katherine Roberts, a producer with Washington, D.C.’s NBC affiliate, on how auto, home and business policies might cover riot-caused damages Baltimore. The I.I.I. was a key source for this April 28 on-air segment.
The I.I.I.’s Bob Hartwig was interviewed by Doni Bloomfield, an insurance reporter for Bloomberg, on the insurance implications of this week’s rioting in Baltimore.
The I.I.I.’s Loretta Worters gave an interview to Hilary Russ of Reuters about the insurance repercussions of the Baltimore riots.
The I.I.I.’s Michael Barry spoke to Tim Grant of The Pittsburgh Post-Gazette about the importance of creating a home inventory, and touted the I.I.I.’s Know Your Stuff tool.
The I.I.I.’s Steven Weisbart explained to Margaret Magnarelli how individual and group disability policies are underwritten and sold. The executive editor of Time Inc.’s Money, Magnarelli is writing the story for All You magazine, another Time Inc. publication.
CAPITOL HILL
There is no evidence any of FEMA’s Write Your Own (WYO) companies committed fraud when adjusting Sandy National Flood Insurance Program (NFIP) claims, FEMA’s Brad Kieserman told a panel of U.S. Senators on Tuesday, April 28 (comment comes at the 3:40 minute mark).
The I.I.I.’s Lynne McChristian was a panelist today (April 29) at a U.S. Treasury Department gathering in D.C. on Climate Resilience and Insurance: Brainstorming Session for Communications Strategy. She discussed industry efforts to communicate about risk and mitigation.
A U.S. House subcommittee held a hearing earlier today (April 29) on The Impact of International Regulatory Standards on the Competitiveness of U.S. Insurers.
A U.S. Senate Banking subcommittee convened yesterday (April 28) to discuss the state of insurance regulation, and will gather tomorrow (April 30) to focus on Examining Insurance Capital Rules and Financial Stability Oversight Council (FSOC) Process.
The National Association of Insurance Commissioners (NAIC), in paid advertisements in The Hill and Politico, urged Congressional support for the FSOC Improvement Act (House Resolution 5180), according to A.M. Best (subscription required).
STATES
Alabama
Rep. Jack Williams (R-Vestavia Hills) wants the state Public Service Commission to regulate transportation network companies (TNCs), a proposal that is being opposed by Birmingham city officials, among others.
Alaska
U.S. District Court Judge Ralph Beistline sentenced a Lake Bluff, Illinois, insurance salesman to two years in federal prison on April 27 after the defendant pled guilty to 10 counts of mail and wire fraud. The victims were postal workers in Alaska.
California
The I.I.I.’s California Issues subcommittee is meeting on Wednesday, June 3, from 9 a.m. to 1 p.m., at the Personal Insurance Federation of California’s office, 1201 K Street, Sacramento. A dial-in number will be provided to those who cannot attend in person.
University of Southern California researchers presented a paper on the Garlock fault, the state’s second largest, to the Seismological Society of America. The purpose is to understand where and when quakes have occurred previously, the Los Angeles Times reported.
The California Earthquake Authority (CEA) announced it will reduce the cost of its earthquake insurance policies by 10 percent, while also broadening the CEA’s deductible and mitigation discount options, effective January 1, 2016.
The I.I.I.’s Hartwig told The Financial Times (subscription required) last weekend that complacency is a major reason so few Californians have earthquake insurance. The story notes the state’s last major quake (Northridge) occurred more than 21 years ago.
Connecticut
Making it optional to purchase uninsured (UI) and underinsured motorist (UIM) coverage has support among some state lawmakers as a way to reduce auto insurance costs. The I.I.I.’s Hartwig is quoted in the Hartford Courant (subscription required) story.
Florida
Governor Rick Scott is expected to sign into law a measure that would allow homeowners to purchase flood insurance coverage equal to what they owe their mortgage lender, effective July 1, 2015. The legislation is Senate Bill 1094.
An EF-1 tornado touched down in the Englewood section of Jacksonville (Duval County) on Saturday night, April 25, causing extensive property damage. Meanwhile, in Ocala (Marion County) on Monday, April 20, an EF-1 tornado damaged about 60 homes.
Four men were arrested on charges they operated a commercial vehicle theft ring in North Fort Myers (Lee County), the NBC affiliate in Fort Myers reports.
Louisiana
Severe storms caused power outages for tens of thousands statewide on Monday, April 27, the same day at least two tornadoes tore through Assumption Parish. One hit near Pierre Part, and the other touched down in Napoleonville.
In a letter to FEMA administrator Craig Fugate, U.S. Senator Bill Cassidy (R-Louisiana) said National Flood Insurance Program (NFIP) policyholders are being asked to pay a $250 surcharge on their primary residence, a fee that should be only $25.
New Jersey
Two Florence (Burlington County) homes, both of which overlook the Delaware River, were evacuated after heavy rains created sinkholes near the residences, according to an ABC Good Morning America segment.
Mississippi
Governor Phil Bryant signed into law the Property Insurance Clarity Act, requiring insurers to report to the Insurance Department—once every three years—premiums collected, and losses paid, by ZIP code. The measure takes effect on October 1, 2015.
Ohio
Columbus-based Jeni’s Splendid Ice Cream’s listeria-related recall of its products has impacted not only the business’ 11 Ohio stores but 10 others nationwide. A Washington state ice cream maker did not ship any of its products for 34 days last year after a comparable incident.
Oklahoma
Researchers could be a few years away from developing long-range forecasts for tornadoes, comparable to what is done today for hurricanes, according to Harold Brooks, a scientist at the federal government’s Norman-based National Severe Storms Laboratory.
SOCIAL MEDIA REPORT
The death toll from the Nepal earthquake now exceeds 5,500, according to this CNN article. Meanwhile, Insurance Journal says a risk modeling firm projects Nepal’s economic losses could top $2 billion, little of it covered by insurance. The state-owned LIC (Life Insurance Corporation) Nepal says it will settle claims quickly, and that it has the financial resources to pay them. Earthquake survivors have turned to social media to let loved ones know they are safe. Facebook and Google, for example, have developed apps designed to connect people during a disaster. The Red Cross has been updating people via social about where they can donate to Nepal’s relief efforts. TIME magazine did the same thing by compiling this list.
The Baltimore riots have also been a major topic this week in social. Most are discussing the property damage caused by the rioters, and the Daily Mail reported how one woman watched as her uninsured store burned down. Others are concerned the city’s rioting will lead to increased insurance rates for Baltimore’s businesses and motorists. In what is believed to be a first for major league baseball, the Baltimore Orioles and the Chicago White Sox played a game today (April 29) without any fans in the stands at Camden Yards.
The festivities surrounding the Saturday, May 2, Floyd Mayweather v. Manny Pacquiao boxing match and next Tuesday’s Cinco de Mayo, has prompted the I.I.I. to promote—on all of its platforms—its social host liability content. The I.I.I. is reminding consumers about the dangers of drunk driving, and the importance of being a responsible party host.
The I.I.I. is launching a new promotion on Pinterest to get everyone at the I.I.I., and elsewhere, involved in social media. Pin-a-Day May, as the name suggests, involves posting a new pin on one of the I.I.I.’s Pinterest boards every day of the month. From celebrating holidays to famous individuals and their accomplishments, Pin-a-Day May will have something for everybody. Look for more news and updates on the I.I.I.’s Facebook, Twitter, and G+ pages, or go straight to the I.I.I.’s Pinterest board.
MEDIA MATTERS
Kim Cross has published What Stands in a Storm (Atria Books), chronicling the aftermath of the deadly April 27, 2011, tornadoes in Alabama. Cross is delivering a talk and signing her book on Saturday, May 23, at 2 p.m., in Huntsville, AL.
Fox Business Network (FBN) is announcing soon a new weekday line-up for its 6 to 9 a.m., ET, time slot. The on-air changes will occur after Friday, May 29, the final day of FBN’s live simulcast of Don Imus’s radio show.
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
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