To recap the issues raised during Wednesday’s conference call, here are some of the key media stories, and the messages we’re conveying.
If there is a subject you would like to see addressed on Wednesday, August 19, please email Mike Barry at Michaelb@iii.org.
Wall Street Journal says “hurricane season heats up, belatedly”:
The first named storm is expected by appear by mid-August, marking a late start to the 2009 Atlantic hurricane season, according to a Tuesday, August 11, Wall Street Journal (subscription required) article. The story quotes I.I.I. president Bob Hartwig and cites I.I.I. historical information on hurricane-caused insured losses. Dennis Feltgen, a spokesman for the National Hurricane Center, told the WSJ that the first named storm usually occurs each year by July 10. Five named storms, including hurricanes Bertha and Dolly, have appeared before the second week of August 2008, with Dolly making landfall in south Texas on July 23, reporter Russell Gold writes. The initial period of inactivity in the current hurricane season is the longest since 1992, when Hurricane Andrew was named on August 17, the WSJ reports.
I.I.I. president to discuss risk-based insurance pricing for upcoming ABC television network news program:
On Monday, August 17, the I.I.I.’s Hartwig is taping an interview with ABC 20/20 co-host John Stossel for a 20/20 segment scheduled to air on Friday, August 21. He will discuss risk-based pricing in the context of property/casualty insurance but Stossel’s primary focus is on the potential problems that could arise if the healthcare system sets aside risk-based pricing and moves entirely to a community-rated structure, wherein all policyholders pay the same amount.
Fox Business Network (FBN) seeking I.I.I. president’s insights on impact of health insurance debate, if any, on P/C insurers:
Hartwig is tentatively scheduled to appear on FBN on Monday, August 17, for a live interview on this topic, between 11 a.m. and noon, ET. The FBN hosts during that hour are Dagen McDowell and Brian Sullivan.
Weather Channel marking its Hurricane Week (August 10-14) with special program:
Meteorologist Stephanie Abrams hosts Weather Proof, which is airing on Wednesday, August 12, at 8 p.m., ET. Promotional videos show Abrams and her staff testing the ability of human beings, mobile homes, cars and boats to withstand hurricane-force winds.
I.I.I. insurance industry blog chronicles renewed interest in H1N1 virus:
Claire Wilkinson, the I.I.I.’s vice president, Global Issues, offers details on recent governmental and media H1N1 reports in a Wednesday, August 12, Terms and Conditions post. ABC’s World News Tonight reported on its Friday, August 7, broadcast that an H1N1 vaccine may not be widely available in the U.S. until mid-October 2009.
USA Today chart illustrates how crashes affect auto insurance premiums:
Based on a 2008 insurance.com study, the chart (see attached) was published on the paper’s front page on Wednesday, August 12, and shows how much average annual auto insurance premiums rise for each at-fault traffic accident. Starting at $1,387 for no accidents, premiums rise to $2,806 for four accidents, Ohio-based insurance.com found. According to the study, the first accident leads to a 22 percent premium rate increase (to $1,689 per annum in premiums from $1,387).
Felicia’s power wanes but storm system may prompt Hawaii state lawmakers to reassess raiding Hurricane Fund:
The National Weather Service says Felicia, now considered a weakening tropical depression, is likely to deliver only moderate showers in the next couple of days as it passes over Maui County and Oahu, according to a Tuesday, August 11, Honolulu Advertiser story. A week earlier, the same newspaper reported that Governor Linda Lingle and state lawmakers were “being tempted to use the $185 million in the state’s hurricane relief fund” to balance Hawaii’s $786 million budget deficit.
North Carolina Beach Plan reform bill passes state Legislature; sent to Governor Perdue:
The legislation, House Bill 1305, is aimed at bolstering the finances of the North Carolina Insurance Underwriting Association, commonly referred to as the Beach Plan, the state-run property insurer of last resort in 18 counties. The Coastal Property Insurance Pool, as the Beach Plan is to be known in the future, would have a cap on the assessments it could levy on private insurance companies and reduce to $750,000 from $1.5 million the maximum coverage limit on the property insurance policies it offered. The News & Observer published the story on Friday, August 7, and the Richmond County Daily Journal offered an analysis on Monday, August 10. The Property Casualty Insurers Association of America (PCI) has extensive information on the topic on its Web site.
Florida Times-Union article says state is “one active hurricane season away” from fiscal doom:
“If a major hurricane hit a large metropolitan area today, the state could be forced to boost taxes on insurance policies and take out billions in debt to cover shortfalls in taxpayer-backed insurance plans. Some doomsday scenarios include bankruptcy,” writes reporter Brandon Larrabee, in a front page story from the Sunday, August 9, Florida Times-Union.
Orlando Sentinel worries of “forgotten lessons” on Hurricane Charley anniversary:
A Thursday, August 6, FEMA statement and the Sunday, August 9, Orlando Sentinel edition assessed Hurricane Charley’s aftermath. Charley was a Category 4 storm when it made landfall near Punta Gorda, Florida, on August 13, 2004.
Miami Herald reports Florida may revamp its homeowners insurance premium discount rules:
More than 700,000 Floridians who strengthened their properties against hurricane damage could see their homeowners insurance wind-mitigation discounts reduced, according to a Saturday, August 8, Miami Herald story. The discounts, which lowered policyholder premiums by about 13 percent, on average, started in 2003 but became popular when insurance rates increased after a series of hurricanes struck Florida in 2004 and 2005, the article states. Homeowners who made improvements to get the discounts needed to have the work certified by an architect, engineer or building inspector. But a number of insurance companies and state legislators are concerned about bogus certifications and some homes are being now being inspected again to make sure the work was actually done. “We want to be sure that the discounts we’re offering are right,” State Representative Bryan Nelson, (R-Apopka), an insurance agent who sponsored the law mandating the review, told reporter Bea Garcia.
Fort Myers, Florida TV reporter examining auto insurance fraud issue in southwestern part of state:
The I.I.I. has provided facts and statistics on the issue to TV reporter Kelly Imrick but she may also welcome input from industry sources on this issue. Her email is kelly.imrick@abc-7.com, and Imrick’s office number is 239-313-1441. In a note to the I.I.I., Imrick said she has been hearing anecdotal evidence of vehicles being dumped into lakes, ponds and canals, and then reported stolen, to collect auto insurance monies illegally.
Alabama state lawmakers hear from Mississippi insurance commissioner on coastal property insurance issues:
The Wednesday, August 12, edition of the Mobile-Press Register reported on Mississippi insurance commissioner Michael Chaney’s visit this week to Alabama.
Louisiana Citizens board expected to vote August 13 on a 9.2 percent rate hike; mulls 5 percent assessment on all property policies:
If approved, the new Citizens property insurance premiums rates would go into effect on December 1, 2009, for new policies and February 1, 2010, for policies that are being renewed, according to an article in the Wednesday, August 12, New Orleans Times-Picayune. The assessments, if enacted, would help Louisiana pay off $1 billion in bonds Citizens issued in the wake of the 2005 hurricanes to stay solvent, the article notes.
New Jersey can implement revised Personal Injury Protection (PIP) medical fee schedule:
The New Jersey Superior Court’s Appellate Division in Trenton upheld a New Jersey Department of Banking and Insurance revision of the Personal Injury Protection (PIP) medical fee schedule. A group of healthcare providers challenged the schedule in 2007. National Underwriter filed this story on the matter on Monday, August 10. The American Insurance Association applauded the decision.
Buffalo News prepping piece on life insurance and annuity sales practices in New York State:
Pegged to a New York State Insurance Department public hearing on the topic, held in Buffalo earlier this month, Buffalo News business reporter Jonathan Epstein (Phone: 716-849-4478, email: jepstein@buffnews.com) is focusing on whether senior citizens are particularly vulnerable to sales pitches for products which are unsuitable for them. He also interviewed I.I.I. chief economist Steve Weisbart on the pros and cons of purchasing life insurance and annuities at certain life stages. The article could be published as early as the weekend of August 15-16.
Newsday reports an additional 25,000 Long Island homeowners fall into flood zone under redrawn FEMA maps:
Most of the homes reclassified to fall within a flood zone are situated on Nassau County’s South Shore, according to a Wednesday, August 12, article in Newsday. More than 4,500 Suffolk County homeowners were told their properties are no longer in flood-prone areas, the story notes.
California Fair Access to Insurance Requirements (FAIR) Plan’s ability to deal with wildfire exposure is topic at August 19, August 25 public hearings:
California Insurance Commissioner Steven Poizner is hosting two hearings to assess the FAIR Plan’s standards and rates “to determine if they are reasonable and adequate to deal with wildfire exposure.” The first will be held on Wednesday, August 19, at 1 p.m., in Los Angeles and the other is set for Tuesday, August 25, at 6:30 p.m., in Santa Barbara. The details are here.
Michigan’s Automobile and Home Insurance Consumer Advocate hosts ‘Insurance 101’ cable TV program:
Butch Hollowell, who holds that title, is the host of Insurance 101 with Butch Hollowell, which is distributed to more than 80 cable stations throughout Michigan. Hollowell’s guest this month is Teri Morante, director of public affairs for Michigan-based Citizens Insurance, a company of The Hanover Insurance Group. Morante will walk viewers through the claims filing process, according to a Wednesday, August 5, Michigan Department of Energy, Labor & Economic Growth press release. New ‘Insurance 101’ shows are produced monthly. Previous episodes can be viewed by visiting the Insurance Consumer Advocate’s Web site.
Media Moves:
Eric Anderson (518-454-5323) has been promoted to senior business editor at the Times Union in Albany, N.Y. He replaces Marlene Kennedy, who has left the paper. Anderson joined the paper as the deputy business editor in July 2005. Prior to that, he served as the business editor of The Daily Gazette in Schenectady, N.Y…Small Change, a blog hosted on washingtonpost.com, recently ran its final post. The site provided advice for adjusting to the new economic reality in light of the recession. The blog was written by Ylan Mui (202-334-7320), and Nancy Trejos (202-334-6731). Mui and Trejos can be reached on Twitter at twitter.com/YlanMui and twitter.com/nancytrejos, respectively…Up and Running, hosted on Entrepreneur.com, primarily covers growing start-ups. The site posts business planning ideas, current affairs, startup advice, financing ideas and mistakes and stories about start-ups. Tim Berry blogs for the site. Megan Barnett has taken over as the deputy editor of Minyanville, a Web site that educates consumers about their finances.. She most recently served as deputy editor of Portfolio.com and before that, wrote for SmartMoney, U.S. News & World Report and The Industry Standard. For further details, call 212-991-6200…Ben Stein will no longer be writing his column for The New York Times due to a conflict of interest as Stein has become a commercial spokesman for a financial services company, FreeScore. His column, Everybody’s Business, has been running in the Sunday Business section since April 2004. He is still a columnist for Newsmax and Yahoo! Finance.
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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