To recap the issues raised during Wednesday’s conference call, here are some of the key media stories, and the messages we’re conveying.
Bloomberg Markets magazine story on life insurers’ use of retained asset accounts generates additional stories:
- Wall Street Journal’sLeslie Scism and Dow Jones’ Erik Holm reported that state regulators are reviewing the way some life insurers pay death benefits, through retained asset accounts (RAAs), which are similar to money market investments, and that these insurers may be required to change the practice.
- The Kansas City Star reported on August 3 that the Missouri and Kansas insurance departments were checking for complaints over the practice. Bob Hanson, a Kansas Insurance Department spokesman, said the department had been looking into the use of these accounts and gathering information but had received no complaints thus far.
- Bloomberg Television interviewed NAIC President Cline, who said that improved disclosure requirements are necessary and that the NAIC would be ramping up its consumer-education initiatives.
- An article by Huffington Post’s Charles Green, noted that the insurance industry was getting the “Shirley Sherrod” treatment by the news industry and that a number of politicians had grossly over-reacted to the way some life insurers pay death benefits. The commentary pointed out that most of the stories on this issue play on the emotional themes of dead soldiers and financial greed, but in reality the issue has been manufactured by irresponsible press and government officials.
- The I.I.I.’s Dr. Steve Weisbart, the lead spokesperson on the issue, developed a fact sheet on Retained Asset Accounts. The I.I.I. also posted information on its blog Terms & Conditions and tweeted about the availability of the fact sheet.
I.I.I.’s Hartwig provides background to Biloxi Sun-Herald on five-year anniversary of Hurricane Katrina:
Dr.Hartwig provided information to Anita Lee about lessons learned since Hurricane Katrina and the state of the insurance market today. In addition, the I.I.I. sent out a press release about the insurance lessons learned from Hurricane Katrina, which provided an opportunity to promote the I.I.I.’s white paper and fact sheet on the subject, all part of the institute’s communications strategy on the five-year anniversary of the disaster.Centers for Disease Control and Prevention reports Americans are continuing to become fatter:
According to this study, reported in The New York Times,obesity rates are now 30 percent or higher in nine states, compared with only three states in 2007. The latest figures indicate that 2.4 million people in the U.S. became obese during the last two years and that 72.5 million, or 26.7 percent of the population, are seriously overweight.Forecasters say there is a 75 percent chance of a major hurricane hitting U.S. Coast:
Colorado State University’s William Gray and Philip Klotzbach said conditions for storms are ripe and they are sticking by an early Atlantic hurricane forecast of 18 named storms, 10 hurricanes and five major hurricanes for the season, according to the August 4 National Underwriter.Waters charged with ethics violations:
U.S. Congresswoman Maxine Waters (D-CA) joined Rep. Charlie Rangel (D-NY) in being charged with ethics violations and is awaiting a public trial by the House ethics committee. Charges against Waters involve her efforts to set up a meeting with former Treasury Secretary Henry Paulson in 2008 to push for federal bailout money on behalf of a bank that her husband is heavily invested in. Washington Post columnist Ruth Marcus and blogger Doug Feaver wrote about the situation on August 5.
State of Alabama to purchase reinsurance:
The state of Alabama is purchasing a reinsurance policy from Swiss Re to help cover its deductibles in the event the state is hit with large losses from a major hurricane, according to Business Insurance magazine.Orlando Sentinel’s Mike Thomas blogged on an editorial board visit by Alex Sink:
Florida’s Democratic gubernatorial candidate visited the editorial board of the newspaper. In his blog, Mike Thomas said that Sink failed to provide specific answers to questions about how private capital could be used to lower the risk to Florida taxpayers without allowing rates to go up.
Kansas Insurance Commissioner wins GOP primary challenge:
Commissioner Sandy Praeger (R-Lawrence), won Tuesday’s Republican primary, defeating El Dorado insurance agent and tea party favorite Dave Powell in the GOP balloting with 63 percent of the vote. She will face no opposition in November. This was widely reported in the Kansas media, including the Kansas City Star.
Motorists overconfident when driving on rural roads, survey finds:
Motorists are more likely to drive on rural roads while they are drunk or distracted because they consider driving in the countryside to be safer, according to a survey from a Federal Highway Administration funded center, reported in USA Today. But more than half of highway fatalities take place on rural roads, researchers noted.
Louisiana looks at Michigan agent for next CEO of Citizens:
The Town Talk reported that Insurance Commissioner Jim Donelon told the committee that Robertson has cut the number of policies at Michigan’s insurer of last resort from 240,000 to about 30,000 in the 20 years he has been there. Robertson told the committee Monday that he would like to reduce that number, but did not specify a goal.The most stolen car in the country is the Cadillac Escalade, HLDI reports:
The luxury auto (2007 to 2009 models) is the most frequently stolen car in the U.S., according to the Highway Loss Data Institute. This has been widely reported in the media, including the Detroit Free Press. For the past six years, the Escalade has ranked the highest in overall theft losses.USA Today’s Block continues outreach to industry on hurricane issues:
Sandy Block (sblock@usatoday.com), who writes the personal finance column Your Money for USA Today, is doing a story on insurance deductibles and the hurricane season. It is part of a broader story Sandy has been working for several weeks regarding homeowners insurance and vacant homes. The article is likely to run Tuesday, August 10.
Hartford Courant looks at insurance implications of deadly shooting at beer distributor:
I.I.I. provided information about workers compensation as well as workplace violence insurance to Business Reporter Matt Sturdevant. I.I.I. also reached out to the Wall Street Journal, Associated Press and National Underwriter on the issue and tweeted on it. His story appeared on August 7.
Treasury and Risk magazine focuses on environmental pollution coverage:
Reporter Dave Lyndoff is looking for information on the percentage of companies that are buying pollution insurance, what is happening in that market and the impact, if any, from the BP oil spill. He can be reached at 215-793-9390 or 267-909-5317 (cell).
MSN.com looking at insurance implications of bedbugs:
Christopher Solomon (solochris@gmail.com) with MSN.com is doing a story about bedbugs—the cost and insurance issues.TheStreet.com prepping story on insurance implications of auto theft:
Althea Chang, staff writer with TheStreet (Althea.Chang@thestreet.com), is doing an article about the most commonly stolen cars and the effect on auto insurance.
The Nest looking to do home and rental story:
Douglas Quenqua (doug.quenqua@gmail.com) of the nest is doing a story on homeowners and renters insurance.Russian Weekly magazine looking at the issue of fire prevention:
Kirill Zhurenkov (kzhurenkov@mail.ru), news section editor with the Russian weekly magazine Ogoniok is doing a story on the role of insurers in preventing fire damage.New York Times incorrectly says drywall covered under homeowners insurance:
The New York Times’ Bob Tedeschi wrote an article on August 1 incorrectly indicating that drywall problems are covered under a homeowners insurance policy. Jeanne Salvatore reached out to Tedeschi who said he would correct the story.
Lisa Brown signs on as business reporter for St. Louis Post-Dispatch.
Brown was previously a reporter for the St. Louis Business Journal. Brown can be followed on Twitter at http://twitter.com/lisabrownstl. To find out more, contact 314-340-8000.
Big Money ceases publication:
Business news site The Big Money, in operation since 2008, ceased publication. Sister site Slate will absorb its content and Editor Jim Ledbetterwill join Slate as a business staff writer, the magazine reported on July 30.
Colleen McCarthy, associate editor at Business Insurance leaving magazine August 6:
McCarthy has accepted a position as Communications Director with Willis North America. She can be reached through her personal email account at: cmc2_mccarthy@hotmail.com until she starts at Willis in a few weeks.
NASA holds media teleconference on hurricanes:
NASA held a media teleconference on Thursday, August 5, at 3 p.m. EDT to discuss its upcoming airborne research campaign into hurricane behavior. The teleconference panelists included NASA’s Ramesh Kakar, weather focus area lead; Scott Braun, hurricane modeler/research meteorologist; Gerald Heymsfield, cloud radar expert/research meteorologist; and Ed Zipser, professor of meteorology, University of Utah, Salt Lake City.
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
