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, December 9, please email Michael Barry at michaelb@iii.org.
I.I.I.’s Robert Hartwig was asked to testify before the Michigan House Insurance Committee on Thursday, December 3.
In his testimony, Dr. Hartwig said that Michigan drivers will continue to pay more than most Americans for auto insurance until public policymakers address the underlying costs behind this trend. Hartwig noted that the average no-fault auto insurance claim in Michigan rose an astounding 250 percent, to $31,883 in 2007 from $9,103 in 1998, because the “system operates with virtually no checks or balances.” Unlike almost any other state, Michigan has no medical fee schedules, no utilization controls or treatment protocols, and no state insurance fraud bureau to investigate and prosecute fraud and abuse in the no-fault system. I.I.I. developed a news release which can be accessed on the I.I.I. Web site at www.iii.org/PR/Michigan-Auto-Insurance-Testimony-120309/; the full testimony can be accessed at www2.iii.org/Meetings/MITestimony-120309/.
2009 Atlantic hurricane season was calmest in 12 years:
The I.I.I. offered an analysis of the just-concluded season in this Tuesday, December 1, press release as well as in Claire Wilkinson’s Monday, November 30, Terms + Conditions blog entry.
Florida’s lieutenant governor expected to attend Saturday, Dec. 5 defective Chinese drywall rally:
Lieutenant Governor Jeff Kottcamp, who resides in North Fort Myers, Florida and is said to have a home consisting of defective drywall, is scheduled to be at this event, scheduled for Saturday, December 5, 11 a.m. to 2 p.m., at the Shell Factory, North Fort Myers, Florida. Kottcamp, a Republican, is running for Florida attorney general in 2010. In what could be a related development, the Wall Street Journal’s M.P. McQueen received from the I.I.I. a list of the U.S.’s largest commercial lines carriers. McQueen has closely tracked the Chinese drywall story.
South Florida Sun-Sentinel prepping story on impact of State Farm’s potential withdrawal from Florida’s property insurance market:
Reporter Julie Patel spoke with the I.I.I. president Bob Hartwig about Florida property insurance trends for an upcoming story which will also look at the ongoing negotiations between State Farm and Florida’s Office of Insurance Regulation (OIR) on State Farm’s withdrawal plans.
Florida Senator calls for expansion of home weatherization assistance for low-income homeowners:
U.S. Senator George LeMieux (R-Florida) has introduced a bill that would increase home weatherization assistance for low-income homeowners as a means of catastrophic loss abatement. The measure, if enacted, would amend the Energy Conservation and Production Act and won plaudits from the Reinsurance Association of America, according to this Tuesday, December 1, National Underwriter story (subscription required).
NAIC action could increase life insurers’ cumulative capital by at least $11 billion, Wall Street Journal reports:
A National Association of Insurance Commissioners’ (NAIC) proposal would allow insurers to treat more deferred-tax assets as part of their capital reserve. Insurers say this accounting approach will present a more accurate picture of their financial position. The American Council of Life Insurers (ACLI) estimates expansion of deferred-tax assets in 2009 would represent about 4 percent of life insurers’ total capital of $263 billion as of Dec. 31, 2009, according to this November 28-29, 2009 Wall Street Journal article (subscription required).
Fox Business News Channel (FBN) interviews I.I.I. about growth of Florida’s state-sponsored property insurer of last resort:
The I.I.I.’s Jeanne Salvatore gave a live interview to FBN on Tuesday afternoon, December 1, on the role Florida’s Citizen’s Property Insurance Corporation plays in the state’s homeowner’s insurance market, and how a major hurricane could adversely impact Citizen’s finances.
ABC’s Good Morning, America (GMA) examining percentage of Americans with accidental death & dismemberment coverage:
GMA producer Gerry Wagschal, who is putting together a piece for GMA Gets Answers, is focusing on a Florida case involving an AD& D policy. The I.I.I. referred the inquiry to LIMRA but Florida’s OIR put the percentage of Floridians with AD& D coverage at 27 percent, Wagschal told I.I.I.
Federal Insurance Office bill wins approval from U.S. House’s Financial Services committee:
Rep. Paul Kanjorski (D-Pennsylvania), chairman of the House Financial Services subcommittee with oversight over insurance, issued this press release on Wednesday, December 2, elaborating on the latest developments regarding House Resolution 2609.
Massachusetts attorney general is one of top contenders in Dec. 8 U.S. Senate election:
Martha Coakley, Massachusetts’ AG, is one of the leading candidates to succeed the late U.S. Senator Ted Kennedy. Next Tuesday is the state’s Democratic primary election.
Texas attorney general candidate offers harsh critique of insurance industry:
Barbara Ann Radnofsky, a retired Houston attorney who ran unsuccessfully against U.S. Senator Kay Bailey Hutchison in 2006, began laying the groundwork this week to run as a Democrat next year for Texas attorney general. Her brief position paper on insurance is here. The incumbent Texas AG is Greg Abbott, a Republican.
Houston Chronicle explores TWIA claims-handling procedures after Hurricane Ike:
This Wednesday, December 2, Chronicle story offers snippets of internal email correspondence between Texas Windstorm Insurance Association (TWIA) officials after Hurricane Ike hit Texas in September 2008.
Biloxi Sun Herald reports on, editorializes about, State Farm’s premium rate hike:
The Mississippi Insurance Department’s approval of a 19.5 percent homeowner’s insurance rate increase for properties in three coastal counties was covered in this Tuesday, December 1, news article and then discussed in a Wednesday, December 2, editorial.
Two property insurers to reduce their coastal exposure in Alabama:
Allstate and Alfa are reducing their total number of wind policies in Mobile and Baldwin counties over the next 18 months, according to this Wednesday, December 2, Mobile Press-Register story.
New York’s superintendent of insurance offers proposed changes to no-fault insurance claims process:
Superintendent James Wrynn outlined in this Tuesday, November 24, press release proposed changes to New York’s Regulation 68, which governs the state’s no-fault auto insurance claims process. The draft working document is here and the comment period continues through Friday, January 8, 2010.
New York State Assembly insurance committee to review Insurance Department’s proposed budget:
The Albany public hearing, to be held on Thursday, December 3, is expected to draw testimony from insurance industry representatives who are concerned about the growth of sub-allocations, monies which are raised via insurer assessments but used for purposes having little to do with state Insurance Department operations.
New Jersey Supreme Court upholds state Banking and Insurance Department’s new medical provider reimbursement fee schedule:
New Jersey Banking and Insurance Commissioner Neil Jasey issued this statement on Monday, November 23, praising the Supreme Court’s ruling.
Star Ledger (NJ) editorial board lambastes Passaic mayor for plan to bill insurers for essential government services:
The headline of this Wednesday, December 2, editorial gives some insight into where the paper is going with this: ‘Passaic mayor’s silly idea: Tax fires.’
Hartford Courant has appointed a new insurance reporter:
Matthew Sturdevant can be reached at 860-241-3749. He succeeds Diane Levick.
Columbus Dispatch, New York Times, Kiplinger’s Personal Finance and Consumer Reports have insurance stories in the works:
The Columbus Dispatch’s John Futty (email: jfutty@dispatch.com) is looking at the insurance repercussions of vehicle break-ins during the holiday season….New York Times freelancer Dalia Fahmy (email: dalia@daliafahmy.com) is assessing the insurance needs of business owners in the event of a natural disaster….the February 2010 edition of Kiplinger’s Personal Finance is going to include a story on specialty insurance (e.g., jewelry, high-end rugs). The Kiplinger’s reporter is Candice Lee Jones (email: cjones@kiplinger.com)….Consumer Reports’ Alex Kay is prepping a piece on credit-based insurance scoring (email: kayalexandra@gmail.com).
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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