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 16, please email Michael Barry at michaelb@iii.org.
California insurance commissioner calls for insurer divestment from companies with any ties to Iran:
Commissioner Steve Poizner’s 2010 gubernatorial campaign site offers details on the his divestment proposal, and some of the national media coverage it has received (CNBC, Associated Press).
I.I.I. issues release on insurers who are ‘going green’ during U.N. Climate Change conference:
More than 600 innovative, environmentally friendly products and services are now offered by 244 insurers, reinsurers, brokers and insurance organizations in 29 states, the Insurance Information Institute’s Monday, December 14, press release states. Insurers who receive media inquiries on this issue are welcome to send them to I.I.I. The U.N. conference in Copenhagen ends on Friday, December 18. In a special Monday, December 7, section dedicated to environmental issues, the Wall Street Journal (subscription required) highlighted the benefits consumers who ‘go green’ can receive from their insurance companies. Insurers have in recent years begun offering premium discounts and new products intended to encourage their policyholders to use energy efficiently and take advantage of alternative energy sources that do less harm to the environment. Premium discounts are provided to owners of hybrid and electric vehicles, for example, and to homeowners who install solar panels.
NAIC action boosts life insurers’ capital cushion, WSJ reports:
In approving an accounting change related to income taxes, the National Association of Insurance Commissioners (NAIC) effectively increased the cumulative year-end 2009 capital on life insurers’ balance sheets by more than $11 billion, according to a Tuesday, December 8, Wall Street Journal article (subscription required). The change was the largest of the capital relief measures proposed by the American Council of Life Insurers (ACLI), the WSJ story states.
Florida’s lieutenant governor addresses Chinese drywall rally:
More than 300 people attended a Saturday, December 5, rally in North Fort Myers, Florida, to organize a fight against toxic drywall, a Sunday, December 6, Fort Myers News-Press story reports. Florida Lieutenant Governor Jeff Kottkamp, who has filed a lawsuit over the allegedly defective material in his North Fort Myers house, urged homeowners to pressure elected officials at the state and national levels to address the problem. Chinese drywall is being blamed for corroding air conditioning coils, appliances, jewelry and plumbing, as well as causing homeowner health problems, the article notes.
Lakeland (FL) Ledger publishes front page story on plight of landlord with defective drywall:
The owner of a single-family home in Lake Wales, Florida told the Ledger in a Tuesday, December 8, article that he had tenants move out of his property because of the sulfur odor emanating from what he believes is defective Chinese drywall. The story also talks about Polk County’s overall exposure to the issue as well as the response of Lennar, a publicly traded building company, to the crisis.
Insurance Law Center attorney says homeowners insurers may have to cover drywall-related losses:
Charles Miller told the NAIC’s Catastrophe Insurance Working Group during its Winter National Meeting about personal lines insurers’ potential vulnerability to defective Chinese drywall claims, saying losses due to this product might not fall under standard pollution exclusions, National Underwriter reported (subscription required), in a Tuesday, December 8, article.
Florida’s Insurance Consumer Advocate wants additional powers:
Sean Shaw is asking the state Legislature to give him the ability to intervene in Department of Administrative Hearing appeals, and greater authority to review insurer rate and form applications. Toward this end, Shaw has given language describing the Consumer Advocate office’s expanded role to the House and Senate insurance committees for potential inclusion in the property insurance package that is expected to be developed during the 2010 legislative session.
Florida lawmakers re-introduce Consumer Choice Bill; measure was vetoed in previous state legislative session:
Florida state Representative Bill Proctor and state Senator Mike Bennett have filed HB 447, a bill that would limit the state’s authority to control private property insurance rates. The legislative effort is part of a broader plan to provide competition for the state-subsidized Citizens Property Insurance Company. A similar deregulation bill aimed in part at keeping State Farm as a property insurer in the state passed the Florida Legislature earlier this year. Governor Charlie Crist vetoed the measure. The Miami Herald had a Wednesday, December 9, article on the issue.
Louisiana panel says dissolving Citizens would streamline state government:
This front page story in the Wednesday, December 9, Baton Rouge Advocate talks about the Commission on Streamlining Government’s recommendation that Citizens Property Insurance Corporation be dissolved as a way to cut costs in Louisiana state government.
Higher minimum liability requirements could hike premiums for some Louisiana drivers:
The Louisiana state Legislature’s decision to increase the state’s minimum liability limits for auto insurance policyholders goes into effect on January 1, 2010, and could result in higher premiums for about 40 percent of Louisiana motorists, according to a front page article in the Sunday, December 6, Baton Rouge Advocate. The liability limits had not changed in 20-plus years, the story notes.
Louisiana Recovery Authority (LRA) board approves spending $5 million to assist Road Home applicants affected by contaminated drywall:
The LRA issued this Monday, December 7, press release, on the issue, noting that the monies cannot be allocated until the U.S. Department of Housing and Urban Development (HUD) approves the plan.
President nominates David Strickland to head National Highway Transportation Safety Administration (NHTSA):
President Obama has chosen David Strickland to be NHTSA’s next administrator (see final item, on list of Friday, December 4, presidential nominations sent to the U.S. Senate). Strickland currently serves as senior counsel to the U.S. Senate’s subcommittee on Consumer Protection, Product Safety and Insurance, a part of the U.S. Senate Committee on Commerce, Science and Transportation, which has jurisdiction over NHTSA.
TWIA board, consisting of many new faces, to convene on December 16 in Austin:
The Southwestern Insurance Information Service’s (SIIS) home page includes a one-page meeting agenda, as well as the list of appointees to the Texas Windstorm Insurance Association (TWIA) board. The Houston Chronicle filed a story on the TWIA changes in its Wednesday, December 9, edition.
Dallas Morning News says 26 percent of all vehicles on the road in Dallas County are uninsured:
An analysis conducted by the Texas Department of Insurance using data from the new TexasSure vehicle insurance verification program, shows that 22 percent of all vehicles across the state, or 4.1 million cars and trucks, are uninsured, according to a Wednesday, December 9, article in the Dallas Morning News. Twenty-six percent of the vehicles on the road in Dallas County are uninsured, the DMN found. The TexasSure insurance verification program relies on a database containing the names of all insured drivers and their insurers, matched to license plate numbers and VINs. The insurance industry estimates Texas drivers pay nearly $1 billion a year to protect themselves from uninsured motorists.
Massachusetts attorney general secures Democratic nomination for U.S. Senate:
Having easily won a four-candidate primary, AG Martha Coakley is now favored to win the Tuesday, January 19, 2010, general election to succeed the late U.S. Senator, Ted Kennedy. Should Coakley win a U.S. Senate seat, the state Legislature would appoint a new AG, who would then run in November 2010’s statewide election.
New York auto insurance premiums dropped between 2006 and 2007, Daily News reports:
But New York’s auto rates were still third-highest in the nation as of 2007, according to an NAIC analysis. Nonetheless, the average New York driver saw their annual premium drop 2.8 percent, to $1,179, in 2007, as compared to 2006, this Saturday, December 4, New York Daily News story explains. New Jersey, which had the highest premiums in the country for years, fell to the number two spot, at $1,228, with Louisiana moving to the number one spot, at $1,262. Iowa has the lowest average rate, at $620.
PWC study outlines developments expected ‘to reshape the insurance industry:
’ Pricewaterhouse Coopers’ (PWC) 32-page report, Emerging from the Storm: The Day After Tomorrow for Insurance, outlines nine key developments that are expected to reshape the insurance industry, and their strategic implications over the next five years.
A.M. Best report revises downward potential insurer asbestos and environmental liabilities:
A.M. Best dropped the overall figure to $117 billion from $121 billion, with asbestos pegged at $75 billion, and environmental losses at $42 billion. They issued a 12-page report on Monday, December 7.
ABC’s Good Morning, America changing its on-air cast:
The details are in this New York Times article, and the shake-up was set into motion as Diane Sawyer left GMA effective Friday, December 11, for ABC’s World News Tonight, where she will succeed Charlie Gibson starting on Monday, December 21.
Hartford Courant examining teen driving and auto insurance; Bloomberg Business Week exploring distribution model:
Matt Sturdevant, the new Hartford Courant insurance reporter, may incorporate I.I.I. content into his story. The same goes for Nanette Byrnes, a Bloomberg Business Week reporter looking at current consumer trends, and whether they favor insurers who rely on agents, or insurers who are direct writers.
Reuters’ insurance reporter leaving company next month:
Lilla Zuill’s final day on the job is Friday, January 15, a move she is making on her own. Zuill is returning to law school. It is unclear at this point whether Reuters will assign another reporter to the insurance beat.
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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