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, February 17, please email me at michaelb@iii.org.
I.I.I. REBUTS CONSUMER FEDERATION OF AMERICA’S (CFA) LATEST ATTACK ON AN AUTO INSURANCE RATING CRITERION
The I.I.I.’s James Lynch gave numerous interviews (New Jersey’s Record, Florida’s News-Press) and statements (Seattle’s KOMO Radio, Property Casualty 360) after the CFA alleged renters generally pay more for auto insurance than homeowners.
P/C INSURERS PROFITABILITY GREW IN FIRST NINE MONTHS OF 2015
Insurers’ overall profitability grew 1.2 percentage points, to 8.8 percent from 7.6 percent the previous year, as measured by the rate of return on average policyholders’ surplus, according to ISO and PCI.
THE U.S.’s P/C CARRIER EMPLOYMENT REMAINED STABLE LAST YEAR WHILE THE INSURANCE AGENT/BROKER SEGMENT SAW JOB GAINS
According to federal data, property/casualty (P/C) carrier employment stood nationally at 515,800 as of December 2015, about where it was in October 2013, while the U.S. agent/broker segment was up 3.6 percent, to 774,800.
STORIES IN THE WORKS
The Wall Street Journal’s Theo Francis is examining how directors & officers policies cover shareholder litigation costs.
The I.I.I.’s Steve Weisbart is conducting an on-the-record phone interview with CBS’s 60 Minutes on Friday, February 12, regarding life insurer handling of unclaimed life insurance policies.
The San Jose Mercury News’ Joe Rodriguez is in the early stages of writing about www.valchoice.com, a website where consumers can compare auto insurers.
CAPITOL HILL
Wisconsin Insurance Commissioner Ted Nickel is in line to become the National Association of Insurance Commissioners’ (NAIC) president in 2017. Andy Beal is the NAIC’s acting CEO.
U.S. traffic fatalities were up 9.3 percent in the first nine months of 2015 from a year earlier, according to the federal government.
Five million vehicles may be impacted by Continental Automotive System’s announcement that a defect in the components it provides to airbags could cause them to deploy either inadvertently or not at all.
STATES
Alabama
State lawmakers in Hawaii, New Hampshire, and New York, as well as county legislators in Los Angeles, CA, county, are considering measures to require gun owners to maintain liability insurance or face a fine of up to $10,000.
Four were arrested for allegedly staging structure fires, automobile accidents, acts of vandalism and personal injury accidents to commit insurance fraud, the Department of Insurance announced.
Arizona
Ms. Leslie Hess has been named interim director of the state’s Department of Insurance. She was most recently Oxford Life Insurance Company’s director of compliance and its corporate secretary.
California
Santa Ana winds prompted red flag wildfire warnings this week in the southern part of the state.
Porter Ranch residents who were displaced by a natural gas leak have more time to return to their homes once the well is plugged under an agreement between Los Angeles officials and the Southern California Gas Company.
If Insurance Commissioner Dave Jones wants to require insurer disclosure of their investments in thermal coal, he will need to comply with the California Administrative Procedure Act’s rulemaking provisions, one law firm believes.
Florida
The Cabinet has posted the credentials its seeking in the state’s next Insurance Commissioner, and publicly lists those who have applied to date for the position. Resumes will be accepted through Friday, March 11.
Proposed laws aimed at curbing assignment of benefits are showing signs of stalling for a fourth straight year, according to this South Florida Sun-Sentinel article.
Eight tornadoes touched down in January, twice what the state averages in that month. There were two tornado-caused fatalities in Duette (Manatee County) on Sunday, January 17—the state’s first since 2012.
Citizens Property Insurance Corporation customers will receive this month a Citizens ID card along with their policy declaration packets. The wallet-sized card will include claims hotline and customer care phone numbers.
The Tampa Bay Times will begin printing The Tampa Tribune. A Florida Trend article said it is not unusual for one newspaper to print a rival’s paper in the same market.
Kansas
Buildings and water mains owned by the city of Wichita incurred more than $100,000 in damage from two earthquakes last month but Wichita’s earthquake insurance policy deductible is $250,000.
Kentucky
Brian Maynard is the state’s new Insurance Commissioner.
Louisiana
The state’s Office of Debt Recovery has collected more than $5 million since mid-December after mailing 1.2 million letters to motorists alerting them that they were driving without auto insurance.
The president approved federal aid for seven parishes—Concordia, Plaquemines, Pointe Coupee, St. Landry, St. Mary, Terrebonne, and West Feliciana—hit by flooding between December 28, 2015, and February 1, 2016.
New Jersey
The city of Hoboken may lose Sandy related federal funding because of opposition to the construction of sea walls aimed at protecting the waterfront community, according the New York Times.
New York
A federal agents’ raid of the former Manhattan office of 29-year-old Alexander Chatfield Burns may yield information about his extensive insurance industry dealings, the Wall Street Journal reports.
The I.I.I. issued a same-day media advisory about the potential insurance implications of a fatal crane collapse in Lower Manhattan on Friday morning, February 5.
North Carolina
Insurance Commissioner Wayne Goodwin told Asheville’s ABC affiliate he did not think state lawmakers would mandate the licensing of auto body repair shops in its current session.
Texas
Governmental agencies and not-for-profits in 20-plus counties are eligible for federal funds if their properties incurred damage because of severe weather between December 26, 2015, and January 21, 2016.
SOCIAL MEDIA REPORT
The CFA Report regarding higher auto rates for renters is receiving a fair amount of social media attention. Several real estate and mortgage professionals, as well as consumer protection groups and individual consumers, shared the CFA’s findings with their social audiences via Twitter.
New York City Mayor Bill de Blasio announced new measures on crane safety following the fatal crane collapse in lower Manhattan. NewsBeat Social, a digital video news agency, provided a quick video recap of the crane accident on its YouTube Channel. The footage includes a cellphone video clip that captured the 600-foot tall crane crashing down onto the street.
A New York Times article on the strong opposition to a flood fortification plan by Hoboken residents included an interactive graphic showing how sea walls around the town might have stopped Sandy’s floods.
MEDIA MATTERS
Ian Mader was appointed Florida news editor for the Associated Press. He will be based in Miami and starts his new job on Monday, March 22.
Allison Wisk and Liam Dillon are joining the Los Angeles Times’ Sacramento bureau. Both will cover the state’s government and California politics.
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.
