SYNOPSIS ALL INDUSTRY CONFERENCE CALL February 22, 2012

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, February 29, please email Mike Barry at Michaelb@iii.org

 

The I.I.I. offered a spirited response on Friday, February 17, to the CFA report, which was headlined The Insurance Industry’s Incredible Disappearing Weather Catastrophe Risk: How Insurers Have Shifted Risk and Costs Associated with Weather Catastrophes To Consumers and Taxpayers.  The Hartford Courant and The Insurance Journal covered the arguments on both sides. The Palm Beach (FL) Post’s Charles Elmore is readying a detailed article for the weekend of February 25-26 that will touch on the issues raised by the I.I.I. and the CFA. Elmore’s story will likely include a chart illustrating Florida property insurer premiums collected and claims paid, as well as loss ratio data, as calculated by the National Association of Insurance Commissioners (NAIC) for the years 2004-2010. Since the call, the I.I.I.’s Bob Hartwig offered Elmore an economic analysis of these same figures.

The Consumer Federation of America’s second news release on the topic was issued on Tuesday, February 21, and mentions the I.I.I. prominently. The I.I.I.’s Loretta Worters prepared CFA-related talking points for internal I.I.I. use in the event reporters chose to revisit the issue after the dueling CFA-I.I.I. news releases of Friday, February 17.   

Hertz, the nation’s second largest rental car company, took the unusual step after the National Highway Traffic Safety Administration (NHTSA) investigated allegations that car rental companies had provided their customers with cars that were recalled by manufacturers, but not repaired, according to this Tuesday, February 21, USA Today article.

The Consumer Price Index (CPI) for auto insurance premiums rose 3.1 percent between January 2011-January 2012, according to the U.S. Labor Department. Meanwhile, the February 14, 2012, edition of Auto Insurance Report (AIP) found that, while the average household’s personal auto expenditure fell by less than 1 percent (0.5 percent) in 2009, the average family income’s declined by 3.6 percent. The 2009 numbers reversed a long-term trend in which the percentage of household income spent on auto insurance had been declining, AIP determined.

Consumer Trends in Personal Lines Insurance: Preparing for Tomorrow’s Market is available for purchase from Conning Research & Consulting by calling (888) 707-1177, or by visiting the company’s website at www.conningresearch.com. Details on the study were offered in this Tuesday, February 21, news release.

“The mid-Mississippi and upper Ohio valleys are among the zones that may get hit more frequently by severe weather this year [2012],” according to State College, Pennsylvania-based meteorologist Meghan Evans. “Missouri, Illinois, Indiana and Michigan are included in this zone,” Evans writes. Her article was posted at accuweather.com on Wednesday, February 22.

The I.I.I.’s Jeanne Salvatore taped an interview with New York City’s ABC affiliate on how consumers can save on their auto and homeowners insurance premiums. The segment is scheduled to air on Friday evening, February 24….Salvatore briefed a member of Nancy Grace’s staff at Headline News (HLN) on children’s life insurance policies in advance of a story HLN was preparing for their Tuesday, February 21, prime-time broadcast on a Maine case involving the disappearance of a 20-month-old child….The I.I.I.’s Worters gave a live radio interview on dog bite liability issues to a Pittsburgh news radio station, KDKA-AM, 1020 on Wednesday afternoon, February 22….The I.I.I.’s Mike Barry explained on Wednesday, February 22, to a writer at CBS’s Blue Bloods that New York State-licensed insurers will generally pay out on a life insurance policy, even if the policyholder commits suicide, as long as the policy has been in effect for at least two years, and the premiums are paid up….Salvatore worked with Sue Shellenbarger, a senior writer and ‘Work & Family’ columnist at The Wall Street Journal, on a piece Shellenbarger is preparing on how senior citizen drivers can stay safe on the road.

 

The White House and the Treasury Department released a report on Wednesday, February 22, that called for reducing the corporate tax rate to 28 percent.

 

Alabama Rep. Jo Bonner (R-Mobile) issued a statement on Monday, February 20, applauding the U.S. House’s creation of a Gulf Coast Restoration Trust Fund in the aftermath of 2010’s Deepwater Horizon oil spill.

The U.S. Geological Survey offered details of the Tuesday, February 21, 3.9 magnitude earthquake, which hit southeastern Missouri. It occurred at 3:58 a.m. and the  epicenter of the quake was near the town of East Prairie, Missouri, roughly midway between St. Louis and Memphis. The temblor was felt in as many as nine states, the Associated Press reported.

Texas
The Texas Comptroller of Public Accounts has issued a solicitation notice on behalf of the Texas Department of Insurance (TDI) for an “organizational analysis of the Texas Windstorm Insurance Association.” Responses to the TDI’s request for proposals are due no later than Thursday, March 15, 2012.

Louisiana
The Louisiana Citizens board of directors convened on Wednesday, February 22, an indication the board may be ready to settle a multi-million dollar class-action judgment that is pending against Citizens. This next-day article in the Times-Picayune confirmed that is the case.

Louisiana motorists caught driving without auto insurance could have their cars “booted,” instead of impounded, if House Bill 118 were to become law. The New Orleans Times-Picayune examined Rep. Henry Burns’ (R-Haughton) legislation in a Friday, February 17, news story.

Alabama
The Alabama House of Representatives voted, 92-0, on Tuesday, February 21, for a ban on texting while driving in Alabama, according to this same-day online story in The Birmingham News. House Bill 2 says anyone texting while operating a vehicle on a public road or highway in Alabama would face a fine of $25 for a first conviction, $50 for a second and $75 for each subsequent conviction.

Florida
The Wall Street Journal editorial board praised Florida Governor Rick Scott for moving to reduce the overall exposure of the Citizens Property Insurance Corporation prior to the start of the 2012 hurricane season. The editorial appeared in the WSJ’sSaturday, February 18, edition (subscription required).

An I.I.I. chart listing the most expensive Florida hurricanes in history, as defined by claims payouts, appeared alongside this Sunday, February 19, Tampa Bay Times story on how election-year concerns about higher homeowners insurance premiums have prompted lawmakers to hold off on making too many major reforms to Citizens’ operations in 2012.

The I.I.I.’s Lynne McChristian had an editorial published in the Tallahassee Democrat on Monday, February 20. It explained why all Floridians have a financial stake in the future of Citizens Property Insurance Corporation and the Florida Hurricane Catastrophe Fund.

Virginia
The Washington Post reported on Thursday, February 16, that, since 2006, nine out of every 10 Virginians has experienced at least one extreme weather event. The online article was pegged to a new report from Environment America.

The I.I.I.’s Claire Wilkinson offered an analysis of the Environment America report in her Terms + Conditions blog on Tuesday, February 21.

 

Governor Daniel Malloy and Insurance Commissioner Thomas Leonardi want to attract captive insurance companies to the state as part of a larger effort to boost the industry’s financial fortunes, according to this Tuesday, February 21, Associated Press article. The story includes a quote from the I.I.I.’s Hartwig.

The topic of extreme weather appeared prominently again this week in social media, mostly in connection to the report released last week by Environment America. This buzz is also picking up on the Friday, February 17, I.I.I. news release, U.S. Insurers Have Paid Billions of Dollars in Catastrophe Claims over the Past Two Decades. Journalists and insurance agents are talking about both of these topics on Twitter and blogs.     

 

The I.I.I. tweet of the week goes to the Tuesday, February 21, news release entitled, When Renewing Your Auto Insurance Policy, Understanding All of Your Coverage Options Could Save You Money. This story is very popular on Twitter and is being shared by consumer experts and insurance companies.

 

A popularly shared item on Facebook is the I.I.I.’s information on homeowners insurance and the six questions to ask when shopping for a homeowners policy. This content is popular with insurance and real estate agents. It is also being posted on several blogs.

 

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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