SYNOPSIS ALL INDUSTRY CONFERENCE CALL January 25, 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 1, please email Mike Barry at Michaelb@iii.org

 

The I.I.I.’s Bob Hartwig’s PowerPoint presentation, delivered late last week, reports there was $380 billion in worldwide economic losses, and $105 billion in insured losses, arising from natural catastrophes globally in 2011. U.S. insured losses totaled $35.9 billion last year and were caused primarily by 171 catastrophe events, the fifth highest year on record.

 

The I.I.I.’s Mike Barry discussed with Kimberly Janeway of Consumer Reports when a homeowners insurance policy might cover damages caused by a broken water or gas line situated on private property. Janeway’s story is pegged to a settlement a service line contractor entered into with three states regarding misleading mailings the contractor sent to prospective customers.

The I.I.I.’s Loretta Worters briefed reporter Ginny Kosola of New York City’s all-news radio station, WEMP-FM, on 1) how to go about insuring jewelry that is given as a Valentine’s Day gift; and 2) how to protect your home from winter-caused losses (e.g., clearing your gutters, coverage issues).

 

Two people were killed and dozens were injured on Sunday, January 22, as multiple tornadoes swept through northern Alabama. Jefferson County, near Birmingham, was hit hardest, according to this next-day story in USA Today. Anywhere from 250 to 300 homes in Alabama were either damaged or destroyed.

The Louisiana Supreme Court will not reconsider a $92.7 million judgment against the state’s insurer of last resort, Citizens Property Insurance Corporation, for the company’s slow handling of Hurricane Katrina claims, according to this Saturday, January 21, Associated Press story. Louisiana Insurance Commissioner Jim Donelon said he will take the case to the U.S. Supreme Court.

Governor Rick Scott endorsed a Personal Injury Protection (PIP) reform proposal backed in Florida’s House at a Wednesday, January 25, rally in Tallahassee, the Miami Herald reported.

WLFA-TV (NBC/Tampa) profiled on its Monday, January 23, evening news program a driver questioning theuse of credit for auto insurance rates. The I.I.I.’s Lynne McChristian was interviewed, and she explained that a good credit record often translates into lower insurance premium rates.

 

The Sarasota Herald Tribune published a front-page story this week on reports that surplus lines insurance companies could soon take tens of thousands of policies out of the state-run Citizens Property Insurance Corporation. Legislation to do just that has passed several committees in both chambers, the article notes.

Eleanor Kitzman, a Houston native who has been Texas’ insurance commissioner for the past five months, is being closely watched by consumer groups, lawmakers and insurers as she reviews the first major rate filings during her time in office, according to this Sunday, January 22, Dallas Morning News print edition story (subscription required).

An auto insurance pricing initiative has qualified for the Tuesday, November 6, 2012 statewide ballot, according to California’s Secretary of State. Consumer Watchdog says the measure is comparable to one that California voters rejected in 2010.

 

The Sacramento Bee reported on Tuesday, January 24, that $31,000 was the average pay-out to the 971 State Compensation Insurance Fund (SCIF) employees who left the agency voluntarily effective December 31, 2011. Another 705 SCIF jobs could be eliminated in 2012, the story notes.

Thousands of Nevada residents were evacuated, and more than 20 homes destroyed, when wildfires spread through hundreds of acres south of Reno, Nevada, according to this Friday, January 20, story, which was broadcast on CBS This Morning.

New Jersey’s private-sector insurers will pay out approximately $915 million for Hurricane Irene-caused losses and another $150 million for damage from the late October 2011 snowstorm, according to this detailed Sunday, January 22, article in the Star-Ledger, which includes quotes from the I.I.I.’s Hartwig and data from ISO, the Jersey City-based risk advisory group.

Ben Lawsky, superintendent of the state’s Department of Financial Services, has sought information from New York property insurers to find out more about their force-place homeowners insurance arrangements, according to this story in the Sunday, January 22, print edition of The New York Times.

Attorney General Martha Coakley opposes the Massachusetts FAIR Plan’s request for a 7 percent premium rate hike and issued a news release explaining her position on Thursday, January 19, the same day the Insurance Commissioner held a public hearing in Boston on the FAIR Plan proposal.

This week finds the social media space continuing discussions that were started last week. First, bloggers who are predicting a continued trend of severe weather in 2012 comparable to what the U.S. experienced in 2011 are pointing to the recent tornadoes in Alabama, Arkansas and Mississippi as a sign that this may be the case. A mix of insurance agents and experts used the southern state tornadoes as a way to encourage people to be properly insured.  

 

Second, the talk of the importance of having a home inventory continues with insurance agents via Twitter and Facebook promoting I.I.I.’s free home inventory app. This tool, which utilizes the convenience of the iPhone to photograph and store an inventory, is being referenced as an effective way to prepare for potential disasters. 

 

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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