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, July 22, please email Mike Barry at michaelb@iii.org.
U.S. Labor Department reports price of auto insurance rose 4.7 percent in past year:
The consumer price index (CPI) for auto insurance rose 4.7 percent between June 2008-June 2009, with hospital services (+6.7 percent) and motor vehicle body work (+4.5 percent) appearing to be the biggest cost drivers. The CPI numbers are from the U.S. Department of Labor.
Weather Channel’s ‘Wake Up with Al’ debuts on Monday, July 20:
The new program will air live on weekdays from 6-7 am, ET, starting on Monday, July 20, according to a Tuesday, July 14, posting at TVNewser.com. The 60-minute show will be co-hosted by Stephanie Abrams in Atlanta and Al Roker in New York City. ‘Wake Up with Al’ will then re-air at 10 a.m., ET ( 7 a.m. for the West Coast). The Atlanta-based producer is going to be Mike Jenkins (email: mjenkins@weather.com). Nick Palladino (email: npalladino@weather.com) is the program’s New York City-based producer. There was a Monday, July 13, press release on the Jenkins and Palladino appointments.
Trade groups ask Congress to exclude all lines of insurance from proposed Consumer Financial Protection Agency:
The American Insurance Association (AIA), the National Association of Mutual Insurance Companies (NAMIC) and Property Casualty Insurers Association of America (PCI) were among the signatories to a Wednesday, July 15, letter to the chairmen and ranking members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Committee on Financial Services. The correspondence was cited in a Thursday, July 16, Washington Post article on the various criticisms being leveled against the Obama administration’s financial regulatory reform plans.
Federal government wants to assess earthquake risk before allowing northern California energy project to proceed:
The U.S. Departments of Energy and Interior announced on Monday, July 13, that a project by AltaRock Energy—to extract geothermal energy by fracturing bedrock miles underground on federal land in northern California—has been suspended until a scientific review determines whether the work could set off dangerous earthquakes, according to a story in the Tuesday, July 14, edition of the New York Times. The Times acknowledged that the Sacramento Bee had the story first. The site in question is about 50 miles north of San Francisco. AltaRock Energy’s response to the Times article is here.
Miami-based home builder acknowledges Chinese drywall problems in Florida:
Lennar Corporation has confirmed that 400 homes it built in Florida have problems with odors and corrosion because of defective Chinese drywall, according to a Tuesday, July 14, article in the Wall Street Journal (subscription required). The company will spend $39.8 million on repairs, which involve gutting homes to replace drywall, wiring and other fixtures, the WSJ reports. Lennar is seeking reimbursement from insurers ($20.7 million of the $39.8 million, according to the story), subcontractors and others to repair and investigate the problem.
ABC’s 20/20 looking at potential dangers of highway road reflectors:
ABC 20/20 producer Ann Sorkowitz (Phone: 212-456-2064, email: ann.d.sorkowitz@abc.com) is doing research on the frequency and insurance repercussions of cases in which highway road reflectors disintegrate and subsequently cause an insured loss. Chicago’s CBS affiliate, WBBM-TV, looked into the issue in August 2008 because metal reflectors were proving to be more dangerous than plastic ones.
Dow Jones revisiting issue of homeowner non-renewals in coastal states; prepping piece on insurance for hybrid cars:
Dow Jones reporter Jilian Mincer has received guidance from the I.I.I. on what a homeowner should do if they receive a non-renewal notice, as well as the I.I.I.’s latest look at the residual property insurance market in the U.S.; DJ reporter Lavonne Kuykendall is exploring the insurance needs of motorists who buy hybrid cars.
New York City’s ABC affiliate looking at the insurance repercussions of power surges:
Those interested in offering insights into the issue for an upcoming story being developed by WABC-TV’s consumer affairs unit should contact me at jeannes@iii.org.
U.S. House Financial Services convening on July 17 (regulatory reform) and July 21 (systemic risk):
The Friday, July 17, 11 a.m. hearing is on ‘Industry Perspectives on the Obama administration’s Financial Regulatory Reform Proposals’ whereas the Tuesday, July 21, 2 p.m. session will explore ‘Systemic Risk: Are Some Institutions Too Big to Fail and, If So, What Should We Do About It?’
Michigan state lawmakers introduce ‘bad faith’ bills; cite 2007 Bloomberg Markets magazine piece:
State Representative Mike Huckleberry’s (D-Greenville) Monday, July 13, press conference was accompanied by this press release. The lawmaker’s statement is sourced in part to September 2007’s Bloomberg Markets cover story. The event generated an Associated Press article that was picked up by media outlets statewide.
North Carolina Beach Plan reform initiative progresses:
House Bill 1305 passed the North Carolina House by a vote of 89-27 on Tuesday, July 14, according to an Associated Press story. The bill now goes to the state Senate. PCI reported that it has done paid radio advertising to highlight the importance of the issue, such as this 30-second spot.
Florida’s insurance commissioner has ‘gut feeling’ State Farm may stay:
Commissioner Kevin McCarty told the South Florida Sun-Sentinel on Thursday, July 9, that State Farm may eventually decide to continue writing homeowners policies in Florida, even though State Farm is currently negotiating the terms of its departure from the state’s homeowners market with Florida’s Office of Insurance Regulation. The next hearing on that issue is scheduled for October 12-13, 2009 in Tallahassee, FL, according to a statement from the state’s Division of Administrative Hearings.
I.I.I.’s president addressing annual convention of Latin American Association of Insurance Agencies (LAAIA):
I.I.I. president Bob Hartwig is going to be the LAAIA’s keynote luncheon speaker on Friday, July 17, at the Westin Hotel, Hollywood, Florida. The I.I.I. is planning to generate media coverage for his remarks through issuing a media advisory; Elianne Gonzalez, the I.I.I.’s Hispanic Press Officer, will accompany Hartwig to coordinate media interviews. His topic: ‘The Financial Crisis and the Future of the Property & Casualty Insurance Industry: Challenges amid the Global Economic Storm’.
Atlanta Journal-Constitution’s request to review guaranty association’s records is rebuffed:
“A powerful behind-the-scenes insurance association controlled by Insurance Commissioner John Oxendine has refused a request by The Atlanta Journal-Constitution to review its records,” states the opening sentence of a Sunday, July 12, AJC article. The back story is that the Georgia Life and Health Insurance Guaranty Association rejected an AJC document request, saying the association is not subject to the state’s Open Records Act. Commissioner Oxendine said he believes Georgia’s attorney general ought to make the final determination on what association materials ought to be made public, if any.
Front page story in New Orleans Times-Picayune says Microsoft’s founder is focusing on combating hurricanes:
Bill Gates proposes slowing hurricanes by pumping cold, deep-ocean water in their paths from barges, according to a front page article in the Wednesday, July 15, Times-Picayune. USA Today spoke with hurricane experts about the proposal, and a number of them saw merit to the concept, although a few others noted the major logistical hurdles to such a massive undertaking.
Mississippi Insurance Department’s Catastrophe Preparedness and Insurance Forum likely to generate media coverage:
The July 16-17 Forum is being held at the Imperial Palace in Biloxi, MS, and is expected to draw prominent figures, such as Mississippi Governor Haley Barbour and Rep. Gene Taylor (D-Mississippi).
California’s State Compensation Insurance Fund (SCIF) votes against selling half its workers compensation policies:
Governor Arnold Schwarzenegger’s bid to raise upwards of $1 billion through the sale to the private-sector of about 50 percent of the fund’s book of business was formally rejected by the SCIF’s governing body on Friday, July 10, according to an article in the San Francisco Chronicle. SCIF offers an analysis of the situation.
New York drivers can receive auto insurance discounts by taking online defensive driving courses:
WCBS-AM, one of New York City’s all-news radio stations, was among the many media outlets to run stories pegged to a Thursday, July 9, New York State Insurance Department press release.
New York Post touts selection of actor Chris Noth as national spokesperson for Life Insurance Awareness Month (LIAM):
Sex in the City star Chris Noth’s willingness to promote LIAM in September 2009, and his family’s ties to the insurance industry, were mentioned in the NY Post’s Page Six column on Monday, July 13.
McGraw-Hill to sell Business Week:
The Wall Street Journal (subscription requested) offered the rationale for McGraw-Hill’s decision in a Tuesday, July 14, article.
Conning Research sees ‘modest improvement’ in P/C market beginning in 2011:
Results for the property/casualty (P/C) industry over the next few years will be driven by the 2009 recession, mixed insurance premium pricing momentum, and modestly deteriorating underwriting results, according to the Property/Casualty Industry Forecast by Conning Research, which was released on Monday, July 13. In addition, Conning sees a trend of moderate deterioration in the combined ratio through 2010 and modest improvement beginning in 2011, “excluding unusual catastrophe experience or further turmoil in financial guaranty lines.” The study is available for purchase by calling 888-707-1177.
A.M, Best issues 2009 Special Report: U.S. Wildfires – Catastrophe Review. Expanding Wildfire Season Adds to Insurers’ Burden:
The current season has already generated May 2009’s Jesusita Fire in Santa Barbara Country, California, notes an 11-page study (subscription required), released on Monday, July 13. “Insurers face the prospect of further property losses from wildfires in 2009, with persistent drought conditions raising the potential for wildfire activity across parts of California, Nevada and the Northwest. Severe wildfire events tend to add to claims costs beyond direct property losses,” the A.M. Best report states.
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