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 June 22, please email Mike Barry at michaelb@iii.org.
NBC’S TODAY SHOW LOOKING INTO DISSATISFIED HOMEOWNERS CLAIMANTS UNDER THE GUISE OF A CONSUMER SEGMENT
NBC producer Robert Powell (212-664-1957) contacted the I.I.I.’s Jeanne Salvatore and cited a 2007 Bloomberg Markets cover story (‘The Insurance Hoax’) during the conversation but it is unclear where NBC is going with this.
FEDERAL GOVERNMENT DATA SEES SLIGHT UPTICK IN COST OF AUTO, HOMEOWNERS INSURANCE
U.S. auto insurance premiums rose 3.8 percent between May 2010 and May 2011, and homeowners rates are up 1.4 percent within the same time frame: The U.S. Bureau of Labor Statistics’ (BLS) Consumer Price Index analysis can be found in the BLS’s Wednesday, June 15, news release.
JULY 2011 EDITION OF CONSUMER REPORTS SAYS ‘AFFINITY RELATIONSHIPS’ MAY NOT RESULT IN BETTER INSURANCE BUYS
Affinity relationships, in which an individual buys insurance through an association, provide insurers with a ready market that can cut their sales costs: But insurance rates must be actuarially justified, Consumer Reports states, in its July 2011 edition, so association members do not always get the lowest prices. The I.I.I.’s Steve Weisbart and Mike Barry, neither of whom are quoted in the piece, spoke with California-based CR reporter Jeff Blyskal for this story in April 2011, and mentioned to the group that it was in the works at that time.
FOX BUSINESS NETWORK (FBN) WEBSITE POSTS PIECE: ‘WHY DOES EVERYONE HATE NO-FAULT CAR INSURANCE?’
Originally written by an Insurance.com reporter, FBN gave the article a much wider audience: The I.I.I.’s Barry was among the industry sources quoted in Barbara Marquand’s article, which was posted on the Fox Business Network’s website this week and assesses why no-fault auto premiums are rising in states such as Florida, Michigan and New York.
ARIZONA’S WILDFIRES ARE NOW THE WORST IN THE STATE’S HISTORY
The Wallow Fire was one-third contained as of Friday, June 17: But 32 homes and four rental cabins were destroyed by wildfires that have now burned across 760 square miles in Arizona, according to this Associated Press article.
NEW MEXICO WILDFIRE BLAZES NEAR THAT STATE’S BORDER WITH COLORADO
Albuquerque Journal says wildfire started near Raton, New Mexico, on Sunday, June 12: It has now spread over 6,000 acres, “threatening homes and the city [Raton] watershed and continuing to block I-25 travel at the border of New Mexico and Colorado,” according to this front page article in the paper’s Tuesday, June 14, edition.
NATIONAL MEDIA ATTENTION GIVEN TO FLOOD THREATENING HAMBURG, IOWA
Closer to home, The Des Moines Register has been tracking the situation: The Register’s latest article on the Missouri River, and the threat it poses to this Iowa community, is here.
NEW ORLEANS-BASED FEDERAL JUDGE MUST SIGN OFF ON $55 MILLION CHINESE DRYWALL SETTLEMENT
Judge Eldon Fallon must approve an accord reached by a Florida-based drywall supplier: The Associated Press filed a story on this development on Tuesday, June 14.
SOUTH FLORIDA SUN-SENTINEL SAYS SEVEN HOMEOWNERS INSURERS ARE SEEKING SUBSTIAL PREMIUM RATE HIKES
Six of the seven pending applications before the Office of Insurance Regulation are for double-digit percentage increases: The South Florida Sun-Sentinel piece on this development was posted on Monday, June 13, and notes that the filings were made after Governor Rick Scott signed into law Senate Bill 408, a major property insurance reform bill.
MISSISSIPPI SUPREME COURT HEARS ARGUMENTS ON CONSTITUTIONALITY OF STATE’S $1 MILLION NONECONOMIC DAMAGES CAP
Federal court requests ruling from state Supreme Court in case of Mississippi woman who sued Sears after she was involved in a crash with one of the company’s vans. A federal jury in the state found Sears liable for the woman’s injuries and awarded $4 million in damages, including $2.2 million for noneconomic damages, according to this Tuesday, June 14, Clarion Ledger article. The federal judge reduced the noneconomic damages to $1 million in compliance with the cap enacted into law by the Mississippi state Legislature. At issue in the case is whether the Legislature exceeded its authority when it passed the law and whether the law violates the constitutional right to have a jury decide a case, including damages.
TEXAS INSURANCE COMMISSIONER APPOINTS NEW MEMBER TO TWIA BOARD
Commissioner Geeslin’s choice to serve through 2014: Ron Lawson, Vice President, Industry Relations, Republic Insurance. was named by the head of the Texas Department of Insurance to the Texas Windstorm Insurance Association’s (TWIA) board of directors. The TWIA board’s next meeting is scheduled for Tuesday, June 28, in Galveston, Texas and the agenda has been posted.
NEW YORK GETTING NEW LIQUIDATION BUREAU CHIEF; BRONX DISTRICT ATTORNEY ANNOUNCES NO-FAULT FRAUD ARRESTS
NY state Assemblyman Jonathan Bing is leaving state Legislature to head up New York’s Liquidation Bureau (NYLB): Governor Andrew Cuomo made the announcement about his choice to oversee the NYLB on Wednesday, June 8. Bing’s immediate predecessor, Dennis Hayes, is going to take a senior position at the New York State Insurance Fund.
Bronx district attorney Robert Johnson charges 16 individuals with committing no-fault auto insurance fraud: DA Johnson’s news release was issued on Monday, June 13.
I.I.I. RELEASE PICKED UP BY PENNSYLVANIA MEDIA AFTER 13-YEAR-OLD BOY IS KILLED BY LIGHTNING STRIKE
Radio PA tapes interview with Lightning Protection Institute on common lightning myths: This I.I.I. news release prompted Radio PA to run a story pegged to the tragic death of a 13-year-old in Lancaster County, Pennsylvania on Thursday, June 9.
NORTH CAROLINA LIGHTNING STRIKE MAY HAVE STARTED WILDFIRE THAT HAS NOW BURNED 31,000 ACRES
The fire in the Alligator River National Wildlife Refuge (Dare County) started it on May 5: The Greensboro News & Record offered details by posting this Associated Press story.
CHICAGO SUN-TIMES ANALYZES DEMISE OF ILLINOIS WORKERS COMPENSATION REFORM PROPOSAL
The bill needed 60 yes votes in the Illinois House to go to the governor’s desk but the measure received only 55 yes votes: The final House tally was 55-39, with 19 lawmakers voting present, according to this Sun-Times article.
D.C. CITY COUNCIL CONFIRMS MAYOR’S APPOINTMENT OF NEW INSURANCE COMMISSIONER
Commissioner William White, appointed in February 2011, is officially the Commissioner of D.C.’s Department of Insurance, Securities and Banking (DISB): Commissioner White was Mayor Vincent Gray’s choice to lead the DISB, and the Council vote on his nomination was unanimous, this Tuesday, June 7, news release states.
SOCIAL MEDIA REPORT
–Ben Berkowitz of Reuters sent a tweet that read, “Insurers and brokers say their phones are ringing off the hook for "cyberinsurance" in the wake of Sony and Citi hacks.” The recent string of sensational hacker attacks is driving companies to seek cyberinsurance worth hundreds of millions of dollars, even though many policies can still leave them exposed to claims.
–Another tweet from Berkowitz states that, “Florida homeowners with tainted Chinese drywall will get $55 million in a settlement deal, partly funded by AIG and Hanover.”
–Julie Patel of the Sun Sentinel tweets, “Florida home insurers request rate hikes” which links to a story about seven home insurers who have asked for statewide rate hikes since Gov. Rick Scott signed a sweeping property insurance bill into law on May 17. Since mid-May, some insurers have asked to raise rates specifically for the sinkhole portion of their rates but they say they plan to keep statewide average rates flat by providing discounts to policyholders who refuse sinkhole coverage.
–The I.I.I.’s June 2news release, “Having the Right Business Insurance Is Key to Survival When There Is a Hurricane, Tornado or Other Disaster,” is enjoying some tweets and Facebook sharing as the overall theme of “disaster preparedness” is the top trending topic right now. Along with this are Facebook shares by insurance groups/companies of the I.I.I.’s Know Your Stuff software, which is being promoted as free and Web-based and a great way to take a home inventory.
–The recently released I.I.I. podcast about common Lightning Myths and how to stay safe is also gaining attention. This project was undertaken in association with the Lightning Protection Institute and the federal National Oceanic and Atmospheric Administration (NOAA) and is receiving attention from insurers who are sharing it with their customers via Facebook and 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
For an I.I.I. Blog Search, click here.
