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, June 24, please email Mike Barry at michaelb@iii.org.
Obama administration calls for Office of National Insurance (ONI); creation of Consumer Financial Protection Agency (CFPA):
The U.S. Treasury Department released Financial Regulatory Reform: A New Foundation on Wednesday, June 17. The plan proposes creating an Office of National Insurance within the U.S. Treasury Department and a separate, new governmental entity, to be known as the Consumer Financial Protection Agency. The CFPA would have “the authority and accountability to make sure that consumer protection regulations are written fairly and enforced vigorously.” The Wall Street Journal (subscription required) covered the issue on the front page of its Thursday, June 18, edition.
Wall Street Journal looks at the group which crafted the White House’s regulatory reform plan:
Five top Obama administration officials, including Deputy Treasury Secretary Neal Wolin, the former president and chief operating officer of the Hartford Financial Services Group’s property/casualty operations, were profiled in this Tuesday, June 16, Wall Street Journal (subscription required) article.
I.I.I.’s Industry Blog offers insights on regulatory reform plan:
Claire Wilkinson, the I.I.I.’s vice president, global issues, blogged at Terms + Conditions about the Obama administration’s proposal on Wednesday, June 17.
Bloomberg News wire filing story on insured losses due to lightning:
Bloomberg’s Cordell Eddings (e-mail: ceddings@bloomberg.net), a New York City-based insurance reporter, is writing a story on lightning and insured losses in conjunction with National Lightning Safety Awareness Week (June 21-27, 2009). The I.I.I. estimates that in 2008, for the first time ever, insured losses from lightning to a home were more than $1 billion, a 13.1 percent increase from 2007 and a 44.9 percent increase from where the insured loss number for this type of event stood as of 2004.
U.S. House of Representatives subcommittee holds hearing on systemic risk and insurance:
The U.S. House Financial Services committee’s Capital Markets, Insurance and Government-Sponsored Enterprises subcommittee met on Tuesday, June 16, to discuss the potential systemic risks posed by the insurance industry. More on the hearing, including an archived webcast, can be found here.
U.S. House subcommittee revisits issue of workers’ compensation for civilian contractors in war zones:
The U.S. House Oversight and Government Reform committee’s Domestic Policy subcommittee convened a Thursday, June 18, public hearing entitled, “After Injury, the Battle Begins: Evaluating Workers’ Compensation for Civilian Contractors in War Zones.” Compliance with the Defense Base Act, a law requiring all U.S. contractors and subcontractors working overseas to secure workers’ compensation insurance for their employees, was also on the agenda. ABC’s 20/20 program examined the issue in April 2009.
Indiana has a new insurance commissioner:
Carol Cutter, the Indiana Department of Insurance’s chief deputy commissioner, will become the state’s insurance commissioner effective Monday, June 22. Cutter will succeed outgoing Commissioner Jim Atterholt, who held the post since 2005 and is joining the Indiana Utility Regulatory Commission, according to this Tuesday, June 16, press release from Indiana Governor Mitch Daniels.
Alabama’s Mobile Press-Register is critical of Alfa missive to lawmakers on coastal property insurance issue:
The Mobile-Press Register published a news story on Saturday, June 13, and an editorial on Wednesday, June 17, about an Alfa Insurance official who sent a controversial email to Alabama’s Republican state lawmakers on Thursday, June 11. Alfa was a major supporter of state Senator Paul Sanford (R-Huntsville), the paper notes, who won a special election this month to fill the seat vacated by former state Senator Parker Griffith. Griffith was elected to the U.S. House of Representatives in November 2008.
Minnesota grill fire damages 80 apartments; generates media coverage in the Twin Cities market:
A charcoal grill, situated on the third floor deck of an apartment complex in St. Louis Park, Minnesota, was cited as the cause of a fire which damaged 80 apartments, according to a story broadcast last weekend on Minneapolis-St. Paul’s NBC affiliate, KARE-TV.
National Public Radio (NPR) interviews I.I.I.’s Hartwig about Florida’s reinsurance market:
NPR Marketplace’s Dan Gretch taped this week an interview with I.I.I. president Bob Hartwig about Florida reinsurance market trends and the precarious financial condition of the Florida Hurricane Catastrophe Fund for a story which is expected to air soon.
Florida’s governor signs bill banning imposition of municipal accident response fees:
The new law prohibits local governments in Florida from billing motorists for emergency response services rendered at the scene of an automobile accident. It goes into effect on Wednesday, July 1, 2009, according to this Tuesday, June 16, press release issued by the Property Casualty Insurers Association of America.
Governor Crist weighing whether to sign property insurance deregulatory measure:
This Tuesday, June 16, Miami Herald blog summarizes the viewpoints of those supporting and opposing House Bill 1171, which is now on Governor Crist’s desk. Orlando Sentinel columnist Mike Thomas also offered his opinion on the matter in this Tuesday, June 16, commentary.
Atlanta Journal-Constitution (AJC) continues its scrutiny of insurance commissioner’s political contributions:
Georgia’s state Ethics Commission may not issue for weeks its advisory opinion on the legality of $120,000 in political contributions made to the 2010 gubernatorial campaign of Georgia Insurance Commissioner John Oxendine, according to this Wednesday, June 17, AJC article. The topic was on the AJC’s agenda on Sunday, June 14, too.
Georgia’s homeowner’s insurance rates are up 5% to 11%; auto premiums rose 2.4%, AJC reports:
The paper’s in-depth analysis of homeowner’s and auto insurance premium rate trends in the state appeared on Sunday, June 14.
Federal judge in New Orleans to hear Chinese drywall lawsuits:
New Orleans this week became the focal point for Chinese drywall litigation, after a panel of federal judges decided to move discovery and pre-trial hearings for these cases to that city, according to the following Times-Picayune blog item. Federal judge Eldon Fallon will be at the center of the action, according to this Monday, June 15, article in the Sarasota Herald Tribune.
Associated Press focuses on policyholders who dropped coverage to save money, and then regretted having done so:
‘During recession, consumers should keep insurance,’ was the headline of this AP story, which hit the wire on Tuesday, June 16.
Mississippi wind pool implementing new rules for homeowner, business policy discounts effective July 1, 2009:
The Mississippi Windstorm Underwriting Association’s (MWUA) residential and business policyholders may be able to pay less for property insurance coverage if their structures score highly on the Building Code Effectiveness Grading Schedule (BCEGS). The Biloxi Sun Herald examined the issue in its Saturday, June 13 edition.
Competitive Enterprise Institute (CEI) op-ed says Congressional reinsurance bill could hurt Mississippi homeowners:
Eli Lehrer, who tracks insurance markets for the CEI, had an editorial published in the Biloxi Sun Herald on Thursday, June 11, about how Rep. Richard Neal (D-Massachusetts) is sponsoring legislation which could disrupt the Mississippi insurance and reinsurance markets.
New York’s State Senate unable to act on any legislation amid political turmoil:
The current state legislative session is scheduled to end on Monday, June 22, and nothing has been voted upon since two Democrats decided to join forces with 30 GOP state Senators, thereby flipping what had been a 32-30 Democratic majority into a 32-30 Republican edge. One of the Democrats rejoined this week his Democratic colleagues, leaving the chamber deadlocked at 31-31.
Money magazine and Los Angeles Times have insurance-related stories in the works:
Money magazine columnist Dan Kadlec (Phone: 914-861-2094, email: dankadlec@dankadlec.com) is looking at umbrella policy exclusions. His story will likely be pegged to insured losses caused by teenagers for which the parents are held liable….Money senior writer Lisa Gibbs (Phone: 954-587-7595, email: lisa_gibbs@moneymail.com) is doing research for an article that would help consumers understand what they need to know about an insurer’s financial health. The piece is about solvency but also the potential need for policyholders to change strategies/practices as insurers recover from the current recession and adapt to a changing regulatory environment…The Los Angeles Times’ Jason Felch (email: jason.felch@latimes) is focusing on a contractor who was fined $250,000 by California Insurance Commissioner Steven Poizner but continues to operate without having paid the state’s monetary penalty as yet, the reporter says. The company in question received complaints from consumers who hired them in the aftermath of California’s wildfires, Felch added.
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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