To recap the issues raised during this week’s conference call, here are the key media stories we discussed, and the messages we’re conveying.
If there is a subject you would like to see addressed on Wednesday, March 18, please email me at michaelb@iii.org.
I.I.I.’s SALVATORE APPEARS ON THE WEATHER CHANNEL’S (TWC) WAKE UP WITH AL TO DISCUSS WINTER-CAUSED INSURANCE LOSSES
Salvatore’s live interview with Al Roker aired on Thursday, March 5, and reached nearly 275,000 viewers nationally, according to the program’s Nielsen ratings.
AON BENFIELD STUDY SAYS INSURERS FACE A MINIMUM $1 BILLION PAYOUT FOLLOWING FEBRUARY 2015’s U.S. WINTER WEATHER LOSSES
The report chronicled five separate periods of heavy snow, frigid cold, freezing rain and ice that impacted tens of millions of Americans in multiple states during the month, causing 72 fatalities. Boston registered its snowiest, and second-coldest, February on record.
FEMA VOWS TO TIGHTEN OVERSIGHT OF THE ENGINEERING FIRMS WORKING ON NATIONAL FLOOD INSURANCE PROGRAM (NFIP) CLAIMS
FEMA-approved engineering firms will be the only entities allowed to conduct NFIP policyholder damage inspections, according to Newsday (subscription required). “Previously, that discretion rested with private insurance companies hired to process the claims,” the article stated.
FEDERAL DATA INDICATES U.S. INSURANCE INDUSTRY EMPLOYMENT TRENDS ARE FAVORABLE
In January 2015, on a year-over-year basis, virtually every subsector of insurance industry employment was up, with many subsectors rising solidly. Even life carrier employment, which has generally trended downward, rose. The I.I.I.’s analysis of the numbers is posted online.
STORIES IN THE WORKS
The I.I.I.’s Jeanne Salvatore gave an interview on homeowners insurance coverages issues to Jean Chatzky for her Forbes.com column.
The I.I.I.’s Michael Barry spoke to Paul Basken of The Chronicle of Higher Education regarding the importance of securing earthquake coverage in Oklahoma, a state that had 99 quakes with a magnitude of 3.0 or greater in 2013, according to the U.S. Geological Survey.
The I.I.I.’s Barry told The Boston Globe magazine’s Emeralde Jensen-Roberts about the need to purchase a separate flood policy in order to be covered for flood-caused losses, and discussed self-driving cars and insurance with Marketplace Radio’s Novo Sofa.
CAPITOL HILL
The American Insurance Association (AIA) has contacted the reporters and editors involved in producing ProPublica/National Public Radio’s workers compensation series to challenge some of its findings. The I.I.I. will be doing the same, in writing.
Chile’s recovery from its devastating 2010 earthquake should serve as a model to U.S. policymakers, especially those in California, according to this USA Today op-ed by officials at the Wharton Risk Management Center.
STATES
Alabama
The U.S. Department of Agriculture has awarded $2.9 million to help restore “stream corridors, remove debris, curb erosion problems, and prevent future flooding,” in the municipalities hit hard by the heavy rainfall that struck in late April 2014.
California
Google has launched its Compare Auto Insurance product.
Mercury Insurance Company agreed to pay a $1 million fine for violating state laws governing rating and underwriting practices, and reform its business practices, the Department of Insurance announced. The origins of the case date back to a 2007 market conduct exam.
The U.S. Geological Survey (USGS) has upped—to 7 from 4.7 percent—the likelihood California will be hit by an 8.0-magnitude earthquake, or higher, over the next 30 years.
Florida
The Office of Insurance Regulation announced this week it has approved the transfer of nearly 50,000 residential policies, and 500 commercial policies, from Citizens Property Insurance Corporation to three private companies.
A Tampa Tribune editorial urged a continued push toward a private flood insurance market.
The Miami Herald reported on some high-level staff changes at the Office of Insurance Regulation.
Hawaii
The existing moratorium on the issuance of new Hawaii Property Insurance Association (HPIA) policies in lower Puna (the Big Island’s Hawaii County) may be lifted effective July 1, 2015, the Hawaii Tribune-Herald reports.
FEMA has agreed to provide additional financial assistance to either governmental or private entities who suffered damages because of the Big Island’s lava flow.
Massachusetts
The multiple snowstorms this winter caused nearly $1 billion in lost wages and profits statewide, according to IHS Global Insight. Car dealers and real estate agents were among the hardest hit businesses because many of the storms hit on, or around, weekends.
Missouri
If House Bill (HB) 118 is enacted, it would restore the $350,000 cap on non-economic damages awarded in medical malpractice cases. The measure has passed in the House and may win Senate approval, although it is unclear if Governor Jay Nixon would sign HB 118 into law.
PNC Bank must pay $391 million in compensatory and punitive damages to settle cases involving 2008’s demise of National Prearranged Services, a federal jury ruled.
New York
Equifax, Experian, and TransUnion, the nation’s leading credit reporting agencies, entered into an agreement with Attorney General Eric Schneiderman, agreeing to change the way they resolve consumer disputes and assess a consumer’s credit history due to medical debt.
Indemnity Insurance Corporation, which is in liquidation, is refusing to pay a multi-million dollar judgment against a Manhattan nightclub because the establishment served alcohol after its 4 a.m. closing, thereby invalidating Indemnity’s insurance policy, the New York Post says.
Ms. Tanuja Mohapatra has been appointed Director of Legislative Affairs for the Department of Financial Services.
North Carolina
Insurance Commissioner Wayne Goodwin held a press conference this week with state lawmakers, outlining their legislative priorities; the Raleigh News & Observer briefly summarized what was said. WRAL also covered the proceedings.
Pennsylvania
AMHQ with Sam Champion reported on the city of Pittsburgh’s 72-hour pothole blitz campaign. Potholes are covered under the optional collision portion of a standard auto insurance policy, the I.I.I.’s Salvatore told TWC news director Ioanna Dafermou (Phone: 770-226-2363, email: ioanna.dafermou@weather.com).
South Carolina
Surfside Beach is weighing whether to impose accident response fees on non-residents. If the town council proceeds with this plan, Surfside Beach would retain Greenville-based Innovapad to administer the program. The I.I.I. has an accident response background paper.
Tennessee
The retail and food service industries would most likely opt-out of the state’s workers compensation system, if the main provisions of Senate Bill 0721 and House Bill 0997 were to become law, this Nashville Tennessean article explains.
Texas
State Senator Juan Hinojosa (D-McAllen) and state Representative Todd Hunter (R-Corpus Christi) have introduced Texas Windstorm Insurance Association (TWIA) reform bills which deserve consideration, the editorial board of the Corpus Christi Caller-Times believes.
SOCIAL MEDIA REPORT
Google has launched its much anticipated Compare Auto Insurance Tool. The way the site works: people enter their zip code, answer a few questions, and then select the coverage they’re seeking. Google is providing quotes from 14 auto insurers, and receives a sales commission.
ProPublica and National Public Radio (NPR) have jointly released an investigation into the workers compensation insurance laws enacted across the U.S. over the past decade. Many states are reforming their w/c systems by cutting the benefits paid to injured workers, the report contends. On social, other media outlets have noted the federal Occupational Safety and Health Administration (OSHA) conducted a comparable investigation, and reached conclusions similar to those discussed in the ProPublica/NPR series.
Saturday, March 14, is Pi Day, a date which spells out the first three places of Pi—3.14. 2015’s Pi Day offers a rare, once-in-a-century occasion, with Pi spelled out to ten places—3.141592653– precisely on 3/14/15 at 9:26:53 a.m. To observe this auspicious occasion, I.I.I. has created a fun and informative infographic that introduces readers to “10 Irrational Numbers” about insurance. The infographic can also be downloaded in JPG & PDF formats. For more information, please contact the I.I.I.’s James Ballot at jamesb@iii.org.
MEDIA MATTERS
Verizon’s FiOS has replaced The Weather Channel (TWC) with AccuWeather Network. Verizon characterized the move as a long-term business decision, even though Verizon and TWC were in the midst of working on a new agreement, the New York Post reports.
NBC’s network news division was in turmoil before Brian Williams’s problems emerged, according to an article in the current edition of New York magazine.
The New York Daily News is for sale
The I.I.I.’s Salvatore and Barry are meeting on Tuesday, March 17, with CNBC on-air reporter Mary Thompson and her producer, Karina Frayter, at CNBC’s offices in Englewood Cliffs, New Jersey.
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.
