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 25, please email Loretta Worters at lorettaw@iii.org.
I.I.I., PROPUBLICA HAVE DIFFERING VIEWS ON TRENDS IN THE U.S. WORKERS COMPENSATION INSURANCE SYSTEM
The I.I.I.’s Bob Hartwig sent a spirited rebuttal to ProPublica after examining its series on The Demolition of Workers’ Comp. ProPublica responded promptly to the I.I.I.’s correspondence.
FEMA EXPANDS ITS PUBLIC RESPONSE TO THE CONTROVERSY SURROUNDING SOME SANDY FLOOD CLAIMS
FEMA’s Deputy Associate Administrator for Insurance recorded a short video, and the I.I.I.’s Hartwig was quoted in Newsday and by WSHU-FM after FEMA said it wanted more oversight over consulting engineers, and additional claim records from Write Your Own companies.
FEMA REJECTED MORE THAN NINE OUT OF 10 OF THE SANDY FLOOD CLAIM APPEALS IT RECEIVED FROM ONE NEW YORK GROUP, NATIONAL PUBLIC RADIO (NPR) REPORTS
The appeal denial rate was 92 percent for Sandy flood policyholders who worked with the New York Legal Assistance Group. FEMA, for its part, says 15 percent of Sandy flood policyholders who appealed their adjusters’ decision were given additional monies, NPR reports.
CBS’S 60 MINUTES EXPLORES FLAWS IN THE FEDERAL GOVERNMENT’S DEATH MASTER FILE (DMF) SYSTEM
The Social Security Administration’s ability to administer the DMF was scrutinized by CBS on Sunday, March 15, and then again by a U.S. Senate committee the following day.
STORIES IN THE WORKS
The I.I.I.’s Jeanne Salvatore and Michael Barry met on Tuesday, March 17, with CNBC’s on-air reporter Mary Thompson and producer Karina Frayter, in Englewood Cliffs, New Jersey. CNBC wants to hear about new insurance research and products.
The I.I.I.’s Lynne McChristian says the Palm Beach Post’s Charles Elmore is researching a story pegged to a Citizens letter to policyholders, in which they warn of higher assessments if they choose to stay with Citizens, and a major storm were to hit Florida.
The I.I.I.’s Barry discussed with the (Allentown, Pennsylvania) Morning Call’s Paul Muschick the difference between an original equipment manufacturer (OEM) and an aftermarket part. The I.I.I. has a background paper on Generic Auto Crash Parts.
The I.I.I.’s Loretta Worters spoke with The Wall Street Journal’s Leslie Josephs (small business insurance coverage for Ferguson, Missouri-type riots) and Daniel Gilbert (earthquake coverage if the quake’s cause can be linked to hydraulic fracturing).
Business Insurance is readying a special report on Cyber Risk: Security/Regulation for its May 25, 2015 issue.
CAPITOL HILL
A U.S. Senate subcommittee convened this week to discuss the cyber insurance marketplace.
STATES
California
The state Senate is examining whether uninsured(UI)/underinsured (UIM) motorist coverage is meeting consumer needs on Wednesday, March 25, at 1:30 p.m., in Sacramento. The Senate insurance committee’s chair is Senator Richard D. Roth (D-Riverside).
The average home price in the state is $440,000, about two and one-half times the national average, according to a state legislative study released this week. The Wall Street Journal story on the report also said California’s average monthly rent stands at $1,240.
Colorado
Denver’s ABC affiliate, and Colorado Public Radio, aired stories this week pegged to the Insurance Research Council’s report on homeowners insurance claim trends, which found that this state had incurred significant natural disaster-caused damages in recent years.
Kansas
Under a new state law, workers compensation payouts are determined by the sixth, rather than the fourth, edition of the American Medical Association Guides to the Evaluation of Permanent Impairment. Critics say the fourth edition was more generous to injured workers.
Louisiana
David Thomas, the Louisiana Citizens Property Insurance Corporation’s chief executive officer since July 2013, resigned abruptly last week following an executive session of the insurer’s board of directors.
Sedgwick Claims Management Services Inc. was hired to oversee the claims processing and loss prevention services for Louisiana’s self-insurance program.
Maine
The president declared a federal disaster existed in three counties—Androscoggin, Cumberland and York—in the wake of a severe snowstorm and flooding that occurred on January 26-28, 2015, making those municipalities eligible for FEMA financial assistance.
Mississippi
Insurance Commissioner Mike Chaney and the I.I.I.’s Hartwig are among the speakers at the University of Mississippi’s annual Insurance Symposium, being held this week in Oxford.
North Carolina
Russ Dubisky taped an interview this week with Time Warner Cable’s all-news station in Raleigh, discussing on behalf of the Insurance Federation of North Carolina a number of pending state legislative proposals of interest to property insurers.
Oklahoma
David Boren, the University of Oklahoma’s president, served as a board member for Continental Resources, an oil company, while overseeing Oklahoma’s Geological Survey—a potential conflict given the concerns about the link between fracking and earthquakes, Boren’s critics say.
Hydraulic fracturing has led to the growth of so-called man-made earthquakes in the central part of the state, according to sources quoted in this Tulsa World article, which cites a recent paper published in Geophysical Research Letters.
Given there has been no public outcry over earthquake claim denials, Insurance Commissioner John Doak may have overreached when threatening to conduct market exams into how insurers handle quake claims, The Oklahoman’s editorial board wrote.
West Virginia
About 25 Charleston homes were evacuated last Thursday after a landslide occurred on a man-made emergency overrun area at Charleston’s Yaeger Airport. No injuries were reported.
SOCIAL MEDIA REPORT
The devastating cyclone that swept through the south Pacific is a huge topic this week in social media. A number of groups have been calling for a natural disasters insurance fund for the Pacific. Also, the World Bank is looking into a rapid insurance payout to the Government of Vanuatu since the damage there was so severe.
The I.I.I. released a fun and informative infographic before Pi Day (3.14) and it was well received in social media, garnering more than 220 click-throughs from social platforms. The infographic has also been viewed over 1,000 times on the I.I.I.’s website.
Many insurers promoted safety tips for St. Patrick’s Day, Tuesday, March 17. Numerous popular pictures were posted on Twitter to mark the occasion, too, such as this one by a NASA astronaut, showing a green solar flare. For more photos, search the hashtag #StPatricksDay.
FEMA is saying it will invite its 144,000-plus Sandy flood claimants to revisit their cases amid fraud allegations. Many media outlets tweeted about FEMA’s announcement after it was reported in Newsday.
MEDIA MATTERS
San Diego-based One America News Network is now available in 15 million U.S. households and hopes to bring more “credible” news to cable TV, its president told Ad Week.
Michael Buck, an A.M. Best reporter, is leaving the company for an advertising/marketing position at Plymouth Rock Assurance, a personal lines carrier in New Jersey.
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