To recap the issues raised during last 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, April 5, please email Mike Barry at michaelb@iii.org
PROPUBLICA IS FACT-CHECKING ITS STORY ON AUTO INSURANCE PRICING PRACTICES IN FOUR STATES
ProPublica senior editor Julia Angwin told her sources, including the I.I.I.’s James Lynch, that her fact-checking would conclude on Friday, March 31. ProPublica is focusing on California, Illinois, Missouri, and Texas as well as the city of Chicago.
SEVERE STORMS IN TEXAS AND OKLAHOMA UNLEASH DAMAGING TORNADOES, FLOODING AND HAIL
Moreover, three storm chasers, two of whom were contractors for The Weather Channel, were killed in a two-car accident near Spur, Texas, on Tuesday, March 28, according to Accuweather.
STORIES IN THE WORKS
The I.I.I.’s James Lynch taped an interview today (March 29) with National Public Radio (NPR) about self-driving cars and insurance.
The I.I.I.’s Michael Barry spoke with Fortune’s Lucinda Shen (rising auto insurance costs) Energy & Environment News’ Marc Heller (wildfires and insurance) and National Underwriter’s Anna Trusky (workers compensation).
CAPITOL HILL
At least 10 U.S. Senators believe AIG and Prudential should no longer be considered systemically important financial institutions (SiFi) and the U.S. ought to discontinue its efforts to give MetLife a SiFi designation.
STATES
Alabama
Auto-part manufacturing plants in the state have developed a reputation for lax safety regulations and tough working conditions, Bloomberg Businessweek reports.
Arkansas
An EF-2 tornado caused extensive property damage in Cato on Friday, March 24. Cato is about 20 miles north of Little Rock. Numerous injuries were also reported.
Arizona
A federal judge said Germany should be the venue for lawsuits against a Goodyear-based, Germanwings-owned airline training center that allegedly failed to screen pilot Andreas Lubitz, who deliberately crashed a plane in 2015.
California
Concerns remain over the dangers presented by the Oroville Dam’s damaged spillway.
A 71-year-old mother and her 42-year-old son were sentenced in San Diego to jail time for submitting multiple fraudulent auto insurance claims.
A screenwriter and producer has sued Walt Disney Pictures claiming the studio copied his ideas to create the Oscar-winning animated film Zootopia.
Florida
House Bill 1063, which would end the state’s no-fault auto insurance system, passed a House subcommittee but the measure has a long way to go before becoming law, the Palm Beach Post reports.
The Tampa Bay Business Journal interviewed a property insurer’s CEO about what the CEO considers to be widespread assignment of benefits (AOB) system fraud.
The Orlando Sentinel says workplace fatalities in Florida increased during the past two years—to 3.1 from 2.7 for every 1,000 workers.
A News Service of Florida article on eliminating the premium-tax credit for insurers said a change made in the bill would also offer a one percentage-point reduction in a commercial lease tax for businesses.
The Tampa Bay Times said the Florida Senate seems undeterred by threats that Floridians would face premium hikes if the premium-tax credit for insurers were rescinded.
A 700-acre brush fire near Bryceville (Nassau County) last week prompted evacuations and threatened homes.
Kansas
The insured losses from the March 20th Overland Park blaze, which destroyed a four-story apartment building that was under construction, may total upwards of $25 million, the Associated Press reports.
The Kansas City Star’s editorial board praised a bill that would tighten inspection requirements for amusement rides. The legislation was introduced following a child’s death last year at a Kansas water park.
Mississippi
Recover, Rebuild, Restore Southeast Mississippi (R3SM) is helping the under-insured counties hit hardest by the January 21, 2017, tornadoes, Insurance Journal reports.
Nevada
Federal funding is available for Carson City and four counties—Douglas, Elko, Humboldt, and Washoe—when either repairing or replacing properties damaged by February 2017’s storms, flooding, and mudslides.
New Jersey
The co-owners of a Vernon (Sussex County) diner destroyed by fire in March 2016 pled guilty last week to arson and insurance fraud.
North Carolina
The Department of Insurance announced last week it is holding a public hearing on Monday, September 11, to consider the Rate Bureau’s requested 13.8 percent average statewide increase in auto rates.
Ohio
The CBS affiliate in Columbus pre-empted the final minutes of the Kentucky-North Carolina men’s college basketball game to warn viewers about a nearby tornado on Sunday, March 26.
Oklahoma
Oklahoma City’s Fire Department touted its receipt of the highest rating ISO can bestow on a municipality’s hydrant system.
Days before it passed the state House, Insurance Commissioner John Doak publicly supported House Bill 1720. If enacted, HB 1720 would provide homeowners insurance discounts to policyholders who built resilient homes.
South Carolina
The state’s Safe Home program, which gives homeowners economic incentives to mitigate hurricane risk, may be revived in 2017. The Post & Courier says the last time new applications were accepted was in mid-2015.
Washington
A 27-year-old Bellevue man who defrauded a small bank, Apple Inc., and various shippers of more than $3 million was sentenced to five years in prison.
Wyoming
Teton County municipal properties that were damaged or destroyed by the February 6-7, 2017, severe winter storm and straight-line winds are eligible for federal funds.
SOCIAL MEDIA REPORT
I.I.I.’s CEO at InsurTech Conference
The I.I.I.’s Sean Kevelighan is moderating a panel on “Best Practices for Core Systems Transformation” at the Silicon Valley InsurTech conference tomorrow (March 30). Speakers on the panel will be sharing insights meant to guide insurance executives on the rapid integration of InsurTech solutions. To follow the event, use the hashtag #InsTechSV and follow @SVIaccelerator and Sean Kevelighan at @III_SeanK on Twitter. Kevelighan is also posting a piece on LinkedIn on the topic of Insurtech.
I.I.I.’s Chief Actuary live-tweeting from Casualty Actuarial Society (CAS) seminar
The I.I.I.’s Jim Lynch will be live-tweeting from our @III_Research account on Twitter this week from the CAS’s Ratemaking and Product Management (CASRPM) seminar in San Diego. The event provides insights on ratemaking, predictive modeling and product management. For updates on the CAS gathering, use the hashtag #casrpm17 or follow @III_Research.
Financial Stability Oversight Council’s (FSOC) SiFi designation process lacks “transparency and accountability,” U.S. Senators write
U.S. Senator Tom Cotton (R-Arkansas) and a number of his colleagues shared this opinion in a letter to U.S. Treasury Secretary Steve Mnuchin. In a related development, the I.I.I. tweeted an infographic earlier today on how U.S. insurers survived the 2007-2009 economic crisis more effectively than banks.
MEDIA MATTERS
Josh Earnest, President Obama’s press secretary, has joined NBC News and MSNBC as a political analyst.
Mark Kranz, Fox News Channel’s (FNC) former chief financial officer (CFO), has been offered immunity from prosecution in exchange for testimony about FNC’s payments to women who were allegedly harassed by former FNC chairman Roger Ailes, according to a front-page story in today’s (March 29) Financial Times.
Tracee Carrasco is joining Fox Business Network (FBN) as an on-air general assignment reporter on Monday, May 1. She was most recently at New York City’s CBS affiliate.
FBN has had more daytime viewers than CNBC for six straight months.
Charter Communications’ CEO announced last Friday at a White House ceremony that Charter would be hiring 20,000 people over the next four years.
