SYNOPSIS ALL INDUSTRY CONFERENCE CALL March 7, 2012

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, March 14, please email Mike Barry at Michaelb@iii.org

 

Since our call on Wednesday,  AnnaMaria Andriotis’ article appeared in SmartMoney.com.  It is possible that the article may also appear in The Wall Street Journal. Andriotis spoke with the I.I.I.’s Jeanne Salvatore, Steve Weisbart, Bob Hartwig and Lynne McChristian. The premise of the article is that standard homeowners insurance policies in many parts of the U.S. today are more costly and offer less coverage than they did previously. Jim Bouchta, a reporter with the Star-Tribune saw the piece in Smart Money and is thinking of doing a similar Minnesota specific story. Money Magazine’s April 2012 hard-copy edition may also explore comparable themes in stories being written by Jay Feldman and Kate Ashford. 

Nearly 50 fatalities were attributed to a series of severe tornadoes that struck numerous states during the week of February 27-March 2, according to this analysis from Eqecat, a risk modeling firm that also estimated insurer claims payouts arising out of these natural disasters could exceed $1 billion. The I.I.I. issued an advisory and a news release last week to guide reporters covering these events. The I.I.I. spoke with Reuters, CNBC, National Public Radio, and Investor’s Business Daily, among many other media outlets, on coverage and claims filing issues. Claire Wilkinson’s Monday, March 5, Terms + Conditions blog offered additional insights.

The I.I.I. issued a news release on Tuesday, February 28, regarding the LPI’s annual meeting in Singer Island, Florida. LPI is an I.I.I. subscriber, and the I.I.I.’s Salvatore made a presentation at the LPI event.

The I.I.I.’s Hartwig and Jason McDonald, Director of Development and Strategy at Oracle Corporation, gave a joint presentation on Tuesday, February 28, that included data on underwriting performance by segment; catastrophe loss trends; and underwriting and profitability factors.

The I.I.I.’s Salvatore’s is quoted in the article and worked closely with the reporter, Sarah Meehan, prior to the publication of the story on Wednesday, March 7 in USA Today.

The I.I.I.’s Hartwig spoke with reporter Tim Grant on Wednesday, March 8, for a story on the CFA’s February 2012 report, and the I.I.I.’s same-day response. The CFA issued a second news release on Tuesday, February 21, in an effort to rebut the I.I.I.’s Friday, February 17, statement.

Richard Cordray, head of the CFPB, made the statement during a Tuesday, March 6, speech to the National Association of Attorneys General in Washington, D.C. Bankrate.com’s John Egan and Arthur Postal of National Underwriter are interested in developing stories on what this might mean for homeowners insurers.

 

The Weather Channel’s Jim Cantore and Oklahoma Governor Mary Fallin are among guest speakers listed on the agenda of the Tornado Summit.

 

The I.I.I.’s Mike Barry attended the all-day event on Wednesday, February 29. The full list of speakers can be found on the agenda. The gathering was not covered by the press.

Dave Hodes is joining A.M. Best this week, and will work alongside Jeff Jeffrey. Hodes succeeds Sean Carr, who is now a reporter with SNL Financial.

Reuters reported that Securities and Exchange Commission (SEC) Chairwoman Mary Schapiro told a Congressional hearing the SEC is exploring whether insurance companies can qualify for a “coveted exemption in the proposed Volcker rule that would protect insurers from having to scale back their investments in hedge funds,” according to this Tuesday, March 6, article.

 

Tom Grady, Commissioner of Florida’s Office of Financial Regulation (OFR), is leaving to become interim president of Citizens Property Insurance Corporation, effective Monday, March 12, according to this Wednesday, March 7, Miami Herald story.

 

Florida House Bill 119 passed that chamber, 85-30, and has won support from Governor Rick Scott and Chief Financial Officer Jeff Atwater because they believe it would, if enacted, crack down on fraud in the state’s auto insurance personal injury protection (PIP) system. But it is unclear whether the House measure will be reconciled with Senate Bill 1860 before the current legislative session concludes, according to a Friday, March 2, Associated Press article

 

Senator Ron Richard (R-Joplin) has proposed legislation that the Missouri state Senator believes would make it easier for homeowners to settle claims with insurance companies following a tornado. The measure calls for eliminating a requirement that homeowners individually list all lost items when filing a claim, according to this Tuesday, March 6, Joplin Globe article.

 

One of the plaintiff’s attorneys, who won a $92 million-plus judgment against Citizens Property Insurance Corporation for its slow claims-handling in 2005, issued a news release this week saying the plaintiffs would seize the monies owed to them from Regions Bank, where Citizens maintains an account. The Baton Rouge Advocate posted a story on the latest developments. 

 

Insurance Commissioner Ralph Hudgens issued a statement on Tuesday, March 6, saying the Friday, March 2, tornadoes that swept through Georgia caused about $40 million in insured losses. This Wednesday, March 7, Atlanta Journal-Constitution article offered additional details.

Connecticut state lawmakers held a public hearing in Hartford on Tuesday, March 6, to discuss tightening residential smoke-detector laws in the wake of a Christmas Day 2011 fire that killed five people in Stamford, Connecticut. The Stamford Advocate published a story on the proceedings in its Wednesday, March 7, edition.

 

The I.I.I.’s Hartwig delivered a detailed presentation on New Jersey insurance markets to the Insurance Council of New Jersey on Monday, March 5.

The U.S. Attorney for the Southern District of New York announced on Wednesday, February 29, that formal charges had been brought against 36 individuals for their alleged participation in a multi-million dollar no-fault auto insurance fraud scheme.  Days later, state Attorney General Eric Schneiderman announced 16 arrests related to a staged auto accident ring.

The biggest topic this week in social media was tornadoes, with blog posts and tweets about how last week’s deadly tornadoes have created huge insured losses. The Saturday, March 3, article written by Ben Berkowitz of Reuters that quotes the I.I.I. is being reposted to numerous insurance and financial blogs along with articles about having enough insurance to cover the extreme losses that can result from a tornado. Bloggers are also talking about the outlook for 2012 as so much damage has already been caused by natural disasters so early in the year.

 

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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