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, March 15, please email Mike Barry at michaelb@iii.org
I.I.I. HOSTING WEBINARS ON MARCH 15, APRIL 11
On Wednesday, March 15, at 11 a.m., ET, the I.I.I.’s chief economist, Dr. Steven Weisbart, will give a presentation on the latest industry financial trends.
On Tuesday, April 11, at 1 p.m., ET, Edelman will give insights into what its Trust Barometer is saying about the insurance sector. This is a follow-up to the initial results presented by Edelman at the I.I.I. Communications Committee’s January 2017 meeting in New York City.
Both webinars are open to everyone working at an I.I.I. member company; however, registration is limited, so please reserve your spot. You can also email Lilia Giordano at liliag@iii.org.
I.I.I.’s MARCH 14 CONFERENCE CALL TO OFFER PROPUBLICA UPDATE ProPublica is continuing its research into how the industry handles auto insurance rate making. To discuss the matter, the I.I.I. will host a conference call on Tuesday, March 14, at 2 p.m., ET.
A calendar invitation was sent out on March 8. ProPublica’s premise is that auto insurers charge more to minorities and low-and-moderate income individuals than to others. The I.I.I.’s chief actuary, Jim Lynch, is the I.I.I.’s spokesperson on this issue. You contact either Lynch (jamesl@iii.org) or Mike Barry if you have any questions.
STORIES IN THE WORKS
Boston Globe reporter Deirdre Fernandes is writing about the rising cost of auto insurance. Fernandes notes several auto insurers have taken an earnings hit because of the growing frequency, and severity, of their private-passenger auto claims. Distracted driving is also seen as contributing to this trend. The I.I.I.’s Loretta Worters and Jim Lynch provided information and shared with the Boston Globe the I.I.I.’s distracted driving paper. Additionally, the I.I.I.’s Worters gave an interview to New York City’s Fox affiliate last week for a segment on how distracted driving is contributing to rising auto insurance costs.
The Insurance Industry Charitable Foundation (IICF) is looking for nominations for an Inclusion Champion. The champion is seen as a person who is personally and visibly committed to the advancement of women and diversity. Nominees will include those who mentor and sponsor women, are directly involved in developing talent, and influencing those within, and outside, their organizations. Contact the IICF for Inclusion Champion nomination forms.
CAPITOL HILL
Business Insurance reports the U.S. House’s Financial Services Committee plans to consider the Financial Choice Act, which would either revise or eliminate certain provisions of Dodd-Frank, such as those governing nonbank systemically important financial institutions (SIFIs). Read Story (registration required)
STATES
Arizona State lawmakers are debating whether to raise the mandatory minimum liability coverage its licensed drivers must carry. If Senate Bill 1111 is enacted, insurers would be required to make the changes by June 1, 2018. The current minimum standards in Arizona have been in effect for 45 years but supporters of the bill say those standards don’t cover increasing costs of cars, repairs and hospitals. The state requires insurance companies to offer minimum liabilities of $15,000 per person, $30,000 per occurrence and $10,000 for property damage. The proposed increase would adjust rates to $25,000, $50,000 and $25,000, respectively.
California A pair of $250,000 autonomous buses began driving around an empty San Francisco Bay Area parking lot on Monday, preparing to move onto a local public road in California's first pilot program for a self-driving vehicle without either a steering wheel or human operator. California legislators late last year passed a law to allow slow-speed testing of fully autonomous vehicles without steering wheels or pedals on public roads.
A study by the U.S. Geological Survey (USGS) finds southern California could be overdue for a large earthquake.
Crime was down in most categories last year in American Canyon, but auto thefts were up significantly, and appear to still be going up based on early 2017 numbers. Vallejo-Fairfield, American Canyon’s neighbor, appeared last year on the National Insurance Crime Bureau’s list of Top 10 metro areas in the U.S. for auto thefts.
Florida
The state’s 2017 Legislative Session started on Tuesday, March 7. A coalition of business groups has come out against a proposed Senate bill that will pay for a cut in the state’s tax on mobile phone, satellite, and cable TV service by repealing a tax break to insurers. The legislation (SB 378) would swap the insurance break for a 2 percent reduction in the state’s communications services tax.
The latest bill that promotes the private flood insurance market would enable insurers to set their own rates without needing approval from state regulators for six additional years, through 2025. The extension would replace a deadline of October 1, 2019, set after enactment of a bill passed in 2014. About 35 percent —1.8 million— of the National Flood Insurance Program’s (NFI) policyholders nationwide are in Florida. The Office of Insurance Regulation lists 13 companies as “primary” flood insurance writers.
A wildfire consumed 85 acres of woods in Palm Beach Gardens last Sunday. No property was damaged but it was close enough to urban areas to snarl traffic. The cause of the fire is undetermined.
Iowa The state Senate voted unanimously to confirm Doug Ommen as Iowa’s insurance commissioner. Ommen served as deputy commissioner under the previous Commissioner, Nick Gerhart, before becoming interim commissioner in December 2016, when Gerhart left the post.
Mississippi A bus carrying 48 people from a senior center outside Austin, Texas collided on Tuesday, March 7, with a train in Biloxi. Four people on the bus died as a result of the accident and as many as 30 more were injured. The story on the crash in the Biloxi Sun-Herald said there have been 16 accidents at the same crossing since 1976.
Missouri Storms and tornadoes caused extensive property damage in the Kansas City metropolitan area as well as eastern Kansas on Monday night, March 6. Kansas City and its suburbs were under a flash flood warning for several hours. About a dozen injuries were reported but none of them were considered life threatening. More information on the storm damage is in the Kansas City Star.
Oklahoma At least four homes have been lost in wildfires in northwest Oklahoma. Officials estimate about 100,000 acres have burned in four counties. The Oklahoman has details on the homes lost from wildfires.
The Insurance Journal had an article blaming humans for 84 percent of all U.S. wildfires, with lightning-ignited fires accounting for the rest. Lightning-driven fires tend to occur in the summer months but human-ignited fires are more evenly distributed across all seasons. About 9 percent of the populated U.S. land areas are currently in the wildland-urban interface, a figure that is projected to double by 2030. Click here for the story.
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
A comparable synopsis will be circulated each week.
