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 later today, please email Mike Barry at michaelb@iii.org
NEW JERSEY LAWMAKER HIGHLIGHTS NAIC CONSUMER ADVOCATE’S TOP ISSUE
New Jersey state Senator invokes NAIC’s homeowners policy transparency debate during hearing on regulator’s budget:
Senator Barbara Buono reportedly asked New Jersey Banking and Insurance Commissioner Thomas Considine why his agency does not post online the homeowners policy forms it approves, a question implicitly posed by a National Association of Insurance Commissioner (NAIC) consumer representative in this Thursday, April 21, New York Times story. The lawmaker’s comment came at a budget hearing and appears to be part of a larger call for governmental transparency in New Jersey, according to this Friday, May 13, Star-Ledger article.
NEW YORK TIMES FOCUSES ON U.S. CAPTIVE INSURANCE MARKET
Front page story in the New York Times offers critical look at the captive insurer market:
The Monday, May 9, NYT article reports that Vermont and a few other states are actively working to attract companies involved in complex private insurance transactions that were formerly arranged only offshore. Approximately 30 states have enacted some measures that would allow companies to establish special insurance subsidiaries known as captives, allowing these companies to engage in transactions of the type usually conducted exclusively offshore. The term captive formerly applied to a subsidiary set up by any large company to insure its risks. Some critics cited in the story warn about the development of what they characterize as a shadow insurance industry, which is more loosely regulated and has more debt than its policyholders realize. Others expressed concerns that some insurers, because of their use of captives, will not have enough assets to cover claims.
National Underwriter finds that the NYT owns a New York-domiciled captive, Midtown Insurance Company:
The captive was incorporated in 2003 and is still open for business, according to a Wednesday, May 11, NU article. The New York Times did not offer a response, the article states.
ALABAMA TORNADOES CONTINUE TO DRAW NATIONAL MEDIA ATTENTION
USA Today reports that there were more tornadoes in April 2011 than in any other month in U.S. history:
The 600-plus tornadoes last month broke the record of 543 in May 2003, according to National Oceanic and Atmospheric Administration (NOAA) data cited in this Monday, May 9, USA Today print edition article. The April 25-28, 2011, tornado outbreak, having caused an estimated 327 deaths in multiple states, was the third-deadliest on record, the article notes.
Associated Press is trying to quantify the percentage of Alabama homeowners without homeowners insurance:
The I.I.I.’s Bob Hartwig spoke on Tuesday, May 10, with the AP’s Atlanta-based Harry Weber (hweber@ap.org). Weber has been working to quantify the approximate percentage of Alabama tornado victims who resided in homes that were uninsured.
FEDERAL GOVERNMENT TAKES CENTER STAGE AMID MISSISSIPPI RIVER FLOODING CRISIS
Mississippi River flooding concerns move to southern cities:
The New Orleans Times Picayune reported in a Tuesday, May 10, article about the decisions the Army Corps of Engineers needed to make with regard to the Morganza spillway.
I.I.I. to participate in FEMA’s National Flood Insurance Media Tour next week in Washington, D.C.:
The I.I.I.’s Jeanne Salvatore will be taping segments in Washington, D.C. late in the week of May 16-20 with Olgivy, the public relations firm for the NFIP’s FloodSmart program. The NFIP is paying for the satellite media tour, and will pitch the content to TV stations in flood-prone states. The I.I.I. will be offering tips to consumers on why, and how, to purchase flood insurance.Associated Press reports that FEMA is seeking a total of $22 million-plus from more than 5,500 people affected by 129 separate disasters since 2005:
The FEMA payouts came in the wake of floods, tornadoes, hurricanes and other calamities from Arkansas to American Samoa. FEMA is still reviewing its records, and more repayment requests could go out soon, including to victims of Hurricane Katrina, the AP reports. FEMA admits the payments were largely its own fault—the result of employees who misunderstood eligibility rules, approved duplicate assistance for costs that were already covered by either insurance or other sources, or made accounting errors.
VARIETY OF REPORTERS CALL I.I.I. ON BROAD RANGE OF ISSUES
Smart Money, Lifequotes.com, Bankrate.com, Money Magazine and Business Insurance interview the I.I.I.:
The I.I.I.’s Salvatore spoke with Kelli Grant of SmartMoney.com about disaster preparedness and loss mitigation steps homeowners can take in advance of hurricane season (kelli.grant@dowjones.com); LifeQuotes.com’s Emily Capdevielle about specialty insurance coverages for high-end items such as yachts and helicopters; Tamara Holmes of Bankrate.com about what happens if you are uninsured and hit by a disaster; and with Money Magazine’s Tali Yahalom (tali_yahalom@moneymail.com), who is prepping a story on how to insure valuable art works. In addition, the I.I.I.’s Steve Weisbart spoke on Wednesday, May 11, with Business Insurance’s Matt Dunning (212-210-0143) about the Alabama tornadoes and potential fallout from these events in the reinsurance market.
Colorado and Nevada TV stations contact the I.I.I. for upcoming stories:
The I.I.I.’s Mike Barry spoke with the NBC affiliate in Grand Junction, Colorado, on Tuesday, May 10, for a story they are preparing on the percentage of uninsured motorists in the state (about 15 percent as of 2009, according to the Insurance Research Council, which puts them at or near the national average). The on-air reporter is Kelly Asmuth of NBC 11. Barry also briefed the ABC affiliate in Las Vegas, Nevada, (Channel 13) after the station called the I.I.I. about the liability issues arising out of vehicle-related road debris—instances in which materials fall off a commercial vehicle and strike a private-passenger car.FLORIDA
Hillsborough County Circuit Court judge says an Odessa homeowner’s damage from Chinese-made drywall is covered by his homeowners insurance policy:
This Saturday, May 7, Tampa Tribune article on the drywall ruling states that the judge found no exclusion in a Teachers Insurance Co.’s policy that should keep the company from paying to fix the home. The I.I.I. was quoted in the article, explaining that the ruling may not have broad implications since it was related to language in one company’s policy.Citizens Property Insurance Corp. to bolster its surplus by issuing $900 million in bonds:
Sunshine State News has an article on a Citizens board meeting board meeting this week where it was decided to start the process for getting to the bond market because statutory restrictions mean the bonds will not be issued until June 2011, and the final details cannot happen until Citizens’ July 2011 board meeting. Citizens’ chairman James Malone praised the purchase, but bemoaned the lack of movement on Citizens legislation during the recently concluded session that would allow some of the cost of reinsurance to be recouped through rate increases. Citizens has an Executive Summary of its reinsurance plan. The South Florida Sun-Sentinel article on Citizens’ reinsurance purchase explains that its board approved spending up to $125 million to buy $300 million to $580 million worth of coverage. Part of that coverage would only kick in if Citizens losses exceeded $6.3 billion.I.I.I. had four different TV interviews in Florida during the week of May 9-13:
The I.I.I.’s Lynne McChristian did a live segment with Fox’s Tampa affiliate about Senate Bill 408, the major property insurance bill awaiting the governor’s signature, and taped an interview with this same station on pay-as-you-drive auto insurance policies. In addition, McChristian was interviewed for a piece WTVT will run on the station’s Tuesday, May 31, hurricane season preview news report and another with WFTS, an ABC affiliate, on the importance of doing a home inventory as part of hurricane preparedness.TEXAS
Houston Chronicle reports that Texas House has approved bill that would streamline the TWIA claims dispute process: House Bill 272 was examined in this Tuesday, May 10, Houston Chronicle story, and the measure’s critics say it would infringe on the rights of Texas Windstorm Insurance Association (TWIA) policyholders.
Houston is the site of National Dog Bite Prevention Week press conference: The U.S. Postal Service kicked off National Dog Bite Prevention Week (May 15-21, 2011) with this Thursday, May 12, media event.
LOUISIANA
Louisiana decision could keep alive the state’s four-year effort to collect any underpayments by homeowners insurers resulting from the Road Home Program: The Road Home Program was created to help homeowners who were not properly insured prior to Hurricane Katrina but the biggest potential beneficiaries of the program may have been private-sector property insurance companies if insurers underpaid their policyholders, knowing that their customers would have another source of rebuilding money, or if customers did not bother to pursue insurers for all the payments they were due because they knew that they could get money from the state, according to a Times Picayune article on the latest court ruling in the matter.
ALABAMA
Alabama Legislature established the Strengthen Alabama Homes Fund: The measure is aimed at helping the state’s coastal area residents retrofit their homes to better withstand hurricanes. State Senator Ben Brooks of Mobile, the sponsor of the measure, says the proposed fund does not have revenues yet, but he anticipates money from fines related to last year’s BP oil spill in the Gulf of Mexico along with federal grants will eventually provide the money. Senator Brooks added that assisting property owners in the coastal counties of Mobile and Baldwin to fortify their homes will help lower their insurance rates, reduce insurer risk and boost the economy by creating construction work, according to this front page Friday, May 6, article in the Mobile Press-Register.
SOCIAL MEDIA REPORT
–Ben Berkowitz of Reuters tweeted another Reuters reporter’s story this week about how insurance adjusters are unpopular in one small Arkansas town that suffered both tornado and flood damage. The dual natural disasters decimated the town of 3,000, and looters are now preying on victims and stealing metal and machinery, Reuters reports. All of this trauma has made interactions with claims adjusters stressful, and some homeowners say their insurance companies either are not showing up or are not helping as much as they should
–The most popular piece of content in the insurance social media nationally this week is all about dog bites and the State Farm release that was recently put out listing the Top Ten States for Dog Bite Claims. The State Farm release contains data from the I.I.I. and is appearing on popular websites like Life With Dogs, being shared all over Facebook walls, re-tweeted by insurance agents and consumers, and receiving dozen of comments wherever the article appears.
MEDIA MATTERS
Warren Buffett to make guest appearance on NBC’s ‘The Office’ on Thursday, May 19: The Hollywood Reporter had the details.
HLN’s Robin Meade tapped to co-host Music Builds: The CMT Disaster Relief Concert: The Thursday, May 11, event is aimed at raising awareness and funds for those affected by the recent storms, tornadoes and ongoing flooding across the south. All of the money raised by the Country Music Television (CMT) concert will go to American Red Cross Disaster Relief efforts.
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