SYNOPSIS ALL INDUSTRY CONFERENCE CALL May 4, 2011

 

If there is a subject you would like to see addressed later today, please email Mike Barry at michaelb@iii.org

 

 

 

—The I.I.I.’s Bill Davis, an Alabama native, traveled to Tuscaloosa from his home in Georgia, to provide on-site media representation over the past week for I.I.I. member companies in one of the hardest-hit parts of that state. The I.I.I.’s Disaster Newsroom included regular updates from Davis, editorial content on the aftermath of the Alabama tornadoes. In addition, visitors to the site were able to find toll-free insurance company claims numbers, consumer information, I.I.I. Facts and Statistics, news releases, and issues papers.

–The Alabama Emergency Management Agency has begun releasing the names of those killed by the recent tornadoes. The estimated number of fatalities in the state has been lowered to 236 from 250, according to this Tuesday, May 3, New York Times article. On Monday, May 2, the National Weather Service (NWS) issued a preliminary rating of EF-4, the second highest designation of strength, to the tornado that tore a path a mile and a half wide through the area between Tuscaloosa and Birmingham, causing 65 deaths. The massive tornado was part of a “super cell” that moved across 380 miles from Mississippi to North Carolina over the course of seven hours. In its preliminary report, the NWS said that 226 tornadoes appeared within one 24-hour period, and that it was the single deadliest day for tornadoes in the U.S. since 1925.

–I.I.I. president Bob Hartwig was quoted extensively in a Friday, April 29, Wall Street Journal (subscription required) article on the insurance industry’s swift response to the impacted southern states and property insurers’ cumulative ability to pay claims. The I.I.I.’s Mike Barry appeared on-air on CNBC’s Power Lunch program on Thursday, April 28, talking about how in early April 2011 insurers had to respond to severe tornadoes in northern states, such as Wisconsin and Minnesota.

–The I.I.I.’s Hartwig was interviewed about the availability/affordability of terrorism risk insurance by The Hartford Courant, The Street.com and The Huffington Post, among others, after the I.I.I. issued this media advisory first thing on Monday morning, May 2, just hours after President Obama announced that Osama bin Laden had been killed by U.S. forces in Pakistan.

–The I.I.I.’s Claire Wilkinson, co-author of the I.I.I.’s white paper on terrorism risk insurance with Dr. Hartwig, filed this Tuesday, May 3, Terms + Conditions blog item on the issue. The link also takes readers to a video of Hartwig that was taped near Ground Zero in lower Manhattan.

—WSJ columnist Holman Jenkins offered a negative critique of the federal Terrorism Risk Insurance Act (TRIA) in his Wednesday, May 4, piece as part of a larger story on bin Laden’s death.

American Arbitration Association orders an AIG unit to pay $86.7 million to resolve dispute involving life settlements:  Lonsdale LLC, a Brussels based subsidiary of the U.S. financial products business of KBC Group NV, will receive the $86.7 million, according to this Wednesday, May 4, Wall Street Journal (subscription required) article. The payment was related to a dispute over insurance on loans made to an investor who purchased the life insurance policies of the elderly.

Wall Street Journal analysis says first quarter 2011 earnings results for U.S. life insurers need to be viewed skeptically:  A Wall Street Journal column from Wednesday, May 4, said the factors underlying the improved results may not be lasting. These factors include the strong performance of the stock market, which increased investment income; a brief increase in long-term interest rates; and the sale of assets, such as business subsidiaries. The basic outlook for the industry has not changed. Low interest rates may be the largest obstacle to earnings, and low interest rates are not favorable for one of the industry’s most popular products, variable annuities, Kelly Evans writes.

CoreLogic finds that over 1.8 million homes along the Gulf and Atlantic coasts are at high risk of damage from hurricanes:  The report focused on the potential impact of storm surge and the indirect damage that can be caused by water and flying debris from strong winds, according to this Associated Press story. CoreLogic said that the homes most at risk are in Virginia Beach, Virginia; New Orleans; Tampa; Long Island, New York; and Miami. The study used computerized models to generate the probability of a hurricane hitting a particular area, residential density rates, elevation, levees and barriers, and water depths.

 

U.S. House Financial Services Committee to mark-up National Flood Insurance Program bill on Thursday, May 12:  The details are in this hearing notice.

 

South Florida Sun-Sentinel reports that details on sinkhole coverage-related legislation are expected to be hammered out this week by Florida lawmakers:  The legislation (Senate Bill 408) would allow certain rate hikes and shorten the timeframe for policyholders to file claims, according to this Tuesday, May 3, Sun-Sentinel article. The Senate version of the bill would allow property insurers to charge any rate they want for sinkhole coverage and to drop full sinkhole coverage offerings, while the House version would allow insurers to require property inspections before offering sinkhole coverage.

Florida’s passage of CS/HB 99 will give commercial insurers more flexibility when it comes to setting rates for several lines of insurance:  The legislation covers commercial motor vehicle coverage, fiduciary and general liability, non-residential property and non-residential multi-peril, excess property, and burglary and theft policies. Florida’s Office of Insurance Regulation will still be able to sign off on forms and conduct market exams to determine insurer solvency, according to this Tuesday, May 3, Insurance Journal article.

 

The Los Angeles Times reports that three insurers have combined to make $11 million in new investments in poor neighborhoods: The investment is part of a 14-year-old program called the California Organized Investment Network (COIN); in the past COIN funds have financed low-cost housing, mobile home mortgages, small businesses, day care centers and other community improvements, the LA Times reports. California Insurance Commissioner Dave Jones and state Assembly Speaker John Perez jointly announced on Tuesday, May 3, the three investments: $7 million from the Farmers Insurance Exchange; $2 million from State Farm Mutual Automobile Insurance Co.; and $2 million from Pacific Life Insurance Co.

 

New York Post, Time Warner Cable (TWC) cover Legislative Action Day’s focus on no-fault fraud in Albany: Brooklyn, New York, District Attorney Charles Hynes’ Tuesday, May 3, visit to the state Capitol, where he stressed the need for stronger laws against no-fault auto insurance fraud alongside the New York Insurance Association and other interested parties, generated an eight-minute interview on TWC’s Capital Tonight program that evening, and a next-day story in The New York Post.

 

–Florida TV reporter Troy Kinsey, who is based in Tallahassee, sent a tweet that reads “Sen. [Michael] Fasano rails against prop insurance reform legislation on Old Capitol steps” and shows a picture of the Florida state Senator speaking on the steps of the Capitol.  This image has been retweeted several times by Florida citizens who agree with Senator Fasano about the legislation that has been working its way through the Florida Legislature over the past few weeks.

–A tweet from Julie Patel of the Sun Sentinel announced that the Florida House was set to vote on a sweeping property insurance bill today.

–In another Patel tweet, she provided a quick update to the Florida Personal Injury Protection (PIP) reform bill: SB 1150 has been altered in the Florida House to include a provision that requires long-form police reports be filed after auto accidents.

–The I.I.I.’s updated white paper entitled, “Terror Risk: A Re-emergent Threat”, first issued in mid-April 2011, continues to get pick up after the events of this week. The paper now includes a video of Dr. Hartwig speaking at Ground Zero and currently holds the record for “most shared item” in I.I.I.’s Twitter history.

–The I.I.I.’s Disaster Newsroom, with regular editorial content updates from Alabama, is getting some pick up via Facebook shares. 

 

—Time Warner Cable’s interview on disaster preparedness and claims filing with the I.I.I.’s Jeanne Salvatore, which already aired on New York City’s NY1, will be repurposed and shown on TWC outlets nationwide. 

–Kate Rogers of Fox Business Network is filing an online story about dangerous driving habits and how they impact auto insurance rates.

–Beth Orenstein of compuquotes.com is writing about at-home weddings and to what extent they are covered under a standard homeowners insurance policy.

—Business Insurance’s Sonja Ryst asked the I.I.I. for a list of the major commercial insurance brokers in the U.S., beyond Aon and Marsh.

—Chicago Tribune columnist Melissa Harris wanted some perspective on whether Illinois’ enactment of HB 148—a measure allowing individuals to carry concealed weapons on private commercial property—could raise insurance premiums. Governor Pat Quinn has said he will veto the measure if it lands on his desk, Harris wrote, in this Thursday, May 5, Tribune story.

–Emma Sapong at The Buffalo News is looking at types of insurance that might be duplicative of others (e.g., flight insurance, cancer insurance).

–Lori Chordas of A.M. Best is tracking the insured loss figures arising out of the severe late April tornadoes in the southern U.S.

–Kathy Kristof of MSN wants to know if anyone can quantify which activity causes more accidents: driving while using a cellphone; or driving while texting?

–Anna Maria Andriotis of Smart Money continues to look for more information on umbrella liability policies (e.g., who needs them, what do they cover?).

–MP McQueen’s final day at The Wall Street Journal was Monday, May 2.

–Scott Pelley’s first night as the CBS Evening News anchor will be Monday, June 6.

–The Newspaper Association of America reported this week that total print ad revenues dropped 52 percent between 2005 and 2010, to $22.8 billion from $47.8 billion nationwide.

–The Audit Bureau of Circulations (ABC) announced on Tuesday, May 3, that The Wall Street Journal had the highest circulation among all U.S. newspapers, with USA Today finishing second in that category. The New York Times’ circulation dropped 3.4 percent for the six months ending March 31, 2011, ABC found.

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