To recap the issues raised during Wednesday’s conference call, here are some of the key media stories, and the messages we’re conveying.
U.S. Department of Labor (DOL) reports auto insurance premiums rose 5.4 percent in past year:
The DOL’s number was released this week as part of its monthly Consumer Price Index report, and covered the period of October 2009-October 2010. Hospital services (+8.5 percent within the same timeframe) appear to be the biggest cost-driver.Sarasota Herald Tribune critiques insurer reliance on risk modeling firms:
Risk Management Solutions (RMS) has had an outsized influence on Florida’s property insurance rates since 2006, according to this Sunday, November 14, Herald-Tribune article. The I.I.I. was told that RMS’s president and CEO has already submitted a letter to the editor, offering a spirited rebuttal to many of the assertions in the article.
New York’s highest court upholds life insurance policyholder’s right to sell policy to investors:
The Wall Street Journal (subscription required) published on Thursday, November 18, a detailed article on the New York Court of Appeals decision.
Life insurers’ use of retained asset accounts is on NCOIL’s agenda:
The National Conference of Insurance Legislators (NCOIL) will discuss its proposed Beneficiaries Bill of Rights for retained asset account recipients at a Friday, November 19, session in Austin, Texas.
National Transportation Safety Board (NTSB) says motorcyclists should be required to wear helmets:
USA Today covered in its Wednesday, November 17, edition the NTSB’s call for mandatory helmet laws for all motorcycle riders in the U.S., a requirement strongly resisted by many cyclists who criticized the NTSB for interfering in state affairs.
Aspen Institute Initiative on Financial Security calls for creation of Security Plus Annuities:
The Aspen proposal calls for new retirees to purchase another layer of Social Security-like income that lasts a lifetime. The private sector and federal government would participate jointly in the sale/administration of Security Plus Annuities, according to the Aspen Institute.
New York Times reports lenders are eager to finance lawsuits:
Large banks, hedge funds and private investors are funding lawsuits involving medical malpractice claims, divorces and class actions against corporations, with the lenders hoping to share in the financial awards expected from these cases, according to this Monday, November 15, NYT article.
Best Week examines regulatory action involving claims-handling software:
The I.I.I.’s Bob Hartwig was quoted in the publication’s front-page story (Monday, November 15) on a New York State Insurance Department investigation into auto insurers’ use of Colossus software, a technology employed by some insurers to improve their bodily injury claims-handling processes.
PCI concerned about NAIC’s proposed model law on surplus lines regulation:
PCI sent a letter to the NAIC saying their model law, billed as the Nonadmitted Insurance Multi-State Agreement, is not aligned with the purpose of the federal Nonadmitted and Reinsurance Reform Act (NRRA), which is aimed at modernizing the surplus-lines sector. National Underwriter covered the debate in aTuesday, November 16, article.
Illinois Congresswoman who backed optional federal charter loses re-election bid:
Rep. Melissa Bean (D-IL), co-sponsor of the National Insurance Act, conceded defeat this week.
Palm Beach Post editorial says future of federal Homeowners Defense Act imperiled:
Randy Schultz, editor of the Post’s editorial page, who had a by-lined piece published in the Sunday, November 14, edition, writes that Rep. Ron Klein’s (D-Boca Raton, FL) electoral loss earlier this month makes it unlikely the federal government will play a larger role in Florida’s reinsurance market. Rep. Klein was a major backer of the Homeowners Defense Act.
Florida Peninsula Insurance seeks property insurance rate hikes:
The Boca Raton-based company’s proposed average statewide increase is 18 percent to 20 percent for home insurance policies without sinkhole coverage and 3 percent to 5 percent for policies with sinkhole coverage, according to this Monday, November 15, South Florida Sun-Sentinel story.
Texans paid the highest homeowners insurance premiums in 2008, NAIC reports:
The NAIC study, released this week, generated major stories in The Dallas Morning News and the Houston Chronicle. The Southwestern Insurance Information Service said it is writing letters to the editor in response to the NAIC report, looking to put the NAIC’s analysis of the Texas property insurance market in context.California’s largest provider of workers compensation insurance to increase premiums in 2011:
The State Compensation Insurance Fund (SCIF) has announced it will raise its rates by an average of 5.2 percent effective January 1, 2011, according to this story in the Orange County Register.
