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, November 25, please email Michael Barry at michaelb@iii.org.
Auto insurance premiums are 4.6 percent higher in October 2009 than they were in October 2008.
This is according to the U.S. Department of Labor’s October 2009 figures for the consumer price index (CPI), which were released on Wednesday morning, November 18. Hospital services (+6.9 percent) appear to be the biggest cost driver.
Insurance Institute for Highway Safety (IIHS) reduced to 27 from 94 the number of its ‘safest vehicles’:
The reason for the shift is that IIHS has modified its roof strength standards for the 2010 model year, resulting in only 19 cars and eight sport utility vehicles winning recognition. The Top Safety Pick award winners are listed in this Wednesday, November 18, press release.
Florida’s insurance commissioner believes State Farm may continue to insure property in Florida:
Commissioner Kevin McCarty elaborated on the subject in a Friday, November 13, Miami Herald story.
Government Accountability Office (GAO) says employers and workers tend to underreport injuries and illnesses:
The GAO attributed the underreporting to employers’ concerns about increasing the cost of workers compensation insurance, or not being awarded contracts. The GAO also found that workers are reluctant to report workplace injuries because they fear losing their jobs or being disciplined, according to a Monday, November 16, New York Times article.
Fitch Ratings report says U.S. life insurers may lose up to $23 billion on commercial real estate investments through 2011.
Life insurer losses on investments in apartment buildings, offices, shopping malls and other commercial real estate will begin to increase in the next six months to a year as rents decline and vacancies increase, according to Fitch senior director Andrew Davidson, who is cited in a Tuesday, November 17, Bloomberg News wire story. The I.I.I.’s Claire Wilkinson wrote about Fitch’s findings on Thursday, November 19, on her Terms + Conditions blog.
Ten state attorney generals back U.S. Senator’s bid to repeal health and medical malpractice insurers’ federal antitrust exemption:
The AGs from Arizona, Connecticut, Florida, Iowa, Maine, Massachusetts, Montana, Oregon Vermont and Wyoming support passage of the Health Insurance Antitrust Enforcement Act, according to a Tuesday, November 17, press release issued by U.S. Senator Patrick Leahy (D-Vermont).
USA Today looks at aftermath of Tropical Storm Ida in Virginia, North Carolina:
Numerous area in Norfolk, Virginia, as well as coastal North Carolina communities were flooded after a Nor’easter combined with remnants of Tropical Storm Ida on the weekend of November 14-15, 2009, the Monday, November 16, edition of USA Today reports.
NAIC selects Pacific Investment Management Co. (PIMCO) to be their ‘third party financial modeler’:
Regulators have in the past depended on major ratings firms to assess potential risks housed in the 18,000-plus bonds held by U.S. insurers, the Wall Street Journal reported on Wednesday, November 18 (subscription required). PIMCO will now play a role in advising regulators on the reserve levels insurers are required to hold in 2009 to cover potential losses on these same bonds. The National Association of Insurance Commissioners (NAIC) issued a release on the PIMCO selection.
U.S. Senate’s health care plan may have long-term care (LTC) insurance provision:
Senate Majority Leader Harry Reid (D-Nevada) is expected to include in the U.S. Senate’s healthcare bill an LTC program that would provide money for people who become disabled; a similar provision is part of the healthcare legislation approved by the U.S. House, according to the Wednesday, November 18, edition of the Wall Street Journal. The LTC program would deduct premiums from the paychecks of employees who choose to participate.
Louisiana congressman’s bill would prohibit insurers from issuing non-renewals to homes with defective Chinese drywall:
The Drywall Victims Insurance Protection Act would prevent insurance companies from cancelling or non-renewing a homeowners’ policies because defective Chinese drywall is found in their home, according to this Tuesday, November 17, press release from U.S. Representative Charlie Melancon (D-Louisiana). The Bradenton (FL) Herald interviewed the I.I.I.’s Michael Barry about the congressman’s proposal late that same day for its Wednesday, November 18, article on the subject.
Texas insurance commissioner says State Farm overcharged some of its homeowners policyholders:
Texas Insurance Commissioner Mike Geeslin announced on Monday, November 16, that the Texas Department of Insurance (TDI) believes State Farm overcharged a number of its policyholders a cumulative total of $310 million between 2003 and 2008. The story was covered in the Houston Chronicle and the Dallas Morning News.
Michigan board of canvassers voted unanimously last week to approve ballot language submitted by Fair Affordable Insurance Rates (FAIR):
FAIR must now obtain a minimum of 304,000 signatures within the next six months in order to place a referendum on the ballot that aims to reduce auto, home and business insurance premiums by up to 20 percent. PCI offered a critique of the FAIR initiative in this Monday, November 9, press release.
BusinessWeek to become Bloomberg BusinessWeek; names new editor:
BusinessWeek appointed 37-year-old Josh Tyrangiel, Time magazine’s deputy managing editor, as editor of BusinessWeek, which will be renamed Bloomberg BusinessWeek, according to a Wednesday, November 18, New York Times article.
Conning Research’s Life Insurance Investments: The Industry Resets from 2008 is now available:
The study examines the impact of the 2008 financial crisis on U.S. life insurers while also offering an analysis of life insurance industry investments between 2004 and 2008. Conning’s report is available for purchase by calling 888-707-1177 or from the company’s Web site at www.conningresearch.com.
Long Island Business News (LIBN) revisiting the issue of downstate New York property insurance non-renewals:
Reporter Laura Glasser (email: glasser.laura@gmail.com), who has not covered the issue in awhile, is scheduled to speak with the New York State Insurance Department (NYSID) about non-renewals, and the NYSID is planning to point out that a number of new property insurers were approved to write in New York since 2007. LIBN is a weekly publication.
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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