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, October 19, please email Mike Barry at michaelb@iii.org.
I.I.I.’s PRESIDENT OFFERS COMMENTARY ON INDUSTRY’S FINANCIAL PERFORMANCE DURING THE FIRST SIX MONTHS OF 2011
Dr. Robert Hartwig’s analysis was released on Friday, October 7, the same day the I.I.I., Property Casualty Insurers Association of America (PCI) and ISO issued the January-June 2011 figures. Dr. Hartwig, having reviewed the numbers, noted that, “…profitability slumped amid high catastrophe losses, premium growth remained positive, investment earnings were more robust than anticipated, and policyholders’ surplus remained near its all-time record high.”
I.I.I.’s CHIEF ECONOMIST EXAMINES WHETHER PROPERTY/CASUALTY INSURERS OFFER A CAREER PATH TO YOUNGER WORKERS
Dr. Steven Weisbart’s PowerPoint presentation on this topic was delivered recently at the Griffith Foundation Insurance Education & Career Summit in Atlanta, Georgia.
WALL STREET JOURNAL ARTICLE SAYS UMBRELLA LIABILITY, TERM LIFE AND FLOOD ARE OPTIONAL POLICIES PEOPLE MAY WANT TO BUY
The I.I.I.’s Jeanne Salvatore was quoted in the Saturday, October 8, Wall Street Journal article (subscription required), talking about identity theft coverage. The piece also counseled consumers to be wary of payment protection insurance, cancer and critical illness insurance, and divorce insurance.
USA TODAY REPORTS SAN DIEGO COMPANY AND COLORADO STATE ARE COLLABORATING ON WAYS TO IMPROVE HURRICANE PROJECTIONS
EarthRisk Technologies and Colorado State University’s Tropical Meteorology Project, are collaborating on research that will allow forecasters to extend to 10 days, from the current two-day window, their path projections for tropical storms and hurricanes, according to this Monday, October 10, USA Today article.
PENNSYLVANIA JUDGE UPHOLDS THE RIGHT OF INVESTORS TO PURCHASE ‘STRANGER ORIGINATED’ LIFE INSURANCE POLICIES
U.S. District Judge Christopher Conner’s ruling differs from a recent decision on the practice from a Delaware court, which ruled in favor of the insurance industry. In the case heard by Judge Conner, Principal Life Insurance Co. alleged that a lender and a family trust bought three life insurance policies and failed to disclose their intention to sell these same policies, which provided coverage totaling $35 million, according to this Tuesday, October 11, Wall Street Journal (subscription required) article.
INSURERS WITH MORE THAN $50 BILLION IN ASSETS COULD BE REGULATED BY THE FEDERAL RESERVE UNDER AN FSOC PROPOSAL
The Financial Stability Oversight Council’s (FSOC) proposed rule calls for the Federal Reserve to regulate financial companies that are not banks but have more than $50 billion in assets, and $20 billion in debt. Approximately 30 banks in the U.S. have assets exceeding $50 billion, according to this article, which appeared in the print edition of The New York Times on Wednesday, October 12.
U.S. SENATOR AND A U.S. HOUSE MEMBER, BOTH FROM CONNECTICUT, WADE INTO IRENE-RELATED INSURANCE DISPUTES
U.S. Senator Richard Blumenthal (D-Connecticut) urged State Farm to waive its application of hurricane deductibles in Connecticut at a Tuesday, October 11, press conference. Insurance Journal covered State Farm’s response to the Senator. Meanwhile, Rep. Rosa DeLauro and the Mayor of East Haven, Connecticut, are prominently mentioned in this Monday, October 3, New Haven Register story on the insurance repercussions of Irene. The Hartford Courant’s insurance reporter writes that Irene has prompted the state’s Insurance Department to revisit when hurricane deductibles ought to be applicable.
NORTH CAROLINA NEWSPAPER, INSURANCE COMMISSIONER, PRESSURE FEDERAL GOVERNMENT TO SHARE MORE INFORMATION ON ITS IRENE RESPONSE
The Outer Banks Sentinel filed a complaint on Tuesday, October 11, with the U.S. Department of Homeland Security’s (DHS) Office of Inspector General, saying that the newspaper and the general public, should be entitled to receive a list of federal National Flood Insurance Program (NFIP) certified insurance adjusters who are allowed to work in North Carolina. In a related development, Insurance Commissioner Wayne Goodwin is calling for a Congressional investigation into FEMA because some NFIP policyholders in North Carolina have not as yet received a visit from an adjuster for an Irene-related claim.
SOUTH FLORIDA, TAMPA-AREA ARE DRIVING MOST OF THE GROWTH FOR FLORIDA CITIZENS PROPERTY INSURANCE CORPORATION
Sharon Binnum, Citizens’ chief financial officer, told a panel of state senators that South Florida and the Tampa area are the cause of most of the growth in the state-created property insurer of last resort. She said that of the new business coming into the company, 42 percent is from the southern counties of Dade, Broward and Palm Beach, while 29 percent is from Hillsborough, Hernando, Pasco and Pinellas counties in the Tampa area. Julie Patel covered the hearing for the South Florida Sun-Sentinel.
I.I.I. MEETS WITH THE EDITORIAL BOARDS OF THE SOUTH FLORIDA SUN-SENTINEL AND THE PALM BEACH POST
The I.I.I.’s Lynne McChristian was joined by John Rollins, a newly-appointed Citizens board member and occasional I.I.I. consultant, along with former Florida state lawmaker Don Brown, for a discussion about Florida’s property insurance market with the South Florida Sun-Sentinel’s editorial board. The session was also summarized in this Wednesday, October 12, blog post. McChristian and Brown, who has done some consulting work for the Reinsurance Association of America, also visited The Palm Beach Post’s editorial board recently, where Post editorial page editor Randy Schultz wanted to focus on the chances of Congress creating a natural catastrophe fund, and how the reinsurance market impacts Florida’s property insurance premiums.
LOUISIANA INSURANCE COMMISSIONER’S ELECTION TO BE HELD ON SATURDAY, OCTOBER 22
The Baton Rouge Advocate offered in this Friday, October 7, article a preview of the Saturday, October 22, statewide election for insurance commissioner. The contest centers on differing approaches to lowering insurance premium rates, the story states. Incumbent Commissioner Jim Donelon, a Republican seeking re-election to another four-year term, says he prefers to create a competitive business environment, but his challenger, Democrat Donald Hodge Jr., says he wants an insurance department that protects consumers more than it helps the insurance industry.
MISSISSIPPI’S HIGHEST COURT DOCKET INCLUDES CASE DATING BACK TO HURRICANE KATRINA
The Mississippi Supreme Court is deciding a wind versus water case in which the National Flood Insurance Program (NFIP) paid the owners of a Pascagoula, Mississippi, home damaged by storm surge from 2005’s Hurricane Katrina, according to this Sunday, October 9, Biloxi Sun Herald article.
MOBILE PRESS-REGISTER REPORTER TO JOIN ASSOCIATED PRESS’ (AP) JACKSON, MISSISSIPPI, BUREAU
Jeff Amy, who covered Alabama insurance issues closely while with the Mobile Press Register, is moving to the AP’s Jackson, Mississippi bureau, according to this Wednesday, October 12, Associated Press story.
OHIO’S INSURANCE DEPARTMENT NAMES A NEW DIRECTOR OF COMMUNICATIONS
Chris Brock was appointed to that post as of Tuesday, October 11, according to this news release from Ohio Lieutenant Governor and Department of Insurance Director Mary Taylor. Brock previously served as the Insurance Department’s Exchange Outreach Coordinator, where he was responsible for policy and outreach for health insurance exchange planning.
MICHIGAN HOUSE COMMITTEE APPROVES BILL THAT EYES LIMITS ON NO-FAULT AUTO INSURANCE COVERAGE
The Grand Rapids Press reports that the legislation, if enacted, would change the state’s no fault auto insurance system. Rather than provide unlimited lifetime benefits, the bill calls for allowing drivers to buy $500,000, $1 million, or $5 million in coverage. Insurance Commissioner Kevin Clinton supports reforming the current system, the article explains, believing caps on coverage would help the Michigan Catastrophic Claims Association’s solvency, and result in lower insurance premium rates. The I.I.I. testified on the issue earlier this month.
NORTH DAKOTA OFFICIALS MEETING WITH FEMA TO DISCUSS WHETHER FLOOD-DAMAGED HOMES CAN BE SALVAGED
David Miller, FEMA’s associate administrator for federal insurance and mitigation, is meeting on Thursday, October 20, with North Dakota state and local officials to discuss the fate of about 4,000 homes that were either damaged, or are deemed to be at risk, because of the Missouri and Souris River flooding from earlier this year. The severe floods prompted the June 2011 evacuation of more than 11,000 people from Minot, North Dakota.
CALIFORNIA’S STATE COMPENSATION INSURANCE FUND (SCIF) SAYS IT WILL ELIMINATE UP TO 25 PERCENT OF ITS FULL-TIME POSITIONS IN 2012
Tom Rowe, the SCIF’s chief executive, said last week that the state-run company will eliminate as many as 1,800 positions by the end of June 2012 to make its operations more efficient and cost effective. The job cuts are expected to save the fund approximately $350 million annually, according to this Friday, October 7, Los Angeles Times article.
NATURAL GAS COMPANIES MUST INSTALL AUTOMATIC AND REMOTE SHUT-OFF VALVES WHERE NEW PIPES CROSS EARTHQUAKE FAULT LINES
On Friday, October 7, California Governor Jerry Brown signed into law legislation that emerged after the deadly Pacific Gas & Electric pipe explosion in San Bruno, California in September 2010, according to this San Jose Mercury News article.
VIRGINIA NUCLEAR POWER PLANT, 12 MILES FROM THE EPICENTER OF THE AUGUST 2011 EARTHQUAKE, REMAINS CLOSED
The Nuclear Regulatory Commission (NRC) announced on Monday, October 3, that it had found no structural damage at the North Anna Power Station but the Dominion Resources-owned nuclear facility will likely not reopen for weeks or even months, according to this front page story in The Richmond Times-Dispatch.
BANK RATE TO PURCHASE INSWEB’S INSURANCE LEAD GENERATION AND MARKETING BUSINESS FOR $65 MILLION
The publicly traded, California-based InsWeb has about 60 employees in Rancho Cordova and San Francisco, according to this Monday, October 10, Sacramento Bee story on the transaction.
SOCIAL MEDIA REPORT
–Some insurance companies have been increasingly mining social networking websites such as Facebook to see whether customers are engaging in risky behavior, or committing insurance fraud. The I.I.I.’s Salvatore is quoted in this Thursday, October 6, segment on the topic from WUSA9 in Washington, D.C.
–Both @iii.org and @III_Research made a list of the Top 50 Insurance Experts to Follow on Twitter. A number of large insurance companies are also on the list that is put out by entrepreneurship expert, Evan Carmichael.
–The I.I.I.’s news release from last week about having a renters insurance checklist continues to get social media pick-up and was the most popular I.I.I. tweet of the week.
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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