To recap the issues raised during this week’s conference call, here are the key media stories we discussed, and the messages we’re conveying.
If there is a subject you would like to see addressed on Wednesday, October 12, please email Michael Barry at michaelb@iii.org.
HURRICANE MATTHEW BARRELS TOWARD FLORIDA, CAROLINAS AND NORTHEAST COAST
I.I.I. guest speaker Phil Klotzbach (@philklotzbach), Research Scientist, Department of Atmospheric Science at Colorado State University, provided an overview of what models project for wind, flood and storm surge from Hurricane Matthew.
The I.I.I. sent out a press release Tuesday, October 4, which looked at evacuation areas in Florida, the Carolinas and the East Coast and promoted the I.I.I.’s Know Your Plan and Know Your Stuff Apps. A media advisory was issued on Wednesday, October 5, providing a list of experts available to discuss insurance implications of Hurricane Matthew. In addition, the I.I.I. put out a joint release the same day with the South Carolina Insurance Association on hurricane preparedness, insurance coverage and evacuation.
I.I.I. COMMENTARY ON ISO’S FIRST HALF FINANCIAL RESULTS AVAILABLE
The Commentary, developed by Dr. Steve Weisbart, notes that for three successive years, property/casualty insurers produced an underwriting profit. The streak continued in the first quarter of 2016, but appears to have ended in 2016’s second quarter. Incurred losses and loss adjustment expenses spiked by 8.1 percent in the second quarter (compared to the second quarter of 2015) and by 7.2 percent for the first half of the year.
LABOR DEPT. CALLING FOR “EXPLORATION” OF FED OVERSIGHT AND FED MINIMUM BENEFITS, NPR/PROPUBLICA REPORT
The Labor Department is calling for "exploration" of federal oversight and federal minimum benefits, ProPublica’s Michael Grabell reported for NPR. The report was prompted by a letter last fall from 10 prominent Democratic lawmakers, who urged Labor Department action to protect injured workers in the wake of a ProPublica/NPR series “Insult to Injury” on changes in workers' comp laws in 33 states.
STORIES IN THE WORKS
The I.I.I.’s Loretta Worters was interviewed by Consumer Reports’ Anthony Giorgianni (agiorgianni@consumer.org) about home insurance coverages people may not be aware of including drones, headstones and counterfeit cash.
The I.I.I.’s Jim Lynch will be speaking with Boston Globe’s Deirdre Fernandes (deirdre.fernandes@globe.com) about how insurers are preparing for self-driving cars, if they are going to have to incorporate them into their policies soon, and whether there is fear that the insurance industry could shrink significantly, as some consultants are predicting due to this technology.
Ms. Worters was interviewed by CBS Moneywatch and CNBC for stories about flood insurance and the insurance implications of Hurricane Matthew.
STATES
California
Los Angeles’ NBC affiliate (KNBC-TV) broadcast a segment about a public adjuster who is alleged to have stolen the insurance proceeds given to a West Lancaster couple whose home was destroyed by fire two years ago. The NBC story was generated in part by the Insurance Department’s arrest of a 60-year-old San Clemente man who was doing business as Statewide Claims Advisors.
An auto body repair shop publication is tracking proposed modifications to an Insurance Department regulation governing the state’s anti-steering rule. The rule would loosen a requirement that insurers back up statements made to a customer about the policyholder’s choice of body shop but also changing the scope of what could be an improper statement.
Florida
WTSP-TB (CBS) – Tampa Bay, FL, 10 News This Morning, cited the I.I.I. on what consumers can do as Matthew approaches, including evacuation, taking a home inventory and overall hurricane preparedness and insurance preparedness.
The president declared a major disaster exists in the areas affected by Hurricane Hermine, making individual assistance available in eight counties and federal funds accessible to municipalities in 14 counties.
The National Council on Compensation Insurance (NCCI) has proposed a 14.5 percent rate increase in Florida, amending its filing exactly one week after the state's insurance commissioner rejected the previous proposal for a 19.6 percent rate hike, the Miami Herald reported.
Georgia
A state of emergency has been declared in 13 Georgia counties due to Hurricane Matthew, it was reported in the Atlanta Journal Constitution.
Iowa
The president declared a major disaster exists in the areas affected by severe storms, straight-line winds, and flooding (August 23-27), making federal funding available to state and local governments in eight counties.
Kansas
Kansas Insurance Commissioner Ken Selzer announced that many businessowners in the state will pay less for workers’ compensation insurance in 2017. It will be the second consecutive year for workers’ comp rate decreases in Kansas, according to the Insurance Journal.
Louisiana
Hundreds of Denham Springs residents face the possibility of having to elevate their homes, according to the Baton Rouge Advocate.
The Baton Rouge Advocate also reported that August 2016’s flood damage in Ascension Parish may not have been as devastating as initially feared, according to the Parish’s Assessor.
Ohio
The state’s Bureau of Workers' Compensation (BWC) said that a new rule governing the prescribing of opioids to treat Ohioans injured on the job took effect on October 1, it was reported in the Insurance Journal.
Oklahoma
A 3.5-magnitude earthquake struck northern Oklahoma on Tuesday morning, October 4, hitting the same spot where a record-setting temblor was centered a month ago, it was reported by AP and picked up in the Oklahoman.
The Oklahoma Department of Public Safety says traffic-related fatalities in August were higher than the same month a year ago, according to the Insurance Journal. Preliminary information indicates there were 67 fatalities in August, up from 52 deaths in the same month in 2015. DPS says 58 victims were Oklahoma residents.
SOCIAL MEDIA REPORT
Hurricane Matthew Storm
Hurricane Matthew has remained a trending topic on social this week. The I.I.I. recently tweeted interactive graphics created by Reuters that tracks forecast positions and displays historical hurricane data. This tweet has received strong interest among users, with a total of 70 engagements including 50 link clicks. National Hurricane Center Director Rick Knabb also held a live Periscope Tuesday, October 4, discussing the center’s storm surge warning guide. Be on the lookout for more of these updates and streaming events by following the National Hurricane Center on Twitter at @NWSNHC and @NHC_Atlantic and Rick Knabb at @NHCDirector. Good Morning America also covered the hurricane October 5, covering food and supplies, the state of emergency in the Southeast US, and a tracking update with Rick Knabb. I.I.I. will also continue to promote its Know Your Plan evacuation app and Know Your Stuff home inventory app. Follow the conversation using #KYSApp.
NPR Story on Workers’ Comp
NPR tweeted a story on The Department of Labor calling for a federal oversight of state workers’ comp laws. The tweet currently has 12 retweets and 22 likes. This story is part of an ongoing ProPublica/NPR series on what ProPublica believes are vanishing worker protections. You can follow the author of the story and NPR Investigations Correspondent Howard Berkes on Twitter at @hberkes for further updates. The I.I.I. will continue to monitor the story on social in the days to come.
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.
