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 15, please email Michael Barry at michaelb@iii.org.
IICF UPDATE ON WEEK OF GIVING PROGRAM
Melissa-Anne Duncan, Executive Director, Western Division of the Insurance Industry Charitable Foundation, provided an update on its Week of Giving program (see attachment).
P/C INSURERS’ NET INCOME ROSE MODESTLY IN FIRST-HALF 2014
ISO issued a news release on Monday, October 6, noting that private U.S. property/casualty insurers’ net income after taxes rose $1.6 billion to $26.0 billion in first-half 2014 from $24.4 billion in first-half 2013. Bob Hartwig’s commentary noted that the industry’s performance in the first half of 2014 was positive, but bore the effects of an extreme winter and several outbreaks of severe spring weather.
OCTOBER MARKS NATIONAL CYBER SECURITY AWARENESS MONTH
The I.I.I. has two press releases in the works around National Cyber Security Awareness Month. The first is a release on identity theft and the other is an advisory on cyber insurance and references the I.I.I.’s white paper Cyber Risks: The Growing Threat, co-authored by Bob Hartwig and Claire Wilkinson.
THREE COMMON HOME INSURANCE GAPS TO FILL
Kiplinger’s Personal Finance November issue offers advice on making sure a home has full insurance protection. Other advice for replacing a home as well as tips concerning high-value belongings and home offices are provided. There is also an infographic tool to see if your home is fully protected, which includes the I.I.I.’s KnowYourStuff.org home inventory.
EVIDENCE THAT DRIVING WHILE HIGH IS DANGEROUS
In Time magazine’s Monday, October 13 issue, it notes that great strides have been made in curbing drunk driving by the police and public-safety advocates. The number of drivers with alcohol in their system, based on random stops, fell to 12.4 percent in 2007 from 35.9 percent in 1973, according to a report by the Department of Transportation. But amidst a trend toward states decriminalizing of marijuana use, identifying drivers who are high on pot is a new challenge for those responsible for keeping roads safe. The article discusses efforts being made to define a legal limit, scientific research being conducted to determine the exact effects of pot on drivers and the development of new instruments to test drivers who are suspected of being high.
TECHNOLOGY TAKES THE WHEEL
Within the next few years, an expanding number of automakers plan to sell vehicles that allow drivers to remove their hands from the wheels and their feet from the pedals and turn over control to the vehicle, according to a New York Times article on Monday, October 6. Experts predict that the concept of driving will change dramatically and automakers are jockeying to be in the front of the market which is expected to be revolutionized in the coming years.
WHAT INSURERS CAN LEARN FROM STATES WORKERS’ COMPENSATION REFORMS
Recent states workers’ compensation reforms have attempted to reduce system-wide costs, benefiting employees, employers, and insurers, although with varying degrees of success, according to a new study by Conning. Workers Compensation Medical Costs: Reforms that Make a Difference is available for purchase by calling (888) 707-1177 or from the company’s website at www.conningresearch.com.
STORIES IN THE WORKS
Bob Hartwig and Jeanne Salvatore were interviewed by Abha Bhattarai (202-334-7465; abha.bhattarai@washingtonpost.com), a staff writer with The Washington Post. Bob spoke with him on Cyber insurance issues and Jeanne spoke with him about identity theft.
Lynne McChristian spoke with Megan Farley with News on 6 in Tulsa, OK (918-698-2655) regarding dog bite liability.
Loretta Worters talked to Ed Leefeldt for an Insure.com story on commercial drones and whether they will be insurable, whether insurance will be required, and who will write the coverage.
SOCIAL MEDIA REPORT
The recent Ebola crisis that has not only affected West Africa but the U.S. and Europe, has been a big topic in social this week. With the news that the first patient in the U.S. to be diagnosed with Ebola has died, the debate over health insurance and protecting our borders has intensified. In response to some of these debates, The New York Times reported that the U.S. will begin Ebola screenings at five U.S. airports.
The I.I.I. has been actively engaged in the Fire Prevention Week campaign (which began October 5) by posting articles, video and content related to fire prevention safety. If you’d like to search for what other companies and people have been posting, you can do so by searching under the hashtag #FPW2014.
Super Typhoon Vongfong, which has now been named the strongest typhoon in 2014 thus far by the Weather Channel, continues to strengthen and is likely to threaten Japan.
CAPITOL HILL
The Federal Emergency Management Agency (FEMA) is accepting comments on the proposed Public Assistance Policy on Insurance, which is posted at the Federal Register. Based on the comments received, FEMA may make appropriate revisions to the proposed policy. FEMA will consider any comments received in the drafting of the final policy. When or if FEMA issues a final policy, FEMA will publish a notice of availability in the Federal Register. The final policy will not have the force or effect of law. Comments must be received by Monday, December 8, 2014.
A new study by the Union of Concerned Scientists predicts that the District of Columbia and nearby Annapolis, Maryland, will be flooded daily by high tides within three decades because global warming will cause sea levels to rise, it was reported in the Wednesday, October 8, Washington Post..
STATES
California
Gov. Jerry Brown has signed Assembly Bill 2064, which aims to change the way Californians learn about earthquake insurance for their homes. AB 2064, authored by Assemblyman Ken Cooley, D-Rancho Cordova, makes updates and improvements to the wording and contents of the mandatory offer of earthquake insurance, according to the Monday, October 6 issue of Insurance Journal.
California became the first state in the nation to add disclosure rules for the mostly unregulated pet-insurance industry. Gov. Jerry Brown signed the bill, AB2056, into law that requires insurers to clearly explain their policies to pet owners, including annual coverage limits and disqualifying pre-existing conditions, it was reported by the Associated Press on Wednesday, October 1.
Georgia
The Weather Channel has reduced its staff by about 40 employees across several cities after consolidating some operations to create a product and technology division, it was reported in the Thursday, October 2 issue of the Atlanta Journal Constitution.
Louisiana
Many southeast Louisiana residents will need to abandon their homes as land sinks and sea levels rise, The Lens reports. According to Tulane University researchers, the region's average elevation is now 3 feet above sea level. But the sea is expected to rise 4 1/2 feet by 2100. That's because the Mississippi River delta is sinking while the Gulf of Mexico is rising, it was reported in the Saturday, October 4 issue of the Times-Picayune.
A state judge in Baton Rouge ruled Monday, October 6, that Louisiana’s Legislature missed its mark when it passed a bill seeking to halt a south Louisiana flood board’s lawsuit against dozens of oil, gas and pipeline companies over coastal damage. The legislation prohibits state agencies and local governments from pursuing such suits. But state District Judge Janice Clark said the Southeast Louisiana Flood Protection Authority-East is neither a state agency nor a local government, it was reported in the Tuesday, October 7 issue of the New Orleans City Business.
U.S. District Judge Eldon Fallon in New Orleans has ruled that a class-action lawsuit involving more than 4,000 property owners who were sold toxic Chinese drywall may go forward, it was reported in the Monday, October 6 issue of the Times-Picayune.
The collapse of a portion of a salt dome that left a 37-acre sinkhole in swampy land west of Baton Rouge has bubbled up into a $50 million dispute between the mine operator and its insurance company. Texas Brine LLC wants the Louisiana insurance commissioner to order the company to pay off on the policy, which was to kick in after the company's other insurers paid more than $75 million in claims in the collapse, according to this Friday, October 3 article in the Biloxi Sun Herald.
Mississippi
Two new studies have found that voice-activated smartphones and dashboard infotainment systems may be making the distracted-driving problem worse instead of better, according to this Tuesday, October 7 issue of the Hattiesburg American.
Oklahoma
More cars and trucks are being equipped with cameras, radar, automatic breaking and other safety technology that help avoid accidents, but drivers may not see their insurance bills go down anytime soon, experts in the auto and insurance industries were quoted in the Thursday, October 2 issue of the Oklahoman.
Oklahomans can learn more about insurance company filings by using a new online tool, according to this Wednesday, October 8 press release issued by the Oklahoma Insurance Department. Oklahomans can visit https://filingaccess.serff.com/sfa/home/OK to search the filings at no cost. Previously, public access was only available through a written request to the Oklahoma Insurance Department (OID) or through a computer at the OID office in Oklahoma City. The website has filings for property, casualty, life and health insurance products.
MEDIA MATTERS
A new insurance website InsuraMatch.com, part of The Plymouth Rock Group of Companies, is set to launch in January. Ron Agrella (ragrella@insurancematch.com) is the executive editor.
Time Warner’s Turner Broadcasting unit is cutting nearly 1,500 jobs – about 10 percent, it was reported in the Tuesday, October 7 online Businessweek. The reorganization is part of an initiative, dubbed Turner 2020, designed to “focus resources and prioritize investment” across the cable channels, the company said in this Monday, October 6 news release.
Alison Caporimo (212-431-7464) has joined BuzzFeed as senior lifestyle editor for the Life vertical. She most recently served as senior associate editor at Reader’s Digest.
Chris Mooney will join The Washington Post on Monday, October 20, as a staff writer covering environment and climate change.
Rob Wile (robert.wile@fusion.net) has joined Fusion Online as a reporter covering economics, energy and the environment. He most recently served as an energy reporter at Business Insider.
Tricia Silva has been named assistant managing editor at San Antonio Business Journal. She was previously a real estate reporter for the publication. She can be reached at tsilva@bizjournals.com; 210-477-0849.
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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