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, September 9, please email Mike Barry at Michaelb@iii.org.
California wildfires generate national, international media coverage:
Candy Miller of the Insurance Information Network of California (IINC), briefed the group on the latest wildfire-related developments, stating IINC had done more than 24 media interviews to date, many with major outlets, on the insurance repercussions of these events. I.I.I.’s Neil Liebman, who edits the I.I.I. Daily and speaks fluent French, gave a taped interview to Radio Canada reporter Carole Graveline on the situation in California. The I.I.I. also issued the following news release, Wildfires Pose Threats to Many Parts of the Country, Not Just California.
This Wednesday, Sept. 2, Los Angeles Times story said firefighters in Southern California had been aided by higher humidity and slightly lower temperatures as they moved closer to controlling the huge fire that burned through the San Gabriel Mountains. On Monday, Sept. 1, firefighters worked to prevent blazes fanned by gusty winds from reaching the top of Mt. Wilson, where a historic observatory and a complex of communications towers used by 50 radio and TV stations are located. By the end of the day on Tuesday, Sept. 2, the blaze was 22 percent contained, compared to 5 percent at the end of the previous day.
Hurricane Jimena set to make landfall in Mexico, not far from southern California:
USA Today reported in its Wednesday, Sept. 2, edition that Hurricane Jimena had weakened to a Category 2 storm, with maximum sustained winds down to about 105 mph. The storm was expected to weaken further as it bore down on the coast of Mexico's Baja California peninsula. Baja California Sur state officials were prepared to shelter up to 29,000 people as Jimena moved northward. Jimena's core was expected to pass near or over southern Baja California on Wednesday, Sept. 2, and the central part of the peninsula late the same day or early on Thursday, Sept. 3, according to the U.S. National Hurricane Service. Forecasters said five to 10 inches of rain from the storm could fall in Baja.
North Carolina governor signs the Beach Plan reform bill into law:
PCI and the Insurance Federation of North Carolina briefed everyone on HB 1305, the Beach Reform bill which Governor Bev Perdue signed into law last week. The measure’s major provisions: the law caps assessments on private insurers at $1 billion. In the past there was no limit on these potential assessments. To further strengthen its financial standing, the Beach Plan, known formally as the North Carolina Insurance Underwriting Association, is also now limited to writing homes valued at no more than $750,000, down from $1.5 million. Moreover, the Beach Plan's surpluses will be retained each year, not distributed back to member insurers. Insurance Journal offered additional details on Thursday, Aug. 27.
I.I.I. releases its updated residual white paper:
As the 2009 Atlantic hurricane season enters its peak period, the finances of a number of residual market property plans in hurricane-exposed states are on shaky ground. The credit crunch and prolonged economic downturn have exacerbated the already vulnerable financial condition of certain plans, making it more difficult for states to borrow funds, according to the just revised Insurance Information Institute (I.I.I.) white paper, Residual Market Property Plans: From Markets of Last Resort to Markets of First Choice. I.I.I. developed a press release and blogged on the issue.
I.I.I. offers pointed response to Mobile Press-Register story on Alabama’s coastal property insurance market:
The headline of this Monday, Aug. 31, piece in the Mobile Press-Register is the first sign something is amiss (As Private Insurers Reap Profits, Alabama Beach Pool Strains to Cover Homeowners). I.I.I. worked with reporter George Altman on the story and urged him to focus exclusively on homeowners multiple peril profit figures when assessing the financial condition of the state’s homeowners insurance market and sent the attached letter to the Press-Register on Wednesday, Sept. 2.
I.I.I. hosting webinar for journalists on ‘Annuities 101’:
I.I.I. Chief Economist Dr. Steven Weisbart will deliver a Power Point presentation on the topic on Wednesday, Sept. 9, at 11 a.m., ET. A media advisory was developed and sent to reporters to register for the event.
Florida Hurricane Catastrophe Fund’s financial position improved between October 2008 and May 2009:
The hurricane "cat fund," which provides backup coverage for insurance companies, has seen its borrowing power improve from an estimated $3 billion last October to $8 billion in May. Insurers also are relying less on the state fund and turning more to the private marketplace for backup. As a result, the state sold only $4.4 billion of an authorized $10 billion in backup coverage,” this Associated Press story on a Florida State Board of Administration meeting states. The Miami Herald picked up the AP dispatch.
Wall Street Journal reports home builder’s 2005 Florida purchase expanded its Chinese drywall exposure:
Hovnanian Enterprises Inc., a publicly-traded home construction company, may have broadened its exposure to the Chinese drywall issue via its acquisition four years ago of First Home Builders of Florida, “in a cash deal that gave Hovnanian the top market position in what was then a booming Fort Myers-Cape Coral region,” according to this Wednesday, Sept. 2, Wall Street Journal article (subscription required).
Connecticut’s attorney general calls for federal investigation into auto insurer ‘steering’ of business to certain auto body repair shops:
Connecticut Attorney General Richard Blumenthal called on U.S. AG Eric H. Holder, Jr. to investigate and stop insurance company practices that may deny consumers the right to choose their own automobile repair shop. Blumenthal issued a press release Tuesday, Sept. 1. A Bloomberg news story on the AG’s announcement includes quotes by I.I.I. and PCI . The story also appeared in the hard-copy edition of the Wednesday, Sept. 2, Hartford Courant.
Texas Department of Insurance (TDI) to examine TWIA’s denial of hurricane Dolly, Ike claims:
“At the heart of the issue: the (Texas Windstorm Insurance) association’s practice of denying claims for lifted or unsealed shingles,” writes Houston Chronicle reporter Purva Patel, whose Friday, Aug. 28, article also linked to a TDI hearing notice on TWIA’s claims-denial practices. It is set for Dec. 1, 2009 in Austin, Texas.
Galveston Daily News assesses the just-enacted TWIA reform bill:
Texans repairing or restoring properties damaged from either hurricane Dolly or Ike are exempt from the Texas Department of Insurance’s new rules governing House Bill 4409, the TWIA reform law enacted earlier this year, according to the story New Windstorm Rules Go into Effect by Laura Elder.
California’s former insurance commissioner wins Congressional primary; favored to win general election:
Lieutenant Governor John Garamendi, a former California insurance commissioner, was the top vote-getter in a Tuesday, Sept. 1, special congressional election and is heavily favored to win the election on Tuesday, Nov. 3; a seat held previously by Rep. Ellen Tauscher. The Washington Post filed this story on Wednesday, Sept. 2.
California’s insurance commissioner sues governor over proposed partial sale of State Compensation Insurance Fund:
The Sacramento Bee reported in this Thursday, Aug. 27 article that if Insurance Commissioner Steven Poizner prevails, it could “open a $1 billion hole” in California’s state budget deal.
New York’s Gannett-owned Journal News dismisses its entire business news staff:
The individuals affected by the paper’s dramatic cutbacks were business editor Mike Bieger and reporters Julie Moran Alterio, Jerry Gleeson and Jay Loomis. The former business editor, who was most recently data desk editor, Frank Brill, was also laid off, according to this journalism industry Web site. The Journal News is a daily newspaper which covers Westchester and Rockland counties, just north of New York City.
Associated Press prepping piece on saving money on auto insurance:
Detroit-based AP reporter Kimberly Johnson (313-259-0650, ksjohnson@ap.org) is looking at the best ways to save money on auto insurance if you’ve traded in your ‘clunker’ for a new vehicle.
Associated Press looking at homeowners insurance and volcanoes:
Hawaii-based AP reporter Herbert Santle (Phone: 808-536-5510), who has spoken with I.I.I. president Bob Hartwig about the issue, is exploring whether Hawaii’s homeowner’s insurers are reducing their exposure in the state amid concerns about volcanoes/lava flow.
Money looks at filing an insurance claim:
Money’s New York-based Ismat Mangla (212-522-7658, ismat_mangla@moneymail.com) is doing a story about things you do not want to say or do when filing an insurance claim.
G-20 Summit and Business Insurance:
The Pittsburgh Post-Gazette’s Steve Stwedt (412-263-1963, stwedt@post-gazette.com) is prepping a business insurance piece in advance of the G-20 summit gathering, to be held in Pittsburgh on Sept. 24-25, 2009. G-20 summits have in the past drawn demonstrators who’ve damaged property and shut down businesses: what coverage should a Pittsburgh business have?
Uninsured Motorists in the US focus of Insure.com story:
Insure.com’s Peter Lewis (peter.lewis@yahoo.com) is pulling a story together on uninsured motorists in the U.S. Lewis has read the Insurance Research Council’s January 2009 study on the issue but wants to explore what states are doing to reduce the number of uninsured drivers, and to quantify, if possible, the costs borne by insured motorists because of uninsured motorists.
Former Forbes insurance reporter hired by AOL:
Carrie Coolidge was offered a position with AOL to co-run a website they own called "Luxist.com". She will be responsible for launching a new project for them, which is going to involve selecting and writing about "the best of breed" on a variety of categories including wines, resorts, spas, restaurants, etc. She will also be contributing to their websites Daily Finance and WalletPop, which will make use of her personal finance and insurance expertise. Her first day will be Tuesday, Sept. 8. I.I.I.’s Loretta Worters will be meeting with her soon after to discuss possible insurance stories.
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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