To recap the issues raised during Wednesday’s conference call, here are some of the key media stories, and the messages we’re conveying.
I.I.I. conference call with National Underwriter about National Association of Insurance Commissioners-related article:
Since our Wednesday, September 22, media call,theI.I.I. conveyed to National Underwriter (NU) reporter Mark Ruquet on Friday morning, September 24, the concerns some of the I.I.I.’s member companies had about NU’s coverage of University of Minnesota associate professor Daniel Schwarcz’s remarks on homeowners insurance policy forms at the August 2010 National Association of Insurance Commissioners’ (NAIC) meeting. The takeaways: the I.I.I. will submit a written rebuttal to NU to counteract Schwarcz’s primary assertions. The NU’s Ruquet, for his part, said he’s willing to incorporate industry reaction into future NAIC stories so long as those viewpoints are given to Ruquet shortly after the meeting concludes or if the industry makes remarks during the NAIC proceeding at which the criticism is leveled.We will also brief the group on this issue during the call tomorrow (Wednesday, September 29).National Association of Insurance Commissioners’ consumer representative to discuss insurance regulation at Chicago law firm’s Friday, October 1 conference:
The Chicago Daily Law Bulletin (see story on right side of the law firm’s website) published in its Tuesday, September 21, edition a preview of the Childress Duffy-sponsored event, The Next Crisis: Managing the Risk that Your Insurance Doesn’t Work. The Bulletin story includes a quote from the I.I.I.’s Mike Barry and notes that the seminar’s keynote speaker is Jay Feinman, author of Delay, Deny, Defend. Professor Schwarcz and Illinois Insurance Director Michael McRaith are presiding at a “regulatory reviews” session. The gathering will be held at the Gleacher Center in Chicago, IL, between 1:30 p.m. and 6 p.m.
Colorado’s Boulder-area wildfires caused $200 million-plus in insured losses; they are believed to be the costliest wildfires in the state’s history:
The Monday, September 20, edition of the Boulder Daily Camera said the wildfires northwest of that city earlier this month generated $217 million in insured damages. The Fourmile Fire, which destroyed or damaged nearly 170 homes and burned 6,181 acres, was the most expensive fire in Colorado’s history, the article states. Besides burned houses, insurance claims, which will likely increase as homeowners have a year to file, include claims for smoke damage, additional living expenses and damaged vehicles.
New York City tornadoes may rival 1985’s Hurricane Gloria in tree damage:
NY1, the all-news cable station covering New York City, reported on Thursday, September 23, that the tree damage resulting from this month’s tornadoes could equal that caused by the last major hurricane to make landfall in the New York City area. The I.I.I. did live and taped interviews with the city’s ABC, Fox and NBC television affiliates, as well as National Public Radio and the New York Daily News, about coverage issues after the tornadoes swept through the metropolitan region on Thursday evening, September 16.ABC’s Good Morning America (GMA) mentions the I.I.I.’s knowyourstuff.org on-air during Homeowners Insurance 101 segment:
GMA on-air contributor Mellody Hobson did a piece billed as Homeowners Insurance 101 on Thursday morning, September 16, and Hobson touted the free, downloadable knowyourstuff.org when mentioning the importance of having a home inventory.Wall Street Journal (WSJ) examines growing sinkhole problem in Florida and what it means for insurers:
The I.I.I.’s Lynne McChristian provided extensive information to the WSJ but was not quoted in this story, which appeared on the front page of the paper’s Money & Investing section on Tuesday, September 21 (subscription required). Regulators attribute the recent increase in the number of property insurance claims in Florida involving sinkholes to public adjusters who have begun using fliers, billboards, websites and phone solicitations to recruit policyholders. Citizens Property Insurance Corporation says it now receives approximately 200 sinkhole claims a month, nearly twice the number as last year. Susanne Murphy, chief administrative officer of Citizens, expressed alarm to the WSJ about the increase, and some Florida officials say that sinkhole claims could lead to the insolvency of weaker, smaller insurers, including some the state helped to enter the market in order to increase property insurance affordability and availability.
USA Today offers detailed analysis of the financial strains on state-run property insurers of last resort:
A major hurricane in the southern U.S. could have economic effects on communities far away from the coast as millions of property owners would be required to pay large insurance surcharges to help cover the costs of claims on damaged homes, USA Today reporter Thomas Frank writes, in this Wednesday, September 22, piece. Such surcharges resulted from Hurricane Katrina in 2005. The I.I.I.’s Bob Hartwig spoke with Frank but is not quoted in the piece. The story notes that in Katrina’s aftermath thousands of homeowners in the Southeast and along the Gulf Coast could not obtain insurance from private companies and turned to poorly financed state plans for coverage. The state plans typically have small cash reserves and are allowed by state law to levy surcharges on other insurance companies and policyholders throughout the state.
Front page story in New York Times looks at defective Chinese drywall issue but insurance is barely mentioned:
Drywall Flaws: Owners Gain Limited Relief appeared in the paper’s Saturday, September 18, hard-copy edition.New York Times (NYT) reporter prepping piece on auto insurers’ interest in offering pay-per-drive policies:
The I.I.I.’s Hartwig spoke this week with Maryland-based NYT Gadgetwise blogger Roy Furchgott about pay-per-drive policies. Furchgott is interested in the topic because two auto insurers, State Farm and Automobile Club of Southern California, are seeking California’s permission to offer policies tied to miles driven. Texas-based MileMeter was also mentioned by the reporter and may find its way into the story.
Philadelphia Inquirer exploring delay in getting insurance payments to owners of fire-damaged condo in Cherry Hill, New Jersey:
New Jersey-based Inquirer reporter James Osborne is looking into the plight of a Cherry Hill, NJ, condominium development damaged by fire 11 months ago; the reporter would not disclose the name of the insurer who covers the condo, and it is unclear whether this will turn into a story.
U.S. House and U.S. Senate vote to extend National Flood Insurance Program (NFIP) through September 30, 2011:
Since the call, the U.S. House of Representatives and the U.S. Senate acted to extend the NFIP for one year. The I.I.I. issued a media advisory in advance of the Wednesday, September 22, U.S. Senate Banking committee hearing on NFIP’s reauthorization.U.S. House subcommittee hears testimony on the potential link between two Iowa egg farms and this summer’s salmonella outbreak:
The Associated Press’ account of the Wednesday, September 22, D.C. hearing is here.Texas state lawmaker continues to press Texas Windstorm Insurance Association (TWIA) for details on legal fees paid as part of TWIA settlement agreement:
TheInsurance Journal offered this update on Thursday, September 23, regarding Texas Representative Larry Taylor’s bid for documents about a Hurricane Ike-related settlement totaling more than $180 million.Florida’s gubernatorial candidates spar over level of premium rate increases Citizens’ policyholders are likely to see:
Rick Scott, the Republican candidate, and chief financial officer Alex Sink, the Democratic nominee, offered their views on the future of Citizen’s Property Insurance in this Tuesday, September 21, South Florida Sun-Sentinel article.Mississippi’s insurance commissioner rejects Allstate’s request for a homeowner’s insurance policy premium rate increase:
Mississippi Insurance Commissioner Mike Chaney rejected Allstate Property and Casualty Insurance Company’s requested 44 percent statewide rate increase, adding that only a court order would make him approve it. The Biloxi Sun Herald had more on the matter in its Monday, September 20, online edition.Everett (WA) Herald editorial board supports ballot proposition that would open state’s workers’ compensation market to private insurers:
Initiative 1082, which will be on the ballot in the state of Washington on Tuesday, November 2, has the support of this newspaper because “…there’s simply no compelling reason for Washington to be one of only four states where government holds a monopoly on workers’ comp insurance. It’s an archaic system our economy can no longer afford.”
Seattle Times editorial board criticizes state agency for remaining quiet on issue of 2011 workers compensation rates prior to vote on Initiative 1082:
“The [Washington] state Department of Labor and Industries said Wednesday [September 15] it would not release its proposed workers’ compensation rate increases for 2011 until after the Nov. 2 election — more than two months late. This is the wrong decision,” a Thursday, September 16, Seattle Times editorial stated. “L&I’s people say the agency wants to stay out of the argument over Initiative 1082, which would allow private carriers into its market. But by not announcing next year’s proposed rate increase when it usually does, L&I injects itself into the argument it is trying to stay out of.”
