To recap the issues raised during Wednesday’s conference call, here are some of the key media stories, and the messages we’re conveying.
National Underwriter willing to publish op-ed responding to consumer advocate’s presentation to the NAIC:
The I.I.I.’s Bob Hartwig, Jeanne Salvatore, Mike Barry andLoretta Worters had a conference call with Mark Ruquet of National Underwriter on Friday, September 24, to convey the concerns expressed by our member companies on the article covering Professor Dan Schwarcz’s presentation to the National Association of Insurance Commissioners (NAIC). The I.I.I. will also write an op-ed this week for the National Underwriter on behalf of the industry rebutting many of Professor Schwarcz’s assertions.
I.I.I. meets with Associated Press Assistant Business Editor Rosenberg:
The I.I.I.’s Worters briefed the group on the breakfast meeting she and Salvatore had last week with Joyce Rosenberg (jrosenberg@ap.org), the Manhattan-based assistant business editor for the Associated Press. Ms. Rosenberg indicated that due to budget cuts at the AP, she is one of the few journalists who follows the insurance industry these days, having filed recent articles on flood insurance for businesses as well as business interruption coverage. Rosenberg said she is looking to write some business stories focusing on specialty coverages (e.g. key person insurance). Two other AP reporters Rosenberg recommended the I.I.I. speak to are Trevor Delaney (tdelaney@ap.org), a New York City-based personal finance editor, and Dave Carpenter (dcarpenter@ap.org), a Chicago-based personal finance writer. Worters is scheduled to have coffee with Carpenter the morning before the I.I.I.’s Communications Committee meeting on Monday, November 1. She has also reached out to Delaney to meet with him in New York.
Texting bans do not reduce frequency of auto crashes, Highway Data Loss Institute (HDLI) study finds:
The HDLI, an affiliate of the Insurance Institute for Highway Safety (IIHS), found there was no reduction in crashes after state laws took effect which banned texting by all drivers. In fact, the HDLI’s analysis determined that such bans are associated with a slight increase in the frequency of insurance claims filed under collision coverage for damage to vehicles in crashes. These findings were based on HDLI comparisons of insurance claims in four states (California, Louisiana, Minnesota and Washington) before and after their respective texting bans took effect, which were then compared with claims patterns in nearby states, according to this Tuesday, September 28, news release from the HDLI. “The point of texting bans is to reduce crashes, and by this essential measure the laws are ineffective,” Adrian Lund, president of both HDLI and the IIHS states. Lund cautions in the release that “finding no reduction in crashes, or even a small increase, doesn’t mean it’s safe to text and drive, though. There’s a crash risk associated with doing this. It’s just that bans aren’t reducing this crash risk.”U.S. Transportation Secretary strongly disputes HDLI’s findings on texting bans and distracted driving:
U.S. Transportation Secretary Ray LaHood issued a statement on Tuesday, September 28, saying the Insurance Institute for Highway Safety and its affiliate, HDLI, “have been working to discredit national anti-distracted driving efforts over the last year.” Secretary LaHood continues: “[The HDLI’s] report is completely misleading. Distracted driving-related crashes killed nearly 5,500 people in 2009 and injured almost half a million more. Lives are at stake, and all the reputable research we have says that tough laws, good enforcement, and increased public awareness will help put a stop to the deadly epidemic of distracted driving on our roads.” The dispute between HDLI and the Transportation Secretary was front page news in USA Today.A.M. Best finds life insurers maintained sufficient liquidity in 2009 while seeking higher yields:
This eight-page report (subscription required) summarizes A.M. Best’s Liquidity Model (AMBLM) results for over 100 U.S. life insurers in 2009. Released on Monday, September 27, the A.M. Best study states: “U.S. life insurance organizations continue to maintain adequate liquidity at their operating companies. The recent economic conditions will continue to pressure mortgage-related assets. The current low interest rate environment will provide challenges to life insurance investment portfolios as companies seek higher yields to cover the always-competitive interest-credited rates on life and annuity products. Attractive credited rates relative to other financial products will continue to drive sales growth of life insurance and annuities.” More than half (51.3 percent) of U.S. life insurers’ aggregate investments were in corporate bonds last year, A.M. Best reports.
Congress approves one-year extension of National Flood Insurance Program; president expected to sign measure into law on September 30:
The National Flood Insurance Program Re-extension Act 2010 allows the NFIP to continue operating through September 2011.U.S. Treasury Department is officially seeking a Federal Insurance Office (FIO) director:
Dow Jones Newswire’s Erik Holm filed earlier this week a story on the federal government’s search for its first FIO director. Candidates must apply for the position no later than Wednesday, October 20, and Illinois Insurance Director Michael McRaith is a likely candidate for the job, according to this Tuesday, September 28, Dow Jones article.
Tropical Storm Nicole’s prospective formation is front page news in the Miami Herald:
Heavy rains and the prospect of tropical storm depression number 16 becoming Tropical Storm Nicole, if the weather system’s wind speeds accelerated in southern Florida, was the Wednesday, September 29, headline on the Miami Herald’s website.
South Florida Sun-Sentinel examines what Citizens policyholders can expect when premium rates rise about 10 percent next year:
Florida’s Office of Insurance Regulation (OIR) released on Monday, September 27, a 12-page spreadsheet detailing the impact of the just-approved premium rate hikes for Citizens policyholders, according to South Florida Sun-Sentinel reporter Julie Patel, who offered a quick primer on the OIR’s findings in this Tuesday, September 28, article.
Florida’s five-year statute of limitations on claims filing becomes news as anniversary of 2005’s Hurricane Wilma nears:
The Sun-Sentinel quoted the I.I.I.’s Mike Barry in a Tuesday, September 28, online story, pegged to the potential filing of new claims, or the re-opening of previous claims, arising out of Hurricane Wilma, which struck Florida on October 25, 2005.
Californians have little use for accident response fees, Insurance Information Network of California (IINC) poll finds:
The IINC’s three questions and responses are detailed here. “Californians overwhelmingly oppose efforts by some cities to charge for fire and police response to traffic accidents, a new poll has found,” this Tuesday, September 28, IINC news release states.New Jersey wants life insurers to use bold print and easy-to-understand language when writing to customers about retained asset accounts (RAAs):
Commissioner Thomas Considine’s Friday, September 24, order offers detailed guidance to life insurers on how they should explain RAAs to policyholders, and asks insurers to furnish additional documents regarding RAAs to New Jersey insurance regulators within the next 150 days.Bloomberg revisits RAA issue, highlighting judge’s remark while downplaying life insurer’s legal victory:
A Nevada judge dismissed a lawsuit against a life insurer earlier this month but Bloomberg’s Tuesday, September 28, article focused instead on the judge’s characterization of the life insurer’s marketing materials, and how it has prompted regulatory action in Nevada and a few other states.
The Institute for Business & Home Safety (IBHS) opening its new Research Center in October 2010:
The Grand Opening for the IBHS multi-risk building science Research Center is being held on Tuesday, October 19. Media will be attending. The Center is on a 90-acre parcel in Chester County, S.C., about a 45-minute drive south of the Charlotte, North Carolina airport. IBHS is also planning a Satellite Media Tour to promote the opening of the Center on Wednesday, October 20.Jackson County, Mississippi Chamber of Commerce backs congressman’s call for allowing NFIP to sell wind coverage:
But Mississippi Congressman Gene Taylor can find few others who have stepped forward to support his Multiperil Insurance Act (House Resolution 1264), including the U.S. Chamber of Commerce, which is the local chamber’s parent organization, according to this Sunday, September 26, article in the Mississippi Press. Rep. Taylor, a Democrat, is facing a strong challenge this year from Steve Palazzo, a Republican, according to the Cook Political Report.Chances of a major earthquake hitting either Arkansas or Tennessee discussed at disaster preparedness forum:
Arkansas has been the site of numerous small quakes over the past six months, according to the University of Memphis’s Center for Earthquake Research Information. The Associated Press spoke to Charles Langton, the Center’s executive director, before filing on Saturday, September 25, this story about a Friday, September 24 disaster preparedness expo for first responders and emergency personnel in Memphis, Tennessee.
