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PIA Western Alliance knows you want to be the best in the field, and the best way to stay on top is to stay informed. PIA Weekly Industry News Brief is an informative e-news brief that delivers the most relevant industry content.

 

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Cyber Attacks — Consumers Want More from Insurance

Posted By staff reporter, Tuesday, February 12, 2019

Consumers want more insurance help with their cyber woes, and potential cyber woes. The why is easy. From automobiles to interconnected homes, just about every aspect of people’s lives are impacted by technology, and that technology is a sieve and easy for hackers to access.

Take automobiles for example. Asaf Ashkenazi of the software company Inside Secure said hackers can use connectivity to access private information and can even use it to steal the car. “The worst-case scenario is that they can completely take over and control anything in your car, from the brakes to the steering wheel,” he said. “The scariest scenario is that you're driving and they make your car crash.”

Then there’s the loss of personal records. The Identity Theft Resource Center’s 2018 End of Year Data Breach Report said 447 million consumers had their personal records compromised last year. That is a 126% increase from 2017.

What’s ironic is the total number of data breaches in 2018 fell by 23%.

Paul Robinson of GreyCastle Security said, “It’s very difficult now to avoid these attacks, even if you're taking the precautionary measures, such as managing your bank account and things of that nature. Now please do that, don't neglect watching your accounts and keeping an eye on your medical records, but the horse has left the barn per se.”

Assurant’s new study, The Connected Now says the connected lifestyle isn’t connecting with everybody. This is where insurance might be helpful. More on that in a bit.

The risk management firm said like it or not, nearly 40% of consumers identify themselves as technophobes. They own an average of 1.3 connected products. These range from smartphones and computers to equipment to manage things in the home.

Those same people — or 78% of them — worry about ID theft and the compromising of their personal information. They point that worried finger at interconnectivity — connectivity they are not that happy with.

Yet, 69% do admit this technology makes their lives easier. 

This is where insurance has an opportunity to shine. Parks Associates — an Internet of Things marketing and consulting company — said its research finds that 40% to 50% of households with access to broadband Internet want additional insurance services.

Parks Associates said this applies to those who own their homes and those renting.

Of those interested, 35% want insurance services that are proactive and that communicate the potential risk of the smart devices in their homes. They want to be updated and warned ahead of time.

Parks Associates spokesman Brad Russell said the insurance they want will take care of the restoration of those services and repair their home after the damage occurs.

“A restoration service that repairs damage is the most appealing service among insured households, but there is strong interest in proactive services, which would be enabled by smart home devices and AI capabilities to detect and prevent risk situations,” he said.

And he noted that advances in technology now let the insured and the insurer connect and interact more easily than ever. “Connected devices are reshaping the way consumers think about many traditional services and how they interact with their service providers,” he added. “These trends in consumer expectations, combined with the wealth of data derived from IoT solutions, are opening significant market opportunities for the insurance industry.”

 

Source links: PropertyCasualty360.com, USA Today, WHEC-TV, Insurance Business America

Tags:  cyber breach  Cyber Security  insurance content  insurance news 

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Around the PIA Western Alliance States

Posted By staff reporter, Tuesday, January 29, 2019


 

California

Montecito Mudslides: Edison International says poorly designed and maintained debris basins are the reasons for the deadly mudslides that hit Montecito last year.

Over 20 people died. Damages to property is estimated at between $177 million and $204 million. The mudslides happened on January 18, 2018 when the first heavy rain of the season hit the top of the mountain above the city and loosed tons of mud and boulders onto the city.

Edison International has been sued for causing the mudslides because its equipment may have been responsible for the fire at the top of the mountain. The company — and its subsidiary Southern California Edison — countersued and blamed the city, the county and its inadequate infrastructure, and how that infrastructure was maintained.

In its complaint, Edison said, “With this cross-complaint we seek to ensure that there is a comprehensive review of the role many parties may have played in the large and tragic losses suffered by the community during the Montecito mudslides,” the company said. “It is well known that the Montecito area has always been at high risk for mudslides and debris flows. We believe that city, county and state governments, including flood control, water and transportation agencies, failed to ensure that Montecito’s infrastructure was adequate to reduce the impact of such natural disasters.”

 

Source link: Insurance Journal

 

Idaho

Medicare Workshops to be Offered in Bonners Ferry: A series of three (3) free Medicare Workshop for individuals turning 65 and those approaching Medicare eligibility will be held Friday, February 1 at the Fry Healthcare Education Center, located across from the main hospital building of the Boundary Community Hospital, 6640 Kaniksu St., in Bonners Ferry.  Workshops will be held at 2:30, 4:30 and 6 p.m.

Caregivers and all those interested in learning how Medicare works are encouraged to attend.

The workshop will be led by Senior Health Insurance Benefits Advisors (SHIBA), a unit of the Idaho Department of Insurance.  SHIBA presenters will introduce the various parts of Medicare and explain some of the vocabulary associated with the program. 

Topics to be covered include:

  Timeframes for enrolling in Medicare

  Enrollment periods for Medigap, Medicare Advantage and Prescription Drug Plans

  How the different parts of Medicare work together — and when they don’t

To register for the workshop, please contact the SHIBA office at 1-800-247-4422.

 

Washington

Wildfire Mitigation Plan: Public Lands Commissioner Hilary Franz has unveiled a 10-year, $55 billion wildfire control plan and given it to the Legislature. The plan will add 30-full time and 40 seasonal firefighters to the Department of Natural Resources. It also adds two helicopters to the firefighting air fleet.

A wildfire training academy that can be used by other agencies will also be set up.

Source link: Claims Journal

 

Commissioner’s Legislative Priority

Click here for Washington Insurance Commissioner Mike Kreidler’s legislative priorities.

Actions by the Commissioner

Insurance Commissioner Mike Kreidler issued fines in December 2018 totaling $192,050 against insurance companies, agents and brokers who violated state insurance regulations.

Insurance companies

Accordia Life and Annuity Co., Des Moines, Iowa; fined $130,000, order 18-0250

Kreidler received 57 complaints about the company in 2016 and 2017 and started an investigation into its practices. The law violations included:

 Failure to maintain full and adequate records of more than 8,600 customer accounts.

Underpaid interest on the death benefit of a policy and failed to correct the problem until the consumer complained to Kreidler’s office. State law requires that insurance companies pay 8 percent interest.

Failed to provide annual statements to 21 consumers.

State Farm Life Insurance Co., fined $10,000, order 18-0410

The company failed to pay the correct amount of interest on death benefits to 1,251 Washington consumers. State law requires that insurance companies pay 8 percent interest.

Kreidler fined the following companies for violating Washington state insurance regulations:

    GPM Health and Life Insurance Co., Spokane, Wash.; fined $2,000, order 18-0468

    Monterey Insurance Co., Monterey, Calif.; fined $30,000, order 18-0490

    American Automobile Insurance Co., Earth City, Mo..; fined $10,000, order 18-0494

    Unified Life Insurance Co., Dallas; fined $4,500, order 18-0529

 

Agents and brokers

Kreidler revoked the licenses of the following insurance producers:

  Romaine Smith, Prosser, Wash.; license revoked, order 18-0146

  Francisca Yadira Rios, Pasco, Wash.; license revoked, order 18-0507

  Jacqueline Cone, Washougal, Wash.; license revoked, order 18-0515

  Jodi S. Campbell, Lonoke, Ark.; license revoked, order 18-0475

  Gary M. Enciso, Long Beach, Calif.; license revoked, order 18-0476

  Rachel Glover, Collins, Iowa; license revoked, order 18-0477

  Drucilla Clorene Wilson, Las Vegas; license revoked, order 18-0479

  Paul B. Wells, Las Vegas, license revoked, order 18-0498

  Deandre Maze-Carter, Phoenix; license revoked, order 18-0499

  American Underwriting Services LLC, Kennesaw, Ga.; license revoked, order 18-0503

  Romeo Evan Fulton, North Riverside, Ill.; license suspended, order 18-0504

  James Luis Vasquez, Bothell, Wash.; revocation rescinded, license surrendered, order 18-0480

 

Kreidler fined the following insurance producers for violating state laws:

  David M. Connolly and David Connolly Insurance Agency, Silverdale, Wash.; fined $500, order 18-0355

  Ryan M. Focht, Pullman, Wash.; fined $500, order 18-0482

  Alina Frenkel, Bellevue, Wash.; fined $500, order 18-0483

  Robert L. Johnston, Spokane, Wash.; fined $500, order 18-0491

  Paul F. Dent and Griffin Mac Lean, Inc., Bellevue, Wash.; fined $1,000, order 18-0488

  John C. Haskell, Jr., Mill Creek, Wash.; fined $250, order 18-0397

  Xandrea Powell, Suwanee, Ga.; fined $250, order 18-0395

  Terran Watters-Fletcher, Lawrencville, Ga.; fined $250, order 18-0401

  Benchmark Administrators LLC, Wayzata, Minn.; fined $250, order 18-0429

  Lawrence M. Koresko, Collegeville, Penn.; fined $250, order 18-0436

  George Lewis Kengle, Springfield, Ore.; fined $250, order 18-0478

  Thomas A. Dus, Elyria, Ohio; fiend $500, order 18-0506

 

Continuing education providers

  Risk & Insurance Managers Society of Washington, Seattle; fined $800, order 18-0513

 

 

 

 

Source link: Washington Department of Insurance

Tags:  Around the PIA Western Alliance States  insurance content  insurance news  Weekly Industry News 

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FEMA Reverses Course, Flood Insurance Program Resumes Normal Operations During Government Shutdown

Posted By Staff Reporter, Wednesday, January 2, 2019

 

Outcry Prompts Agency to Rescind Earlier Decision to Halt NFIP

Saleshttps://pianet.com/news/insurance-news/2018/fema-reverses-course-flood-insurance-program-resumes-normal-operations-during-government-shutdown

Late Friday Dec. 28, the Federal Emergency Management Agency (FEMA) said insurers may resume the sale, renewal, and monetary endorsements for flood insurance policies.

In so doing, FEMA rescinded guidance issued two days earlier that insurers should no longer sell new policies backed by the flood insurance program during the government shutdown. A bipartisan group of lawmakers and business groups, including PIA, quickly pressed for a reversal of FEMA’s initial decision on Dec. 26 to halt flood insurance sales.

The stakeholders pointed out that FEMA’s action contradicted Congress’ passage of a six-month extension of the National Flood Insurance Program (NFIP) on the evening of Dec. 21, just hours before the government shutdown.

David I. Maurstad, Deputy Associate Administrator for Insurance and Mitigation with FEMA, issued a statement late Dec. 28, saying: 

"On December 26, 2018, FEMA informed you that due to a lapse in annual appropriation the NFIP may not sell new insurance policies, renew existing policies, or make monetary endorsements on existing policies. Effective immediately, this guidance is rescinded and NFIP Insurers may resume the sale, renewal, and monetary endorsements for flood insurance policies. Please treat the program as operational since December 21, 2018 without interruption. We appreciate your support, understanding, and patience these past few days.”

National Association of Professional Insurance Agents

419 North Lee Street, Alexandria, VA 22314-9980main 703.836.9340 | fax 703.836.1279 | www.pianet.com

Tags:  FEMA  Flood program  Insurance Content  Insurance News 

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Winterizing Tips: Agents, get your clients ready for winter.

Posted By Staff Reporter, Tuesday, December 18, 2018

In a few days it will officially be winter. No matter what part of the country you reside in, winter has its challenges. For those farther North it means frozen pipes, fires from fireplaces and heaters, black ice, high winds, falling trees and tree limbs, etc.

People living in a more southerly and warmer climate still face some colder temperatures, high winds and the tree and tree limb problem, rain at times, flooding and so on.

The Property Casualty Insurers Association of America (PCI) says over $1 billion in insured losses happen every winter. Many of those losses are avoidable with a little bit of preparation. The association has taken the time to draw up a list of questions for homeowners, renters and auto owners and drivers that you may want to share with your clients:

  Do you allow extra space to brake when driving during the winter?

  Have you prepared an emergency travel kit for your car and/or home?

  Have you checked your attic and pipes to ensure they have proper insulation?

  Have you made sure your heating system and chimney have been cleaned and inspected?

  Have you talked with your insurance agent or company to review and understand your coverage?

  Have you made sure home smoke detectors and carbon monoxide alarms are installed and working?

The PCI says if you — or your clients — answer “no” to any of those questions, you’re not likely ready for winter.

In the winterizing statement, PCI said the biggest danger to most of us is fire. The leading cause of winter deaths in homes is from from a fire caused by a heater. Close to half — 49% — of them happen in December, January and February.

The recommendation is to keep flammable material at least three feet away from heaters, fireplaces, wood stoves and portable heaters.

The second biggest concern of the PCI is frozen pipes and water damage. Water damage accounts for 22% of all the homeowners claims placed during winter. The PCI says you need to insulate pipes — especially those outside — and plug any holes in walls around pipes.

Also make sure warm air flows around all indoor water pipes that are located near an outside wall. Don’t forget pipes under sinks.

If you’re traveling during the holidays — or at anytime — make sure you take steps to keep pipes from freezing.

Motorists, the PCI says 22% of all crashes happen during the winter and during rainy, icy and snowy conditions. Your vehicles need to be winterized. Check the antifreeze, the battery, windshield wiper fluid, headlights, taillights and emergency flashers.

Have an emergency travel kit in your vehicle with blankets, jumper cables, a shovel, a flashlight, salt, flares and emergency supplies like a first aid kit and some food and water.

Also, keep the gas tank at least half-full.

 


 Tap the banner to get started!

 

Source link: PropertyCasualty360.com

Tags:  insurance news  insurance tips  winter tips  winterizing your home 

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Around the PIA Western Alliance States

Posted By Staff Reporter, Tuesday, December 18, 2018

Alaska

Unsafe Buildings: Since the 7.0 earthquake a couple of weeks ago in Alaska, buildings in Anchorage continue to be looked at for safety. To date more than 100 of them have been deemed unsafe.

 

Source link: Insurance Journal

 

California

Insurance Department Website: The California Department of Insurance (CDI) has sent letters to admitted property and casualty writers and trade associations to inform them that the department will be adding an "Insurance Marketplace" feature to its website to provide information to consumers about property and casualty specialty or niche products offered by admitted insurers.

The letter gives admitted property and casualty writers the opportunity to include their company as one of the insurers offering niche or specialty products and asks for their cooperation. The department urges insurers to utilize this free publicity.

The purpose of the "Insurance Marketplace" webpages would be to enable the CDI to provide consumers with a new, centralized resource in their search for harder-to-find products that may not be readily accessed through their local agents or brokers. This might include insurance for marinas, wineries, pet insurance, restaurants, schools, and much more.

CDI is not endorsing any of the listed participants over other licensees. Participation in the "Insurance Marketplace" by insurers is completely voluntary and the list is not purporting to be a complete listing of all insurers that write the listed products.

 

Oregon

Oregon to update driver license, ID card design: The next time you renew your Oregon driver license or identification card you may see a new design with new security features. DMV is rolling out a new card design starting this winter and early 2019.

The beauty of the new cards isn’t just skin deep. The enhanced colorful look is part of the new card’s advanced security features, making it harder to alter or duplicate.

Your current driver license or ID card will remain valid until its expiration date, so you do not need to replace your card before that date. You also do not need to replace your card when you move within Oregon – you can file your new address online at OregonDMV.com.

This is the first major upgrade to the card technology in Oregon since 2003. In addition to the new look and security features, the new card will provide a vertical layout for provisional driver license holders – drivers younger than 21 years old. This will make it easier to identify minors where age restrictions apply, such as the purchase of alcohol.

 

The new card will hold the same information as the current card, including name, address, issuance date and expiration date, as well as a small duplicate “ghost” image of the person’s photo. Driver license and ID card fees will remain the same with the new card.

 

Among the new security features:

  The card body is a durable plastic material made of a polycarbonate blend.

  Customer information is laser-etched in clear, highly defined lines.

  The colors are printed in tiny patterns that are difficult to see without magnification and difficult to duplicate.

  The clear laminate covering the card front shows a hologram of Oregon symbols at certain angles and light conditions.

 

 

For a preview of the new card design, watch a brief video on the ODOT channel here: https://www.youtube.com/watch?v=pzClU2yrAr0&feature=youtu.be

 

Insurance Bills for 2018

Here are the insurance-related Legislative Counsel (LC) bill drafts that are being released  during Legislative Days in committees which are sponsoring them. They will be renumbered with an actual bill number later.  But this gives you a sneak preview of some of the bills to come. Remember that many other non-committee bills will be released during the second week of January.  Please let me know if any of these cause you concerns.

 

LC 2638

https://apps.leg.state.or.us/liz/2017I1/Downloads/CommitteeMeetingDocument/153260

Provides that injured worker is eligible for vocational assistance unless average weekly wage exceeds 95 percent of weekly wage paid for employment in which worker was engaged at time of injury. Includes value of employer paid health insurance benefits in definition of earned income for purposes of determining whether worker is entitled to vocational rehabilitation because worker cannot engage in suitable employment. Provides that for purposes of determining suitable employment, worker’s weekly wage must be at least 95 percent of the average weekly wage paid for employment that was worker’s regular employment.

 

LC 2843

https://apps.leg.state.or.us/liz/2017I1/Downloads/CommitteeMeetingDocument/153264

Permits Department of Consumer and Business Services to issue licenses and conduct criminal records checks through Nationwide Multistate Licensing System. Requires certain applicants for licenses department issues to submit fingerprints for individuals with ownership interests in applicant and for individuals with supervisory authority over applicant’s operations. Becomes operative on January 1, 2020. Takes effect on 91st day following adjournment sine die.

 

LC 2869

https://apps.leg.state.or.us/liz/2017I1/Downloads/CommitteeMeetingDocument/153266

Specifies procedures Director of Department of Consumer and Business Services may use to investigate violations of Insurance Code. Permits complainant to submit complaint of violation to director and specifies required contents of complaint. Specifies procedures for director to investigate complaint and provides dates by which director must complete investigation. Permits director to engage in negotiations to settle complaint or to enter into remediation agreement to remedy violation. Requires director to issue order to remedy violation if settlement negotiations or negotiations for remedial agreement fail. Provides for person to bring action for violation of Insurance Code in specified circumstances. Becomes operative January 1, 2020. Declares emergency, effective on passage.

 

LC 3108

https://apps.leg.state.or.us/liz/2017I1/Downloads/CommitteeMeetingDocument/153268

Permits attending physician or authorized nurse practitioner to refer worker for treatment by chiropractic physician that is not member of managed care organization under specified circumstances.

 

Tags:  Around the PIA Western Alliance States  Insurance Content  Insurance Industry  Insurance News 

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PIA Oregon/Idaho Returns to an Old Tradition

Posted By Staff Reporter, Tuesday, December 11, 2018


The PIA of Oregon\Idaho listened to our members. We heard continually from longtime members, and new ones, too that they wanted to see our annual events return to tradition.

For the last several years the association’s annual gathering has been called EXPO. The original intent if EXPO was to give agents the opportunity to network without the expense or time away from the office needed to attend a longer, more in-depth conference. While EXPO served its purpose during the down economy, our membership let us know they wanted tradition back.

In response, the 2019 Oregon/Idaho Conference and Trade Show will be held at the Oregon Coast’s beautifully restored Salishan Resort. It will be on May 5 - 7.

Our focus will be comprehensive education, fantastic networking, fun and — as always — golf. And we honor a one of our most beloved PIA supporters by renaming our annual golf event. It will now be called the Dave Iwata Memorial Golf Tournament. It is the perfect tribute to a man whose passion was the game, and who worked to make PIA's tournaments the successes that they have become.

This year's trade show will be a perfect mix of quality time with agents. On Monday, May 6th there will be a reception from 5 PM to 7 PM. Tuesday Morning, May 7 from 8 AM to 10 AM will be the concluding trade show event.

Agents put the conference on your calendar now.

Companies beat the rush and register now to exhibit and sponsor.

Click here to exhibit.

Click here to sponsor.

Tags:  insurance news  PIA Oregon/Idaho’s show  Salishan Resort 

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PIA Members - Access MVRs in all 50 States for less than $1.00!

Posted By Staff Reporter, Tuesday, December 11, 2018

Motor Vehicle Records (MVR)

SambaSafety maintains a secure network of direct-to-DMV interfaces to capture the most current driver record data.

Using our industry recognized MVR2000 format, we take the complex data from each state and deliver Motor Vehicle Records or MVRs that are:

  • Intuitive, easy-to-read and in a standardized report format.
  • Industry specific with standardized violation codes and custom scoring.
  • Essential to driving record-based decision-making: SambaSafety MVRs include license details such as state issued, status, expiration, suspensions, revocations, violations and sanctions.

 

Real-time transactions

SambaSafety MVRs support real-time transactions, improve business efficiency, and reduces risk for your company by streamlining and integrating MVR ordering into SambaSafety products.

Lower cost MVRs

In addition, our Database MVRs (DB MVR) are an instantly accessible lower-cost MVR for your driver screening and risk management needs. DB MVRs are available for many states.

 

Our suite of MVR data products include state provided 3, 5, 7 and 10-year driver records. Please note that product availability varies by state.

 

Features

  • MVRs for all 50 States.
  • Instant and overnight access.
  • Returns pertinent driver information and history.
  • Intuitive, easy-to-read standardized format.
  • Industry-specific with standardized violation codes and custom scoring.
  • Provides essential driver demographic information.
  • Industry-specific with standardized violation codes and custom scoring.
  • Available via the WebMVR portal, batch processing, XML, and third party integrators.
  • MVRs in standard nationwide codes and in a consistent easy-to-read MVR 2000 format.

Benefits

  • Expands your business’ geographic reach with ccess to more driver records.
  • Enhances driver record based decision-making.
  • Reduces risk by verifying driver identity & related personal information.
  • Improves productivity and bottom-line results.
  • Increases efficiency with an intuitive MVR format.
  • Expedites business decision-making and response time to customers and clients.

 

Contact Samba Safety, today

Don't forget to mention that you are a PIA Member!

888.947.2622

Tags:  insurance content  insurance news  mvr  pia membership 

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Merced Property & Casualty insolvent - unable to pay claims to its policyholders

Posted By Staff Reporter, Tuesday, December 11, 2018


 

When you consider the huge losses experience by insurers in California because of wildfire, it was bound to happen. The Camp Fire in California left the Merced Property & Casualty insolvent and unable to pay millions of dollars in damage claims to its policyholders.

The company’s assets sit at $23 million. It has $64 million in liabilities from the Camp Fire and its damages in Paradise, California alone.

Judge Brian McCabe ruled last week that the California Department of Insurance can take control of the company. Liquidation of the company’s assets will begin soon by the California Insurance Department’s Conservation and Liquidation Office.

When an insurance company is liquidated, there is no way the company can recover. This is totally different from how a normal business or an individual is treated legally.

The Merced policyholders are covered by the California Insurance Guarantee Association.

Other insurers are also feeling the heat of the California wildfires. That has led California Insurance Commissioner Dave Jones to direct the department to conduct additional detailed reviews of every property insurer domiciled in California.

He wants to make sure they are properly managing their exposures.

That said, the California Department of Insurance has not received reports of other insurers in a similar situation. However, insurers — if the truth be told — are struggling with losses from the state’s many wildfires.

AIG estimated last week that it will lose between $750 to $800 million between September and November of this year. Wildfires are the main reason. In spite of that, AIG CEO Brian Duperreault said the firm will make a slight underwriting profit in 2018.

Chubb said it will lose $225 million in pre-tax losses in its fourth quarter results. After taxes those losses will be $195 million. Wildfires in California and Hurricane Michael are to blame.

 

Source links: KTVZ-TV, California Department of Insurance, PropertyCasualty360.com, Insurance Business America, Carrier Management

Tags:  insolvent  insurance content  insurance news  Merced Property & Casualty 

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Wildfire Claims to Top $10 Billion 2nd Year in Row

Posted By Staff Reporter, Tuesday, December 11, 2018


Aon’s annual Global Catastrophe Report has bad news for the industry. For the second year in a row claims payouts for wildfire losses will top $10 billion.

The worst wildfire was California’s Camp Fire. It destroyed most of the city of Paradise and killed 88 people. Dozens are still missing so the death toll is likely to rise even more.

According to the California Department of Forestry and Fire Protection (CalFire) 19,357 homes, businesses and other structures were destroyed in the fire. At the same time, another 2,000 structures were destroyed in the Woolsey Fire in Ventura and and Los Angeles counties.

Economic losses for both fires are staggering and have been predicted to be from $12 to $15 billion. Insurer losses will be way over $10 billion when you consider these are just two of the large fires experienced in the state in the last year.

And that’s just California. Other states have experienced huge losses from wildfires, too.

Steve Bowen, Impact Forecasting director and meteorologist said, “With annual wildfire industry payouts expected to exceed $10 billion for the second consecutive year in the United States, the standard assumption of wildfire being a secondary peril may evolve in the future,” he said. “While insurers remain firmly in position to handle the volume of claims in the aftermath of recent events, these heightened losses put a further spotlight on the growing risk of the peril around the world.”

Bowen added that wildfires keep hitting the same locations on a regular basis. He suggests it may be time to look at more ways to mitigate losses.

Source link: Carrier Management

Tags:  insurance content  insurance industry  insurance news  wildfires 

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Flood Insurance — The Non-Action Action Continues

Posted By Staff Reporter, Tuesday, December 4, 2018


By the time you read this everything could have changed. On Friday the seven-day extension passed by both the House and Senate to extend the National Flood Insurance Program (NFIP) expires. December 7th is also the same day Congress has to pass a continuing resolution to continue to fund most of the rest of the federal government.

Some parts have of the budget have been agreed upon and have been extended into 2019. The NFIP has not. However, the Senate did — on a voice vote — pass a six-month reauthorization. It will last until May 31, 2019

There is a chance the House will go along with the Senate’s decision. But this is where the opening statement of this story comes into play. If the House does go along then we have another six-months before the expiration and short extension game starts anew.

Republican Sen. John Kennedy of Louisiana sponsored the six month extension. He said he’s going to go to work in the House to see if he can get the job done. He noted that more than five-million Americans get flood insurance through the NFIP and he is “frustrated with the inefficiency in Washington that is causing us to extend the program again without long-term reforms, but families deserve to be protected.”

 

In a statement PIA National said it supports Sen. Kennedy’s bill. “We support Senator Kennedy’s effort to extend the program through May and will support any effort to extend the program into 2019 that gives the new Congress time to find agreement on a long-term reauthorization of the program. We will continue to work with Congress to achieve this in the coming days,” PIA National said.

One of the conflicts some in Congress have with the NFIP is the fact that tax-subsidies are being used to rebuild and repair flood damaged homes that have been rebuilt several times.

Records at the NFIP managing Federal Emergency Management Agency (FEMA) show that close to 37,000 properties from the East Coast to California have been rebuilt not just once but several times. Some have been done dozens of times. Those same FEMA records show 18,000 of those homes are currently covered by NFIP policies and 15,000 haven’t done the work to reduce the risk of future flood damage.

Here’s another problem. At the beginning of the current hurricane season, nearly $7.4 billion of the $20-plus billion that the NFIP is in debt is from repeat claims.

Louisiana — Sen. Kennedy’s state — has the most repeatedly flooded properties over the last 40-years. It accounts for 23% of the NFIP’s total claims.

PIA National supports a long-term renewal of the NFIP and is working with members of Congress to support legislative solutions to create sensible options for growing the private flood insurance market, promoting flood risk management policies, transitioning to risk-based rates and reforming the NFIP.

 

Source links: Insurance Journal, Business Insurance America

Tags:  Flood insurance  insurance content  insurance news  NFIP  Senate 

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