It Figures
Travelers on The Dow
10% The increase in Atlanta’s homeowners insurance rates that is possible unless the city hires more firefighters and improves fire training. Georgia Insurance Commissioner John Oxendine said a report by Insurance Services Office (ISO) that found Atlanta’s public protection classification rating dropped from 2 to 4 on a scale of 10, with 1 being the best rating. He said Atlanta has nine months to make changes that will allow the city to keep its current rating or drop to a 3. Insurers use the rating in setting premiums.
23 The number of accidents that involved 19 employees of West Virginia’s Alcohol Beverage Control Administration over the past five years, prompting officials to enforce a long-ignored regulation requiring reviews of accidents involving state vehicles and disciplinary action.
$1 Billion The amount that the U.S. government has paid out in claims to 9,134 Tennesseans made ill from working in the nuclear weapons facilities at Oak Ridge during the Cold War. They worked at the Y-12 nuclear weapons plant, the former K-25 uranium enrichment plant or the Oak Ridge National Laboratory. Since the program began in 2001, about one in five payouts have gone to Tennesseans. Another $500 million has been paid to nearly 4,800 workers in Kentucky.
15% The increase reported in Florida property/catastrophe reinsurance rates at the June 1, 2009, renewal, compared to a decline of 15 percent a year ago, according to reinsurance specialist Guy Carpenter & Co. Guy Carpenter said this increase was largely consistent with the overall rate trend of 10 to 14 percent increases for U.S. national reinsurers.
$2 Million The total on a check delivered by Mississippi Insurance Commissioner Mike Chaney to the state’s general fund. The money represents fees collected by the Mississippi Surplus Lines Association, which collects surplus lines fees and premium taxes.
5 The number of Atlantic hurricanes expected this season by forecasters at Colorado State University. That’s down from their original prediction of six. The forecast indicates that the 2009 Atlantic hurricane season will be slightly less active than the average 1950-2000 season.
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Declarations “The selection of Travelers, a property and casualty insurance company, is intended to restore the financials industry to full representation in The Dow. When we removed American International Group, Inc. last fall, we substituted Kraft Foods, Inc. rather than another financial stock because the financials industry was then in great upheaval. That choice left financials underrepresented in The Dow, a deficiency we are now correcting.” — Dow Jones announcing that The Travelers Companies, Inc. (TRV) is taking the place of Citigroup, Inc. (C) and Cisco Systems, Inc. (CSCO) is going in for General Motors Corp. (GM) on The Dow.
Sprinkler Priority “I am sensitive to the costs associated with installing the fire sprinkler systems, especially in these challenging economic times. However, in the event of a fire, public safety for residents and for the firefighters and emergency medical personnel who lay their lives of the line to provide services greatly outweigh all other considerations.” — Florida Gov. Charlie Crist explaining his veto of a bill to fix glitches in the state’s condo insurance laws
Insurer Ruse “...State Farm is overexposed in the homeowners market and will likely not offer coverage to many of its policyholders irrespective of its freedom to charge an excessive rate. In fact, State Farm and other companies may actually use excessive rates to effectively nonrenew policyholders under the ruse of consumer choice.” — Florida Insurance Commissioner Kevin McCarty suggesting that a bill deregulating rates for large national property insurers would not help the marketplace as proponents claim.
Bad Behavior “I find your professional behavior reprehensible.’’ —Florida state Sen. Mike Bennett, R-Bradenton, demanding that Insurance Commissioner Kevin McCarty resign because, Bennett said, lawmakers can no longer trust his word. Bennett claims that McCarty had told him he would not oppose a measure designed to let large national property insurers operate without rate approval by the state.
Heck of a Job “They’re going to have a heck of a time getting somebody.” — Alan Johnson, managing director of New York-based compensation consultant Johnson Associates, on the prospects of American International Group finding someone to fill the shoes of Edward Liddy, current CEO, who is stepping down. June 15, 2009 INSURANCE JOURNAL-SOUTHEAST REGION | 9