<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" > <channel> <title>Personal Insurance | Insurance Advocate</title> <atom:link href="https://www.insurance-advocate.com/category/personal-insurance/feed/" rel="self" type="application/rss+xml" /> <link>https://www.insurance-advocate.com</link> <description>Since 1889</description> <lastBuildDate>Wed, 12 Dec 2018 13:55:16 +0000</lastBuildDate> <language>en-US</language> <sy:updatePeriod> hourly </sy:updatePeriod> <sy:updateFrequency> 1 </sy:updateFrequency> <generator>https://wordpress.org/?v=6.7.2</generator> <item> <title>InVEST Awards 88 Scholarship to Students Interested in Insurance Careers</title> <link>https://www.insurance-advocate.com/2015/07/06/invest-awards-88-scholarship-to-students-interested-in-insurance-careers/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Mon, 06 Jul 2015 00:43:34 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <category><![CDATA[Current News]]></category> <category><![CDATA[Personal Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4018</guid> <description><![CDATA[<p>InVEST, the Independent Insurance Agents and Brokers of America’s classroom-to-career education program, awarded $77,000 in scholarships to 88 students pursuing insurance-related degrees. “InVEST congratulates the 88 students representing 32 high schools, colleges and universities in 14 states and Washington, D.C., who earned scholarships this year,” says Robert G. Slocum, InVEST board chair, and president of […]</p> The post <a href="https://www.insurance-advocate.com/2015/07/06/invest-awards-88-scholarship-to-students-interested-in-insurance-careers/">InVEST Awards 88 Scholarship to Students Interested in Insurance Careers</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">InVEST, the Independent Insurance Agents and Brokers of America’s classroom-to-career education program, awarded $77,000 in scholarships to 88 students pursuing insurance-related degrees.</span></p> <p class="p1"><span class="s1">“InVEST congratulates the 88 students representing 32 high schools, colleges and universities in 14 states and Washington, D.C., who earned scholarships this year,” says Robert G. Slocum, InVEST board chair, and president of Warwick, R.I.-based The Slocum Agency, Inc. </span></p> <p class="p1"><span class="s1">Two students won the $3,000 Bob Betters Scholarship, established in 2011 and named after Watson Insurance Agency’s Bob Betters, who was appointed to the InVEST board of directors in 2009 and passed away February 2011 after battling brain cancer. The two Bob Betters Scholarship winners were:</span></p> <ul> <li class="p1"><span class="s1">Brooke Coughlin, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li> <li class="p1"><span class="s1">Jessica England, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li> </ul> <p class="p1"><span class="s1">$2,000 scholarship winners were:</span></p> <ul> <li class="p1"><span class="s1">Rebecca Cleppe, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li> <li class="p1"><span class="s1">Claire Collins, William R. Boone High School, Orlando, Fla.</span></li> <li class="p1"><span class="s1">Quinn Christian Cotilla, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li> <li class="p1"><span class="s1">Catherine De Freitas, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li> <li class="p1"><span class="s1">Ayme Ibarra, Manatee High School, Bradenton, Fla.</span></li> <li class="p1"><span class="s1">Kalie Rauch, Dryden High School, Dryden, N.Y.</span></li> <li class="p1"><span class="s1">Zachary Shuman, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li> <li class="p1"><span class="s1">Matthew Sullivan, Dr. Phillips High School, Orlando, Fla.</span></li> <li class="p1"><span class="s1">Jeremy Tromer, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li> <li class="p1"><span class="s1">Shawn Varughese, Dr. Phillips High School, Orlando, Fla.</span></li> <li class="p1"><span class="s1">Emilio Ycaza, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li> <li class="p1"><span class="s1">Nellie Parks, Grossmont Community College, El Cajon, Calif. won the $1,500 scholarship award.</span></li> </ul> <p class="p1"><span class="s1">Twenty-one students won $1,000 scholarship awards, and 51 students won $500 scholarship awards.</span></p> <p class="p1"><span class="s1">Monique Lucas, Roosevelt Senior High School, Washington, D.C.; and Stacey Porter, Roosevelt Senior High School, Washington, D.C., were named $500 Classroom to Career Scholars, which was developed for students who would like to enter the insurance industry immediately after graduating from InVEST. These students are eligible for a $500 reimbursement for licensing or designation expenses.</span></p> <p class="p1"><span class="s1">InVEST provides a hands-on insurance-related curriculum taught in high schools, adult education centers and colleges, designed to give students a working knowledge of the basics needed to pursue careers in the insurance industry.</span></p>The post <a href="https://www.insurance-advocate.com/2015/07/06/invest-awards-88-scholarship-to-students-interested-in-insurance-careers/">InVEST Awards 88 Scholarship to Students Interested in Insurance Careers</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>ACE to Purchase Chubb for $28.3B; Expects Revenue to Outweigh Cost</title> <link>https://www.insurance-advocate.com/2015/07/05/ace-to-purchase-chubb-for-28-3b-expects-revenue-to-outweigh-cost/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Sat, 04 Jul 2015 20:44:54 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <category><![CDATA[Current News]]></category> <category><![CDATA[Personal Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4008</guid> <description><![CDATA[<p><img width="250" height="250" src="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" fetchpriority="high" srcset="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg 250w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-100x100.jpg 100w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-150x150.jpg 150w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-720x720.jpg 720w" sizes="(max-width: 250px) 100vw, 250px" /></p><p>ACE Limited will acquire rival The Chubb Corporation for $28.3 billion, or $62.93 per share in cash and 0.6019 shares of ACE stock, the companies announced July 1. ACE used the term “complimentary” a number of times to describe the two companies in the statement announcing the planned acquisition. ACE Chairman and CEO Evan Greenberg […]</p> The post <a href="https://www.insurance-advocate.com/2015/07/05/ace-to-purchase-chubb-for-28-3b-expects-revenue-to-outweigh-cost/">ACE to Purchase Chubb for $28.3B; Expects Revenue to Outweigh Cost</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p><img width="250" height="250" src="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" srcset="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg 250w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-100x100.jpg 100w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-150x150.jpg 150w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-720x720.jpg 720w" sizes="(max-width: 250px) 100vw, 250px" /></p><p class="p2"><span class="s1"><a href="http://www.acegroup.com">ACE Limited</a> will acquire rival The Chubb Corporation for $28.3 billion, or $62.93 per share in cash and 0.6019 shares of ACE stock, the companies announced July 1.</span></p> <p class="p2"><span class="s1">ACE used the term “complimentary” a number of times to describe the two companies in the statement announcing the planned acquisition. ACE Chairman and CEO Evan Greenberg further explains, “We will be well balanced with greater presence and capabilities in product areas that have less exposure to the commercial P&C cycle. We have complementary product strengths – where one of us is not present, the other is. Where one of us is strong, the other is even stronger. Where there is overlap in product, generally one of us is more present at the large end of the corporate market while the other is serving the smaller or mid-market segment.”</span></p> <p class="p2"><span class="s1">He adds the combined company will be able to do more than the two separately, with Chubb enhancing ACE’s ability to serve the upper-middle market while ACE can deliver more products for Chubb’s middle-market clients.</span></p> <p class="p2"><span class="s1">Greenberg concludes, “Together, we will grow more substantially and at a faster rate, producing greater earnings, than we could achieve as two separate companies. We look forward to welcoming the talented Chubb employees and their customers and distribution partners to the ACE family.”</span></p> <p class="p2"><span class="s1">John D. Finnegan, chairman, president and CEO of Chubb, says, “The combination brings together two highly respected and successful companies with complementary capabilities, assets and geographic footprints. We are confident that it will deliver strong value to Chubb shareholders, including an immediate premium and participation in the future growth and profitability of a well-positioned combined company.”</span></p> <p class="p2"><span class="s1">The combined company will transition to operate under the Chubb name globally and be based in Zurich. Greenberg will lead the company as chairman and CEO while Finnegan will serve as executive vice chairman for External Affairs of North America and assist with integration. The company’s board will be expand from 14 to 18 directors with the addition of four independent directors from Chubb’s current board.</span></p> <p class="p2"><span class="s1">Finnegan adds, “We are pleased that the combined company will adopt the Chubb brand, and view this as an affirmation that both companies share a commitment to the attributes of quality and service the brand represents. We look forward to working together as we create a best-in-class global franchise in P&C insurance.”</span></p> <p class="p2"><span class="s1">A New York Times <a href="http://www.nytimes.com/2015/07/02/business/dealbook/ace-and-chubb-face-headwinds-of-history.html"><span class="s2">analysis</span></a> notes that ACE is paying a premium for Chubb, implying that the acquirer “believes strongly in the revenue gains it is promising.” It goes on to say previous insurance acquisitions, such as Citicorp and Travelers, and Provident and Unum, had similar goals that didn’t materialize as planned.</span></p> <p class="p2"><span class="s1">The Wall Street Journal <a href="http://blogs.wsj.com/totalreturn/2015/07/01/what-the-ace-chubb-deal-could-mean-for-consumers/"><span class="s2">says</span></a> high-net-worth customers will have fewer options for specialized coverages after the deal, but adds that it remains to be seen if prices increase as a result.</span></p> <p class="p2"><span class="s1">The transaction is expected to close Dec. 31.</span></p>The post <a href="https://www.insurance-advocate.com/2015/07/05/ace-to-purchase-chubb-for-28-3b-expects-revenue-to-outweigh-cost/">ACE to Purchase Chubb for $28.3B; Expects Revenue to Outweigh Cost</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>U.S. Insurance Industry Shows Employment Gains in April</title> <link>https://www.insurance-advocate.com/2015/06/30/u-s-insurance-industry-shows-employment-gains-in-april/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Tue, 30 Jun 2015 02:37:23 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <category><![CDATA[Current News]]></category> <category><![CDATA[Life & Health Insurance]]></category> <category><![CDATA[Personal Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=3804</guid> <description><![CDATA[<p>Insurance-industry employment was up across most sub-sectors in April compared to March, according to an analysis of the latest U.S. Labor Department’s Bureau of Labor Statistics (BLS) figures. Health/medical direct insurers, life insurers and agents and brokers showed the strongest monthly gains. For life insurers, employment over the last year has at last reversed a […]</p> The post <a href="https://www.insurance-advocate.com/2015/06/30/u-s-insurance-industry-shows-employment-gains-in-april/">U.S. Insurance Industry Shows Employment Gains in April</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">Insurance-industry employment was up across most sub-sectors in April compared to March, according to an analysis of the latest U.S. Labor Department’s Bureau of Labor Statistics (BLS) figures.</span></p> <p class="p1"><span class="s1">Health/medical direct insurers, life insurers and agents and brokers showed the strongest monthly gains. </span></p> <p class="p1"><span class="s1">For life insurers, employment over the last year has at last reversed a long downward trend that began after 2010, according to comments by I.I.I. President Robert Hartwig. Employment reached 370,000 for life insurers during the first half of 2010 before it began falling. Over the past 12 months, employment in this sub-sector has not fallen, and showed gains in 11 of those months. Employment has recovered to 357,000 as of April, up by 14,700 compared to April 2014 and up by 1,100 compared to March. </span></p> <p class="p1"><span class="s1">The health carrier segment has been increasing for decades, Hartwig says, and rose by 28,900 in April 2015 compared to April 2014, to 512,200. This sub-sector also showed the greatest monthly gains from March, adding 3,200 jobs over the month. Hartwig says, “At least some of this growth is undoubtedly connected with the flood of health-insurance applications, purchases and claims attributable to the Affordable Care Act (ACA), and some to population growth, but it is important to acknowledge that this rate of growth has been characteristic of this sector for decades—long before the ACA was proposed.”</span></p> <p class="p1"><span class="s1">Agent/broker employment is up by 24,600 jobs in April compared to the same month a year ago, and up 1,400 jobs compared to March. This sub-sector lost jobs after the recession, bottoming out at 638,200 in September 2010. Since then, the sub-sector has recovered, passing its pre-recession peak of 684,500, Hartwig notes. Employment in this sub-sector stands at 732,200 as of April.</span></p> <p class="p1"><span class="s1">Employment was up for property and casualty insurers in April as well, with the sub-sector gaining 700 jobs in April compared to March, and gaining over 10,000 jobs compared to April 2015.</span></p> <p class="p1"><span class="s1">Third-party administrators were the only sub-sector to show job losses from March to April, shedding 1,200 jobs. Reinsurer employment was flat over the month, and was up by 200 jobs compared to April 2014.</span></p>The post <a href="https://www.insurance-advocate.com/2015/06/30/u-s-insurance-industry-shows-employment-gains-in-april/">U.S. Insurance Industry Shows Employment Gains in April</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Hurricane Risk Rising Along with Property Values; Sea Levels</title> <link>https://www.insurance-advocate.com/2015/06/30/hurricane-risk-rising-along-with-property-values-sea-levels/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Tue, 30 Jun 2015 02:36:34 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <category><![CDATA[Current News]]></category> <category><![CDATA[Personal Insurance]]></category> <category><![CDATA[Risk]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=3802</guid> <description><![CDATA[<p>Take the growing number and value of coastal properties, add in rising sea levels and you have a recipe for a major and increasing risk associated with hurricane storm surge, a recent AIR Worldwide report outlines. “Because hurricane storm surge—which is an abnormal and often substantial increase in sea level—can penetrate miles inland from the […]</p> The post <a href="https://www.insurance-advocate.com/2015/06/30/hurricane-risk-rising-along-with-property-values-sea-levels/">Hurricane Risk Rising Along with Property Values; Sea Levels</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">Take the growing number and value of coastal properties, add in rising sea levels and you have a recipe for a major and increasing risk associated with hurricane storm surge, a recent AIR Worldwide report outlines.</span></p> <p class="p1"><span class="s1">“Because hurricane storm surge—which is an abnormal and often substantial increase in sea level—can penetrate miles inland from the coast, considerable value is at risk, as it seems the appetite for ocean views is unabated,” the report states.</span></p> <p class="p1"><span class="s1">AIR says in “<a href="http://www.air-worldwide.com/Publications/AIR-Currents/2015/The-Growing-Value-of-U-S--Coastal-Property-at-Risk/"><span class="s2">The Growing Value of U.S. Coastal Property at Risk</span></a>” that the largest risk factor is increasing property value along the U.S. coastline. </span></p> <p class="p1"><span class="s1">“People love living by the sea for the many economic and recreational opportunities coastal living offers,” AIR says, noting that 14 of the world’s 17 largest cities are along coasts. </span></p> <p class="p1"><span class="s1">In the U.S., AIR notes the percentage of insured value in coastal counties has actually remained flat from 2004 to 2012 — 38 percent of the total exposure in Gulf and East Coast states, making up 16% of the total values of properties in the country — but the total insured values have increased considerably along with the increase across the country as a whole. For the 18 Gulf and East Coast states, estimated insured value along the coast grew from $7.2 trillion in 2004 to $10.6 trillion in 2012.</span></p> <p class="p1"><span class="s1">“Historically, the insured value of properties in coastal states has grown at an estimated compound annual rate of about 7%,” AIR says in the report. “That translates to a doubling every decade of insured values and potentially insured losses.”</span></p> <p class="p1"><span class="s1">Rising sea levels compound the hurricane risk to these Gulf and East Coast states because of the increased effects of storm surge. AIR says the oceans rose about 7.5 inches on average between 1901 and 2010 worldwide, “and the current global mean rate is very likely slightly more than 1/16 inch each year.”</span></p> <p class="p1"><span class="s1">AIR adds that much of the coastline for Gulf and East Coast states is less than 10 feet above mean sea level — and sinking in some cases due to natural geological movements and the extraction of underground stores of water, oil and gas.</span></p> <p class="p1"><span class="s1">These factors mean significant and growing hurricane risk for the coastal states. AIR says, “Storm surge is one of the principal causes of coastal inundation, and it can create severe devastation many miles inland in low-lying coastal regions. As sea levels rise, average high tides will become higher.</span></p> <p class="p1"><span class="s1">“The height achieved by any given storm surge above those high tide levels and the extent of inland inundation caused by it will increase.”</span></p> <p class="p1"><span class="s1">Currently, AIR estimates over $17 billion in insured property values for the 18 Gulf and East Coast states that fall within its maximum modeled surge extent.</span></p> <p class="p1"><span class="s1">“The rising level of the oceans, the growing coastal population, the additional development associated with it, and the possible increasing severity of storms mean that people and property are increasingly at risk,” AIR says, adding that coastal communities can deal with the issues in three ways:</span></p> <ul> <li class="p1"><span class="s1">Defend the shoreline with man-made or natural barriers;</span></li> <li class="p1"><span class="s1">Adapt by raising structures and infrastructure above projected flood levels;</span></li> <li class="p1"><span class="s1">Retreat.</span></li> </ul> <p class="p1"><span class="s1">AIR notes manmade defenses can be expensive — often too expensive for less-affluent communities — and can disrupt natural shoreline processes.</span></p>The post <a href="https://www.insurance-advocate.com/2015/06/30/hurricane-risk-rising-along-with-property-values-sea-levels/">Hurricane Risk Rising Along with Property Values; Sea Levels</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Albanese to Succeed Lawsky at NYDFS on Interim Basis</title> <link>https://www.insurance-advocate.com/2015/06/30/albanese-to-succeed-lawsky-at-nydfs-on-interim-basis/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Tue, 30 Jun 2015 02:35:57 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <category><![CDATA[Current News]]></category> <category><![CDATA[Personal Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=3847</guid> <description><![CDATA[<p>Anthony Albanese will become interim superintendent of the New York Department of Financial Services Superintendent when current Superintendent Benjamin Lawsky departs this week. Albanese joined the department in 2011 and was Lawsky’s chief of staff. In a memo from Lawsky to his staff, published by The New York Times, Lawsky says, “Most of you know […]</p> The post <a href="https://www.insurance-advocate.com/2015/06/30/albanese-to-succeed-lawsky-at-nydfs-on-interim-basis/">Albanese to Succeed Lawsky at NYDFS on Interim Basis</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p2"><span class="s1">Anthony Albanese will become interim superintendent of the New York Department of Financial Services Superintendent when current Superintendent Benjamin Lawsky departs this week.</span></p> <p class="p2">Albanese joined the department in 2011 and was Lawsky’s chief of staff.</p> <p class="p2"><span class="s1">In a memo from Lawsky to his staff, <a href="http://www.nytimes.com/2015/06/13/business/dealbook/lawskys-top-deputy-to-succeed-him-temporarily.html?_r=0"><span class="s2">published</span></a> by <i>The New York Times</i>, Lawsky says, “Most of you know Anthony well. He has been by my side since we launched and has played an incredibly important role in getting DFS to where it is today.” He further describes Albanese as “tough but fair and passionate about doing what’s right,” and adds that handing the reins to Albanese means “business as usual” for DFS.</span></p> <p class="p2"><span class="s1">Lawsky <a href="http://www.dfs.ny.gov/about/press/pr1505202.htm"><span class="s2">announced</span></a> his departure last month. Albanese was previously a partner at Weil Gotshal & Manges in New York.</span></p>The post <a href="https://www.insurance-advocate.com/2015/06/30/albanese-to-succeed-lawsky-at-nydfs-on-interim-basis/">Albanese to Succeed Lawsky at NYDFS on Interim Basis</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Senate Banking Committee Report: No Systemic NFIP Underpayments for Sandy Claims</title> <link>https://www.insurance-advocate.com/2015/06/30/senate-banking-committee-report-no-systemic-nfip-underpayments-for-sandy-claims/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Tue, 30 Jun 2015 02:35:07 +0000</pubDate> <category><![CDATA[Current News]]></category> <category><![CDATA[Personal Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=3958</guid> <description><![CDATA[<p>The Senate Banking Committee issued a report on the National Flood Insurance Program (NFIP) finding there were no structural flaws in the program that led to systemic underpaying of flood claims after Superstorm Sandy. “Despite widespread concerns, it does not appear that systematic incentives exist for any participant in the program to underpay on claims,” the […]</p> The post <a href="https://www.insurance-advocate.com/2015/06/30/senate-banking-committee-report-no-systemic-nfip-underpayments-for-sandy-claims/">Senate Banking Committee Report: No Systemic NFIP Underpayments for Sandy Claims</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">The Senate Banking Committee issued a <a href="http://www.banking.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=4821a760-77a9-4450-926f-281916fd68a8"><span class="s2">report</span></a> on the National Flood Insurance Program (NFIP) finding there were no structural flaws in the program that led to systemic underpaying of flood claims after Superstorm Sandy. </span></p> <p class="p1"><span class="s1">“Despite widespread concerns, it does not appear that systematic incentives exist for any participant in the program to underpay on claims,” the report concludes. “Nor does there presently exist evidence of any such pattern of underpayment.”</span></p> <p class="p1"><span class="s1">The study was undertaken amid allegations of fraud and routine underpayments by the NFIP and some Write-Your-Own insurers that led to reforms at the NFIP and the re-opening of Sandy flood claims.</span></p> <p class="p1"><span class="s1">The report, though, while acknowledging that it can’t discount misconduct or even outright fraud on behalf of some adjusters and engineers in connection with some Sandy claims, “we found no evidence to support the theory that engineers have a systematic incentive to downplay flood damage.”</span></p> <p class="p1"><span class="s1">The report also says data it analyzed indicates overpayments are more common than underpayments. “Theories of ‘systematic underpayment’ are inconsistent with the actual data produced by FEMA auditing. We found no persuasive evidence to support the existence either of any general incentive to underpay policyholders or of any practice of doing so.”</span></p> <p class="p1"><span class="s1">It also claims the WYO companies participating in the NFIP and adjusters actually benefit financially when claim payments are higher, rather than suppressed.</span></p> <p class="p1"><span class="s1">Sen. Charles Schumer, D-N.Y., a vocal critic of how the NFIP and insurers have handled flood claims, rejected the report’s findings. <i>Newsday</i> <a href="http://www.newsday.com/business/schumer-rejects-findings-of-senate-committee-on-flood-insurance-1.10572850"><span class="s2">quotes Schumer as saying</span></a> the report relied on questionable data and ignored evidence of widespread underpayments from more than 2,000 lawsuits filed in federal court after Sandy. </span></p> <p class="p1"><span class="s1">A spokesman for Sen. Kirsten Gillibrand, D-N.Y., says in the <i>Newsday</i> story, “Based on the evidence presented in federal court, any study that concludes the National Flood Insurance Program did not systematically underpay superstorm Sandy victims is deeply flawed and suspect.”</span></p>The post <a href="https://www.insurance-advocate.com/2015/06/30/senate-banking-committee-report-no-systemic-nfip-underpayments-for-sandy-claims/">Senate Banking Committee Report: No Systemic NFIP Underpayments for Sandy Claims</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> </channel> </rss>