PRESENTATION TO ULPA & LPI 2009 CONFERENCE: INSURANCE & LIGHTNING

Transcription

1 PRESENTATION TO ULPA & LPI 2009 CONFERENCE: INSURANCE & LIGHTNING Feb. 27, 2009 New Orleans, LA. Jeanne Salvatore Senior Vice President - Public Affairs Insurance Information Institute 110 William Street New York, NY Tel: (212) jeannes@iii.org

2 The I.I.I. WHO WE ARE AND WHAT WE DO The I.I.I. is a non-profit communications organization supported by the property/casualty insurance business The mission of the I.I.I. is to improve the public s understanding of insurance what it does and how it works.

3 PRESENTATION OVERVIEW Insured Catastrophe Losses Lightning Losses Disaster Preparedness Insurance Discounts Communications Suggestions I.I.I. Resources

4 INSURED CATASTROPHE LOSSES The term catastrophe in the property insurance industry denotes a natural or manmade disaster that is unusually severe. An event is designated a catastrophe by the industry when claims are expected to reach a certain dollar threshold, currently set at $25 million, and more than a certain number of policyholders and insurance companies are affected. I

5 INSURED CATASTROPHE LOSSES Insured catastrophe losses for 2008 totaled an estimated $25.2 billion. While this does not come close to the $62.3 billion for 2005, the year of hurricanes Katrina and Rita, it is the fourth most costly in a decade. Insurers paid 3.9 million damage claims in 40 states as a result of 37 catastrophes, the highest number of catastrophic events in a single year since Personal lines claims accounted for 64 percent of the loss, commercial lines for 27 percent and vehicles for 9 percent. Texas suffered the largest loss at $10.2 billion. By contrast, losses for 2007, a year of little hurricane activity in the U.S., were $6.5 billion.

6 INSURED CATASTROPHE LOSSES Over the 20-year period 1988 to 2007, Hurricanes and tropical storms made up 45.6 percent of total catastrophe losses, Tornado losses (26.5 percent), Winter storms (7.9 percent), Terrorism (7.4 percent), Earthquakes and other geologic events (6.3 percent), wind/hail/flood (3.2 percent) Fire (2.6 percent). Civil disorders, water damage and utility services disruption combined represented less than 1 percent. Each year about 6 percent of homeowners file claims.. I

7 Insured Catastrophe Losses

8 Insured Catastrophe Losses

9 Lightning Losses Lightning is covered under standard home, business, life insurance, disability, workers compensation and under the comprehensive portion of an auto insurance policy. The surge is only covered by some property insurance policies.

10 Lightning Losses The number of lightning claims fell in 2007, but the average cost per claim continues to rise as more homeowners buy computers and other expensive electronics prone to power surges.

11 Lightning Losses

12 Lightning Losses

13 DISASTER PREPAREDNESS Consumers and business owners need to understand what they can do to prevent both property damage and personal safety in regards to lightning. Regarding insurance coverage, it is important to make sure that policyholders understand what they are covered against and that they have the right amount of coverage. Consumers and business owners need to have an inventory.

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15 . INSURANCE PULSE PUBLIC ATTIDUTES: DISASTER PREPAREDNESS KEY FINDINGS 2008: Home inventory

16 Insurance Discounts Insurance discounts vary by state and by insurance company. Insurers provide discounts for things proven to reduce insurance losses or for good corporate citizenship reasons.

17 Communications Suggestions

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19 COMMUNICATIONS OVERVIEW: DIRECT TO CONSUMER COMMUNICATIONS

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21 Site for small and middle market commercial risks; has been highlighted by major media, including the WSJ

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24 RESOURCES AND WEB SITE OVERVIEW: SOCIAL MEDIA PRESENCE I.I.I. Video Channel Over 50 I.I.I. videos posted on YouTube Most viewed: Road Rage (69,893 views)

25 I.I.I. Blog and featured software Insurance tools Dynamically shared content I.I.I. Video

26 Insurance Information Institute On-Line If you would like a copy of this presentation, please give me your business card with address 26