A.M.BestTV: Insurers Caught Up in Rising Flood Controversy

OLDWICK, N.J.--(BUSINESS WIRE)-- This A.M.BestTV episode looks at the National Flood Insurance Program (NFIP), which is offering to reopen claims from Superstorm Sandy. As the NFIP does this, private insurers that provide administrative services, but do not write the business, say they should not be blamed for problems with the federal program. Click on http://www.ambest.com/v.asp?v=flood1615 to view the entire video program.

Recently, there has been extensive media coverage in reference to how the NFIP has handled claims from Superstorm Sandy. In response, the NFIP has offered to reopen the 144,000 Superstorm Sandy claims, which gives government insurers a black eye. “Property Casualty Insurers Association of America (PCI) is purely a third party administrator of the NFIP,” said Don Griffin, vice president of personal lines at PCI. “My company sells the policies, services them and adjusts any claims, but the risk bearers are the NFIP.”

Superstorm Sandy was the fourth most expensive catastrophe for the insurance industry. Private insurers had 5.1 million claims and paid out $18.8 billion, and this does not include the 144,000 claims filed with the NFIP, which paid out $8.2 billion.

According to Brad Kieserman, deputy associate administrator at the Federal Emergency Management Agency (FEMA), presently, there are only 1% of Superstorm Sandy claims in court; however, the NFIP is offering to re-examine all 144,000 claims. “FEMA is aware that revisions have to be made to the NFIP. As such, we are undertaking sweeping reforms that will change the way the NFIP is delivered, which begins with making sure that anyone involved in delivering the program shares the same values that we have of putting policyholders, first,” said Kieserman.

Watch for the follow-up episode A.M.BestTV will be doing on this issue.

Other people who appear in this episode include:

• Robert Hartwig, president at Insurance Information Institute.

Recent episodes of A.M.BestTV include:

• ‘First Monday’: Solvency Rules Shape Mexico’s Risk Culture: A.M. Best’s new managing director in the agency’s Mexico office, Manuel Calderón, discusses his country’s Solvency II-type regulatory regime and how it is working to balance risk and growth: http://www.ambest.com/v.asp?v=fmmexico615
• ‘First Monday’: As the Social Security Disability Insurance Fund Dries Up, Insurers Prepare: Senior Financial Analysts Kate Steffanelli and Michael Adams discuss how the U.S. disability fund is projected to run empty in 2016 and the potential positives and negatives for affected disability insurers: http://www.ambest.com/v.asp?v=fmdiability615.
• ‘First Monday’: Stagnant Life/Health Sector’s Pulse Quickens: Senior Financial Analyst Thomas Zitelli and Financial Analyst Frank Walko discuss how the U.S. life/health insurance industry performed in 2014, exploring positive retirement market trends amid interest rate and reinvestment risks: http://www.ambest.com/v.asp?v=fmlifehealthresults615.
• ‘First Monday’: Insurers Warming Up to Social Media: Vice President Stephen Irwin and Senior Financial Analyst Joan Sullivan speak about a survey A.M. Best conducted where two-thirds of respondents from the insurance industry expressed the belief that their company’s social media strategy needs improvement: http://www.ambest.com/v.asp?v=fmsocialmedia615.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150608006378/en/

A.M. Best Company
Lee McDonald, 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
[email protected]

Source: A.M. Best Company

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