Time waits for no one, and neither does the weather. While we’ve worked diligently responding to the COVID-19 pandemic over the last month and a half, severe weather has started rearing its head. Many states, including my home state of South Carolina, experienced devastating tornadoes in April. Over Easter weekend, tornadoes in the Palmetto State killed nine people, making it the second-deadliest tornado outbreak in the state’s history.
With an above-average storm season predicted, consumer education on reducing risks and recovering from the effects of tornadoes, storms and other natural disasters remains as critical as ever.
I look forward to continuing our discussions during the April 30th Member Call. Before this meeting, I want to take a moment to make you aware of some of our current projects.
In order to encourage consumers to prepare for the Atlantic storm season and consider purchasing flood insurance, the NAIC communications department expanded their #YourRiskisReal campaign to include information about preparation and mitigation. The new public relations campaign is called #ReduceYourRisk. The campaign includes media outreach, social media posts, consumer insights and infographics which are available to your department through the NAIC’s PIO Resource Center.
A regulator drafting group finalized a data call to be issued soon to collect premium, policy and exclusion information, as well as loss and claims data, from insurers related to business interruption policies. Regulators continue to work on subsequent data calls related to other property and casualty lines of business, such as general liability, event cancelation, travel insurance, workers’ compensation, and medical professional liability.
Coronavirus Resource Center
We added a searchable database of state actions to the NAIC’s Coronavirus Resource Center as well as additional Consumer Insights. The database has more than 1,000 different state actions and notices. The database is updated twice a week. Please send any new information about your state’s action to email@example.com. The communications team continues to create consumer education pieces on the impact of COVID-19. If you would like to have specific insights created, please contact Laura Kane, firstname.lastname@example.org.
Business Interruption Statement
In late March, the NAIC released a statement on business interruption insurance cautioning Congress and the Administration against retroactively re-writing policies to include new business interruption coverages. Click here to read the entire statement. We continue to engage with Congress as it considers various proposals regarding business interruption insurance coverage and other legislative responses.
Statutory Accounting Principles (E) Working Group Changes
The NAIC’s Statutory Accounting Principles (E) Working Group adopted three interpretations related to COVID-19 earlier this month. The statutory accounting exceptions allow insurance reporting entities to respond to policyholder needs for premium payment delays, and address mortgage loan modification or forbearance requests while mitigating insurance reporting entity concerns on the impact to statutory financial statements.
2019 NAIC Annual Report
We released our 2019 Annual Report. At the time of the 2019 Annual Report’s creation, the threat of COVID-19 had just emerged. As a result, the report does not discuss the risks of the pandemic. I encourage you to read the report, as it highlights many of the important activities of the association and includes the organization’s 2019 financial statements. You can view the report here.
The Regulators Podcast
In this month's episode of The Regulators podcast, Mike Consedine and I discuss the challenges facing state insurance departments and the insurance sector as we adjust to the COVID-19 pandemic. I highly encourage you to subscribe, rate, and listen to the podcast.
Insurance Compact News
The Insurance Compact created a COVID-19 FAQ to assist Compact filers. The FAQ also serves as a resource for regulators to reference the Uniform Standards framework, in terms of best practices, when reviewing state-filed applications with COVID-19 related questions.
In addition to its COVID-19 efforts, the Insurance Compact released its 2019 Annual Report in early April, ending the year with its largest positive net revenue ever. The report also shows that the Insurance Compact collected and remitted about $3.5 million in states filing fees to the Compacting States.
NIPR staff, like most of us, are working remotely at full capacity. To support state COVID-19 response efforts, NIPR established a communication hub to share information about state orders and bulletins issued by state departments concerning licensing.
To encourage early renewals, NIPR launched a Renew Early social media and email campaign targeting the producer community.
I look forward to talking with you on our April 30th Member Call.