All posts by Maria Sassian

Put a smoke alarm checkup on your spring cleaning list

istock.com

By Lynne McChristian, I.I.I. Non-resident Scholar and Media Spokesperson

Ah, spring! The season of renewal, of fresh beginnings, of flowers in bloom – and of fresh batteries in the smoke alarm. Yes, you probably overlooked that last item, so here’s a reminder to put it on the spring to-do list.

Checking (and changing) the batteries in the smoke alarm is a good springtime habit. Most homes have a smoke alarm, but if you don’t check it with regularity,  you can’t be sure it’s working. It is one of those out-of-sight, out-of-mind things, so here’s a reminder to put your home or business smoke alarm top of mind.

According to the National Fire Protection Association (NFPA), almost three of every five home fire deaths resulted from fires in homes with no smoke alarms or in homes where the smoke alarm was not working. NFPA also points to missing or disconnected batteries as the reason for inoperable smoke alarms. Dead batteries cause 25 percent of smoke alarm failures.

That chirping sound you hear at night? It’s not the first robin of spring. It’s the smoke alarm battery alerting you that it’s time for a change. And, if your smoke alarm is more than 10 years old, replace the entire alarm. It’s inexpensive protection that is worth every cent.

Most insurance companies offer discounts for smoke alarms, particularly monitored systems. After you check the batteries and/or upgrade your smoke alarm, check with your insurer on any possible discount. It might be a small amount, but the alarm itself is big protection – for every season.

 

New York City’s Disaster Resiliency

Istock.com, J. Lazarin, New York City, USA – October 31, 2012: In the aftermath of Hurricane Sandy

It was a balmy 67-degree day in New York on March 15, which prompted the inevitable joke that since it’s warm outside, then climate change must be real. The wry comment was made by one of the speakers at the New York Academy of Science’s symposium Science for decision making in a warmer word: 10 years of the NPCC.

The NPCC is the New York City Panel on Climate Change, an independent body of scientists that advises the city on climate risks and resiliency. The symposium coincided with the release of the NPCC’s 2019 report, which found that in the New York City area extreme weather events are becoming more pronounced, high temperatures in summer are rising, and heavy downpours are increasing.

“The report tracks increasing risks for the city and region due to climate change,” says Cynthia Rosenzweig, co-chair of the NPCC and senior research scientist at Columbia University’s Earth Institute. “It continues to lay the science foundation for development of flexible adaptation pathways for changing climate conditions.”

“What you can’t measure, you can’t manage,” said Columbia University’s Klaus Jacob, paraphrasing Peter Drucker and making a concise case for the importance of the work the NPCC is doing.

The changes in temperature and precipitation that New Yorkers are experiencing are broadly tracking the climate change projections made by the NPCC in 2015. However, the 2019 report notes that such comparisons should be viewed with caution because of the role that natural variation plays in the short term.

William Solecki, co-chair of the NPCC said “Recent scientific advances have…helped the panel craft new sets of tools and methods, such as a prototype system for tracking these risks and the effectiveness of corresponding climate strategies.”

One such tool is the Antarctic Rapid Ice Melt Scenario, which the NPCC created to model the effects of melting ice sheets on sea level rise around NYC. The model predicts that under a high-end scenario, monthly tidal flooding will begin to affect many neighborhoods around Jamaica Bay by the 2050s and other coastal areas throughout the city by the 2080s.

The NPCC 2019 report recommends that the city establish a coordinated indicator and monitoring system to enable the city and its communities to better monitor climate change trends, impacts, vulnerability, and adaptation measures.

The report also notes the important role of insurance in support of climate change adaptation and mitigation. “Public–private partnerships are essential for facilitating infrastructure resilience, particularly for publicly owned infrastructure systems that often lack resources for resilience improvements. Coordination of insurance and finance is an important future direction to achieve comprehensive resiliency in infrastructure that reduces negative climate change consequences,” said the report.

The I.I.I.’s primer on climate change and insurance issues can be found here.

I.I.I. and the Weather Channel get the word out about flood insurance

How to Get Flood Insurance

Only 12 percent of Americans have flood insurance but many more will need it in a severe weather event. Learn more at iii.org about how they are helping homeowners and renters to obtain it.

Posted by The Weather Channel on Thursday, March 7, 2019

 

To make sure that homeowners are aware of the importance of flood insurance, the I.I.I. recently partnered with the Weather Channel.

A video posted to the Weather Channel’s Facebook page demonstrates just how destructive flooding can be; for example, in the video you can see the devastation from Hurricane Sandy wreaked on Breezy Point, a coastal community in Queens NY.

“What’s remarkable about flood insurance is that only 12 percent of people have it,” says Sean Kevelighan, I.I.I.’s CEO. One misconception that people have about flood insurance is that it’s included in a homeowners policy. But that’s not the case. A separate flood policy must be obtained. Flood insurance is mostly sold by FEMA’s National Flood Insurance Program, but some private insurers have begun offering it as well.

For those savvy enough to have purchased the coverage, it made a world of difference. “If we did not have flood insurance we would have been completely dependent on [government assistance]. It would never have been enough to fix out house”, says one resident of Breezy Point.

The video has garnered over a thousand views so far. We hope it leads to more people getting this invaluable protection.  For more information about flood insurance click here.

From the I.I.I. Daily: Our most popular content, March 8 to March 14

Here are the 5 most clicked on articles from this week’s I.I.I. Daily newsletter.

 

To subscribe to the I.I.I. Daily email daily@iii.org.

 

 

 

From the I.I.I. Daily: Our most popular content, March 1 to March 7

Here are the 5 most clicked on articles from this week’s I.I.I. Daily newsletter.

To subscribe to the I.I.I. Daily email daily@iii.org.

 

 

 

Study: One third of Americans lie on auto insurance applications

Most people agree that honesty is the best policy, but when it comes to filling out insurance applications, many consumers are willing to fudge the truth to get a better rate. According to a study from finder.com, an estimated 35 million Americans have lied on an insurance application.

Almost one in three (29 percent) of the people who have lied on an insurance application have done so for car insurance. That amounts to 10.2 million Americans who were willing to lie to get the best coverage for the road.

Following car insurance, false information is most likely to appear on applications for health insurance (22 percent), life insurance (21 percent), income protection insurance (8 percent), travel insurance (7 percent), home and contents insurance (7 percent) and pet insurance (5 percent).

More men lie than women, but women are more likely than men to lie on an application in five of seven categories: health insurance, income protection insurance, travel insurance, home and contents insurance and pet insurance. Men lead women when it comes to lying on car insurance and life insurance applications.

“Taking creative liberties on your insurance application may seem like an innocent white lie, but it’s actually considered fraud, and the repercussions can be serious. If found out you may be charged a higher premium, denied a policy or even charged with fraud, requiring you to pay a fine or even do jail time,” said Finder’s consumer advocate Rachel Dix- Kessler.

There are numerous ways to save money on car insurance. The Insurance Information Institute has these tips for shopping around for the best policy.

For more information on insurance fraud click here.

From the I.I.I. Daily: Our most popular content, February 22 to February 28

Here are the 5 most clicked on articles from this week’s I.I.I. Daily newsletter.

To subscribe to the I.I.I. Daily email daily@iii.org.

I.I.I./ICM Presents Recruitment and Retention: Best Practices and Paths Not Taken

In this hour-long live session, part of February Insurance Careers Month, a panel of experts shared insights and best-practices for engaging top young talent from non-RMI backgrounds and optimizing recruitment, onboarding and retention to better contend with emerging disruptive forces (Insurtech, virtual workspaces).

Watch this webinar now.

Presentation Date
February 20, 2018 at 12:00 p.m. est

Speakers

  • Tony Cañas, CPCU, MBA, of Jacobson Group and Insurance Nerds (InsNerds.com)
  • Tara N. Spain, Vice President of the Travelers Foundation and Second Vice President of Community Relations at Travelers
  • Bruce Soltys, Second Vice President, Strategic Sourcing and Talent Acquisition at Travelers
  • Dr. Steven N. Weisbart, CLU, Chief Economist and SVP Research and Education, I.I.I.
  • Noelle Codispoti, CEO, Gamma Iota Sigma

Following are links to resources that were mentioned during the session.

Videos

Websites

Jacobson Group Whitepaper

Travelers/Diversity and Inclusion programs

Travelers Roadtrip Nation campaign

I.I.I. Economics and Employment reports by Dr. Steven Weisbart

Click to download the presenters’ slides

From the I.I.I. Daily: Our most popular content, February 15 to February 21

Here are the 5 most clicked on articles from this week’s I.I.I. Daily newsletter.

 

To subscribe to the I.I.I. Daily email daily@iii.org.

 

Insurance Careers Month: Show some love

By Lynne McChristian, I.I.I. Non-resident Scholar and Media Spokesperson

The first slide of my presentation to a group of college students on Valentine’s Day last week was an image of an “I Love Insurance” button. Absent the foresight to bring such buttons for all, Plan B involved bringing heart-shaped chocolates. It fit in a way many of us in this profession would understand, as pathways into insurance are often a Plan B. Many universities are interested in helping students make a career in insurance their A-Game Plan, and that is exactly the type of student group I met with last week at the Gies College of Business at the University of Illinois at Urbana-Champaign (UIUC).

More than 20 students are participating this semester in the University of Illinois’ AXIS Risk Management Academy. In a partnership with global specialty insurer/reinsurer AXIS Global Holdings, UIUC established the Academy to interest students from various disciplines in the myriad of career paths available in the insurance industry. Students in this year’s Academy are studying actuarial science, math and finance, financial planning and atmospheric science. Bringing professionals into their meetings to discuss jobs and career paths helps them see the opportunities, and it demonstrates how someone with a degree outside of insurance and risk management can put those skills to work within the insurance field.

I typically start a presentation to insurance newbies with the negative perceptions of the industry. It’s the “elephant in the room” that needs to get out of the way. Using images from various recent natural disasters, I talk about what happened, who was affected, how much it cost, what we learned – and spend time pointing out what is obvious to many of us but not so much to neophytes; simply, that too often people are surprised by the devastation because they are in denial about their risks. With that message conveyed, I can show that insurance is a people business, in which we help people recover from whatever disaster befalls them.

Insurance is personal, and that is a theme that resonates with Gen Z. How do I know? It’s not deep research on my part, but when students come up after a presentation with spark of light in their eyes that shows you’ve got their interest? That’s proof enough.

 

Lynne McChristian is the director of the Office of Risk Management & Insurance Research at the University of Illinois at Urbana-Champaign, where she is also a senior instructor teaching insurance and enterprise risk management classes.