SOUTHWEST REGIONAL NEWS
Insurers are expected to pay $675 million to home owners and businesses for insured-property losses from six catastrophic events in the third quarter of this year, according to preliminary estimates by the Insurance Services Office, Inc.'s (ISO) Property Claim Services (PCS) unit. Indiana topped the list for insured-property damage ($150 million), followed by Wyoming ($98 million), Louisiana ($95 million), Arizona ($75 million) and Virginia ($50 million). Colorado also sustained insured-property damage from wind/thunderstorm event in August that also hit South Dakota and Wyoming.
In total, the third quarter saw six events in 18 states that generated nearly 260,000 claims for damage to personal and commercial property and motor vehicles, ISO said.
Catastrophe losses in the quarter were relatively low because there were fewer tornadoes as recorded by the National Weather Service--196 compared with 273 last year, 247 in 2000 and 237 in 1999. This quarter's report brings catastrophe losses to $3.7 billion for the first nine months of 2002.
ISO's PCS unit defines a catastrophe as an event within a particular territory that causes $25 million or more in insured-property losses and affects a significant number of property and casualty policyholders and insurers.
Area news
Small agents meetings planned
Several states are hosting conferences for small agents:
* The Kansas Association of Independent Agents (KAIA) will hold its Rural & Small Agents Conference, January 28-30, 2003, in Salina. For more information, call KAIA at (785) 232-0561.
* The Nebraska Association of Independent Agents (NAIA) is hosting a Farm & Small Agents Convention, January 22-23, 2003, at the Ramada Inn in Kearney. For more information, call NAIA at (402) 476-2951.
* The Missouri Association of Independent Agents (MAIA) is planning a Small Agency Conference, March 27-28, 2003, at the Holiday Inn Select in Columbia. For more information, call MAIA at (573) 893-4301.
State Farm raises rates
State Farm Fire and Casualty Company has increased Oklahoma homeowners rates by an average of 4.3%.
State Farm Mutual Automobile Insurance Company has raised auto rates in Colorado an average of 10%. This rate change is primarily influenced by a 17.7% jump in premiums for the liability coverage and a 10.6% increase in premiums for the personal injury protection, according to State Farm. The personal injury protection coverage primarily pays for medical treatment resulting from a car crash.
Auto insurance rates in Nebraska have increased an average of 6.4%. State Farm reports that even with this increase, Nebraska's rates will be less than 1% above their level of January 1997.
State Farm's Steer Clear® driver safety program is now being offered in New Mexico. The premium discount could be as much as 15% for drivers under 25 who complete the program and meet additional criteria.
Iowa
Fulwider elected to IIABA committee
Bob Fulwider, West Liberty, has been elected to serve on the Independent Insurance Agents and Brokers of America's (IIABA) executive committee.
Arkansas
Agency acquired
Brown & Brown, Inc., has acquired Dunn-Murphy-White Insurance Agency in Russellville. With annualized revenues of approximately $1.3 million, Dunn-Murphy-White is a full-service commercial property/casualty agency serving clients throughout the state.
Missouri
Judge blocks rule that could raise workers comp costs
In late September, Cole County Circuit Judge Thomas Brown granted insurers a temporary injunction blocking the state insurance department from implementing an emergency rule that could increase workers compensation costs in Missouri. The regulation would have allowed employers to contract with a managed care organization (MCO) to provide workers comp benefits without first notifying or getting agreement from the workers comp carrier. That carrier then would have to reimburse the MCO for its services, including fees in addition to treatment provided. *
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