Presentation ti to the Geneva Association s 8 th Chief Communications Officer s Meeting

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1 Presentation ti to the Geneva Association s 8 th Chief Communications Officer s Meeting Madrid, Spain October 5, 2010 Jeanne M. Salvatore, Senior Vice President, Public Affairs & Insurance Information Institute 110 William Street New York, NY jeannes@iii.org

Salvatore, Senior Vice President, Public Affairs & Insurance Information

2 Presentation Outline Policymaker Education III I.I.I. Insurance Pulse Findings I.I.I. Media Index

3 Policymakers website: InsuranceMatters User Highlights Til Tailored Focused Current Clear and Concise Factual Searchable Exportable Multimedia Content Accessible Content is arranged so that material most important to policymakers is just one or two clicks away 3

Exportable Multimedia Content Accessible Content is arranged so

4 Insurance Handbook The new I.I.I. Insurance Handbook launched in 2010 provides vital information for a wide variety of audiences: Public Policymakers Reporters Regulators Students Insurance Company Employees Academics 4

variety of audiences: Public Policymakers Reporters

5 Consumer Perceptions of Insurers Insurance Pulse Highlights Favorability of auto and home insurers rebounded. Auto insurers were highest rated of all industries surveyed. Favorability of banking recovered. Ratings of financial services ranked lowest. Healthcare debate did not change public s opinion of auto and home insurers [no apparent spillover] Pulse Is an Annual Telephone Survey the I.I.I. Has Commissioned Since Survey of 1,006 Adults Conducted May 13-16, Source: Insurance Information Institute. 5

Ratings of financial services ranked lowest.

6 Percent of Public Rating Industry as Very or Mostly Favorable, Auto insurers ranking highest of industries surveyed 60% 50% 40% 30% 20% 52% 53% 58% 54% 56% 54% Financial services ranked lowest of industries surveyed 55% 52% 50% 47% 46% 41% 38% 37% 37% 34% 30% 28% 26% 22% 10% 0% Auto/Home insurance Auto insurance Home insurance Life insurance Health insurance Banking Drug companies Mutual funds Favorability of Auto and Home Insurers Held Steady between May 2009 and May Financial services companies Oil and gas companies 6

26% 22% 10% 0% Auto/Home insurance Auto insurance Home insurance Life insurance Health insurance Banking 2009 2010 Drug companies Mutual

7 Percent of Public Rating Industry as Very or Mostly Favorable, % 60% 50% 40% 30% 20% 10% 0% Auto and home insurance Industry Standing With the Public Is Not Static But Changes Over Time 7

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Auto and

8 Q. Has the recent financial crisis prompted you to try to save money on your auto and/or home insurance? No May 2009 Don t know No May 2010 Don t know 4% 1% 40% 39% 56% Yes 60% Yes About Two of Five Respondents Said They Tried to Save Money on Auto and/or Home Insurance because of the Financial Crisis, the Same Proportion as a Year Ago. 8

No May 2009 Don t know No May 2010 Don t know 4% 1% 40% 39% 56% Yes 60% Yes About

9 Q. What do you think will happen to the price of insurance because of the financial crisis? Will it go up, go down or remain the same? Remain the same 19% May 2009 Don t know 8% Remain the same May 2010 Don t know 22% 1% Go down 8% 65% Go up Go down 6% 71% Go up Seven Out of 10 Americans Think the Price of Insurance Will Go Up Because of the Financial Crisis 9

Remain the same 19% May 2009 Don t know 8% Remain the same May 2010 Don t know 22% 1% Go

10 Q. Has the debate over health insurance reform changed your opinion about auto and home insurance companies? Yes Don t know 13% 2% No 85% A Majority of Americans Have Not Changed Their Opinions of the Auto and Home Insurance Industry as a Result of the Debate Over Health Insurance Reform 10

Yes Don t know 13% 2% No 85% A Majority of Americans Have Not Changed

11 Q. Is your opinion of auto and home insurance companies now Don t know More favorable 10% 16% Less favorable 74% Of the 13% of Respondents Who Said the Debate Had Changed Their Opinion About the Auto and Home Insurance Industry, Three-Quarters Said They Were Now Less Favorable 11

Respondents Who Said the Debate Had Changed Their Opinion About the

12 32 % of People in Louisiana and Mississippi Think Their Homeowners Policy Covers Damage from Hurricane-Related Flooding Double the National Average. All respondents Filed a Katrina claim Did not file a Katrina claim 45% 40% 35% 30% 32% 32% 32% 35% 39% 33% 30% 29% 33% 25% 20% 15% 16% 10% 5% 0% Total U.S. Louisiana and Mississippi Louisiana Mississippi Louisiana and Mississippi Louisiana Mississippi Louisiana and Mississippi Louisiana Mississippi 12

All respondents Filed a Katrina claim Did not file a Katrina claim 45% 40% 35% 30% 32% 32% 32% 35% 39% 33% 30%

13 Q. Should people who live in the states with the highest unemployment rates be charged lower premiums for auto and home insurance? Suggests many Don t know People believe that risk should be secondary to ability to pay. 2% This suggests No 41% implicit support for economic subsidies, though 57% it s unclear if people would Yes support them explicitly About 40% of Americans Think That People Who Live in States Most Affected by the Recession Should Pay Less for Auto and Home Insurance 13

2% This suggests No 41% implicit support for economic subsidies, though 57% it s unclear if people would Yes support them

14 Q. Should insurance companies be allowed to charge higher insurance premiums for 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 91% People who have poor driving histories such as many speeding tickets and/or accidents 52% People who live in places that are prone to disasters such as hurricanes or earthquakes 22% People who have pre-existing medical conditions 7% None of these Respondents answering "yes" Many People Believe the Cost of Insurance Should Reflect the Risks Over Which an Individual Has Some Control 14

prone to disasters such as hurricanes or earthquakes 22% People who have pre-existing medical conditions 7% None of these

15 Q. What do you think the effect of MORE lawsuits being filed has on the cost of insurance for autos, homes and businesses? Do you think they Have no effect Don t know Result in lower insurance costs 5% 9% 1% Result in higher insurance costs 84% Eight Out of 10 Americans Realize That Lawsuits Negatively Affect Insurance Prices 15

Do you think they Have no effect Don t know Result in lower insurance costs 5% 9%

16 I.I.I. Media Index, P/C, First Six Months 2009 vs First Six Months 2010 Percent increase/decrease from previous year 1,240% 368 % 224% 267 % 200 % 150% 100% 31% 10% 15% 20% 43% 17% 35% 15% 49% 31% 18% 23% 55% 3% 50% 0% -9% -16% -38% -27% -1 5% Wildf dfires Mold Silica Chinese Dryw ywall Clue -50% -100% 16 Market Conditi itions Solve ncy Oil Spill and Insuran ce Bon d Insu ran ance Asbes estos Workers Comp Insurance Fraud Auto Investigati tions Hurrica nes Homeo wners Terror orism Glob obal Warming/Climate Cha ng Medica l Malprac actice Tornad does Earthqu akes Credit Sco oring Tort Toyota

-50% -100% 16 Market Conditi itions Solve ncy Oil Spill and Insuran ce Bon d Insu ran ance Asbes estos Workers Comp Insurance Fraud Auto Investigati

17 I.I.I. Media Index, L/H, First Six Months 2009 vs First Six Months ,000 20,000 15,000 10,000 5, Health Insurance* Life Insurance Retirement Annuities Long Term Car are Insurance Avian Flu Solvency Disabilit ility Insurance

Health Insurance* Life Insurance Retirement Annuities Long

18 Insurance Information Institute Online:

The Role of Media in Shaping Today s Insurance Regulatory Environment

The Role of Media in Shaping Today s Insurance Regulatory Environment National Conference of Insurance Guaranty Funds Managers Meeting Ft. Lauderdale, Fl - November 3, 2010 Loretta Worters, Vice President