MIDWEST 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). Ohio also sustained insured-property damage from the tornado/windstorm that hit the Ohio Valley (Indiana, Kentucky and Ohio) in September.
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.
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. This quarter's report brings catastrophe losses to $3.7 billion for the first nine months of 2002.
Area news
IIABA presents young agent awards
At the IIABA's Young Agent Leadership Conference in New Orleans in September, several midwestern state young agent groups were recognized:
* For the third consecutive year, the Young Agents Committee of the Independent Insurance Agents of Indiana won the Outstanding Young Agents Committee of the Year Award.
* The Young Agents Committee of the Professional Independent Insurance Agents of Illinois received the Outstanding Communications Award.
* The Young Agents Council of the Michigan Association of Insurance Agents was presented with the Outstanding Young Agents Meeting Award.
See pages 98-100 for more information on these awards.
State Farm increases rates, offers student discounts
State Farm Mutual Automobile Insurance Company has raised rates in these states: Indiana--Overall rate level increased an average of 4.1%. According to the company, even with this rate change, State Farm's overall rates in Indiana will still be about the same as they were five years ago.
Minnesota--Overall rate level increased an average of 6.8%. State Farm says that during the six years prior to this change, overall rates in Minnesota declined 6.8%.
Wisconsin-- Overall rate level increased an average of 4.2%. According to State Farm, even with this rate change, the company's overall rates in Wisconsin are 7.5% lower than at the beginning of 1997.
State Farm's Steer Clear® driver safety program is now being offered in Wisconsin. The premium discount could be as much as 15% for drivers under 25 who complete the program and meet additional criteria.
Illinois
John Manner Agency acquired
In September, Brown & Brown, Inc., acquired the John Manner Insurance Agency, Inc., in Joliet. John Manner, with annualized revenues of approximately $4.2 million, has been a full service property/casualty insurance agency for more than 30 years.
Granum honored
O. Alfred Granum, CLU, an agent and general agent with Northwestern Mutual Life in Chicago for nearly 50 years, and creator of the "One Card System," has received the 2002 John Newton Russell Memorial Award. The award recognizes exceptional contributions to the life insurance industry and is given by the National Association of Insurance and Financial Advisors (NAIFA).
Privacy rule considered
In late October, the Illinois Department of Insurance began considering a proposed privacy rule that, according to the National Association of Independent Insurers (NAII), will further safeguard the personal information of customers and provide an insurer the ability to design a security program appropriate for the nature and scope of its activities. The proposal will be presented to the Illinois Joint Committee on Administrative Rules, which meets this month. It should become final in 2003, according to the NAII.
Indiana
Winter conference planned
The Independent Insurance Agents of Indiana's Winter Conference will be held February 11-15, 2003, at the Camino Real Zaashila in Huatulco, Mexico. For more information, contact Freida Ligman at (800) 438-4424 or Ligman@bigi.org. *
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