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New Option for Gulf State Homeowners Insurance

Usually when we discuss news of homeowners’ insurance in Florida and other hurricane-prone areas, it is to report how yet another insurer has pulled up stakes and decided to stop writing policies in the region. But yesterday’s announcement from Travelers that they will begin a pilot program to write policies in Certain Atlantic and Gulf states bucks that trend. The news came as part of an initiative to raise awareness of catastrophe preparedness that was started by The Travelers Institute, a kind of think tank group created by Travelers to further the discussion of public policy topics of particular importance to the insurance community. 

The pilot program brings Travelers into the homeowners’ insurance market in these high-risk areas, but with an important condition — the company will be writing policies for those homes that meet specific natural disaster resistant building standards. As an added incentive, qualifying homes will be eligible for a 35% hurricane premium credit.

Eric Nelson, Travelers’ vice president of personal insurance, explained that the company wants to educate consumers about the value of these standards, which include recommendations for reinforced concrete framing, wind-resistant roofs and impact-resistant glass, so that they ask for these features when building or retrofitting a home.

“Homes built to meet these stringent standards are better able to withstand severe weather, reducing property losses and saving lives, and we want to promote and raise awareness of these smarter building practices,” said Nelson. “Building stronger homes is a key principle of the Travelers Coastal Hurricane Wind Zone Plan, our proposal to improve the availability and affordability of catastrophic wind coverage in communities along the Gulf and Atlantic coasts. We hope this initiative and meaningful premium credit will encourage homeowners, builders and building officials to adopt these disaster resistant standards.”

For homeowners in high-risk areas, Travelers’ program seem like a reasonable alternative to state-run pools and exorbitantly high premiums. Of course, it will take some effort (and money) to meet these fortification standards but in the end it is about managing the risk proactively, which can’t be all bad. And with so many insurers choosing to leave these states, perhaps programs like this will give insurers the incentive to come back and hopefully bring lower insurance premiums with them.

2009 – The Year of the Food Recall

It has been an undeniably busy year when it comes to food recalls. From salmonella-contaminated peanut butter back in January that sickened thousands and killed nine to the more recent cat food recall issued by Diamond Pet Foods, the same company responsible for the tainted pet food that killed dozens of dogs around the nation in 2005, it seems there’s a new recall each week.

In fact, just yesterday more than 20,000 pounds of beef was recalled amid worries it is linked to at least two cases of salmonella. The beef was packaged by Beef Packers Inc., a Fresno-based company that is owned by Cargill, a company that has had it’s share of time in the spotlight for contaminated food. And last week, the FDA announced that oysters harvested from San Antonio Bay in Texas have caused about a dozen cases of norovirus-related illnesses.

To read the complete list of 2009 food recalls issued by the FDA is astonishing and terrifying. Let’s take a look at the month of November alone:

November 30, 2009 – La Espiga De Oro, Inc. Issues Allergy Alert on Undeclared Whey in Flour Tortillas
November 27, 2009 – Diamond Pet Foods Announces Recall of Premium Edge Adult Cat and Premium Edge Hairball Cat Food
November 25, 2009 – Vita Food Products, Inc. Issues an Alert Announcing Undeclared Wheat in ELF Branded Herring in Sour Cream
November 25, 2009 – Stryker Corporation’s Instruments Division Issues Worldwide Class 1 Recall of 23 Operating Room System II Surgical Navigation Systems; Catalog numbers 7700-100-000 and 7700-101-201
November 24, 2009 – Rikki USA, Inc.Re-Issues Allergy Alert on Undeclared Shrimp in Toi Sauce Thai Red Curry (Panang) produced for the Siamrica Co. to Correct Lot Number
November 22, 2009 – Timco Worldwide Inc. issuance of a voluntary recall of Large Seedless Watermelons because of possible health risk
November 20, 2009 – Five Crowns Marketing Voluntarily Recalling Cantaloupes Packed under the Majesty Label Because of a Potential Health Risk Due to Possible Contamination of Salmonella
November 20, 2009 – Unilever Issues Nationwide Allergy Alert on Undeclared Sulfites in Certain Shedd’s Country Crock® Chilled Side-Dish Products
November 19, 2009 – Service Smoked Fish Corp. Recalls Smoked Nova Salmon Because of Possible Health Risk
November 19, 2009 – Fresh & Easy Neighborhood Market Issues Allergy Alert on Undeclared Pecans in Mislabeled Fresh & Easy Pumpkin Cheesecake Pies
November 19, 2009 – P&G Voluntarily Recalls Specific Lots of Vicks Sinex Nasal Spray in the United States, Germany and the United Kingdom
November 18, 2009 – Nassau Candy Issues Nationwide Allergy Alert Because Of Possible Undeclared Allergens on their Tasty Dish Snack Tubs of Chocolate Almonds, Chocolate Raisins and Sour Neon Worms
November 17, 2009 – SNACKS ON RACKS, INC. Issues Nationwide Allergy Alert because of Undeclared Allergens in Their Gourmet Snacks Pack Product Line
November 17, 2009 – Cardiovascular Systems ViperSheath Sheath Introducer – Recall
November 17, 2009 – Superior Foods Co. Issues Allergy Alert On Undeclared Allergens in Fish Product
November 16, 2009 – Cardiovascular Systems Initiates Voluntary Recall of ViperSheathTM Sheath Introducer
November 13, 2009 – Cardiac Science Notifies AED Customers of Nationwide Voluntary Medical Device Correction
November 13, 2009 – Conagra Foods Issues Nationwide Allergy Alert on a Limited Number of 15 oz. Tubs of Blue Bonnet Light Spread
November 12, 2009 – Synthes USA, Ti Synex II Vertebral Body Replacement – Class I Recall
November 12, 2009 – IDS Sports Conducts a Voluntary Nationwide Recall of Bromodrol, Dual Action Grow Tabs, Grow Tabs, Mass Tabs, and Ripped Tabs TR
November 12, 2009 – GMP Herbal Products, Inc. Issues a Voluntary Nationwide Recall of a Weight Loss Supplement Found to Contain Undeclared Drug Ingredients
November 09, 2009 – Edwards Lifesciences CardioVations EndoClamp Aortic Catheter – Class 1 Recall
November 09, 2009 – RockHard Laboratories Issues a Voluntary Nationwide Recall of Specific Lots of RockHard Weekend marketed as Dietary Supplement
November 06, 2009 – Hospira Issues Nationwide Voluntary Recall of Certain Lots of Liposyn™ and Propofol Products That May Contain Particulate Matter
November 05, 2009 – FDA Health Alert for Certain Pet Treats Made by Pet Carousel
November 04, 2009 – Jelly Belly Issues Allergy Alert on Undeclared Peanuts in 7.5oz cylinder-style packages of 49 Flavors Jelly Belly jelly beans
November 04, 2009 – Centurion Medical Products – Premie Pack and Meconium Pack – Recall
November 04, 2009 – PetSmart Voluntarily Recalls Dentley’s Beef Hooves
November 03, 2009 – American Regent Expands Voluntary Recall to Include All Lots of Ketorolac Tromethamine Injection, USP 15 mg/mL; 1mL Single Dose Vial
November 03, 2009 – BODYBUILDING.COM Is Conducting a Voluntary Nationwide and International Recall of 65 Dietary Supplements That May Contain Steroids
November 03, 2009 – Pelican Bay Ltd. Issues Nationwide Allergy Alert on Undeclared Tree Nuts in Caramel Chocolate Truffle Hot Chocolate Mix
November 03, 2009 – Charleston Cookie Company Issues Allergy Alert on Undeclared Butter in Almond Cookies Produced for Dean & Deluca
  • November 30, 2009 – La Espiga De Oro, Inc. Issues Allergy Alert on Undeclared Whey in Flour Tortillas
  • November 27, 2009 – Diamond Pet Foods Announces Recall of Premium Edge Adult Cat and Premium Edge Hairball Cat Food
  • November 25, 2009 – Vita Food Products, Inc. Issues an Alert Announcing Undeclared Wheat in ELF Branded Herring in Sour Cream
  • November 25, 2009 – Stryker Corporation’s Instruments Division Issues Worldwide Class 1 Recall of 23 Operating Room System II Surgical Navigation Systems; Catalog numbers 7700-100-000 and 7700-101-201
  • November 24, 2009 – Rikki USA, Inc.Re-Issues Allergy Alert on Undeclared Shrimp in Toi Sauce Thai Red Curry (Panang) produced for the Siamrica Co. to Correct Lot Number
  • November 22, 2009 – Timco Worldwide Inc. issuance of a voluntary recall of Large Seedless Watermelons because of possible health risk
  • November 20, 2009 – Five Crowns Marketing Voluntarily Recalling Cantaloupes Packed under the Majesty Label Because of a Potential Health Risk Due to Possible Contamination of Salmonella
  • November 20, 2009 – Unilever Issues Nationwide Allergy Alert on Undeclared Sulfites in Certain Shedd’s Country Crock® Chilled Side-Dish Products
  • November 19, 2009 – Service Smoked Fish Corp. Recalls Smoked Nova Salmon Because of Possible Health Risk
  • November 19, 2009 – Fresh & Easy Neighborhood Market Issues Allergy Alert on Undeclared Pecans in Mislabeled Fresh & Easy Pumpkin Cheesecake Pies
  • November 19, 2009 – P&G Voluntarily Recalls Specific Lots of Vicks Sinex Nasal Spray in the United States, Germany and the United Kingdom
  • November 18, 2009 – Nassau Candy Issues Nationwide Allergy Alert Because Of Possible Undeclared Allergens on their Tasty Dish Snack Tubs of Chocolate Almonds, Chocolate Raisins and Sour Neon Worms
  • November 17, 2009 – SNACKS ON RACKS, INC. Issues Nationwide Allergy Alert because of Undeclared Allergens in Their Gourmet Snacks Pack Product Line
  • November 17, 2009 – Cardiovascular Systems ViperSheath Sheath Introducer – Recall
  • November 17, 2009 – Superior Foods Co. Issues Allergy Alert On Undeclared Allergens in Fish Product
  • November 16, 2009 – Cardiovascular Systems Initiates Voluntary Recall of ViperSheathTM Sheath Introducer
  • November 13, 2009 – Cardiac Science Notifies AED Customers of Nationwide Voluntary Medical Device Correction
  • November 13, 2009 – Conagra Foods Issues Nationwide Allergy Alert on a Limited Number of 15 oz. Tubs of Blue Bonnet Light Spread
  • November 12, 2009 – Synthes USA, Ti Synex II Vertebral Body Replacement – Class I Recall
  • November 12, 2009 – IDS Sports Conducts a Voluntary Nationwide Recall of Bromodrol, Dual Action Grow Tabs, Grow Tabs, Mass Tabs, and Ripped Tabs TR
  • November 12, 2009 – GMP Herbal Products, Inc. Issues a Voluntary Nationwide Recall of a Weight Loss Supplement Found to Contain Undeclared Drug Ingredients
  • November 09, 2009 – Edwards Lifesciences CardioVations EndoClamp Aortic Catheter – Class 1 Recall
  • November 09, 2009 – RockHard Laboratories Issues a Voluntary Nationwide Recall of Specific Lots of RockHard Weekend marketed as Dietary Supplement
  • November 06, 2009 – Hospira Issues Nationwide Voluntary Recall of Certain Lots of Liposyn™ and Propofol Products That May Contain Particulate Matter
  • November 05, 2009 – FDA Health Alert for Certain Pet Treats Made by Pet Carousel
  • November 04, 2009 – Jelly Belly Issues Allergy Alert on Undeclared Peanuts in 7.5oz cylinder-style packages of 49 Flavors Jelly Belly jelly beans
  • November 04, 2009 – Centurion Medical Products – Premie Pack and Meconium Pack – Recall
  • November 04, 2009 – PetSmart Voluntarily Recalls Dentley’s Beef Hooves
  • November 03, 2009 – American Regent Expands Voluntary Recall to Include All Lots of Ketorolac Tromethamine Injection, USP 15 mg/mL; 1mL Single Dose Vial
  • November 03, 2009 – BODYBUILDING.COM Is Conducting a Voluntary Nationwide and International Recall of 65 Dietary Supplements That May Contain Steroids
  • November 03, 2009 – Pelican Bay Ltd. Issues Nationwide Allergy Alert on Undeclared Tree Nuts in Caramel Chocolate Truffle Hot Chocolate Mix
  • November 03, 2009 – Charleston Cookie Company Issues Allergy Alert on Undeclared Butter in Almond Cookies Produced for Dean & Deluca

Amazing.

So this brings us to the topic of food safety regulation in the U.S., or lack thereof. In July, a bill was passed by the House that gave the FDA the power to order food recalls and require facilities to have a food safety plan. The bill will make its way to the Senate sometime next year, but it remains questionable that, if passed, the new law will actually have an effect on the current ways in which food is prepared, handled and packaged for sale.

From sour cream to jelly beans to beef and diet drinks, food recalls are increasing at an alarming rate and slow-moving regulations are not giving the consumers confidence in what makes it’s way to the dinner table or lunch box.

Drug-resistant H1N1 Reported

It has been recently reported that two H1N1 patients in Maryland and one in Virginia have been hospitalized with a drug-resistant form of the virus. Cases have also popped up in Seattle and Duke University where patients were resistant to Tamiflu, one of the drugs used on the sickest patients.

The problem isn’t relegated to just the U.S. In Wales, health officials have reported that six people have recently tested positive for a Tamiflu-resistant strain of H1N1. But according to the World Health Organization, Tamiflu resistance in some H1N1 patients with badly weakened immune systems does not seem to reflect a major change in the virus’ susceptibility to the front-line drug.

WHO has been informed of two recent clusters of patients infected with oseltamivir-resistant H1N1 viruses. Both clusters, detected in Wales, UK and North Carolina, USA, occurred in a single ward in a hospital, and both involved patients whose immune systems were severely compromised or suppressed. Transmission of resistant virus from one patient to another is suspected in both outbreaks.

In our November issue, we ran an in-depth feature on how to prepare for H1N1’s next wave. Within the article, Regina Phelps, founder of Emergency Management & Safety Solutions, pinpointed the following lessons we have learned so far from the H1N1 pandemic.

  1. Having a plan is not enough
  2. Employees will look to their employers for assurance
  3. The characteristics of H1N1 make it especially worrisome for the business community
  4. Certain groups are at greater risk of complications from H1N1

To read the entire article, plus an informative piece about learning from past pandemics by Gisele Norris, managing director for Aon Healthcare’s western region, click here.

And to wrap it up, here’s a small chart showing important H1N1 figures:

[TABLE=4]

Hurricane Season Wrap-up

The 2009 hurricane season was far from eventful. In fact, the Insurance Information Institute has said that between June 1 and November 30, 2009 only nine named storms developed in the Atlantic basin, three of which became hurricanes — the lowest totals since 1997.

The 2009 season is a welcome respite from 2008, when hurricanes Gustav and Ike disrupted hundreds of thousands of lives in Louisiana and Texas, and caused $14.65 billion in insured losses,” said Dr. Robert Hartwig, an economist and president of the I.I.I. “Profits in an industry like insurance must be seen over the long term.

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A single hurricane, or a string of large losses, can wipe out insurer profits from previous years, or even decades. And insurers must be prepared to pay for these losses, irrespective of the current economic conditions.

Those nine named storms were:

  • Tropical Storm Ana (Aug. 15-16)
  • Hurricane Bill (Aug. 15-24)
  • Tropical Storm Claudette (Aug. 16-17)
  • Tropical Storm Danny (Aug. 26-29)
  • Tropical Storm Erika (Sept. 1-3)
  • Hurricane Fred (Sept. 8-12)
  • Tropical Storm Grace (Oct. 5-6)
  • Tropical Storm Henri (Oct. 6-7)
  • Hurricane Ida (Nov. 4-10)

Along with I.I.I., we here at The Monitor were tracking storms,in both Atlantic and Pacific waters, in our weekly Storm Summary installments. We ended up with the following chart:

[TABLE=3]

Though the official end of the hurricane season was Nov. 30, it remains a year-round concern to researchers, insurers and public policy makers.

According to I.I.I., eight of the 10 most costly hurricanes in U.

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S. history have occurred since 2004 and this is the first year since 2006 in which no hurricanes made landfall on U.S. soil. Looking forward, Colorado State University will issue its 2010 hurricane season forecast Wednesday, Dec. 9. We will resume our Storm Summary series June 1, though we will continue to blog about storm-related news, research and updates until then.

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Hurricane Bill (Aug. 15-24)
Tropical Storm Claudette (Aug. 16-17)
Tropical Storm Danny (Aug. 26-29)
Tropical Storm Erika (Sept. 1-3)
Hurricane Fred (Sept. 8-12)
Tropical Storm Grace (Oct. 5-6)
Tropical Storm Henri (Oct. 6-7)
Hurricane Ida (Nov. 4-10Tropical Storm Ana (Aug. 15-16)
Hurricane Bill (Aug. 15-24)
Tropical Storm Claudette (Aug. 16-17)
Tropical Storm Danny (Aug. 26-29)
Tropical Storm Erika (Sept. 1-3)
Hurricane Fred (Sept. 8-12)
Tropical Storm Grace (Oct. 5-6)
Tropical Storm Henri (Oct. 6-7)
Hurricane Ida (Nov. 4-10)