Participating in National Insurer Climate Risk Disclosure Survey

Insurance Commissioner Trinidad Navarro has announced Delaware’s participation in the National Association of Insurance Commissioners’ Insurer Climate Risk Disclosure Survey, an effort to assess how the impacts of climate change will reverberate across the insurance industry. From investment practices, to increased claim occurrences impacting companies’ financial sturdiness, to insurance product accessibility for consumers, the changing environment means that insurance must be a changing industry.

Insurance departments throughout the United States are working to evaluate both risks to the industry, and its resiliency in responding to those challenges to ensure continued market stability through several mechanisms, including National Association of Insurance Commissioners’ (NAIC) Climate and Resiliency Task Force and the eight-section survey.

“In Delaware and across the country, residents are feeling the impacts of climate change, and relying on insurers to respond to the heightened risk of damage to our properties, businesses, homes, and lives. As natural disasters occur more frequently and with more intensity, the industry must be prepared to provide rapid response,” said Insurance Commissioner Trinidad Navarro. “The issues of affordability and access seen as a result of wildfires in the west and hurricanes in the south have served as ominous forewarnings of what may be to come in our own region, and through participating in the Climate Risk Disclosure Survey we can better understand how prepared Delaware insurers are for these events and what opportunities we have to protect residents from these effects.”

Eighty-two Delaware insurers that reported $100 million or more in 2020 premiums have been asked to respond to questions about their investment and risk management policies, processes to identify, assess, and reduce climate-related risks, actions taken to encourage policyholder mitigation efforts and engage key constituencies in climate-based discussions, as well as information about the company’s existing analysis of risk and their organization’s climate-related goals, such as reducing emissions.

Surveys are due August 31, 2021. In total, over 1,200 insurers will complete the Survey, representing more than 70% of the U.S. insurance market. The California Department of Insurance, who asked Delaware to participate in this year’s Survey, will compile the data of all participating states and issue a public report.

Responding insurers with survey-related questions can contact Special Deputy Frank Pyle.

View the Insurer Climate Risk Disclosure Survey

View Survey Results for Prior Years

Commissioner Navarro encourages caution in repairs, meets with community

Tropical Storm Isaias produced tornado activity, heavy rain and flooding, hail, and strong winds throughout the state, causing significant destruction in several Delaware communities. Insurance Commissioner Trinidad Navarro visited residents and assessed damage on Wednesday.

“While measuring the full extent of this storm will take time, we know one thing – we must come together as a community and support those that need to rebuild,” said Commissioner Navarro after touring Amberwood community in Bear, which saw extensive storm impacts, and speaking with those beginning the insurance claims process. “I understand the eagerness of every resident to clean up and make repairs, but I can’t emphasize enough the importance of contacting your insurance company first. Take photos of everything and do not make permanent repairs before working with your insurance adjuster. Make only necessary, temporary repairs to prevent additional damage. Save all documentation, pictures, and receipts.”

The Delaware Department of Insurance Consumer Services Division is working with residents who have questions or concerns about their insurance company’s actions, and can be reached at (800) 282-8611 or (302) 674-6227, or by email at consumer@delaware.gov.

Underscoring the importance of proceeding through the insurance claim and property repair process with caution, Commissioner Navarro highlighted the frequency of fraudulent activity after a storm: “Anytime we experience a big storm like Isaias, we see storm-chasing scammers pop up in neighborhoods, falsely stating they are with an insurance company, or encouraging homeowners to sign on to repair contracts without going through the proper channels – often price gouging residents, or completing shoddy repairs if they make any at all, leaving the consumer on the hook for costs that could have been covered by an insurer.”

Residents who encounter a storm-related insurance scam can contact the Fraud Prevention Bureau at (800) 632-5154 or (302) 674-7350, or email fraud@delaware.gov. Consumers are urged to carefully review contracts for home repairs, ask for references and research companies through the Better Business Bureau.

Consumers may contact the Delaware Emergency Management Agency, DEMA, to see what assistance may be available as a result of the Governor’s State of Emergency. Property insurance policyholders should be aware of the dwelling deductible stated on their insurance declaration page, and take note that there may be a deductible for named storms, wind, hail, or tornadoes that may apply to the claim, most often stated as a percentage of dwelling coverage.

Due to COVID-19 precautions, Department of Insurance offices are not currently open to the public, but residents are encouraged to contact the department at one of the emails or phone numbers above, or call (302) 674-7300 for assistance.

Provides information on insurance processes for property damage

As Tropical Storm Isaias approaches Delaware, residents are urged to prepare for dangerous winds over 55 miles per hour and up to 6 inches of rain. Storm surges, localized flooding, tree damage, power outages, and other threats to life and property are possible, according to the National Weather Service (NWS). Rain is expected Monday evening, with the brunt of the storm arriving early on Tuesday.

“As models continue to show Delaware in the path of this storm, home and business owners should take steps to reduce property damage and stay safe,” said Insurance Commissioner Trinidad Navarro. “Secure any outdoor items or furniture that could cause damage when windy conditions occur, charge your cellphones, gather emergency supplies, and make a plan about where you can take shelter away from windows at the peak of the storm. Keep in mind that roads may become difficult to navigate due to debris and tree damage, and never drive through a flooded area.”

Isaias is expected to hit Delaware Tuesday morning. Potential storm impacts include damage to porches, carports and other awnings, as well as roofing and siding, with impacts on mobile homes more significant. NWS expects uprooted or snapped trees in addition to flooding, causing impassable roadways and power outages in some places. Storm surges are likely, and tornadoes are possible.

In advance of storms, residents are urged to locate important documents, including homeowners and auto insurance policies and company contact information, as well as a complete a home inventory. If your property is damaged by Tropical Storm Isaias, contact your insurer before you clean up or make repairs, and photograph all damage. After speaking with your insurer and photographing damage, take action to prevent further damage by covering broken windows, damaged walls, or leaking roofs, but do not make permanent repairs. Your insurance company should inspect the property and estimate the cost of permanent repairs. Save all receipts and documentation, including those related to temporary repairs.

Hurricane season lasts well into the fall, and residents should make plans and take precautions now to reduce future risks, including exploring flood insurance. More than 20 percent of flood insurance claims are for properties outside of high-risk areas. Flood insurance policies typically take 30 days to go into effect. For more information about FEMA’s flood insurance program and to find an agent in your area, visit FloodSmart.gov or call 1-800-427-4661.

For more information on how to prepare your home for inclement weather, visit the Department of Insurance Disaster Preparedness page.

DOVER, DE – A request by Windsor-Mount Joy Mutual Insurance Company (“WNMJ”) to increase insurance rates on over 2,000 manufactured housing policyholders by 20%-30% has been denied by Insurance Commissioner Trinidad Navarro. Many of these homeowners have already received premium increase notices from WNMJ effective March 15, 2017. Because of the Insurance Commissioner’s denial, those increases will not go into effect. For reasons set forth in his order, Commissioner Navarro has deemed the request excessive and unreasonable.

WNMJ’s requested increase would unfairly impact manufactured homeowners in one geographic region-Eastern Sussex County. After reviewing the request, Commissioner Navarro found the request to be unreasonable. The Department of Insurance subsequently hired an independent actuary to determine the fairness of the requested rate increase. After reviewing 1 0 years of claims files for the company, the Department contracted actuary concluded that this area, receiving the largest proposed increase, is also the area that has had the fewest claims. The company’s cost for reinsurance and brokerage fees were also indicated as being higher than the industry average.

In response, Commissioner Navarro issued the following statement:

“As Insurance Commissioner, it is my duty to look out for and protect consumers. After our analysis, we believe it is unfair for a company to pass on its negotiable reinsurance costs and negotiable brokerage fees to its policyholders by increasing their rates.

At this point, there are several routes we can take. WNMJ can either negotiate a better rate for consumers, or file for a public hearing on this matter. That decision will be forthcoming.

When I ran for this position, I promised to thoroughly review and deny any requests for rate increases that I deem to be excessive. I have already negotiated lower rate increases in other cases, however, this is the first that I have had to outright deny. In the future, I will not hesitate to apply strict standards and scrutiny to any rate filing. I will also continue to deny any request for rate increase that I find excessive.”

View PDF (see page 2 of 2): windsor-mt-joy-rate-denial

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Contact: Vince Ryan

Office: 302-674-7303

Mobile: 302-387-7670

vince.ryan@delaware.gov

Businesses Also Saved $12.1 Million in Workers Comp Premiums 

DOVER, DE – Insurance Commissioner Karen Weldin Stewart and the Delaware Department of Insurance announced today that its Consumer Services Division recovered $2,959,783.45 for consumers during the first nine months of 2016. Delaware employers also saved $12,126,418.00 in workers compensation premiums during the same period through the Department’s Workplace Safety Program.

The Consumer Services Division received 3,482 formal insurance coverage complaints and inquiries regarding automobile, homeowners, life and health policies between January 1 and September 30, and directly recovered $2,361,693.88 from insurers for Delaware policyholders. The Division also conducted arbitration hearings on behalf of policyholders, which netted consumers $598,089.57 in awards during the same period.

“I want to thank the staff for their vigorous advocacy on behalf of consumers,” said Commissioner Stewart. “Every day they help consumers clear up problems with health insurance companies, agents and providers. And I’m glad the Workplace Safety Program continues to benefit employers and employees.”

The Workplace Safety Program incentivizes employers to establish and maintain safe workplaces. The program provides businesses with the opportunity to earn discounts of up to 19 percent on their workers’ compensation insurance premiums by meeting certain safety requirements and agreeing to undergo periodic inspections. The $12,126,418.00 savings figure, from the Delaware Compensation Ratings Bureau, is approximate because businesses may pay their workers compensation insurance premium annually, quarterly, or by some other schedule.

For help with general insurance matters, call the Department at (302) 674-7300. Call (800) 282-8611 for Consumer Services. For more information on the Workplace Safety Program call (302) 674-7377.Go to our website at www.delawareinsurance.gov, and visit our Facebook page,  www.facebook.com/DelawareInsurance. Follow us on Twitter @Delaware_DOI.

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