INSURANCE INFORMATION INSTITUTE
Contact: Press Offices
New York: 212-346-5500; media@iii.org
Washington, D.C.: 202-833-1580


NEW YORK, October 2, 2007 — Reporters with insurance questions regarding the hearings on the National Flood Insurance Program and on the Federal Trade Commission report on credit-based insurance scores can contact the Insurance Information Institute (I.I.I.).

Dr. Robert Hartwig, president of the I.I.I. and an economist, is available for interviews and can provide information and analysis on the economics of insuring properties against hurricanes, floods as well as credit-based insurance scores. Dr. Hartwig has spoken widely and testified on both issues.

To arrange an opportunity to speak with Dr. Hartwig, contact the I.I.I.’s Washington Media Office at
202-253-7400 or the New York office at 212-346 5500.

Flood Insurance Hearing: Senate Banking Committee
Insurers support reform of the flood insurance program. This includes updating and modernization of flood maps, higher coverage limits for homeowners and businesses, and an increase in coverage for additional living expenses. In addition, the standard flood insurance policy should be re-written to make it more consistent with standard homeowners and property policies. FEMA procedures also need to change to ensure that disaster payments go to flood insurance policyholders before non-policyholders. In some cases, those without flood insurance are provided funds from the federal government ahead of those who purchased the coverage, sending the wrong message to citizens about the need to purchase this important protection.

Dr. Robert Hartwig testified July 17, 2007 before the House Financial Services on the future of the National Flood Insurance Program. To view that testimony visit: http://www.iii.org/media/met/hr920/ .

Additional information on catastrophes and flood insurance can be found at: http://www.iii.org/media/hottopics/insurance/catastrophes/ .

Credit-Based Insurance Scores and the FTC Report: House Financial Services Committee
Credit-based insurance scores are highly accurate predictors of risk in insurance. Credit-based insurance scores are also completely blind to all socio-economic factors such as race, ethnicity, income, age, gender and marital status. Both high and low scores exist in every socio-economic group. Many studies have demonstrated the existence of a statistically irrefutable link between an individual’s credit history and losses incurred under the terms of an insurance policy. In August of 2007, both the Federal Trade Commission and the Federal Reserve Bank issued studies demonstrating that the correlations between score and relative loss hold irrespective to race, ethnicity or economic status.

To view the August, 2007 Federal Reserve study on credit, visit: http://www.federalreserve.gov/boarddocs/RptCongress/creditscore/creditscore.pdf .

To view the August, 2007 Federal Trade Commission study on credit, visit:
http://www.ftc.gov/os/2007/07/P044804FACTA_Report_Credit-Based_Insurance_Scores.pdf .

The I.I.I. has additional information about credit-based insurance scores at:
http://www.iii.org/media/hottopics/insurance/creditscoring/ .

For additional information about insurance, go to the I.I.I. Web site: http://www.iii.org .


The I.I.I. is a nonprofit, communications organization supported by the insurance industry.