Flood Insurance Reformers to Hold Second Hearing

The House subcommittee preparing a flood insurance reform measure will have its second hearing on April 1 to hear testimony from Federal Emergency Management Agency (FEMA) Administrator Craig Fugate. Fugate was unable to be at the first hearing on March 11 as he was directing the government’s response to the earthquake and tsunami in Japan. The Insurance, Housing and Community Opportunity Subcommittee, chaired by Rep. Judy Biggert, is considering a measure to reauthorize and reform the National Flood Insurance Program (NFIP), which is administered by FEMA. Biggert’s initial draft of a bill received a generally positive bipartisan and business response, although some lawmakers voiced concern that it did not go far enough to address the $18 billion debt the program faces and others balked at adding additional living expenses and business interruption coverage options to the program. Others urged Biggert to move more towards privatization of the program. “NFIP is underwater by nearly $18 billion. A fiscal disaster can’t respond to a natural one. We need to put the program back on track so that it can provide reliable protection for the homes and businesses that need it — without putting taxpayers at undue risk,” Biggert said. She said FEMA’s testimony is “critical to ensuring that the program can meet the next challenge.” The hearing will take place on Friday, April 1 at 10:30 a.m.

Inflation and Insurance

Is the return of “cash flow underwriting” a possibility?
Inflation—or the prospect of inflation in the U.S. in the near future—dominates the news today. To gain some perspective on inflation and any impact on the fortunes of property-casualty insurers, this week IN&V will look at insurer investment income and profits and compare that with historical changes in consumer prices (inflation). While the historical data are interesting and provide some insights, making predictions is very difficult—especially about the future.
China’s inflation rate was reported on Feb. 15, 2011, as nearing 5%, up significantly from a year earlier with food prices rising annually there at near 10%. Much of the Mideast turmoil is being attributed to unrest from high inflation in food prices. Then, to bring matters home to the U.S., many feel the Federal Reserve’s approach of quantitative easing will drive inflation via devaluation of the dollar, and there are concerns over oil and food prices here as well.
To gain perspective on a potential increase in inflation and the possible impact on insurance, consider data beginning from 1969 from A.M. Best Aggregates and Averages for insurance and the Bureau of Labor Statistics for inflation. This time period is of interest as it includes the 1970s and early 1980s when the U.S. saw two dramatic spikes in consumer prices. Using insurer profits and investment income as a percentage of industry premiums, the graph below shows inflation as measured by the change in consumer prices for urban areas.Source: A.M. Best Aggregates & Averages and the Bureau of Labor Statistics (CPI: All urban consumers).
As you can see, there is no obvious correlation between insurer investments or profits and inflation. There are two spikes in inflation in 1974 and 1980, and after that the p-c industry benefited from a general increase in investment income. Beyond that though, any conclusions seem at best speculative. If anything, what seems most obvious is insurance profits are quite volatile in spite of more stable inflation rates and investment income.
Some industry concerns surround possible increases in inflation, focused on the hyper-inflation of the 1970s and early 1980s and the prospect of a return of “cash flow underwriting.” Readers who were in the business at the time may recall that following a period of underwriters pursuing soft insurance premiums at seemingly any risk for dollars to invest at high interest rates, the industry saw investment income fall and loss costs rise, ending in the epic hard insurance market of the mid-1980s (see the infamous “Time” magazine cover story, “Sorry America, Your Insurance Has Been Cancelled,” from 1986).” No one seems to have a strong opinion whether this could or would

Target Markets

Competitive markets for some commercial policies in the past few weeks include:
Beauty Shop, Church, Clothing Store, Apartments, Hotel, Office Building, Tire Stores. Keep MATH Insurance in mind for all of your Insurance needs.

Health Care Bill

Independent Insurance Agents are disappointed with the Health Care Reform bill that was passed by the U.S. House of Representatives. The bill includes 'public option' and adds billions of dollars in tax burdens to small business.

Different Types of Agents

Captive Agents, who can sell you the insurance of only one company.
Telephone Representatives or Direct Writers, who can offer you the insurance of one company, and can only do so over the telephone.
Independent Insurance Agents, who represent an average of eight insurance companies, and research with these firms to find you the best combination of price, coverage and service.

MATH Insurance will continue to be your Independent Agent representing over 20 different companies.

Elected Officials Reception

MATH Insurance will be networking with our elected officials Thursday night 5:30-7:00 at the Asheville Chamber. Elected officials from Buncombe, Henderson, Haywood, Madison, and Transylvania counties, as well as municipalities in our region will be in attendance. This is an excellent opportunity to network and express our concerns. This event is free to Chamber members and $15 for non-members.

Existing Home Sales

Sales of existing homes increased 3.6 percent in June, reaching an annual pace of 4.89 million units. This is the strongest pace of sales since last October and is a breakout from a tight range that has held for months.

Legislative Issues

One of NCHBA's top Legislative Priorities, H.B. 852 Defer Tax on Builders' Inventory, was enacted on Friday July 17th. This will allow home builders with unsold inventory to defer the portion of tax assessed for the improvements (construction of a home). All of the deferred tax, plus interest, must be paid when home is sold or occupied. This act is effective for taxes imposed for taxable years beginning on or after July 1st, 2010.

Unique Insurance that accommodates your specific needs

Let MATH Insurance be the one who concentrates on protecting your interests. We have a great appreciation for the distinctions between contractors and their individual needs. Just a few available coverage solutions for contractors:
Installations-damage at a customer's location
Injury at your jobsite
Lost business income
Stolen building materials from jobsite
Contractor's equipment and tools

Give us a call for protection that is tailored to your business and financial plan.

Restaurants

MATH Insurance has some of the best restaurant markets available. From chain restaurants to upscale dining we have some of the most competetive and broad covered policies in the Insurance industry.

New Business

Insurance is not always easy to find for hard to place risks. MATH Insurance has a market for almost everything. In the past few weeks we have placed Electrical Contractors, Hardware Stores, Convenience Stores, Masonry Contractors, Arbor Risks just to name a few. We strive to be the one stop shop for all of your Insurance needs.

Insurance Agents

MATH Insurance has added producers to their staff to better serve clients. This will help our business and personal clients that need the agents to come to them. Insurance in Asheville is all about service and the ease of doing business. Our trained professionals come to you in order to help save time and money.

Insurance policies

Asheville Insurance by MATH Insurance has a market for all of you Insurance needs. Just this week we have placed coverage on Restaurants, Hotels, Car Wash, Manufacturing, Personal Homes and cars. We have a market for almost everything with very competitive prices through all A Rated companies.

All Lines of Insurance

Asheville Insurance by MATH Insurance Service offers all lines of Insurance. Car Insurance, House Insurance, Life & Health Insurance, Business Insurance. We even have a market for Insurance on your car while driving in Mexico. Your current auto policy has no coverage while driving in Mexico but we can offer you a separate policy that will.

Developer Certification

MATH Insurance is involved in teaching the Insurance & Liability Issues in the new Developer Certification Class developed my MCAD (Mountain Council for Accountable Development) http://www.mountaindevelopment.org/ . We talk about the many Insurance related issues that can arise from home building.

Insurance Companies

Asheville Insurance by MATH Insurance has been here since 1971. As many agencies get acquired by larger companies MATH Insurance remains a family owned agency. This has allowed us to give superior service to the community and the assurance customers desire.

New Membership

Asheville Insurance by MATH Insurance is a new member of the Independent Insurance Agents for NC. This will add to the resources we can offer the public and our clients. We will be giving updated information on Insurance changes in our state as well as Legislative concerns.

Meet Some of the Team - Math Insurance in Asheville

Asheville Insurance By Math

Greg Spicer - President
Greg has been a licensed agent since 1995 working in Personal & Commercial Lines. He is native to NC and has lived in Asheville for over twenty years. He is also currently serving on the Board of Directors for the Asheville Home Builders Association.
Contact Greg gspicer@mathinsurance.com

Jim Spicer - VP
Jim is a native of Wilkes County North Carolina. He has been licensed Property Casualty and Life & Health for 40 years. Jim move to Asheville in 1981 and purchased MATH Insurance in 1992. Jim enjoys visiting our clients at their place of business or job site and to assist with Risk Management and OSHA related issues.
Contact Jim jspicer@mathinsurance.com

Alecia Bartlett - Personal Lines Manager
Alecia has been a licensed agent since 1996. She has been with MATH Insurance for five years servicing existing and new clients. Alecia oversees all personal lines accounts including auto, home, motorcycle, boat, mobile home, and personal umbrella policies. Alecia resides in Black Mountain and currently serves on the local board of directors for the National Association of Insurance Women.
Contact Alecia alofts.mathi03@insuremail.net

Dennis Goodwin - Director of Sales
Dennis is a native of Kentucky. Dennis started his Insurance career in 1988 specializing in all lines of insurance. Dennis has a Masters Degree in music and is also a retired LTC from the Army. He resides in Leicester and has been with MATH Insurance since 2005.
Contact Dennis dgoodwin@mathinsurance.com

Karen Davis - Commercial Lines CSR
Karen has been a licensed agent for over 23 years. She has lived in the area all of her life and very involved in the Leicester community. Karen specializes in Commercial account quoting, processing and customer service.
Contact Karen kdavis@mathinsurance.com

Math Insurance of Asheville North Carolina

Insurance companies in Asheville North Carolina come in many shapes and sizes. Some are great at Asheville Auto Insurance, but lacking in the proper service as far as other areas such as working with business insurance, etc.

Math Insurance of Asheville North Carolina has been one of the best companies I have found in the many US States I have lived in. I guess when I think about it, it is the knowledge, service, and smile that makes them the best for me.

Greg is the main contact over at their Asheville Insurance Agency on Merrimon Avenue (North End, About 3 Minutes from Downtown). From there, they have a team where each person specializes and focuses on different areas of insurance to make sure you get exactly what you need for you and/or your business.

You can view their Asheville Insurance Website by clicking HERE.