Everest Climbers to Foot 32% Insurance Increase

Mount Everest Shows Itself Courtesy of Jari on Flickr 

By Mark E. Ruquet

When that insurance bill comes in the mail and you begin to feel faint over the cost of the premium, you can take some satisfaction in knowing that there is someone out there paying a lot more than you. However, they can afford afford that trek through the Himalayas that will be costing them so much. If they begin to feel faint it will be for a different reason.

Reuters reports that hikers of the world’s tallest peaks, primarily Mount Everest, will have to fork over an additional 32 percent in insurance costs to cover their Sherpa guide’s insurance coverage beginning in September.

According to the report, foreign mountaineers will pay $19,000 for each guide’s insurance coverage, including medical insurance, up from $13,000. The government of Nepal says the increase is an effort to improve the compensation to the guides. The action comes after an avalanche claimed the lives of at least a dozen people on a climb of Mount Everest just this past April, one of the deadliest avalanche events, say experts.

Do check out the story, if for nothing else than to see the photo of one porter’s burden. After reading what a Sherpa earns, one has to wonder if they are not getting the short-end of the stick.

  

Driver Satisfaction With Auto Insurer on the Rise

By Mark E. Ruquet

I was cleaning my desk recently and came across this press release I thought would be of interest to many auto owners. It is a J.D. Power survey of customer’s satisfaction with their auto insurer from mid-June.

Are you happy with your carrier? J.D. Power’s annual Auto Insurance Study for 2014 says that despite continuing increases in rates policyholder’s overall satisfaction with their carrier is at its highest level in the survey’s 14-year history.

The consumer research firm said overall satisfaction increased by “a significant 16 points to 810” on a 1,000-point scale. The increase comes despite average increases of $86 in 2014, down from last year’s rise in premium of $153. The number of consumers experiencing an increase remained almost unchanged at 19 percent compared to 20 percent in 2013.

“A premium increase often triggers shopping behavior, but we’re seeing fewer people shopping,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power, in a statement. “This indicates that insurers are more effectively communicating with their customers, making them aware of the premium increases when they occur and why they’re necessary, and demonstrating the value of their coverage.”

The report underscores the importance of having an agent in the insurance company relationship, finding that overall satisfaction is highest with consumers that have an agent scoring 867. These customers, the report said, are the least likely to shop and switch carriers because of their strong relationship with their agent. 

Those consumers with little relationship with an insurer scored the lowest at 742.

Smaller companies also appear to be doing a better job. J.D. Power said satisfaction with small carriers—those outside of the top 30 companies, improved by 41 points, while the top carriers saw only a 10-point improvement.

So what carriers in the New York region got the highest satisfaction rating? GEICO and State Farm were the highest with an overall score of 822. Of the 11 carriers ranked, Progressive was last with a score of 773.

However, the highest satisfaction score goes to USAA with a score of 901 — which held true on a national level and other regions of the country. J.D. Power does not include the company in its rankings because the company is only open to U.S. military personnel and their families. Three insurers New Yorkers may be familiar with, Amica Mutual, Erie Insurance and Kemper did not make the survey because of small sample size, the research firm said.

Pet Insurance Is Not Health Insurance

You love your pet? Do you treat your pet like family. Like many pet owners, you are willing to spend a lot to care for your dog, cat, bird or whatever furry friend you have at home. At one point you probably have made a visit the veterinarian and it was not cheap.

Realizing an opportunity, some insurers have offered pet insurance to help pet owners defray the high cost of medical treatment for their pets. However, buyers beware. Pet insurance is not health insurance. In fact, the policies fall under property insurance and policyholders should not expect a visit to the vet to be covered in the same way that a visit to their doctor is covered.

In California, one legislator is trying to push a bill through the state legislature that will force insurers to be transparent about the breath of coverage and no longer leave consumers guessing about what precisely they are paying for.

Please read this piece from the Sacramento Bee.

On a personal note, I hope to get back to posting regularly on my blog after taking a mental vacation of sorts.

NOAA Says Odds In Favor of Below Normal Hurricane Season

2014 Atlantic Hurricane Outlook; Courtesy of NOAA 

By Mark E. Ruquet

The National Oceanic and Atmospheric Administration (NOAA) said that it expects a normal to below-normal Atlantic Basin hurricane season this year.

NOAA said on Thursday that there is a 50 percent chance of a below-normal season, a 40 percent chance of a near-normal season and only 10 percent chance of an above-normal season. 

The NOAA Climate Prediction Center forecast said there is a 70 percent likelihood of eight to 13 named storms (winds of 39 mph or higher), of which three to six could become hurricanes, a storm with sustained winds of 74 mph or higher. Of the three to six hurricanes, one to two could become major hurricanes, Category 3, 4 or 5 defined as storms with winds of 111 mph or higher.

The forecast is near or below the seasonal averages of 12 names storms, six hurricanes and three major hurricanes, based on the average number of hurricanes during the period 1981 to 2010, NOAA said. The Atlantic Basin hurricane season begins June 1, and covers the regions of the North Atlantic Ocean, Caribbean Sea and Gulf of Mexico.

Gerry Bell, lead seasonal hurricane forecaster with NOAA’s Climate Prediction Center, said the Atlantic, which has experienced above-normal seasons in 12 of the last 20 years—“has been in an era of high activity for hurricanes since 1995. However, this high activity pattern is expected to be offset in 2014 by the impacts of El Niño, and by cooler Atlantic Ocean temperatures than we’ve seen in recent years.”

Bell said the El Niño is creating conditions of strong trade winds and wind shear over the tropical Atlantic that should produce the “near-average” ocean temperatures suggesting fewer Atlantic hurricanes.

The forecast is in line with earlier forecasts released by Colorado State University and Weather Services International. Both call for a below normal Atlantic Hurricane season this year.

Despite the forecast Joe Mimmich, FEMA associate administrator for Response and Recovery, reminded people that, “It only takes one hurricane or tropical storm making landfall to have disastrous impacts on our communities.” He underscored the need to prepare for the worse and know understand the risks from a storm in your neighborhood.

Build it Back May Finally Work

Contact information for Build it Back

By Mark E. Ruquet

For anyone seeking information about the Build it Back program and their benefit eligibility, here is a presentation made by the current
director of the program to the Midland Beach Civic Association on May 14, 2014.

This is available by clicking here on YouTube.

Speaking later about the program in an e-mail to members, Debi Vadola, the Civic Association's Vice President, said that from comments people had after the presentation it "was the first time I ever heard anything positive said about BIB [Build it Back]." She went on to say that the new director, Amy Peterson, left people with the impression that something will finally be done to help residents finally put their lives back on track.

WSI Calls for Quiet Atlantic Hurricane Season

Hurricane Andrew, 1992. Courtesy of NOAA Photo Library

By Mark E. Ruquet

A weather forecasting company connected with the Weather Channel is calling for a quiet Atlantic Basin Hurricane season this year, the second notable service to do so.

Weather Services International (WSI), based in Andover, Mass., recently issued an update to an earlier forecast saying it expects 11 named storms of which five could become hurricanes. Of the five, two could become major hurricanes this season.

“These numbers are lower than both the 1950-2013 normals of 12 [named storms]/7 [hurricanes]/3 [major hurricanes] and the more recent active period (1995-2013) normals of 15 [named storms]/8 [hurricanes]/4 [major hurricanes],” said WSI in a statement.

“The latest data still suggests that a relatively quiet season is in store for the Atlantic basin,” said WSI Chief Meteorologist Todd Crawford. “Tropical Atlantic surface temperatures are the coolest they’ve been for this time of year since 1994, and we are increasingly confident that a significant El Nino event is on the way, which typically results in an environment that is not favorable for Atlantic tropical development.”

WSI said it will update its forecast on May 20.

In my blog posting on April 29, I shared the April forecast from the Colorado State University hurricane research team led by William Gray and Phil Klotzbach. Their early season forecast calls for nine named storms of which three could become hurricanes and one may reach major hurricane strength.

Major hurricanes on the Saffir-Simpson Hurricane Wind Scale are Category 3, 4 or 5. The Category 3 storm has sustained winds between 111 – 130 mph and devastating damage will occur. The winds of a Category 4 storm will reach 131 – 155 mph and cause catastrophic damage, such as Hurricane Charley in 2004. The most fearsome is the Category 5 with sustained winds in excess of 155 mph. Hurricane Andrew, which hit Florida in 1992, was a Category 5 storm.

The Atlantic Hurricane season begins June 1 and runs to November 30.

One observation forecasters continually make is that despite the fact that it appears this year may shape up to be a “quiet” hurricane season, it only takes one major one to make landfall and turn everyone’s life upside down.     

CSU Team Predicts Normal to Below-Normal Hurricane Season

CSU Hurricane Research Team William Gray (on the left)
& Phil Klotzbach. Photo from CSU Website. 

The Colorado State University hurricane research team released its April forecast predicting a normal to below-normal 2014 Atlantic Hurricane season.

The team, led by Phil Klotzbach and William Gray, said the 2014 Atlantic Hurricane season can produce nine named storms of which three are expected to become hurricanes and one could reach major hurricane strength with sustained winds of 111 miles per hour or greater.

Klotzbach said the 2014 season is exhibiting weather characteristics similar to 1957, 1963, 1965, 1997 and 2002 hurricane seasons, all of which had normal or below-normal activity.

“The tropical Atlantic has anomalously cooled over the past several months, and the chances of a moderate to strong El Nino event this summer and fall appear to be quite high,” said Klotzbach. “Historical data indicate fewer storms form in these conditions.”

The team said that 2014 tropical cyclone activity could be about 60 percent of the average season. The 2013 tropical cyclone season activity was about 40 percent of the average.

However, Klotzbach notes that it only takes one event to make it an active season for any region along the Atlantic coast. To further illustrate the point, in terms of insurance losses, of the top ten most expensive hurricanes listed by the Insurance Information Institute, Hurricane Betsy struck in September of 1965, which was a below normal season, causing $45 billion in insured losses and is ranked the sixth most expensive hurricane event in history.

The CSU team cautioned that the forecast is only an estimate of activity to be experienced during the upcoming season that runs from June 1 to November 30. The Eastern Pacific tropical cyclone season runs from May 15 to November 30.

Among the estimates, the team says there is a 20 percent chance of a major hurricane (rated Category 3, 4 or 5 on the Saffir/Simpson scale) making landfall on the U.S. East Coast this year. The average for the last century is 30 percent.

CSU will issue forecast updates on June 2 and July 31. The full report is available by clicking here for the press release, or go here to the university news website to connect to the April 10 press release.

The National Weather Service National Hurricane Center has not yet released its forecast, but typically does so in mid-May.