Today’s News: State Farm Drops Flood Insurance Nationwide, AMA Slams Senators in Ads and Mobile Devices to Impact Life Insurance
Major insurer, State Farm, has just dropped over a quarter of a million flood insurance policies, the American Medical Association takes a few jabs at senators who went on their Memorial Day breaks rather than finishing up work on an important Medicare task and mobile devices were noted among other major technologies to have a major impact on life insurance in the coming years.
State Farm Leaves Flood Insurance Program, Drops Customers Nationwide
State Farm Mutual announced its confirmation recently that it would stop administering federal flood insurance policies nationwide starting this fall. State Farm doesn’t insure property against floods or storm surge; however, it was the nation’s largest administrator of National Flood Insurance Program policies, writing federal flood policies in exchange for administrative fees and commissions. The company, which insured over 800,000 customers around the country, wants to focus more on the coverage its known for, leaving the government with the task finding a new flood insurance home the customers. (Sarasota Herald Tribune)
American Medical Association Creates Ad Campaign against Lawmakers
After the Senate chose to take its holiday break over completing some pressing bills, the American Medical Association (AMA) decided to launch an ad campaign to push the lawmakers back into action. The AMA’s main concern is implementing a freeze that would stop a 21 percent cut to the fees doctors receive in order to treat Medicare patients. The House voted to delay the cuts for 19 months on May 28; however, Senate did not make a decision before leaving for Memorial Day recess. The AMA’s TV, radio and print ads address this alleged neglect and the effects it’s having on doctors and patients as a result. (CNN Money)
Mobile Devices among Technologies to Impact Life Insurance
New information from Gartner, Inc., an information technology research and advisory company, has revealed that the life insurance industry should see some major adjustments over the next five years, largely due to new technologies like mobile devices and social networking technology. The company found that mobile devices in particular have had a profound influence on life insurance because they allow insurers to communicate directly with consumers and offer them real-time alerts and more. Gartner predicted that mobile devices will soon become a key imperative in the life insurance industry. (Stock Markets Review)