Presentation to the Geneva Association’s8th Chief Communications Officer’s Meeting

Jeanne M. Salvatore, Senior Vice President, Public Affairs &Insurance Information Institute 110 William Street New York, NY 10038

212.346.5555 jeannes@iii.org www.iii.org

Madrid, SpainOctober 5, 2010

Presentation Outline

Policymaker Education

I.I.I. Insurance Pulse Findings

I.I.I. Media Index

3

Policymakers website: InsuranceMatters

User Highlights

Tailored Focused Current Clear and Concise Factual Searchable Exportable Multimedia Content Accessible

Content is arranged so that material most important to policymakers is just one or

two clicks away

4

Insurance Handbook

The new I.I.I. Insurance Handbook launched in

2010 provides vital information for a wide variety of audiences:

•Public Policymakers

•Reporters

•Regulators

•Students

•Insurance Company Employees

•Academics

5

Consumer Perceptions of Insurers

Insurance Pulse Highlights

Favorability of auto and home insurers rebounded.

Auto insurers were highest rated of all industries surveyed.

Favorability of banking recovered.

Ratings of financial services ranked lowest.

Healthcare debate did not change public’s opinion of auto and home insurers [no apparent spillover]

Source: Insurance Information Institute.

Pulse Is an Annual Telephone Survey the I.I.I. Has CommissionedSince 1968.

2010 Survey of 1,006 Adults Conducted May 13-16, 2010

6

Consumer Poll: I.I.I. Pulse Survey

38% 37%

26%22%

53%

58%54%

50%

41%

55%

37%34%

28%30%

52% 54%56%

52%

47% 46%

0%

10%

20%

30%

40%

50%

60%

Auto/Homeinsurance

Autoinsurance

Homeinsurance

Lifeinsurance

Healthinsurance

Banking Drugcompanies

Mutualfunds

Financialservices

companies

Oil and gascompanies

2009 2010

Percent of Public Rating Industry as Very or Mostly Favorable, 2009-2010

Favorability of Auto and Home Insurers Held Steady between May 2009 and May 2010.

Source: Insurance Information Institute Annual Pulse Survey.

Auto insurers ranking highest of industries surveyed

Financial services ranked lowest of industries surveyed

Consumer Poll: I.I.I. Pulse Survey

Source: Insurance Information Institute Annual Pulse Survey.7

Percent of Public Rating Industry as Very or Mostly Favorable,1968-2010

0%

10%

20%

30%

40%

50%

60%

70%

1968 1972 1978 1981 1983 1985 1986 1988 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Auto and home insurance

Industry Standing With the Public Is Not Static

But Changes Over Time

10

Consumer Poll: I.I.I. Pulse Survey

Q. Has the debate over health insurance reform changed your opinion about auto and home insurance companies?

Source: Insurance Information Institute Annual Pulse Survey.

A Majority of Americans Have Not Changed Their Opinions of the Auto and Home Insurance Industry as a Result of the Debate Over Health Insurance

Reform

2%

85%

13%

Don’t know

No

Yes

11

Consumer Poll: I.I.I. Pulse Survey

Q. Is your opinion of auto and home insurance companies now…

Source: Insurance Information Institute Annual Pulse Survey.

Of the 13% of Respondents Who Said the Debate Had Changed Their Opinion About the Auto and Home Insurance Industry, Three-Quarters Said

They Were Now Less Favorable

10%

74%

16%

Don’t know

Less favorable

More favorable

12

Consumer Poll: I.I.I. Pulse Survey

39%

33%30% 29%

33%

16%

32% 32% 32%35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Total U.S. Louisianaand

Mississippi

Louisiana

Mississippi

Louisianaand

Mississippi

Louisiana

Mississippi

Louisianaand

Mississippi

Louisiana

Mississippi

Source: Insurance Information Institute Annual Pulse Survey.

All respondents Filed a Katrina claim Did not file a Katrina claim

32 % of People in Louisiana and Mississippi Think Their Homeowners Policy Covers Damage from Hurricane-Related Flooding—Double the National Average.

13

Consumer Poll: I.I.I. Pulse Survey

Q. Should people who live in the states with the highest unemployment rates be charged lower premiums for auto and home insurance?

Source: Insurance Information Institute Annual Pulse Survey.

About 40% of Americans Think That People Who Live in States Most Affected by the Recession Should Pay Less for Auto and Home Insurance

2%

41%

57%

Don’t know

Yes

No

Suggests many People believe that risk should be secondary to ability to pay. This suggests

implicit support for economic

subsidies, though it’s unclear if people would support them

explicitly

14

Consumer Poll: I.I.I. Pulse Survey

91%

52%

22%

7%

0%10%20%30%40%50%60%70%80%90%

100%

People who have poor drivinghistories such as many speeding

tickets and/or accidents

People who live in places that areprone to disasters such as

hurricanes or earthquakes

People who have pre-existingmedical conditions

None of these

Respondents answering "yes"

Q. Should insurance companies be allowed to charge higher insurance premiums for…

Source: Insurance Information Institute Annual Pulse Survey.

Many People Believe the Cost of Insurance Should Reflect the Risks

Over Which an Individual Has Some Control

15

Consumer Poll: I.I.I. Pulse Survey

Q. What do you think the effect of MORE lawsuits being filed has on the cost of insurance for autos, homes and businesses? Do you think they…

Source: Insurance Information Institute Annual Pulse Survey.

Eight Out of 10 Americans Realize That Lawsuits Negatively Affect Insurance Prices

1%9%

84%

5%

Don’t know

Result in higher insurance costs

Result in lower insurance costs

Have no effect

16

I.I.I. Media Index, P/C, First Six Months 2009 vs First Six Months 2010Percent increase/decrease from previous year

43%

17% 35

%

-16%

15%

49%

31%

18% 23%

55%

3%

-38% -2

7% -15%

20%

15%

10%31

%

-100%

-50%

0%

50%

100%

150%

17

I.I.I. Media Index, L/H, First Six Months 2009 vs First Six Months 2010

0

5,000

10,000

15,000

20,000

25,0002009

2010

www.iii.org

Insurance Information Institute Online: