BofA CEO Says Deposit Insurance ‘Worked Pretty Well’

The deposit insurance system “works pretty well,” said Bank of America CEO Brian Moynihan.

Speaking Thursday (April 20) at a Bloomberg event, Moynihan said deposit insurance funded by banks succeeded in protecting customers during the “fair amount of disruption” recently seen among regional banks, Bloomberg reported Thursday.

“The industry pays for the deposit premiums. We insure ourselves,” Moynihan said, according to the report. “The government is the go-between to make sure people believe it’s there. And they get the money back from us.”

Any changes to the current deposit insurance process “ought to be carefully dealt with only because it’s been in place since the ’30s and it’s worked pretty well,” Moynihan said.

At the end of a quarter in which the collapses of three banks led investors to closely watch the deposit flows at other smaller banks, several regional banks reported their deposits were stable.

Regional banks were disproportionately affected by the collapse of Silicon Valley Bank that touched off a deposit flight to the presumed safety of financial giants thought to be “too big to fail.”

As PYMNTS reported in March, the recent turmoil around Silicon Valley Bank and Signature Bank touched off a larger debate over how to stop contagion in the banking sector, who’s protected and who’s not.

The current $250,000 cap on deposit insurance is not set in stone — regulators can make what is known as a “systemic risk exception” where the Federal Deposit Insurance Corp. (FDIC) lifts the ceiling — but the cap is still in place and at least some deposits are not safe.

So, the debate rages on about how to protect bank customers — and how much protection they need.

Meanwhile, chief financial officers (CFOs) are pursuing cash diversification strategies to ensure stability and reassure their boards.

Karbon CFO Frank Colich told PYMNTS in early April, “Clearly, a microscope is now turned on treasury management. It creates a little bit more effort on our end to make sure we’re diversifying our risk as much as possible on how we’re managing our cash.”

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Auto Insurance Shopping Rises as Consumers Seek Better Rate

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Auto insurers have been forthcoming in their desire to achieve rates to match increases in claims costs and, so far in 2023, consumers are not standing by.

According to a quarterly report from JD Power, in collaboration with TransUnion, the quote rate for auto insurance in the first quarter of 2023 was 12.4% and the switch rate was 3.9%. The quote rate is a new high in the three-year history of JD Power’s quarterly loyalty indicator and shopping trends (LIST) report.

“A new record in our data series was seen in March as 13.1% of consumers reported shopping for auto insurance in the 30 days prior to responding to our survey,” said JD Power.

TransUnion data showed Gen X and Gen Z led the way in price shopping, and Western US was the most active for auto insurance shoppers.

JD Power noted that Progressive surpassed GEICO in 2022 to now hold the largest market share among personal auto insurers, and this latest quarterly report was the first to find that GEICO did not capture the largest share of any large competitor’s defectors.

“GEICO is struggling to maintain its share of customers in response to closing down sales channels in states where they were rate-inadequate,” said JD Power. “Progressive has benefited and is seeing increases in the number of customers who select the brand as their auto insurance carrier when they make a switch.”

Related: Rising Auto Rates Affecting ‘Bundle’ Strategy: JD Power

Among the top insurers, consumer loyalty was strongest for Erie, Amica, USAA, New Jersey Manufacturers (NJM), and MAPFRE. It was lowest for COUNTRY, National General, GEICO, Progressive, and Kemper, according to the report.

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Car insurance rates are on the rise nationwide and in Ohio

Car insurance rates are on the rise across the nation and in Ohio.
  • Crashes and auto claims have increased as Americans return to work and their daily commutes.
  • Factors that can hike your rates include a poor driving record, age, gender, where you live and what car you drive.

If you noticed a recent spike in your car insurance bill, you’re not alone.

Car insurance rates are expected to increase by 8.4% across the United States and 12.3% in Ohio this year, according to ValuePenguin, a subsidiary of the Lending Tree, which researches insurance and other consumer trends. The nationwide increase is the biggest jump in the past six years.

Still, the average cost for full coverage car insurance in Ohio (about $1,296 per year) remains 27% lower than the national average (about $1,780 per year). That makes Ohio one of the least expensive states for car insurance, according to the analysis.

more:Ohio’s car insurance rates are going up. Here’s why | Betty Lin-Fisher

In comparison, Kentucky’s annual cost is $2,040 or 14% above the national average. And Michigan’s average of $4,788 a year is the highest in the United States.

Another analysis by found Ohio had the lowest car insurance rates in the nation. The average premium was $1,023, or 40% less than the national average of $1,682, according to

The most recent data from the Ohio Department of Insurance is from 2021 when rates increased by 2.7% for the state’s 10 largest insurance providers.

Here are some reasons why rates are rising:

  • Crashes and auto claims have increased as Americans return to work and their daily commutes.
  • Repairs cost more and take longer because of supply shortages and inflation.
  • Bad driving habits, including texting while driving and distracted driving, lead to more claims.
Ohio recently passed new rules to crack down on distracted driving.

Beyond the macro trends, other factors can raise your rates, including a poor driving record, age, gender, where you live and what car you drive.

The Ohio Department of Insurance approved increases for some of the most-used car insurance companies in the past year. They include:

  • GEICO Secure Insurance Company increased its rates by 34.7% on average, for about 125,800 customers in September 2022.
  • In January 2022, Progressive Direct Insurance Company increased its rates by 20%, on average, for about 425,000 customers. And Progressive Specialty Insurance Company increased its rates by 15.1%, on average, for nearly 375,000 customers.
  • GEICO Advantage Insurance Company increased its rates by 13.5% for 158,000 customers in May 2022 and 12.4% for 143,000 customers in September 2022.
  • Another significant increase affected a smaller number of customers. For example, USAA General Indemnity Company increased rates by 23% on about 40,000 customers; Garrison Property and Casualty Insurance Company increased rates by 19.5% on nearly 17,800 customers and American Family Mutual Insurance Company increased rates by 19% on about 46,700 customers.

Ohio law requires the state Department of Insurance to review and approve car insurance rates to make sure they aren’t “excessive.”

“Ohio Department of Insurance staff review rate filings to make sure that premiums are actuarially sound, not excessive, inadequate or unfairly discriminatory,”

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Do I Need Rental Car Insurance?

When you rent a car, the most stressful decision just might be whether to accept the rental car insurance.

Rental car insurance can provide short-term coverage if you need to rent a vehicle on vacation or while your car is in the shop. But insurance for a rental can be complicated, and in some cases, you might already be covered.

Understanding how car rental insurance works can help ensure you’re getting the coverage you need without overpaying.

How does rental car insurance work?

Unlike coverage for primary vehicleswhich is relatively standardized and offered by large and regional insurance carriers, rental car insurance can come in different forms and from various types of providers.

If your car is in the shop, for example, your personal auto policy will extend to the rental. In some cases, you may even be able to get reimbursed for your daily rental fee.

If you’re renting a car for travel or leisure, on the other hand, you may opt to buy coverage directly from the rental agency, but you may also be at least partially covered by your personal auto policy or even by your credit card provider.

However, there’s no single coverage that includes everything. Instead, rental car agencies and auto insurance carriers will offer different types of coverage that you can choose from based on your needs.

Types of rental car insurance

Car rental companies offer four different types of car rental insurance coverage, most of which may already be covered by your personal auto policy. The rental agency will typically allow you to choose which types of coverages you want instead of bundling them all together.

Here’s a quick breakdown of each type.

Collision-damage waiver

Also called a loss damage waiver, this coverage protects you against any damage or loss to the rental, even if you’re at fault. In addition to physical damage, it will also cover towing and storage costs, impound fees, loss of use and other charges.

Supplemental liability protection

This coverage provides financial protection in the event that you cause personal injury to another person or damage to their vehicle or personal property. Most states require car rental agencies to include some liability coverage as part of your rental fee. However, this basic protection is typically only the state’s minimum required limit, which isn’t sufficient for major accidents. Rental agencies also offer supplemental liability protection that you can buy. The coverage can be for as much as $2 million in some cases.

You can use your personal auto policy’s liability coverage instead of paying for the rental agency’s insurance. But if you don’t have a car or aren’t relying on your personal policy, experts strongly recommend purchasing supplemental liability insurance, even if you opt to skip other types of insurance offered.

“You could have a lifetime financial catastrophe if you don’t have enough liability insurance,” says Bob Hertel, director of product development, personal lines at Acuity Insurance.

Personal accident insurance

Personal accident insurance provides coverage for you and other

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Ohio Department of Insurance warns of scam offering new Medicare cards

CLEVELAND, Ohio (WOIO) – How closely do you guard your Medicare card?

Scammers are phishing for your Medicare card number, and you might not even know it’s been stolen.

The Ohio Department of Insurance is sounding the alarm about a new tactic from scam artists who are calling Medicard card holders posing as if they’re calling from the Social Security Administration or Medicare, saying you need to be issued a new, plastic card.

They want you to know there are no new Medicare cards.

“What they do is sell that number to somebody who can then bill the Medicare system fraudulently using that number,” said Becky Hayward with the Ohio Senior Health Insurance Information Program.

So the federal government, and tax payers are being scammed, paying out millions in claims from people who aren’t Medicare patients.

“They could have claims on their account and they may have to face some medical bills of things that might happen. And if they don’t pay attention, they may be saddled with the bill for something that didn’t happen,” she said.

Individuals might not know they’re a victim until they need something themselves.

“Maybe you need a wheelchair, and somebody already ordered a wheelchair fraudulently under your account. And you won’t get that wheelchair,” said Hayward.

Those with access to your Medicare card number may also use it to pose as you and get more personal information, in order to steal your identity.

OSHIIP is warning Medicare card holders to protect their cards and their numbers just like you do your social security numbers, credit card and bank account information.

There aren’t any quantitative numbers on how often this is happening, but OSHIIP hotline calls indicate this is trending upwards.

Starting this month, you’ll start to see reminders on your Medicare summary notices, which is an explanation of your benefits, encouraging people to protect their cards and not to share their numbers.

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