Hartford Region Coalition Embarks on Development of Economic Strategy

A coalition of prominent business, transportation and community development organizations in the Hartford Metropolitan Region has begun the process of taking a fresh look at its position in the global economy, with an eye toward taking advantage of economic opportunity. In announcing the initiative, the organizations noted that the region and the state have struggled to recover from the 2008 recession and that global, national, and local trends are reshaping the region’s economy. The state and many of the region’s 38 municipalities face increasingly difficult fiscal situations that hamper their ability to pursue projects that will lead to growth, officials said.

Recognizing that these trends, if left unaddressed, can dramatically impact the region, the organizations – the Capitol Region Council of Governments (CRCOG), Hartford Foundation for Public Giving (HFPG) and MetroHartford Alliance - will be working as an advisory committee to develop a new Comprehensive Economic Development Strategy (CEDS) for the Hartford Metropolitan Region. The most recent strategy was developed in 2012, and a previous effort took place in 2006.

“This strategy will take a hard look at the region and identify and prioritize the most promising opportunities for creating lasting economic growth. This region is a leader in insurance, finance, and advanced manufacturing; we need to build on these strengths to encourage the kind of growth that will lead to lasting fiscal stability,” said Jim Scannell, Senior Vice President, Administrative Services, at Travelers and co-chair of the CEDS Advisory Committee.

The effort gets underway with new leadership at the helm at a number of the organizations, which may impact the perspective along the way, if not the final results.  Led by the CRCOG, and longtime Executive Director Lyle Wray, the initiative is in partnership with the Hartford Foundation, where President Jay Williams, a former Assistant Secretary of Commerce for Economic Development and mayor of Youngstown, OH relocated to the region last year, and the MetroHartford Alliance, which hired David Griggs, mostly recently leading economic development efforts in Minneapolis-St.Paul as its new President and CEO.  Williams joins Scannell as co-chair of the CEDS Advisory Committee.

The consulting firm of Fourth Economy Consulting has been hired to help the region complete a situational assessment and develop “game changer” initiatives to serve as the core of a new economic development strategy. Fourth Economy, based in Pittsburgh, recently worked with the 100 Resilient Cities initiative to help cities around the world become more resilient to economic changes.

The process will be led by an advisory committee comprised of representatives of businesses, governments, educational institutions and non-profits throughout the region. A smaller working group, comprised of partner organizations like the New Britain Chamber of Commerce, will work closely with the consulting team and the advisory committee to develop a regional vision and turn it into an actionable plan.

Four primary tasks have been identified for the initiative:

• Goal-Setting: Build consensus around the need for accelerating inclusive/equitable economic growth; that is raising incomes across the income distribution with particular attention to opportunities for engaging those who have often been left behind.
• Situational Analysis: Do a clear-eyed assessment of our situation: who, what, where to identify opportunities that we should be pursuing as a metropolitan region (i.e., SWOT with an emphasis on context and opportunities).
• Strategic Planning: Formulate a limited number of “game changer” strategies that will move the trajectory of inclusive economic growth in the right direction.
• Capacity-Building: Identify organizational forms and collaborations that we will need to implement and sustain the strategies over time.

During this process the Advisory Committee will also identify potential partner organizations and set up an organizational structure to implement the initiatives.  A final strategy report is due next winter.  CRCOG has set up a website that already includes key resources, and will be updated as the work proceeds during the year.

“There is only one way our region will achieve equitable and sustainable economic growth.  We must eschew the past squabbles and divisions that have kept us mired in anemic progress,” said Jay Williams, president of the Hartford Foundation and co-chair of the CEDS Advisory Committee.  “If we commit to a bold, collaborative, and pragmatic approach, we can develop a roadmap to capitalize on the enormous talent and multiple assets our region possesses.  I’ve seen the success of this approach in other parts of the country and there is absolutely no reason it can’t occur here, unless we lack the collective will to make it happen.”

Similar efforts occur throughout the state led by various economic development regions. The WestCOG Region’s first Comprehensive Economic Development Strategy (CEDS) was developed throughout 2017.  WestCOG includes 18 towns in the Stamford - Norwalk - Danbury region of the state.  Public comment on the draft plan was solicited last fall.

The state’s South Central Connecticut region, centered around New Haven, undertook a similar effort in 2013, which has been updated annually. The Strategic Planning Committee and sector subcommittees have been established for 2018, and are currently gathering data and input from community stakeholders, according to the website for that region’s economic strategy planning initiative. It is led by Economic Development Corporation of New Haven,  a private, non-profit organization, dedicated to business and economic development within the city of New Haven and REX Development, which was formed as the economic development entity for the fifteen towns served by the South Central Regional Council of Governments (SCRCOG).

Of the Hartford region’s CEDS initiative, East Hartford Mayor Marcia Leclerc, the Chair of the CRCOG Policy Board said “Our metropolitan region needs to competitively position itself for the future in relation to other regions in the country, as well as globally. To do that we need to take a hard look at our current situation and our opportunities.”

CT Saves Week Focuses on Individual Finances (Not State Finances)

When the Legislative Office Building hosts a Financial Education Expo on Wednesday as part of Connecticut Saves Week, there may be more than one passerby suggesting that legislators pay particular attention, given that the state budget has been perpetually out-of-balance in recent years. The Expo, from 10 a.m. to 1 p.m., is open to the public.  Connecticut Saves Week, which runs through March 3, is part of America Saves Week, which began in 2007.

In addition to the expo at the State Capitol complex, there are three financial action workshops this week at American Job Centers around the state, with a focus on setting financial goals, reducing expenses and improving credit. They are being held from 9 to 11 a.m. on Tuesday in Hamden, 1 to 3 p.m. on Tuesday in Bridgeport and 9 to 11 a.m. on Thursday in Hartford.

UConn Extension will also be holding a Beyond Paycheck to Paycheck workshop series at its New Haven County Extension Center from 6 to 7:30 p.m. on March 5 and March 12 (The first of three sessions was held on Feb. 26).

“These workshops are designed to help individuals and their families take charge of their educational and career goals by providing budgetary guidance that will lead to future success,” said state Labor Commissioner Scott D. Jackson. “Whether the plan is to purchase tuition and books, buy a car to get to work, or start a savings plan, the end goal is improving economic security and employment opportunities for our residents.”

According to a May 2016 report from the Federal Reserve, 46 percent of adults surveyed said they could not cover an emergency expense costing $400.  Results from the 2015 FINRA Investor Education Foundation US Financial Capability Study indicate that among Connecticut residents, 48 percent do not have emergency funds, 52 percent have not set aside money for children’s college education, and 18 percent are spending more than their income. Financial literacy is offered in some Connecticut schools, but it is not required by the state for high school graduation.

Chris Lee, president of Connecticut JumpStart, a local nonprofit that works to get financial literacy into schools, told WNPR in December 2017 that a part of the state’s budget problem might be because lawmakers aren't very financially literate, the news station reported.

"I've always said I think a lot of members of the House and Senate both need to take some financial literacy courses and get some background in it before they go in to do some budget talks just to understand how all this stuff works," Lee told WNPR. "They don't understand financial literacy and they don't understand why it's important."

A financial literacy survey of high school and college students in Fairfield and New Haven counties and surrounding areas conducted last year showed 29 percent of local young adults do not have checking accounts or regularly use only cash, highlighting the need for expanded financial literacy education.  The survey was conducted by Stamford-based Patriot Bank.

An online “pledge” is available for interested individuals that will trigger periodic information, advice, tips, and reminders sent by email or text message, designed “to help you reach your savings goal, ” according to the CT Saves website.

The Connecticut Saves campaign encourages residents to assess their savings and save automatically to achieve financial goals. It is coordinated by UConn Extension and partners that include the Connecticut Department of Banking; the Connecticut Department of Labor; Connecticut State Library; Hartford Job Corps Academy; People’s United Bank; Human Resources Agency of New Britain, Inc.; Connecticut Association for Human Services; the Better Business Bureau Servicing Connecticut; Chelsea Groton Bank; and Community Renewal Team.

Transportation Officials Announce "Stunning" Findings in I-95 Congestion Study

“For years, the accepted thinking was that the only way to relieve congestion on I-95 was to add a lane in each direction from border to border. After a detailed study of alternatives, we have determined that strategic, directional widening on I-95 between New Haven and New York can significantly reduce congestion and can be built within existing right of way.” Those comments, from Connecticut Department of Transportation (CTDOT) Commissioner James P. Redeker , accompanied the release of a study on the impact of widening and improving both the western and eastern portions of Interstate 95 in Connecticut, and which also outlined “the consequences of failing to act.” The report indicated that “limited,  directional and strategic widening yields major benefits.”

Redeker added that “Similar strategic, localized investments can also reduce congestion between New Haven and Rhode Island. These findings indicate that we can achieve congestion relief through strategic and much less costly investments far sooner than previously thought. In addition, the return on these investments would far exceed the cost of the projects.”

Currently, peak morning and evening congestion on the highway accounts for 54 million hours of delay and costs $1.2 billion in lost time annually. Key areas studied were Fairfield to Bridgeport Northbound (6.3 miles), Stamford to New York Southbound (9.3 miles) and Stamford to Fairfield Northbound (11.1 miles).  The report noted that safety, as well as travel time, was a key element in the recommendations.  For example, from Branford to the Rhode Island border, it was indicated that there were 3,380 crashes during 2014-2016, including 997 injuries and 23 fatalities.

The I-95 widening projects were included in the $4.3 billion in projects canceled or suspended by the CTDOT last month because of what the Governor’s office described as “long-term failure to adequately fund the Special Transportation Fund.”  The Governor’s revenue proposal – which includes a seven-cent increase in the gas tax over four years and the implementation of electronic tolling – would allow for these investments to go forward, the Office said.

“CTDOT is excited to announce that after a detailed study of options for relieving congestion on I-95, we are able to report a stunning set of findings,” Commissioner Redeker said in releasing the report.

Among other findings, the report notes that just one of the projects proposed – adding one northbound lane between exits 19 and 28 – would reduce travel time from the New York border to Bridgeport from 63 minutes – if no improvements are made – to 41 minutes during weekday afternoon peak times. .Short-term, mid-range and long-range options were presented for I-95, including exists 54 to 55, 88 to 90, 80-74 80-82A, and the I-95/Route 32 interchange.  Long-range improvements from exit 54 to 69 “requires further study” the report said.  It also called for “strategic improvement” Northbound from Exit 19 to 28 to “remove bottleneck.”

In announcing the report’s findings, Governor Malloy warned that without legislative action this session to shore up the Special Transportation Fund (STF), this type of investment will be impossible.

“These improvements shouldn’t be seen as optional,” Malloy said. “But without new revenue to stabilize the Special Transportation Fund, critical projects like the I-95 widening will not be possible. I put forward a reasonable proposal last month, and I look forward to working with the legislature this year to find real, long-term transportation solutions.”

“Connecticut deserves this rational, sensible and cost-effective investment to support our economic growth,” Redeker added. The DOT first announced a study of the I-95 corridor in October 2016.

Private Schools in Connecticut Among Most Expensive in USA

If you’re considering sending a child to private elementary or high school, know that there’s virtually nowhere in the United States more expensive in Connecticut. The average cost of private high school tuition in Connecticut, $31,413, is the second most expensive in the nation, just behind Vermont ($31,532) and just ahead of Massachusetts ($30,186).  New Hampshire and Main round out the top five most expensive states for private high school tuition.

The most expensive average elementary school tuition cost is also on the East Coast, and Connecticut leads the way.  The average private elementary school tuition is $13,412, with Massachusetts ($10,822), New Hampshire ($10,773), Virginia ($10,755), and New York ($10,513) rounding out the top five.

The average cost of private school tuition has grown at a rate that is higher than inflation over the past 20 years, according to data analyzed by the website hommuch.net   The site indicates that administrative employee compensation has been the main catalyst for the increases in private school expenses, noting that the rise in the volume of employees who have a larger compensation package than a typical teacher has created the upward trajectory in private school tuition costs.

The website Private School Review indicates that the private elementary school average is $9,263 per year and the private high school average is $14,017 per year.

In a ranking of the best private schools in Connecticut this year, the website Niche listed Choate Rosemary Hall (Wallingford), The Hotchkiss School (Lakeville), Hopkins School (New Haven), Kent School (Kent), Greenwich Academy (Greenwich), The Taft School (Watertown), Loomis Chaffee School (Windsor), Brunswick School (Greenwich), Miss Porter’s School (Farmington) and Westminster School (Simsbury) as the top 10.

Report Reflects Good News, Continuing Challenges for Women, Girls in Eastern CT

Women and girls in Eastern Connecticut are progressing in many ways, but gender equity is elusive in many others, according to a new report.  The Community Foundation of Eastern Connecticut commissioned DataHaven to develop a report on the Status of Women and Girls in Eastern Connecticut, and the findings provide an insightful snapshot of disparities that persist, and challenges that remain and may increase, as well as diminish, in the years ahead. The purpose of the 26-page report, explains the Community Foundation’s President and Chief Executive Officer Maryam Elahi, is “to help inform and guide thoughtful conversations and inspire local ideas for social and policy advancements and investments.”   It is designed to be a “platform for action” to increase opportunity, access and equity for women and girls in Eastern Connecticut, officials indicated.  It is the first time that such a report was developed.

Among the key findings:

• Young women are achieving in school, but greater educational attainment has yet to translate to economic equality.
• Positive educational outcomes and economic equality are further out of reach for women of color.
• Many occupations remain segregated by gender, and women make up a majority of part-time workers.
• Women are at greater risk of financial insecurity, with single mothers at the greatest risk. 25% of all children in Eastern Connecticut live with a single mother, and 90% of single-parent households are headed by a mother.
• Women in Eastern Connecticut are healthy, with a life expectancy of about 82 years—slightly above the national average, but below the state average.

The report also found that:

• The opioid epidemic continues to ravage our communities, with deaths of women in 2016 more than double those of 2012.
• Young women are at heightened risk for many mental health conditions. 35% of female students reported feeling hopeless or depressed vs. 19% of male students, and women are three times more likely to attempt suicide than men.
• Violence against women continues to be a major public health problem. Almost 5,000 women in Windham and New London counties received services from domestic violence shelters.

The report defines Eastern Connecticut as the Community Foundation of Eastern Connecticut service area:  42 towns that include 453,000 people, 227,000 women.  The population of the region is 80% white, 9% Latina, 4% Black and 4% Asian.  Approximately 33,700 residents, or 7 percent, are foreign born.  Looking ahead, the report noted that the population of women ages 65 and up is projected to grow significantly over the next decade; estimated to increase 44 percent by 2025.

Continuing racial disparities are highlighted by the finding that among 90 percent of girls in the region’s class of 2016 graduated high school within four years, yet nearly 20 percent of women in New London and Windham/Willimantic lack a high school diploma.

The report noted that “a persistent gap” exists for women with degrees in STEM fields. Overall, 51 percent of men vs. 30 percent of women majored in science and engineering fields. Encouragingly, of 25-39 year-old women with degrees, 37 percent majored in the sciences. This is higher than previous generations.

Although women comprise 76 percent of educators, only 11 out of 41 superintendents in the region are women.  The report also found that 25 percent of businesses are women-owned.

“Women’s equality,” Elahi said, “is not just a women’s issue. It affects the wellbeing and prosperity of every family and community.”

The Community Foundation has organized public forums to discuss the report findings.  The first was held last week in Hampton, the next is February 15 in New London.

New Haven-based DataHaven’s mission is to improve quality of life by collecting, sharing, and interpreting public data for effective decision-making. The Community Foundation of Eastern Connecticut serves 42 towns and is comprised of over 490 charitable funds, putting “philanthropy into action to address the needs, rights and interests of the region.”

Hurricanes v. Whalers: Words and Numbers Tell Different Stories

In the midst of the war of words between unrelenting fans of the former Hartford Whalers (joined by Governor Malloy) and the Raleigh News & Observer, which has aimed a cease and desist order at Hartford, it may be worthwhile to delve into the data. It prove to be a distinction without a difference, however. Gov. Malloy’s February 8 letter to Thomas Dundon, a Dallas businessman and new owner of the Carolina Hurricanes, urged that the team return to the Nutmeg State for a regular season game at Rentschler Field or the XL Center so the team could be “embraced by a grateful fan base.”  Doing so, Malloy pointed out, “would make clear that Hartford is a far more viable long-term home for the team than Raleigh.”

When asked days ago by The Sporting News about the 'Canes future in Raleigh, Dundon said: “As long as I’m involved, this is where we’re going to be. One of the best things about this is the people. They’re just nice people here. They care. There’s no reason to be anywhere else.”

In an editorial, the Raleigh newspaper added that if a game were to be played in Hartford, it would be preseason, not regular season, and only because it would be “a chance to hoover some money out of the pockets of long-suffering Whalers fans desperate to see NHL hockey again…  But that’s not going to happen.”

Last season, the Hurricanes had the league’s lowest attendance, averaging 11,776 per home game.  It was their second consecutive season at the bottom of the league in attendance.  In the 2015-16 season, average attendance was 12,203. Midway through this season, after 27 home games, the Hurricanes are averaging 13,039, 29th out of 31 teams in the league.

In the Whalers’ final season in Hartford, 1996-97, attendance at the Hartford Civic Center had grown to 87 percent of capacity, with an average attendance of 13,680 per game.  Published reports suggest that the average attendance was, in reality, higher than 14,000 per game by 1996-97, but Whalers ownership did not count the skyboxes and coliseum club seating because the revenue streams went to the state, rather than the team.

Attendance increased for four consecutive years before management moved the team from Hartford. (To 10,407 in 1993-94, 11,835 in 1994-95, 11,983 in 1995-96 and 13,680 in 1996-97.)  During the team’s tenure in Hartford, average attendance exceeded 14,000 twice – in 1987-88 and 1986-87, when the team ranked 13th in the league in attendance in both seasons.

During the 15 years prior to the past two seasons at the bottom, Carolina has been among the league’s bottom-third in  average attendance eight times, and the bottom-half every season but one.

The Sporting News has reported that Dundon purchased a 61 percent stake in the franchise last month, with Peter Karmanos, who relocated the Whalers to North Carolina in 1997, retaining a 39 percent minority stake. Dundon reportedly has an option to purchase the remainder in three years. He is a New York native, and lived in New Jersey and Houston before Dallas.

The arena's lease in Raleigh expires in 2024.  The team's current playoff drought is the longest of any team in the NHL - nearly a decade.

In the interview, Dundon pointed out “We have a really passionate, loyal season ticket base. The number is just smaller than you’d like it to be, but you have one. Every year that’ll grow. So the only challenge is just the amount of people that you have to touch. It’s inevitable that we’re going to touch them all and we’re going to get them.”

SeeClickFix is Only CT Business to Reach GovTech 100

New Haven-based SeeClickFix is the only Connecticut business to make the 2018 GovTech 100, an annual compendium of 100 companies focused on, making a difference in, and selling to state and local government agencies across the United States. SeeClickFix was launched ten years ago this month, according to co-founder Ben Berkowitz: “It began as a ‘nights and weekends’ project between friends with a goal of fixing some small problems locally and a big problem globally. SeeClickFix has become something much bigger than I could have ever imagined.”

Described as “a service to make communities stronger,” the key benchmarks the company points to include: a full time job for 33 employees, a platform that has helped facilitate the resolution of 4 million issues, a space for aspirations in tens of thousands of communities, and the official digital channel for service request resolution for hundreds of governments and tens of millions of their residents.

The annual list, compiled and published by Government Technology,  highlights leaders in the government technology sector – a marketplace that the publication says has ”brought bigger deals, more investment, new companies and many fresh new innovations that moved the needle in the public sector.”

Overall, 32 of the 100 companies are based in California, seven are based in New York, and six are headquartered in Massachusetts.  Rhode Island placed one company, Providence-based software company Utilidata.  There were no other companies based in New England.

“State and local governments have become more willing to try implementing new systems using agile methodologies that fit better with the modern tech world,” the publication pointed out. “They are striking up pilot projects and demonstration agreements that let them try out new ideas before taking the kind of big-dollar risks that government is not amenable to taking.”

“It is no secret that SeeClickFix was built from a place of distrust in the existing bureaucratic process that existed in 2007 for handling citizen concerns,” Berkowitz noted. “The three hundred governments and the thousands of officials that leverage SeeClickFix daily to engage in transparent and responsive communication has more than reversed our distrust.”

SeeClickFix is proving effective in small towns as well as big cities.  The town of Wilton in Southern Connecticut went live with SeeClickFix this past fall and used it at a Winter Carnival and Ice Festival in town this week.

The SeeClickFix blog highlighted the town, explaining that “They are a model town — they have done everything right! They have sustainable marketing, well-crafted goals and benchmarks, a responsive set of municipal departments, a champion in town leadership, and the flexibility necessary to add in request categories when citizens underscore a need.”

SeeClickFix co-founders include Miles Lasater, Kam Lasater, Jeff Blasius.  The company holds an annual User Summit every fall in New Haven, drawing local government customers from throughout the country to share best practices.

https://youtu.be/NYKo5koU_jI

Million Dollar Homes? CT Ranks 6th in USA

There has been discussion during Connecticut’s ongoing state budget shortfall about the disproportionate impact of the state’s wealthiest residents, and how overall state revenues are affected when some of those residents decide to relocate to lower-tax states. Now, national data analyzing million dollar homes is underscoring Connecticut’s standing as being among the states where the ultra-wealthy have roots.

An analysis by Overflow Data and Visual Capitalist ranks Connecticut in the top ten among states with the highest percentage of homes worth more than one million dollars.  Connecticut ranks sixth, with 4.5 percent of homes surpassing that threshold.

Ahead of Connecticut are only Washington, D.C. (17.3%), California (13.6%), Hawaii (13.5%), New York (7%), and Massachusetts (5.2%).

Connecticut’s standing may slip in the coming years.  In a review of cities where million dollar listings have “skyrocketed,” increasing over the past three years, the leaders were Denver, Santa Rosa (CA), Boulder, Truckee (CA), Fredericksburg (TX), Heber (UT) and Boston.

The share of homes valued at more than $1 million has surged more than fourfold since 2002, according to recent data compiled  from real estate site Trulia, which analyzed the luxury real estate market in the top 100 U.S. metropolitan areas, and reported by CBS News.  Across those regions, about 4.3 percent of homes are now worth at least $1 million, compared with about 1 percent in 2002, said Trulia senior economist Cheryl Young told the network.

The five metropolitan areas with the largest share of homes worth $1 million in 2017, according to CBS News, are: San Francisco, San Jose, Los Angeles, Fairfield County, CT, and Long Island, New York.

The network reported that rising real estate values, tight inventory and a lack of new construction are contributing to the surge in million-dollar homes. Another factor may be at play: rising income inequality, which has benefited the bank accounts of America's richest families, the network report noted.

Among the Wealthy, CT’s Gender Pay Gap is 4th Widest in the U.S.

In Connecticut, among the top 2 percent of wage earners, men earn an average of $658,000 while women earn an average of $214,000, a gap of $444,000.  That’s 67 percent less earned by women in the top 2 percent.  It is the fourth largest wage gap in the nation, comparing people earning in the top 2 percent in all 50 states. The data, compiled by the website howmuch.net, used information from the United States Joint Economic Committee.  The analysis indicates that the pay gap is “enormous everywhere you look. There isn’t a single place in the country where it doesn’t exist. The best state for pay equality is Alaska, but even there, women make 25% less than men.”

The largest pay gap between wealthy men and women is in Wyoming, at 71 percent, followed by Nebraska (68.7%), Oklahoma (68%), Connecticut (67.4%) and New York (67.3%).

The website indicates that for people earning an average income, the gender pay gap is typically around 20 percent. “For the ultra-rich, however, women make 60-71.76% less than men in a whopping 37 different states.”

In 1963, only 44 percent of prime working-age women (ages 25 to 54) were in the labor force. Around that time, women held fewer than one in three jobs. Today, about 75 percent of prime working-age women are in the labor force and women hold almost half (49 percent) of all jobs, according to data compiled by the Bureau of Labor Statistics.

Connecticut’s average for men in the top 2 percent of wage earners - $658,000 – was the highest in the country, just ahead of Washington, DC ($637,000), New York ($613,000) and New Jersey ($555,000). Massachusetts was next, at $551,000.

For women in the top 2 percent, Washington, D.C. topped the list at $280,000, followed next by Connecticut at $214,000, and New York, New Jersey, Massachusetts and California at $200,000.

The website analysis concludes that the pay gap “gets worse the richer you are."

Insurance Department Recovers Almost $7 Million in 2017, Nearly Even with Previous Year; Industry Fines Increase

The Connecticut Insurance Department recovered nearly $7 million for policyholders and taxpayers in 2017, helping individuals, families and employers with their claims and complaints.  That’s slightly less than the $7.5 million recovered in 2016, but higher than the $6 million that was recovered for policy holders in 2015.  About $2 million in fines were issued against carriers, an increase from $1.6 million and $1.7 million during each of the previous two years. “Consumers have every right to expect that the promises made to them by their insurance companies will be kept and the Department is here to help them every step of the way. Protecting consumers is our mission and the Department makes certain that carriers adhere to all insurance laws and regulations are followed,” Insurance Commissioner Katharine L. Wade said. “We assist thousands of consumers every year who have brought their questions and concerns to us.”

The Department’s Consumer Affairs Unit (CAU) fielded 5,800 complaints and inquiries in 2017 and helped policyholders recoup nearly $4.8 million from January 1 to December 31, 2017. Also in 2017, the Department’s Market Conduct Division levied approximately $2 million in fines against carriers and returned that money to the state’s General Fund. The fines resulted from a variety of violations and settlements ranging from untimely claim payments to improper licensing.

The majority of the funds recovered for policyholders stemmed from complaints over health, accident, homeowners and life and annuities policies. The following is the breakdown of funds recovered in 2017:

• Accident, Health - $2.9 million
• Auto - $584,200
• General Liability - $101,000
• Homeowners and Commercial Property - $344,600
• Life, Annuities - $739,000
• Miscellaneous - $89,000

A year ago, in 2016, the Department’s recoveries were somewhat higher than in 2017 - recovering $7.5 million for policyholders and taxpayers.  The Department’s Consumer Affairs Unit (CAU) fielded more than 5,800 complaints and inquiries during the year.

In 2015, there were more consumer inquires and complaints, which resulted, however, in a lower total of money recovered with the department’s assistance.  The department recovered approximately $6 million for policyholders and taxpayers in 2015, when the majority of the funds recovered for policyholders stemmed from complaints over health, accident, homeowners and life and annuities policies. That year, the Department’s Consumer Affairs Unit (CAU) fielded more than 6,100 complaints and inquiries.

Officials explained that the Department calculates its consumer recoveries based on what the policyholder received as a result of the Department’s intervention. The inquiries and complaints also help the Department identify industry trends that may adversely affect consumers and trigger investigation by the Market Conduct division, they added.

The Insurance Department also highlighted three matters that were dealt with during 2017 which resulted in recoveries for policy owners.

• When an individual who had health coverage through his employer complained about being overcharged for a visit to the emergency room, intervention by the Department’s Consumer Affairs Unit resulted in corrective action not only for that individual but for nearly 200 people whose employers used that same health insurance company for their health plans. The Department required the carrier to review similar claims for that plan, resulting in $47,000 in total recoveries for those affected individuals. As a result, the Department’s Market Conduct Division is investigating to determine if this was an isolated incident or is a systemic issue with the carrier.
• The Department intervened when a family was denied a $100,000 death benefit because the life insurance company said the deceased had pre-existing health issues that disqualified the payment. The Department determined the company issued the policy without first looking into the individual’s health history despite having the opportunity to do so and therefore was obligated to make good on the claim. The family received the full death benefit plus interest.
• The Department helped expedite a damage claim for a widow who was trying to get her husband’s gravestone replaced when it was one of several damaged by a car that crashed in a cemetery. The auto insurance company for the driver had the claim for three months but once the Department got involved, the carrier settled it within 10 days and paid nearly $30,000 to repair the cemetery damage.

Complaint data also help determine topics for consumer education and serve as tools to help the Department monitor the industry, officials noted. The Market Conduct enforcement actions are posted on the Department’s website at www.ct.gov/cid.