Nationwide Insurance Withdraws Legal Challenge of Auto and Homeowners Data Release
26 May 2000
Nationwide Insurance Withdraws Legal Challenge of Auto and Homeowners Data ReleaseCenter for Economic Justice applauds action COLUMBUS, Ohio, May 26 Nationwide Insurance today announced that it is withdrawing its legal actions against the Texas Department of Insurance (TDI) and the state attorney general's office aimed at preventing the release of the company's quarterly market reports on auto and homeowners insurance sales. The reports, which are filed with the TDI, contain information about Nationwide's sales in Texas. The auto information has been sought from Nationwide and other Texas insurers by the Center for Economic Justice (CEJ), a consumer group based in Austin, Texas. Nationwide had obtained a temporary restraining order to prevent state officials from releasing the auto data pending a court hearing. Lorraine Brock, Nationwide's vice president of urban markets development, said, "While Nationwide still is concerned about the release of trade secrets and proprietary data to our competitors, we feel the issue of releasing the data has been disputed long enough. And, any consideration of continuing the court case is outweighed by our strong desire to clear up any misconception that we are hiding information from the public." She added that while Nationwide has decided to end its litigation, the company recognizes the right of other Texas insurers to contest this issue. D. J. Powers, the CEJ's legal counsel, praised Nationwide for agreeing to release the data. "Nationwide's agreement shows that Nationwide is on your side when it comes to public accountability. Nationwide alone has stepped forward and said it has nothing to hide." Birny Birnbaum, the CEJ's consulting economist, said, "I applaud Nationwide's decision to put its efforts into expanding its presence in underserved areas, instead of continued litigation to keep the public from monitoring the market performance of insurers. I commend Nationwide's leadership and foresight on the ZIP code data issue and we look forward to working with Nationwide and others to improve the insurance availability in poor and minority communities. I urge other insurers to stop litigating and to put those resources into expanding sales in underserved areas." State District Judge Jeanne Meurer ruled on May 12 that the CEJ and others are entitled to quarterly reports Nationwide files with the TDI concerning its homeowners insurance marketing efforts in the state's underserved areas. She is scheduled to hear the auto insurance industry's challenge of the release of auto data on June 26, although Nationwide will no longer be a party to that proceeding. Brock said Nationwide has launched an unprecedented program in Texas to increase insurance availability in underserved areas. "We are growing in underserved areas and we intend to grow even more. Nationwide will spend some $9 million during a five-year program to develop sales and service centers and urban agencies in underserved areas in Texas," Brock said. Nationwide has opened sales and service centers during the past 12 months in McAllen and Dallas. A similar center has been in operation in San Antonio for several years. It also has added nearly 20 agencies in the underserved areas of Houston, Austin, Dallas, Ft. Worth, El Paso, San Antonio and McAllen. "In addition to our Texas growth plan, I am proud to note that Nationwide continues to be an active supporter of underserved communities, both in Texas and nationally," Brock said. Nationwide has contributed more than $1 million to Texas organizations to improve conditions in underserved areas. They include: Neighborhood Housing Services (NHS) of San Antonio, $520,000; Neighborhood Housing Services of Ft. Worth, $511,000; San Antonio Alternative Housing Corp., $5,000; Fifth Ward Community Development Corp. in Houston, $10,000; and the Houston Urban League and Austin Urban League, $10,000 each. As part of its program to help improve urban neighborhoods, Nationwide employees and agents have finished construction of a Habitat for Humanity house in San Antonio, have started construction of one in Dallas, and will build another one in Houston later this year. Nationwide has pledged $2 million to help build 40 Habitat houses in 40 cities across the country. Nationwide also started a partnership this year with the National Latino Children's Institute and recently donated 200 car safety seats to promote children's automobile safety in Hispanic communities. The seats were given away to residents in Dallas, El Paso, Houston, McAllen and San Antonio. The company was the title sponsor for this year's 31st NAACP Image Awards. Last year, Nationwide committed $600,000 to the United Negro College Fund (UNCF) for a scholarship and mentorship program. Nationwide has been a top corporate sponsor since 1986 of the national INROADS, Inc., which offers corporate summer internships to minority students. Nationwide, based in Columbus, is the country's fourth largest homeowners insurer and fifth largest auto insurer. The Center for Economic Justice is a Texas nonprofit corporation dedicated to protecting the interests of minority and low-income consumers as a class.