CNN's Velshi Returns to Slamming Insurance Companies

     “Gee, I’d love to be fair and balanced, but I tried even less than I did two days ago.”


     That’s what CNN’s Ali Velshi might as well have said in his August 30 story on “American Morning” in his weeklong series, “Red Tape and Rubble.” The CNN business reporter showed insurance claimants and attorneys suing insurance companies, but failed to include a spokesman from an insurance trade group. He did so, albeit briefly, just two days prior, however.


     In between stories of frustrated insurance claimants, Velshi shared that “the insurance industry says that some in the media and CNN in particular haven’t given them a fair shake.” In response, Velshi added that he “invited the CEO of State Farm” and the president and CEO of Allstate were “unable to accommodate our request for an interview either.” 


     Yet elsewhere in his story, Velshi admitted that one insurance company was unable to talk to Velshi about individual cases, exactly the topic of Velshi’s story: individual cases of frustrated insurance claimants.


     “Allstate says it won’t comment on specific cases,” he noted after highlighting one couple’s gripes about the company.


     In fact, many companies refuse to comment to the media about cases under litigation or threat of litigation, and Velshi should know it. Instead, the business reporter could have sought comment from the American Insurance Association (AIA) or the Insurance Information Institute (III) for industry input in his story.


     Indeed, that’s what he did two days earlier, when Velshi filed a similarly slanted story about damage to one Cecil Tillman’s property in his first installment of “Red Tape and Rubble.” In his August 28 story, Velshi noted that “we wanted to ask Nationwide about Tillman’s case, but the firm wouldn’t comment, so we went to the Insurance Information Institute, the industry’s public relations arm.” 


     What’s more, while Velshi’s featured hurricane victims may have legitimate complaints, the CNN reporter failed to note that these cases in the tiny minority of insurance claims, according to the III. The organization reported on August 22 that 95 percent of claims from Katrina have been finalized “and the vast majority” of those dealing with insurance claims in Mississippi and Louisiana “are satisfied with their insurance company.”