Risk
Manitoba Public Insurance (MPI) is tightening up its driver safety program, hoping for early intervention to change driver behavior.Under the “Driver Improvement and Control Program”, MPI monitors driver behavior using a system of demerit points for collisions, traffic convictions, etc., much like other provinces. Additions to the system will see the public auto insurer looking […]
By Canadian Underwriter | November 21, 2004
1 min read
Industry
Royal & SunAlliance Insurance plc and Royal & SunAlliance Insurance Group have seen their ratings moved to a stable outlook by Fitch Ratings. RSA has had its financial strength rating affirmed at “BBB” and its long-term at “BB+”, while RSA Insurance Group’s long-term rating is assigned as “BB-“. “The rating and new outlook of RSA […]
By Canadian Underwriter | November 18, 2004
With strong results for the third quarter ending September 30, 2004, Western Financial Group (TSX: WFS) says it is ahead of plan in terms of yearend earnings projections.Earnings for third quarter 2004 are up 53.4% to $795,000 ($0.03 per share) from $518,000 a year earlier. Year-to-date net income is up a whopping 86.1% to $2.80 […]
Fitch Ratings, following suit with Standard & Poor’s, has come out strongly against the use of finite reinsurance, saying the practice “means to disconnect the accounting results from the underlying economic reality” faced by insurers buying the product.Raters are reacting to investigation of finite reinsurance (or what S&P terms “financial engineering products”) by New York […]
2 min read
Risk managers want to see an overhaul of the current system for buying insurance coverage, according to a new survey by New York-based Advisen Ltd.In a survey of 700 risk managers, almost 75% said they want more standardization and transparency in insurance buying transactions. At the same time, almost 68% say their organization needs better […]
U.S. insurers had their chance to refute claims of widespread industry deception about their relationships with brokers when Property & Casualty Insurers Association of America (PCI) CEO Ernie Csiszar spoke before a Senate subcommittee this week.Csiszar’s comments came the same day New York Attorney General Eliot Spitzer also spoke to the subcommittee of the Senate […]
By Canadian Underwriter | November 17, 2004
Claims
U.S. insurance regulators have devised a draft of model legislation for broker disclosure of compensation.The National Association of Insurance Commissioners (NAIC) had formed a task force in response to the investigations sparked by New York Attorney General Eliot Spitzer into broker compensation practices and the potential for conflict of interest in contingent commissions. A Senate […]
The decision by the world’s largest brokers to discontinue using contingent commissions could chop upwards of 25% off their bottom line, according to a new study by investment firm WFG Capital Advisors.Many large brokers voluntarily chose to stop accepting contingent commissions following an investigation by New York Attorney General Eliot Spitzer which resulted in a […]
U.S. brokers quickly spoke out against the testimony of New York Attorney General Eliot Spitzer to a Senate subcommittee looking at compensation issues Tuesday. Council of Insurance Agents and Brokers (CIAB) president Ken Crerar says, “we categorically challenge assertions that fraud, bid rigging and kickbacks are commonplace in the insurance brokerage industry. It is wrong […]
Not unexpectedly, New York Attorney General Eliot Spitzer took several serious shots at the insurance industry in his testimony Tuesday to a Senate subcommittee looking into broker compensation issues.Spitzer told a subcommittee of the Senate Committee on Governmental Affairs that insurance has essentially become “an insiders’ club”. Not only do insurance brokers receive contingent commissions […]
By Canadian Underwriter | November 16, 2004
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