January 13, 2005 by Canadian Underwriter
The U.S. Insurance Research Council (IRC) says auto injury fraud is adding about US$5 billion to claims costs per year, based on 2002 data. The study also found indications of fraud in 10% of all paid bodily injury claims, and 5% of all paid personal injury claims. The study looked at both fraud and build-up, or the intentional inflation of an otherwise legitimate claim.
Standard & Poor’s is creating Canada’s first independent bond index for the TSX, in conjunction with CIBC World Markets and RBC Capital Markets. The S&P/TSX Canadian Bond Index will be independent from market participants, and contain blended prices based on multiple contributors to serve as a benchmark for fixed-income portfolios.
A group representing victims of asbestos-related illness is no more taken with the U.S. government’s plan for a “superfund” than insurers are. The Committee to Protect Mesothelioma Victims says it would favor a registry based on established medical criteria, however, as this would ensure that those most seriously affected by mesothelioma or other asbestos-related illnesses would have highest priority in having their cases heard by the courts. We prefer the medical criteria/registry approach over the trust fund because we don’t trust a new huge federal bureaucracy to help the very sick, we don’t trust that it will protect victims rights, and we certainly can’t trust that the fund will have enough money… because asbestos is not banned in this country, and who knows how much liability will eventually exist?” says Sue Vento, committee spokesperson.