What’s new: In brief (April 05, 2005)

GE Insurance Solutions Corp. (formerly called Employers Re) has been downgraded by Standard & Poor’s to financial strength “A” from “A+”, and counterparty credit rating “BBB+” from “A-“. The move follows a review of the group’s poor operating performance over the last five years on the back of significant reserve strengthening. S&P also believes that despite adequate pricing, medium-term prospects for profitability may continue to be hampered by further prior year adverse reserve development, with the anticipation of a 102%-104% combined ratio for 2005. Offsetting these factors is the explicit support of parent company GE and the group’s strong capitalization.

U.S. insurers are trying to get access to “black box” data from passenger vehicles in the state of Nevada. As the state’s Assembly considers legislation around vehicle electronic data recorders and who should have access to such information, the Property Casualty Insurers Association of America (PCI) says insurers should be included in those who can retrieve data from such devices. The PCI says the information would help combat fraud and handle claims, but acknowledges consumers may view this as an invasion of privacy.

The Insurance Brokers of Toronto Region (IBTR) is hosting a one-day seminar in conjunction with regional meetings on Tuesday, April 19 at the Ramada Hotel-Don Valley. The event features an IBAO loss control seminar in the morning, followed by lunch with guest speaker George Cooke, CEO of Dominion of Canada General Insurance Co. The afternoon includes regional meetings for territories 10, 11 and 3. For more information, contact Andrea Raspa at 905-893-7257 or email: araspa@bellnet.ca.