What’s New: In Brief (October 09, 2007)

Western Financial Group has acquired Alberta-based Younger and Holmes Limited and Firmac Insurance Limited.
Our agency continues to expand in growing communities in Western Canada, Scott Tannas, president and CEO of Western Financial Group, said in a release. Both operations have strong market share in their respective communities.

Proposed U.S. legislation has created a debate over whether the use of transponders on ship containers will mitigate the risks of misdirected or falsely declared cargo, or in the alternative pose a competitive cost disadvantage for insurers insisting on use of the devices.
The new proposals, part of the 9/11 Commission Recommendations Act, would force all containers to be scanned for nuclear materials at the last port of call before entering the United States, a release from Lloyds says.
While prompting unrest from shipping firms and port authorities, the proposals also hastened the debate over the use of transponders, the release says.
Lloyds points to recent examples of lost and explosive cargo that have been declared as a less-volatile substance, but ultimately played a part in an explosion causing a total loss of a ship.
In its release, Lloyds also notes the threat of terrorists smuggling weapons in shipping containers. Given those concerns, the use of transponders has been a topic of conversation and while it would be welcomed by underwriters, it is a decision for the container and goods owners, Neil Smith, marine manager of the Lloyds Market Association, said in a statement.
Transponders might be cheap to produce, Lloyds noted, but in the competitive world of container shipments, it would add a great deal of cost to the bottom line and we as insurers cannot force policyholders to spend their money. If an insurer insists on transponders but another does not, then there [is] every likelihood the policyholder [would] go for the cheaper option.