News
A&E reserve shortfall at US$38 billion in U.S.: A.M. Best
December 6, 2004 by Canadian UnderwriterU.S. insurers currently have a US$38 billion shortfall in funding for asbestos & environmental (A&E) liabilities, according to a new report by A.M. Best.A surprising amount of this, US$24 billion, relates to environmental liabilities, with US$14 billion related to asbestos.…
Liberals offer up new DAC replacement scheme in Ontario
December 6, 2004 by Canadian UnderwriterAccording to documents from the Financial Services Commission of Ontario (FSCO) obtained by Canadian Underwriter, a new system to replace Ontario’s “designated assessment centers” (DACs) has been established.The new “post-DAC” system would allow claimants to receive assessments within the statutory…
MPI told to lower rates by PUB
December 6, 2004 by Canadian UnderwriterManitoba Public Insurance, the province’s government-run auto insurance plan, has been told to lower basic auto insurance rates by 1% for 2005 by the provincial Public Utilities Board (PUB), which regulates auto rates.As a result of the PUB decision, the…
What’s new: In brief (December 05, 2004)
December 5, 2004 by Canadian UnderwriterThe Financial Services Commission of Ontario (FSCO) has order two Toronto paralegals operating as “Castro and Associates” to cease and desist holding themselves out as paralegals. The interim order requires Carlos Castro, Manuel Castro and any of their representatives to…
Chubb latest company to receive subpoena in SEC probe of finite re
December 5, 2004 by Canadian UnderwriterNew Jersey-based Chubb Corp. is the latest to receive a subpoena from the U.S. Securities Exchange Commission related to a probe of finite risk reinsurance products.The SEC probe mirrors one being undertaken by New York Attorney General Eliot Spitzer into…
Gore Mutual ratings lowered on performance concerns: S&P
December 5, 2004 by Canadian UnderwriterCambridge, Ontario-based Gore Mutual Insurance Co. has seen its counterparty credit and financial strength ratings lowered to “BB” from “BBB” by rating agency Standard & Poor’s. The ratings are based on public data, rather than an interactive rating process, S&P…
Insurers still “playing catch-up” on capital management: KPMG
December 5, 2004 by Canadian UnderwriterInsurers still have a way to go to catch up with their banking and investment industries in effectively managing capital, according to a new survey by KPMG.The “Risk and Capital Management” survey of insurers worldwide finds their responses reflect the…
Lloyd’s flexibility showing in 2004/5: Benfield
December 2, 2004 by Canadian UnderwriterThe financial strength of Lloyd’s, as well as its flexibility, have been evident since 9/11, according to a new report on the London market by reinsurance broker Benfield Group.Lloyd’s maintains a strong competitive position with the significant increase in market…
What’s new: In brief (December 02, 2004)
December 2, 2004 by Canadian UnderwriterAIG has been served with a lawsuit alleging violations of U.S. pension plan legislation for the devaluation of the company’s stock as a result of the recent broker compensation scandals. New York law firm Wolf Popper LLP has filed the…
Analysts predict U.S. growth to stall in 2005
December 2, 2004 by Canadian UnderwriterEconomic signs in the U.S. are far from positive, according to a survey of 45 economists by Swiss Re. The biannual “economic risk” survey found economists perceive a 13% chance of a stock market crash defined as a 25% minimum…
U.S. regulators release draft broker compensation rules
December 2, 2004 by Canadian UnderwriterInsurers are generally reacting positively to proposed model regulations around broker compensation.The Property-Casualty Insurers Association of America (PCI) says the National Association of Insurance Commissioners’ (NAIC) model regulation of broker compensation makes sense in principle. The new regulations would require…
Fairfax make U.S. debt offering
December 1, 2004 by Canadian UnderwriterToronto-based Fairfax Financial Holdings (NYSE, TSX: FFH) is planning an offering of senior notes on the U.S. exchange. The company will offer US$150 million of its 7.75% senior notes due 2012, on condition of the closing of previously announced equity…