News
What’s new: In brief (December 07, 2004)
December 7, 2004 by Canadian UnderwriterThe Council of Insurance Agents & Brokers (CIAB) has added its endorsement to the draft model regulations around broker compensation proposed by the National Association of Insurance Commissioners (NAIC). The CIAB says, however, it wants to see uniform regulations in…
Prof. Gray predicts another bad hurricane season for 2005
December 7, 2004 by Canadian UnderwriterAs insurers continue to deal with the record hurricane season of 2004, they will also be gearing up for another potentially bad season in 2005.Prof. William Gray and his team of researchers from Colorado State University are predicting another above-average…
Lord Levene to remain Lloyd’s chair through 2008
December 7, 2004 by Canadian UnderwriterLord Peter Levene has been asked to serve as chair of Lloyd’s for a second three-year term, beginning in 2005. Levene became the 61st chair of the world’s oldest insurance market when he assumed the role in 2002 for his…
Second WTC trial declares 9/11 attacks two events
December 7, 2004 by Canadian UnderwriterDespite an earlier jury trial which declared the felling of the World Trade Center towers by terrorist on September 11, 2001 as one occurrence in insurance terms, a second trial has declared the attacks as two events.The second verdict, which…
Aon sells Endurance stake; clarifies views on broker compensation
December 6, 2004 by Canadian UnderwriterBroker Aon has sold much of its stake in Bermuda-based Endurance Specialty Holdings Ltd.In a press release, Aon says it has sold basically all of its equity investment in Endurance for US$320.5 million. This included the sale of 9.8 million…
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…