News
ICBC investigations lead to three fraud pleas
November 21, 2004 by Canadian UnderwriterTwo recent investigations by the Insurance Corp. of B.C. (ICBC) have led to three separate people pleading guilty to filing fraudulent claims.In the first case, Cameron Louis Simpson of Surrey pled guilty and was ordered to pay $2,875 in fines…
MPI tightens up driver safety program
November 21, 2004 by Canadian UnderwriterManitoba Public Insurance (MPI) is tightening up its driver safety program, hoping for early intervention to change driver behavior.Under the “Driver Improvement and Control Program”, MPI monitors driver behavior using a system of demerit points for collisions, traffic convictions, etc.,…
What’s new: In brief (November 18, 2004)
November 18, 2004 by Canadian UnderwriterRoyal & SunAlliance Insurance plc and Royal & SunAlliance Insurance Group have seen their ratings moved to a stable outlook by Fitch Ratings. RSA has had its financial strength rating affirmed at “BBB” and its long-term at “BB+”, while RSA…
Western Financial “ahead of schedule” for 2004 earnings
November 18, 2004 by Canadian UnderwriterWith strong results for the third quarter ending September 30, 2004, Western Financial Group (TSX: WFS) says it is ahead of plan in terms of yearend earnings projections.Earnings for third quarter 2004 are up 53.4% to $795,000 ($0.03 per share)…
Fitch comes out strongly against finite re
November 18, 2004 by Canadian UnderwriterFitch Ratings, following suit with Standard & Poor’s, has come out strongly against the use of finite reinsurance, saying the practice “means to disconnect the accounting results from the underlying economic reality” faced by insurers buying the product.Raters are reacting…
Survey finds widespread risk manager discontent
November 18, 2004 by Canadian UnderwriterRisk managers want to see an overhaul of the current system for buying insurance coverage, according to a new survey by New York-based Advisen Ltd.In a survey of 700 risk managers, almost 75% said they want more standardization and transparency…
U.S. insurers battle back against Spitzer claims
November 17, 2004 by Canadian UnderwriterU.S. insurers had their chance to refute claims of widespread industry deception about their relationships with brokers when Property & Casualty Insurers Association of America (PCI) CEO Ernie Csiszar spoke before a Senate subcommittee this week.Csiszar’s comments came the same…
U.S. regulators draft model for broker compensation
November 17, 2004 by Canadian UnderwriterU.S. insurance regulators have devised a draft of model legislation for broker disclosure of compensation.The National Association of Insurance Commissioners (NAIC) had formed a task force in response to the investigations sparked by New York Attorney General Eliot Spitzer into…
Study predicts Spitzer investigation will lower broker earnings 25%
November 17, 2004 by Canadian UnderwriterThe decision by the world’s largest brokers to discontinue using contingent commissions could chop upwards of 25% off their bottom line, according to a new study by investment firm WFG Capital Advisors.Many large brokers voluntarily chose to stop accepting contingent…
What’s new: In brief (November 17, 2004)
November 17, 2004 by Canadian UnderwriterU.S. brokers quickly spoke out against the testimony of New York Attorney General Eliot Spitzer to a Senate subcommittee looking at compensation issues Tuesday. Council of Insurance Agents and Brokers (CIAB) president Ken Crerar says, “we categorically challenge assertions that…
Spitzer blasts industry at Senate hearing
November 16, 2004 by Canadian UnderwriterNot unexpectedly, New York Attorney General Eliot Spitzer took several serious shots at the insurance industry in his testimony Tuesday to a Senate subcommittee looking into broker compensation issues.Spitzer told a subcommittee of the Senate Committee on Governmental Affairs that…
Two Zurich employees plead guilty to bid-rigging
November 16, 2004 by Canadian UnderwriterZurich Financial Services confirmed late Tuesday that two employees who had been suspended earlier have now pled guilty to criminal charges of bid-rigging.Zurich had suspended the two employees, who are underwriters at its Zurich North America Commercial excess casualty business,…