News
S&P reports on “financial engineering” investigations
November 16, 2004 by Canadian UnderwriterFollowing on media reports in the U.S. of an investigation into potential abuse of “financial engineering” products, Standard & Poor’s has issued a report which cites four companies who could be targets of such an investigation.Bermuda-based ACE Ltd. disclosed this…
RIMS would support ban on contingent commissions
November 16, 2004 by Canadian UnderwriterTestifying before a Senate subcommittee on the issue of broker compensation, a representative of the world’s largest risk management organization says her group would support a ban on contingent commissions.The Risk & Insurance Management Society (RIMS), which represents commercial insurance…
International group releases results of seat and head restraint study
November 15, 2004 by Canadian UnderwriterThe Insurance Corporation of B.C. (ICBC) has just released Canadian results as part of an international study of seat and head restraints which shows that too many vehicles are rated poorly when it comes to this vital safety equipment. ICBC,…
U.S. brokers tout need for strong relationship with insurers to Senate hearing
November 15, 2004 by Canadian UnderwriterWith testimony underway in a U.S. Senate subcommittee hearing into broker compensation practices, one broker representative says the notion that insurers and brokers should have an “adversarial” relationship in order to best serve clients is “misguided”.Former Council of Insurance Agents…
Peace Hills upgraded by A.M. Best
November 15, 2004 by Canadian UnderwriterAlberta-based Peace Hills General Insurance Co. has been upgraded to “B” from “B-” with a stable outlook by A.M. Best.The rating agency says Peace Hills shows improved capitalization and strong profitability in the recent years, building on strong operations, management…
What’s new: In brief (November 15, 2004)
November 15, 2004 by Canadian UnderwriterStandard & Poor’s says it will take no rating action on the three life insurers mentioned in the civil charges filed by New York Attorney General Eliot Spitzer against California intermediary Universal Life Resources. The three insurers MetLife, Prudential and…
Ontario insurers, brokers to beef up disclosure rules but keep contingent commissions
November 14, 2004 by Canadian UnderwriterIn a press conference today, Ontario’s p&c insurers and brokers announced a new system to ensure better communication and disclosure to consumers about commissions and other practices, while maintaining the practice of contingent commissions.In response to the investigation of broker…
Spitzer files suit against U.S. benefits insurer
November 14, 2004 by Canadian UnderwriterNew York Attorney General Eliot Spitzer, in his continuing probe of broker commissions, has filed a civil suit against San Diego-based benefits broker Universal Life Resources Inc. and its CEO Douglas Cox.The suit alleges the firm, which specializes in life…
RSA Canadian ops see results improve in third quarter
November 14, 2004 by Canadian UnderwriterThe Canadian operation of U.K.-based Royal & SunAlliance has produced strong results for the third quarter ending September 30, 2004, with combined ratio improving to 96.3% from 99.0% a year earlier.Overall, the Canadian operation produced an underwriting profit of $10…
What’s new: In brief (November 14, 2004)
November 14, 2004 by Canadian UnderwriterOn the heels of the broker compensation probe by New York Attorney General Eliot Spitzer and the civil charges filed against Marsh, Zurich Financial Services says it has suspended two employees at its Zurich North America Commercial specialty business. In…
Industry to respond to disclosure issues
November 11, 2004 by Canadian UnderwriterIn a press conference set for Friday, the Canadian p&c insurance industry is set to announce its plans for improving disclosure and transparency with consumers.In a joint event, representatives of the Insurance Bureau of Canada (IBC), Insurance Brokers Association of…
Optimum General records sixth successive quarter of profit
November 11, 2004 by Canadian UnderwriterContinuing its financial turnaround, Montreal-based Optimum General Inc. (TSX: OGI.SV.A) is reporting its sixth consecutive quarter of profit for the third quarter ending September 30, 2004.The insurer produced net income of $742,000 ($0.06 per share) for the quarter, up from…