News
Fitch still unimpressed with Fairfax
November 11, 2004 by Canadian UnderwriterRating agency Fitch, in a lengthy press release, says it will maintain its negative outlook on financial services giant Fairfax Financial Holdings Ltd. irregardless of the company’s third quarter filings.Fitch had earlier placed the negative watch on the company citing,…
What’s new: In brief (November 11, 2004)
November 11, 2004 by Canadian UnderwriterThe U.S. Federal Reserve Board’s decision to raise the federal fund rate 25 basis points to 2.0% sets up the prospect for similar action by The Bank of Canada. While the Fed is expected to raise rates by 25 points…
Ontario NDP, CAC say Sorbara in conflict over broker commissions
November 10, 2004 by Canadian UnderwriterThe Consumers Association of Canada (CAC) wants to see Ontario Finance Minister Greg Sorbara to “step aside as regulator of the insurance industry”, saying he is in conflict over the issue of broker commissions.The call comes after New Democrat MPP…
U.K. risk managers come out against contingent commissions
November 10, 2004 by Canadian UnderwriterRisk managers in the U.K. are adamant that the current system of contingent commissions to broker needs to be abolished. In a survey by the Association of Insurance and Risk Managers (AIRMIC), 93% of corporate insurance buyers say contingent commissions…
U.S. broker group proposes principles for regulating broker commissions
November 10, 2004 by Canadian UnderwriterIn a letter to the National Association of Insurance Commissioners (NAIC), U.S. commercial brokers say a new system of regulating commission practices should include transparency, but also recognize the legitimacy of contingent commissions.The letter, sent to NAIC president Diane Koken…
What’s new: In brief (November 10, 2004)
November 10, 2004 by Canadian UnderwriterLloyd’s plan to issue 500 million of subordinated debt has been oversubscribed several times over, and the 300-year-old market announced terms of the offering Wednesday. An application to the London Stock Exchange is for a sterling tranche of 300 million…
FA calls on Nova Scotia government for rate filing action (November 09, 2004)
November 9, 2004 by Canadian UnderwriterThe Canadian insurance industry’s pool for high-risk auto business, the Facility Association (FA), is calling on Nova Scotia’s insurance rate filing board to act more promptly in approving more appropriate rates as the "market of last resort". Due to regulatory…
A.M. Best places rating of L’Unique on review
November 9, 2004 by Canadian UnderwriterRating agency A.M. Best has placed Quebec-based L’Uique Compagnie D’Assurances Generales’ financial strength rating of "B++ under review with "developing implications following the announcement that the company will be acquired by La capitale, Compagnie D’Assurance Generale. The rating agency says…
Marsh retrenches 3,000 in response to Spitzer
November 9, 2004 by Canadian UnderwriterGlobal brokers Marsh and McLennan Cos. Inc. plans on slashing 3,000 employees, equal to about 5% of its total workforce, in response to an investigation into the company by New York’s attorney general Elliot Spitzer regarding alleged business "bid rigging".…
What’s new: In brief (November 09, 2004)
November 9, 2004 by Canadian UnderwriterNext week CGI will host its annual “Client Conference” in Niagara Falls, Ontario. The event, set for November 17 to 19, is built around the theme “Ideas into Action”, and will encourage discussion of how the industry can improve its…
Court awards $280,500 to ICBC in auto theft case
November 8, 2004 by Canadian UnderwriterA civil action lawsuit brought by the Insurance Corp. of British Columbia (ICBC) against several parties involved in an auto theft ring has resulted in a jury awarding the crown insurer a total of $280,500 in damages. ICBC says it…
What’s new: In brief (November 08, 2004)
November 8, 2004 by Canadian UnderwriterSovereign General Insurance Co. has named The Children’s Wish Foundation of Canada as its “charity of choice” for the next three years. With the commitment, the insurer will provide at least $600,000 in funding to the Foundation. The local offices…