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…
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…
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…
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…
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…
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…
Reinsurance Strategies 2005: Stability?
November 1, 2004 Sean van Zyl, EditorFaced with the alluring prospect of a second year of acceptable profitability, the tension within the offices of Canadian licensed reinsurers is easing – but not underwriting discipline, at least according to the senior management responses in CU’s annual “reinsurance strategic outlook” for 2005. While rates and terms for next year’s reinsurance treaty renewals will likely remain stable, at least for most classes of business, reinsurer CEOs remain wary of the mistakes of the past, and point to the volatility of global catastrophe losses over the past year as well as uncertainty regarding the long-term effectiveness of the provincial auto insurance reforms.
Captives Go Mainstream
November 1, 2004 Vikki SpencerThe once exotic world of captives is opening up for risk managers as they seek out solutions to a challenging insurance market. The traditional offshore domiciles are experiencing growth in captive numbers and premiums written, while new domiciles are being created through captive legislation, specifically in the U.S. But, experts say captives are more than just a passing solution to a temporary lack of available, affordable commercial insurance – they are a long-term investment requiring focus and commitment.
Contingent Commissions: Letting the Truth Get in the Way
November 1, 2004 W. Epaminondas Adrastus Blab IILet’s get one thing straight right off the top: If what he alleges is true, Eliot Ness – I mean Spitzer – is right on the money with some of the accusations he has made against a few of the…
RIMS Canada 2004: Raising Standards
November 1, 2004 Vikki SpencerThe professional bar has clearly been raised for risk managers in the last three years. Not only have they faced an intense period of rising insurance rates and coverage restrictions, but a host of new risks have dominated the landscape, most notably around corporate governance. But, risk managers are also upping the ante for their industry partners, lifting their voices to demand higher levels of service from insurers and brokers.