What’s New: In Brief (April 02, 2008)

Insurance Bureau of Canada (IBC) has issued warnings to Ontario and Atlantic policyholders of overland flooding due to spring thaw. IBC stresses preventative actions, because overland flooding is not covered by home insurance policies. Sewer back-up coverage is usually available as an add-on to policies, an IBC release says. Damages due to a roof collapse caused by an accumulation of snow and ice is covered by most comprehensive home insurance policies, it adds.To minimize the risk of flooding, IBC suggests the following: shovel snow away from the base of the house; check property for obstructions that could prevent melting snow from draining away from the house properly; and clear a path for water.

Aon Corporation has completed the sale of Combined Insurance Companies of America to the ACE Group of Companies for US$2.56 billion.Aon has also sold Sterling Life Insurance Companies to Munich Re for US$352 million.After-tax proceeds are approximately US$2.7 billion, and the company expects to record a pre-tax gain of approximately US$1.3 billion in 2008 Q2, a company release says.”With the completed sales of both Combined and Sterling, we have executed on our strategy to exit our more capital-intensive insurance underwriting businesses,” said Aon president and CEO Greg Case. “Our team is excited about the prospect of our increased focus on our risk advice and human capital consulting businesses