What’s new: In brief (April 10, 2005)

Finite reinsurer Inter-Ocean has gone into voluntary run-off. Inter-Ocean, based in Bermuda and Ireland, is owned by 11 international insurance and reinsurance companies. The company itself retains no net underwriting risk, but received a fee or margin on each contract it assumes, with shareholders assuming the risk. As a result of the run-off, A.M. Best has downgraded and withdrawn the company’s ratings. The use of finite reinsurance and accounting practices surrounding the non-traditional product have become the target of investigations starting in the U.S. but now undertaken in several countries.

Tropical Storm Risk (TSR) is predicting an active Atlantic hurricane season for 2005. There is an 80% chance the season will be above-average, with the expectation of 13.9 tropical storms, 7.8 hurricanes and 3.6 intense hurricanes. Overall storm activity is predicted to be 160% of average, say researchers Dr. Mark Saunders and Adam Lea of Benfield Hazard Research Centre at University College London, UK.

This year’s Women in Insurance Cancer Crusade (WICC) Dinner, held last Thursday at Toronto’s Westin Harbor Castle, raised $150,000 for cancer research and education. Under the theme of “Live, Love and Laugh”, the event featured a silent auction, raffle and hilarious performance by The Canadian Comedy Witness Protection Program. Also, awards were presented to “Golden Flame” supporters ACE INA Insurance, Economical Insurance Group, Fred De Francesco and Slingshot Communications Inc. This year’s winner of the Lew Dunn Memorial Award was Crawford Adjusters Canada, recognized for its “Crawford Cares” program.