What’s new: In brief (June 28, 2004)

Fairfax’s Crum & Forster Holdings has named Nikolas Antonopoulos as chair of the board of its insurance operating subsidiaries. He was also recently named CEO of these operations, succeeding Bruce Esselborn, who has retired. Taking over Antonopoulos’ former role as president is Joseph Braunstein. Prem Watsa remains chair of Crum & Forster Holdings.

The National Association of Insurance Commissioners (NAIC) is urging the U.S. Congress to extend the Terrorism Risk Insurance Act (TRIA) for two more years beyond its December 31, 2005 sunset. “We simply don’t believe that the marketplace is currently prepared to take on the entire risk of providing coverage for major acts of terrorism,” says NAIC president Ernst Csiszar. “A short-term, two-year extension of the TRIA program should give the industry the appropriate financial back up it needs in order to avoid negative consequences and instability.” The NAIC feels that the major lines affected by a TRIA expiration would be workers’ compensation and group life.

California Insurance Commissioner John Garamendi has lost his battle to prohibit insurers from refusing to issue or renew a homeowners’ policy after a natural disaster such as last year’s California wildfires. The state assembly’s insurance committee failed to pass Senate Bill 1474, but Garamendi is not taking the news lying down. In a press release he states he and Senator Martha Escutia will reintroduce the legislation, which is part of Garamendi’s “Homeowners’ Bill of Rights”. He says the key points of the bill will be put into existing legislation and taken directly to the House and Senate for voting.