What’s new: In brief (March 23, 2005)

Please note: due to the Easter holiday weekend, Canadian Underwriter’s Breaking News will not be published again until Tuesday, March 29.

Marsh co-president Peter F. Garvey has resigned “for personal reasons”, the company announced Wednesday. Garvey had been with Marsh & McLennan’s risk and insurance services subsidiary for 25 years. Fellow co-president William A. Malloy will become president, while executive vice president Philip V. Moyles Jr. becomes head of the broker’s North American region along with his existing role as head of global client development.

U.S. insurers was to see the Florida legislature establish an annual deductible and lower the threshold for losses under the Florida Hurricane Catastrophe Fund (FHCF). The Property Casualty Insurers Association of America (PCI) says these reforms are needed to ensure stability in the residential property market following last year’s four hurricanes and reduce financial pressure on the government-run Citizens Property Insurance Co. (which covers high-risk properties unable to get coverage in the voluntary market). As a result of last year’s multi-event hurricane season, Citizens is projecting a deficit of US$400 million, while the per-event deductible means insurers will recoup only a fraction of the expected US$22 billion total seasonal loss from the cat fund.

The CIP “Pub Night” is set for next Thursday, March 31, at Montana’s Mustang Lounge in Toronto. The evening celebrates new 2004 CIP graduates, who can register to attend for free the price for all others is $30 which includes drink tickets and hors d’oeuvres. For more information contact Diana Hancock at 416-865-2719 or email: dhancock@iic-iac.org.