What’s new: In brief (January 30, 2005)

Stephen Mallory, former managing director of Marsh Canada, has been named president and CEO of Hub International Ontario Ltd. Mallory succeeds Nelson Tilander, who although leaving the CEOs role after six years for an indefinite medical leave, will remain as chair of the board. Mallory has more than 23 years of industry experience, having served Marsh and also Aon Reed Stenhouse.

U.S. insurer groups are up in arms over a study from the Consumer Federation of America (CFA) which suggests contingent commissions cause brokers to place business with higher-priced insurers. The Property-Casualty Insurers Association of America (PCI) calls the CFA’s allegations “ridiculous” and says it “makes a quantum leap” in suggesting contingent commissions are the reason brokers place coverage with higher-priced insurers. Specifically, PCI criticizes the study for not being based on buying or sales data, but merely on regulatory filings.

U.S. manufacturer Halliburton says it has completed funding for its asbestos & silica claims settlement, including collecting more than US$1 billion in insurance. Subsidiaries of the Houston-based corporation were forced into Chapter 11 bankruptcy as a result of claims from former employees that they had been made sick by exposure to asbestos and silica while working for Halliburton. Halliburton says it has now paid the final installment of the US$2.775 billion fund for current asbestos and silica claims. As well, it has issued almost 60 million common shares to fund potential future asbestos claims.