Risk

What’s new: In brief (November 17, 2004)

U.S. brokers quickly spoke out against the testimony of New York Attorney General Eliot Spitzer to a Senate subcommittee looking at compensation issues Tuesday. Council of Insurance Agents and Brokers (CIAB) president Ken Crerar says, “we categorically challenge assertions that fraud, bid rigging and kickbacks are commonplace in the insurance brokerage industry. It is wrong […]

By Canadian Underwriter | November 17, 2004

2 min read

Risk

S&P reports on “financial engineering” investigations

Following on media reports in the U.S. of an investigation into potential abuse of “financial engineering” products, Standard & Poor’s has issued a report which cites four companies who could be targets of such an investigation.Bermuda-based ACE Ltd. disclosed this week that it received subpoenas from the U.S. Securities Exchange Commission (SEC) and New York […]

By Canadian Underwriter | November 16, 2004

2 min read

Risk

RIMS would support ban on contingent commissions

Testifying before a Senate subcommittee on the issue of broker compensation, a representative of the world’s largest risk management organization says her group would support a ban on contingent commissions.The Risk & Insurance Management Society (RIMS), which represents commercial insurance buyers, has long advocated the need for disclusre of broker compensation agreements with insurers. Speaking […]

By Canadian Underwriter | November 16, 2004

2 min read

Risk

Peace Hills upgraded by A.M. Best

Alberta-based Peace Hills General Insurance Co. has been upgraded to “B” from “B-” with a stable outlook by A.M. Best.The rating agency says Peace Hills shows improved capitalization and strong profitability in the recent years, building on strong operations, management and reserving practices. The insurer’s risk-adjusted capitalization has improved on the back of rate increases […]

By Canadian Underwriter | November 15, 2004

1 min read

What’s new: In brief (November 14, 2004)

On the heels of the broker compensation probe by New York Attorney General Eliot Spitzer and the civil charges filed against Marsh, Zurich Financial Services says it has suspended two employees at its Zurich North America Commercial specialty business. In a statement, Zurich says the suspensions came out of an external review currently being conducted […]

1 min read

What’s new: In brief (November 11, 2004)

The U.S. Federal Reserve Board’s decision to raise the federal fund rate 25 basis points to 2.0% sets up the prospect for similar action by The Bank of Canada. While the Fed is expected to raise rates by 25 points in each of its next eight meetings, BoC is expected to raise rates twice more […]

2 min read

U.K. risk managers come out against contingent commissions

Risk managers in the U.K. are adamant that the current system of contingent commissions to broker needs to be abolished. In a survey by the Association of Insurance and Risk Managers (AIRMIC), 93% of corporate insurance buyers say contingent commissions should be banned or at least investigated by the U.K. Financial Services Authority (FSA). And […]

1 min read

FA calls on Nova Scotia government for rate filing action (November 09, 2004)

The Canadian insurance industry’s pool for high-risk auto business, the Facility Association (FA), is calling on Nova Scotia’s insurance rate filing board to act more promptly in approving more appropriate rates as the "market of last resort". Due to regulatory interference, the FA’s rates over recent years have become attractive relative to the standard auto […]

1 min read

Marsh retrenches 3,000 in response to Spitzer

Global brokers Marsh and McLennan Cos. Inc. plans on slashing 3,000 employees, equal to about 5% of its total workforce, in response to an investigation into the company by New York’s attorney general Elliot Spitzer regarding alleged business "bid rigging". The Marsh charges relate to a broader investigation undertaken by Spitzer of the insurance industry […]

1 min read

Regulatory Affairs Symposium: IBC seeking “a few good companies” for SABS pilot

The Insurance Bureau of Canada (IBC) is looking for insurers to participate in a pilot program which could be a first step to risk-based regulation of market conduct. Attendees of the IBC’s Regulatory Affairs Symposium learned Thursday that the IBC and the Financial Services Commission of Ontario (FSCO) are set to pilot a program for […]

3 min read