What’s new: In brief (January 10, 2005)

A.M. Best has affirmed the “A” (excellent) rating of The Guarantee Co. of North America, and the “A-” rating of its U.S. subsidiary, with a stable outlook. The ratings reflect excellent capitalization, strong operating results and a prominent market profile, partially offset by the competitive conditions of the Canadian market as it begins to soften.

Crawford Adjusters Canada Ltd. has made a series of organizational moves to better align staff with its two key markets insurers and corporate clients. Among the new roles are: John Smith as senior vice president responsible for insurer markets; Bill Johnstone as director, global technical services; Stephen Anderson as senior vice president responsible for corporate markets; Martin Pinney, vice president responsible for quality; Scott Sutherland as vice president information technology; Richard Racette, vice president of Quebec; Kerry Eaton as vice president of class action services.

A report by the U.S. Congressional Budget Office has come out against renewal of the Terrorism Risk Insurance Act (TRIA). In its report, the CBO speculates, “If the federal government continued to subsidize terrorism insurance, it would probably contribute to deferring the private-sector’s long-term adjustment to the increase in risk.” The study adds there is evidence the insurance industry has greater underwriting capacity to handle covering terrorism risks, and that letting the backstop expire would not hurt the economy, but just shift the burden for future losses. The study does not delve into the terrorism risk exclusions for which insurers have already received approval in several states should TRIA lapse.