Author: Farkas Laura

American International Group Inc.’s (AIG) new chief executive officer, Robert Willumstad, said “there will be no sacred cows” in his company-wide review of the world’s biggest insurer. Willumstad, who replaced Martin Sullivan as CEO yesterday after record losses related to subprime loans, said he plans to examine all of AIG’s operations, which include offices in… Continue reading Newly Appointed AIG CEO Willumstad Says “No Sacred Cows” in Review Process

A report recently completed by catastrophe risk modeling firm AIR Worldwide Corporation estimates that during the past three years the insured value of properties in coastal areas of the United States continued to grow at a compound annual growth rate of just more than 7 percent. Despite the recent weakening of the real estate market… Continue reading Report: Total Insured Value of Properties in Hurricane-Prone States on Pace to Double in 10 Years

On Tuesday it was reported that Allstate Corp. has agreed to acquire a General Electric Co. unit whose operations include being one of the nation’s biggest providers of roadside assistance. Terms weren’t disclosed for the planned purchase of the Partnership Marketing Group unit of GE Money. The deal is set to close by month’s end… Continue reading Allstate to Buy GE Unit

Gov. Marc Racicot, president of the American Insurance Association, today reassured the residents of the Midwest region that the insurance industry is committed to helping them recover from the powerful storms and the deadly tornadoes that have torn through parts of Iowa and Illinois in recent days.     “Even as the after-effects of the… Continue reading AIA Reinforces Commitment to Help Midwest Hit by Storms

The record widespread flooding that the Midwest has been experiencing this past week has underscored the catastrophic damages that flooding can cause. Yet a survey conducted for the Insurance Information Institute (I.I.I.) reveals that only 17 percent of Americans have a flood insurance policy.    The number of Americans with a flood insurance policy is… Continue reading Recent Flooding in Midwest Highlights Lack of Coverage

According to an A.M. Best study, tornadoes and related weather events caused an average of $4.9 billion in property/casualty claims each year from 2001 to 2007. The costliest year was 2006, with more than $8 billion in insured damages.     The study foresees high tornado losses in 2008, based on first-quarter estimates, with about… Continue reading Tornadoes, Related Weather Events Cost P/C Industry an Average of $4.9B in Last Eight Years

Under a reinsurance agreement reached with HCC Insurance Holdings Inc, mortgage insurer MGIC Investment Corp. announced that it will receive up to $50 billion a year of coverage on newly written insurance policies. The agreement affects new insurance written annually between April 1, 2008 and Dec. 31, 2010 and includes two one-year extensions that may… Continue reading Mortgage Insurer MGIC Has New Reinsurance Deal with HCC

The office of Comptroller William Thompson of New York City stated on Friday that it has received more than $497 million of claims for personal injury, property damage and wrongful death due to a construction crane collapse on Manhattan’s East Side on March 15.    The 90-day filing deadline ended on Friday, and out of… Continue reading NYC Receives More than $497M in Claims from March Crane Accident

On Sunday record flooding in parts of the U.S. Midwest caused fifteen campus buildings to be damaged, including the Iowa Museum of Art, at the University of Iowa campus in Iowa City.    “We did our best with the first 15 [to save paintings, books and documents] in many cases, but it wasn’t quite enough,”… Continue reading Iowa is Assessing Flood Damage, Losses in the Billions

A report recently completed by catastrophe risk modeling firm AIR Worldwide Corporation estimates that during the past three years the insured value of properties in coastal areas of the United States continued to grow at a compound annual growth rate of just more than 7 percent. Despite the recent weakening of the real estate market… Continue reading Report: Total Insured Value of Properties in Hurricane Prone States on Pace to Double in 10 Years