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For a sixth consecutive month U.S. employers cut jobs in June, with soaring fuel prices and a slowing economy forcing companies to reduce costs.    According to the Labor Department, payrolls fell by 62,000, close to economists’ median forecast, after a 62,000 drop in May that was greater than initially reported. The jobless rate remained… Continue reading June Sees 62,000 Fewer Jobs, Unemployment Rate Remains Steady

New York Governor David Paterson signed the legislation that restores flex rating to automobile insurers and makes the New York FAIR Plan and Property Insurance Underwriting Association permanent.     Insurance companies will be able to increase or decrease premiums by up to 5% annually without prior regulatory approval, under S-8624, which takes effect Jan.… Continue reading New York Governor Signs Flex-Rating Plan, Coastal Insurance Bill

Today U.S. Treasury Secretary Henry Paulson said that the United States must strengthen its process for regulators to unwind failing investment banks without threatening the stability of the financial system.    Paulson said his first priority was to maintain market stability amid the current turmoil, but he wants to move quickly to address regulatory deficiencies… Continue reading Paulson: Additional, Stronger Regulation Needed to Handle a Company’s Financial Failure

U.S. property insurers paid out more than $5 billion so far in second-quarter catastrophe-related claims, reflecting close to three-quarters of all catastrophe claims during 2007 — and could push the industry to an underwriting loss. The claims are occurring even as carriers continue to decrease premium rates, giving them less resources for paying the claims.… Continue reading Insurers Hit by $5B in Catastrophe Losses in ’08 So Far

Former American International Group Inc. (AIG) director Eli Broad, whose letters to the company preceded the departure of its chief executive officer, said the world’s largest insurer will bring in a “new team” to manage finances.    AIG, which is looking for a chief financial officer after write-downs led to quarterly losses totaling $13 billion,… Continue reading AIG to Bring In New Finance Team, Says Shareholder Eli Broad

The former chief executive of American International Group (AIG), Martin J. Sullivan, received a $47 million severance package from the world’s largest insurer.     Sullivan, who left his position in mid-June after two quarters of record losses at AIG and whose resignation took place on Tuesday, will receive severance of $15 million, and a… Continue reading Former AIG CEO Sullivan Gets $47M Severance Package

Whether rising sea temperatures will cause more hurricanes to hit U.S. coastlines or not is still questionable. But some insurance companies are going ahead and raising premiums based on assumptions that they will. Other carriers are withdrawing from coastal communities altogether. According to the Insurance Information Institute, costs for homeowners insurance along the East and… Continue reading Insurers Increasing Premiums in Coastal Areas Based on Catastrophe Loss Assumptions

The New York State Superintendent of Insurance and Attorney General have announced they will hold joint public hearings on disclosure of producer compensation and on contingent commissions throughout the state. Three public hearings are scheduled for the following dates: July 14 in Buffalo; July 23 in Albany; and July 25 in New York City.  … Continue reading New York Insurance Department and AG announce compensation/disclosure hearings; PIA to testify

The workers compensation market in West Virginia officially opened up to private carriers today, according to the American Insurance Association (AIA), which applauded the efforts of Gov. Manchin and the West Virginia Legislature for delivering on their promise of “getting the state out of the workers compensation business” by enacting the provisions found in S.B.… Continue reading AIA Supports West VA’s Privatization of Workers Comp