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On Wednesday the Senate overwhelmingly rejected to expand the federal flood insurance program to also cover windstorm damage.       Lawmakers from Louisiana and Mississippi cited problems that occurred after Hurricane Katrina and other big 2005 storms when private insurers covering wind damage claimed that destruction to property resulted from flooding, thus shifting the burden… Continue reading Senate Rejects Adding Wind Coverage to Federal Program

Earlier today, Keith Hennessey, director of the White House National Economic Council and one of the administration’s top economic advisers, stated that differences between the White House and Democrats in Congress over proposed housing-market legislation aren’t “insurmountable”.    The comments by Mr. Hennessey seem to leave room for an eventual deal with lawmakers, despite a… Continue reading Dems and Republicans May be Able to Strike Housing-Market Legislation Deal

First-quarter profit rose 6.6 percent at Industrial Alliance Insurance and Financial Services Inc as lower expenses and tax gains made up for a drop in premiums and deposits, according to the insurer.     Industrial Alliance, which sells life insurance and manages mutual funds, said net income available to common shareholders was C$61.7 million, or… Continue reading Profit Up, Revenue Down for Industrial Alliance

The world’s second-biggest reinsurer, Munich Re, hit its goal goal of making up to 3.4 billion euros ($5.2 billion) in net profit despite a 19 percent decline in the first quarter, missing analysts’ estimates as falling equity prices and increasing price pressure.    Munich Re’s shares fell after release of the quarterly figures. Traders focused… Continue reading Munich Re’s Profits Down 19% for First Quarter

A national survey by EMPLOYERS, a leading Workers Compensation carrier, indicates that many small business decision-makers when purchasing a Workers Comp policy don’t fully understand how the coverage works, what they get for their premium payments, or why they continue coverage with a particular insurer.       EMPLOYERS’ survey found that a significant 14% of… Continue reading Survey Shows Small Businesses Buy Workers Comp without Understanding Ins and Out of Coverage

Gov. Marc Racicot, president of the American Insurance Association (AIA), today issued a statement regarding the findings of a Government Accountability Office (GAO) study which found that adding wind coverage to the National Flood Insurance Program (NFIP) would be challenging. Following is his statement:     “We agree with the GAO’s findings that dramatically expanding… Continue reading AIA Sees Eye-to-Eye with GAO Study on Impact of Adding Wind Coverage to NFIP

One of the world’s largest insurance brokerages, Marsh & McLennan Cos posted a first-quarter loss on Wednesday. The company’s profits were hit by a $425 million write-down of goodwill for its Kroll risk consulting and technology unit.     The net loss totaled $210 million, or 40 cents per share, and compared with a profit… Continue reading Marsh & McLennan Posts First-Quarter Loss on Kroll Write-down

The National Association of Realtors reported today that pending U.S. home sales dropped to a new low in March, signaling the housing slump has yet to bottom out even as the spring selling season gets under way.     The industry group’s seasonally adjusted index of pending sales for existing homes fell to 83.0 from… Continue reading Housing Market Yet to Bottom Out

Following is a summary of the GAO Analysis on combining a federal flood and wind insurance program:     Disputes between policyholders and insurers after the 2005 hurricanes highlight the challenges of determining the cause and extent of damages when properties are subject to both high winds and flooding. Additionally, insurers want to reduce their… Continue reading GAO Releases Analysis of Adding Wind Coverage to Federal Flood Program

Boston-based insurer Liberty Mutual Group reported profits of $360 million for the first quarter of 2008, a 3% increase compared with the same period last year. The carrier also reported net written premiums of $6.25 billion for the 2008 first quarter, a 10% increase from the same period last year. Liberty Mutual paid out $583… Continue reading Liberty Mutual Posts First-Quarter Profits