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New legislation entitled “Increasing Insurance Coverage Options for Consumers Act of 2008” has been introduced into Congress and will be discussed today in a series of hearings on insurance regulatory reform before the House Financial Services Subcommittee on Capital Markets and Insurance. The bill, aiming to revamp the federal Liability Risk Retention Act (LRRA) of… Continue reading Legislation Allowing RRGs to Write More Coverage Introduced into Congress

New York-based Pfizer Inc., the world’s largest drugmaker, may find itself facing a class-action lawsuit levied by a number of health insurers charging that the company’s Warner-Lambert division improperly marketed the epilepsy drug Neurontin for unapproved uses, according to a U.S. district judge. The drug is sold generically under the name gabapentin by more than… Continue reading Drug Company May Be Facing Class Action Suit

According to an analysis released Tuesday by the Washington-based American Bankers Insurance Association. and Radnor, Pennsylvania-based consultant Michael White Associates, U.S. bank holding companies’ total insurance revenues increased to $43.7 billion in 2007, a 0.5% increase over 2006.    During 2007, 637 bank holding companies—68.1% of those reporting—earned some type of insurance-related revenue, compared with… Continue reading Bank ’07 Insurance Revenues Rise Slightly

Zurich Financial Services Group’s Schaumburg-based North American commercial property/casualty division announced that it will eliminate about 400 U.S. jobs in a move designed to cut costs.    The positions to be cut are primarily from the group that provides support services to the division and represent about 4 percent of the support staff, Zurich said.… Continue reading Zurich to Slash Jobs, Cut Costs

As people begin to look at what has caused the ongoing subprime mortgage crisis in the United States, they are also looking into the role of those at the corporate helm and their responsibility for the debacle, with the fallout possibly shocking the professional liability markets worldwide.     The global directors and officers market… Continue reading US Subprime Mess and the Worldwide Professional Liability Markets

Testimony today by a congressional panel is scheduled to take place to explore a plan proposed by Treasury Secretary Henry Paulson that would simplify industry regulation and eliminate most oversight by the 50 U.S. states.      According to the proposal to be evaluated by the House Financial Services committee’s insurance subcommittee, insurance companies would set… Continue reading Congressional Panel to Review Federal Oversight Plan of Insurers

According to the Mortgage Bankers Association (MBA), U.S. home loan applications climbed last week as lower mortgage rates spurred demand for refinancing and overshadowed a small drop in applications to buy houses.     The MBA’s seasonally adjusted mortgage application index rose 2.5 percent to 743.4 in the week ended April 11, the second weekly… Continue reading Mortgage Refinancing Up as Rates Lower

FGIC Corp., parent company of bond insurer Financial Guaranty Insurance Co., said it is in discussions with “potential investors and other parties regarding strategic alternatives,” including selling the company outright. It said it will make a decision within weeks. The company said the options it is exploring include founding a new triple-A rated guarantor “dedicated… Continue reading Bond Insurer FGIC Considering Selling Itself

According to Standard & Poor’s, the performance of government-sponsored enterprises (GSE), such as Fannie Mae and Freddie Mac, could have a direct impact on the national economy and, more importantly, U.S. credit standing. So-called GSEs enjoy implicit government guarantees and could cause the U.S. to lose its sterling triple-A rating if the government were forced… Continue reading S&P Report: U.S. Credit Could Be Negatively Affected by Fannie, Freddie

If the first quarter is any indicator of likely tornado activity for 2008, insurers may be headed for another long season of increased claims activity and high catastrophe losses. The number of tornadoes in first quarter 2008 surpassed the previous four-year average, but an even more troubling trend for the industry has emerged: Losses of… Continue reading A.M. Best Special Report: Tornado Losses Approach Those of Hurricanes