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In related Fed news, in response to sharp criticism that central bank has sent confusing messages about interest rates in recent months, Federal Reserve Chairman Ben Bernanke announced plans to speak more forcefully and more frequently about the outlook for the nation’s economy. Illustrating the commitment to greater communication, Bernanke indicated in a speech last… Continue reading Fed to Overhaul Communications Stance

Amid speculation that for the first time in three years U.S. interest rates will fall below those of the 15 nations that share the euro, the dollar fell to a seven-week low against the euro. The battered dollar endured three weeks of extended declines while Federal Reserve Chairman Ben S. Bernanke and other Fed officials… Continue reading Dollar Declines to Seven-week Low Against Euro

Federal Reserve officials, including Chairman Ben Bernanke, are signaling a more aggressive response to the increasing risk of recession. Bernanke is slated to testify before Congress on January 17, two days following a government report that economists predict will show retail sales stalled last month after a gain of 1.2 percent in November. The Fed… Continue reading Lagging Expansion Gets Greater Fed Response

The National Association of Mutual Insurance Companies (NAMIC) issued the following statement in response to allegations by the Consumer Federation of America regarding record profit levels among insurers. The comments may be attributed to Carl Parks, NAMIC’s senior vice president for government affairs.    “Once again, consumers can rest easier knowing their insurance companies are… Continue reading NAMIC Responds to Consumer Group Allegations Against P/C Carriers

The defense representing two Marsh insurance brokers accused of fraud and grand larceny by steering clients to insurers for kickbacks will begin presenting its case on Monday.     The non-jury trial began last April and is before New York Supreme Court Judge James A. Yates. Prrosecutors have portrayed the defendants William Gilman, former executive… Continue reading Defense for NY Insurance Broker Trial Due to Present Case

On Thursday Florida lawmakers issued subpoenas to property insurers in an investigation as to why home insurance rates have not decreased a year after the state increased its hurricane insurance pool to at least $32 billion. “Insurance industry representatives gave hours of testimony telling us that the price and scarcity of reinsurance was the reason… Continue reading FL Issues Subpoenas to Property Insurers Over Rates

According to a New York Times report, the third- largest U.S. securities firm, Merrill Lynch & Co, may write down $15 billion related to U.S. mortgage losses, almost twice its original forecast. Analysts had estimated that Merrill Lynch would announce a markdown of about $12 billion when it reports fourth-quarter earnings next week, adding to… Continue reading Merrill Lynch May Take $15B in US Mortgage Losses

Richard Napier, former senior vice president of General Re Corp., outlined for a jury yesterday how he and other company officials developed an allegedly sham reinsurance transaction with American International Group Inc. to improperly boost reserves by $500 million in 2000 and 2001. Prosecutors say this misled investors about the amount of losses that the… Continue reading Former Gen Re Exec Testifies in Trial

A recent survey finds that carriers are seeking underwriting automation and to ease their interactions with agents. Lexington, Mass.-based underwriting management system provider FirstBest Systems Inc. commissioned Sunnyvale, Calif.-based independent research firm, The Phelon Group, to survey 300 insurance carriers ranging from $200 million to $1 billion in premiums written. More than half the respondents… Continue reading Study Reveals Carriers Underwriting Concerns

Catastrophe risk modeling firm AIR Worldwide estimates insured losses from the recent west coast winter storm could reach as high as $600 Million, with the vast majority of those losses in California. The estimate reflects losses to property, contents, and direct business interruption and additional living expenses for residential, mobile home, commercial, and auto exposures.… Continue reading West Coast Storm Estimates at $600M Says AIR Worldwide