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Gov. Marc Racicot, president of the American Insurance Association (AIA), issued a statement following the release of a study by the Board of Governor’s of the Federal Reserve System entitled, “Report to the Congress on Credit Scoring and Its Effects on the Availability and Affordability of Credit.” The Federal Reserve’s study was mandated by the… Continue reading Report Reiterates Correlation Between Credit Scoring and Risk

The Chubb Group of Insurance Companies says it has assembled an environmentally friendly energy team of underwriters and loss control specialists tasked with developing environmentally friendly energies, products and technologies.    The team will focus on exploring and developing core commercial insurance products and services geared toward customers that operate within this sector.    For… Continue reading Going Green: Chubb Team Developing Renewable Energy Sector

Watching in alarm as the Dow Jones Industrial Average plummeted more than 200 points yesterday, investors’ uncertainties concerning basic economic problems, the ongoing subprime market issues as well as the volatile nature inherent in equities are playing out before their eyes.    “The market is very, very sensitive at this point, and any news about… Continue reading More Reaction to Dow’s Triple-Digit Dip

Insurance-related questions about Hurricane Flossie, a Category 2 storm that forecasters believe could hit Hawaii’s Big Island, or the 5.3 temblor that struck 25 miles south of Hilo, may be directed to the Insurance Information Institute (I.I.I.).    The last major hurricane to strike Hawaii was in 1992 when Hurricane Iniki, the 13th most costly… Continue reading Hurricane Followed by Earthquake Makes for Double Trouble in Hawaii

New York-based C.V. Starr & Co. has filed a petition with the Securities and Exchange Commission stating that PricewaterhouseCoopers L.L.P. (PwC), the longstanding outside auditor for American International Group Inc., should be banned because of irreconcilable conflicts of interest. The petition is the latest move in a bitter feud that has erupted between AIG and… Continue reading Auditor Change Sought at AIG by C.V. Starr

According to Australia’s Rams Home Loans Group Ltd., “The U.S. has experienced unprecedented disruptions in recent weeks, which has resulted in material increases in spreads and shortages in liquidity.”    Rams’ announcement that the fluctuation in global debt markets may cut profit sparked a 19 percent drop in shares, making it Australia’s worst-performing initial public… Continue reading ‘Round-the-World Reaction to U.S. Subprime Woes

In a survey that offered more evidence of increasing problems in the subprime mortgage market, the Federal Reserve announced more than half of banks have tightened their lending standards when it comes to consumers with shaky credit scores. Of the 16 banks surveyed that said there were still in the subprime market, nine of them… Continue reading Lending Standards Tightening, Says Federal Reserve

The world’s largest insurance company, American International Group, told investors that housing market values would have to decline levels not seen since the Great Depression before the insurer would be harmed by its exposure to the residential mortgage market. AIG’s exposure to subprime loans (those extended to consumers with less than stellar credit) exists on… Continue reading AIG Seeks to Reassure Investors About its Exposure in Subprime Market

According to Citigroup analyst Colin Devine, among life insurance companies, Prudential Financial Inc. has the riskiest investment portfolio, including subprime exposure, and MetLife Inc. and Genworth Financial Inc. also deserve close attention. Devine defined high risk as below investment grade bonds, equities, real estate and other partnerships and joint ventures.    Says Devine, at 13.8… Continue reading Prudential’s Subprime Exposure Warrants Watch

Despite the crisis under way in the subprime mortgage market, spokespersons for insurance broker Aon Corp. says the cost of corporate board insurance is likely to continue declining. According to a survey by the broker, the average price in the second quarter for all sectors was down 18 percent from last year. While mortgage lenders… Continue reading Subprime Market Woes Don’t Upset Board Insurance Market, Says Insurer