January 2009 News

Geithner urged to form insurance oversight office
A bipartisan group of House Financial Services Committee members is urging Treasury Secretary-designate Timothy F. Geithner to establish an office within the Treasury Department to "fill a void on insurance oversight and expertise at the federal level," according to a letter sent Friday to Mr. Geithner. (Read more!)

What if Uncle Sam Takes Over Your Bank?
Could your bank turn into the Bank of the U.S.A.?

The latest wave of banking problems has investors worried that the government will nationalize deeply wounded institutions, such as Bank of America Corp. and Citigroup Inc.

Such a dramatic step could make it easier for some bank customers to get a loan. And customers with deposits will still be protected by federal insurance, just as they are today. Still, consumers could see more branch closings, more standardization across bank products and a deterioration in customer service. Common and preferred shareholders, meanwhile, will likely get wiped out in a bank nationalization. (Read more!)

Soft Market Conditions Persisted Throughout 2008 But Pace of Reductions Slowed in the Fourth Quarter
According to Richard Kerr, CEO of MarketScout, “At the end of every year we calculate the rate adequacy of the property and casualty industry. According to our calculations, the property and casualty rate index fell below ‘rate adequacy’ in the fourth quarter of 2008.

Therefore, we believe this signifies the beginning of the end of the current soft market. It may take as much as a year for rates to actually start increasing but the soft market trend has turned.” (Read more!)

Report: Drivers Increasingly Eschewing Insurance
A new study from Insurance Research Council says the numbers of drivers opting to operate without auto insurance may spike as the economy worsens.

According to the study, which used data collected from nine insurers representing roughly 50% of the U.S. auto insurance market—approximately one in six drivers across the United States—may be driving uninsured by 2010. This projected upswing will reverse a trend, as the percentage of uninsured motorists decreased nationally from 14.9% in 2003 to 13.8% in 2007. (Read more!)

Liberty Mutual Sells Off Mid-Market Direct Sale Renewals
Boston-based insurer Liberty Mutual has sold off its middle market direct sale renewal business to three major insurance brokers and at the same time retired the Wausau brand, creating a new commercial business unit to work with independent agents.

Full financial terms were not detailed, but one of the brokers, Arthur J. Gallagher, said its portion of the deal could eventually total $164 million. (Read more!)

Market Updates

Live Asset Insurance Program
The website is www.liveassetinsurance.com and it is turning on its head the idea that trees are “uninsurable”. Most Agents have had the discomfort of explaining that there is no coverage to replace a tree blown over in a windstorm if it did no damage to covered property. Having experienced this was part of the genesis of our new product that is taking the agents/brokers by storm, (no pun intended). Click Here for More Information

Abacus Insurance Brokers Offers Online Builder's Risk Program
Abacus Insurance Brokers, Inc., a Los Angeles-based program manager that distributes specialty insurance products online through www.abacus.net, has launched an online builder's risk program.
Click Here for More Information