AIG bailout was the right move: Buffett
The federal government had no choice but to intervene to save American International Group Inc., Berkshire Hathaway Inc. Chairman Warren Buffett said during a televised interview on Monday morning.
Speaking on CNBC, Mr. Buffett said the U.S. banking system "overall, is too big to fail," according to a transcript of the interview released by CNBC. He added that "we have quasi-banks that have very large liabilities and where they would impact the system dramatically if left alone. It may be unfortunate we have them, it may be that we need corrective legislation so it doesn't come up again, but we have to deal with the situation we have now. And frankly, that was recognized in AIG." (Read more!)
Survey: Americans' low insurance IQ hurts finances
Americans are lacking in basic knowledge about insurance that might help their finances during the recession, according to a new survey.
In fact, we know a lot less about insurance than we think we know, according to the National Association of Insurance Commissioners, which sponsored the poll. That disconnect can end up costing them money or gaps in their long-term insurance protection, says the NAIC, an organization of state insurance regulators representing consumer and industry needs. (Read more!)
Market Barometer Report: Major Insurers Lead Market Turn
The composite rate for property and casualty insurance was minus 8% for February 2009 as compared to minus 14% in February 2008. Richard Kerr, Founder and CEO of MarketScout outlined the February results, "A slow moderation in rate decreases continues as insurers evaluate their 2008 results and the impact of a slowing economy in 2009.
Rate increases are merited based upon 2008 underwriting results and the reduction in premium income due to lower exposures such as payrolls and gross receipts. Four large insurance companies are drawing a line in the sand and demanding rate stabilization. If it sticks, we will see a further flattening of reductions very soon." (Read more!)
States Give Regulatory Relief to Insurers
State regulators trying to help life insurance companies cope with the financial crisis have granted $6 billion of relief from requirements meant to ensure financial stability, according to data released yesterday.
The top recipients were Allstate Life Insurance Co. with $1.4 billion; Jackson National Life Insurance Co. with $825.6 million and Hartford Life Insurance Co. with $655.2 million, according to the National Association of Insurance Commissioners. (Read more!)
Oklahoma Senate backs insurance analysis
A task force would review coverage requirements placed on insurance companies in Oklahoma under a measure passed by the Senate on Monday.
Senate Bill 822 would create a panel to review the 36 mandates that require health insurance companies to pay for the treatment of certain ailments. The task force, made up of members of the insurance community, health care providers and private citizens, would evaluate existing mandates and make recommendations on which should be revised or eliminated, according to the bill filed by Sen. Cliff Branan, R-Oklahoma City. (Read more!)
Police arrest insurance agent
Authorities arrested a St. Martinville insurance agent Monday on charges that include felony theft, forgery, identity theft and the alleged misappropriation of insurance premiums.
The Louisiana State Police Insurance Fraud and Auto Theft Unit arrested Wendy Dore, 37, on one count of felony theft, one count of unfair trade practices, two counts of forgery and two counts of identity theft. (Read more!)
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Montana approves captive tax break
Small captive insurance companies set up in Montana and subject to the state's $5,000 minimum premium tax would have the assessment prorated during the year the captive was licensed under legislation that received final approval Monday.
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Bowring Marsh creates liability facility
Bowring Marsh, Marsh Inc.'s specialty international placement broker, has created an excess liability facility with up to $100 million in syndicated capacity for all industry classes.
Bowring Marsh Excess, or BMEx, was developed in response to "the recent insurance and financial markets turmoil" and at the request of clients, Marianne Romeo, a managing director at Bowring Marsh, said in a statement released Monday.
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