Agencies seek comment on three notices..

The office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) are seeking comment on three notices of proposed rulemaking (NPRs) that would revise and replace the agencies' current capital rules. The agencies also announced the finalization of the market risk capital rule that was proposed in 2011. Read more...

(Ref: FDIC; Press Release June 12, 2012) 

UK Insurers Face Floods Losses; May Raise Premiums...

British insurers face big claims for flooding after the heavy rainfalls across the country this month, making it harder for them to hit profit targets and potentially forcing them to raise premium rates for consumers, analysts said on Tuesday.

Hundreds of people were evacuated in west Wales at the weekend after floods swamped caravan parks and homes, and scores more were hit by smaller inundations in parts of England, according to media reports.  

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(Ref: Insurance Journal June 12, 2012)

 

Will There Ever Be a United States of Europe?

From recent news you will have learned that the euro zone crisis continues to be the 700 pound gorilla in the room of the global economy. It’s become increasingly clear that, whatever happens in Greece on June 17, the euro zone countries must undertake the most significant reforms in the way they operate since the common currency was introduced in 2001, if a train wreck of global proportions is to be avoided. Read more...

(Ref: Insurance Journal, June 6, 2012)

Chinese Drivers Pose Fresh Risks for Foreign Insurers..

“People like us who buy Ferraris don’t care too much about insurance because we buy cars for speeding,” said Li, in his twenties and the son of a Pearl River Delta factory owner, as he took delivery of a new 5 million yuan ($787,500) 458 Spider, his fourth red Ferrari. “If we crash, we just throw them away.” Drivers like Li, who gave only his family name, illustrate the challenges that big global insurers such as Allianz , AXA and Chartis face as they move further into China under new rules allowing foreign firms to offer a full range of insurance products in the world’s largest car market.

One of the main reasons foreign insurers’ market share is so small is the limits China imposes on their growth. Foreign insurers must apply to open new branches, and approval for each branch can take 12-18 months. Read more...

(Ref: Insurance Journal, June 5, 2012)

Golden Gate celebrates its 75th anniversary..!

The 75th anniversary of the construction of the iconic Golden Gate Bridge’s was celebrated on May 27, and the massive project was remembered as a major undertaking for contractors and the city – as well as insurers. The 75th anniversary of the bridge drew spectators, media and officials to celebrate the engineering feat: A 1.7-mile-long bridge that rises to 746 feet above the ocean, is supported by cables more than 3-feet thick and weighs in at more than 887,000 tons...Read more...

 (Ref: Insurance Journal May 29, 2012)

NFL Owners’ Latest Safety Move Irks Players.!

The NFL’s move to make thigh and knee pads mandatory equipment for the 2013 season already has drawn criticism from the guys who will have to wear them.

Not long after Atlanta Falcons President Rich McKay, chairman of the competition committee, said at an owners meeting Tuesday that the league can apply the decision unilaterally, the players union and several members expressed their dissatisfaction. Read more...

(Ref: Insurance Journal May 24, 2012)

MetLife to Shift U.S. Business, Target Global Growth

MetLife Inc. will change `its product mix in the United States and push harder for growth in international markets to substantially boost returns by 2016, the largest U.S. life insurer said on Wednesday.

MetLife also said it had received two subpoenas in April and May from regulators looking into mortgage servicing and foreclosure practices at its banking unit. The company had shut its mortgage businesses by then, and is in the process of selling the deposit-taking portion of the bank to General Electric Co.

MetLife shares were down 2.7 percent in late-morning trading and were among the biggest decliners in the S&P insurance index . The fall was a continuation of the stock’s slide over the last two months.Read more...

(Ref: Insurance Journal May 24, 2012)