Tag: American insurance industry

US insurance industry isn’t moving away from coal at the rate of EU insurers

Marc
US Insurance Industry - Power plant and wind turbine

A new report determined that insurers in the Unites States are falling behind their European counterparts. Though the number of companies in the US insurance industry that have moved away from coal has doubled this year, a new report shows that American insurers remain far behind those in Europe. Insurance companies in Europe have withdrawn support for coal at a substantially higher rate. The report, called “Insuring Coal No More,” looked at the European and US insurance industry. It scored the two regions for the third consecutive year according to…

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Wells Fargo auto insurance product scandal will now lead to $130 million in payments

G. Turner
Frustrated Auto insurance product Wells Fargo

The financial giant released a securities filing at the end of last week with its updated estimates. The Wells Fargo auto insurance product scandal has received a fresh update as the bank updated its payment estimates in a recent securities filing. The document revealed the financial giant’s intentions to pay a total estimated $130 million to affected customers. That new figure represents an amount that is $50 million greater than previous estimates it released. The auto insurance product in question has since been discontinued. The premiums associated with its coverage…

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Will insurance industry giants continue to be “too big to fail”?

Julie Campbell
Insurance Industry Giants - Metlife Building New York

A new memo is currently circulating to propose legislation removing that status from massive insurers. Representative Jeb Hensarling (R-Texas) is circulating a memo to remove insurance industry giants from their “too big to fail” designation. The memo stated that proposed legislation would take that status away from even the biggest insurers in the country. The designation was granted to MetLife, AIG and Prudential immediately following the recent financial crisis. A regulatory consortium, the Financial Stability Oversight Council, deemed the insurance industry giants as “systematically important” to the American economy. That…

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Two-tier insurance company capital standards proposed by Fed

Marc
Insurance company capital standards business financial skyscrapers

The concept is to treat exceptionally large firms differently from others within the industry. The Federal Reserve proposed new insurance company capital standards as a part of a two tiered system that had already been expected for the industry and that is expected to provide significant protection for the American economy. Within this system, major insurers are going to have different capital requirements applied to them. Prudential Financial Inc. and American International Group Inc. will both have different insurance company capital standards applied to them due to their size and…

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Insurance losses could be as high as $70 billion in the US from one peril

Julie Campbell
auto insurance losses power grid electricity blackout electric car

According to a report from Lloyds, if the power grid in the United States were to be attacked the cost would be massive. Lloyds of London has now released a new report that has shown that if the Northeast U.S. power grid were to fall victim to a cyber attack, the insurance losses would be tremendous and far-reaching. The economic losses that would occur from such an event could actually reach a trillion dollars. Beyond financial disruptions, there would also be issues with water supply and transportation. The insurance losses…

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