Optimism for the business conditions for the insurance industry in the U.S. is beginning to expire, according to a new report from KPGM, an audit, tax and advisory firm. The report shows that many of the nation’s highest ranking insurance executives are growing pessimistic of the conditions governing the insurance sector. These executives claim that conditions are worse now than they were a year ago and may gradually grow worse as the global economy shows signs of ailing. One of the major challenges facing the industry, notes KPGM, is the…
Read MoreTag: insurance industry trend
Health insurers eye climate change as a major concern for the future
Climate change is often a controversial issue, especially when the federal government is concerned. The insurance industry, however, is beginning to take the matter more seriously, as a new report shows that purely environmental factors may be causing the high costs seen in the health care system. The report comes from the Natural Resources Defense Council, an international environmental advocacy group based in New York. The report suggests that natural disasters that have struck the U.S. in the past decade may be having a significant impact on the health of…
Read MoreLiberty Mutual posts Q3 losses due to natural catastrophe and asbestos charges
The Liberty Mutual Group, one of the largest property casualty insurers in the U.S., has posted their third quarter financial report. The report shows that the company has lost millions as the result of natural disasters and a high-profile asbestos lawsuit that was levied against the insurer earlier in the year. Last year, the insurer reported a net profit of $567 million during the third quarter, but 2011 has produced several major natural disasters that have shaken the insurance industry to its core. Liberty Mutual’s losses from catastrophic events for…
Read MoreAllstate files $5 million lawsuit in New York as a result of fraud
Allstate Insurance is looking to recover some $5 million in New York that has been lost due to fraud. The company has filed a lawsuit targeting 21 individuals, 17 of which are being accused of misrepresenting public entities. The insurer claims that these people have continuously submitted fraudulent claims on behalf of corporation that were owned and operated by laypersons, as opposed to licensed professionals. The insurer notes that fraud is one of the primary reasons rates have been rising in the state in recent years. Allstate has filed some…
Read MoreInsurer’s move away from RMS hurricane model amidst controversy
Hurricane risk models were a popular subject for insurers this week during the annual meeting of the Property Casualty Insurers Association of America. Earlier in the year, risk modeling agency Risk Management Solutions (RMS) introduced revisions to its U.S. hurricane model. The changes generated some controversy when they were first announced, but have since become an all-encompassing issue for property insurers in coastal regions. These insurers expressed their discontent for the new model during the meeting, citing multiple factors that have made it more costly to do business in the…
Read More