Major changes for China insurance industry. The insurance industry in China is growing at a rapid rate. The country recently opened up its borders to foreign insurers looking to expand into new markets and this initiative has been quite successful. As more insurance companies enter the Chinese market, however, regulators are growing concerned over their ability to comply with the country’s laws and expectations. These concerns have grown too large to ignore any longer and the China Regulatory Commission has announced that it will be strengthening the supervision of the…
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Global insurance and banking regulators call for more oversight in the industry
As the world’s economy continues to sputter ever onward, global insurance and banking regulators are setting their sights on financial institutions that provide insurance products. These institutions contributed to the global recession in varying degrees, and regulators now want to ensure that a similar crisis does not form due to lack of oversight. Regulators have drafted a new set of rules that aim to assess whether banks selling insurance products are managing their liquidity and capital levels as they are meant to. The Basel Committee on Banking Supervision, the International…
Read MoreConsumer group issues report accusing insurers of needlessly high rates – Insurance Institute claims report is faulty
Americans for Insurance Reform, a consumer advocacy group, has released a new report regarding the property/casualty insurance industry in New York. The report accuses P/C insurers of excessive rate increases that have slowed the financial recovery of individuals and businesses in the wake of the 2008 economic recession. The group argues that these needlessly high rates may be leading to a new liability insurance crisis in the U.S., one that may set the economy back even further. The group claims that the insurance market throughout the U.S. has been “soft”…
Read MoreRole of the Federal Insurance Office questioned at recent panel hosted by the U.S. Treasury Department
As the insurance landscape begins to change and take a new form, the role of the Federal Insurance Office, a federal agency set up after the passing of the Affordable Care Act in 2010, is being questioned. Last week, the U.S. Treasury Department hosted a panel regarding new insurance regulations. At the panel, consumer advocacy groups, legislators and regulators offered their views of the Federal Insurance Office and what role it should play in the future’s insurance industry. The opinions given were varied, with many consumer groups claiming that the…
Read MoreNew regulations take effect in California, drawing the ire of the state’s insurance companies
New homeowner’s insurance regulations have taken effect in California. According to Insurance Commissioner Dave Jones, the new regulations will offer new protections to consumers against being under insured. Part of the aim of the new regulations is to improve upon the state’s standard regarding natural disasters and catastrophic damage to homes. Furthermore, homeowners will no longer be able to purchase “too little” coverage, as the new regulations mandate a minimum level of insurance coverage based upon the property being insured. The regulations have ruffled the feathers of the Association of…
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