Allstate has announced that it will be revising its compensation plans for independent insurance agents. The company will be revising its commission strategy and pay system for agents, with the changes to take affect beginning in 2013. The new changes will be enforced throughout 2013, but the insurer has not yet revealed plans on what will happen thereafter. Allstate’s changes aim to reduce compensation for most agents, save for captive agents that work solely with the company. The insurer plans to cut commissions by 1%, bringing independent agents’ base commission…
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Connecticut Insurance Department teams with the German Federal Financial Supervisory Authority to protect consumers
The Connecticut Insurance Department has entered into a new agreement with the German Federal Financial Supervisory Authority in order to better supervise an insurance organization that does business in both Germany and the U.S. The agreement is the second between the two entities in the past three months. Insurance Commissioner Thomas Leonardi believes that ensuring the financial stability of insurance companies is vastly important to the protection of consumers. Regulation, according to Leonardi, is the best way to keep insurers from making costly decisions that could compromise the economy. As…
Read MoreGlobal 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 MoreAmerican car insurance risk starts to rise following record breaking low
The proprietary Auto Insurance Risk Index from TransUnion has reported a tiny rise by 0.03 percent at the end of 2011’s third quarter, following four consecutive declines in the previous quarters. The score at the end of the third quarter was 98.85, which, when compared to the second quarter, is three basis points higher. Equally, though, it remains 31 basis points below what it was at the same time in 2010. The peak of the recession in the second quarter of 2009 was 73 basis points higher than it is…
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