Willis Group claims captive insurance companies could be key to future of insurance industry resiliency

The global insurance industry is undergoing extreme change. The change is brought on by the rapidly evolving risks that the industry is facing. As risk changes, insurers are feeling pressure to become more adaptive and resilient against emerging threats. The Willis Groups, one of the world’s largest insurance brokers, believes that captive insurance companies could be the key to weathering the storms of the future. Joe Plumeri, CEO of the Willis Group, attending this year’s World Captive Forum in Miami, Florida, highlighted the usefulness of captives to insurers around the…

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U.S. Department of Labor allows more time for insurers to comply with federal law

Insurance companies are pushing for lengthy delays in the enactment of a law that would require them to summarize the benefits plans they provide. According to the Affordable Care Act, health insurance providers must summarize their policies to within four pages of easily understood content. The law is meant to provide consumers with a better understanding of the benefits they will be receiving and what their policies do and do not cover. The Department of Labor, however, has announced that it will not be forcing insurance companies to be adhering…

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Fitch Ratings publishes its 2012 outlook report for American insurance brokers

Fitch Ratings has just announced the results of the analysis of their data for revenue and earnings increases for American insurance brokers in 2012, and that they have shown that their figures will likely equal or top those that were reported from January through September 2011. However, they also indicated that the basic nature of competition of the marketplace for property & casualty insurance, and the lukewarm recovery of the global economy will continue to provide a struggle for more significant growth and operating performance. Top-line increases may be able…

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Too big to fail insurance corporations should be governered by different rules than the banking industry

The term “too big to fail” rose to prominence in the wake of 2008’s economic recession. Much like the effects of the recession, the phrase has lingered and has come to define certain aspects of the business world. Too big to fail is a categorization often attributed to massive corporations that have complex and expansive global business operations and deep ties with financial institutions. If these businesses were to fail, there may be disastrous implications for the global economy that go well beyond the problems born during the 2008 recession.…

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Insurance market may be softening, but insurers will continue to combat costly health care

The beginning of the year was punctuated with a rash of insurance rate increases coming from many of the nation’s insurance companies. Insurers had defended their weighty rate proposals with the claim that the cost of medical care was rising out of control. Higher rates may also be due to a provision of the Affordable Care Act that requires insurers pay no less than 80% of their collected premiums on health care. While insurers have been quick to propose rates that are, in some cases, astronomically high, industry experts believe…

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