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…
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Reputational risk a growing concern for companies and insurers
In the advent of social media, a person’s reputation is beginning to play a much more important role in the world of business. A new trend has been born in the insurance industry in the form of reputational risk. This risk is most apparent in companies that have had their reputations damaged by some sort of incident that caused consumer backlash. Companies with bad reputations tend to fare poorly in their given industry, as consumers often steer clear of such companies. In some cases, this avoidance can mean the end…
Read MoreTowers Watson report shows the cost of claims continues to outpace the rise in insurance pricing
Towers Watson, a global professional services firm, has released a new report showing the rising prices in the commercial insurance industry. The report shows that commercial insurance prices have grown for the second consecutive year by an average of 2%. Property insurance and workers compensation are the two fields where the increases in pricing are most apparent. The property insurance market is being bolstered by a number of natural disasters that occurred throughout the year, which prompted insurers to raise rates and prices for new policies. While prices are rising,…
Read MoreFitch 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…
Read MoreIndependent agents in Florida decry new contract between property insurers
Florida’s independent insurance agents have voiced their concern regarding one of Florida’s largest property insurers taking over thousands of policies from a now defunct competitor. Agents are worried that the move may cost them dearly in the form of client exodus. Homeowners Choice Insurance, a subsidiary of Homeowners Choice Property and Casualty Insurance, has taken on more than 70,000 policies from HomeWise Insurance. While agents have witnessed such happenings in the past, there is a provision in the contract between HomeWise and Homeowners Choice that could put agents’ livelihoods in…
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