In 2009, at the start of the global economic crisis, there was a decrease of 4.4 percent in the number of employees who had workers’ compensation coverage. According to a National Academy of Social Insurance report, this drop was the largest in twenty years. The result was that the cost to employers for providing the benefits decreased by 7.6 percent, reaching $73.9 billion that year; which is the most recent year with complete data. This drop closely mirrors the overall decline in employment in the country. According to the chair…
Read MoreTag: business insurance news
Commercial and business insurance news is important for agents and company owners to keep on.
Cinven buys U.K. Guardian life and pension from Aegeon
Cinven Ltd. has announced that it has purchased the life and pension unit of U.K. Guardian from the Dutch insurance company which owns Scottish Equitable, Aegon NV, for $449 million, in the effort to reduce its expenses within the United Kingdom. According to Aegon, which is based in the Hague, by the end of June 2011, the U.K. Guardian unit had recorded a value of approximately $445 million. Its unit for asset management will still be responsible for Guardian’s approximately $12 billion in assets on Cinven’s behalf. By 2015, Aegon’s…
Read MoreGlobal insurance industry may be in for change as regulators come together to draft new rules
In the wake of major natural disasters and allegations of corruption, the world’s insurance industry is set for change. Insurance regulators from several nations have begun drafting new rules to present to political leaders in time for the 2012 G20 summit .These new rules are being tailored to ensure that the actions that spurred the 2008 economic recession cannot be repeated in the future. Both the International Association of Insurance Supervisors (IAIS) and the Financial Stability Board (FSB) are playing a major role in drafting the new rules. Overall, the…
Read MoreMissouri lawmakers investigate state’s employee insurance program over surplus funds
The Missouri Legislature continues to investigate Missouri Employers Mutual Insurance Co., a state-backed insurance company providing coverage to public employees. The Legislature has recovered more than $163 million in surplus money from the insurance company, which was seized after regulators found that the company was, supposedly, withholding benefits. The investigation stems from events that unfolded earlier in the year, in which state regulators found that two of the company’s five board members were committed theft and fraud. Now the insurance company faces the scrutiny of state legislators, who are investigating…
Read MoreAIG files suit against Bank of America, looking to recover $10 billion in losses
American International Group (AIG), the U.S. largest insurer that has been steeped in controversy, has filed a lawsuit against Bank of American Corp. The insurer is looking to recover over $10 billion in losses from what it is calling “massive fraud.” The lawsuit is spurred by allegations of mortgage fraud stemming from the bank’s deals leading up to the 2008 economic recession. The suit claims that Bank of America misrepresented its mortgages as being of a higher quality than they actually were. According to the suit, filed with the New…
Read More
