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…
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Kemper will be the new name for Unitrin
The Unitrin Inc. insurance company made the announcement that it will be changing its name before the end of the month, at which time it will be known as Kemper Corp. Unitrin is based in Chicago, and in 2002 it had purchased the personal lines business from Kemper, another insurer that was still operational at the time. Today Unitrin has announced that its purchase has become the largest unit in the company, having brought in slightly under $1 billion in premiums in 2010. According to Don Southwell, Chairman and CEO…
Read MoreMassachusetts health insurer posts earnings, shows marked increase in profits and narrowing of losses
Despite a tumultuous year, Blue Cross Blue Shield of Massachusetts is reporting high earnings in the second quarter. Thus far, 2011 has proven to be relentless in the number of natural disasters occurring throughout the U.S. While speculations regarding the losses faced by insurance companies have been somewhat grave, the fact of the matter is that many insurers are earning more than they did before the disasters. There can be no doubt that these insurers, most of whom operate in the property market, have, indeed, suffered losses, but their ability…
Read MoreS&P downgrades Californian insurers while Commissioner Jones insists the companies are financially sound
Rating agency Standard & Poor’s seems to be in the grips of a downgrading frenzy as the agency downgrades the credit ratings of five of California largest insurance companies. The move comes on the heels of the agency’s downgrading of the federal government’s credit rating, which sparked controversy throughout the country and drove many businesses to re-evaluate their place in the commercial market. S&P downgrade of the state’s insurers could have major implications for the industry, but Insurance Commissioner Dave Jones says that there should be no doubt about the…
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…
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