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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New York regulators launch investigation into the state’s life insurance industry
The New York Department of Financial Services has begun an investigation into the state’s life insurance industry. The investigation seeks to account for the $52.6 million in unpaid benefits that has been missing for the past several months. The money has yet to reach the 8,000 beneficiaries to which it is owed. Shortly after the investigation was announced on Monday, the money quickly made its way to beneficiaries, which has sparked concerned amongst the state’s insurance regulators. In accordance with the investigation, the state’s life insurance companies are required to…
Read MoreFederal report shows that most insurers can meet the medical loss ratio requirement
The medical loss ratio provision of the Affordable Care Act, which requires insurers to spend at least 80% of the money they collect from premiums on improving medical care, is a source of constant controversy throughout the country. Insurers have claimed that the rule cripples their ability to remain financial solvent in the current economic climate. The Government Accountability Office has released a new report countering the claims from the insurance industry. The report shows that most all insurance companies in the U.S., both large and small, are able to…
Read MoreIncrease expected for commercial insurance rates
Though consumers have been seeing steady increases in rates for casualty, property, home, and auto insurance, companies have not seen any notable raises in their own insurance costs. Yet. The sensitivity of businesses to increases for insurance rates runs much deeper, and some new competition has brought some of the business for commercial insurance to Canada. Those two factors have allowed the price of those plans and policies to remain relatively steady over the last few years. However, according to RSA Canada’s chief executive, Rowan Saunders, this trend will not…
Read MoreChina insurance market growing too fast for domestic insurers to handle
China’s insurance market is experience major growing pains, according to a report from Standard & Poor’s, a credit rating agency based in the U.S. The Chinese market is, by all accounts, enormous and the potential for success in second to none. The full breadth of this potential success, however, is open only to Chinese insurers. Native insurers are now facing demand for coverage that they are having trouble meeting. Many companies, including New China Life, one of the largest life insurers in the country, are plagued with capital shortfalls due…
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