Report shows the rocky road of the property casualty insurance industry during 2011

ISO, a risk assessment firm specializing in the property/casualty insurance industry, and the Property Casualty Insurers Association of America (PCI) have released a new report showing the impact natural disasters had upon the P/C insurance industry in 2011. This year has become infamous for the number of severe storms and other natural disasters that have rocked the U.S. and other nations. The report notes that while the property/casualty industry grew in some aspects, it saw steep losses in others, with the most severe losses coming in a short 9-month period.…

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Liberty Mutual posts Q3 losses due to natural catastrophe and asbestos charges

The Liberty Mutual Group, one of the largest property casualty insurers in the U.S., has posted their third quarter financial report. The report shows that the company has lost millions as the result of natural disasters and a high-profile asbestos lawsuit that was levied against the insurer earlier in the year. Last year, the insurer reported a net profit of $567 million during the third quarter, but 2011 has produced several major natural disasters that have shaken the insurance industry to its core. Liberty Mutual’s losses from catastrophic events for…

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Insurance group proposes new legislations as alternatives to Florida’s no-fault auto insurance regulations

The Property Casualty Insurers Association of America (PCI) has released a new report concerning the state of Florida’s personal injury protection (PIP) regulations. Florida lawmakers recently passed a new set of rules that govern the PIP insurance system, which established no-fault auto insurance laws in the state. The insurance group claims that the law also institutes a so called “fraud tax” which may drive up insurance prices in the state and put consumers at risk of being victimized by dubious business practices. PCI has proposed a number of legislations that…

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Insurer’s move away from RMS hurricane model amidst controversy

Hurricane risk models were a popular subject for insurers this week during the annual meeting of the Property Casualty Insurers Association of America. Earlier in the year, risk modeling agency Risk Management Solutions (RMS) introduced revisions to its U.S. hurricane model. The changes generated some controversy when they were first announced, but have since become an all-encompassing issue for property insurers in coastal regions. These insurers expressed their discontent for the new model during the meeting, citing multiple factors that have made it more costly to do business in the…

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Florida faces significant costs resulting from fraudulent no-fault claims

According to the Property Casualty Insurers Association of America (PCI), the imperfections of Florida’s no-fault car insurance system are causing abuse that is system-wide, and the number of fraudulent claims is larger than it has been at any other time. This national association issued a special report on the no-fault auto coverage in the state which showed that the resulting costs from the false claims have meant that drivers are paying over $800 billion more than they would otherwise be required. According to a senior vice president at PCI, Paul…

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Insurance industry infighting may delay Congressional action on National Flood Insurance Program

A fight amongst lobbying groups could put a hold on Congress’ decision regarding the ailing National Flood Insurance Program. The program, which provides millions with access to affordable flood insurance, has been wracked with crippling debt for several years and has finally run out of money and reached a point where it could no longer be sustained. Last month, lawmakers allotted more money to the program in an effort to ensure its survival for another five years, but the plan failed when confronted by the program’s enormous debt. Lawmakers were…

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U.S natural disasters: How the insurance industry is faring and what consumers need to know about the future.

As Hurricane Irene barrels down on the East Coast, Chris Hackett, Director of Personal Lines Policies for The Property Casualty Insurers Association of America (PCI), has quite a few things to say concerning insurance and how people will be affected by the storm. We were able to ask Mr. Hackett about current, past and even future potential natural disaster events that we all should prepare for. Here is what he had to say: Live Insurance News – With hurricane Irene beating down on the Carolinas, and maybe even New York,…

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