Allstate Insurance is looking to recover some $5 million in New York that has been lost due to fraud. The company has filed a lawsuit targeting 21 individuals, 17 of which are being accused of misrepresenting public entities. The insurer claims that these people have continuously submitted fraudulent claims on behalf of corporation that were owned and operated by laypersons, as opposed to licensed professionals. The insurer notes that fraud is one of the primary reasons rates have been rising in the state in recent years. Allstate has filed some…
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AIG continues to pay its debt to the U.S. Treasury despite financial turmoil
The U.S. Treasury has received another payment from the American International Group (AIG), one of the nation’s largest insurance organizations. The payment is the latest in a series coming from AIG as part of its massive debt owed to the federal government. To date, the company has repaid $18 billion of the $182 billion provided during 2008’s financial crisis. The company still owes the federal government approximately $50 billion it received from the government’s Troubled Asset Relief Program. This week’s payment totaled $972 million. The insurer has been treading troubled…
Read MoreInsurer’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…
Read MoreCigna purchased HealthSpring Medicare provider in $3.8 billion deal
Cigna, a global health insurance company based in the U.S., has announced the acquisition of HealthSpring, a health insurer specializing in Medicare Advantage plans. Cigna is looking to expand its presence in the Medicare sector as well as its senior care services. The move may be inspired by an aging populace that will soon enter the ranks of seniority, enabling them to take advantage of new insurance plans. The acquisition is priced at $3.8 billion. HealthSprings serves more than 350,000 Medicare Advantage policyholders across 11 states. The insurer also boasts…
Read MoreNegotiations between states and banks may end in immunity for banks – insurance industry levies concerns
The mortgage crisis of 2008 played a major role in the economic recession of the same year. The effects of the recession are still felt to this day, despite reports of a recovering economy. In the wake of the recession, states and some of the largest banks and financial institutions in the U.S. have been negotiating on how to address future mortgage abuses. Those negations are rapidly reaching a climax. Representatives from states and banks are set to reach a deal by the end of this month. The deal, which…
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