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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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…
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…
Read MoreStudy suggests recovery for independent insurance agents and brokers
A new study from the Independent Insurance Agents & Brokers of America (IIABA), the largest insurance agent and broker association in the U.S., brings some good news regarding the state of the nation’s independent agencies. The 2011 Best Practices Study outlines the organic growth that is currently moving throughout the industry. The study notes that 2010 was a year of promising growth and that the trend has continued throughout this year as well. The IIABA says that independent agencies are showing real signs of recovery for the first time since…
Read MoreFederal regulators seek public commentary on insurance regulations
The Federal Insurance Office is nearing the end of a lengthy study of current and pending insurance regulations. The study, which was spawned from last year’s Dodd-Frank financial reform bill, will come to an end in January of 2012, at which time federal regulators will release the findings to the public. The results of the study has the insurance industry on the edge of its seat as the study may determine the fate of future regulations that could requires insurers to make vast changes to their business strategies and practices.…
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