All articles by LII editorial
LII editorial
Disgraced AIG execs proclaim their innocence
Though he has avoided prosecution, Joseph J Cassano, the former head of American International Groups Financial Products (AIG-FP) unit, is still fighting to restore his reputation, tarnished by what is seen as his pivotal role in the US insurers near-collapse. Write-downs related to credit default swaps (CDS) on subprime mortgage collateralised debt obligations (CDO) written by AIG-PF precipitated AIGs financial woes, which first came to light in the fourth quarter of 2007, and eventually led to a $180bn bailout. On 30 June, Cassano, who until as late as September 2008 received a $1m monthly consulting fee from AIG, put his side of the story to the Financial Crisis Inquiry Commission a 10-member bipartisan commission created under the Fraud Enforcement and Recovery Act of 2009.
Brokers in UK prepare to do battle with FSA
UK insurance brokers future are under threat, warns the British Insurance Brokers Association (BIBA). The industry bodys concern stems from invoices received by its members from The Financial Services Authority for their 2010-11 Financial Compensation Scheme levy (FCSS) payments. BIBA CEO Eric Galbraith said brokers are facing 48-fold increases in their FSCS fees from two years ago, and laid the blame for the increase on mis-selling of payment protection insurance (PPI).
Catholic insurers join forces in the US
Consolidation of a slightly unusual nature has just occurred in the US, with the merger of two life insurers focused on the Catholic community, Catholic Knights and Catholic Family Life Insurance
US insurers largely passed by regulatory reform
Reform of US financial regulation has taken a leap forward following the approval of the 2,000 page Dodd-Frank Wall Street Reform and Consumer Protection Act by the House of Representatives With the bills passage through the House, state insurance regulators are breathing a sigh of relief that its focus is primarily draconian banking regulation reform and leaves their authority largely unchanged. During intense debate on reform, insurance industry leaders stressed that the problems that beset the banking and securities sectors during the economic crisis were largely absent in the insurance sector.
Strong recovery in UK life insurance activity
Activity in the UKs life insurance market increased rapidly during the second quarter of 2010, reports professional service firm PricewaterhouseCoopers (PwC). The recovery marked the second consecutive quarter of growth and was in tandem with the fastest rate of growth in the UKs financial sector for three years.
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Aviva takes the online lead in Australia
According to Australian market research firm Investment Trends inaugural Life Insurer Benchmarking Report it is Aviva. Investment Trends conclusion was based on a review of the online offerings of 10 Australian life insurers across 150 functional areas and a survey of 1,400 financial planners aimed at determining what is important to them
Government ends India’s war of the ULIPs
A two-month battle for regulatory control over unit-linked insurance products (ULIP) between insurance regulator the Insurance Development and Regulatory Authority (IRDA) and capital markets regulator the Securities and Exchange Board of India (SEBI) has ended in victory for the IRDA.
Pan-American Life gets go-ahead in Costa Rica
Pan-American Life Insurance Group (PAL), a US insurer focused on the Hispanic market, has increased its reach with the receipt of a licence to operate in Costa Rica from the Central American countrys insurance regulator, the Superintendencia General de Seguros According to PAL, the company will offer individual health insurance as well as group life, accident and health insurance products in Costa Rica.
US insurers on mend
Numerous year-on-year comparisons reveal that the US life insurance industry has experienced dramatic improvement in its financial condition, reports rating agency Moodys Investors Service. A major indicator of the improvement was a precipitous 74% fall in investment impairments for the 19 life insurers covered by Moodys in its study. Moodys also noted that almost all of the life insurers posted positive operating earnings and net income during the first quarter of 2010
Hope amid despair for UK pension schemes
In June 2009, the combined deficit of defined benefit pension schemes sponsored by UK companies stood at £40bn ($60bn) A year on and it has soared to a new record high of £100bn and could get far worse before it gets better, warns consultancy Aon Consulting.