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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Allstate files $5 million lawsuit in New York as a result of fraud
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…
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 More2011 breaks record for most federal disaster declarations in nation’s history
This year has broken the record for federal disaster declarations according to the Insurance Information Institute, and the year is not over yet. While 2010 may have set a new record for the number of declared disasters in the nation’s history, 2011 has shattered that record in both number and cost. With three months left in the already infamous 2011, analysts are concerned that more natural disasters could be on the way as a final farewell to the year. With two consecutive years of costly catastrophes, many wonder what is…
Read MoreToo big to fail insurance corporations should be governered by different rules than the banking industry
The term “too big to fail” rose to prominence in the wake of 2008’s economic recession. Much like the effects of the recession, the phrase has lingered and has come to define certain aspects of the business world. Too big to fail is a categorization often attributed to massive corporations that have complex and expansive global business operations and deep ties with financial institutions. If these businesses were to fail, there may be disastrous implications for the global economy that go well beyond the problems born during the 2008 recession.…
Read MoreA.M. Best to sponsor Annual Self-Insurance Institute of America’s National Education Conference and Expo
A.M. Best Company, a credit rating and financial data and services company operating in the insurance industry, will be sponsoring the 31st Annual Self-Insurance Institute of America’s National Education Conference and Expo. The conference will be held between October 9 and 11 of this year in Phoenix, Arizona. The annual event attempts to broaden the knowledge of self-insurance within the insurance industry as a whole. This year, the event will be focused around the future of self-insurance and how the marketplace is being shaped by new trends. Self-insurance is a…
Read MoreChubb Corp. reports losses verging on $500 million from natural disasters in the third quarter
The Chubb Corporation, a massive property insurance organization, has had a difficult time recovering from recent storms in the U.S. The occurrence of natural disasters in the U.S. has been unusually high this year, and the damage caused by these storms has been unprecedented. The storms have imposed gargantuan financial losses on the insurance industry and many companies are still sifting through claims from earlier in the year that are adding to total losses. Chubb officials have warned investors that the company’s third quarter losses may end up being higher…
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