Rates increased for primary D&O liability in Q1, Marsh says | 37 nations see stability ratings drop in Aon's terror-risk map | Changes may lower auto insurance costs in Detroit, officials say
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April 26, 2012
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Rates increased for primary D&O liability in Q1, Marsh says
Primary directors-and-officers liability insurance rates climbed about 1.5% on average in the first quarter, but pricing for excess directors-and-officers policies continued to be soft, according to Marsh. The industry is pushing for rate increases partly because of securities class action lawsuits, with settlement amounts steadily rising, said Marsh's Lou Ann Layton. Insurers also are "getting hit in all areas" by smaller directors-and-officers claims, Layton said. PropertyCasualty360 (4/25)
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Industry News
37 nations see stability ratings drop in Aon's terror-risk map
Aon's map of terrorism and political violence shows 37 countries in Europe and elsewhere are experiencing greater risk of civil and political instability. "For the first time since the map's inception, we have recorded significant negative ratings in Western Europe that reflect civil disorder in economies traditionally seen as stable. With further austerity measures still to be imposed and the eurozone crisis only in remission, economic and social degradation are likely to be important drivers of future unrest," said David Claridge of Aon Risk Advisory. PropertyCasualty360 (4/25)
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Changes may lower auto insurance costs in Detroit, officials say
Detroit drivers eventually may pay lower auto-coverage costs because state and city officials have signed a consent agreement that aims in part to help the Michigan Automobile Insurance Placement Facility offer lower rates. The agreement calls for incorporating a neutral credit score in determining rates. Detroit drivers pay the highest annual auto premiums in the nation, according to Runzheimer International data. The Detroit News (4/25)
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Report: Workers' comp changes have failed to lower costs in N.Y.
Municipalities in New York have seen workers' compensation costs rise even though the state made changes in 2007 in an effort to lower the costs, according to a report from the Workers' Compensation Policy Institute. "The issue is complicated by the fact that the state is restricting local government revenue and then imposing regulations that drive up workers compensation premiums," said Stephen Altieri, the institute's board chairman, in a statement. Business Insurance (tiered subscription model) (4/25)
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Catastrophic Risk
$18.6M in federal aid has been approved for Ky. storm damage
Kentucky has received approval for more than $18.6 million in federal assistance for losses incurred from severe storms and tornadoes in February and March. The Federal Emergency Management Agency said it has received inquiries regarding disaster aid from about 5,300 residents in 21 counties. Insurance Journal/The Associated Press (4/25)
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Corps of Engineers: Mo. levee breach stopped $112B in damage
The Army Corps of Engineers said its decision to breach the Birds Point levee along the Mississippi River in Missouri prevented damage worth more than $112 billion last year. Local officials and residents, however, said they are unsure the breach was necessary. An unexpected levee failure easily could have resulted in losses worth $1 billion, said Robert Anderson, a Corps of Engineers spokesman. "All along the system people were really at the point where the levees were about to be either overtopped or the pressure from the historic heights was just going to create a failure in an area that is not scheduled to fail," Anderson said. Belleville News-Democrat (Ill.)/The Associated Press (4/25)
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Levee measure fails to clear La. House
The Louisiana House voted against legislation that would change servitudes tied to levees fronting outfall drainage canals that flow into Lake Pontchartrain. The measure would have disallowed "material or matter of any kind which obstructs or interferes" within 15 feet of the levees, said Rep. Nick Lorusso, the bill's sponsor. The measure did not get support from the state Coastal Protection and Restoration Authority, Rep. Gordon Dove said. Daily Comet (Thibodaux, La.) (4/24)
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Policy and Law
FEMA urges lawmakers to approve an NFIP extension
The Federal Emergency Management Agency is urging lawmakers to approve another extension of the National Flood Insurance Program, which is scheduled to expire May 31. The NFIP will be unable to issue new policies if Congress allows the program to lapse, the agency said. "FEMA is urging Congress to reauthorize the NFIP and send a clear signal to citizens, communities, and private-sector partners that the federal government will continue to support our nation's efforts to manage flood risk," said David Miller of FEMA's Federal Insurance and Mitigation Administration. The Hill/On The Money blog (4/25)
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NRRA questions GAO report on law regarding risk-retention groups
The National Risk Retention Association has challenged a Government Accountability Office report from 2011 that recommends clarification of the Liability Risk Retention Act. The law contains loopholes that allow exorbitant fees, the GAO said. But Joseph Deems, executive director of NRRA, says the report "will not only cause confusion, but in certain instances misinterpretation that will lead to more incidents where states violate the federal law [the GAO] set out to investigate." PropertyCasualty360 (4/25)
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SmartQuote
One person with a belief is equal to a force of 99 who have only interests."
-- John Stuart Mill,
British philosopher and political economist
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