E&S/Specialty

The Obama administration will propose putting large insurance companies under control of a federal financial system risk regulator and probably a U.S. insurance regulator as well, according to a draft document.

Bermuda-based Torus Insurance Holdings Ltd., said Torus Specialty Insurance Inc., its U.S. entity, now has authority to write surplus lines in 42 states.

Not all the news is bleak on the employment practices liability front for employers and insurers, but in a down economy, there are more dim forecasts than bright spots ahead, experts say.

Employment-related claims could be on the rise after a recent U.S. Supreme Court decision determined that a collective-bargaining agreement which requires union members to arbitrate age discrimination claims is enforceable as a matter of federal law.

Broker and carrier representatives have slightly different views of conditions in the overall employment practices liability market, but all agree that unchanged prices and enhanced service offerings are possible for individual accounts.

While some are expecting a hard market around the corner, the current employment practices liability insurance market is moderately soft.