Risk Management

Competing U.S. and Bermuda insurance interests have been ramping up lobbying efforts over a proposed tax code change that would impact Bermudian carriers U.S. profits.

Former American International Group Chief Executive Officer Maurice Greenberg arrived on Capitol Hill last week to tell a House panel how the government should fix AIG, but heard a congressman call him the wrong witness because of his own legal problems.

A unit of the European Union reached informal agreement last week on Solvency II, a broad framework to enhance insurer capital requirements and supervision. The action drew a positive response with reservations from some insurance segments.

Last week, the chairs of key Senate and House committees promised President Obama they will work together to have legislation on his desk by year's end creating a "new, more robust regulatory framework" for financial services firms.

Bills to ease rules for bringing "bad faith" lawsuits in claim disputes have been introduced in a growing number of state legislatures, but so far insurance interests have been winning.

Actions being taken today by state insurance regulators will deal with current inefficiencies and create a more effective, state-based regulatory system, the chief executive officer of the National Association of Insurance Commissioners said.

Even as some insurance industry bonuses draw criticism, Jack Windolf, the chief executive officer of Bollinger Insurance Solutions brokerage, is drawing national acclaim for dishing out $1,000 to all 434 company employees from his own pocket.

A bill introduced in Congress yesterday establishing some federal regulation over the insurance industry has drawn opposition from an insurance agents group while the two major insurers are supporting the move.