Regulation/Legislation

The authority of federal regulators to oversee and liquidate troubled large insurance companies should be significantly pared back in legislation Congress is considering, insurance interests are arguing.

The chief executive officer of the Property Casualty Insurers Association of America warned his members last week to beware of a "divide and conquer" strategy in Washington when it comes to nailing down regulatory and health care reform.

American International Group was highly critical of a special master's decision to slash payments for its top employees by 91 percent for the remainder of the year.

State regulators, legislators and even a consumer advocate group expressed alarm last week over efforts in Congress to usurp some insurance oversight power, warning that federal lawmakers are going too far in preempting local authority over the industry.

C.V. Starr & Company--headed by Maurice Greenberg, the former boss of American International Group--strongly denied that the managing general underwriter is busy looting staff from AIG.

Florida CFO Alex Sink urged carriers at an industry conference last week to consider entering her state's huge, hurricane-prone homeowners insurance market, pledging to work together with them to craft a less hostile regulatory environment.