Search

Insurers and reinsurers are spending more money and resources on legal services and advice than before. More companies are being sued or getting embroiled in legal disputes. In 2002, the U.S. civil liability system cost the country $233bn, an increase of $27.4bn over its cost in 2001. According to actuarial consulting firm Tillinghast, tort costs accounted for 2.2% of the nation's gross domestic product of $10.45 trillion in 2002, compared with 1.4% in 1970 and only 0.6% in 1950. Litigiousness is not only increasing in the U.S. It is also on the rise in Europe. INSETS: Other firms mentioned;The top performers;Company profiles.

The Markel Corp. was started more than 70 years ago to cater for the insurance needs of the early transportation industry in the United States. Tony Markel, its chief operating officer and the grandson of its founder, explains the firm's next steps to Bianca Markram. Before long, the public started to demand protection from the bus operators against accidents and some districts started to make insurance compulsory. So, when the owner of a small insurance agency in Norfolk, Virginia, found it impossible to place cover for his customers, a group of such bus operators, he set up a small mutual insurance company for them. INSETS: From broker to underwriter;Profit, profit, profit.

Examines the effect of satellite technical failures on the space insurance industry in the U.S. Assessment on the ability of insurers on coping with space insurance claims; Resistance of clients on increasing insurance rates; Importance of legislation on managing space insurance claims. INSET: Rewriting the law..

Reports on the increase of threat for biological terrorism in the U.S. Plan of the government on the possible bioterrorism; Effect of bioterrorism on the business; Risk of bioterrorism to the properties. INSET: Caught in the middle..

Reports the unpredictable terrorists attacks in the U.S. Role of the insurance companies on the issue; Importance of communication on the event; Assessment of insurance companies on terrorism risk.

The article informs that international insurers and reinsurers must comply with a different set of regulations in almost every country where they operate. It writes life insurance and reinsurance business and offers pensions and investment products. It means the company must comply with more than 18 different insurance regulators globally, not including the U.S., where its subsidiary John Hancock has to comply with the regulations of each state it writes business in. In October, Victor Apps, senior executive vice-president and general manager of Manulife Financial Asia, spoke at the annual conference of the International Association of Insurance Supervisors (IAIS) in Jordan to an assembly of regulators from across the world.

Insurance prices are stabilising in most lines of business and even falling in some. But that does not necessarily mean risk managers will start buying more traditional insurance again. Many could be reluctant to let go of the alternatives they were forced to use at the peak of the hard market. On March 8, 2004, the United States Risk and Insurance Management Society published the results of a survey of risk managers that could severely disappoint the insurance industry. The results suggest that the present hard market could have changed the future behaviour of risk managers by forcing them to rely more on alternatives. INSET: Telling it like it is.

Reports the forecasting on the occurrence of hurricanes in the U.S. Expectation on the increase of cold in Atlantic sea surface; Lists of storms predicted; Speed of the wind. INSET: The influence of El Niño..

Insurers and reinsurers are still raising capital at a steady pace but the activity is dwindling compared with previous quarters. The global insurance industry has raised a total of $78.12bn in the capital markets since the start of the year, of which $56.59bn is debt. Although the activity is slowing, investors remain keen on buying both equity and debt issued by insurance companies. Insurance stocks are more attractive to investors than stocks from many other industries. The third quarter saw 33 debt issues in the U.S., including two issues from Bermuda by Montpelier Re and Oil Insurance. Oil Insurance, a mutual insurance company used by the energy industry, raised $299.4m in subordinated debt.

With the acquisition of GE Edison Life Insurance Co. Ltd., General Electric's Japanese life business, the U.S.-based American International Group Inc. (AIG) became the first foreign player to rank in the top ten companies in this market, as of August 1, 2003. But there are rumors of further expansion by the world's largest insurer. The purchase pushes AIG from number 15 in the market into the top ten. It is the first foreign insurer to become one of the ten biggest players in Japan. Japanese life market is consolidating and many expect this to continue.

The article reports that Duferco Steel Processing's South African arm is shifting its focus to Africa, the U.S. and South America. According to marketing manager Nico van Wyk, the financial crisis has negatively affected Duferco's European business, thus it is moving its focus away from Europe. Duferco's South African business is based in Saldanha.

The article reports on the cost burden being faced by the South African mining industry with the expected implementation of carbon tax. The industry is dealing with the government about the tax but not everyone is convinced that it will save the mining sector. A revised policy paper has been released by the treasury department on how it aims to implement the carbon tax in 2012. An Industry Task Team on Climate Change (ITTCC) was established to investigate the possible effects of the tax.