STATE FARM OUT OF MISS.
State Farm Insurance Cos. announced it is suspending sales of new commercial and homeowner policies in Mississippi because of its business and legal environment. State Farm has more than 30 percent of the homeowners market in Mississippi, making it the largest carrier of the coverage there.
INSURERS AIM AT CLIMATE
Swiss Reinsurance Co., Munich Reinsurance Co. and Allianz S.E. joined 100 other companies to endorse a statement on climate change from the Global Roundtable on Climate Change. The roundtable was formed in 2004 by experts from numerous international companies and organizations to study critical issues of public and industry policy resulting from climate change.
MORE TERROR COVER
Lexington Insurance Co., a member company of American International Group Inc., increased capacity for commercial domestic property terrorism cover. It will write up to $250 million, up from $100 million, available to commercial property owners as stand-alone or embedded coverage on a broad form without sunset provisions.
XL Capital Ltd. estimated that its pretax net loss from European windstorm Kyrill could be in the range of $60 million to $75 million--most from its reinsurance segment. Kyrill packed hurricane-strength winds that wreaked widespread damage and loss of life throughout Northern and Western Europe on Jan. 18 and 19.
LATEST HEALTH REFORM
The Federation of American Hospitals, a group that represents about 20 percent of all U.S. hospitals, offered a health-care reform plan that would build on the employer-based benefits system. It would require all U.S. adults to have health insurance. If enacted, the plan could cost $115 billion.
HEALTH COSTS SKY-HIGH
Spending on health services in the United States could increase to $4.1 trillion in the next decade, according to a report from the National Health Statistics Group, part of the Centers for Medicare and Medicaid Services. In 2006, spending on pharmaceuticals, hospital costs and other health-care items cost $2.1 trillion in 2006.
N.Y. WORKERS' COMP PLAN
New York state announced a deal among Gov. Eliot Spitzer, business, labor and legislators to reform the state workers' comp system. Weekly benefits for injured workers are to be increased, while costs to employers are expected to drop by 10 to 15 percent. The plan also calls for the implementation of new anti-fraud policies.
According to the National Association of Mutual Insurance Cos., 10 U.S. states passed 17 CAT-related laws in 2006. In the previous year, three states had passed seven such measures. Overall, the number of passed general P/C laws was lower: 539 such bills in 2006 compared with 625 in 2005.
--Compiled by staff from news and wire reports.
April 1, 2007
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