Newsletter Sign-up

IKE LOSSES ESTIMATED

U.S. onshore and offshore insured losses from Hurricane Ike are estimated at between $7 and $12 billion, according to modeler Risk Management Solutions Inc. The mid-September estimate, revised downward, is based on analysis of damage reports, verified wind speed and tidal gauge observations, and on-site assessment from multiple reconnaissance teams. Losses to offshore oil and gas platforms will contribute a relatively small proportion of the total insured losses for Ike, RMS said.

Employers have an obligation to establish policies to protect employees and guests on their premises in order to limit the potential for workplace violence, according to the Risk and Insurance Management Society Inc. The RIMS statement said "employers should not be denied the right to determine who may be allowed on their premises and what reasonable conditions may be imposed on those persons, including a prohibition from transporting and storing firearms in locked vehicles."

A REALITY HEALTH CHECK

A Woodland Hills, Calif., healthcare insurer will pay $25 million to settle allegations of unfair claims handling and policy cancellations. The California Department of Insurance announced Health Net Inc. will be required to pay $14.2 million in billed medical charges, waive $7.2 million in insurance premiums and pay a $3.6 million penalty to the state. Although Health Net denies any wrongdoing, consumer complaints of unfair claims handling and improper rescission practices date back to 2004.

SUIT SETTLED

A former chief executive of UnitedHealth Group Inc. has agreed to pay $30 million to settle a shareholder lawsuit accusing him of improperly manipulating stock-options awards. The terms of a pact with William McGuire were announced in mid-September, according to the California Public Employees' Retirement System which led the litigation against McGuire and other defendants. CalPERS said the payout is believed to be the largest cash recovery ever obtained from an individual defendant in a securities class action lawsuit.

IRONSHORE CLOSES DEAL

Bermuda-based insurer Ironshore has completed its purchase of Pembroke Managing Agency Limited, which manages Lloyd's Syndicate 4000. The transaction with Chaucer Holdings PLC was announced on July 1, and finalized Sept. 9. Pembroke Managing Agency is led by Mark Butterworth, Managing Director, and Mark Wheeler, Underwriting Director. Ironshore will take over the 2009 underwriting year of account onwards and Chaucer will retain the 2008 and prior underwriting years of account.

?Compiled by staff from news and wire reports.

October 15, 2008

Copyright 2008© LRP Publications