New Guidance for Credit Default Swaps in New York

Yesterday, the New York State Insurance Department issued Circular Letter No. 19 (2008) primarily to address the behavior of financial guarantee insurers involved in credit default swaps. Readers may access a copy of Circular Letter No. 19 here . In a press release issued Sept. 22, Governor David A...

Reed Smith Podcast on the Federal Bailout of AIG - Now Available on the Insurance Law Center

In a podcast currently on the Insurance Law Center, James M. Davis and Paul R. Walker-Bright of Reed Smith discuss the implications of the federal bailout of AIG. They first noted that AIG comprises one of the largest insurance conglomerates in the world. It is the largest insurance company in the world...

Opportunities & Challenges Facing the Insurance Industry During the Financial Crisis: A Review of the Topics Addressed at The Directors Roundtable Recent NYC Panel Discussion

The Directors Roundtable held a panel discussion in New York on October 28 entitled “Opportunities & Challenges Facing the Insurance Industry During the Financial Crisis.” Peter Porrino, Ernst & Young’s Global Director of Insurance Industry Services, spoke on the impact of the...

Soft Market Winding Down

The average property/casualty rate decrease hit single digits in October for the first time in more than 20 months according to online insurance exchange MarketScout . It put the average p/c rate decrease at 9 percent in October, compared to a decline of 15 percent a year ago. Not since January 2007...

Credit Crisis Insurance Losses: How Big?

This past week, in conjunction with the PLUS International Conference in San Francisco, the insurance information firm Advisen issued an updated forecast of insurance losses likely to arise from the credit crisis. As reflected in its November 5, 2008 press release ( here ), Advisen is now estimating...

2008 Upheaval of the United States Financial System

The crisis has clearly favored the financial holding company structure for the large financial conglomerates. The financial holding company came into legal existence in 1999 with the passage of the Financial Services Modernization Act, generally known as Gramm-Leach-Bliley. Gramm-Leach-Bliley was an...

Reed Smith LLP on the Potential for Federal Regulation of Insurance in Light of AIG, Inc.s Financial Collapse

The financial collapse of AIG, Inc., one of the world's largest groups of insurance companies, has had and will continue to have significant impacts on the financial services industry, including the regulation of insurance. AIG's difficulties highlight the extent to which insurance has become...

Ernst & Young on Reflections on Current Market Conditions for the Insurance Industry

In this commentary, Peter R. Perrino and Robert W. Stein of Ernst & Young LLP assess the implications of the current financial and credit crisis for insurance companies and recommend actions they can take to help safeguard ratings and assets and mitigate exposure to potential losses. The authors...

FREE DOWNLOAD: 2008 State New Economy Index - 50 State Surveys Benchmarking Economic Transformation

The 2008 State New Economy Index compiled by the Ewing Marion Kauffman Foundation and the Information Technology and Innovation Foundation ranks the economic structure of each state. It asks: "To what degree does the structure of state economies match the ideal structure of the New Economy?"...

FREE DOWNLOAD: 13th Annual Small Business Survival Index - 50 State Rankings

The Small Business & Entrepreneurial Council's 13th Annual Small Business Survival Index 2008 ranks the 50 states and D.C. according to some of the major government-imposed or government-related costs affecting investment, entrepreneurship, and business. The Index ranks the states according to...

Reed Smith LLP on The Madoff Losses: How Will You Recover?

On December 11, 2008, Bernard Madoff was arrested and charged in one of the largest ever investment fraud schemes. Madoff has since pled guilty to the federal criminal charges, but still faces civil suits, class actions, and liquidation proceedings. The litigation has also spread to other “feeder...

FREE DOWNLOAD -- PricewaterhouseCoopers Top Nine Insurance Industry Issues in 2009: Crisis and Change

Insurers are faced with the most challenging economic environment in decades. As the economic crisis persists, they are seeking ways to maintain adequate capital, manage risks, retain business and contain costs. 2009 is perhaps the critical year in the current crisis, and how insurers manage uncertainty...

The $20 billion near-heist: AIG in NY revisited

If AIG goes bankrupt, will state insurance regulators protect the assets of its solvent insurance subsidiaries, ensuring that they will pay policyholders' claims? In the current issue of the insurance law journal Enforce , policyholder attorney David E. Wood of Anderson Kill Wood & Bender...

Financial & Government Policy Expert: Path Out of ‘Depression’ Requires Major Paradigm Shift with Significant Investment in Children

In an exclusive released in advance to the LexisNexis Community Centers, our community members are among the first to learn about how global finance and government policy expert Robert H. Dugger moved an audience of 200 reinsurance executives and attorneys at a conference last week with a message that...

Reed Smith LLP on AIG’s Financial Distress: How Credit Default Swaps and the Lack of Regulation Brought down an Insurance Giant and Implications for the Insurance Industry

The recent financial collapse of American International Group, Inc. (“AIG”) came as a shock to many people. How, they wondered, could one of the largest insurance organizations in the world fall so far and so quickly, to the point of bankruptcy and eventual bailout by the federal government...

AIG’s Financial Distress: How Credit Default Swaps and the Lack of Regulation Brought Down an Insurance Giant and Implications for the Insurance Industry

The first of three articles in the Spring 2009 issue of New Appleman on Insurance: Current Critical Issues in Insurance Law is entitled “AIG’s Financial Distress: How Credit Default Swaps and the Lack of Regulation Brought Down an Insurance Giant and Implications for the Insurance Industry...

Insurance Solvency Regulation – New Appleman on Insurance Law Library Edition, Chapter 14

By Gary Hernandez and Paige Waters The following chapter discusses the philosophy and methodology behind the regulation of insurer solvency. It begins in Section 14.01[1] with a brief review of the field of solvency regulation. Such regulation seeks to mitigate the risk of loss to businesses and individuals...

Market Conduct Regulation – New Appleman on Insurance Law Library Edition, Chapter 13

By A. Kenneth Levine A functional insurance market has become commensurate with the health, safety, and welfare of modern society. Insurance products fulfill the need for financial security of most Americans and the commerce upon which the American economy depends. Conversely, many economic factors...

State Regulators Receive High Marks In IMF FSAP Assessment Of U.S. Insurance Sector

WASHINGTON , D.C. - The National Association of Insurance Commissioners (NAIC) received high marks from the International Monetary Fund’s (IMF) Financial Sector Assessment Program (FSAP). The Detailed Assessment Report indicates an overall high level of observance by U.S. insurance regulators of...

Manulife, Munich Re Team Up to Tap Hong Kong's Changing Health Care Market

By Rebecca Ng, News Editor, A.M. Best HONG KONG (BestWire) - Proposed government-driven medical reforms together with an aging population and rising medical costs in Hong Kong is generating a new business model for group life and medical insurance segments among international companies in the wake...

Manulife, Munich Re Team Up to Tap Hong Kong's Changing Health Care Market

By Rebecca Ng, News Editor, A.M. Best HONG KONG (BestWire) - Proposed government-driven medical reforms together with an aging population and rising medical costs in Hong Kong is generating a new business model for group life and medical insurance segments among international companies in the wake...

LexisNexis® Insurance Law Community Podcast featuring Paul Walker-Bright of Reed Smith on the Impact of the Dodd-Frank Act on the U.S. Insurance Industry

On this edition, Paul Walker-Bright of Reed Smith in Chicago discusses the provisions in the Dodd-Frank Act that deal with or affect the insurance industry, aspects of the industry that may be exempt from Act's insurance provisions and the authority the Federal Insurance Office will have to monitor...

Peter Chaffetz: The Financial Crisis’ Impact on Reinsurance

Peter Chaffetz of Chaffetz Linsdey LLP was on the faculty of the Reinsurance Outlook 2010 seminar produced earlier this year by HB Litigation Conferences. During a session that focused on the reinsurance implications of the global financial crisis, Chaffetz provided a nuts and bolts review of how historical...

Duane Morris: Financial Stability Board Designates Nine Global Insurance Groups as "Global Systemically Important Insurers"

The Financial Stability Board (FSB), tasked by the G-20 to prevent a future financial crisis, on July 18, 2013, designated nine large insurance groups as Global Systemically Important Insurers (G-SIIs), three from the United States—American International Group, Inc.; MetLife, Inc.; and Prudential...