Risk Management

The UK Financial Services Authority announced last week that a tribunal upheld its decision prohibiting the former chief executive at a General Reinsurance Group unit from working in financial services.

Two property-casualty insurance trade groups have argued to Congress that American International Group is off the mark in saying that its bankruptcy would pose a "systemic risk" to the property-casualty insurance industry.

Coral Insurance Company, a Florida residential property insurer with 11,750 homeowner policyholders, has been put in receivership, the Florida Department of Financial Services announced yesterday.

Reasons for supporting state regulation of insurance voiced by some governors don't withstand detailed scrutiny, officials at several Washington conservative think tanks said in a letter to congressional leaders.

A spokesman for the Florida Office of Insurance Regulation said that many insurers have expressed interested in providing coverage for policyholders with suspended home insurer Coral Insurance Co.

An insurance executives' think tank, in advance of the London G-20 meeting last week, wrote to finance leaders advising them that any regulatory moves to fix the economic crisis should recognize the difference between banks and insurers.

The G-20 meeting generated a number of proposals that if implemented would have a strong benefit for U.S. insurers, according to officials at an industry trade group.

In a report last week, the General Accounting Office advised Treasury to withhold $30 billion from American International Group until the company agrees to renegotiate contracts with employees and final counterparties.