Eight industry trade groups supporting an optional federal insurance charter told key members of Congress in a letter yesterday that financial services regulatory reform should include a dedicated federal insurance regulator.

Policyholders of Citizens Insurance Corp., the underreserved state-sponsored insurer of last resort, could see their rates rise by up to 5 percent under legislation passed yesterday by the Florida Senate.

XL Capital reported first-quarter net income of $3.1 million, with favorable prior-year development contributing to the upside and investment losses continuing to drag the figure to a minimal level.

As the United States recorded its first swine flu death, insurance brokerages were offering recommendations on moves businesses and other organizations should make, and one firm said actions now are "critical" to deal with the epidemic.

William R. Berkley, chief executive officer of the W.R. Berkley Corp. specialty lines insurance organization, said the market is turning faster than previously expected, but the initial upward rate hikes will likely be lower than past hard markets.

InsWeb Corp., a provider of insurance marketplace solutions for agents, and Allied Strategy, a comparative rating provider, said they have partnered to integrate InsWeb's AgentInsider Lead Program with Allied Strategy's SEMCAT platform.

Coinciding with the nation's economic downturn there has been a clear increase in the number of questionable insurance claims related to possible fraud, according to a National Insurance Crime Bureau report.

American International Group said today that despite the ongoing investigations by federal authorities, they know of no illegal activity by the company's controversial financial products unit.