Regulation/Legislation

A lawyer for American International Group told a Connecticut legislative committee yesterday that attempts to cancel controversial AIG Financial Products unit bonuses would cause marketplace confusion.

Establishing a national regulator responsible for overseeing solvency and insurance pricing and products would help fix the "critical shortcomings" in the property-casualty insurance industry's current state-based regulatory structure, a report says.

The New York State home insurer of last resort said it will expand offerings by offering coverage for a wide variety of additional perils it does not currently insure.

Insurers are not currently contesting directors and officers' legal defense claims related to the Bernard Madoff pyramid scheme, but carriers are examining proceedings to see if they can stop payments, legal experts said.

A unit of European Union reached informal agreement yesterday on Solvency II, a broad framework to enhance insurer capital requirements and supervision. The action drew a positive response with some reservations from some insurance segments.

Rep. Jackie Speier, D-Calif., is scheduled to address the National Association of Professional Insurance Agents next month on the downside of federal regulation, the organization said.