Zurich places $225M catastrophe bond for Calif. quakes
December 13th, 2009
The bond, Lakeside Re II Ltd., offers three years of reinsurance protection to the Schaumburg, Ill.-based insurer. Other units of Zurich Financial Services Group may be added as ceding insurers from time to time, S&P said. The Class A notes cover losses in excess of $500 million on a per-occurrence basis.
The deal is expected to close Dec. 23, according to New York-based S&P, which rated the bond BB-.
Risk modeling is based on Newark, Calif.-based Risk Management Solutions Inc.’s U.S. earthquake model version 9.0.
This is the third catastrophe bond with which Zurich American has been involved. The first was Kamp Re, which defaulted because of losses related to Hurricane Katrina.
Tags: Bond, Catastrophe Bond
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End of the Year Insurance Planning
December 11th, 2009
As the second Friday of December passes us by and we head off for the weekend (dome of us anyways), keep in mind there are only twenty days left until the end of the year.
End of the year is the perfect time to review your company’s business insurance. It is a good time to make sure that equipment purchased during the year is insured. It is a good time to make sure that automobiles and their drivers are properly identified. Update procedure manuals, review wellness plans, meet with your insurance professional–these and other steps are perfectly suited for the end of the year because the steps coincide with tax planning.
I have a post where I suggest a ten-step annual review.
Tags: Year, Year Insurance
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AIG retention bonuses OK for ‘critical’ execs: Pay czar
December 10th, 2009
The awards, which AIG called “legally binding contracts,” were outlined in a broader report by Kenneth Feinberg, the Treasury Department’s special master for executive compensation.
“Due to the unique financial circumstances currently found to exist at AIG,” restructuring the 2009 contracts would not be consistent with the public interest, the report said.
The report also outlined compensation rules on the 26th to 100th highest-paid employees at AIG and three other companies that received bailout funds. Mr. Feinberg previously ruled on compensation for the 25 highest-paid employees.
Tags: Aig, Aig Retention
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Employers shun health reform despite deal
December 9th, 2009
Business groups such as the U.S. Chamber of Commerce have long opposed Democratic efforts to expand access to health insurance, including a government alternative to private coverage that they say would undermine the ability of employers to offer health benefits to their workers.
There are enough other weak spots in the bill that employers still cannot back the measure, they said.
“The bill … is full of costly new mandates on business that will only lead businesses to lower wages on employees, lower working hours on many other employees, reduce hiring and lose jobs,” the chamber’s executive vp, Bruce Josten, told reporters on Wednesday.
Senators embraced a plan late on Tuesday in which private insurers could offer nationwide insurance coverage overseen by the federal government.
Tags: Health, Health Reform
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Construction Equipment Rental Insurance
December 9th, 2009
Planning on doing some major construction work this summer? Contractors and homeowners that opt to rent their construction equipment avoid many of the hassles involved with buying equipment, like transportation and storage costs. What you have to keep in mind is that renting equipment is just like renting anything else—you’re going to be exposed to liability risk and need to protect yourself with the right insurance. This small additional fee for construction equipment liability insurance will save you some big headaches in the long run.
Once the piece of rental equipment is in your hands, it’s your responsibility to keep it properly insured. This
Tags: Construction Equipment, Equipment
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Zurich Adds a Virtual Library
December 7th, 2009
Zurich in North America has created an electronic library of risk management and product information. Zurich calls it: the Zurich Virtual Literature Rack (VLR).
The VLR contains information relevant to risk managers, customers, and those looking to purchase business insurance. The VLR requires registration and the information requested is a bit invasive, but that is probably my only complaint. I have always liked RiskInsight, a publication produced by Zurich that covers different types of risks in each issue. That publication is available in the VLR for direct viewing or downloading.
Other publications and white papers are also available at the VLR.
Tags: Library
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GAO finds new Form 5500 lacking
December 6th, 2009
“Without data on mutual funds, the largest component of most 401(k) retirement plans, (the Labor Department) is unable to fully assess the impact of service provider fees on investment returns,” the GAO report says.
The report, requested by House Education and Labor Committee Chairman George Miller, D-Calif., recommends, among other things, that the DOL require all indirect compensation to plan service providers be disclosed on the forms, along with the asset-based fees that are netted from investment fund performance.
Doug Halonen is a reporter for Pensions&Investments, a sister publication of Business Insurance.
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What cities are tops for starting a small business?
December 6th, 2009
Chances are the Canadian cities where a new business is most likely to succeed might not be where you think. In fact, you might not have even heard of some of them until now.
The cities (those with a population of 25,000 or more) that scored best and were determined to be the friendliest cities to start a new business are: Lloydminster Alberta/Saskatchewan (the provincial border runs through town) Parksville, British Columbia Grand Prairie, Alberta Fort St. John, British Columbia Saskatoon, Saskatchewan Kelowna, British Columbia Sept-Îles, Quebec Fort McMurray, Alberta Moose Jaw, Saskatchewan Regina, Saskatchewan Torontos 905 Region, Ontario The list, the product of the Canadian Federation of Independent Businesss examination of 12 entrepreneurial factors in three key areas, shows that big cities are not a big deal. With Read full post…
Tags: Business
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