On 14 July 2010, the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) published its draft advice on equivalence assessments to be undertaken in relation to three areas of the Solvency II directive, being reinsurance, group supervision and group solvency. CEIOPS proposes that in its first wave of assessments, Bermuda and Switzerland should be considered for equivalence in all of these areas and Japan in respect of reinsurance only. …
Read More Solvency II – Bermuda and Switzerland in Line for First Equivalency Assessments

The National Flood Insurance Program (“NFIP”) expired on May 31, 2010 and, for the third time this year, the NFIP lapsed for a month.  On July 1, 2010 the NFIP was reauthorized retroactive to June 1, 2010 and this reauthorization will expire on September 30, 2010. …
Read More National Flood Insurance Program Reinstated by Temporary Extension

According to a recent Reuters article, Lloyd’s of London, the world’s largest insurance market, has said it will comply with sanctions signed into law by President Obama on July 1. …
Read More Lloyd’s Will Not Insure or Reinsure Petroleum Shipments to Iran

Citing a number of industry executives, Bloomberg recently reported that the Deepwater Horizon rig explosion – causing the largest oil spill in U.S. history – has prompted a reduction in the placement of insurance coverage for deepwater oil exploration.  According to the Bloomberg article, corporations may now need “to self-insure or exit deepwater fields.” …
Read More Update: Bloomberg Reports Sharp Decline in Offshore Oil Rig Drilling Insurance As Underwriters Tack Away From BP Disaster-Type Risk

In late June, two Members of Congress requested that the Centers for Medicare and Medicaid Services (CMS) expedite the implementation of a Medicare home care demonstration project.  In other CMS news, the agency issued a proposed outpatient hospital rule in early July, and during Congress’ July 4th recess, President Obama made the decision to officially appoint his CMS Administrator. …
Read More Healthcare News from Capitol Hill and the Department of Health and Human Services – July 12, 2010

A Connecticut District Court recently held that plaintiffs, who brought a subrogation action to recover a judgment entered in their favor in an underlying legal malpractice action against their attorneys, were entitled to litigate coverage issues even though the attorneys’ insurer obtained a default judgment against the attorneys in a separate coverage action. …
Read More Connecticut District Court: Insurer’s Default Judgment Does Not Necessarily Preclude Litigation in Subrogation Action

In a recent decision, the Supreme Court of Appeals of West Virginia concluded that the West Virginia Human Rights Act prohibits discrimination by an insurer in the settlement of a property claim. …
Read More West Virginia Human Rights Act Prohibits Discrimination by Insurer in the Settlement of Property Claim

On 30 June 2010, the UK’s Financial Services Authority (FSA) and Financial Reporting Council (FRC) published a joint discussion paper (DP) entitled “Enhancing the auditor’s contribution to prudential regulation”.
Read More UK: Financial Services Authority and Financial Reporting Council Publish Discussion Paper on Auditors’ Role in Prudential Regulation

In the days after the January earthquake in Haiti, some staggering numbers were reported in the media. There was approximately $14 billion in property damage, most of which occurred in Port-au-Prince, the largest city in Haiti, and 250,000 people were killed, either directly or indirectly, by the earthquake. …
Read More Microinsurance Going Macro, Especially in Latin America

On 6 July 2010, Lloyd’s issued Market Bulletin Y4408 (click here to see a copy of the bulletin) clarifying the reporting requirements of managing agents who underwrite broker errors and omissions (E&O) insurance. These requirements were issued in April 2010 by Market Bulletin Y4390 (click here to see a copy of the bulletin). …
Read More UK: Lloyd’s Regulates Conflict of Interest for Underwriters of Broker E&O Insurance