According to reports, Goldman Sachs recently agreed to pay $100.5 million to policyholders of the now defunct General American Life Insurance to settle a pending lawsuit brought by General American in which it alleged that Goldman Sachs provided bad advice to the company.  Other defendants named in the suit previously settled with General American. …

Read More Goldman Sachs to Pay $100.5 million to Policyholders of General American Life Insurance

On the same day that it released a report indicating that insurance premiums should experience double-digit growth through 2010, Brazilian insurance regulator SUSEP announced the suspension of 10 of the nation’s 30 reinsurance brokers. …
Read More Brazil Regulatory Update: SUSEP Expects Double-Digit Premium Growth Through 2010, Suspends 10 Reinsurance Brokers

A Florida appeals court recently ruled that while a state statute provides for the award of “reasonably foreseeable” damages resulting from insurer bad faith, a jury is not free to award such damages without any supporting evidence. …
Read More Florida State Appeals Court Reverses Jury Award of Bad Faith Damages

Comos previamente discutido aquí, el Presidente de Costa Rica, Dr. Oscar Arias Sánchez, firmó este año una ley terminando el monopolio del gobierno de más de 80 años sobre la industria aseguradora del país.  Hasta hoy, ninguna empresa privada ha solicitado autorización para entrar al mercado, pero las autoridades de Costa Rica han comenzado de investigar acusaciones de ventas del seguro extranjero (click aquí) y algunas compañías han indicado públicamente su interés en el mercado, incluyendo Grupo Mundial de Panamá, que ha indicado que se está preparando para entrar al mercado de Costa Rica en 2009. …
Read More Nueva Ley y Regulaciones de Seguro de Costa Rica

As we previously discussed here, Costa Rican president Oscar Arias Sanchez this year signed into law a bill ending the more than 80-year government monopoly over the country’s insurance industry.  Although no private companies have yet applied for licensing, the Costa Rican authorities have begun cracking down on sales of foreign insurance (please click here) and several companies have publicly indicated an interest in the market, including Grupo Mundial of Panama, which has indicated that it is preparing to enter the Costa Rican market in 2009. …
Read More New Costa Rican Insurance Law and Regulations

Advisen recently issued three reports, on the D&O market, E&O market and the financial services industry, containing predictions on the impact of the subprime/credit crisis on insurers worldwide.

With respect to D&O claims, Advisen predicts $5.9 billion in losses for claims during 2007, 2008, and 2009.  This amount

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Read More Industry Analyst Predicts Impact on D&O and E&O Insurers to Total $9.6 Billion

We have reported previously on the progress of the Lloyd’s Legislative Reform Order (LRO) through Parliament (our most recent post can be found by clicking here). The LRO has now been approved by both Houses of Parliament and is expected to come into force on Wednesday 19 November 2008. 

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Read More Parliament Approves Lloyd’s Reform Order; Lloyd’s Consults on Changes to its Rules

At the Future of General Insurance conference on 5 November 2008, Sarah Wilson, the FSA’s insurance sector leader, warned that the insurance industry might find itself under pressure if it fails to reform its practices regarding contract fairness and customer relations. She added that the FSA will be taking a keen look at the sector, particularly in light of the added risks it faces in the current economic climate. …
Read More UK: FSA’s Message to the Industry at the Future of General Insurance Conference

The Eleventh Circuit recently held that an excess Directors and Officers (“D&O”) insurance policy did not cover its insured’s attorney’s fees after the primary policy’s limits were depleted. …
Read More Eleventh Circuit Finds that Excess D&O Policy Did Not Cover Attorney’s Fees After Exhaustion of Primary Policy’s Limits

In the case of HLB Kidsons v Lloyd’s Underwriters subscribing to Lloyd’s policy No 621/PK1D000101 & Others [2008] EWCA Civ 1206, the Court of Appeal has given useful guidance on when notification of circumstances which may give rise to a claim is effective. Kidsons was a firm of chartered accountants who sold tax avoidance products through its subsidiary Solutions @ Fiscal Innovation Limited (S@FI). …
Read More UK: Court of Appeal Gives Guidance on When Notification of Circumstances is Enough