The Insurance Record - June 3, 2010

INSURANCE RECORD THE VOICE OF TEXAS INSURANCE Published Since 1934 • Dallas, Texas June 3, 2010 • Vol. 76 No. 11

FOCUS ON WORKERS COMPENSATION SPECIAL SECTION – PAGE 5

Bank Failures Surpass
Insurer Insolvencies

NEW YORK—The rapid rebound of property-casualty (P/C) insurers from the financial crisis suggests that subjecting insurers to bank style regulation would constitute a significant policy error, according to Dr. Robert Hartwig, an economist and president of the Insurance Information Institute (III).

Increased Regulation NOT Needed “Bank style regulation would needlessly raise insurance costs for hundreds of millions of insurance consumers and could unfairly require insurers to subsidize the reckless lending practices and speculative activities of failed banks,” Dr. Hartwig said, at a time when Congress is considering the need for financial regulatory reform.

Oh How the Money Rolls In In analyzing the 2009 year-end financial results for U.S. property/casualty insurers, Dr. Hartwig highlighted the $54.2 billion, or 11.8 percent, annual increase in claims paying capacity, to $511.5 billion last year from $457.3 billion in 2008, a figure also known as policyholders’ surplus. In fact, by year-end 2009, the industry’s claims paying capacity was within two percentage points of its all-time record pre-crisis high of $521.8 billion. The key factors contributing to the resurgence in capacity in 2009 were the recovery of the U.S. capital markets and strong underwriting results — aided by a respite from high ca-tastrophe-related losses.

continued on page 29

Mission Attorney Indicted for

In This Issue

Fraud & Theft from

TDI-DWC Survives Sunset Review

employee Benefit Plan

Workers Compensation Special Section

HOUSTON—An attorney and former bank chairman has been indicted for allegedly defrauding clients of his law firm, as well as customers and employees of a title company he owned, according to United States Attorney José Angel Moreno.

113th IIAT Convention in Fort Worth, June 13-15

SELLING STRATEGIES:

When Only A Mercedes Will Do 21

hospitals Shift Costs to

Auto Insurers, IRC Study Finds

Regelio “Roy” Ibanez Jr., 44, of Mission Texas, was charged with wire fraud and theft from an employee benefit plan in an 11-count indictment returned by a Houston grand jury on Wednesday, March 14, 2010. On April 16, Ibanez surrendered continued on page 29

Why Middle Men and Women are Important by John “Josh” Fitzhugh 23

Regulators Scrutinize Annuity Scams

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