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Insurers' Y2K Costs Could Top $6.58 Billion

Article Abstract:

The Securities and Exchange Commission required publicly traded companies to detail their exposure to the Year 2000 transition problem for computers in their third-quarter filings. The disclosure of Year 2000 information was a first; the disclosure requirements mandated that companies delineate their preparations for their information technology in the Year 2000 and to forecast possible adverse consequences from the event. The SEC filings of the top 60 publicly traded domestic insurance companies forecast expenses totalling $2.16 billion to make computers Year 2000 compliance. The typical Fortune 500 company may accrue Year 2000 compliance expenses of over $50 million.

United States, Financial analysis, Economic aspects, Year 2000 transition (Computers), Information services

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Reserving for pollution lacks an easy solution

Article Abstract:

Loss reserving for pollution liability requires a keen understanding of the court decisions on that matter in every relevant state jurisdiction. Decisions regarding environmental Superfund liability differ widely from state to state. One key coverage issue is late notice regarding claims. While some states are very liberal in interpreting timely notice, other states require the policyholder to carry the burden of proof. Another key issue is the insured's prior knowledge or intent regarding contamination.

Cases, Toxic torts

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Pricing and consolidation: farewell to the P/C cycle

Article Abstract:

Spinoffs and divestitures in the property and casualty insurance (P/C) industry have increased the number of companies doing business, creating a soft pricing environment. This development has made the 'hard-market, soft-market' pricing cycle that once typified the P/C industry a thing of the past. Then, large foreign companies like BAT would buy stakes in US insurers to generate earnings indirectly. Now, they are intimately involved in the business.

Prices and rates, Cover Story

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