From Bloomberg News | Northbrook-based insurer Allstate told a proxy advisory firm that Chief Executive Officer Thomas Wilson’s pay last year was justified as it braced for a vote on compensation.
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State Farm plans mileage-based premiums
State Farm plans to begin increasing or lowering some of its Illinois policy holders’ rates next year based on how far they drive.
The Bloomington-based company says its new Drive Safe and Save program will only be available to its customers who have OnStar devices on their vehicles and use its vehicle diagnostics tracking tool. Get the full story »
Quinn unveils proposed workers’ comp reforms
Monique Garcia and Ray Long | Clout Street| Gov. Pat Quinn on Friday unveiled his proposed overhaul of the state’s workers’ compensation system, suggesting changes his office says will save employers money while preventing potential abuses that have attracted the attention of downstate federal prosecutors.
The governor’s plan to change the way workers are paid after injury or illness on the job includes limiting payments for injuries such as carpal tunnel syndrome and slashing the amount doctors and hospital receive for treating hurt workers.
State Farm CEO: Biz must address state spending
State Farm Insurance CEO Ed Rust Jr. says business leaders should inject themselves into the debate about “unchecked” government spending and borrowing. Get the full story »
GAO: Half of health insurance appeals successful
Don’t take no for a final answer when a health insurer rejects a claim and leaves behind an unpaid medical bill. As many as 50 percent of some appeals prompt insurers to reverse their decisions, according to a report from the Government Accountability Office. Get the full story »
Japan quake insured loss may reach $25 billion
Friday’s earthquake in Japan caused insured losses of between $12 billion and $25 billion, making it one of the costliest natural disasters in history for global insurers, catastrophe risk modeling firm Eqecat said. Get the full story »
U.S. panel issues mixed final verdict on bailouts
The government’s bailout of banks, auto makers and insurers helped prevent a more severe economic crisis, but might have sowed the seeds of the next one, a congressional watchdog group said Wednesday in its final report.
The Congressional Oversight Panel said that the government’s rescue fund may have prevented an economic depression by sending billions of dollars to companies crippled in financial crisis that erupted in 2008. But little has been done to aid to homeowners facing foreclosure or others far from Wall Street, it said. Get the full story »
Insurance stocks feel mouting tab in Japan
Insurance stocks fell for a second day on Monday as experts estimated that the Japanese earthquake could cost the industry nearly $35 billion, making it one of the most expensive disasters ever.
The Stoxx 600 European Insurance Share Index was down 2 percent at midday Monday, underperforming the wider market, and extending a 1.7 percent drop on Friday. The U.S. S&P insurance index was down almost 1.6 percent at midday, also underperforming the wider market, which was down 1.2 percent. Get the full story »
Allstate CEO Tom Wilson sees compensation fall
Allstate CEO Tom Wilson. (2010 handout photo)
Allstate Corp. cut compensation for Chief Executive Tom Wilson by 11 percent to $9.3 million for 2010 as the insurer paid nothing under a bonus plan that measures performance over a three-year period.
The company also missed seven of 12 targets set up to gauge executive performance last year, and a separate one-year bonus was less than the target amount set by the compensation committee of Allstate’s board of directors. Still, the one-year bonus rose 12 percent from the year-earlier payout as results improved at Allstate’s life insurance operation. Get the full story »
AIG pays more funds back; TARP recovery at 70%
American International Group repaid another $6.9 billion of its bailout on Tuesday, the U.S. Treasury said.
With that payment, the Treasury said it has now recovered 70 percent of the $411 billion distributed under the crisis-era Troubled Asset Relief Program, or TARP. Get the full story »
Ill. regulator to head U.S. insurance office
The Obama administration was expected soon to name an Illinois state insurance regulator to head the new Federal Insurance Office, said sources familiar with the matter on Thursday.
Michael McRaith, seen as the front-runner for the job, is now head of the Illinois Department of Insurance. Get the full story »
State Farm profit up; underwriting loss reported
Underwriting losses at the massive car-insurance business operated by State Farm Mutual Automobile Insurance Co. widened in 2010, even as the biggest home and auto insurer in the U.S. raised prices. Get the full story »
Allstate sues Credit Suisse over mortgage debt
Allstate Corp. on Monday sued Credit Suisse Group AG, accusing the Swiss bank of causing losses by hiding the risks on $232 million of mortgage securities it bought. Get the full story »
EU court bans gender discrimination in insurance
Insurers must stop setting prices based on gender, an EU court ruled, in a move that could raise costs for women drivers, cut male pensions and invite more legal challenges to pricing practices. “Taking the gender of the insured individual into account as a risk factor in insurance contracts constitutes discrimination,” the the European Court of Justice said on Tuesday. Get the full story »
