Industry News
Insurance
Top stories summarized by our editors
11/25/2020

The Financial Stability Oversight Council might heighten its efforts to address concerns about systemic risk among nonbank financial companies under a Treasury Department led by Janet Yellen, according to experts. Yellen "believes the FSOC should be playing an active role in monitoring the financial system for emerging risks and should designate" nonbanks as systemically important financial institutions "when appropriate," said David Portilla of Debevoise & Plimpton.

11/25/2020

Purdue Pharma has entered guilty pleas to three federal felony counts stemming from the US opioid crisis. The OxyContin maker has agreed to pay $225 million as part of a $2 billion criminal forfeiture, which the Justice Department will largely waive if Purdue becomes a public benefit company or a similar entity as the result of a bankruptcy reorganization.

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Reuters
11/25/2020

Life insurance policy sales grew 7% in the third quarter compared with a year ago, while overall premium was up 2%, according to LIMRA. Indexed universal life, term life and whole life insurance all saw sales gains, but fixed universal life sales declined 8%.

11/25/2020

Sophia Yen, insurance strategy and innovation leader at EY, first made waves in the insurance industry with a breakthrough at Swiss Re when she was 21, and she is now working to help other women succeed in the sector. "People of color and women don't get the airtime that we should," said Yen, who recalled feeling an "incredible feeling of professional loneliness" in her early years in financial services.

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Swiss Re
11/25/2020

Speed cameras can help curtail the number and severity of auto crashes, and elected officials should use such tools to discourage dangerous driving, write Cathy Chase of Advocates for Highway and Auto Safety, Dr. Richard Lichenstein of the Maryland Teen Safe Driving Coalition, and A. LaToya Bates of the Partnership for a Safer Maryland. In addition, measures such as the federal Moving Forward Act would promote crash-avoidance and impairment-detection technology, they write.

11/25/2020

Special purpose acquisition companies are "increasing tremendously" in number, and their value is also rising, contributing to sharp increases in directors-and-officers liability insurance premiums, said Yelena Dunaevsky of Woodruff-Sawyer & Co. Insurers likely were not ready for the heightened number of SPACs pursuing initial public offerings, which is drawing greater regulatory scrutiny, Dunaevsky said.

11/25/2020

Storms and a possible EF1 tornado in North Texas on Tuesday caused property damage and downed power lines and trees. The National Weather Service is assessing damage from the tornado, which struck Arlington, in the Dallas-Fort Worth area.

11/25/2020

The 2020 Atlantic hurricane season saw two major hurricanes developing in November -- an unprecedented situation -- and experts say more storms could emerge after Monday, when the season officially ends. Sea-surface temperatures could lead to more storms forming in the western Caribbean sea in December, according to David Zierden of Florida State University's Florida Climate Center.

11/25/2020

The Home Depot has arrived at a $17.5 million settlement with 46 states and the District of Columbia over a 2014 data breach. The payment card data of 40 million customers was accessed by hackers using malware and a Home Depot vendor's login credentials to commit the breach.

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Reuters
11/25/2020

Aon is partnering with asset manager Hudson Structured Capital Management on a cybercatastrophe insurance product for insurers and reinsurers. The product will offer as much as $70 million in alternative capital and provide coverage for risks including self-propagating malware, distributed denial-of-service attacks and cloud outages.