Hawaii Insurance

Peter Lewis, Vice President of Hawaiian Electric, the islands of “great power of entrepreneurship, said:” Speaking for most large companies, we support the idea of prepayment Health Care Act. As a society we are heavily on prevention. In the long term, we save money. ”

After 1975, commercial insurers, denied the chance to avoid unhealthy customers, quickly abandoned by the market, and HMSA, the Blue Cross vehicle, with about half the market, has always compete with Kaiser Permanente , With about an HMO’s Fifth market. The competition keeps prices low and encouraged the kind of preventive maintenance means that slightly above an average annual rate of visits to the doctor, but also lower prices of hospitalization, and shorter hospital less frequent visits to surgery.

There are disputes about how the insurance is really. Speaking for independence business group, Ms. Rasmussen, the flower farmers, the Congress said that 3 to 7 percent of Hawaiians and non-sub “Many experts believe that the figures may be higher.” Mr. Lewin says typically 98 per cent coverage.

The analyses are based on the Census Bureau’s monthly budget survey indicate that 93 percent of health insurance Hawaiians. Greater survey by the National Institute of Public Health, said that 96 percent of Hawaiians are insured.

William E. Simon, 59 years in its control and tumble of the harsh world of James Bond trading houses, which served as treasury and als”Energie”Zar Secretary, led the USA Olympic committees and got a reputation as one of the investors During Wall Street.

William E. Simon, 59 years in its control and tumble of the harsh world of James Bond trading houses, which served as treasury and als”Energie”Zar Secretary, led the USA Olympic committees and got a reputation as one of the investors During Wall Street.

The project, which focuses now may be equally difficult. Mr. Simon and a group contains a number of high-powered partners, began setting up an international financing services and investment conglomerate based on a chain savings and loan associations and the spread of other areas.

The vision of this empire was inspired by Mr. Simon’s faith in the Pacific Rim, as an engine of economic growth in the 21st century. The move in four areas

A year and a half in the Venture, Mr. Simon has opened doors sufficiently attracted enough talent management, the project credibility and remarkable dynamism. Already in the group has signed, as members of these Preston Martin, former vice-chairman of the Federal Reserve Board, has developed close relations with foreign investors, and earned a toehold in real estate, commercial banks , Venture capital and Merchant Banking.

”We are gathering steam,’’said Simon in a telephone interview last week in Indianapolis, where he is the Pan American Games.

The group has so far focused on what some in the Financial Community, a tactic dangerous and difficult fishing on values in the waters of the troubled savings and loan industry. The only parts of the Pacific Rim has been affected so far, California and Hawaii.

Mr. Simon is betting that his group may be profitable to save companies from cups of insolvent savings institutions, on the west coast and throughout the nation, and to acquire healthy bodies. It would be a basis for building an empire.

Although the group has made some initial successes, a turning point for combat savings and loan association, the record is far from exhaustive. Indeed, some analysts, success is not the attribute of the infusion of talent from the music group, but on the ability of the group to get interested particularly well from the Confederation of regulatory authorities do not sell, savings and credit institutions. A secret of success

The acquisition of the strategy is simple, at least in theory, if the goal is a healthy body or need an additional capital: deep, with a value of the potential target of real estate assets and loan portfolio, and to impose sophisticated financial management in which are recorded. Where the device is not attractive to acquire, only the best real estate establishments.

”I think that prices there in S. & L. World, Sir,’’said Simon. ”If ever an industry, the capital, it is this, and we can provide capital.”

Thrift leaders welcomed the new competitors for its ability to help troubled institutions on board, as well as for its competence and optimism amid the gloom. ”You have all the ingredients for success,’’said William D. Nichol, Chief Financial Officer of Federal Home Loan Savings and San Diego.

The Group already holds three of savings institutions. One, Southern California savings, lost $ 1 million per month, it was purchased before, another Federal Republic of savings Honolulu, Hawaii more than $ 1.8 billion in assets, has fought. The third, West Coast savings from Beverly Hills, has been largely on the principles and now has assets of $ 100 million. An offer for F.C.A. The group of more daring, currently offer a bid for the tottering Financial Corporation of America, parent company of the nation’s largest rigour, ad acta, while the Federal Home Loan Bank Board decides how to deal with problems of TCF.

”We want a big presence on savings institutions in major markets across the country,’’said Martin, currently saving units for the group.

At one time, the Confederation of market regulators to fight for the loss of industry in the economy under control, Simon-working group has a value of raw materials - to provide new capital. But some industry leaders wondering whether the government is not too far to give in relations with the group. For example, they call the $ 217 million capital that the Federal Savings and Loan Insurance Corporation agreed, Southern California savings as part of that quantity. The Simon Group $ 40 million of his own money in the institution. 2 views of the Gruppe”Die positive in the industry is that the value of an eye,’’said Jonathan E. Gray, an industrial economy, an analyst at Sanford C. Bernstein & Company. The cynique”estime they can not wait, the more the government.”

Said L. Gerald Parsky, a former assistant Treasury Secretary Mr. Simon in mid-1970 and now its main partner in the new ventures,”The fact is that we have put $ 100 million to the industry.”

In Honolulu Confederation, the group has not received any financial assistance. The unit savings has been profitable for several years and, as problem loans increased stock of the situation has been eliminated. Mr. Simon and its partners, the institution has acquired late last year in return for an injection of $ 17 million of their own money and the organization of a private placement of $ 40 million in subordinated bonds increased by writing and $ 100 million of bad assets. Although some observers, it has a price, since real estate values, remained stable.

Companies in real estate loans of nature, have difficulties in the Federal Republic of Honolulu has been reduced, “said Martin, and operating expenses were balanced by the closure of certain locations and times of travel for others. A team of financial M. Martin to level the holding company - including John Harding, a former official of the Republic Federal National Mortgage Association, and Terry Crowe, ex-Asset Liability specialist at Kidder, Peabody & Company - was awarded to the institution to monitor the work Investments.

Accordingly, Honolulu Federal earned $ 11.6 million over the first half of the year, Mr. Martin said, as far as he had expected to win for the whole year. The group hopes over the same in Southern California, acquired earlier this year. Not in search of “Quick Buck ‘

Finally, Mr. Simon said that some institutions may transfer of shares to the public. ”But it would not be Bill Simon’s profits,”he said. ”We would be for him to return to the institution.”

As it has not been the case in the past, as Simon handles Leveraged Buy-Out and IPO Gibson Greetings Inc., the last category appears to be for long-term investment. ”We are not in it for the speed of Buck, Sir,’’said Simon.

While financial institutions have most of the attention and capital of the group, it starts to move in other areas.

With next month, it has invested nearly $ 50 million in many manufacturing and housing projects and one-Venture Capital Fund will soon start with a first group of $ 100 million.

In commercial banks, the group has 7 million, 60 per cent participation in the World Trade Bancorp of Los Angeles and $ 10 million, 28 per cent participation in the parent company of First Interstate Bank of Hawaii.

Insurance for homes and cars with a cost increase of 10 percent or more in some countries, and perhaps also become more difficult to obtain, after the staggeringly large losses for insurers of Hurricane Andrew and other recent disasters.

Losses this year, estimated at over $ 10 billion, comes after several difficult years for damage to the industry. And they come, while lower interest rates are reducing return on investment of insurance companies. Accordingly, analysts and industry leaders say, many companies are bottlenecks experienced cash in the next 12 months and will be under pressure to higher prices. An excuse for solar plexus?

Yet, say the lawyers of consumers, many insurance companies are much more healthy, they would have as the public might believe and try to use them as a pretext to disasters iron trough of public opinion.

The conflict has been stoked, if an internal memo from the American International Group, a large damage insurers, was published in The Washington Post. In him, JW Greenberg, Executive Vice President, wrote that Hurricane Andrew was “an opportunity for price increases now. Maurice R. Greenberg, AIG chairman and JW Greenberg father, “said the message’s meaning was out of context. Last month, the Insurance Commissioners of Florida and Louisiana, the unusual step of freezing AIG’s premiums. The debate on how consumers are concerned until the year of disasters - the largest edition of the insured loss in this century - goes beyond disagreement on the number of casting strides in areas of disaster in Florida, Hawaii and other countries. It is part of a continuing war between supporters of consumers and industry on how America should distribute the costs for major risks and insurers are whether the fair treatment of consumers.

At the heart of their conflict, the debate between defenders of consumers, on the one hand, and many economists and analysts on the other side of how the financial soundness of the insurance sector should be evaluated.

Some companies say moderation of price increases on the lines of personal insurance in countries bordering Texas to Florida and the East Coast, perhaps as far north as New Jersey. Prices may also be affected, California, where the disaster for the insurer to pay reinsurance for earthquakes. Nobody is safe, as many phrases could go in any state, industry analysts say, perhaps 5 to 15 percent.

One thing that could prevent price increases, analysts say, it would be a strong reaction from the public and regulatory authorities.

“Hurricane Andrew was a shock to the system,” said an executive of a large insurance company, insisted on anonymity. “Either the prices are going to have to go to something disasters in the States or companies will have to return to operation.”

He added: “But the assurance that the commissioners in California John Garamendi said:” With golly, I did not so that people suffer. “” Mr. Garamendi, an elected official, exasperated with the industry policy that calls by consumers, but say that many companies are another way of his political ambition. Teuerste ever disaster

According to an initial estimate of $ 7.3 billion loss in Florida, industry experts last week revised their estimates to $ 10.2 billion in Florida, more than an additional $ 500 million in Louisiana. These losses are twice as high as $ 4.2 billion in insurance, which was lost the nation’s most expensive storm, Hurricane Hugo in 1989.

While insurers still bring their breath after Hurricane Andrew and Iniki Hit Hawaii an additional cost of $ 1.6 billion, so the nation the third most expensive of the storm. And all this before losses on Los Angeles riots and flooding in downtown Chicago, as well as severe weather, hail and other disasters.

Overall, the industry expected to pay at least $ 16 billion in debt to disasters this year, according to the American Insurance Services Group, estimates industrywide damage resulting from natural disasters. Most insurers can return more than one-third of losses after taxes. The last four years, in which other losses such as the collapse of oil platforms and the earthquake in San Francisco, the most expensive of this century, on which the damage and accident reinsurance.

But this is not the only one that creates pressure losses, prices will rise, some analysts say, but long-term trends in the industry.

“Hurricane Andrew will not raise prices,” said Orin Kramer, an analyst and industry consultant in Fort Lee, NJ “But the greatest catastrophe insurance losses follow the story of five years, a total deterioration of the financial capacity and increased cash flow problems. “Losses insurance

Mr. Kramer drew attention to the magnitude of losses of the insurance industry - and the fact that the industry has paid more than it has taken, with premiums for all types of property insurance accidents. AM Best, the insurance rating companies concern Oldwick, New Jersey, said the industry has lost an average of almost 10 cents on the dollar underwriting during the last ten years.

In many years, companies more than the loss of income from investments. Since 1986, income from capital has covered those losses, but the industry has left little margin of 5 to 8 per cent.

John Snyder, Senior Vice President of AM Best, said that lower interest rates, damage and accidents should be to achieve capital income of only 3 to 4 per cent this year. With heavy losses this year, profits are more difficult to achieve, “he said.

During recent weeks, Wall Street has speculated, intensely whether the storm losses leading to higher rates of commercial insurance, the premiums charged to the company. The impact on industrial tariffs remains uncertain, many analysts say the losses are spread over an industry of 160 billion dollars of capital.

But Bruce Ballantine, a senior analyst at Moody’s Investors Service in New York, said a point, often in these discussions is that losses resulting from Hurricane Andrew have not been equitably between insurers. She declined proportionately on the segment of the industry that specializes in personal lines of insurance and perhaps a third of the entire sector of the capital. An eye on invested capital

Allstate and State Farm, for example, write Overall, about one third of the nation’s owner of the car and home. Allstate’s losses after tax in the amount of $ 1.1 billion to more than 20 percent of the company’s capital. State Farm’s $ 1.4 billion in the same losses by about 8 percent of the capital.

Insurance company stocks rose yesterday in the hope that the high losses of Hurricanes Andrew and Iniki, finally, the force would be a shame and accident insurers to raise their prices on a business trip insurance .

The demonstration in a large number of stocks highly prestigious insurance came to a publication of the Continental-Versicherungs-Gesellschaft, the losses incurred by him up to $ 200 million. Continental, which also said it was a reduction in the dividend for the first time since 1853, is not part of the rally and its share prices collapsed to $ 6125, $ 24

Just days earlier, Prudential Insurance quadrupled the gross amount of the loss estimates at more than $ 1 billion, an indication higher losses in the insurance sector than in the past Andrew. To industry experts, still uncertain, as many toll east of Florida, say they can be top $ 10 billion. Bad News is Good News

What strange, as it consults as a bad news, good news for damage and accidents. A clash seriously enough, experts say, cutting prices aggressively, including insurance premiums up 40 percent over the past five years. Wall Street was a turning point in the cycle of price fixing.

The shares of leading insurance rose sharply stocks, including American International Group, an increase of $ 7125, $ 101625, and Marsh & McLennan Companies, to $ 5.50, $ 89.

Others, also General Reinsurance, which jumped $ 8125 to $ 102.50; Chubb to $ 4.50, $ 79.25, St. Paul Companies, to $ 3375, $ 72, and CNA Financial, 3875 to $ 91, like Cigna, $ 3.25 to $ 50.75; Aetna, $ 1.50, $ 40875, and travellers , 75 cents, according to $ 22125th “This is a phenomenal rally,” said Orin Kramer, an economist and adviser an insurance company in Fort Lee, NJ

John H. Snyder, Senior Vice President of the Property Casualty division by AM Best, an insurance rating agency in Oldwick, New Jersey, said it would take months to be sure that the long-awaited turning point in the cycle pricing is going to take place. But he said it was clear that Wall Street thought, it has always been close.

“The message of Prudential Continental indicates that the damage is greater than all imagine,” said Snyder. “If it is a turning point in the cycle of price fixing, people only want to buy such stocks. The end of reinsurance –

John P. Mascotte, Chairman and Chief Executive of Continental, said yesterday that the company pretax loss of Hurricane Iniki in Hawaii, a total of $ 55 million. The company had previously estimated its losses from Hurricane Andrew would come to $ 55 million and in collaboration with the cost to purchase more catastrophe reinsurance coverage, costs related to the storm at $ 200 million for the third quarter.

The company also announced that it was out of reinsurance operations and its modest international operations to focus capital on the core activity. This leads to a further move of $ 120 million for the quarter. Mr. Mascotte, said the company was reducing the quarterly dividend on common shares by 25 cents to 65 cents per share.

Continental, a New York company $ 1.8 billion in wholesale or so-called surplus, writing commercial insurance and personal and has about $ 5 billion annual turnover .

“This measure is necessary for our company healthy,” said Mascotte. “We remain confident in the soundness of our strategy, the quality of our employees and our prospects for future success.”

The company also announced that its President and Chief Operating Officer, William E. Thiele, the company on December 31. Mr. Mascotte is capable of these positions.

A reduction in the dividend has been particularly hard to move Continental. The stock has been generally high because of its high level of dividends and since it is one of a handful of companies, it could not boast its dividends had declined during this century.

New Insurance Act that the elderly and sicker receive medical care affordable, are expected to accelerate a shakeout to $ 108 billion of commercial insurance industry.

The recently adopted law, adopted in New York this month, requires insurers to accept any person or company is small, and charge the same sentence, regardless of age, gender and health status of history. Vermont, Maine and Oregon have recently approved less stringent versions of this approach and Hawaii has long been a similar system. Other countries are facing such proposals.

Many insurers believe that the laws of the State to impose some enterprises, especially with limited resources, small or large, with only a small number of customers in the state. These companies have in the past, insofar as “Cherry bring” the healthiest candidates and their coverage at a lower price, so that the elderly and sicker customers to other insurers or without cover. Now that all must accept the increase, these insurers must increase their prices, and much younger, more healthy for our customers may decide to drop their policy.

With insurers small number of customers likely to be injured by a much greater assurance of someone with an expensive disease like cancer. More insurers are not only a risk more and more customers, they also benefit from economies of scale in the hotel.

No company has left New York, where the new law are not valid until April 1993. But Aetna Casualty and life, for example, to stop selling to small employers in Vermont, where he had only these few customers. And Chris Petersen, Senior Counsel for the Health Insurance Association of America, a trade group with 300 members, 80 percent of enterprises, he predicted less than commercial insurers in New York.

New York under the law of the state is now issuing the approval rate for commercial insurers, it is still too early to know how to increase insurance rates and how they react.

But Mr. Petersen said the law would mean higher prices for more than half of 500000 in New York, individuals and small groups of commercial insurance coverage and that 165000 of them might decide to fall on their reports.

Emily Crandall, a vice-chairman of the Guardian Life Insurance Company, with about 100000 people in New York is one of the biggest insurers public small groups, said that his company has not yet decided if the stay in New York, where it is 20 per cent of its clients. “We are not utilities,” she said. “We have a business-to-run”.

The man, work for large employers, as a general rule itself and use to ensure insurance companies only as a manager, are not affected by the state. And most health maintenance already accept all applicants and candidates for uniform rates of the state without laws.

Unlike New York, 33 states have increased limits for customers with costly illnesses. Most major commercial insurers say they can live with the limits.

The new laws of the State are only the latest problem for smaller insurance companies. They are also more large companies lose insurer can he afford to organize “Managed Care-networks”, that doctors and hospitals with an eye on limiting health care costs rise. Reduces rising medical costs , As some companies in the health, insurance businesses complete, others prefer from certain countries and have more insurance against individuals or small groups.

“Small businesses are history,” said Kenneth S. Abramowitz, a health care analyst at Sanford C. Bernstein & Company. “They have no purchasing power” to influence, hospitals and doctors. He predicted that 50 insurance companies and 400 organizations of health care, control of health care in 15 years, compared with 300 companies and 550 HMO’s this, most companies.

Analysts said that the new laws has not yet had a noticeable impact on the outcome. Most insurance companies have a number of sectors, among others, a life and non-life insurance and accident and health insurance. Insurance stocks were buoyed recently by the general economic trends, including lower interest rates according to Denis Callaghan, Alex.

In addition, Congress considers a rescue package for the oppressed savings and loan industry, estimates that the Bush administration could eventually cost $ 157 billion, more than 80 percent of the 3100 savings and Credit solvents and that half of them are in better health.

In addition, Congress considers a rescue package for the oppressed savings and loan industry, estimates that the Bush administration could eventually cost $ 157 billion, more than 80 percent of the 3100 savings and Credit solvents and that half of them are in better health.

The largest are flourishing with a variety of strategies, starting with the classics, such as mortgages, the most complicated and controversial, as Junk bonds”.”

Look, four of profitable institutions in Southern California, the largest savings and loan, the market for the nation. Everything is public.

At one end of the spectrum, Home Savings of America, the largest subsidiary of HF Ahmanson & Company in Los Angeles. Home economies, the nation’s largest savings institution, sticks almost exclusively on the collection of deposits through its subsidiaries and Adjustable rate mortgages, a strategy as conservative as everyone in the industry.

Like Home Savings, Great Western Financial Corporation is a traditional supplier credit. But Great Western, which is based in Beverly Hills, has diversified into consumer credit and credit card companies generally followed by commercial banks.

Savings and Loan Association of Downey Newport Beach is also believed himself a conservative institution. But he prospered and in a sector that has proved dangerous to many competitors: small buildings shopping malls.

At the other end of the spectrum, the Association for savings of Columbia, has been very successful investment in junk-bonds and other companies that some regulatory authorities and analysts too risky for a government institution insured deposits.

The success of the persistence of institutions more healthy illustrates the possibilities inherent benefits to the economy and the attraction of economies of the industry on some investors of the nation intelligent.

”I can not say that it is easier business,’’said Preston Martin, former vice-chairman of the Federal Reserve Board. ”But it’s always a big chance if you can keep costs down and manage the volatility of interest rates.”M. Martin is a member of a group headed by William E. Simon, the former finance minister, has acquired a number of failures and healthy savings banks in California and Hawaii.

While efforts to rehabilitate the industry, Home Savings, Great Western, Downey and Colombia are concerned about the Bush administration plan.

Home savings in a mat signalling which opposes the proposal of the hotel, savings and credit institutions must continue to pay far more than the banks for deposit insurance, asked Friday to leave the Federal Republic of Housing Savings Insurance Corporation and become a member of the Federal Deposit Insurance Corporation, deposits insured commercial and savings banks. Great Western, which has long expressed the same concern, a similar application last fall.

Two Home Savings and Great Western are also angry now invited to pay a large portion of the cost of Aufräumarbeiten”Probleme that we can not put in place”, deregulation Politik”wir strictly against, as Richard H.” Deihl, the chairman of the home page of savings and its parent company, he expressed last week.

Home Savings and Great Western It is expected that the long struggles of their complaints since bailout plan management depends heavily on income and performance bonuses deposit savings and credit institutions. More than 1200 savings and loans funds, the requirements of FDIC insurance.

Colombia and to a lesser extent, Downey, concerned that the crisis economies Congress could limit some powers of investment as part of deregulation.

In the capital, packed with high-paid lobbyists, some are respected. Others are feared. Most accounts, insurance intermediaries independent America, with a membership base of over 126000, with a call to the insurance can bring hordes of Washington, belongs to the category of fears.

In the capital, packed with high-paid lobbyists, some are respected. Others are feared. Most accounts, insurance intermediaries independent America, with a membership base of over 126000, with a call to the insurance can bring hordes of Washington, belongs to the category of fears.

”There is more confidence in the State of New Jersey as the only, there are banks across the country,”Senator William Proxmire, chairman of the Senate, the Banking Committee, pointed out in describing the order of their influence. Immunity late hives

A committee staff, given the factor of concern, said:”If we can help, we do not want a hive of results with a baseball bat and send all agents Ausschwärmen Senate.”

Despite his desire to avoid confrontation with the insurance industry, the congress was the sensation of ensuring the full entry into force in recent weeks.

In preparation for a possible vote of the Senate, the emblem of this week, in a controversial bill, which is new banks broad powers to sign the securities and investment funds to sell insurance agents wimmelte here last week to show their strength and efforts against banks, in their affairs.

In a two-day delay, 720 agents, each constituency Congress encamped on Capitol Hill.

According to the group Top-lobbyist, Paul Equale, government officials votes required lunch, many receptions and dinners, and all closed meetings with the senator and representatives of the invitation to be confined to banks in the insurance business. For all the bases

”We all Assembly members and all 100 senators, say that it is not in the best interest of consumers, to give new powers to the banks’ insurance,’’said Equale.

In fact, the driving force behind insurance representatives, Mr. Equale, 37 years old, a former government lawyer, is organizing the collection, last week and is known to be self-confidence, courage and close relations with many Top Democrats in both houses.

After his arrival, Mr. Equale all agents have in common a two-hour briefing last Tuesday, reunion, a video presentation with comments Slick packed with more than a half-dozen members of Congress, including Senator George J. Mitchell, Democrat of Maine, one of the main candidates at the next majority leader of the Senate.

Certains”bancaires in my country asks me why I specialist assistance in accordance banks, insurance,”the senator said in the video. ”I have a brother who is a related insurance agency business and a brother, a banker, and my brother is a business insurance agent called me.”

Mr. Mitchell’s brother Paul, operates his own insurance agency in Waterville, ME. HAS been in the public, there was another brother in the insurance sector, the brother of Senator Daniel K. INOUYE des Etats-democratic, is also a candidate for head of the majority of the Post Office.

In addition, several members of the house are or have been, insurance agents, including Norman Y. Mineta, Democrat of California, and three Republicans, Dan Burton, Indiana, John G. Rowland of Connecticut and Fred Grandy of Iowa.

Perhaps is the main strategic ally of insurance agents litigation course is Senator Christopher J. Dodd, Democrat of Connecticut.

Regarding banks, which the Senate plans to register before the Banking Committee of the month, Mr. Dodd a committee procedure for almost two days to find a compromise, that small banks limited access to certain assurances, and prevents at the same time the largest banks, like Citicorp, insurance in developing countries between networks.

Zurich American Insurance Monday a standing offer Rigging investigation and pay $ 153 million in restitution under a regime of New York, Connecticut and Illinois, a New York Attorney General Eliot Spitzer.

Under the settlement, $ 88 million will go to Zurich damage insured by offering Rigging Spitzer asserts that adding $ 39 million in sanctions go to New York State, Connecticut and Illinois while each get $ 13 million .

The village is part of the investigation by Spitzer Marsh & McClennan (MMC). Marsh, the largest nation injury brokerage Spitzer, settled last year for $ 850 million over allegations of bid rigging and price fixing as well as hidden commissions.

Zurich was one of the companies pencil sharpeners and government insurance Superintendent Howard Mills, in particular, participation in the insurance-Take-Bid.

Zurich is also adopt reforms and an apology, Spitzer said.

“Zurich is the willingness to acknowledge problems, adopt reforms and compensation to customers will help to advance the company contribute to the promotion of fair competition and full integration into the insurance sector,” said Spitzer.

Zurich Steve McKay spokesman had no direct opinion.

Earlier this month, Zurich agreed to pay nearly $ 172 million in a deal with the nine countries to resolve Rigging accusations of supply and price fixing in the commercial insurance market. Insured in 50 countries, $ 151.7 million in repayments of the colony of California, Florida, Hawaii, Maryland, Massachusetts, Oregon, Pennsylvania, Texas and West Virginia. These nine countries, another $ 20 million for investigative and attorney costs.

Monday municipal concerned the policy of Zurich “Finite-insurance” transactions. Spitzer cites an e-mail from a broker Marsh in Zurich Underwriter seeking a false bid for an insurance contract, “said Spitzer was headed at the American International Group Inc. E-mail: “Can you give me a layer of protection on this indication. It is an AIG renewal and AIG already quoted it also gives me just a bad higher price per occ. Attachment and then we can with it. ”

Spitzer of Zurich said, on condition that the false quote in one disappointment Marsh clients.

AIG was among the companies who claims to rig supply regulation, and four former AIG executives was less than 20 insurance executives and officers, have pleaded guilty to fees, Spitzer’s office said.

In February, AIG, one of the biggest in the world, insurance companies, has agreed to pay $ 1.64 billion to resolve charges earlier that deceptive accounting practices to mislead investors and regulatory agencies.

Zurich, in a statement quoted by Spitzer, acknowledged “some of his staff every two wounded acceptable practice and Zurich their own standards of conduct by integration into abusive practices and the tender” Finite reinsurance ” transactions “.

Spitzer said Zurich’s incorrectly used “Finite-insurance” to better control their finances. In 1998, Zurich has an insurance with another company, would be a loss of $ 70 million. In Deal, the reinsurance payment was returned to Zurich and a victory, “said Spitzer.

Bribe are a way for insurers to drum. An all-expenses paid trip to Hawaii is another.

He has some corner routine in the industry for insurers to shower expensive gifts, saying agents and independent brokers as a reward for managing the affairs of their own. These incentives are sometimes distributed, as sales at contests, brokers compete to sell, most policies.

A gift of more aggressive donor in the insurance business is Infinity Property & CasualtyIPCC nation, the second insurer of the so-called High-Risk-pilot. Insurers Alabama-based doles out Jetskis usual, gift certificates, Caribbean and Alaska cruise vacations take independent production goals.

Infinity focuses on the gifts as “incentives”, designed for agents to sign Infinity more customers. All Infinity 14000 agents who relies on the sale of its insurance policies are independent distributors, free hausieren on products of rival insurer.

To detractors, the incentive programs are really nothing more than hidden payments that the state authorities are in their orientation of the public inquiry very tawdry Assekuranz business practices. They say sales contests and incentive programs encourage independent agents for their own interests ahead of consumer purchases shares of the best car, at home or insurance protection of life.

“I find this very offensive and questionable,” said Robert Hunter, director of insurance with the Consumer Federation of America. “Some of them went far above the head.”

JD Howard, Executive Director of the Insurance Consumer Advocate network, said a problem with the assistance of turnover lies in the fact that officers rarely hidden not disclose these incentives to the sale of a business, insurance policies their customers.

“It is regrettable that the agent [,] is a consumer know-how to effect their own review of consumers,” said Howard.

The turnover of the contest are, however, that a large part of the sale price on a strategy of smaller insurers as Infinity, took $ 240 million in revenue during the third quarter increased by 26% a year ago. Part of infinity, which have 11% this year, the trade began Tuesday at $ 36.63.

Infinity has a specific website, where the agent can go to convert, “” they have earned Infinity demand from customers in a wide range of free gifts and services. “Infinity Easy Street” Web site is configured as an online repository reward for aggressive substances, with a restaurant row “and” Retail-Gasse. ”

An agent that amasses 1190000 points, for example, may win a trip of five to Maui night for two people, depending on location. A three-day cruise of the Caribbean can be had for 680000 points. A $ 25 gift certificate to FootLocker is 10000 points.

Infinity officials did not return several calls to discuss the turnover-contest. But during a conference call July, Wall Street analysts, business officials to discuss openly about competition. Indeed, Infinity executives were almost offers more plans, for which a direction of the aggressiveness of the Hispanic market in California.

“We have a large turnover of competition in the last six months of this year to concentrate in large countries,” said Infinity Chairman and Chief Executive James Gober. “Well, what we do, officials suggest a number of options, if certain production targets. It could be from a stay in the Bahamas or a cruise to Alaska. It could be, other precious, you know, as good prices. Gosh, have we lost Seadoos.

Seadoos People is a manufacturer of jet-skis.

Gober said other companies have also offered competitions turnover, but it did identify. However, he said Infinity was a pioneer in such a fury.

“I have on my hand, lift and say that we are guilty as charged, and to be honest, we perhaps probable, in my opinion, this leads, you know that some of these factors, because we were without doubt one of the largest companies, Where began towards the end of last year, “said Gober, during the call.

The conference call was held a few months ago the New York Attorney General Eliot Spitzer rockten the insurance industry by filing civil fraud charges against Marsh & McLennanMMC the nation’s largest broker of commercial insurance. The bulk of charges in connection with a dispute revolved around contingent commissions, juicy payments by insurers to brokers in return for the Labour leadership to them.

Since then, other countries, including California and Connecticut, ausfransen legal. Thus, although all major insurance companies and brokerage, including American International GroupAIG, Hartford FinancialHIG and ChubbCB, acknowledged, citations from several regulatory authorities.

Texas Attorney General Greg Abbott Rigging offers a conclusion of investigation, the Travelers Insurance Companies Inc Carrier as part of an agreement on the Travis County District Court, the company must pay $ 6 million in eight states and the District of Columbia, with Texas receiving $ 1.6 million of this amount. Travellers from east prescribed continued to participate in an offer Rigging orchestrated by the regime of insurance brokerage Marsh & McLennan.

The settlement requires passengers to reform its business practices, including disclosure to its customers the exact amount of compensation paid to insurance brokers. The Texas survey showed that passengers widespread at the tender Rigging misleading, agreements on prices and other systems on the market for commercial insurance. The regulation of companies and Nonprofits wrong in assuming the most competitive they have obtained commercial premiums are at your disposal.

“A free, open and fair market is crucial for the success of the economy of Texas,” said Attorney General Abbott. “Prohibited offers Rigging systems undermine the integrity of our market economy. We will continue working to protect and promote economic growth in Texas.”

Prior to this settlement, travellers overcharges paid in compensation by a group of federal insured, including those in Texas, were offering Rigging. The company has also adopted important reforms to its commandments and practices warrant. Passengers are required for harmony with the reforms and also disclose the actual level of payments to insurance brokers, on request of their customers and prospects insurance.

According to court documents, travellers conspired with brokers in a “pay to play” system and not to disclose commissions of the tariff quota “paid for insurance brokers. Designed brokerage Marsh & McLennan, the insurance business have the appearance of a competitive tendering process, legitimate political policies. Indeed, some insurers Marsh secretly designated there is also the market, but the results were actually insured excessive prices, non-competitive tenders. The competition regime has been successful because insurers such as travelers have earned the privileged status Marsh by the payment of commissions related to insurance brokers, but not to such payments.

For example, a large company retailing Texas on accidents policy was under-Bid manipulated the accounts. According to the prosecutor general of enforcement, Marsh asked another insurance to receive an offer higher than passengers, or Marsh & McLennan had secretly chosen “Travellers win the bid. There were policyholders potential appearance of real competition between companies. Soon, Vice-an insurance company quoting artificially inflated, so that travellers to “win” the account an amount, wrongly, is seen favourably in comparison with the higher command by other companies.