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Mastercard’s £200 Million Settlement in Class Action Suit Gets Court Scrutiny

Article 0 Comments Mastercard Inc. unfairly reduced a £10 billion ($12.6 billion) class action case to a settlement of just £200 million, according to the firm that funded the lawsuit. The credit-card company “skillfully maneuvered” claimant Walter Merricks and his lawyers by offering an inferior settlement to end the case, according to the litigation funder Innsworth Advisors Ltd. The lawsuit alleged Mastercard charged consumers and businesses too much to use its cards. “To the extent that Innsworth’s submissions make poorly aimed pot-shots at the negotiation process, they are hopeless,” lawyers for Mastercard countered. “Innsworth’s interests lie in maximizing its commercial recovery even if that entails a high-risk gamble,” they said arguing the settlement is fair and reasonable. The legal drama follows the settlement in what was once the country’s largest class action claim over the amount Mastercard charged consumers and businesses to use its cards. Merricks’ lawyers have since acknowledged that “there was an overclaim” in his suit. The case highlights the tension facing courts in cases meant to maximize returns for consumers at a time when litigation funders are betting on a rise in class actions in the UK. The outcome of the case will likely set a precedent...

Cost of historic Calgary hailstorm continues to rise: IBC 0

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Cost of historic Calgary hailstorm continues to rise: IBC

Insurers making good progress supporting customers with claims and helping residents recover Toronto, ON (Feb. 14, 2025) – The tally for Calgary’s record-breaking hailstorm last August continues to rise, with total insured losses now estimated to be $3.25 billion, according to Catastrophe Indices and Quantification Inc. (CatIQ). The storm is the second-costliest disaster in Canadian history for insured losses and resulted in more than 130,000 insurance claims. Despite the enormous volume of claims that resulted from the hailstorm, Insurance Bureau of Canada (IBC) reports that over the past six months, insurers have made good progress helping affected residents recover and rebuild following the disaster. The majority of auto insurance claims – which represent more than half of all claims from the hailstorm – have been completed. Alberta’s insurers brought in adjusters from across the province to help expedite vehicle assessments and repairs. Total insured damage to vehicles is now estimated to be nearly $1 billion. The damage was so extensive that roughly half of all vehicles damaged were total losses, meaning that the value of the vehicle was written off and customers opted for cash payouts in lieu of repairs. Nearly 60,000 homes in the Calgary area were impacted. The...

Knowledge on Mute: How WFH Makes Your Company Forget What It Knows 0

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Knowledge on Mute: How WFH Makes Your Company Forget What It Knows

By Joseph D’Souza, Founder & CEO, ProNavigator — 2020 was a remarkable and noteworthy year in history, especially for businesses and their employees. Many businesses found out that they can remain at near peak productivity with their employees working from home (WFH), while many others found out that they cannot. It also added wrinkles to issues around the security of intellectual property. How can companies safeguard and protect their systems from attack when security needs to be deployed across the internet for all employees while they are at home? There is another new risk for companies that they may not be aware is occurring due to WFH, and that is an acceleration in the loss of institutional knowledge. “My cat is now my official productivity consultant. He stares disapprovingly at me whenever I take a break, which is surprisingly effective.”― An anonymous Work From Home employee In a prior article, I went into more detail about what institutional knowledge is and where it resides (it is documented somewhere or it resides in someone’s head and is undocumented). In an office environment, it is very common for employees to talk with each other. This is called the Water Cooler Phenomenon and while...

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Trump’s Hiring Freeze Throws Wildfire Fighters Into Disarray

Article 0 Comments Federal firefighters have found their jobs on the chopping block as a result of US President Donald Trump’s executive orders, with a hiring freeze simultaneously blocking reinforcements in the aftermath of the Los Angeles wildfires and ahead of the upcoming fire season. “I know multiple people who were supposed to start work on Monday and were not able to,” said Rachel Granberg, a firefighter who serves as representative for the National Federation of Federal Employees (NFFE), in an interview. A US District Court judge on Feb. 12 cleared the way for Trump’s buyout offers to millions of federal employees, overcoming a lawsuit by labor unions. Granberg warned that without an exemption to the Trump administration’s widespread hiring freeze, “we’re not going to have fire crews fully staffed.” Potential reductions to the approximately 18,000 federal firefighters, who are trained to battle blazes deep inside forests as well as at the intersection of cities and nature, would come at a time when their work has never been more crucial. Rising temperatures are contributing to faster-burning fires and ensuring blazes occur more frequently and torch more land. Climate change has also extended the burning season by two months in the...

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11 Steps for Referring to a Fellow Professional

As a financial professional, you can’t do everything. You might think you can, but licensing might be your first hurdle. If you are licensed to sell insurance, you are not licensed as a CPA to give accounting advice. In this circumstance, you might see the need to suggest they consult a fellow professional. How can you do this, both keeping the interests of your client foremost and not getting into trouble down the road?

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Aviva’s India Arm Hit With $7.5 Million Fine for Fake Invoice Scheme, Order Shows

Article 0 Comments Indian authorities have ordered British insurer Aviva’s local unit to pay $7.5 million in back taxes and penalties after an investigation found it created fake invoices to pay illegal commissions and claimed incorrect tax credits, an order shows. The tax demand is significant for Aviva’s India business, which recorded a profit after tax of only $10 million in the 2023-24 financial year. Aviva also faces stiff competition from rivals in India’s insurance market. To grow its business, Aviva India paid about $26 million between 2017 and 2023 to vendors who purportedly provided marketing services, but they were only a front to give Aviva’s agents excess commissions beyond regulatory limits, Indian tax authorities alleged in an August 3 notice Reuters reported last year. Using the clandestine system of fake invoices and cash payments, Aviva incorrectly claimed tax credits and evaded $5.2 million in taxes, authorities had alleged. After hearing Aviva’s defense, joint tax commissioner Aditya Singh Yadav ruled the company evaded tax of around 326 million rupees ($3.8 million), which it must pay with a 100% penalty, totalling 653 million rupees, or $7.5 million, according to a February 5 order reviewed by Reuters that has not been made...

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California Insurance Commissioner Rejects State Farm’s 22% Rate Request

Article 0 Comments California Insurance Commissioner Ricardo Lara did not approve an emergency, interim 22% rate request from State Farm, instead calling a meeting with the carrier to get some answers about the carrier’s financial situation and more. State Farm General earlier this month asked the California Department of Insurance to immediately approve interim rate increases, including 22% average for homeowners. The carrier, the state’s top homeowners insurer, is partly blaming the devastating Los Angeles wildfires for the request. As of February 14, the carrier reported roughly 11,400 total home and auto claims, paying out more than $1.35 billion. In a letter Lara issued on Friday, he wrote: “Under the strict review laid out by Proposition 103, the burden is on State Farm to show why this is needed now. State Farm has not met its burden.” State Farm responded to a request for comment with a statement: “We are very disappointed the Commissioner ignored his department’s recommendation to take the critical and necessary step to approve State Farm General’s request for interim rate increases associated with our June 2024 filings.” According to the statement, by not approving the request it “sends a strong message to State Farm General about...

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California Wildfire Mitigation And Recovery Bill Package Introduced

Article 1 Comment California Insurance Commissioner Ricardo Lara and a group of state lawmakers are pushing a 10-bill legislative package designed to improve disaster preparedness and help protect wildfire survivors. The bills intended focus are on consumer protection, climate resiliency and market strength. Among the proposals are a statewide grant program to assist with wildfire hardening, protections for businesses against insurance non-renewals and measures to maximize insurance claim payouts by limiting public adjuster fees. The bills are: The California Safe Homes Act authored by Assembly Member Lisa Calderon provides state-tax-free funds to assist residents in purchasing fire-rated roofs and to develop non-ignition zones around properties. The act would establish a grant program at the California Department of Insurance using existing funds. The Business Insurance Protection Act, jointly authored by Senators Sasha Renée Pérez and Susan Rubio, aims to extend existing protections by broadening the commissioner’s ability to issue an insurance non-renewal and cancelation moratorium after emergency declarations following wildfires to include commercial policies, covering businesses, homeowners’ associations, condominiums, affordable housing units and non-profits. The Insurance Payment Protection Act (AB 597, authored by Assembly Member John Harabedian) is designed to ensure that wildfire survivors receive the maximum funds from their insurance...

iA Financial Group Announces the Acquisition of Global Warranty 0

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iA Financial Group Announces the Acquisition of Global Warranty

Quebec City, QC (Feb. 4, 2025) – iA Financial Group is pleased to announce the acquisition of Global Warranty, a group of companies that are important independent warranty providers and administrators in the used vehicle market in Canada. Founded in 1987, Global Warranty does business with a network of over 1,500 automotive dealerships and more than 400 authorized repair centres across the country. Headquartered in London, Ontario, Global Warranty is a leading provider of vehicle warranties and other vehicle protection products. Global Warranty protects customers with warranty packages that are insured and provides excellent client service. Global Warranty has been a Better Business Bureau (BBB) Accredited Business since March 1997 and enjoys a BBB Accredited Business Rating of A+. “We couldn’t be more pleased with the acquisition of Global Warranty. It is a well-run organization with a strong reputation and we are pleased to welcome this highly professional team into iA Financial Group,” said Gwen Gareau, Senior Vice-President, iA Dealer Services and iA Auto Finance. “This will increase our presence in the used vehicle warranty market, with long-standing operations in London, where our subsidiary Lubrico Warranty is also based.” “The acquisition of Global Warranty fits perfectly with iA Dealer Services’ growth...

Farmers Mutual Hail to Acquire Palliser Insurance 0

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Farmers Mutual Hail to Acquire Palliser Insurance

West Des Moines, IA (Feb. 4, 2025) — Farmers Mutual Hail Insurance Company of Iowa (FMH) is pleased to announce the acquisition of Canadian company Palliser Insurance. Palliser is a leading crop hail insurance provider headquartered in Saskatoon, Saskatchewan, Canada, offering crop hail insurance across Western Canada, supported by the industry’s largest network of agents and adjusters. Farmers Mutual Hail previously had a 20 percent share in the company, with FMH leaders serving on Palliser’s Board of Directors. Shannon Rutledge, FMH president and CEO, commented, “I am excited about this partnership and the impact it will have as we continue to expand and diversify our footprint. The regional expertise, knowledge, and accomplishments that the Palliser team brings with them will contribute to our long-term strategy of strengthening and enhancing our core crop insurance business.” Rutledge added how this move was a good fit for both companies as Palliser has been a partner company with FMH for over three decades, and FMH will continue to support Palliser’s ability to expand and grow their relationships. This is FMH’s first acquisition of a non-U.S.-based company. “FMH has been a valued business partner with Palliser since 2008, recognizing and respecting our important legacy, role,...