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Global Atlantic Closes on $10B Manulife Reinsurance Deal

Global Atlantic, a subsidiary of KKR, has assumed responsibility for the investment risk related to the LTCI block and passed the LTCI claim risk on to another insurer through a “retrocession” arrangement, or a reinsurance arrangement for a reinsurance arrangement. Global Atlantic has not identified the retrocession provider. For the direct writer of a product, having access to reinsurance is like having access to a safety net. The LTCI component of the Global Atlantic-Manulife reinsurance deal might make some insurers more comfortable with the idea of selling LTCI policies. The U.S. LTCI market boomed in the 1990s. The market began to freeze over in the early 2000s, after new state LTCI rate stability rules took effect and the issuers discovered that they had based prices on overly optimistic assumptions. The John Hancock Building in Boston. Credit: John Hancock

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LPL Facing SEC Fine as High as $50M Over Texts, App Use

LPL Financial is facing a fine from the Securities and Exchange Commission of up to $50 million over its lack of compliance with records preservation rules tied to off-channel communications like text messages, according to the firm’s annual report. The fine is for “business-related electronic communications stored on personal devices or messaging platforms that we have not approved,” LPL’s annual report states. The firm added that it had ”not yet reached a settlement in principle with the SEC, and any settlement agreement remains subject to negotiation of the civil monetary penalty and definitive documentation.” Under the SEC’s proposed resolution, LPL says it would pay up to $50 million as a civil monetary penalty. News of this penalty was first reported by InvestmentNews on Friday. The firm recorded a $40 million expense in 2023 to “reflect the amount of the penalty that is not covered by our captive insurance subsidiary,” its annual report stated. On Feb. 9, the SEC charged five broker-dealers, seven dually registered broker-dealers and investment advisors, and four affiliated investment advisors for widespread and longstanding failures by the firms and their employees to maintain and preserve electronic communications, including WhatsApp messages and texts.

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Georgia House Approves Bill to Let Drivers Refuse to Sign Traffic Tickets

Article 0 Comments ATLANTA (AP) — Georgia lawmakers are seeking to change state law to say that officers don’t have to arrest people who refuse to sign traffic tickets after a church deacon died in August after initially refusing to sign a citation and struggling with an Atlanta police officer. The state House voted 156-10 on Wednesday to pass House Bill 1054, which removes the requirement for a driver to sign a citation, allowing an officer to instead write that someone refused to sign and then give the driver the ticket. The measure moves to the Senate for more debate. State Rep. Yasmin Neal, the Jonesboro Democrat who sponsored the bill, said removing the requirement to sign would reduce a source of conflict that leads to risks for officers and drivers. Officers could still choose to arrest traffic offenders, but they would not be required to do so. “No more arguments, no more fights. no more instances of officers risking their lives in an attempt to arrest someone for lower-level traffic crimes,” said Neal, a former police officer. “Everyone goes home safe at the end of the night.” Under the measure, people who refuse to sign citations would not be...

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Sand Hole Collapse at Florida Beach Kills Child, Can Happen Around US

Article 0 Comments FORT LAUDERDALE, Fla. (AP) — The collapse of a sand hole that killed a 7-year-old Indiana girl who was digging with her brother on a Florida beach is an underrecognized danger that kills and injures several children a year around the country. Sloan Mattingly died Tuesday afternoon at Lauderdale-by-the-Sea’s beach when a 4-to-5-foot-deep (1-to-1.5-meter) hole collapsed on her and her 9-year-old brother, Maddox. The boy was buried up to his chest, but the girl was fully covered. Video taken by a bystander shows about 20 adults trying to dig her out using their hands and plastic pails, but the hole kept collapsing on itself. Lauderdale-by-the-Sea, a small enclave north of Fort Lauderdale, does not have lifeguards at its beach, so there were no professionals immediately available to help. The first deputies arrived about four minutes after the collapse, with paramedics and firefighters arriving moments later, according to 911 calls released by the Broward County Sheriff’s Office on Wednesday. The sheriff’s office originally said that Sloan was 5 and her brother 7. Wails of anguish can be heard in the background of the emergency call as bystanders try futilely to rescue Sloan. Two of the callers identified themselves...

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People Moves: Bridge Specialty Adds Five to Dallas Office

Article 0 Comments A group of five experienced individuals have joined the new Bridge Specialty Insurance Brokerage – Dallas office. Janie Williams, broker, brings more than 30 years’ experience to Bridge Specialty Insurance Brokerage (BSIB) Dallas. Janie’s career spans both the retail and wholesale sides of the commercial insurance industry. She is not afraid to handle the toughest accounts with her background handling some of the more complex risks. Deborah Garner joins Bridge Specialty Insurance Brokerage (BSIB) Dallas as a broker. She began her insurance career with Liberty Insurance and Chubb in Detroit. Deborah is a key player in the success of our new Dallas operation, leveraging her extensive wholesale background in Texas. Deborah is well respected in the industry with both markets and retailers. Bridge Specialty Opens Dallas, Texas Office Robin Page joins Bridge Specialty Insurance Brokerage (BSIB) as a Vice President and Broker. Robin’s experience is in larger property and builders’ risk segments. He began his insurance career with Chubb, but has been in the wholesale segment for many years. Robin is well respected with the agents in Texas and beyond. Chris Contreras joins Bridge Specialty Insurance Brokerage (BSIB) Dallas from our sister company Texas Security General. Chris...

Coalition’s Cyber Threat Index 2024 Predicts Total Published Vulnerabilities to Increase by 25% in 2024 0

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Coalition’s Cyber Threat Index 2024 Predicts Total Published Vulnerabilities to Increase by 25% in 2024

Company recommends organizations address influx of vulnerabilities and exposures with human-managed detection and response tools San Francisco, CA (Feb. 21, 2024) — Coalition, the world’s first Active Insurance provider designed to prevent digital risk before it strikes, today published its Cyber Threat Index 2024, detailing insights on cybersecurity trends from 2023 and emerging threats businesses should be aware of in 2024. According to the report, Coalition expects the total number of common vulnerabilities and exposures (CVEs) to increase by 25% in 2024 to 34,888 vulnerabilities, or roughly 2,900 per month. “New vulnerabilities are published at a rapid rate and growing. With an influx of new vulnerabilities, often sprouting via disparate flagging systems, the cyber risk ecosystem is hard to track. Most organizations are experiencing alert fatigue and confusion about what to patch first to limit their overall exposure and risk,” commented Coalition’s Head of Research, Tiago Henriques. “In today’s cybersecurity climate, organizations can’t be expected to manage all of the vulnerabilities on their own; they need someone to manage these security concerns and help them prioritize remediation. We share these insights, as well as our Coalition Exploit Scoring System, in the hopes that it will make the complicated cyber ecosystem...

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Final DOL Fiduciary Rule Likely Out This Year

The Labor Department’s revised fiduicary rule proposal will likely be finalized this year, with a Jan. 1, 2025, effective date, according to ERISA attorneys. During their Inside the Beltway webcast Thursday, Fred Reish and Brad Campbell, partners at Faegre Drinker, agreed that Labor will likely file its revised fiduciary plan with the Office of Management and Budget for review in the next few months — sometime this summer. That timeline “seems to be driven, in part, by the elections,” Campbell said. The current administration “is going to want this rule in place by Jan. 1 so that regardless who wins, it’s an issue that’s already taken effect.” Two of the most controversial sections of the rule continue to be the “definition of a single recommendation as fiduciary advice, and the impact [of the rule] on independent insurance agents,” Reish stated. The comment period on Labor’s plan ended Jan. 2. Labor has been busy reviewing more than 19,000 comments. Campbell, a former head of Labor’s Employee Benefits Security Administration, stated on the webcast Labor’s plan is ”extremely controversial.”

Auto Insurance Rates to Increase as the Transition to Electric Vehicles Becomes Law in Canada 0

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Auto Insurance Rates to Increase as the Transition to Electric Vehicles Becomes Law in Canada

Electrification 2035 report: Morningstar DBRS Chicago, IL (Feb. 12, 2024) – Morningstar DBRS has released a commentary titled “Electrification 2035: Auto Insurance Rates to Increase as the Transition to Electric Vehicles Becomes Law in Canada,” which discusses the effects that the Electric Vehicle (EV) Availability Standard announced by Canada could have on automobile insurance premium rates as the transition to 100% zero-emission vehicle sales targets gains momentum. The commentary highlights the following key points: As Canada’s automobile landscape transitions, EV buyers should expect to pay more for insurance when replacing internal combustion engine (ICE) vehicles with EVs. Insurers will also have to adjust their pricing models as more EV claims data are generated. EV owners in the UK already face higher premium rates and, in some instances, denial of coverage as insurers adjust their pricing models. This trend could manifest in Canada over time. Repairs and replacement parts for EVs are very expensive, prompting some insurers to total damaged vehicles instead of attempting to repair them. Auto insurance rates are highly regulated in Canada, which may help mitigate the pace of potential rate increases. “For EV drivers in Canada, a silver lining might be found in the highly regulated Canadian...

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Texas Governor Names Ladner Chair, Appoints Houston To Risk Management Board

Article 0 Comments Texas Governor Greg Abbott has appointed Jeffrey Houston to the Risk Management Board for a term set to expire on February 1, 2025. Additionally, the Governor named Gerald Ladner, Sr. chair of the board. The Board coordinates, monitors, and directs information resources management within state government. Houston of Dripping Springs is senior vice president at Mondee Holdings, Inc. in Austin. He is a member of the Chartered Financial Analyst (CFA) Society of Austin and former member of the CFA Society of Chicago. He is president of the Terrascena Property Owners Association. Gerald Ladner, Sr. of Austin is a semi-retired property & casualty insurance company senior executive. His 42-year career included serving as vice president of Strategic Agent Partnerships and External Affairs, vice president of Sales, and Regional President for State Auto, a new division of Liberty Mutual. He also served as regional vice president for Zenith Insurance Company and Zurich North America. He is an Independent Board Director for Educational and Institutional Insurance Administrators, Inc. and member of the Independent Insurance Agents of Texas, Insurance Council of Texas, and the InfraGard National Members Alliance, an FBI-affiliated organization dedicated to the strengthening of national security and community resilience....

Canada’s Auto Theft Crisis Continues: Équité Association Auto Theft Trend Report 0

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Canada’s Auto Theft Crisis Continues: Équité Association Auto Theft Trend Report

A recent study finds more than 80% of Canadians say the rise in auto theft makes them concerned about the increase in crime in their community Toronto, ON (Feb. 6, 2024) – Équité Association has released its 2023 Auto Theft Trend Report, which illustrates the continuation of the national auto theft crisis, following a historically high year in 2022. In Canada, a vehicle is now stolen every 5 minutes. Between 2021 and 2023, auto theft trends increased sharply in Ontario (up 48.2%), Quebec (up 57.9%), Atlantic Canada (up 34%), and in Western Canada (up 5.5%). “These trends show that the national auto theft crisis is continuing,” says Terri O’Brien, President and CEO of Équité Association. “Canadians are feeling vulnerable and the majority of us are especially concerned about personal safety and the safety of our communities. Criminals are becoming more brazen and are increasingly resorting to violence as witnessed by the significant increase in car-jackings and owner-interrupted thefts.” Auto theft in Canada continues to be viewed as a low-risk/high-reward opportunity for criminals, regardless if the vehicles are for export or domestic resale. Illegal profit margins are very high and the risk of prosecution is considerably low. However, there has been...