Bill would allow RRGs to write property cover

A bipartisan group of federal legislators introduced legislation last week that would allow risk retention groups to write commercial property coverage. The Risk Retention Modernization Act of 2010 also would provide a federal dispute resolution process in cases where RRGs believe they are being improperly regulated by nondomiciliary state regulators. The Risk & Insurance Management Society Inc. and Self-Insurance Institute of America Inc. hailed the introduction of the bill. About 250 RRGs currently are in operation.

Ariel Chairman, CEO Kramer steps down

Ariel Holdings Ltd. Chairman and CEO Don Kramer has stepped down, the Bermuda-based reinsurer said Friday. George Rivaz, who has been president of Ariel Holdings since 2008, has been named CEO. Mr. Kramer, a Bermuda insurance veteran who founded Ariel in 2005 after raising approximately $1 billion from private equity investors, will become nonexecutive chairman of the company. Mr. Rivaz will continue in his role as nonexecutive chairman of Ariel Reinsurance Ltd. and Atrium Underwriting Group, the company's two principal operating subsidiaries, the statement said. Privately held Ariel had a market capitalization of $1.7 billion at year-end, having reported record profits for the recently concluded fiscal year. Mr. Kramer did not immediately respond to a request seeking further comment.

Insurers oppose Homeowners' Defense Act

Insurer and reinsurer groups reiterated their opposition to a bill that would have the federal government guarantee debt issued by eligible state catastrophe insurance programs that cover homeowners insurance, saying it is unnecessary. Two House Financial Services Committee subcommittees held a joint hearing last week on the Homeowners' Defense Act of 2009. Among other things, the bill introduced last May would establish a National Catastrophe Risk Consortium to maintain an inventory of catastrophe risk obligations held by state reinsurance funds, state residual insurance market entities and state-sponsored natural catastrophe insurance providers. It then would issue securities linked to catastrophe risks insured or reinsured through the consortium's members. The U.S. Treasury Department would guarantee the debt.

Slaughterhouse illness caused by injury: Court

A slaughterhouse worker with brucellosis, a blood contamination caused by exposure to a bacteria carried by domestic animals, suffered an injury and not a disease, Iowa's Supreme Court has ruled. In IBP Inc. vs. Lee Burress, the meat packer employer argued Mr. Burress suffered from a disease, which barred his workers compensation claim because Iowa has a one-year statute of repose for disease claims. Mr. Burress worked at an IBP plant from 1987 to 1997 killing hogs, among other jobs, and cut himself on various occasions. Six years after leaving the company, he learned he had brucellosis and filed a claim. While a district court said Mr. Burress suffered from an occupational disease, a state appellate court found that substantial evidence supported a commissioner's determination that he was entitled to total permanent disability benefits.

Europe considers options for catastrophe coverage

The European Commission is launching an initiative it hopes will lead to improved insurance protection for natural catastrophes, particularly flooding, in Europe. Michel Barnier, E.C. commissioner for internal market and services, announced the initiative last week at a meeting of the European Parliament.

RIMS chooses Los Angeles for 2013 conference

The Risk & Insurance Management Society Inc. said its 2013 conference and exhibition will be held at the Los Angeles Convention Center. The April 21-25, 2013, event will be the association's 51st annual conference. This year's conference will be held April 25-29 in Boston. Next year's gathering will be held May 1-5, 2011, in Vancouver, British Columbia. RIMS 2012 is set for April 15-19, 2012, in Philadelphia.

Property/casualty rates fall in February: MarketScout

U.S. commercial property/casualty insurance rates declined 5% in February compared with a year earlier, MarketScout said. During the past six months, P/C rates have fallen 4% to 5% each month. Insurers of large accounts of up to $1 million in premiums saw rate declines that ranged from 5% in January to 7% in February, which MarketScout attributed to an abundance of insurers targeting large accounts as well as a reduction in exposures.

Noted

Chartis Europe Holdings Ltd. has named Alexander Baugh to the new position of president and chief executive officer as the insurance group prepares for Solvency II....Jonathan Zaffino has joined Marsh Inc. as its U.S. global risk management casualty practice leader in New York.