Bond insurers hit by Puerto Rico debt concern
Shares in bond insurers Assured Guaranty, MBIA and Ambac Financial fell Monday as concern grew over Puerto Rico’s solvency. The Wall Street Journal reports that the country is due to make debt payment tomorrow but that it’s likely to be missed. Puerto Rican governor Alejandro Garcia Padilla raised concerns over country’s ability to service its debt in full leading to the price of its bonds falling. The government must approve a new budget Tuesday.
Boston’s Olympics would be the “most insured” ever
Boston’s bid to host the 2024 Olympic Games includes a provision for $128 million in insurance premiums. The latest version of the city’s plan for the games was revealed Monday and exceeds the insurance coverage proposed by Chicago when it bid for the 2016 event. Meghan Burke of law firm Mintz Levin told the Boston Herald: “What we’re looking at is making these the most insured games ever. It’s a top priority here that we don’t expose the public to needing to make any expenditures because of these obligations.” The proposed coverage includes $475 million for event cancellation, $2 billion for surety and performance bonds and between $50-$100 million for sponsors failing to pay.
Berkshire Hathaway granted New Zealand license
Warren Buffet’s Berkshire Hathaway has further increased its global footprint having been granted a license to underwrite property and casualty insurance in New Zealand. The Auckland office of Berkshire Hathaway Specialty Insurance Company is headed by Cameron McLisky whose experience spans many years working for
AIG in Asia-Pacific and the UK. The firm now has five offices in the region including Auckland, Hong Kong, Melbourne, Singapore, Sydney, along with multiple locations in North America from Toronto to San Francisco.
Bitcoin technology can help to combat insurance fraud
Digital currencies may still be a mystery to the masses but proponents of Bitcoin and the other players in the burgeoning market are convinced that they are only going to become more mainstream. In the meantime a start-up based in London is using the blockchain technology behind Bitcoin to combat insurance fraud. Everledger is the brainchild of Leanne Kemp who has a background in insurance and jewelry and the company operates a permanent registry for diamond certification and related transaction history. It enables owners, insurance companies and law enforcement to verify ownership. The firm can offer a similar service for almost any asset with a unique and indestructible unique identifier. Four major UK insurance companies are already using the service to track and verify asset ownership before settling claims.
