Global insurer cuts executive wages
Top executives at global insurance company
Zurich received lower rates of compensation in 2015 its annual accounts show. With profits under pressure from higher claims, especially from its Asian markets, the insurer slashed pay for its top management team from U$55.4 million in 2014 to $22.6 million last year (headcount was one person lower at 12 executives.)
The firm’s chief executive, Martin Senn, was paid $2.52 million a cut of more than two-thirds from his 2014 compensation. Senn left the firm suddenly in December and new CEO Mario Greco begins his new role Monday.
Insurers disappointed at sharp rise in regulatory fees
In a recent report by Deloitte, regulatory changes were seen as the largest short-term disruptor to the global insurance industry. That is certainly the case in the UK where the financial regulator is imposing a sharp rise in fees on the sector. The Prudential Regulatory Authority is proposing to raise its industry charge for ongoing regulatory activities by an average of 4.7 per cent, but the cost to general insurance companies is set to jump by 7.7 per cent.
In a statement, the International Underwriting Association says it is disappointed by the regulator’s decision. IUA Director of Market Services Chris Jones, said: “Substantial increases of this size are a major concern for London Market companies. Regulatory costs in the UK are already high in comparison to other European countries and this further rise will affect our industry’s ability to attract inward investment.”
Over the past four years, the overall fee increases imposed on general insurers in the UK for conduct regulation have been in excess of 50 per cent the IUA says.
Real estate insurance body appoints new chairman
The body which provides mandatory errors and omissions insurance coverage to real estate brokers in British Columbia has appointed a new chairman. Scott Veitch, managing broker of Century 21 Veitch Realty in Creston will head the Real Estate Errors and Omissions Insurance Corporation.
Nebraska insurer counts cost of Obamacare
Blue Cross Blue Shield of Nebraska has suffered a large loss from its participation in the Affordable Care Act. The insurer lost $31 million in 2015 on higher claims and lower federal support. Chief risk officer Jerry Byers says it may take two or three years to return to break-even. He told the World-Herald that the loss was “a financial punch in the stomach.”
Byers pointed to the federal “risk corridor program” which was only 12.5 per cent funded by Congress. He says that the insurer would have recorded a $17.3 million pre-tax gain in 2015 had the program been fully funded.
