BestWeek Says Races May Impact Insurance Legislation

Although a legislative power shift is unlikely, the 2008 congressional campaign is nevertheless full of story lines for insurance industry observers. A number of races, including two in Minnesota, could prove key to federal insurance legislation in the 111th Congress.

BestWeek U.S./Canada looks at eight key Senate and House races, and how they may impact proposals such as the National Insurance Act —which would create an optional federal charter system of regulation—or the Homeowners Defense Act—which would create a federal catastrophe backstop.

Also in BestWeek U.S./Canada:

New A.M. Best Co. research finds the medical malpractice market should expect to see operating returns narrow, but remain profitable in 2008. The special report, titled "U.S. Medical Malpractice 2007 Market Review," notes while surplus expanded considerably in 2007, lower premiums and diminished underwriting performance due to increased competition is likely in 2008.

Also in BestWeek U.S./Canada:

GAAP results for health insurers in 2007 were good overall, but some companies have already lowered their earnings guidance for 2008 as a result of lower interest rates and high claims experience from the winter's flu season, according to an A.M. Best special report excerpt.

And in both editions of BestWeek:

The Best's Global Insurance Composite Index finished the week of May 8 down 14.08% from a year ago. The composite index reflects the performance of 168 insurance stocks. The week's top stocks were Tower Group Inc., Korean Reinsurance Co., Gainsco Inc., Royal & Sun Alliance Insurance Group and Scor.

The bottom five stocks were Kingsway Financial Services Inc., Phoenix Cos. Inc., National Western Life Insurance Co., Euler Hermes and Atlantic American Corp.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, call A.M. Best’s customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com.