ModaHealth Plan Inc. willexit Alaska's individual medical market. The company will stop offering individualmedical policies both on and off the exchange, effective Jan. 1, 2017. Thecompany's other medical and dental lines of business in the state will not beaffected, it said in a news release posted on State of Reform. Premera BlueCross Blue Shield will be the only company selling individual health plans inthe state upon Moda Health Plan's exit, the state Division of Insurance said.
UnitedHealthGroup Inc. sparked fresh worries about the viability of theAffordable Care Act's exchange system when it announced plans to exit a host ofstate marketplaces, calling them too risky and unpredictable. UnitedHealth'sexits from state exchanges emphasize the company's shift away from its coreinsurance business and toward an Optum-driven future as a health careconglomerate.
Six U.S. jurisdictions will be from hundreds ofinsurance companies on the diversity of their governing boards and theirvendors. The California Department of Insurance announced the initiative andidentified the other jurisdictions as Minnesota; New York; Oregon; Washingtonstate; and Washington, D.C. Insurance commissioners from those jurisdictionssent out letters to 600 insurers, notifying them of the survey.
Driverless cars could pose a threat to the autoinsurance industry, BerkshireHathaway Inc. Chairman, President and CEO Warren Buffett said in aninterview withCNBC. While the emergence of technology that would make driving safer "isvery pro-social," Buffett said it would negatively impact auto insurancewritten.
The insurance-linkedsecurities market saw "the highest volume ever placed during the firstquarter" as total issuance reached about $2.22 billion in the recentquarter, Munich Resaid in its latest ILS market update. Total issuance in the recent quarter wasabout $500 million higher than the first-quarter 2015 volume as U.S. wind, U.S.earthquake and Japan wind exposure drove issuance. No new sponsors entered themarket in the first quarter.
CanyonCapital Advisors LLC released a comparative compensation analysis on thecompensation of Ambac FinancialGroup Inc.'s president and CEO, Nader Tavakoli, and its boardversus corresponding compensation at Ambac Financial's peers.
Florida consumers will see higherinsurance rates in 2017 and onward as a consequence of the abuse ofassignment of benefits from water loss claims, the Insurance Journal reported, citing CEOBarry Gilway and Chief Risk Officer John Rollins. Insurance executives andindustry experts echoed the sentiment and warned that the impact would hurt theoverall Florida market especially in the event of a serious catastrophe.
In executive moves, QBE North America announced thatRussell Johnston will join QBE as CEO of North American operations. QBE NorthAmerica is part of QBE InsuranceGroup Ltd.
Marsh& McLennan Cos. Inc. unit Victor O. Schinnerer & Co. Inc. Mark Smith as chief underwritingofficer.
andAmTrust Financial ServicesInc. reported their earnings results. Markel Corp., EchelonFinancial Holdings Inc., Federated National Holding Co. and are also expected torelease their financial results today.
Clickhere to view a snapshotof financial results reported May 2 by insurance companies.
In other parts of the world
agreedto acquire BlackRockInc.'s U.K. defined contribution platform and administrationbusiness, which has approximately £12 billion of assets.
The day ahead
Early morning futures indicators pointed to a lower openingfor the U.S. market.
In Asia, the Hang Seng was down 1.85% to 20,676.94. InEurope, around midday, while the FTSE 100 was down 1.15% to 6,169.88, theEuronext 100 was lower by 1.84% to 856.58.
On the macro front
The Motor Vehicle Sales report, Gallup US ECI and Redbookare due out today.