Canada’s Omega Insurance acquired by Bermudan capital firm
The acquisition of Omega Insurance Holdings Inc. by Bermuda firm Till Capital has been completed. The deal includes subsidiary companies Omega General Insurance Company and Focus Group, Inc. and pays shareholders $14.7 million plus some additional sums including a “true-up” to cover the change in book value since the deal was announced last year. The privately held insurance provider based in Toronto will continue to be headed by CEO Philip Cook.
31 charged in insurance fraud investigation
An investigation into insurance fraud has resulted in the arrest of 31 people in Florida. The Miami-Dade State Attorney's Office announced Wednesday that one of those arrested was public adjuster Jorge Fausto Espinosa who has already been charged with another alleged fraud from last year. Espinosa is charged with using his firm Nationwide Adjusters LLC to deliberately stage fires and floods at a number of homes. A number of homeowners are among those arrested. The combined losses from the two cases amount to many millions of dollars.
Report shows auto-braking cars have cut claims by 45 per cent
With self-driving cars about to go public in California a report from a leading research facility shows the potential for the insurance industry. Thatcham Research Centre in England which carries out studies for the UK insurance industry found that autonomous auto-braking systems already fitted to traditional cars have cut the level of insurance claims by 45 per cent. It says that all new cars should be fitted with the technology. Previous studies have suggested that the safety feature, central to self-driving vehicles, have cut claims by 20 per cent so this represents a large shift. The researchers say autonomous braking systems are the most important active safety feature they have seen for years.
East African insurance sector ripe for M&A
A report from Deloitte says that the insurance sector in East Africa is a prime target for mergers and acquisitions as investment from private equity firms increases the capacity of the industry. AFK Africa reports that competition has increased in the region and as more foreign insurers look to buy into the market the large players will lose their pricing advantage. There is then predicted to be a surge in M&A activity as insurers seek economies of scale. Insurance penetration is still low in many East African countries including Kenya, Tanzania and Uganda.
FEMA wants states to factor in climate change
US states that are affected by the annual hurricane season should include the effects of climate change in future disaster plans. That’s according to the Federal Emergency Management Agency which wants states to include climate change impact as a condition of the funding that they receive to mitigate risks. A number of Republican senators have already criticized FEMA’s stance and accused the agency of “unnecessary ideological-based red tape.” The argument against the plan is that the scientific evidence is not strong enough to be a condition of funding. NPR reports that FEMA has hit back at the criticism and says it is only requiring states to consider future risks not to have a climate change plan.
