Friendly fire: the Overseas Private Investment Corp. is drawing heat from both conservatives and liberals. But insurers - some who compete with OPIC - are among its biggest supporters

Article Abstract:

Some politicians and interest groups are calling for the closure of the 26-year-old Overseas Private Investment Corp (OPIC), despite its robust profits and strong reserves. It posted a $209 million profit in 1996 and has $2.7 billion in reserves. The company is also prompt in paying claims and recovers 98% of such claims from third parties, aside from handling a diversified risk portfolio. However, its critics claim that much of its profit was derived from interest on US securities, with US taxpayers in effect providing insurance and financing to big corporations. They also say the OPIC competes with the private sector and offers sweetheart deals to large companies taking business overseas.

Investment advice, Investment Advisory Services, Investment advisers, Public opinion, Overseas Private Investment Corp.

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Banks set their sights higher

Article Abstract:

Banks are no longer just interested in selling insurance but are now forming and underwriting their own insurance policies. Five major national banks have established captive reinsurance subsidiaries while another bank is planning to offer homeowners insurance to be part of a mortgage package. Banc One has launched a captive mortgage reinsurance subsidiary. The Glass-Steagall Act prevents banks from directly underwriting insurance. However, they have circumvented this by forming captive reinsurance subsidiaries which is allowed by Office of the Comptroller of the Currency.

Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, INSURANCE CARRIERS, Reinsurance, Reinsurance Carriers, Banking industry, Analysis, Services, Banks (Finance), Bank insurance business

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Fighting the client

Article Abstract:

The 100 lawsuits filed by Exxon Corp. against more than 250 insurance companies worldwide to recover the cleanup costs from the Exxon Valdez oil spill exemplifies the growing propensity for policyholders to initiate legal proceedings against their insurers in order to recoup damage losses. Insurance industry representatives blame the permissiveness of the legal system which they claim leaves insurance companies extremely vulnerable to policyholder suits.

Cases, Insurance industry, Petroleum industry, Liability for environmental damages, XON, Exxon Mobil Corp.

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