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Weekly News Roundup, March 15

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In this week's news will talk about Chubb’s Greenberg Defends Issuing Appeal Bond, Senate Bill to open "floodgates of litigation" against insurers, and much more…

Why insurance is (still) keeping your mortgage rate high

Rising insurance rates are pushing up overall inflation, according to the head of the Federal Reserve. And that, in turn, could keep the Fed from cutting rates for even longer.

Inflation rose to 3.2% last month, frustrating the expectations of economists who had expected it to remain unchanged from January’s rate of 3.1%.

The unexpected rise has spurred worries that the Fed may have to wait even longer before cutting interest rates from their current 23-year high, according to a Financial Times report.

And rising insurance costs are a significant driver in keeping inflation high, Fed chairman Jerome Powell said during congressional testimony last week.

Bill to open "floodgates of litigation" against insurers

The American Property Casualty Insurance Association (APCIA) wants Senate Bill 256 to be vetoed.

“Senate Bill 256 will open the floodgates of litigation against insurance companies by establishing an onerous first-party bad faith law in the state,” APCIA warned. “Only a few other states in the US have enacted such laws. Higher losses and increased litigation mean higher costs for consumers and businesses.”

The warning comes in response to the “harmful bill” being passed by the Virginia General Assembly. APCIA is urging Governor Glenn Youngkin to veto the “misguided” legislation.

Nancy Egan, vice president of state government relations and counsel for APCIA, asserted: “Senate Bill 256 would lead to higher auto insurance loss costs, increased litigation, and could increase the number of uninsured drivers on the road if coverage becomes less affordable.

Brown & Brown swoops for DealerMax assets

Brown & Brown has acquired the assets of DealerMax through its F&I performance company, Brown & Brown Dealer Services (BBDS).

DealerMax serves customers across Pennsylvania and the broader Northeast region. It was established in 1982 by Jim Maxim, Sr., initially going by the name Maxim Automotive.

As part of the acquisition, the DealerMax team will join BBDS while continuing their operations from their current offices in Berwyn, Pennsylvania. They will report to Robert Hunter, president of automotive F&I at BBDS, with Jim Maxim, Jr. providing support through the transition period.

Chubb’s Greenberg Defends Issuing Appeal Bond

Chubb CEO Evan Greenberg, recognizing the criticism swirling around his company’s involvement in recently providing Donald Trump with a $91.6 million appeal bond, penned a letter to explain.

“When Chubb issues an appeal bond, it isn’t making judgements about the claims, even when the claims involve reprehensible conduct,” Greenberg said in the letter to brokers, clients, and investors.

“I realize how polarizing and emotional this case and the defendant are and how easy it would be for Chubb to just say no,” Greenberg added. “However, we support the rule of law and our role in it.

Inszone adds former The Hartford exec to board

Inszone Insurance Services has announced the addition of Stephanie Bush to its board of directors. Recently, Bush retired from The Hartford, where she held the position of head of small commercial and personal lines.

Prior to this, Bush’s experience included pivotal roles at both The Hartford and Travelers, where she progressed through various positions in commercial insurance product, underwriting, and field operations, eventually rising to chief product and underwriting officer for small commercial in 2013.