GE accused of hiding billions in losses in its insurance business

General Electric | August 19, 2019

GE accused of hiding billions in losses in its insurance business
An accountant who gained fame for blowing the whistle on Bernie Madoff’s Ponzi scheme has accused General Electric of hiding nearly $40 billion in losses in its long-term care insurance business. General Electric’s stock plunged more than 11% Thursday after forensic accountant Harry Markopolos released a report accusing the conglomerate of fraud. Markopolos said that the alleged books-cooking was the largest case of accounting fraud he and his team had ever investigated, CNN reported. “In fact, GE’s $38 billion in accounting fraud amounts to over 40% of GE’s market capitalization, making it far more serious than either the Enron or WorldCom accounting frauds,” Markopolos wrote in the report. Enron’s fraud scandal bankrupted the energy company in 2001, while telecom WorldCom was bankrupted in 2002 after its fraud was revealed, CNN reported.

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INSURANCE TECHNOLOGY

DRC Releases Enhanced Product APIs for its RS X Rating solution.

Decision Research Corporation | November 06, 2020

Decision Research Corporation (DRC), a leading provider of enterprise software solutions for the P&C insurance industry, announced today the release of enhanced Product APIs for its RS X Rating solution. RS X Rating empowers business users and subject matter experts by allowing them to model, design and configure new insurance products using a familiar, easy-to-use Excel® interface. DRC's release of new Product APIs for RS X Rating now allows even complex and custom products to integrate effortlessly with third-party systems. By continuing to invest significantly in their development, DRC recognized the increasing value to insurers of creating custom touch points through APIs. RS X Product APIs make the development process easier, and faster, by providing all essential information needed to seamlessly integrate with RS X Rating, DRC Quote and DRC Policy. This, in turn, allows insurers and brokers to curate and enrich the experience of their customers without sacrificing the power, speed and security of DRC's processing platform.

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Three major insurance groups push taxpayer-funded pandemic support

National Association of Mutual Insurance Companies, the American Property Casualty Insurance Association and the Independent Insurance Agents & Brokers of America Inc. | May 22, 2020

An alternative federal proposal designed to protect businesses financially was unveiled by three major insurance industry groups. Protection must be purchased at least 90 days before the presidential declaration, according to the proposal. A draft bill outlining the proposed Pandemic Risk Insurance Act of 2020 has been circulating on Capitol Hill. An alternative federal proposal designed to protect businesses financially against widespread economic shutdowns due to a future pandemic was unveiled Thursday by three major insurance industry groups. The Business Continuity Protection Program would provide immediate revenue relief for payroll, employee benefits and operating expenses following a viral emergency declaration by the President, according to a statement from the National Association of Mutual Insurance Companies, the American Property Casualty Insurance Association and the Independent Insurance Agents & Brokers of America Inc. Under the plan, which would be run by the Federal Emergency Management Agency and funded by taxpayer dollars, businesses would purchase revenue replacement for three months’ relief for up to 80% of payroll and other expenses, through insurers that voluntarily participate in the BCPP. Read More: Atlas General Insurance Services announced the formation of the Client Solutions Group Protection must be purchased at least 90 days before the presidential declaration, according to the proposal. Businesses would be required to certify that they would use any funds received for retaining employees and paying necessary operating expenses and that they would follow federal pandemic guidelines. Pandemics simply are not insurable risks; they are too widespread, too severe, and too unpredictable for the insurance industry to underwrite, Pandemics are a national problem, and we need a national solution. - Charles Chamness, NAMIC’s president and CEO The proposal comes after insurer groups indicated they were not supportive of a legislative proposal to create a federal pandemic backstop akin to the Terrorism Risk Insurance program created after the 9/11 terrorist attacks under the Terrorism Risk Insurance Act. A draft bill outlining the proposed Pandemic Risk Insurance Act of 2020 has been circulating on Capitol Hill. “A TRIA-like program, with an industry financial role, does not square with the fundamental notion that pandemics are not insurable risks,” the trade groups said in the statement. Read More: NFS modernized flood insurance space by launching Trident The Risk & Insurance Management Society Inc. said Thursday its external affairs committee will begin reviewing the alternative proposal. “Our support for a PRIA solution doesn’t preclude us from backing other legislative proposals, especially those that are favorable to the risk management community,” said Whitney Craig, RIMS director of government affairs, in an emailed response. Valid use of funds through the BCPP would be audited and enforced through fines, required repayment and criminal penalties, according to information provided by the trade groups. NAMIC, the APCIA and the Big “I” said they will be working with members of Congress and the administration to enact the BCPP AboutNational Association of Mutual Insurance Companies (NAMIC) Founded in 1895, the National Association of Mutual Insurance Companies (NAMIC) is a full-service national trade association serving the property/casualty insurance industry with more than 1,400 member companies that underwrite nearly 40 percent of the property/casualty insurance premium in the United States. NAMIC members are small farm mutual companies, state and regional insurance companies, risk retention groups, national writers, reinsurance companies, and international insurance giants. About American Property Casualty Insurance Association (APCI) Representing nearly 60 percent of the U.S. property casualty insurance market, the American Property Casualty Insurance Association (APCI) promotes and protects the viability of private competition for the benefit of consumers and insurers. APCI represents the broadest cross-section of home, auto, and business insurers of any national trade association. APCI members represent all sizes, structures, and regions, which protect families, communities, and businesses in the U.S. and across the globe.

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WORKERS COMPENSATION

Split Limit Studios Joins Guidewire PartnerConnect Solution

Split Limit Studios, Guidewire Software | March 22, 2021

Split Limit Studios, LLC, a main provider of pay-as-you-go workers' compensation billing solutions, and Guidewire Software, Inc. (NYSE: GWRE), the platform P&C insurers trust to draw in, improve, and develop efficiently, today announced that Split Limit Studios (SLS) has joined Guidewire PartnerConnect as a Solution partner. SLS conveys its TRUPAY® platform, a comprehensive pay-as-you-go workers' compensation billing solution, to insurers, empowering them to offer pay-as-you-go policies with accurate and automatic premium calculation utilizing payroll information directly from payroll companies. SLS's Ready for Guidewire PolicyCenter joining will empower Guidewire clients to coordinate to TRUPAY. “Pay-as-you-go billing for workers’ compensation is now mainstream and policyholders expect insurers to offer this billing option,” said George Kostakos, chief executive officer, Split Limit Studios. “Building a solution to support pay-as-you-go billing can be time consuming and expensive, so we offer our solution to save insurers this work while satisfying policyholder expectations. We are thrilled to partner with Guidewire and soon offer our comprehensive billing solution integrated within Guidewire to our shared customers, making it even more simple to offer pay-as-you-go billing for worker’s compensation.” “We are excited to welcome Split Limit Studios as our latest Guidewire PartnerConnect Solution partner,” said Becky Mattick, vice president, Global Solution Alliances, Guidewire Software. “SLS’s solution minimizes audit surprises, as well as bad debts at the end of the policy term by drawing directly from payroll data to accurately match premium with risk. This creates a ‘win-win’ situation for insurers and their insureds. We are pleased to soon offer this technology integrated with Guidewire and extend these benefits to our joint customers.” About Split Limit Studios, LLC Split Limit Studios differentiates its SaaS technology from the competition with insurance expertise, excellent customer service, a focus on security, and a commitment to deliver on its promises. They have over twenty customers, including eight Tier 1 carriers and four workers compensation state insurance funds, and receive data from hundreds of payroll companies. TRUPAY®, Split Limit Studios signature solution, improves the cash flow of policyholders, provides agents with a flexible payment plan to offer their clients, increases payroll companies’ customer retention and reduces operating costs for carriers. Split Limit Studios continues its push to expand connectivity with payroll companies to make it easy to submit payroll data to all the workers compensation carriers who rely on TRUPAY® for their pay‐as‐you‐go programs. About Guidewire PartnerConnect ecosystem and Ready for Guidewire Guidewire PartnerConnect Solution partners provide software, technology, and data solutions as well as insurance support services. Our Solution partners help drive business value and innovation for insurers by developing and delivering integrations, extensions, apps, and other complementary solutions for Guidewire products. All of our Ready for Guidewire partner solutions are validated for security, quality, and compatibility with Guidewire, and can be found on the Guidewire Marketplace. About Guidewire Software Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. We combine digital, core, analytics, and AI to deliver our platform as a cloud service. More than 400 insurers, from new ventures to the largest and most complex in the world, run on Guidewire. As a partner to our customers, we continually evolve to enable their success. We are proud of our unparalleled implementation track record, with 1,000+ successful projects, supported by the largest R&D team and partner ecosystem in the industry. Our marketplace provides hundreds of applications that accelerate integration, localization, and innovation.

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