Christopher Garand, former SVP and chief underwriter at
Prosecutors said the scheme involved AIG paying Gen Re in a sham deal to take out reinsurance policies with AIG in 2000 and 2001. The scheme reportedly boosted AIG's stock prices and inflated reserves by $500 million.
Garand is the third of five former executives to be sentenced.
EY's third annual risk survey found increased concern about adapting to changes in the risk environment.
State Farm could face millions of dollars in penalties in California after the state's insurance regulator alleged the firm mishandled claims related to the 2025 Los Angeles wildfires.
As artificial intelligence plays a greater role throughout the insurance industry, questions arise about AI risk, how it's changing policies and whether to trust the output of an AI-driven decision.
California Assembly advances mortgage protections for wildfire survivors, while agency considers advocates' role in rate increase processes. Meanwhile, state regulators are looking at how insurers use AI, and a look at regulatory budgets reveals which states are doing more with less.
Predicting natural disasters is becoming more important for banks and insurers as climate change increases their occurrence. Last year's wildfires in Los Angeles killed 31 people, destroyed more than 16,000 structures and caused as much as $131 billion in economic and property losses.
Prosecutors said the man they charged with starting the deadly 2025 Palisades Fire in Los Angeles was upset about a failed relationship and not having New Year's Eve plans just before he set a small blaze which rekindled six days later.
