I see nothing wrong with declining to write an account because their business system doesn’t meet company standards. A poor business system could be a sign of several hazards that could affect a loss. There must be a lot more data concerning this termination that Hartford simply does not wish to disclose to the general public.
The problem isn’t that the account was declined – the problem is that he voiced his concerns about the account to a hedge fund manager, thereby giving the manager protected, Hartford info.
As an underwriter I’ve declined many an account in my lifetime. I think I’ve been pretty careful about who I’ve ever told and what kind of information I’ve released. Most importantly the name of the insured (don’t). Now I’ll be a lot more careful. But even an idiot should know better not to tell a news reporter as part of an interview.
There is nothing wrong about declining an account if it does not meet your company’s risk appetite or you do not get commensurate premium for the exposure and hazards assumed.
It is totally different to reveal to the public on information that lead you to reach your decision.
I am surprised. When I have underwritten public companies one usually has to sign a non-disclosure agreement. I wonder if this was the reason behind his involuntary separation from his job.
I see nothing wrong with declining to write an account because their business system doesn’t meet company standards. A poor business system could be a sign of several hazards that could affect a loss. There must be a lot more data concerning this termination that Hartford simply does not wish to disclose to the general public.
THe underwriter has the obligatin to not disclose this type of information to the public.
The problem isn’t that the account was declined – the problem is that he voiced his concerns about the account to a hedge fund manager, thereby giving the manager protected, Hartford info.
So the hedge fund guy wasn’t a Hartford employee? See, I didn’t know that. I was wondering how the fact he made the statements got out of the room.
I don’t know if saying he didn’t want to insure Herbalife is protected Hartford info, either. I mean who would want to insure Herbalife?
The fraud comments are pretty common. Just Google Herbalife and you’ll find them.
Ooops, I just went to the MoneyBeat link. He made the comments in an interview. Duh. Even I can figure out that’s a mistake.
As an underwriter I’ve declined many an account in my lifetime. I think I’ve been pretty careful about who I’ve ever told and what kind of information I’ve released. Most importantly the name of the insured (don’t). Now I’ll be a lot more careful. But even an idiot should know better not to tell a news reporter as part of an interview.
There is nothing wrong about declining an account if it does not meet your company’s risk appetite or you do not get commensurate premium for the exposure and hazards assumed.
It is totally different to reveal to the public on information that lead you to reach your decision.
I am surprised. When I have underwritten public companies one usually has to sign a non-disclosure agreement. I wonder if this was the reason behind his involuntary separation from his job.
I used to insure this risk. Very profitable. As for fraud, I’m not sure.
VM, you’re better off not talking about it.
“Where’s Herb?”
(remember from 1985 B King commercial?)
Colorado?