Brokers and carriers have to make sure the right disclosures were made by the right people at the right time-and that they can document it.
A number of companies are going to be looking at continuing a presence there with real reluctance. State governments are going to have to figure out incentives and guarantees to minimize departures.
They are taking a hit now with the expectation of this settlement on market timing.
Whenever you remove uncertainty, it's a good thing. On the downside, they will still have to deal with private shareholders' suits.
The big legal question mark over the company has been resolved. But there are a number of private law suits still out there.
Auditors are in a grey area and they are more replaceable,
It's a big amount of money even for a huge company like AIG to have to pay out.
From the viewpoint of mass tort law firms, this is a gift from heaven: a huge number of people who have suffered terrible losses, with 24X7 media exposure.
They have had more success than other foreign insurers, because of their history. To win in that market depends on being able to win the regulator game. A high-level government official is going to help.
The industry weathered Katrina, but if Rita comes ashore as a Category 4 or 5 storm, it would cast doubt on the solvency of some insurance companies and deplete the surplus capital for others.
