Arrowhead General Insurance Agency, Inc.San Diego, CA, United States

Flood Insurance Program Remains Controversial - Due to ongoing accusations about problems with insurance company payouts following the damage from 2005's Hurricane Katrina, a few members of Congress want additional flood insurance program regulations. Public interest groups have accused insurance companies of officially blaming hurricane damage on flooding instead of wind, which means that the federal flood insurance program, instead of insurance companies, paid for the damage. However, the Inspector General of the Department of Homeland Security (DHS) disagrees, finding little evidence of fraud. Still, some in Congress insist that the issue needs further regulatory attention to prevent future abuses.

Health Insurance Worries Investor Experts - Moody's Investors Service projects a challenging upcoming year for health insurance companies, and has changed its rating of the sector to "negative" from "stable." Among the immediate pressures on health insurance companies is that many companies that offer health insurance to employees are struggling in the tumultuous US economy, which means that the fees they pay to insurance companies are likely to decline, thus impacting insurance profits.

AIG Saga Continues - AIG has been the face of insurance company troubles during the current economic downturn. AIG held numerous assets that rapidly lost value, which landed the company in financial trouble. However, the US government, through the Troubled Asset Relief Program (TARP), is working to bail out AIG through new, in addition to previous, loans. The total package is now worth over $150 billion, with nearly $30 billion in new money. The government has restructured the loans, lowering the interest rate and allowing more time for AIG to pay the money back.