Zurich American Will Pay $13M To State

Attorney General Richard Blumenthal recently announced that Zurich American Insurance Company will pay $153 million in an agreement with Connecticut, Illinois, and New York to settle allegations it rigged bids and secretly paid insurance brokers hundreds of millions of dollars in exchange for steering business to Zurich.

Under the settlement, Zurich will pay $13 million in penalties directly to the State of Connecticut and $88 million to policyholders overall. Among the major Zurich policyholders in Connecticut victimized by the bid rigging are Bridgeport Hospital, Fidelity National, Hexcel Corp of Stamford, and Hubbell, Inc of Orange.

Under the settlement, Zurich will pay $88 million into a fund by May 1 to pay back policyholders who purchased or renewed Zurich excess casualty insurance through Marsh from January 1, 2000 through September 30, 2004.