BestWeek: Defective Chinese Products a Growing Threat for Product Insurers.

OLDWICK, N.J. -- The number of Chinese made products imported into the United States that have been deemed harmful or defective is growing, and so is the anxiety of insurers, according to an exclusive story in BestWeek U.S./Canada.

From pet food that sickened and killed dogs and cats to toothpaste, toy trains, honey, car tires and fish, U.S. distributors and retailers have pulled several of these bad products off shelves in recent months, and are bracing for the slew of lawsuits that will inevitably follow.

Commercial carriers in the United States, China's largest overseas market, are also on alert, and some are looking at ways to strengthen their underwriting of imported products.

Robert Lala, a vice president at insurer Liberty International Underwriters, said the growing number of defective product cases will force underwriters to be more diligent in their underwriting efforts and investigations of overseas manufacturers.

Also in BestWeek Europe:

With the release of the European Commission's long awaited Solvency II directive proposal, European insurers and reinsurers say they are optimistic that the details and scale of plan will benefit the European market.

Also in BestWeek U.S./Canada:

With permanent changes to the federal estate tax seeming unlikely, potential life insurance policyholders are left with a dilemma of uncertainty. Several insurers are pushing estate tax-related enhancements to their so-called "second-to-die" policies to assist clients in planning for these changes.

And in both editions of BestWeek:

The Best's Global Insurance Composite Index finished the week of July 12 up 22.24% from a year ago. The composite index reflects the performance of 180 insurance stocks. The week's top performers were China Insurance International, Meritz Fire & Marine Insurance Co., National Security Group, Movae Group, amd Atlantic American Corp.

The bottom five performers were Meadowbrook Insurance Group, Selective Insurance Group, Gainsco, Safety Insurance Group, and SCPIE Holdings.

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Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.