Best's Review articles from April 2004

Best's Review archives from April 2004

Safe at home and away.(Editor's Prologue)
April 1, 2004... Risk managers always have been concerned about their company's security, but in today's world--particularly since Sept. 11--they're more concerned than ever, adding another layer of responsibility to their seemingly ever-expanding role. For...

In the Spotlight *.(Comment)
April 1, 2004... "Despite the reducing levels of premium, the future direction of the aviation insurance market remains uncertain. With the ever-present potential for further losses, insurers pulling out of the market and the growing impact of terrorism, the...

Nationwide Financial Services Inc.(People in Insurance)(Brief Article)
April 1, 2004... Nationwide Financial Services Inc. has named M. Eileen Kennedy chief financial officer and senior vice president. Kennedy will succeed Mark R. Thresher as the company's CFO, effective April 1. Thresher has been named Nationwide Financial's...

North Carolina Mutual Life Insurance Co.(People in Insurance)(Brief Article)
April 1, 2004... North Carolina Mutual Life Insurance Co. named Richard L. Hall vice president and chief financial officer. Hall is a 28-year veteran of the financial management industry. Previously, Hall was executive vice president and chief financial...

Colonial Life & Accident Insurance Co.(People in Insurance)(Brief Article)
April 1, 2004... Colonial Life & Accident Insurance Co., based in Columbia, S.C., has named Randall C. Horn president and chief executive officer. Horn is a 27-year veteran of Mutual of Omaha Insurance Co., where he held a variety of positions. Among them,...

Madrid bombings likely covered by terrorism pool.(Highlights From BestWeek)
April 1, 2004... Just when terrorism as a major risk scenario seemed to be abating, the insurance industry was jolted by a series of explosions that ripped through commuter trains in Spain's capital, killing scores of people. Early reports from Spanish...

Poe Financial Group.(People in Insurance)(Brief Article)
April 1, 2004... Poe Financial Group named James E. Wurdeman president and chief executive officer. William F. Poe will remain as chairman of the company, which he founded in 1996. Wurdeman, a 24-year veteran of the insurance industry, has been executive...

MetLife.(People in Insurance)(Brief Article)
April 1, 2004... MetLife named Beth Hirschhorn to the newly created position of vice president and chief marketing officer of the company's domestic insurance and financial services businesses. She will retain her responsibilities as head of institutional...

American Superior Holding Co.(People in Insurance)(Brief Article)
April 1, 2004... American Superior Holding Co. and its affiliates named Patrick Gallagher president and chief executive officer. Gallagher also Gallagher has been elected to the companies' board of directors. Previously, he served executive positions with...

Life/health financial strength rating downgrades outpace upgrades in 2003.(By the Numbers)(Illustration)
April 1, 2004... In 2003, the life/health insurance industry experienced a gradual downward migration in credit quality, with Best's Rating downgrades outnumbering upgrades by more than a 2-to-1 margin, according to a special report by the A.M. Best Co. ...

Meetings.(Brief Article)(Calendar)
April 1, 2004... April 18-20 American Council of Life Insurers, Global Financial Leadership Forum, Le Meridien Piccadilly, London. Phone: (202) 624-2404. Web site: www.acli.com. April 18-22 Risk and Insurance Management Society, Annual Conference...

House approves ban on obesity lawsuits.(Brief Article)
April 1, 2004... The U.S. Senate is the next stop for legislation that would ban lawsuits against food manufacturers claiming their products cause obesity, now that the House has passed the so-called "cheeseburger bill." Under the bill, those who buy food...

Survey ranks Delaware Court as fairest.(Brief Article)
April 1, 2004... Most senior corporate attorneys give a ranking of fair or poor to liability systems in state courts across the country, with a wide gap between the best and worst states, according to a nationwide survey. Respondents to the survey said the...

Judge approves Equitas asbestos settlement.(Brief Article)
April 1, 2004... A bankruptcy judge has approved the $575 million asbestos-claims settlement between Halliburton Co. and Equitas, but it's not a done deal because the arrangement depends on Halliburton subsidiaries receiving approval for their bankruptcy plan...

Best's rating changes.(Ratings)(Illustration)
April 1, 2004... This summary of Best's Rating Changes includes life, health-care and property/casualty insurers domiciled in North America, as well as international insurers that had ratings assigned, changed or placed under review since this section last...

Improving the odds: security is on the minds of risk managers as they look for ways to minimize the risk to their physical operations and computer systems. Many are improving their insurance programs by tightening all aspects of security.(Risk Management)
April 1, 2004... Casinos may be filled with gamblers, but Lance Ewing, vice president of risk management for Caesars Entertainment Inc., isn't one of them--at least when it comes to protecting the company. Not only is Ewing concerned with the company's...

Risky business: health-care risk managers are focusing more on the business side of organizations and assuming more responsibility for insurance.(Risk Management)
April 1, 2004... Insurance is a big part of Richard Kidwell's job as a health-care risk manager. In addition to his involvement with the purchase of all lines of insurance and reinsurance for Baltimore-based Johns Hopkins Health System, he also works with the...

Survival techniques: insurance trades are reassessing and sometimes reshaping their presence in the industry in order to stay alive.(Trade Associates)
April 1, 2004... Insurance trade associations have to operate like businesses as they fulfill the demands of members who respond to changing market conditions. If they don't evolve, they die--making them no different from the constituency they serve. First...

Seller beware: insurance agencies that put themselves up for sale must understand the differences between being acquired by a bank, a publicly traded producer or another privately held agency.(Agent Issues)
April 1, 2004... Activity in the insurance producer merger and acquisition arena was frenetic in 2003. Over the past few years, the insurance brokerage segment represents the steadiest source of merger and acquisition activity in the insurance marketplace....

One for all: a Customer Interaction Center, coupled with a smart customer strategy, provides insurance companies with improved service, streamlined operational efficiencies and higher revenues.(Customer Service)
April 1, 2004... Today's consumer and commercial customers have an ever-increasing variety of ways to interact with their insurance provider. Until fairly recently, however, customers had little influence on how and when insurance companies responded to their...

Damage control: quick responses by restoration firms can reduce the number of expensive claims.(Commercial and Homeowners)
April 1, 2004... When unwelcome water invades the floors, walls and ceilings of a residence or business, it's only a matter of hours before the damage can escalate from minor to monumental. That's why insurance companies know that time is definitely on their...

Centrally located: as consumers demand more services from auto dealers, insurers can become the key link in the new value chain.(Auto)
April 1, 2004... Information technology is driving a major transformation in the automobile industry. This change involves extending the value chain into household relationship management, as companies such as General Motors try to sell a vast array of products...

Learning from litigation: a directors and officers insurance expert cites more partnering between insurers and clients and shorter-term policies as among the changes necessary to excel in the current litigious environment.(Directors and Officers: Q&A)(Interview)
April 1, 2004... Even before energy trader Enron Corp. failed, the once profitable market for directors and officers insurance was in disarray, hit hard by the dot-com implosion, hundreds of securities class actions, a faltering economy and years of escalating...

The power of the plan: with a strategy in place, insurers, third-party administrators and independent adjusters can generate a rapid response to disasters.(Commercial and Homeowners)
April 1, 2004... Catastrophes occur with little or no warning and ruin thousands of homes and businesses every year. Individuals never truly can prepare for the loss of their homes or livelihoods, but every day insurance companies, third-party insurance...

Drive-by rates: can pay-as-you-drive insurance attract good risks and gain insurers an environmentally responsible image?(Auto)
April 1, 2004... Auto insurance companies are constantly looking for ways to build customer loyalty and cut down on customer churn. They also want to attract low-risk drivers. A new insurance concept--"pay-as-you-drive" insurance--is being touted by a variety...

Tracking the changes: rating errors in personal auto lines cost the property/casualty industry nearly $14 billion each year.(Underwriting Insight)
April 1, 2004... Americans lead dynamic lives. Statistics show that every hour there are 203 marriages and 109 divorces. Every hour 4,900 Americans move and 7,100 change jobs. Every hour there are 12,400 vehicles registered of which 2,200 are new. Every hour...

GE Commercial raises caps on some classes of policies.(Loss/Risk Management Notes)(GE Commercial Insurance Co.)(Brief Article)
April 1, 2004... GE Commercial Insurance, a division of GE's Employers Reinsurance Corp., said it's increased its capacity to write umbrella and "follow form" excess policy limits from $2 million to $5 million, including lead and excess umbrella layers. ...

Chubb creates new marine operation based in New York.(Loss/Risk Management Notes)(Chubb Corp.)(Brief Article)
April 1, 2004... Chubb has launched Chubb Marine Underwriters within its commercial insurance operation. Headquartered in New York City, the unit includes Chubb's U.S. and non-U.S. marine operations. It's aligned with a newly established marine services unit,...

Reed Group offers network of physician review services.(Loss/Risk Management Notes)(Brief Article)
April 1, 2004... Reed Group, Boulder, Colo., said it's formed Reed Review Services, which offers a network of board-certified doctors to provide independent physician-review services for employers, insurers and third-party administrators. These services...

Could welding fumes be the next asbestos?(Loss/Risk Management Notes)(Elam v. AO Smith et al.)
April 1, 2004... Nothing strikes fear in the hearts of insurers like the words "the next asbestos," but that's the catch-phrase that's being used after an Illinois jury awarded a plaintiff $1 million after finding exposure to welding fumes caused a neurological...

The best defense: insurers should work with clients to reduce risks of sexual harassment claims.(Loss/Risk Management Insight)
April 1, 2004... One hopes that efforts by U.S. businesses to educate workers about sexual harassment have cut the overall number of incidents. Certainly, the efforts have increased awareness of sexual harassment and the number of complaints registered. Sexual...

Progressive: tips to cross-sell.(Marketplace)(tips to enhance sales of boat, motorcycle and recreational vehicles policies)(Brief Article)
April 1, 2004... The Progressive group of companies is finding that many agents are growing their business by targeting customers who own boats, motorcycles and recreational vehicles and cross-selling other lines to meet these customers' needs. Tips to...

Insurance helps the cubs in trying to end the curse.(Marketplace)(Prime Insurance Syndicate Inc. helps Chicago Cubs destroy the ball that cost the team a chance to be in the 2003 World Series)
April 1, 2004... Chicago Cubs fans can thank insurance for helping to destroy the ball that many believe cost the team a chance to be in the 2003 World Series. During game six of the National League Championship Series last October, a Cubs fan, Steve...

A winning approach: communication, appreciation and support in the work environment clearly are important to agency employees.(Selling Insight)
April 1, 2004... As a management consultant, I visit many agency offices each year and interview most of the employees. Generally, they are open and constructive ha their comments, telling me their perceptions of the agency's strengths or suggesting...

Insurers in waiting: most insurers are biding their time as the new life insurance mortality table wends its way through the approval process, one state at a time, But when adoption reaches the magic number of 26 states--watch out.(Mortality)
April 1, 2004... One might expect a sense of urgency among state officials to help life insurance buyers pay lower rotes. One might expect the insurance industry to be eager to design new kinds of products that a new mortality table can engender. One might, but...

Looking for funds: variable-annuity writers consider their subaccounts to be the all-star team of the mutual-fund world, and they look carefully at performance, management and consistency to keep only the top players.(Variable Annuities)
April 1, 2004... At the end of last year, about 8,300 mutual funds were based in the United States, and they held some $7.4 trillion in assets, according to The Investment Company Institute. For investors seeking the kind of professional money management that...

Brand-name or in-house?(Variable Annuities)
April 1, 2004... The most fundamental decision a variable-annuity writer must make is whether to offer funds from outside companies or to create its own funds from scratch. One is not inherently better than the other, but proprietary funds might be a better...

Fraternal face-off: Thrivent Financial for Lutherans, the largest fraternal benefit society in the United States, doesn't turn the other cheek when it comes to former agents allegedly violating noncompete agreements.(Agent Issues)
April 1, 2004... In the first-half of 2003, Thrivent Financial for Lutherans took legal action against 14 former agents for allegedly violating noncompete agreements, and sent about 140 letters to other former agents reminding them of their contract...

Good governance a priority: achieving effective corporate governance requires ceding real power to the board.(Underwriting Insight)
April 1, 2004... After two years of corporate scandals--including, most recently, revelations of mutual fund abuses that affect life insurers' fund operations and variable annuity businesses--improving corporate governance has become an urgent priority for all...

Measuring success: to effectively manage sales, insurers first must be able to measure their success.(Selling Insight)
April 1, 2004... Insurers generally have not developed and implemented appropriate performance measures to align individual of unit behavior with the strategy and objectives of the corporation, in other words, the bottom line. Such profit-focused measures would...

SBLI USA mutual life lowers rates as incentive for sales.(Marketplace)(Brief Article)
April 1, 2004... SBLI USA Mutual Life Insurance Co. has lowered the rates on its term life products and has relaxed underwriting to allow more people to qualify for the lower rates. The New York-based insurer said it intends the changes to serve as ah...

Frigid start.(Marketplace)(Brief Article)
April 1, 2004... [ILLUSTRATION OMITTED] Caption: Frigid Start: Cold weather could not dissuade 1,670 runners--along with some walkers, dogs and family members--from participating in Minnesota Life's Frozen 5K and shortened Half Marathon on Jan. 31 in...

Personal choice vs. public policy.(Marketplace)(managing retirement and health plans)(Brief Article)
April 1, 2004... Public policy has shifted toward giving employees more responsibility for choosing how to invest their retirement dollars and, more recently, their health plans. But lately, some members of academia have expressed doubts that most Americans...

Finetre more than doubles annuity transactions through the Internet.(Finetre Corp. AnnuityNet trading platform)(Brief Article)
April 1, 2004... Finetre Corp., the first company to implement full-service annuity-transaction processing on the Internet, reports having processed more than 350,000 annuity transactions last year through its paperless AnnuityNet trading platform, a 116%...

Hitting potential hot spots: insurers are incorporating catastrophe modeling in underwriting individual risks.(Catastrophe Modeling)
April 1, 2004... Increased computer power together with a stream of scientific advances has raised catastrophe modeling to a level of sophistication that is light years away from the first generation of models introduced in the early 1980s, major modeling...

Mapping the frequent storms.(Catastrophe Modeling)
April 1, 2004... In 2003, catastrophe losses totaled about $12 billion in the United States, of which only about $2.5 billion were due to hurricanes and/or earthquakes. The remaining losses were primarily caused by tornado/hail, winter storm and wildfire, said...

Rising from the ashes.(Catastrophe Modeling)(fire loss potential model)
April 1, 2004... For two weeks from late October to early November 2003, at least 10 major wildfires swept across Southern California from the Mexican border to north of Los Angeles. The two largest blazes, in San Diego and San Bernardino counties, combined to...

Discovering cards: health insurers see magnetic-stripe and smart cards as the answer to high administrative costs and consumer satisfaction.(Health)
April 1, 2004... Paying a provider copay or verifying member eligibility is now as easy as the swipe of a card. Card solutions, which health plans tout as increasing efficiencies, speeding payment and reimbursement, and providing a competitive edge, are gaining...

Scale and scope: thoughtful analyses of the industry indicate that the advantages of scale and scope economies are elusive and create minimal value.(Technology Insight)
April 1, 2004... A significant number of carriers, analysts and consultants speak broadly about the importance of scale and scope economies in the insurance industry. However, a more detailed, thoughtful analysis indicates that value creation from scale and...

Allstate Insurance Co.(Web News You Can Use)(Brief Article)
April 1, 2004... Allstate Insurance Co. has expanded the Web presence of its 11,000 exclusive agents by creating individual consumer Web sites that provide local auto, home and financial-services product information, insurance quoting capabilities and 24-hour...

Anthem Blue Cross and Blue Shield.(Web News You Can Use)(Brief Article)
April 1, 2004... Anthem Blue Cross and Blue Shield introduced online hospital quality comparison tools and medical treatment decision-support information to empower its members to become more involved in their health-care decisions. The interactive...

The National Conference of Insurance Legislators.(Web News You Can Use)(Brief Article)
April 1, 2004... The National Conference of Insurance Legislators recently began restricting access to its Web site (www.ncoil.org). The new password system privatizes access to adopted NCOIL models and resolutions; NCOIL reports and issues briefs; and future...

Searching for health info is a growing online activity.(Technology Notes)
April 1, 2004... Searching for health information on the Internet has become the third most popular Internet activity, just behind using e-mail and researching products and services, according to Pew Internet & American Life. And a majority of Americans lacking...

HCC to merge Lloyd's brokers launches underwriting unit.(Companies)(HCC Insurance Holdings Inc)(Rattener Mackenzie Ltd.)(Brief Article)
April 1, 2004... HCC Insurance Holdings Inc. said it plans to merge its two London-based Lloyd's insurance intermediaries in a move the Texas-based specialty insurer said would consolidate a 2002 acquisition. In a related move, HCC also formed an underwriting...

New medical-malpractice RRG cleared by Florida regulators.(Companies)(Pediatricians Insurance Risk Retention Group of America)(Brief Article)
April 1, 2004... A new risk-retention group is set to begin selling medical-malpractice insurance in Florida, a state beset by skyrocketing malpractice premiums. Pediatricians Insurance Risk Retention Group of America, a physician owned and operated...

Evan Greenberg to succeed Duperreault as Ace's CEO.(Companies)(appointments)(Brief Article)
April 1, 2004... After a 10-year tenure, Ace Ltd. Chairman Brian Duperreault will step down as the company's chief executive officer in May, to be succeeded by Evan Greenberg, Ace's current president and the former chief operating officer of American...

China's Ping an life seeks Hong Kong listing.(Companies)(Ping An Life Insurance Co.)(Brief Article)
April 1, 2004... China's second-largest life insurer moved to become the country's third significant insurer to go public outside mainland China by applying for a listing on the Hong Kong Stock Exchange, government news sources said. People's Daily and...

Minnesota regulators OK portion of St. Paul Travelers merger.(Companies)(Brief Article)
April 1, 2004... Minnesota insurance regulators have approved St. Paul Cos.' acquisition of Travelers Property Casualty Corp.'s subsidiaries in the state as part of the larger merger of the two insurers. The portion of the merger over which the Minnesota...

ING Group to close Argentina life business.(Companies)(ING Insurance Argentina )(Brief Article)
April 1, 2004... ING Group N.V. said its Argentina subsidiary would stop writing new life insurance business, close down branch offices and eliminate about 650 jobs, after determining the business isn't profitable enough. Effective immediately, ING...

State Farm Mutual Automobile cuts rates in 10 states.(Companies)(Brief Article)
April 1, 2004... State Farm Mutual Automobile Insurance Co., the nation's largest writer of private-passenger auto coverage, said it has cut average premiums in 10 states after seeing major improvements in underwriting performance and claims rates in 2003. ...

14,000 Cape Cod insureds to lose Andover policies.(Companies)(Andover Cos.)(Brief Article)
April 1, 2004... Massachusetts' homeowners insurance market is feeling the pinch as the state's largest provider said it would withdraw from Cape Cod, leaving about 14,000 policyholders searching for coverage. Andover Cos.--the state's largest homeowners...

Risk-taking risk managers: whether it's jumping off a cliff or driving a race car, these two risk managers use their skills to manage exciting hobbies.(The Last Word)(John Hach of Lincoln Electric Co. and Mike Benishek of PTG Management Co.)
April 1, 2004... John Hach, a risk manager for Cleveland-based Lincoln Electric Co., a manufacturer of arc welding equipment, spends his weekdays working to protect the company from risk. But on his free time, he enjoys soaring up to 60 mph, up to 5,000 feet in...