Best's Review articles from April 2009

Best's Review archives from April 2009

Risk's watchmen.(From the Editor's Desk)
April 1, 2009... Risks for the insurance industry are more complicated than ever, encompassing hurricanes, pandemics, wildfires, identity theft, investment volatility--the list is endless. Insurers are hiring chief risk officers to try to foresee the unknown...

Regulators unsure of AIG's ultimate price tag.(Briefing)(American International Group Inc.)(Brief article)
April 1, 2009... Despite more than $182.5 billion in federal assistance to the company, the Federal Reserve Board still does not have a firm grasp on what American International Group Inc.'s total potential liabilities to the taxpayers might be, Fed Vice...

"Beware of geeks bearing formulas.".(WORTH REPEATING)(Quotation)
April 1, 2009... --Billionaire Warren Buffett, in his annual letter to Berkshire Hathaway shareholders. The fund lost $11.5 billion in 2008. While admitting "I did some dumb things in investments," Buffer was also critical of "flawed, history-based models used...

Medicare revamp eyed.(Brief article)
April 1, 2009... Current subsidies in the Medicare Advantage system are too high and cannot be justified, White House Budget Director Peter Orszag told the America's Health Insurance Plans' National Policy Forum last month. Orszag, who received a warm...

Follow the money.(American Insurance Group Inc.)(Brief article)
April 1, 2009... [ILLUSTRATION OMITTED] FOLLOW THE MONEY: AIG's disclosure that it awarded $165 million in bonuses to employees of its Financial Products unit, which issued the derivatives that nearly ruined the firm, caused a political firestorm last...

China premium Up 8.6% in January.(Financial report)(Brief article)(Statistical data)
April 1, 2009... The China Insurance Regulatory Commission reported that, for January, the country's insurance sector recorded year-on-year total original premium income of 114.7 billion yuan ($16.7 billion), up 8.6% from 105.6 billion yuan ($15.4 billion) in...

Congress to NFIP: see you in Sept.(National Flood Insurance Program)(Brief article)
April 1, 2009... Congress last month passed an omnibus bill that extends the National Flood Insurance Program through September. The NFIP was to expire at midnight March 7. The short-term extension likely pushes debate over the program's long-term...

Captive insurers.(WORLD BRIEFS)(Brief article)
April 1, 2009... DELAWARE MORE THAN doubled its number of licensed captive insurers in 2008, raising the total to 40. The jump came three years after Delaware initiated special tax breaks to lure new captive formations. In 2005, when the state had just five...

Consumer marketing.(WORLD BRIEFS)(Brief article)
April 1, 2009... THE OVERALL NUMBER of closed and confirmed complaints reported nationwide against insurance companies dropped 7.4% to 195,699 in 2008, according to a National Association of Insurance Commissioners report. Top complaints were delays, denied...

Business trends.(WORLD BRIEFS)(Dean White opinion on internet fraud)(Brief article)
April 1, 2009... GROWING ECONOMIC difficulties, coupled with the importance of the Internet for payment and collection, are creating increased opportunities for fraud, warns Dean White, a managing director at insurance broker Marsh. Citing a global fraud report...

Best's review's stats & numbers.(Statistical table)(Brief article)
April 1, 2009... Homeland Insecurity Swiss Re reports 76% of the world's insured losses from catastrophes occurred in North America last year, due primarily to hurricanes Gustav and Ike. Insured ...

2008 punished life insurers.(By the Numbers: Recently published Special Reports from A.M. Best Company)(Brief article)
April 1, 2009... 2008 was among the worst years in memory for life insurers' operating performance. Key drivers were substantial realized and unrealized losses on investment portfolios, higher costs of capital and a declining revenue base. These trends are...

A.M. best analyzes U.S. 'stability plan'.(By the Numbers: Recently published Special Reports from A.M. Best Company)(Brief article)
April 1, 2009... The Treasury's Financial Stability Plan aims to unlock frozen credit markets and revive the economy. It includes a public-private investment fund to help cleanse banks of toxic assets and ways to inject more capital into banks through...

Upheavals slow 2008 P/C ratings.(By the Numbers: Recently published Special Reports from A.M. Best Company)(Property and casualty insurance)(Brief article)
April 1, 2009... Natural catastrophes and financial upheaval drove a sharp reversal in the property/casualty industry's fortunes in 2008, and the effects spread to A.M. Best Co.'s rating activity. Its 59 upgrades barely outpaced its 57 down-grades after a...

Meetings.(Calendar)
April 1, 2009... April 14-16 National Association of Mutual Insurance Companies: NAMIC Leadership Forum and Professional Farm Mutual Manager Sessions, St. Charles, Ill. Web site: www.namic.org April 14-17 AIR Worldwide Corp.: Spring Conference, Orlando,...

Corrections.(Correction notice)
April 1, 2009... * An article in the March edition of Best's Review entitled "Products That Screen Exposure" contained an incorrect spelling for Karen Clark & Co. * The correct Web site cited in February's story, "Saving Grace," is...

Life insurers could collect from 'TARP II,' roundtable chief says.(troubled asset relief program)(Brief article)
April 1, 2009... The lack of a federal regulator is the single largest impediment to life insurers gaining access to capital injections from the U.S. Treasury, but the industry could end up drawing funds from a further iteration of the financial rescue plan...

A.M. Best's stock indexes.(Briefing)(Statistical table)
April 1, 2009... Four Weeks Ended March 6, 2009 (Dec. 31, 2004 = 1,000.00) Percentage Change Index Month/ Year to Year/ U.S. Indexes (Ticker) Close Month...

Insurance jobs.(Briefing)(Statistical table)
April 1, 2009... U.S. insurance payrolls shed 6,200 positions in February, as total unemployment surged to its highest rate since 1983, according to seasonally adjusted data released March 6 by the U.S. Bureau of Labor Statistics. For the month, the industry's...

Question: how is the turbulent economy affecting the insurance labor market?(Career Wise)
April 1, 2009... All industries are feeling the crunch of the difficult economy. However, the insurance industry's employment outlook remains relatively competitive. According to the U.S. Bureau of Labor Statistics' February report, the unemployment rate for...

Joe wall, former deputy assistant for legislative affairs to former Vice President Dick Cheney.(Agent/Broker)(appointment by Independent Insurance Agents and Brokers of California )(Brief article)
April 1, 2009... * JOE WALL, former deputy assistant for legislative affairs to former Vice President Dick Cheney, has been tapped by the Independent Insurance Agents and Brokers of America Inc. to be its senior director of federal government affairs. ...

Willis Group Holdings Ltd.(Agent/Broker)(appointment of David, Finnis)(Brief article)
April 1, 2009... * WILLIS GROUP HOLDINGS LTD. has named DAVID FINNIS as the executive vice president and national property practice leader of its North American retail brokerage business. Finnis takes up his new post with Willis HRH in its Atlanta offices....

David Sult has joined AON Consulting Worldwide as its senior vice president for corporate transactions.(Agent/Broker)(Brief article)
April 1, 2009... * DAVID SULT has joined AON CONSULTING WORLDWIDE as its senior vice president for corporate transactions. Sult will be responsible for Aon Consulting's client consultation efforts in the areas of restructuring, mergers and acquisitions and...

Aon Ltd.(Agent/Broker)(appointment of Paul Manduca)(Brief article)
April 1, 2009... * AON LTD. has named PAUL MANDUCA as non-executive chairman. Manduca, a 35-year veteran of finance, takes his post after serving for the past three years as an independent non-executive director with Aon. Formerly the chairman of U.K....

Mitch Blaser named new CEO for Ironshore unit in Bermuda.(Brief article)
April 1, 2009... Specialty commercial property/ casualty insurer Ironshore Inc. said Mitch Blaser has been named chief executive officer of Ironshore Bermuda. In addition to being the CEO of Ironshore Bermuda, Blaser will continue to serve in his capacity...

James Baettcher has joined Crump Insurance Services' New York office as a senior vice president and property director.(Agent/Broker)(Brief article)
April 1, 2009... * JAMES BAETTCHER has joined CRUMP INSURANCE SERVICES' New York office as a senior vice president and property director. Baettcher takes up his post with the insurance company's New York brokerage property practice. He is a 25-year veteran...

Assurance Agency Ltd.(Agent/Broker)(appointment of Dan Klaras)(Brief article)
April 1, 2009... * ASSURANCE AGENCY LTD. has named DAN KLARAS as its president. Klaras, most recently the Schaumburg, Ill.-based insurance brokerage's executive vice president, takes over the post from chief executive Dan Klaras officer and former president...

Sammons Securities Co.(Agent/Broker)(appointments of cindy Reed and Matt Stahr)(Brief article)
April 1, 2009... * SAMMONS SECURITIES CO. has named CINDY REED as president and MATT STAHR as chief marketing officer and vice president of broker-dealer distribution. Reed's new duties come in addition to her current duties as senior vice president and...

Axa Asia Pacific Holdings Ltd.(Life)(appointment of Keith Perkins)(Brief article)
April 1, 2009... * AXA ASIA PACIFIC HOLDINGS LTD. has appointed KEITH PERKINS as regional chief operating officer of Axa Asia Life, based in Hong Kong. Perkins will be responsible for Axa Asia Life's business operations in eight markets across the...

New York Life International LLC.(Life)(appointments of)(Brief article)
April 1, 2009... * NEW YORK LIFE INTERNATIONAL LLC has named two new senior vice presidents to its New York office and one to its Hong Kong office. THOMAS BURKE, ANNETTE DONSELAAR and SHAUNA COLLINGWOOD are due to take up their posts with the international...

Former Merrill Lynch & Co. Inc. executive Will Fuller has joined Lincoln Financial Group as the president and chief executive officer of its wholesale distribution unit.(Life)(Brief article)
April 1, 2009... * Former MERRILL LYNCH & CO. INC. executive WILL FULLER has joined LINCOLN FINANCIAL GROUP as the president and chief executive officer of its wholesale distribution unit. Fuller will take up his post with Lincoln Financial Distributors,...

HSBC Amanah Takaful Malaysia SDN BHD.(Property/Casualty)(appointment of Zainudin, Bin Ishak)(Brief article)
April 1, 2009... * HSBC AMANAH TAKAFUL MALAYSIA SDN BHD, an Islamic insurance unit of HSBC, has appointed ZAINUDIN BIN ISHAK as its new chief executive director and executive director in Malaysia. Zainudin was the chief executive officer of a local joint...

Associated Agencies Inc.(Property/Casualty)(appointment of Max Schrayer)(Brief article)
April 1, 2009... * ASSOCIATED AGENCIES INC. has named MAX "SKIP" SCHRAYER as its president. Currently president of personal lines insurer Auto and Home Insurance Agency, Schrayer takes up his additional post at the Rolling Meadows, Ill.-based insurance...

Kroll.(Property/Casualty)(appointment of Tim Whipple)(Brief article)
April 1, 2009... * Risk consultancy KROLL has named TIM WHIPPLE as the president of its consulting services group. Whipple comes to his new post from a position as head of strategy for Kroll's consulting services group, the company's business intelligence...

Eureko.(Property/Casualty)(appointment of Willem Van Duin)(Brief article)
April 1, 2009... * Dutch insurance group EUREKO has named WILLEM VAN DUIN as its chief executive officer. Most recently the vice chairman of Eureko's executive board, van Duin, replaces MAARTEN DIJKSHOORN, who stepped down Jan. 2. In the past, van Duin...

Renaissance Re Holdings Ltd.(Reinsurance/Capital Markets)(Renaissance Reinsurance Ltd. appointed Ian D. Branagan)(Brief article)
April 1, 2009... * RENAISSANCE RE HOLDINGS LTD. has named IAN D. BRANAGAN as its chief risk officer. Branagan, a senior vice president with the Bermuda-based insurer, will assume his new post with the company, along with a seat on Renaissance Re's executive...

Rowland, Byrne to Enter Hall of Fame.(David Rowland)(Jack Byrne)(Brief article)
April 1, 2009... David Rowland, who served as chairman of Lloyd's during the troubled mid-1990s, has been elected to the Insurance Hall of Fame. Rowland will be joined by Jack Byrne, former chief executive of U.S. auto insurer Geico. Rowland and Byrne...

A purrfect pageant.(AUTO INSURANCE)(The Progressive Corp.)(Brief article)
April 1, 2009... PROGRESSIVE GROUP OF INSURANCE COS. has entered the pageant arena--for pets. Recently, the company became the first auto insurer to offer free pet injury coverage to its policyholders to pay up to $ 1,000 in veterinary bills and medicine...

Pop rocks new ad.(ADVERTISING)(Swiftcover.com signed a deal with MWO)(Brief article)
April 1, 2009... [ILLUSTRATION OMITTED] BRITISH ONLINE INSURANCE COMPANY SWIFTCOVER.COM recently launched a major 25 million [pounds sterling] ($37.85 million) advertising campaign fronted by 1970s rock icon Iggy Pop. Created by ad agency MWO, the...

Earlier this year Axa Equitable Life Insurance Co.(RETIREMENT PLANNING)(Brief article)
April 1, 2009... EARLIER THIS YEAR AXA EQUITABLE LIFE INSURANCE CO. launched the latest installment in its "800-pound gorilla" campaign. [ILLUSTRATION OMITTED] The gorilla is on a bumpy airplane ride, comforting a fellow passenger and encouraging her...

Protective Life adds annuity.(SPOTLIGHT)(Protective Life Insurance Co. introduced variable life insurance)(Brief article)
April 1, 2009... Protective Life Insurance Co. has added the ProtectiveRewards Elite variable annuity to its large line of annuity products. It has a three-year surrender-charge period and a total annual charge of 1.5% for mortality-and-expense risk and...

Zurich targets carbon issues.(Property/Casualty)(Zurich Insurance Group introduced pollution liability insurance)(Brief article)
April 1, 2009... [ILLUSTRATION OMITTED] Zurich has introduced its Carbon Capture and Sequestration Liability Insurance and Geologic Sequestration Financial Assurance offerings. These specialized products are designed to meet the unique insurance needs of...

Travelers' tools aid auto dealers.(Property/Casualty)(Brief article)
April 1, 2009... Travelers has new products that provide risk analysis to new customers with franchised auto and track dealerships, and ongoing risk management tools to its existing customers. Travelers' IndustryEdge for Franchised Auto and Truck dealers offers...

Lincoln launches survivorship VUL.(Life)(Lincoln Financial Group introduced variable universal life insurance policy)(Brief article)
April 1, 2009... Lincoln Financial Group has launched Lincoln PreservationEdge, a survivorship variable universal life insurance policy developed for traditional VUL producers who prefer managing risks through asset allocation rather than secondary guarantees....

New web site for Jackson National.(Technology)(Jackson National Life Insurance Co. introduced www.jackson.com)(Brief article)
April 1, 2009... Jackson National Life Insurance Co. has a new corporate Web site (www.jackson.com) as part of the company's commitment to developing its online capabilities. The site features multimedia educational presentations, detailed product comparison...

Learn more.(Brief article)
April 1, 2009... Protective Life Insurance Co. A.M. Best Company # 06962 Distribution: Independent agents, broker/dealers, direct Lincoln National Life Insurance Co. A.M. Best Company # 06664 Distribution: Wirehouses, regional broker dealers, banks,...

Actual and expected retirement costs.(SNAPSHOT)(Statistical table)(Survey)(Brief article)
April 1, 2009... Believed category would Say category be largest actually is expense, largest expense, ...

Rating actions.(Ratings)(Cover story)(Statistical table)
April 1, 2009... This edition reflects all financial strength rating changes--assignments, changes or placed under review--that occurred for life, health and property/casualty insurers domiciled in North America, as well as non-U.S. insurance companies, since...

A room with a view: chief risk officers are taking their places in the C-Suite.(Property/Casualty)
April 1, 2009... Sometimes, the difference between saying and doing can speak volumes. That's something John Beckman has realized as chief risk officer for CNA Financial Corp. He's spoken about his enterprise risk-management team's effect on...

The big picture: enterprise risk management can reveal key pricing concerns to insurers that may help prevent losses.(Life)
April 1, 2009... Given the recent volatility in the capital markets and the consequent, adverse developments across the financial services industry, many interested parties have called for the use of more sophisticated risk-management techniques. ...

ERM redux: the RIMS Conference's main topic this year will be a familiar refrain.(Agent/Broker)(Risk and Insurance Management Society Inc.)(enterprise risk management)(Conference news)
April 1, 2009... What may ring as a familiar tune at this month's Risk and Insurance Management Society Inc. annual conference is by no means coincidental. Risk managers converging at the Orange County Convention Center in Orlando, Fla., can expect a renewed...

It's time to abandon two misconceptions: exposures are only part of the story when trying to effectively measure risk.(Property/Casualty)
April 1, 2009... The current financial crisis should prompt us to abandon two misconceptions that are prevalent in our industry. The first is that one can effectively manage risk without measuring it in some way. Yes, measures of risk are inherently...

Risking the enterprise: did ERM fail, or did companies simply fail to use it properly?(Property/Casualty)(enterprise risk management )
April 1, 2009... [ILLUSTRATION OMITTED] The dramatic falls of Lehman Brothers, Merrill Lynch and American International Group have many saying that these failures demonstrate enterprise risk management doesn't work. Enterprise risk management is the...

Age of analytics: success today relies upon insurers' ability to access and digest large volumes of information.(Property/Casualty)
April 1, 2009... Data is essential to most insurance company functions, and it is a business imperative to understand, manage, and protect this critical resource. The 21st century already is shaping up as the age of analytics, in which vast amounts of data...

Missing persons: disability carriers help employers debunk the old adage, 'absence makes the heart grow fonder.'.(Health/Employee Benefits)(Survey)
April 1, 2009... In the next 10 minutes, nearly 500 Americans will become disabled, according to the National Safety Council. Added to that, each day, four of every 150 employees are absent from work, Kaiser Permanente reports. Those startling...

Coming back to life: life reinsurers' services may be in greater demand as direct writers seek to relieve pressure on capital.(Reisurance/Capital Markets)(Company rankings)
April 1, 2009... All kinds of financial services companies have been impacted by the global economic crisis. But if there is one subset of these businesses that has weathered the storm better than most, it might be life reinsurers. "We have a very...

Net worth: online advertising is becoming an important marketing tool for property/casualty insures.(Part 1 in a 2-Part Series)
April 1, 2009... [ILLUSTRATION OMITTED] The Internet has proven to be a wonderful marketing tool for personal lines property/casualty insurers and agents. Geico, Progressive, Esurance, State Farm and Allstate dominate online. They have mastered the...

Economic capital meets the real world: managing risk and capital with new methods may need to become more compatible with the existing framework for public reporting and regulation.(Management Insight: Regulatory/Law)
April 1, 2009... We recently have witnessed unprecedented financial market turmoil. At the same time, many North American insurers have been implementing "economic capital" methods designed to help manage risk and capital levels in just these conditions. Most...

The right prescription: as the financial crisis grinds on, annuity writers emphasize the advantages of insurance.(Selling Annuities: Life)
April 1, 2009... Investors have been hurt by last fall's stock market meltdown. Many are still reeling from the speed and depth of the decline. Annuity writers have felt the pain, too, but their products either protected clients from the financial fall or...

Rolling with the punches: a changing financial environment should prompt reconsideration of sales and marketing plans.(Selling Insight: Life)
April 1, 2009... The recent turbulence in the economy and financial markets, along with the loss of confidence in financial institutions, presents a combination of challenges for insurers that call for swift, but well-considered shifts in sales and marketing...

Talent agents: recession or recruiters face same challenge: finding skilled candidates for their clients.(Insurance Recruiters: Agent/Broker)
April 1, 2009... [ILLUSTRATION OMITTED] The search for talent goes on, even in a recession. Insurance recruiters are facing a tough market. Many carriers are postponing filling management positions through the first quarter, or even year-end. Yet key...

Employment View from the U.K.(Insurance Recruiters: Agent/Broker)(Brief article)
April 1, 2009... As the credit crunch creates uncertainty over the future of employment in banking and financial services, the London insurance market is likely to retain an appetite for talent. "We see cautious optimism" on jobs within the London and U.K....

Insurance recruiters: they may not be made in heaven, but good matches are what recruiters and search firms have in mind for insurance professionals, as well as the companies looking to hire.(Management: Agent/Broker)(Directory)
April 1, 2009... AJC Search Associates Ltd., 15 Grand Ave., Baldwin, NY 11510. Jay Cohen; E-mail: jay@ajcsearch.com; Phone: 516-766-1699; Expertise: Actuaries, Pension Attorneys, Insurance Brokerage Producers and Account Managers. Amato & Associates LLC...

Safety factors: position your risk management program well in these uncertain economic times.(Agent/Broker)
April 1, 2009... Volatile financial markets are having a significant effect on many organizations' operations, income statements and balance sheets. For larger casualty customers, 2009 will undoubtedly require the agility to meet many challenges. Risk...

What the doctor e-ordered: 'take one tablet daily' is being prescribed in a whole new way, and technology is making it happen.(Electronic Prescribing: Health/Employee Benefits)
April 1, 2009... [ILLUSTRATION OMITTED] Each year medication errors claim the lives of nearly 7,000 individuals, resulting in nearly $77 billion in costs, according to the Institute of Medicine. Technology is stepping in to help. The Institute of...

Who's really on first base? The insurance industry must shout out to Congress the dangers of overregulation.(Legal Insight: Regulatory/Law)
April 1, 2009... The cast of characters in Abbott and Costello's classic "Who's on First" routine includes "Who" on first base, "What" on second base and "I Don't Know" on third base, among others. This timeless baseball skit has endured for decades, perhaps...

Let's talk: communicating with wikis and micro-blogs helps insurers keep in touch with agents.(Web-Based Tools: Technology)
April 1, 2009... Insurance companies are under unprecedented pressure from market forces and increasing governmental regulatory scrutiny. The current economic downturn is placing a wide variety of organizations under duress. The affliction is particularly...

Taming the compliance monster: companies strain under ever-increasing demands for reports, statistics and record.(Compliance: Regulatory/Law)
April 1, 2009... [ILLUSTRATION OMITTED] Compiling and filing reports required by departments of motor vehicles, industry bureaus and data collection organizations is an increasingly difficult, time-consuming job for property/casualty insurers. Rating...

Trust, Transparency and Technology: information technology flexibility is essential in regaining consumer confidence.(Technology Insight: Technology)(Survey)
April 1, 2009... Did you ever hear somebody say consumers aren't interested in insurance? Did you, in turn, then ask: How do you know? This is not the only myth about insurance that doesn't hold up to scrutiny. Another myth is that Internet insurance is the...

IPC Holdings plans Max Capital merger.(merged with Max Capital Group Ltd. to form Max Capital Group)(Brief article)
April 1, 2009... Property catastrophe reinsurer IPC Holdings Ltd. and specialty insurer/reinsurer Max Capital Group Ltd. said they would merge to form the sixth-largest global underwriter in Bermuda. The combined company will be named Max Capital Group and...