Best's Review articles from August 2003

Best's Review archives from August 2003

Expect the best; prepare for the worst. (Editor's Prologue).
August 1, 2003... It could be the next tobacco. Or, from the insurance industry's point of view, the next mold. As lawsuits filed against fast-food restaurants and food manufacturers for transgressions including contributing to obesity and mislabeling products...

In the spotlight *. (Comment).
August 1, 2003... "There's been a great deal of speculation on the resurgence of New York red estate by firms whose offices were destroyed at the World Trade Center. Aon is very, pleased to be able to follow through on our promise to reopen offices in the...

Correction.(Correction Notice)
August 1, 2003... The Web site for the Latin American Association of Insurance Agencies is www.LAAIA.com. The association's Internet address was incorrect in the July edition of the magazine.

Harleysville Insurance. (People in Insurance).(Brief Article)
August 1, 2003... Theodore A. Majewski has been elected senior vice president of personal lines for Harleysville Insurance. He will oversee the advancement of the company's personal-lines strategy and growth plans. Majewski has more than 30 years of...

American College. (People in Insurance).(Brief Article)
August 1, 2003... The board of trustees of the American College has named Laurence Barton as the eighth president of the college. He assumed his new role at the college July 1. Before joining the American College, Barton was president and chief executive...

Folksamerica Reinsurance Co. (People in Insurance).(Brief Article)
August 1, 2003... Folksamerica Reinsurance Co. named Susan Woods as senior vice president of corporate development. She joins Folksamerica from OneBeacon Insurance Co., where she was vice president of corporate development.

Shand Morahan & Co. (People in Insurance).(Brief Article)
August 1, 2003... Shand Morahan & Co. said Gerard Albanese, its chief underwriting officer and senior vice president of underwriting for the past seven years, has been promoted to president and chief operating officer for Markel International, another unit of...

AIG boosts its niche in Japan with GE deal. (Highlights from BestWeek).(American International Group Inc.)(GE Edison Life Insurance Co.)
August 1, 2003... American International Group Inc. will boost its already-formidable presence in Japan's life insurance market by acquiring the operations of General Electric's GE Insurance there. AIG said it will buy GE Edison Life Insurance Co. in Japan,...

Greenberg: GE deal will boost AIG's, profile in Japan.(Maurice R. Greenberg)(American International Group Inc.)(Brief Article)
August 1, 2003... Maurice R. Greenberg, AIG's chairman And chief executive officer, said in a conference call that his company's acquisition of GE Edison Life Insurance Co. in Japan is expected to contribute to the earnings of AIG's two current businesses in...

Hartford Financial Services Group Inc. (People in Insurance).(Brief Article)
August 1, 2003... Hartford Financial Services Group Inc. has promoted Lizabeth Zlatkus, executive vice president, to chief financial officer of its subsidiary Hartford Life Insurance Co. Zlatkus also will be in charge of the office of the chief information...

CNA Financial Corp. (People in Insurance).(Brief Article)
August 1, 2003... CNA Financial Corp. has named Robert L. McGinnis as the new president and chief executive officer of life and group operations for CNA's insurance companies. McGinnis succeeds Robert W. Patin, who recently announced his retirement. In his...

Markel Corp. (People in Insurance).(Brief Article)
August 1, 2003... Markel Corp. plans to significantly expand its product offerings by creating a business platform to be headed by Roger Greiner, the former president of Aegean Managers Inc. Greiner has more than 38 years of insurance industry experience...

By the numbers.(insurance industry employment)(Brief Article)
August 1, 2003... Insurance Industry Employment January-June 2003 For the first six months of 2003, insurance industry employment rose by 13,000, while the broad economy lost 236,000 jobs. Property/casualty insurers are showing stronger employment growth...

Meetings.(Brief Article)(Calendar)
August 1, 2003... Aug 20-21 International Risk Management Institute, Captive Insurance Solutions for the Middle Market, Sheraton World, Orlando, Fla. Phone: (800) 827-4242. Web site: www.IRMI.com. Sept. 3-5 LIMRA...

Task force: reject foreign collateral plea.(Brief Article)
August 1, 2003... An insolvency task force has recommended that the National Association of Insurance Commissioners reject a plea from foreign insurers to reduce their collateral requirements, citing concerns that failing to collect from the reinsurers would...

NAIC to comply with USA Patriot Act.(National Association of Insurance Commissioners)(Brief Article)
August 1, 2003... It's important for states to work with the USA Patriot Act Compliance Ad Hoc Task Force when developing forms and programs to comply with federal anti-money laundering requirements, or else their efforts will be counterproductive, the group...

Study: credit-based scoring can improve accuracy in underwriting.(Brief Article)
August 1, 2003... Credit-based insurance scores are "unquestionably" connected to insurance risk, according to a new study that reviewed data from almost 2.7 million automobiles in the United States. Researchers from EPIC Actuaries LLC on June 21 released...

Class-action litigation catches group's interest.(Brief Article)
August 1, 2003... As regulators look into the full impact of class-action litigation on the authority of state insurance departments, they'll be closely watching a study by Rand Corp. on national class actions. Multistate class-action litigation is...

Best's rating changes. (Ratings).
August 1, 2003... 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...

Food fright: potentially faced with a high tab for fast-food lawsuits, insurers crave information about current litigation. (Commercial Liability)(Cover Story).
August 1, 2003... About two out of every three Americans are overweight or obese, and fat-related illnesses such as heart disease have become the second-greatest cause of preventable deaths in the country behind tobacco-related illnesses. Some say the fast-food...

Maximum exposure: rocked by the combination punch of corporate accounting scandals and the bear market following the major hit from Sept. 11, reinsurers face a new world of being scrutinized by trading partners while scrambling for capital. (Industry Strategies).
August 1, 2003... Reinsurers are in a strange position. After a long, soft market throughout the 1990s that kept underwriting income below the breakeven point, fortunes seemed to be lifting beginning in 2000. The global property/casualty market began to harden,...

Auto reinsurance assumed, top writers--2002: rank is based on assumed auto reinsurance in 2002. (Industry Strategies).
August 1, 2003... Auto Reinsurance Assumed, Top Writers--2002 Rank is based on assumed auto reinsurance in 2002. ($ Thousands) Unaffiliated ...

Auto reinsurance ceded, top writers--2002: rank is based on ceded auto reinsurance in 2002. (Industry Strategies).
August 1, 2003... Auto Reinsurance Ceded, Top Writers--2002 Rank is based on ceded auto reinsurance in 2002. ($ Thousands) Total Auto ...

Commercial multiple peril reinsurance assumed, top writers--2002: rank is based on assumed commercial multiple peril reinsurance in 2002. (Industry Strategies).
August 1, 2003... Commercial Multiple Peril Reinsurance Assumed, Top Writers--2002 Rank is based on assumed commercial multiple peril reinsurance in 2002. ($ Thousands) Unaffiliated ...

Commercial multiple peril reinsurance ceded, top writers--2002: rank is based on ceded commercial multiple peril reinsurance in 2002. (Industry Strategies).
August 1, 2003... Commercial Multiple Peril Reinsurance Ceded, Top Writers--2002 Rank is based on ceded commercial multiple peril reinsurance in 2002. ($ Thousands) Total Commercial ...

Homeowners reinsurance assumed, top writers--2002: rank is based on assumed homeowners reinsurance in 2002. (Industry Strategies).
August 1, 2003... Homeowners Reinsurance Assumed, Top Writers--2002 Rank is based on assumed homeowners reinsurance in 2002. ($ Thousands) Unaffiliated ...

Homeowners reinsurance ceded, top writers--2002: rank is based on ceded homeowners reinsurance in 2002. (Industry Strategies).(Illustration)
August 1, 2003... Homeowners Reinsurance Ceded, Top Writers--2002 Rank is based on ceded homeowners reinsurance in 2002 ($ Thousands) Total Homeowners ...

Total liability reinsurance assumed, top writers--2002: rank is based on assumed total liability reinsurance in 2002. (Industry Strategies).
August 1, 2003... Total Liability Reinsurance Assumed, Top Writers--2002 Rank is based on assumed total liability reinsurance in 2002. ($ Thousands) Unaffiliated ...

Total liability reinsurance ceded, top writers--2002: rank is based on ceded total liability reinsurance in 2002. (Industry Strategies).
August 1, 2003... Total Liability Reinsurance Ceded, Top Writers--2002 Rank is based on Ceded total liability reinsurance in 2002. ($ Thousands) Total ...

Medical malpractice reinsurance assumed, top writers--2002: rank is based on assumed medical malpractice reinsurance in 2002. (Industry Strategies).
August 1, 2003... Medical Malpractice Reinsurance Assumed, Top Writers--2002 Rank is based on assumed medical malpractice reinsurance in 2002 ($ Thousands) Unaffiliated ...

Medical malpractice reinsurance ceded, top writers--2002: rank is based on ceded medical malpractice reinsurance in 2002. (Industry Strategies).
August 1, 2003... Medical Malpractice Reinsurance Ceded, Top Writers--2002 Rank is based on ceded medical malpractice reinsurance in 2002. ($ Thousands) Total Medical ...

Workers' compensation reinsurance assumed, top writers--2002: rank is based on assumed workers' comp reinsurance in 2002. (Industry Strategies).
August 1, 2003... Workers' Compensation Reinsurance Assumed, Top Writers--2002 Rank is based on assumed workers' comp reinsurance in 2002. ($ Thousands) Unaffiliated ...

Workers' compensation reinsurance ceded, top writers--2002: rank is based on ceded workers' comp reinsurance premiums in 2002. (Industry Strategies).
August 1, 2003... Workers' Compensation Reinsurance Ceded, Top Writers--2002 Rank is based on ceded workers' comp reinsurance premiums in 2002. ($ Thousands) Total Workers' Comp Rank Company...

Opportunity for option: opinion: insurers and consumers would benefit from an optional federal regulatory system that encourages market competition. (Industry Strategies).(Editorial)
August 1, 2003... Insurance is an integral part of the financial-services lifeblood of the United States; banking and the securities industry comprise the other major sectors. Banking and securities have a coherent national pattern of regulation. Insurance does...

Preserve and improve: opinion: the insurance industry must battle the push for federal oversight while streamlining state regulations. (Industry Strategies).(Editorial)
August 1, 2003... Much is being said about how the insurance industry will benefit from federal regulation. Some shortsighted leaders within the insurance industry are even buying into the argument that Washington could regulate insurance better than the states...

Process protection: armed with a boost from the federal courts, insurers are increasingly turning to patents to prevent competitors from copying proprietary business practices. (Industry Strategies).(United States Patent and Trademark Office)
August 1, 2003... Increasingly, insurance companies are taking advantage of a recent court decision permitting the United States Patent and Trademark Office to grant patents on business methods. In the past, the prospect that competitors would immediately copy...

Engineering success: FM Global has grown to become one of the largest commercial property writers in the world by relying on engineers and loss prevention instead of actuaries. As a mutual company, FM Global and its policyholders/owners take pride in having highly protected risks. (Property/Casualty).(Company Profile)
August 1, 2003... FM Global is not your typical insurance company. To see how a client could safely store cartons of aerosol containers in a warehouse, FM Global set the to two pallets of cardboard containers filled with aerosol cans. The resulting fire was so...

Critical condition: the nursing shortage is sparking new interest in nurses' liability insurance and maybe higher prices. (Property/Casualty).(Industry Overview)
August 1, 2003... A national nursing shortage that's nearing a critical level is increasing the responsibilities and liability risks nurses face. An example of the growing number of medical-liability suits against nurses is a case involving a 78-year-old...

E&O coverage for realtors, accountants. (Marketplace).(Brief Article)
August 1, 2003... Realtors and accounting professionals now have errors and omissions coverage available through the CPA Advantage and the Real Estate E & O programs. The programs, offered through the Herbert H. Landy Insurance Agency that works with...

AIG creates division. (Marketplace).(AIG Excess Casualty)(Brief Article)
August 1, 2003... AIG Excess Casualty, a division of the P/C subsidiary of American International Group Inc., started up an excess casualty practice dedicated to serving the insurance needs of builders and contractors. The new division provides commercial...

Insurers eye growing Hispanic market. (Marketplace).(Brief Article)
August 1, 2003... The Hispanic population accounts for almost 50% of the U.S. population's 6.9 million increase since 2000, according to the U.S. Census Bureau. This makes Hispanics the largest minority community in the nation. Groups such as the newly...

Study: insurers need to improve online response to customers. (Marketplace).(Brief Article)
August 1, 2003... As many as 30% of the insurers included in a recent study do not respond to customer inquiries made at their Web sites, according to consulting firm Customer Respect Group. The study, a survey of online customer service provided by the...

A private matter: private business owners often overlook the need for directors and officers coverage. (Selling Insight).
August 1, 2003... Fact: Large, public companies are sued regularly and make national headlines for paying large court awards or out-of-court settlements. Directors and officers coverage for the 13,000 or so public companies in the United States is an assumed...

Reserve problems continue to plague workers' comp. (Loss/Risk Management Notes).(Brief Article)
August 1, 2003... Terrorism exposures and inadequate reserves are dogging the workers' compensation industry, said Robert Hartwig, senior vice president and chief economist for the Insurance Information Institute, during a presentation to the American Society of...

Small businesses aren't ready for natural disasters. (Loss/Risk Management Notes).(Brief Article)
August 1, 2003... Small businesses are less prepared than larger companies to withstand a natural disaster, according to a survey by Hartford Financial Services Group. Three of every 10 businesses with three to 20 employees have a plan to protect their...

Survey: hospitals burdened by rising med-mal rates. (Loss/Risk Management Notes).(Brief Article)
August 1, 2003... Soaring medical-liability premiums are hampering U.S. hospitals' ability to provide obstetrics, neurosurgery, trauma and other services for the communities they serve, according to a survey by the American Hospital Association. The survey,...

Limiting the punishment: after years of being the focus of proposed reforms, the court-imposed limit on punitive damages is significant for insurers. (Loss/Risk Management Insight).
August 1, 2003... In April, the United States Supreme Court issued an important decision restricting punitive damages--State Farm Mutual Automobile Insurance Co. vs. Campbell. Punitive damages have long been on the "short list" of issues that concern...

Taking control: new kinds of health plans fight medical inflation by blending economic incentives with consumer choice. (Health-Care Costs).
August 1, 2003... The nation is moving toward a presidential election campaign next year that might feature the most significant health-care debate since newly elected President Bill Clinton proposed overhauling the health-care system on a national scale. But...

Membership squeeze: the Insurance Marketplace Standards Association still has the strong support of major life insurers, but its second round of membership renewals isn't as robust as the first. (Market Conduct).
August 1, 2003... Membership in IMSA--the Insurance Marketplace Standards Association--has slipped as the ethics organization closes in on its seventh anniversary, but officials say the association has proven to be highly effective and that the decline in...

Purchasing power: life-settlement providers must overcome problems in underwriting, financing, marketing and perseverance to tap into a potentially huge market. (Life Settlements).
August 1, 2003... The benefits of life settlements to consumers and the opportunities they provide producers have been well documented for years. Even conservative estimates of market potential should invite robust competition. Testimonials of satisfied clients...

Visionary sales: sales managers must be able to lead their staffs toward fulfilling the company's vision. (Selling Insight).
August 1, 2003... To be successful, sales and marketing managers must be leaders and know in which direction the organization is going. In financial services, leaders must have a vision of what the organization will be in the future and a plan of how to get...

Sales of index annuities continue to surge in 2003. (Marketplace).(Brief Article)
August 1, 2003... Index annuity writers enjoyed a strong first quarter in sales, continuing the major uptick begun during the second quarter of last year. According to The Advantage Group, St. Louis, sales totaled $3.29 billion, down 4% from last year's...

Most Americans over age 45 are uninsured for long-term care. (Marketplace).(Brief Article)
August 1, 2003... A study using census data and information compiled for use by the Medicaid program shows that 85% of Americans over the age of 45 have neither public nor private insurance against the costs of long-term-care. The Index of Long-Term-Care...

UnumProvident expands leave Administrative Services. (New Products and Services).(Brief Article)
August 1, 2003... UnumProvident Expands Leave Administrative Services: UnumProvident, Chattanooga, Tenn., is now offering companies with as few as 2,000 employees its services to administer employee leave under the federal Family and Medical Leave Act and state...

Travelers partners with Scudder to offer annuities. (New Products and Services).(Brief Article)
August 1, 2003... Travelers Partners with Scudder to Offer Annuities: Travelers Life and Annuity Co and the Travelers Insurance Co, have teamed with Chicago-based Scudder Investments to offer two flexible premium deferred variable annuities. Scudder Advocate...

Americom introduces index annuity. (New Products and Services).(Brief Article)
August 1, 2003... Americom Introduces Index Annuity: Baltimore-based Americom Life & Annuity has launched Spirit 7, a flexible-premium deferred index annuity with a 7% bonus added to first-year premiums over a seven-year period. The product offers a link to the...

Manulife enhances 529 college savings product. (New Products and Services).(Brief Article)
August 1, 2003... Manulife Enhances 529 College Savings Product: The Manufacturers Life Insurance Company (USA) has announced new features to its Manulife College Savings product, a 529 plan. The company's stable-principal portfolio has switched from a...

Triage in teleunderwriting: an underwriting system with new techniques can speed up the process and save insurers money. (Underwriting Insight).
August 1, 2003... In medical parlance, triage is what they do with patients, tending first to those deemed to benefit most from immediate attention and deferring the others for later. In teleunderwriting, we engage our own version of triage in risk appraisal,...

Experiencing technical difficulties: demand for information technology malpractice insurance is increasing as risks become more varied and pervasive. (Errors and Omissions).
August 1, 2003... A small Internet technology firm advises a manufacturer to use a particular software package, but the manufacturer finds that the software doesn't work as promised. The technology firm ends up owing more than $50,000 in defense costs. A company...

Waking tiger: with 59 million people online, China's e-commerce potential is enormous for insurers. (E-Commerce).
August 1, 2003... The Internet and its soaring use in China are creating a promise of great growth for the insurance industry. E-commerce is the engine driving the globalization and convergence of various facets of China's financial-services industry. The recent...

Accenture. (Web News You Can Use).(Brief Article)
August 1, 2003... * Accenture announced the availability of Accenture Claim Components Release 5.0, its Web-based claims application designed using Microsoft's .NET software. The solution helps insurers update their claims systems, reduce technology development...

Charles Schwab Corporate Services. (Web News You Can Use).(Brief Article)
August 1, 2003... * Charles Schwab Corporate Services introduced Schwab RT Web and Schwab RT Call Center, two software applications designed to improve retirement plan administration and participant servicing. The Schwab RT Web application provides plan...

innWebBuilder. (Web News You Can Use).(Brief Article)
August 1, 2003... * innWebBuilder, a turnkey solution for financial advisers, insurers and agencies to create and manage Web sites, announced the addition of term life insurance quotation capabilities. Powered by CompuOffice Software Inc.'s WinQuote and...

DST Vision. (Web News You Can Use).(Brief Article)
August 1, 2003... DST Vision, a Web-based tool for financial intermediaries, announced several new features, including a real-time asset summary, a recent transactions overview and data export capabilities. The real-time asset summary, available upon signing in...

CHAMPioning complaints. (Technology Notes).(Brief Article)
August 1, 2003... The Ohio Department of Insurance recently launched its Complaint Handling and Monitoring Program--CHAMP--to resolve complaints by providers about the payment of claims. The department, which is responsible for the regulation of...

Safeco introduces Learning Online. (Technology Notes).(Brief Article)
August 1, 2003... Safeco Life and Investments is now offering a platform to its internal wholesalers and other sales professionals that streamlines distribution and reaches more intermediaries and also effectively uses technology and reduces the cost of the...

Knowing the blueprints: managers need key, up-to-date information to make real-time decisions. (Technology Insight).
August 1, 2003... As chief information officers and their information technology organizations prepare for near real-time financial reporting to meet requirements of the Sarbanes-Oxley Act, they will first need a structured way to make informed, real-time...

N.C. blues withdraws plans to become for-profit company. (Companies).(Blue Cross & Blue Shield of North Carolina)(Brief Article)
August 1, 2003... Blue Cross & Blue Shield of North Carolina said it's with, drawing its plan to convert to a for-profit company, the second time in less than a year that a nonprofit health plan has failed at conversion. The reason given by the North...

Allstate Insurance signs deal with NBC sports. (Companies).(Brief Article)
August 1, 2003... Continuing its trend toward more high-profile media buys, Allstate Insurance Co. has signed on to sponsor sports news updates during NBC's weekend sports coverage, the company said. The "Allstate NBC Sports Update" made its debut June 28...

Stock market warms to IPO of Bermuda-based Axis. (Companies).(Brief Article)
August 1, 2003... Investors are showing interest in Axis Capital Holdings Ltd., which priced its initial public offering above the expected range at $22 a share July 1. It did well partly because the Bermuda-based insurer was formed after the terrorist...

Coming up ... in Spetember. (Companies).
August 1, 2003... The Big Picture: An in-depth look at how insurers balance commercial interests with social obligations. Discover the range of opinions a panel of insurers, regulators, consumer advocates and the trial bar has on this controversial issue. ...