Best's Review articles from August 2004

Best's Review archives from August 2004

Romancing on the road.(Editor's Prologue)
August 1, 2004... It's Monte Carlo, Baden-Baden and Washington, D.C., not Singapore, Zanzibar or Morocco, but the trip is a courting ritual just the same with reinsurers out to win insurers as Bob and Bing were out to win Dorothy. The first steps in forming...

A balance of power.(Comment)(Letter to the Editor)
August 1, 2004... In the article "Winning Small" (Best's Review, June 2004), the author is concerned about the increasing leverage that growing agencies have over insurance companies. He appears oblivious, however, to the far greater consolidation in the carrier...

In the spotlight *.(Comment)(Letter to the Editor)
August 1, 2004... "It is an improved environment for captives, but I would still emphasize that taxes should not be the main reason for forming a captive. Before you worry about tax considerations, you've got to make sure the captive is legal." Thomas Jones...

Zurich Financial Services Group.(People in Insurance)(Brief Article)
August 1, 2004... Zurich Financial Services Group named Axel P. Lehmann chief executive officer of Zurich North America Commercial, effective Sept. 4. Lehmann succeeds John Amore, who will continue to serve as CEO of Zurich's General Insurance business.

Alea Group Holdings Ltd.(People in Insurance)(Brief Article)
August 1, 2004... Alea Group Holdings Ltd. named Mark L. Ricciardelli group president and chief executive officer. Ricciardelli also has been named an executive director of the company. Ricciardelli succeeds Dennis Purkiss, who served as CEO since May 2000....

Amerigroup Corp.(People in Insurance)(Brief Article)
August 1, 2004... Amerigroup Corp. named Steven B. Larsen chief executive officer of its health-plan operations in Maryland and the District of Columbia, effective June 21. He succeeds Don Gilmore, who will head Amerigroup's Florida business. Most recently,...

Supreme Court ruling windfall for HMOs may be short-lived.(Highlights from BestWeek)(Health Maintenance Organization)
August 1, 2004... The June 21 U.S. Supreme Court decision barring patients from suing their HMOs in state court over denied benefits is seen as a significant victory for health insurers. It shields them from paying massive, multimillion-dollar awards to patients...

British Virgin Islands Insurance Association.(People in Insurance)(Brief Article)
August 1, 2004... The British Virgin Islands Insurance Association named Conor Jennings, of HWR Insurance Management Services, president. He is a 20-year veteran of the insurance industry. Previously, Jennings served as vice president of the Guernsey...

Assurant Inc.(People in Insurance)(Brief Article)
August 1, 2004... Assurant Inc. named Melissa Kivett to the newly created position of vice president of investor relations and Allen Walker to the newly created position of vice president of organization development and corporate communications.

Cox Insurance Holdings plc.(People in Insurance)(Brief Article)
August 1, 2004... Andrew Fisher has been named group chief executive of U.K. broker and auto and motorcycle underwriter Cox Insurance Holdings plc. Fisher succeeds Neil Utley, who has resigned as chief executive. Fisher will also take Utley's seat on Cox's...

PMI Group Inc.(People in Insurance)(Brief Article)
August 1, 2004... PMI Group Inc. named Brian P. Shea senior vice president and corporate controller. Prior to joining PMI in 1994, Shea served the controller's department of Textron Inc. in Providence, R.I.

Insurers' worries.(By the Numbers)(Brief Article)
August 1, 2004... Insurance executives have pricing top of mind in 2004, with terrorism second, according to the Industry Outlook 2004 survey conducted by National Marketing Services. Insurance executives who participated in the survey were interviewed by...

Meetings.(Briefing)(Brief Article)(Calendar)
August 1, 2004... Aug. 10-12 Vermont Captive Insurance Association, 19th Annual Conference, Sheraton Center, South Burlington, Vt. Phone: (802) 658-8242. Web site: www.vcia.com. Sept. 9-12 Canadian Independent Adjusters Association,...

Class-action reform bill fails vote in senate.(Briefing)(Brief Article)
August 1, 2004... A bipartisan agreement hammered out months ago to guarantee passage of an industry-backed class-action reform bill fell apart in the Senate July 8 after lawmakers couldn't agree on limiting amendments to the bill. The Class Action Fairness...

European reinsurers' financial strength shows stabilization.(Briefing)(debt leverage)(Adverse developments )(Brief Article)
August 1, 2004... After two years of downward pressure, European reinsurers are seeing their financial strength stabilize, according to A.M. Best Co. At the company's European Analytical Briefing of the reinsurance markets held in London in June, A.M. Best...

Group life in proposed extension of TRIA.(Briefing)(Brief Article)
August 1, 2004... A bill that would extend the Terrorism Risk Insurance Act through 2008, as well as cover major losses suffered by group life insurers in a terrorist attack, has been introduced by several leading U.S. House Democrats. Sponsored by Rep....

Best's Rating Changes.(Ratings)(Illustration)
August 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...

Road to renewal: insurers size up reinsurers in a different way at each of three fall gatherings that culminate in new annual pricing agreements.(Renewal Season)
August 1, 2004... On Sept. 11, executives of the global reinsurance industry will gather in Monte Carlo for their annual sojourn in the sun. The Reinsurance Rendez-Vous de Septembre, first held in 1957, has a casual air that befits the famous Mediterranean...

Top 35 global reinsurance groups.(Renewal Season)(Illustration)
August 1, 2004... Top 35 Global Reinsurance Groups Ranked by consolidated gross premium written in 2002. (US$ Millions) Prior Rankings 2003 Ranking Group Name 2002 2001...

Peering over the precipice: from a valley of near death, reinsurers have clawed their way to another cycle summit. What happens next?(Pricing and Risk Selection)
August 1, 2004... Heading into the second half of a mostly profitable 2004, reinsurers are poised at the summit of a hard-market cycle, many of them having posted strong profit gains amid good pricing and rising investment income, even as premium income has...

Border crossing: technology may help insurers use the expansion of the European Union to their advantage.(Europe)
August 1, 2004... Information technology and insurance go together. The effective use of IT can enable an underwriter to manage risk, respond to change, extract maximum value from data and cement relationships with intermediaries and customers. Technology...

Leveraging information: enterprise data strategies and data road maps help manage corporate data assets.(Technology Insight)
August 1, 2004... Data is a corporate asset, just as valuable and in need of management as financial assets. Insurance is an industry run on data and insurers are collecting more data than ever before through Web sites, call centers, customer relationship...

The long arm of Liberty Mutual: Liberty Mutual Insurance Cos. has been a leader in workers' compensation almost as long as employers have been required to buy it to protect their employees. But many industry watchers would be surprised to know that workers' comp is not the company's biggest line--and the United States is not the only country where it's a leader.(Liberty Mutual Profile)
August 1, 2004... The best-kept secret in the world of insurance could be that Liberty Mutual does more Ethan write workers' compensation insurance in the United States. While Liberty Mutual has been the largest private workers' comp writer in the United...

Direct premiums written by line, property/casualty, United States--2003.(Liberty Mutual Profile)(Illustration)
August 1, 2004... Direct Premiums Written by Line, Property/Casualty, United States--2003 ($ Thousands) Direct Premiums % of % Business Line Written...

Property/casualty industry leaders--2003.(Liberty Mutual Profile)(Brief Article)(Illustration)
August 1, 2004... Property/Casualty Industry Leaders--2003 Liberty Mutual is one of the top writers of both commercial and personal lines, although it tends to lag behind some of its competitors when it comes to underwriting profitability as measured by...

Total auto, top writers, United States--2003.(Liberty Mutual Profile)(Illustration)
August 1, 2004... Total Auto, Top Writers, United States--2003 Rank is based on 2003 direct premiums written. ($ Thousands) 2003 Direct ...

Commercial multiple peril, top writers, United States--2003.(Top Writers)(Illustration)
August 1, 2004... Commercial Multiple Peril, Top Writers, United States--2003 Rank is based on 2003 direct premiums written. ($ Thousands) 2003 Direct % ...

Homeowners multiple peril, top writers, United States--2003.(Top Writers)(Illustration)
August 1, 2004... Homeowners Multiple Peril, Top Writers, United States--2003 Rank is based on 2003 direct premiums written. ($ Thousands) 2003 Direct % ...

Medical malpractice, top writers, United States--2003.(Top Writers)(Illustration)
August 1, 2004... Medical Malpractice, Top Writers, United States--2003 Rank is based on 2003 direct premiums written. ($ Thousands) 2003 Direct ...

Workers' compensation, top writers, United States--2003.(Top Writers)(Illustration)
August 1, 2004... Workers' Compensation, Top Writers, United States--2003 Rank is based on 2003 direct premiums written. ($ Thousands) 2003 Direct ...

Summer promos feature Cadillac, RV giveaways.(Marketplace)(Brief Article)
August 1, 2004... Insurers are offering customers and agents a chance to win free wheels through new promotions. Allstate Insurance Co. is giving customers a chance to win one of five brand new Cadillacs during its first-ever U.S. Olympic-related consumer...

Scarborough to market P/C coverage for CAN.(Marketplace)(Brief Article)
August 1, 2004... Scarborough, a subsidiary of Aon Corp., said it has a new business relationship with CNA and will offer property and casualty insurance to financial institutions on a national basis. Scarborough, a managing agent serving the financial...

Homes with lightning rods earn discount from AIG.(Marketplace)(Brief Article)
August 1, 2004... American International Group is offering a 2% discount for homeowners premiums for homeowners who purchase a certified lightning protection system, installed by a Lightning Protection Institute certified installer. Damage from lightning...

Parents of college students need to check homeowners policies.(Marketplace)(Brief Article)
August 1, 2004... With 20,000 theft-related crimes reported at four-year colleges every year, parents should check their homeowners policies to be sure they are covered, Atlantic Mutual Insurance Co. said. Computers, stereo equipment, DVD players, jewelry,...

Blurring the line: group and individual disability insurers are learning from each other's business. The result? They're writing more profitable products.(Disability)
August 1, 2004... A decade ago, individual and group disability insurance were as different as a raw egg and a dozen hard-boiled ones. Both kinds of disability insurance are intended to provide income to replace a portion of a policyholder's salary when that...

Top group disability writers.(Disability)(Illustration)
August 1, 2004... The top 10 carriers controlled about 80% of the in-force group long-term disability insurance premium and about 76% of the in-force group short-term disability premium in 2003. New sales for the top 10 carriers in 2003 dropped to about 75% of...

Stemming the tide.(Disability)(Illustration)
August 1, 2004... During the 1990s, when individual disability became an extremely unprofitable line, the ranks of those who have exited individual disability insurance rapidly grew. (See below.) However, those that remain in the market have learned from past...

Ready to roll: in the next 10 years, baby boomers will accumulate huge retirement nest eggs and their draw on Social Security may spur the privatization of that American institution. Are insurers prepared to take advantage of these business opportunities?(Retirement Planning)
August 1, 2004... For the past 18 months, John Ladley and colleagues at Ernst & Young's Philadelphia office have been studying opportunities lot organic growth in the life insurance industry. Specifically, they have been focusing on the "de-cumulation" or payout...

Measure twice, cut once: cutting salespeople may save money today, but cost insurers much more tomorrow.(Selling Insight)
August 1, 2004... In good times, insurers, as good competitors, strive to maximize sales and often increase the size of the sales force. By increasing the points of sale, insurers hope to increase their market share, margins and profits. Unfortunately, in tough...

Jump start for sales: insurers can use these six steps to boost sales and promote profitability and growth.(Selling)
August 1, 2004... The past few years have been tumultuous times for insurers across all segments. Faced with slowing organic growth and inadequate return on capital, insurers have embraced a series of initiatives to reprice products, reduce costs and re-evaluate...

Making producers happy: introducing teleunderwriting can drop cycle time by as much as 300%.(Underwriting Insight)(Underwriting Vision Group)(Teleunderwriting)
August 1, 2004... A 2004 LIMRA Research Report, Insights Into Strengthening Producer Relationships, surveyed a cross-section of successful agents and brokers and determined that "service and support" was the second biggest reason they changed carriers. ...

Retooling communication: insurers are expected to adopt Web services to connect with business partners more efficiently.(Web Services)
August 1, 2004... Web services are being touted as the next best thing in information technology and many insurers seem to agree. Celent Communications predicts that by 2006, integration of Web services will account for more than 40% of the money insurers are...

ACORD.(Web News You Can Use)(Brief Article)
August 1, 2004... ACORD launched its Advantage Web site (www.acordadvantage.org) to improve ACORD Advantage agents' and brokers' access to ACORD's products and services. Visitors can access and download ACORD Standard Forms for Property and Casualty and Life,...

Duck Creek Technologies Inc.(Web News You Can Use)(Brief Article)
August 1, 2004... Duck Creek Technologies Inc. announced the availability of the 1.7 version of the Example Platform, which now provides more than 30 carriers quick product development, Web-deployment and a strategic platform for growth. Version 1.7 supports a...

MassMutual.(Web News You Can Use)(Brief Article)
August 1, 2004... MassMutual introduced e-Worksite Solutions 2.0, the next generation of its online individual disability-income insurance application and administration tool. Company benefits administrators can offer employees access to apply online for...

Priority Data Systems.(Web News You Can Use)(Brief Article)
August 1, 2004... Priority Data Systems released PriorityRate View Managing General Agency Submission Queue, an Internet-based tool that allows MGA personnel to view auto and home ACORD or company-specific applications and rating data by agency and customer...

U.K.'s imarket system promises to boost online business.(Technology Notes)(Polaris Plus.)
August 1, 2004... A streamlined, Interact-based electronic communications system between commercial insurance brokers and underwriters, dubbed "imarket," promises to speed the placement of business and allow intermediaries access to a wider range of products....

Out with the old: with its widespread use, credit scoring no longer delivers a competitive edge.(Underwriting Insight)
August 1, 2004... One of the major technological innovations in insurance over the past 20 years was the introduction of credit scoring. Beginning with private passenger automobile insurance and branching into other lines, credit scoring has given insurers...

Just the facts on FACTA: a new law reauthorizing pre-emptions in the Fair Credit Reporting Act makes changes, including some about information sharing.(Privacy)(Consumer reports)(California Privacy Information Act)
August 1, 2004... Recent changes made by Congress to the Fair Credit Reporting Act mean that insurance company executives who may have thought they understood the act need to take a second look at their compliance procedures. In the process of permanently...

On the mend: insurers and employers wait for workers' compensation reform in California to reduce their costs.(Workers' Compensation)
August 1, 2004... Many California employers And insurers are anxious to see whether newly enacted reforms will cure what ails that state's workers' compensation insurance system. The California Legislature late in 2003 and again in April 2004 passed major...

What's up, dock? London marine insurance manager issues guide to reducing berthing accidents.(Loss/Risk Management Notes)(Charles Taylor & Co)(Standard Club)(dock damage claims )(Brief Article)
August 1, 2004... One of the less appealing aspects of being a marine underwriter is having to pay out when ships damage piers when docking. Not only are ships getting bigger, said Alistair Groom, chief executive of London-based marine underwriting manager...

Corporate secrets for sale.(Loss/Risk Management Notes)(Brief Article)
August 1, 2004... For less than the price of a fast-food lunch, a technology security firm was able to buy hard drives containing sensitive data from online auctions. Pointsec Mobile Technologies, based in Stockholm, found it was able to read information on...

Capstone reaches out to middle markets.(Loss/Risk Management Notes)(Brief Article)
August 1, 2004... Capstone Partners LLC, a national investment banking advisory firm that assists middle market companies through merger, acquisition and financial transactions, said it has launched a new insurance brokerage firm. Capstone Insurance, also based...

Trident Insurance Services expands in Oregon.(Loss/Risk Management Notes)(Brief Article)
August 1, 2004... Trident Insurance Services LLC, a member of the Argonaut Group Inc. that offers insurance to public entities, said it's acquired U.S. Risk of Oregon Inc. from its parent, U.S. Risk Insurance Group Inc. The transaction allows San...

Wellington to enter U.S. specialty market.(Loss/Risk Management Notes)(Brief Article)
August 1, 2004... Lloyd's syndicate Wellington Underwriting plc said it plans to expand into the U.S. specialty business through the proposed acquisition of Axa Corporate Solutions Excess and Surplus Lines Insurance Co. The company will be renamed Wellington...

Calculating confidence: stochastic pricing methods provide more complete information about life settlement risks and returns.(Life Settlements)
August 1, 2004... Life settlements can provide policyholders with an amount of cash greater than the surrender value for their policy at a time when they need it. Settlements also can provide the purchaser of the policy with a sound business transaction. How...

Fidelity Investments.(New Products and Services)(Brief Article)
August 1, 2004... Fidelity Investments unveiled "Fidelity Retirement Income Advantage," a service that helps investors plan for, monitor and manage their financial situation throughout retirement. At the core of the new service is the "Income Management...

Jefferson Pilot Financial.(New Products and Services)(Brief Article)
August 1, 2004... Jefferson Pilot Financial, a provider of fixed and variable universal life insurance and fixed annuities, introduced two new variable universal life products--the JPF Ensemble Accumulator and the JPF Ensemble Protector, as well as the addition...

The Lincoln National Life Insurance Co.(New Products and Services)(Brief Article)
August 1, 2004... The Lincoln National Life Insurance Co., announced Lincoln VUL ONE, featuring the Optimal No-Lapse Enhancement Rider that uses the power of asset allocation to "bridge the gap" between traditional variable life insurance and guaranteed...

Midland National Life Insurance Co.(New Products and Services)( Advisor Variable Universal Life)(Brief Article)
August 1, 2004... Sioux Falls, S.D.-based Midland National Life Insurance Co. released a new variable life insurance product called Advisor Variable Universal Life. The product is designed for the financial services professional who has an increasing need for...

NASD advocates stiff requirements for sales of variable annuities.(Marketplace)(National Association of Securities Dealers)
August 1, 2004... Citing consumer complaints and a growing number of enforcement actions, the National Association of Securities Dealers is recommending that the government establish far stiffer disclosure requirements for variable annuities--including making...

Rx for costs: health insurers are finding generic, over-the-counter and mail-order drugs are the right prescription to help reduce the nation's soaring prescription drug costs.(Pharmaceuticals)
August 1, 2004... Following the U.S. Food and Drug Administration's relaxation on direct-to-consumer advertising in 1997, prescription drug ads have taken television and magazine advertising by storm. From "the purple pill" to "the patch," direct-to-consumer...

A strategic move: advisory boards can assist agents in running their businesses.(Selling Insight)
August 1, 2004... Experiences during the past two years have convinced me that retail agents, wholesalers and managing general agents need help and advice in running their businesses, and the solution is to form strategic advisory boards for their privately held...

Ties that bind: in this market, brokers should not be selling products, but meeting clients' needs.(Loss/Risk Management Insight)
August 1, 2004... Recently, the story goes, an extremely dictatorial and highly unpopular, yet influential regional broker passed away. Two colleagues of the deceased decided to attend the funeral services. Upon arrival, they noticed the funeral home was packed...

A new generation: North Dakota's 34-year-old insurance commissioner speaks out on industry issues, including the industry's treatment of active soldiers.(Q&A: NAIC)
August 1, 2004... James Poolman, 34, is the youngest member of the National Association of Insurance Commissioners. And as the association's vice president, he stands poised to become the group's youngest-ever leader should he ascend to the presidency at the...

MassMutual ready to ride wave of retiring boomers.(Companies)(Brief Article)
August 1, 2004... Financial services company MassMutual Financial Group said it has formed a new division to address the retirement needs of the first wave of 76 million baby boomers who will retire during the next five years. MassMutual is one of the first...

Allstate slaps four clinics with suit for alleged fraud.(Companies)(Brief Article)
August 1, 2004... Allstate Insurance Co. has filed a civil lawsuit seeking $1.8 million in damages in United States District Court Southern District of Florida against 26 people the company alleged were involved in a network of "sham clinics" that used runners...

French insurer Axa completes acquisition of MONY Group.(Companies)
August 1, 2004... French insurance group Axa said it completed its $1.48 billion acquisition of MONY Group Inc. after clearing all regulatory hurdles and satisfying all conditions of the merger agreement. MONY is now a wholly owned subsidiary of the Axa...

Hub international buys assets of Los Angeles-based broker.(Companies)(mergers and acquisitions)
August 1, 2004... Hub International Ltd.'s California subsidiary has bought the assets of West Los Angeles-based Payne & Co. Insurance Brokers Inc. A 31-year-old brokerage focusing on middle-market commercial insurance and employee benefits, as well as some...

Coming up ... in September.(Companies)(Brief Article)
August 1, 2004... The Hispanic Market: This ethnic market is growing by leaps and bounds, and insurers have some interesting strategies for tapping into it. Increasing Sales Effectiveness: What strategies are carriers using to increase sales effectiveness?...

Underwriting the arts: Golden State Mutual supported struggling artists and wound up with a prestigious collection.(The Last Word)
August 1, 2004... Golden State Mutual Life Insurance Co. was founded in 1925 to give African-Americans the opportunity to buy life insurance. It was fitting then that in the decades that followed, the African-American owned company answered another need for the...