Best's Review articles from December 2006

Best's Review archives from December 2006

Quote/unquote.(Comment)
December 1, 2006... "The issue with earthquakes is often that the full extent of the damage is not known for some period of time. It takes much longer to assess damage from an earthquake, say, than from a hurricane." Robert Hartwig Executive vice president and...

Industry sees Dems storm U.S. House.
December 1, 2006... Insurers and other industry players will need time to get to know the dozens of new faces coming to Congress as part of the electoral surge Nov. 7 that allowed Democrats to pick up 32 seats and control of the House of the Representatives. But...

Insurer-backed ballot initiatives win in states.(Brief article)
December 1, 2006... After the midterm elections, most of the country's governors will be Democrats for the first time in a dozen years, while three of the most important state ballot initiatives for insurers went as the industry had hoped. Few in the...

Insurers' CFOs worry about regulation, interest rates in '07.(chief financial officers)(Brief article)
December 1, 2006... Even before the Democrats took control of Congress, life insurers clearly were worried about a tighter regulatory environment, according to a study by Tillinghast: More than three out of four chief financial officers of life insurance companies...

Election trouble abound.(100 years ago in Best's Review)
December 1, 2006... The December 1906 issue of the life edition of Best's Review covered elections within Mutual Life Insurance Co. and New York Life Insurance Co. With balloting closed, counting votes should have begun-but the five inspectors of the election...

A.M. best special report: earthquake losses overdue.(By the Numbers)
December 1, 2006... The U.S. property/casualty insurance industry is overdue for heavy losses from a massive earthquake, according to the A.M. Best Co. Special Report, 2006 Annual Earthquake Study: $100 Billion of Insured Loss in 40 Seconds. Due to generally low...

Meetings.(Briefing)(Brief article)(Calendar)
December 1, 2006... Dec. 6 The Bond Market Association: Fixed-Income Summit & Expo on Technology and Electronic Trading, Marriott Marquis, New York Phone: (646) 637-9294 Web site: www.bondmarkets.com Dec. 9-12 National Association of Insurance...

Thompson: strengthen public health system.(Briefing)
December 1, 2006... America needs to protect its citizens against biological terror attacks and to strengthen its public health system, Tommy G. Thompson, former U.S. Secretary of Health and Human Services, said at the annual conference of the Property and...

Insurers debate possible role in flood insurance.(Briefing)(Brief article)
December 1, 2006... The question of whether insurers should act as administrators of the National Flood Insurance Program has become a top item of debate within a national natural disaster plan that's under consideration by legislators and state insurance...

Best's insurance stock indices.(Briefing)(Statistical table)
December 1, 2006... Four Weeks Ended November 9, 2005 Percent Change Index Month/ Close Month Best's Insurance...

JLT to restructure, merge with Agnew Higgins Pickering.(Briefing)
December 1, 2006... Jardine Lloyd Thompson Group plc, the largest publicly traded broker in the United Kingdom, has unveiled plans to change the structure and management of its London and international operations. JLT Risk Solutions is to merge with Agnew...

Aon Corp.(Agent/Broker)(Diane Aigotti becomes chief risk officer)(Brief article)
December 1, 2006... DIANE AIGOTTI, AON CORP.'S corporate treasurer, has been named chief risk officer, a newly created position for the Chicago-based insurance broker. Before joining Aon, Aigotti worked as budget director for the Chicago city government and...

Gallagher Re.(Agent/Broker)(appointment of GERALDINE DEL PRETE, STEVEN FALLON and PETER HEINRICHS)(Brief article)
December 1, 2006... GALLAGHER RE has made a series of executive appointments: GERALDINE DEL PRETE has been appointed senior executive vice president. Del Prete will lead the firm's U.S.-based property/casualty treaty business and will join its global...

USI Insurance Services.(Agent/Broker)(appointment of Robert Jennings)(Brief article)
December 1, 2006... USI INSURANCE SERVICES of Northern California has named ROBERT JENNINGS executive vice president of commercial lines. Jennings will join the broker's San Francisco office. Previously, Jennings had sales careers at Liberty Mutual and Arthur...

Willis Group Holdings Ltd.(Agent/Broker)(appointments)(Brief article)
December 1, 2006... Insurance broker WILLIS GROUP HOLDINGS LTD. promoted three executives in its North American operations. TOM EALY has been named chief operating officer for Willis North America and brings 20 years of insurance industry experience. Ealy has...

Allianz taps LifeUSA founder to lead launch of income unit.(People in Insurance)(Allianz Life Insurance Company of North America)(appointment of Robert W. MacDonald)(Brief article)
December 1, 2006... German financial services giant Allianz SE has tapped Robert W. MacDonald, the former chief executive officer of LifeUSA, to direct the launch of an independent, Allianz-capitalized company created to distribute Allianz annuity products through...

Axa Partners.(Life)(appointment of Marian Sole as senior vice president )(Brief article)
December 1, 2006... AXA PARTNERS, the wholesale life insurance division of Axa Distributors LLC, has named MARIAN SOLE as senior vice president of life sales. Previously, Sole was a senior vice president with Lincoln Financial Group/Jefferson Pilot Financial....

New York Life Insurance Co.(appointment of Sara Badler, Dennis Gagnon and Robert Rosh)(Brief article)
December 1, 2006... NEW YORK LIFE INSURANCE CO. has named SARA BADLER first vice president and deputy general counsel. DENNIS GAGNON and ROBERT ROSH both have been named vice presidents and associate general counsels. Before joining New York Life, Badler held...

Ace USA.(appointment of Wolfgang Friedel)(Brief article)
December 1, 2006... ACE USA named WOLFGANG FRIEDEL as executive vice president for its property and specialty lines business operation. Previously, Friedel was president and chief executive officer of Stratex. He has also held senior leadership positions with...

Aflac Inc. announced that Joseph W. Smith Jr., senior vice president of investments and chief investment officer, will retire at the end of 2006.(retirement of Joseph W. Smith Jr.)(appointment of Jeremy Jeffery)(Brief article)
December 1, 2006... AFLAC INC. announced that JOSEPH W. SMITH JR., senior vice president of investments and chief investment officer, will retire at the end of 2006. Smith will be succeeded by W. JEREMY JEFFERY, currently senior vice president of investments and...

The Navigators Group Inc. has announced its new U.K.-based property team, expected to grow its specialty lines in the United Kingdom and Europe.(Property/Casualty)(appointments)
December 1, 2006... THE NAVIGATORS GROUP INC. has announced its new U.K.-based property team, expected to grow its specialty lines in the United Kingdom and Europe. The team will focus primarily on U.K. property-related commercial lines in targeted business...

Collins.(Insurance Marketing News)(Brief article)
December 1, 2006... Reinsurance broker COLLINS has remodeled its corporate branding and launched a new Web site. Collins President and Chief Executive Officer Pat Denzer said that although the company's earlier branding established Collins in the reinsurance...

Insweb.(INSWEB teamed with Kelley Blue Book )(Brief article)
December 1, 2006... INSWEB has teamed up with Kelley Blue Book to be the exclusive provider of vehicle insurance marketed to the kbb.com's 10 million-plus unique visitors each month.

The big number.(Insurance Marketing News)(Brief article)
December 1, 2006... The number of print lookups the "Insurance" Yellow Pages heading generated in 2005, ranking 12th out of 4,000 headings. Consumers most frequently search for auto coverage, followed by homeowners, health, then life. Source: Yellow Pages...

A new target.(BRANDING)
December 1, 2006... NATIONWIDE is extending its "Life Comes at You Fast" advertising campaign to target the American South-Asian market. The advertising, which launched in September, is Nationwide's first effort created specifically for this market. "We want...

Blue Shield of California.(Brief article)
December 1, 2006... BLUE SHIELD OF CALIFORNIA is taking a unique approach in its first ad campaign in almost six years. Acknowledging consumer dissatisfaction with health insurers, Blue Shield of California pledges in the new campaign to make it easier to access...

Indexed annuities.(Equity-indexed annuities)(Brief article)
December 1, 2006... Writers of equity-indexed annuities have, in recent months, added buckets, bonuses and other features. American General Life Insurance Co., part of American International Group, in August launched Emerging Edge, a single-premium deferred...

E&O insurance expands for agents.(Errors-and-omissions)(Brief article)
December 1, 2006... Swiss Re has expanded professional liability offerings for agents beyond the coverage provided by Westport Insurance Corp. written through state associations of the Independent Insurance Agents and Brokers of America. The new...

General liability for homebuilders.(Property/Casualty)(Brief article)
December 1, 2006... Atlanta-based Builders Insurance Group has expanded its presence in the Southeast with a general liability program for the Florida market. The program is designed to provide comprehensive coverage, the company said. It is available to...

Campground, RV parks coverage.(Brief article)
December 1, 2006... Philadelphia Insurance Companies has introduced a product intended for operators of campgrounds and recreational-vehicle parks. General liability coverage is available up to $3 million and covers premises liability, property damage to trailers...

New facility to help insurers.(Collins)(Brief article)
December 1, 2006... Collins, a Minneapolis-based reinsurance broker, has introduced an umbrella reinsurance facility that can provide up to $5 million in commercial and personal umbrella limits. Capacity is provided by three unnamed international reinsurers rated...

Critical illness claims.(SNAPSHOT)(Statistical table)(Brief article)
December 1, 2006... Critical Illness Claims (%) Heart Attack 40 Cancer 20 Stroke 19 Bypass Surgery 13 Renal Failure ...

Best's rating changes.(Financial Strength Ratings)(Statistical data)
December 1, 2006... This edition of Best's Rating Changes reflects all rating changes--assignments, changes or placed trader review--that occurred for life, health and property/casualty insurers domiciled in North America, as well as international insurance...

Top of their game: some of the most profitable writers of personal lines insurance are not household names. But whether they specialize in underwriting, claims management or keepingoverhead costs low, they all tend to keep a laser-like focus on the bottom line.(property/casualty)(Cover story)
December 1, 2006... Key Points * A few of the most profitable underwriters of personal lines owe their success to carving out a niche market. * Some of these profitable underwriters credit their success to keeping expenses low, carefully selecting risks...

Agreeing to disagree: in a Best's Review roundtable about U.S. collateral requirements, reinsurers clash on U.S. regulation, but unite on the need for universal rules.(Reinsurance/Capital Markets)(Discussion)
December 1, 2006... Key Points * Domestic and alien reinsurers are watching closely to see if the National Association of Insurance Commissioners moves to modify its collateral requirements for the latter by the beginning of 2007. * Lloyd's says it will...

Walking a fine line: a Best's Review survey found insurers and reinsurers alike fear the end of the alien reinsurers' collateral requirement.(Reinsurance/Capital Markets)(Survey)
December 1, 2006... Should they, or shouldn't they? More than 200 insurance people worldwide responded to a Best's Review survey on a proposal by the National Association of Insurance Commissioners to end the long-held requirement that alien reinsurers deposit...

A whole new world: E-Fusion participants explore innovative technologies and new uses for old ones.(Technology)
December 1, 2006... Insurers now are dealing with customers who spend an average of 14 hours a week online and are more comfortable than ever with buying over the Internet, said Jaimie Pickles, executive vice president for InsWeb Corp. and a speaker at A.M. Best...

E-Claim.com LLC receives Claims Management Award.(Technology)(E-Claim.com LLC)
December 1, 2006... E-Claim.com LLC has received the A.M. Best Co. E-Fusion Award in the category of Claims Management for its ClickClaims Management System. The Gretna, La.-based company developed its Web-based system to help improve the process for...

Oceanwide Inc. recognized in Customer Management.(Technology )(Oceanwide Inc)
December 1, 2006... After Oceanwide Inc. saw the pressing need for freight forwarders to automate the issuance of certificates of insurance and calculation of applicable premium when facilitating the sale of transit insurance, the company developed Genoa as a...

VantisLife Insurance Co. receives L/H Agent Award.(Life/Health)
December 1, 2006... VantisLife Insurance Co. is the recipient of the 2006 E-Fusion award for Agent/Broker Management--Life/Health. The company was recognized for AgentWeb, its Web-based quotation and e-application system built for the financial institutions...

Royal & SunAlliance Canada receives P/C Agent Award.(Technology)
December 1, 2006... Four years ago, when independent brokers representing Royal & SunAlliance Canada wanted to bring new business to the company or make changes to an existing policy, they would have to fax, phone or mail the information to the company. The...

Homesite Group Inc. receives Underwriting and Pricing Award.(Technology)
December 1, 2006... Boston-based Homesite Group Inc. developed a creative strategy to address frustrating structural problems inherent in the homeowners product. The answer was found in the creation of a Business Geographic Underwriting system using GIS technology...

Selective Insurance receives Productivity Management Award.(Technology)
December 1, 2006... Selective Insurance has been named the A.M. Best Co. E-Fusion Award recipient in the Productivity Management category for its xSELerate system. The system was developed in response to agents' demands for an easier and more efficient way to do...

Beyond E-Commerce--Online Selling in the Web 2.0 World.(Technology)(Brief article)
December 1, 2006... * Online insurance transactions have evolved in their dozen or so years of existence. * Insurers are positioning themselves to optimize the use of information on customers' habits to determine potential areas of growth. * Among the...

Best practices in product development.(Technology)(Brief article)
December 1, 2006... * Effective insurance product development requires a best practices approach, including using good metrics and bringing together the many groups in the company that are involved in getting new products to market. * Bringing new products to...

Reinventing claims.(Technology)(disaster insurance plans )(Brief article)
December 1, 2006... * Vigilance is needed to avoid underinsuring property risk because the underwriting factors are constantly in flux. * Insurers can contain costs and develop disaster plans with location intelligence, which gives them the ability to make...

Building the service-oriented architecture.(Technology)(Brief article)
December 1, 2006... * Emerging internal systems tools insurers use to conduct business are geared toward shoring up the bottom line and customer satisfaction. * Service-oriented architecture includes technologies that streamline information passing between...

Harnessing the New Media.(Technology)(Brief article)
December 1, 2006... * Insurers and other organizations need to explore the many communication tools available to them, including video on demand, blogging, flash media and podcasting. * Content drives any new media presentation. * Online presentations...

Cutting the wires--how insurers are really using wireless.(Technology)(Brief article)
December 1, 2006... * Insurers are using wireless technology and geomapping to deploy adjusters to assess losses before any claims are filed. * Life insurance agents in the field, connected to the corporate databases via wireless communications, have such...

Building tomorrow's results in today's information.(Technology)(Brief article)
December 1, 2006... * Dynamic enterprise performance management systems allow managers to forecast using actual events against targeted results. * EPM tools include "dashboards" that display gauges that measure variables that range from agent performance to...

Electronic exchanges find their legs.(Technology)(Brief article)
December 1, 2006... * Electronic trading is gaining traction in the insurance and reinsurance markets. * An electronic insurance exchange is important because it facilitates risk distribution through one transparent and auditable medium. * A Web-based...

Companies and agents may face increase of security breaches.(Technology)
December 1, 2006... Insurance companies and agents may be facing an increased occurrence of security breaches, according to Steve Christenson, president of Identity Theft 911, a company that provides identity-fraud resolution and works with 70 major insurers. ...

AOL.(Tech Bytes)(America Online Inc.)(Brief article)
December 1, 2006... AOL recently made available several new premium security offerings, including free insurance coverage for identity theft and computer damage. The insurance, offered through American International Group Inc., pledges up to $10,000 to help...

BlueCross BlueShield of Tennessee and Caremark Rx Inc. recently announced enhancements to the Caremark iScribe electronic prescribing program in an effort to increase statewide adoption of the technology by physicians.(Brief article)
December 1, 2006... BlueCross BlueShield of Tennessee and Caremark Rx Inc. recently announced enhancements to the Caremark iScribe electronic prescribing program in an effort to increase statewide adoption of the technology by physicians. The program redesign is...

Cigna Group Insurance.(Brief article)
December 1, 2006... Cigna Group Insurance enhanced its disability-claims-reporting platform by providing customers more robust self-service capabilities via the Web. Through one secure site, employers now have access to a variety of critical operational claims...

Enterprise mobility: practice allows insurers to blend convergence, collaboration and management.(Technology)
December 1, 2006... The value of enterprise mobility--being able to work from anywhere at anytime with full access to whatever corporate systems are required--has been proven in the insurance world. However, enterprise mobility has evolved as insurance business...

The right fit: in the past year, life insurers, their associations and regulators have worked hard to protect buyers of annuities from inappropriate sales. One positive result is that the Insurance Marketplace Standards Association has adopted its strictest suitability standards ever.(Agent/Broker)
December 1, 2006... Key Points * The variety and complexity of regulatory authorities in the United States have not been well-suited to oversight of annuity sales. * A high level of cooperation this past year among regulators and the annuity industry,...

Nourishing sales: producers experience greater productivity with strategies developed by seasoned sales management.(Agent/Broker)
December 1, 2006... In many agencies, the sales manager is a part-time position, filled by a producer or owner who also has a book of business or other duties to handle. Full-time sales managers most often are found in large agencies. Our recent compensation...

A growing problem: diabetes and obesity are taking a toll on the U.S. health-care system. Health insurers and disability carriers are reaching out to members, physicians and employers about ways to curb the rise of these diseases.(Health/Employee Benefits)
December 1, 2006... Key Points * Diabetes and obesity are reaching epidemic proportions in the United States. * Diabetes costs $92 billion annually in direct medical costs and $40 billion in indirect costs, and health-care costs of diseases related to...

Lost in translation: the industry operates under the erroneous assumption that improving life insurance products will make it easier to sell the products.(Life)(Column)
December 1, 2006... Insanity is doing the same things over and over and expecting a different result. I don't know who first came up with that definition, but I wonder if he or she was thinking about the life insurance business. The life insurance business is...

New law, new opportunities: the Pension Protection Act changes the landscape of defined-benefit and defined-contribution plans. For insurers and producers, it offers a big chance in a big market to build business.(Life)
December 1, 2006... Key Points * With Social Security and pension plans under pressure, the new law should boost financial-services companies that provide retirement products. * The law seeks to stabilize ailing defined-benefit pension plans and...

Got C-3 Phase II? Writers of variable annuities are ably employing this complicated capital reserves regulation, despite lengthy instructions and even longer computer run times.(Regulatory/Law)
December 1, 2006... Key Points * Life writers selling variable annuities have had a year to put into practice C-3 Phase II, a regulatory requirement that ensures writers of variable annuities will reserve enough capital to meet needs. * Implementation of...

Trusting in nature: some courts are relying on the laws of nature, not policy time-limit provisions, to determine when an insured's injuries become disabling.(Regulatory/Law)
December 1, 2006... After an injury-producing accident, many policies require that the injury, death or disability for which a claim is being made occur within a specified time period following the accident--usually 90 days--to assure the loss was caused by said...

Electing Social Security early: a variable annuity with guaranteed withdrawal benefits can make up for taking lower Social Security benefits at age 62.(Regulatory/Law)
December 1, 2006... With the first of the nation's 76 million baby boomers turning 60 this year, many will ultimately decide to elect early Social Security benefits. In fact, Social Security Administration statistics indicate that 72% of Social Security benefits...

A safe journey: in the wake of Katrina, marine writers are taking steps to re-evaluate what, where and how to insure.(Property/Casualty)
December 1, 2006... Key Points * Current insurance programs and plans are inadequate and must be revised if the marine/energy industry is to remain viable. * Marine underwriters, producers and risk managers need to reassess the entire cycle of business...

'Let's talk': when a business relationship is heading for 'Splitsville,' the best thing to do is acknowledge it and move on.(Property/Casualty)
December 1, 2006... Nothing strikes more fear into the hearts of an insurance underwriter, broker or agent than when a client says, "We should talk." That's because there usually are two very distinct directions in which the conversation is going to go: One, the...

Insurers reward eco-friendly clients.(Property/Casualty)
December 1, 2006... Risk managers may be able to save insurance dollars by encouraging their companies to go green. A growing number of insurance companies are developing insurance and risk-management products for the low-carbon economy. Earlier this...

A custom mix: a growing number of insurers are adding product liability considerations to create a stronger investment management process.(Reinsurance/Capital Markets)
December 1, 2006... Key Points * Asset-liability modeling is the most crucial element in the integrated investment-management process. * Life insurers and P/C insurers tend to focus their efforts on different components of the process. * If assets...

A healthy change: consumer-driven health plans' success depends on empowering participants and making them accountable for their actions.(Health/ Employee Benefits)
December 1, 2006... Key Points * The current "$20 will fix anything" health-care system needs to be replaced. * Consumer-driven health plans encourage members to decide how to spend their money on medical care and to improve their health. * To make...

2007 meetings quest: gatherings in 2007 cover a range of agendas and topics, from annual meetings to conferences on such subjects as employee benefits and windstorms.(Agent/Broker)(Calendar)
December 1, 2006... 2007 Meetings Index ACORD: May 20-22 American Association of Managing General Agents: March 20-24 Association of Insurance and Risk Managers: June 5-6 Aon Re Canada: Oct. 31-Nov. 2 American Society of Safety Engineers:...

Aon Corp. said it is continuing its exit from the property/casualty business by selling off its Construction Program Group to Chicago-based Old Republic Insurance Co. for $85 million in cash.(Agent/Broker)(Brief article)
December 1, 2006... AON CORP. said it is continuing its exit from the property/casualty business by selling off its CONSTRUCTION PROGRAM GROUP to Chicago-based OLD REPUBLIC INSURANCE CO. for $85 million in cash. The world's second-largest insurance broker said the...

Germany-based Allianz S.E. said it is seeking to buy the 50% stake it doesn't already own in a Taiwan life insurance joint venture from its Taiwanese partner, Uni-President Enerprises Corp.(Life)(Brief article)
December 1, 2006... Germany-based ALLIANZ S.E. said it is seeking to buy the 50% stake it doesn't already own in a Taiwan life insurance joint venture from its Taiwanese partner, UNI-PRESIDENT ENTERPRISES CORP. Allianz owns 50% of ALLIANZ PRESIDENT LIFE INSURANCE...

Group Health Inc.(Health)(Brief article)
December 1, 2006... New York-based health insurer GROUP HEALTH INC. has been selected by the U.S. Office of Personnel Management to offer dental insurance to federal employees, retirees and dependents who participate in OPM's Federal Employees Dental and Vision...

Canopius said it would acquire fellow Lloyd's underwriter and agent Creechurch, in a bid to expand its commercial insurance reach among U.K. small to medium enterprises.(Lloyd's)(Brief article)
December 1, 2006... CANOPIUS said it would acquire fellow Lloyd's underwriter and agent CREECHURCH, in a bid to expand its commercial insurance reach among U.K. small to medium enterprises. The news followed by a day the announcement that two other Lloyd's...

Marking its entry into the growing Middle East market, Liberty Mutual's Liberty International Underwriters division has opened a new office in Dubai.(Middle East)(Brief article)
December 1, 2006... Marking its entry into the growing Middle East market, LIBERTY MUTUAL'S Liberty International Underwriters division has opened a new office in Dubai. According to Liberty, the unit will focus initially on providing additional capacity to local...

Flagstone RE.(Reinsurance)(Brief article)
December 1, 2006... FLAGSTONE RE, one of the Bermuda-based reinsurers set up after last year's hurricanes, is preparing to launch an IPO and a European subsidiary based in Switzerland. The reinsurer plans to raise as much as $175 million with a listing on the...

Scor.(Reinsurance)(licensed to open store at China)(Brief article)
December 1, 2006... French reinsurer SCOR has been given final approval to open a branch in China. The company applied to the China Insurance Regulatory Commission in March 2004, saying it intended to write property and casualty reinsurance there. Scor previously...

Luxury yacht insurance broker Sturge Taylor has announced an interest in Marsh's U.K. yacht business.(United Kingdom)(Brief article)
December 1, 2006... Luxury yacht insurance broker STURGE TAYLOR has announced an interest in MARSH'S U.K. yacht business. The company said it has signed a letter of indication of interest with Marsh concerning a possible buyout in what is a niche market.

Munich Re to write Life Re in ex-Soviet Republics.(Companies)(Brief article)
December 1, 2006... A Munich Re subsidiary won a license from Russian regulators to conduct life reinsurance operations in the Commonwealth of Independent States, an area including former Soviet states in Central Asia and Eastern Europe that the Germany-based...

First aid in flight: a growing number of medevac helicopters are used for medical evacuation, but the air ambulances also carry a host of liabilities.(The Last Word)
December 1, 2006... A three-car pileup on a major interstate with numerous injuries is a tragic scene, but medevac helicopters are a saving grace in helping get injured individuals the help they need quickly. The medical rescuers in the sky are a growing part...