Best's Review articles from February 2002

Best's Review archives from February 2002

Culture shock. (Editor's Prologue).(Brief Article)
February 1, 2002... The numbers paint a multihued picture of a diverse country, one where people of various races and cultures blend together to create one unique and complex culture--the so-called "melting pot." The U.S. Census Bureau reports that the...

If it sticks. (Comment).(Larry H. Shoemaker of Northwestern Mutual Financial Network)(Brief Article)
February 1, 2002... I'm an agent that has survived, at great expense. Now things are turning around. However, many of my more successful colleagues and I were discussing how the industry recruits, trains, develops and compensates new agents. One thing we all agree...

Unequivocal rebuttal. (Comment).(Brief Article)
February 1, 2002... In the January 2002 article "Anticipating the Benefits" (page 66), the authors attempt to compare historical yields of participating whole life vs. universal life products. While, in general, I think the authors provided adequate caveats to...

Corrections.(Brief Article)
February 1, 2002... * Sax Riley is chairman of Lloyd's. His last name was incorrect in the Briefing section of the January edition. * Information and the design concept for the "Property/Casualty Market Barometer" graphic in the January edition were provided...

Med malcontent: Top medical malpractice writer St. Paul Cos. abandons the unprofitable business. Who will fill the void? (Briefing).(Brief Article)(Statistical Data Included)
February 1, 2002... As the largest medical malpractice writer in the United States exits the market, the remaining companies will struggle to fill the void left behind, insurance observers said. St. Paul Cos.' decision to withdraw from the market and post a...

Professional liability cost comparison--orthopedic surgery.(Brief Article)(Statistical Data Included)
February 1, 2002... Professional liability cost comparison--orthopedic surgery State figures based upon average filed rates as of March 2001. Lowest Territory Highest Territory New York City (except New York City)...

W. R. Berkley steps up to the plate. (Briefing).(company enters medical malpractice market with Excess Underwriters LLC)(Brief Article)
February 1, 2002... W. R. Berkley Corp. said it plans to go where others often fear to tread: the turbulent medical malpractice market. While other companies have left the medical malpractice business because they've lost money in the market, W. R. Berkley is...

Pennsylvania legislators try to stop the bleeding. (Briefing).(medical liability reform)(Brief Article)
February 1, 2002... The cries for reform of the medical liability market in Pennsylvania are becoming frantic, prompting the state Legislature to push through a bill designed to limit medical malpractice lawsuits and commit to major reform efforts. The state...

Insurance employment surge abates. (By the Numbers).(Brief Article)(Statistical Data Included)
February 1, 2002... Insurance industry payrolls fell by 3,000 jobs, or 0.1%, in December. While December's job level of 2,353,000 was down by 9,000 since the industry's employment peak in September, it was still 14,000 jobs, or 0.6%, ahead of December 2000. Of the...

Personal auto insurance rates exploding. (By the Numbers).(Brief Article)
February 1, 2002... Auto insurance rates hit a decade-high level in the latest reporting. The charts clearly illustrate the hardening of the auto market, which is occurring along with the hardening of the overall property/casualty market. This trend is...

Insurers still counting losses from Enron. (Briefing).(Brief Article)(Statistical Data Included)
February 1, 2002... The bankruptcy of energy trading giant Enron Corp. has hit several insurers, with exposure estimates exceeding $4 billion. Enron filed for federal bankruptcy protection Dec. 2. The highest exposure estimate is from John Hancock Financial...

Three executives charged in Frankel case. (Briefing).(agents charged in Martin Frankel insurance theft case)(Brief Article)
February 1, 2002... Three insurance executives have been charged in Arkansas in connection with Martin Frankel's alleged $200 million theft from various insurance companies, the Arkansas Insurance Department said. Warrants have been issued for Tennessee...

Silverstein sues Travelers over trade center claims. (Briefing).(World Trade Center Properties LLC files suit against Travelers Indemnity Co.)(Brief Article)
February 1, 2002... The World Trade Center's leaseholder has opened another front in the legal battle over property claims stemming from the Sept. 11 terrorist destruction of the twin towers. World Trade Center Properties LLC, an affiliate of Silverstein...

Australia brush-fire claims reach a$70m. (Briefing).(commercial insurance claims)(Brief Article)(Statistical Data Included)
February 1, 2002... Large commercial claims and more reported home losses boosted the estimated claims for a series of brush fires in southeast Australia to A$70 million (about US$36.6 million), an insurance group said. The Insurance Disaster Response...

Majority of states allow insurers to dump coverage for terrorism. (Briefing).(USA)(Brief Article)
February 1, 2002... Ohio has joined the 35 states and two jurisdictions that have said they will approve optional exclusions of terrorism risks in commercial insurance policies. Ohio Director of Insurance Lee Covington said he has approved the language...

Terror-relief bill adds structured-settlement safeguard. (Briefing).(tax relief for Sept. 11 victims)(Brief Article)
February 1, 2002... A bill passed by Congress that gives tax relief to victims of the Sept. 11 terrorist attacks contained language imposing a 40% excise tax on structured-settlement transfers that have not been approved by a court or responsible administrative...

Vermont captive population surpassed 500 last year. (Briefing).(captive insurance)(Brief Article)(Statistical Data Included)
February 1, 2002... Vermont, the largest captive insurance domicile in the United States and the third-largest in the world, kept growing in 2001, adding 38 new captives to its roster. The state hit the milestone of its 500th captive in 2001--its 20th year as...

Best's rating changes. (Ratings).(insurance companies)(Statistical Data Included)
February 1, 2002... This summary of Best's Rating Changes includes U.S.-domiciled life, health-care and property/casualty insurers as well as international insurers that had ratings assigned, changed or placed under review since this section last appeared in the...

Stirring America's melting pot: As the ethnic population rises in the United States, insurers are beginning to take a hard look at marketing strategies to target these growing populations. (Marketing Cover Story).(Statistical Data Included)
February 1, 2002... For Eric Cheng, coming to the United States meant more than just a new start. It also was an opportunity for him to give something back to his fellow Asian-Americans. Twenty years ago, Cheng and his business partner came to America as...

Ready for anything: The Sept. 11 terrorist attacks and the resulting losses across multiple lines have renewed interest in enterprise risk management. (Risk Management Industry Strategies).(insurance industry)
February 1, 2002... Enterprise risk management--the complex process of measuring and managing a business's overall risk exposure--has long been a favorite tool of banks for managing the asset and liability sides of their balance sheets. Applied to a global...

Revealing the wrongs: Enterprise risk management is mired in misconceptions that must be understood before efforts can be successful. (Risk Management Industry Strategies).
February 1, 2002... Nat long ago, senior executives in large companies could feel confident that they had scaled the heights of enterprise and work in relative comfort. These days, unprecedented change affects every aspect of the business environment. Whether it...

Staying the course: As insurers navigate the changing regulatory environment, they have set their sights on speed-to-market rules, which are in the early stages of use and are facing growing pains in 2002. (Regulation Industry Strategies).
February 1, 2002... Insurers face an urgent need to get approvals more quickly for new products and rate changes. That's what they say must happen if they are to keep up with an ever-increasing number of less constrained competitors. Those...

Growth spurt: Captive managers across the industry expect substantial increases in the number of new captive formations and the resurrection of existing, dormant captives as the property/casualty market hardens. (Alternative Market Property/Casualty).
February 1, 2002... Captive insurance company managers expect explosive growth in captive formations and their use over the next 12 to 24 months, as traditional risk transfer becomes more expensive and less available and the definition of risk changes. Some...

Playing the odds: Corporate sponsorship of athletes, teams and sporting events is on the rise, and insurers are taking on the risk. (Promotional Insurance Property/Casualty).(Brief Article)
February 1, 2002... Some in the business call it sponsor insurance. Others use the terms "contingency insurance" or "promotional insurance." Whatever the name, it is a small, interesting niche of the insurance marketplace with growth potential. The coverage...

Kemper alliance targets women-owned companies. (Marketplace Property/Casualty).(Kemper Insurance Cos. offers insurance to members of the National Association of Women Business Owners)(Brief Article)
February 1, 2002... Kemper Insurance Cos. hopes to tap the expanding market of women-owned businesses, which is growing at a rate 2.5 times that of all U.S. firms and is generating more than $800 billion in annual sales. Kemper and Financial Keyosk, a...

Surveys reveal credit cards as gateway to cross-selling. (Marketplace Property/Casualty).(selling insurance through credit card companies)(Brief Article)(Statistical Data Included)
February 1, 2002... According to two separate surveys, credit cardholders read direct mail and buy insurance from their credit card companies. A survey by Synergistics, a marketing research company for the financial-services industry; reports that 33% of...

Atlantic Mutual enhancements include cyber-damage coverage. (Marketplace Property/Casualty).(Atlantic Mutual Insurance Co. expands insurance coverage)(Brief Article)
February 1, 2002... Atlantic Mutual Insurance Co. has expanded its Atlantic Master Plan and Distinctive Home insurance policies to cover cyber-damage. The enhancements include coverage for identity fraud, theft of credit card numbers over the Internet, losses...

Ace unit guards against power outages. (Marketplace Property/Casualty).(Ace USA Power Products' new insurance product for electric utilities)(Brief Article)
February 1, 2002... Ace USA Power Products has a new product for electric utilities--PowerBacker LTO--which is designed exclusively to provide protection against long-term outages. PowerBacker LTO meets the utility industry's demand for a solution to earnings...

U.S. Chamber of Commerce endorses AIG products. (Marketplace Property/Casualty).(American International Group Inc.)(Brief Article)
February 1, 2002... American International Group Inc. has teamed up with the U.S. Chamber of Commerce to offer the Chamber's more than 3 million member businesses and organizations insurance, employee benefits products and other financial services. The...

Staying in touch with the public: So far, insurers have maintained good graces with consumers since Sept. 11. But with rates on the rise, the industry will need to be extra diligent to stay in favor. (Selling Insight Property/Casualty).(insurance industry)(Brief Article)
February 1, 2002... Lots of things influence the public's attitude toward insurers, including how we tell our side of the story and how we respond to negative events. Two issues need attention right now--the Sept. 11 tragedy and rising insurance prices. Over...

Shocks and bonds: Recent events may brighten the prospects for the issuance of catastrophe bonds. (Loss/Risk Management Insight Property/Casualty).(Rise in issuance of catastrophe bonds)(Brief Article)
February 1, 2002... One of the most visible effects of the horrible events of Sept. 11 is the sharp rise in insurance rates. A less-noticed, but equally important, drama is the potential impact of these events on the evolution of the insurance industry itself....

European catastrophe-risk trading goes online. (Loss/Risk Management Notes Property/Casualty).(Internet-based risk-trading platform for reinsurance industry)(Internet/Web/Online Service Information)(Brief Article)
February 1, 2002... Inreon, an Internet-based risk-trading platform for the reinsurance industry, has launched its European catastrophe product. The new online service delivers faster submission and response times, binding quotes from a panel of blue-chip...

Political risk product protects investors in emerging markets. (Loss/Risk Management Notes Property/Casualty).(Insurance for risk of currency devaluations)(International Pages)(Brief Article)
February 1, 2002... Although emerging markets are considered attractive by investors because of the potential for high return, there is a great deal of risk involved. The uncertain political and economic climates--including the value of the currency, stocks and...

SUVs, pickup trucks popular among California thieves. (Loss/Risk Management Notes Property/Casualty).(California's stolen vehicles report)(Government Activity)(Brief Article)(Statistical Data Included)
February 1, 2002... Thieves in California's urban areas prefer Toyota Camrys and Honda Accords, mirroring a national trend. But in rural and border regions, pickup trucks and sport-utility vehicles are more likely to be stolen, according to a new national report....

Raising standards: Higher prices for property insurance are not enough; underwriters must refocus on the basics to overcome years of relaxed underwriting. (Underwriting Insight Property/Casualty).(Condition of the property marketplace data)(Brief Article)
February 1, 2002... The improving condition of the property marketplace is a welcome change. Years of premium decreases have left most companies with books of property business that are underpriced, sometimes severely. While this market certainly allows for...

Entrepreneurial spirit bears fruit. (Company Profile Life/Health).(Hartford Life is fastest-growing major life insurance company)(Statistical Data Included)
February 1, 2002... Over the past dozen years, Hartford Life has transformed itself from a niche marketer to the fastest-growing major life company, almost entirely through an entrepreneurial culture and good strategic decisions. Optimism runs high in...

Life after the fall. (Variable Annuities Life/Health).(Survey on variable annuity market)(Statistical Data Included)
February 1, 2002... In light of the drop in the stock market, scale will play an increasingly important role in the variable annuity market, and insurers will re-examine their overall approach to offering investment-oriented products. After five years of a...

Picking up the pace: The president of the association of home office underwriters talks about speedier underwriting and the quest for knowledge. (Underwriting Life/Health Q&A).(Changes in the life and health insurance industries)
February 1, 2002... The life and health insurance industries have been struggling somewhat for the past 10 years with shrinkage due to mergers, consolidations and companies becoming insolvent. In addition, market forces, changes in medical techniques,...

Two oars row better than one: If managed effectively, alliances offer a powerful way to gain new capabilities and market reach. (Underwriting Insight Life/Health).(Alliance partners for insurance companies)(Brief Article)
February 1, 2002... Insurance companies tempted to dip their oars into the waters of a promising new venture often recognize that they cannot, on their own, make much headway. Little wonder, then, that strategic alliances are on the rise throughout the insurance...

CNA life adds to ViaChoice. (New Products and Services).(ViaChoice products, new universal life insurance)(Brief Article)(Product Announcement)
February 1, 2002... Line: CNA Life, Nashville, Tenn., has introduced a new version in its line of ViaChoice products, ViaChoice 3.0. The new universal life product ensures that premiums will not increase and coverage will not lapse during the first 10 years as...

Variable-Annuity rider. (New Products and Services).(Adds rider to variable annuities)(Brief Article)
February 1, 2002... Locks In 15% Gains: Allmerica Select, a division of Worcester, Mass.-based Allmerica Financial, has added a rider to its variable annuities that automatically locks in a new death benefit whenever the contract value rises by 15% or more over...

High-net-worth investors still have faith in economy. (Marketplace Life/Health).(2001 Phoenix Wealth Management Survey)(Brief Article)(Statistical Data Included)
February 1, 2002... Terrorism on Sept. 11 did not rattle America's high-net-worth investors, who are hopeful about the future of the economy, according to the 2001 Phoenix Wealth Management Survey. According to a follow-up survey conducted in September 2001,...

Conseco enters variable life market. (Marketplace Life/Health).(Conseco Variable Universal Life offers 57 investment options)(Brief Article)(Product Announcement)
February 1, 2002... Conseco Inc., Indianapolis, has introduced Conseco Variable Universal Life, issued by the Conseco Variable Insurance Co. The product offers 57 investment options, three death-benefit options, dollar-cost averaging and asset-allocation...

Where to go from here: Consumers have shown they may have more faith in insurance products than the industry thought possible. Now insurers must decide how to keep that faith. (Selling Insight Life/Health).(Insurance industry works on public image)(Brief Article)
February 1, 2002... Nearly five months have passed since the Sept. 11 tragedy. While there may be a few exceptions, almost everyone has done the right thing--including the insurance industry. Perhaps that's a little too modest. It's more accurate to...

A direct link: Network-enabled pricing, quoting and issuance can lead to savings for insurers. (Network-Based Distribution Technology).(Property/casualty insurance company)(Internet/Web/Online Service Information)(Statistical Data Included)
February 1, 2002... Property/casualty insurers increasingly look to the Internet to eliminate redundant processes, boost efficiency and reduce sales and service costs. To date, the industry has barely begun to tap into the huge potential cost savings and economic...

Put your money where your mouse is: Operational modeling can justify information technology investments. (Operational Cost Modeling Technology).(Insurance industry's sales forecasts)
February 1, 2002... Operations managers in scores of insurance companies are besieged with "what if" questions with no way of providing hard answers. To make those questions relevant, back-office managers need a form of operational cost modeling to insure a smooth...

Update the claims process: The level of sophistication needed by handlers to do their jobs has soared. Yet, the telephone, copier and fax machine remain the most commonly used technology tools. (Technology Insight Technology).(Property/casualty insurers' annual revenue used up by claims)(Brief Article)
February 1, 2002... Insurers are saddled with multiple challenges. In today's frail economy, they must respond to heightened competition, increased customer expectations and demands to deliver greater shareholder value. Revitalizing the claims function can help...

Louisiana, North Carolina allow electronic transactions. (Technology Notes).(Uniform Electronic Transactions Act)(Government Activity)(Brief Article)
February 1, 2002... Louisiana and North Carolina have joined the list of states that have enacted a version of the Uniform Electronic Transactions Act, designed to regulate the access and use of electronic records and signatures in insurance and other...

Study offers advice on technology decisions. (Technology Notes).(Independent Insurance Agents of America's conference)(Brief Article)
February 1, 2002... The Agents Council of Technology has released a study to help agents and insurance industry leaders evaluate potential technology decisions. The study, "A Vision of the Future for Agency Technology Including the Essential Next Steps for...

RealMed Corp. (Web News you can Use).(Real-time claims-resolution technology deal)(Brief Article)
February 1, 2002... Blue Cross & Blue Shield of North Carolina and RealMed Corp. have signed a multiyear agreement to deploy real-time claims-resolution technology at doctors' offices in North Carolina. The technology allows medical insurance claims to be resolved...

DWL Inc. (Web News you can Use).(DWL Insurance for Property and Casualty)(Brief Article)
February 1, 2002... DWL Inc., which provide enterprise customer-management applications, announced that CGU Group Canada Ltd. has gone live with the first phase of its implementation of DWL Insurance for Property and Casualty. (Web News You Can Use) It...

InsuranceNoodle. (Web News you can Use).(Expands to Mississipi, Nevada, New Hampshire, North Dakota and Utah)(Brief Article)
February 1, 2002... InsuranceNoodle is now selling insurance in Mississipi, Nevada, New Hampshire, North Dakota and Utah. With the addition of these five states, the e-broker is now licensed in 45 states and the District of Columbia and reaches 96% of all small...

EEOC lawsuit backs agents, accusing allstate of retaliation. (Companies).(Equal Employment Opportunity Commission enters Allstate Corp. case)(Government Activity)(Brief Article)
February 1, 2002... A federal agency is throwing its weight into Allstate Corp.'s long-running dispute with some of its agents, in the form of a lawsuit accusing the insurer of violating federal law banning retaliation. The Equal Employment Opportunity...

Pru IPO raises nearly $4 billion. (Companies).(Prudential Financial Inc.'s initial public offering)(Brief Article)(Statistical Data Included)
February 1, 2002... Prudential Financial Inc. said it sold 126.5 million shares of common stock in its initial public offering, including 16.5 million shares that went to the IPO's underwriters who exercised their options to buy. The underwriters bought the...

Aid association for Lutherans, Lutheran brotherhood merge. (Companies).(New fraternal benefits society has combined $6 bn in annual revenue for 2000)(Brief Article)
February 1, 2002... The Aid Association for Lutherans said it has merged with Lutheran Brotherhood to form the nation's largest fraternal benefits society. With a combined $6 billion in annual revenue for 2000, the organization serves 3 million members and...

PacifiCare to cut 1,300 jobs. (Companies).(PacifiCare Health Systems Inc. will save between $80 mn and $90 mn)(Brief Article)
February 1, 2002... PacifiCare Health Systems Inc. will slash 15% of its work force, or about 1,300 jobs, in a reorganization that is expected to save the health insurer between $80 million and $90 million a year. But PacifiCare's move to shrink its corporate...

Trade a pizza for a policy? state farm targets MTV crowd. (Companies).(U.S.'s largest homeowners and auto insurer launches ad campaign)(Brief Article)
February 1, 2002... State Farm Group wants young consumers to know that if they can afford a pizza or two a month, they can afford State Farm coverage. The nation's largest homeowners and auto insurer is targeting the under-30 crowd with advertisements placed...

Executives.(Miix Group's new president and chief executive officer)(Brief Article)
February 1, 2002... Miix Group Promotes Costante Miix Group has named Patricia A. Costante president and chief executive officer and has appointed her to its board. Costante previously served as chief operating officer and was responsible for all the...