Best's Review articles from February 2003

Best's Review archives from February 2003

Worlds of chances and challenges. (Editor's Prologue).(Editorial)
February 1, 2003... In the search for new markets and potential policyholders, insurers are finding that Asia looks very good. China is particularly attractive, with its population of about 1.3 billion and insurance premiums that were only 2.2% of its gross...

Taking a shot at credit scoring. (Comment).(Letter to the Editor)
February 1, 2003... The underwriter's eternal quest for the silver bullet has always failed, and will always fail, to include the most recent silver bullet, credit scoring: Correlation without causation is statistically fool's gold. Is a credit score a causative...

In the spotlight *.(insurance executive quotation, US)(Brief Article)
February 1, 2003... "My perception of terrorism is the same as it was on Sept. 12, 2001--that it is an act of war that could ultimately cost $100 billion to $200 billion, that it is not an insurable event and that there is not enough private capital to cover it...

Correction.(Correction Notice)
February 1, 2003... Washington's new credit-scoring law was described incorrectly in the January issue. The law prohibits cancellation or nonrenewal of policies because of the policyholder's credit score, prohibits insurers from using six credit factors in...

Princeton Insurance Co. (People in Insurance).(appointment, US)(Brief Article)
February 1, 2003... William J. McDonough has been named chief executive officer of Princeton Insurance Co., effective Jan. 1, 2003. He succeeds Donald E. Smith, who officially retired on that date. Smith will continue with the company in a consulting capacity. ...

Royal & Sun Alliance Insurance Group plc. (People in Insurance).(appointments, UK)(Brief Article)
February 1, 2003... Royal & Sun Alliance Insurance Group plc has appointed John Napier chairman designate and Andy Haste group chief executive. Napier, who is also chairman of Kelda Group plc, was to join Royal & Sun's board in January, succeeding Sir Patrick...

Conseco bankruptcy may spur regulatory change.(US)
February 1, 2003... The bankruptcy of Conseco Inc.--coming on the heels of the high-profile bankruptcies of Enron Corp. and WorldCom Inc. and heightened concern about corporate governance--might be the impetus for legislative and regulatory change, according to a...

New York Life International LLC. (People in Insurance).(appointment, US)(Brief Article)
February 1, 2003... New York Life International LLC has named David J. Skinner chief executive officer of the Asia region. Skinner, who has been chief financial officer and head of business development for the company since 2000, has relocated to the regional...

Kemper Insurance Cos. (People in Insurance).(appointments, US and Canada)(Brief Article)
February 1, 2003... William D. Smith, president and chief operating officer of Kemper Insurance Cos., said he will retire immediately. Kemper Chairman and CEO David B. Mathis will postpone his own retirement and continue as chairman and CEO for the foreseeable...

By the numbers.(statistics on insured losses due to world's 10 largest natural catastrophes, 2002)(Brief Article)(Illustration)
February 1, 2003... 2002 Catastrophes: Flooding, Wind And Winter Storms Prevail 2002 recorded about 700 catastrophes, compared with the 1990s' average of 650, according to Munich Re. The insured losses for the natural catastrophes totaled around $12 billion....

Meetings.(Calendar)
February 1, 2003... Feb. 2-4: National Association of Independent Insurers, Executive Roundtable Seminar, J.W. Marriott Las Vegas Resort, Las Vegas. Phone: (847) 297-7800, Fax: (847) 297-5064, Web site: www.naii.org. Feb. 3-5: The Council of...

Coalition releases top 13 insurance schemes of 2002.(Coalition Against Insurance Fraud adds 13 to its Insurance Hall of Shame, US)
February 1, 2003... The Coalition Against Insurance Fraud inducted 13 insurance swindlers into its "Insurance Hall of Shame," a group that includes former financier Martin Frankel, who stole millions from his seven insurance companies, and a man who reported that...

Aviation loss estimates 'benign' for 2002. (Briefing).(insured losses for hull and liability lines, world)(Brief Article)
February 1, 2003... The year 2002 was "relatively benign" when it came to estimated insured losses for aviation hull and liability lines, according to a bulletin from Airclaims Ltd., a United Kingdom-based provider of aviation insurance information and...

Insurers should watch contract language. (Briefing).(says Charles Crispin of Evergreen Re)(Brief Article)
February 1, 2003... With reinsurance brokerage Evergreen Re's renewals under way, the company said managed-care companies are struggling to balance risk with price, and some are experimenting with new forms and contract language, according to the company's...

Banks increase income from insurance sales. (Briefing).(US)(Brief Article)
February 1, 2003... While banks in general have seen increases in insurance fee income, smaller banks have made greater progress in increasing income from insurance sales, according to an industry review. The mean insurance fee income compared with noninterest...

Surplus lines premium volume doubles. (Briefing).(insurance industry, California)(Brief Article)
February 1, 2003... Surplus-lines premiums in California increased 105% in 2002 to $3.6 billion, reflecting the "impact of the hard market," according to the Surplus Line Association of California, which compiled the statistics. "Insurers have been hit hard...

Vermont nears 600 licensed captives after record year.(70 such insurers added in 2002)(Brief Article)
February 1, 2003... Vermont had a record year when it came to licensing captive insurers, finishing 2002 with 70 newly licensed captives that brought the state's total to 597. Leonard Crouse, director of captive insurance for the state's Department of...

Europe may see 900 million euro insured losses from Windstorm Calvann.(Brief Article)
February 1, 2003... Insured losses from Windstorm Calvann, which swept across northeastern France and southwestern Germany Jan. 2 with wind speeds reaching 80 mph, are likely to hit 900 million euro (about $959 million), according to Risk Management Solutions Inc....

Cigna cuts work force, takes $98 million charge. (Briefing).(US)(Brief Article)
February 1, 2003... Cigna Corp. said it would cut its work force by a total of 3,250 employees and take an after-tax charge of $98 million for the fourth quarter of 2002. The reduction is 8.4% of the company's total staff and includes the elimination of 700...

French insurers to combine subsidiaries. (Briefing).(to form jointly owned holding company)(Brief Article)
February 1, 2003... Two French insurers said they would combine their health insurance service and advisory businesses under a new holding company to be 50% owned by each insurer. AGF Group, a subsidiary of Germany's Allianz AG Holding, and MAAF Assurances...

Health-care spending jumps at highest rate in decade.(United States, 2001)
February 1, 2003... Health-care spending in the United States jumped 8.7% in 2001, the highest rate of growth in a decade, according to a new government report. Americans spent $1.42 trillion on health care in 2001, according to the report released by the...

Texas launches residual market for homeowners insurance.(Brief Article)
February 1, 2003... Texas has formally launched a government-mandated residual market for homeowners insurance. The Texas Fair Access to Insurance Requirements Plan Association will serve as the official "market of last resort" in the state, where skyrocketing...

Best's Rating Changes. (Ratings).(life, health-care and property/casualty insurers; credit ratings)
February 1, 2003... 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...

Rites of passage: Australia and New Zealand are often viewed as the gateway to larger markets in Asia, but insurers have to overcome problems in those countries first. (Globalization: Cover Story).
February 1, 2003... Asia--particularly the Pacific Rim--is considered one of the most promising potential markets for global insurers, particularly those based in the United States and Europe, where market penetration is higher. With its huge population and...

Going for the gold: China appears poised to lead South and East Asia's push as the fastest-growing insurance market in the world. (Globalization: Cover Story).
February 1, 2003... Insurers are finding it tough to expand and turn a profit in most markets as 2003 gets under way. Investment losses from weak stock markets, regulatory uncertainty and prior-year losses such as asbestos continue to hamper growth in Europe, the...

A new way of thinking: online technology is not just for administrative tasks anymore. Insurers are now beginning to use it for more complicated parts of their businesses. (Information Management: Industry Strategies).
February 1, 2003... Medical interviews have long been a tedious part of the life insurance underwriting process, but Beneficial Life Insurance Co. has found a way to expedite the process, relieve agents of the interviewing responsibility and remove redundancy in...

Getting it all together: Florida's new chief financial officer looks to the challenge of combining two formerly independent departments, as well as resolving key insurance issues. (State Regulation: Industry Strategies Q&A).(Tom Gallagher)(Interview)
February 1, 2003... On Jan. 7, Tom Gallagher began serving as Florida's chief financial officer, heading up the Department of Financial Services. The new structure merges the Department of Insurance and the Department of Banking and Finance. He also serves on the...

Line drive: advocates of medical-liability reform legislation will take on federal and state lawmakers again. (Medical Liability: Property/Casualty).
February 1, 2003... Republican gains in the November 2002 election have some predicting improved prospects for medical-liability reform legislation during this Congressional session. Last September, House members approved a reform bill, H.R. 4600, that capped...

Quick cover: segregated-cell captives offer almost instant insurance solutions combined with lower costs, but experts say their legal structure hasn't truly been tested yet. (Alternative Market: Property/Casualty).
February 1, 2003... With insurance prices on the rise, coupled with terms and conditions tightening, many businesses seeking to take control of their own risk are looking to the newest tool in the alternative market: segregated-cell captives. Known by...

Mixing--and separating--mold and myth: experts say it's hard to find scientific facts to support claims of some mold-related health hazards. (Mold: Property/Casualty).
February 1, 2003... Melinda Ballard became a champion of policyholder rights after a Texas jury awarded her $32 million against Farmers Insurance Group for mishandling her family's mold claims. Erin Brock-ovich, the subject of a hit movie for her legal fight...

Mold delineated: Insurance Services Office has introduced policy language on mold to help insurers limit exposure but retain underwriting flexibility. (Mold: Property/Casualty).
February 1, 2003... A California jury awarded $18.5 million to a homeowner in a coverage dispute with his insurance company, an award that a judge later reduced to $3 million. A construction company in Florida paid $17.3 million in a sick building and construction...

Ready or not: although the post-Sept. 11 market appears to give weaker insurers a respite, they need to make action plans to fight for their survival. (Market Competition: Property/Casualty).
February 1, 2003... In the midst of an over-capitalized property/casualty industry that for several years made many U.S. property/casualty insurers vulnerable to failure or acquisition, all insurers waited and prayed for signs that a "turn" in the market had...

Tackling terrorism coverage: a government backstop will have limited value since most claims likely will fall within net retentions in the Terrorism Risk Insurance Act. (Underwriting Insight: Property/Casualty).
February 1, 2003... Now that the insurance industry has been required to deal with the issue of providing terrorism insurance, the question is how can insurers tackle a peril that many underwriters consider entirely uninsurable by private industry. Premium...

Fireman's Fund portal helps middle-market customers. (Marketplace: Property/Casualty).(Fireman's Fund Insurance Co.)(Brief Article)
February 1, 2003... Fireman's Fund Insurance Co. is rolling out its iCustomer Series initiative to the hotel, restaurant, real estate, retail, wholesale and manufacturing segments. The program's interactive portal helps middle-market customers streamline risk...

Safeco program scores with agents, community. (Marketplace: Property/Casualty).(Brings electronic scoreboards to youth baseball fields)(Brief Article)
February 1, 2003... Already famous for sponsoring the Seattle Mariners' ballpark, Safeco is also in the second year of a national initiative with its independent agents to bring electronic scoreboards to youth baseball fields. The $1 million PlayBall program...

Study: auto insurance market reaches maturity. (Marketplace: Property/Casualty).
February 1, 2003... Personal automobile insurers are operating under a "caution flag," with insurers unable to achieve necessary growth in premiums or get an adequate return on surplus, according to a new study. Since 1993, auto insurers have only been able to...

Chubb offers posh homeowners coverage for domestic help. (Marketplace: Property/Casualty).(Chubb Group of Insurance Cos.)(Brief Article)
February 1, 2003... The sluggish U.S. economy is creating another market for insurers. The costs associated with claims alleging wrongful termination, sexual harassment and employment discrimination from a housekeeper, nanny, cook or other domestic worker can now...

Insurer pairs with car-rental business for new service. (Marketplace: Property/Casualty).(Plymouth Rock Assurance Corp., Enterprise Rent-A-Car)(Brief Article)
February 1, 2003... Plymouth Rock Assurance Corp. is partnering with Enterprise Rent-A-Car to provide cars for the insurer's concierge service program called Door-to-Door Service. The program works with auto body shops and rental car companies to take the bother...

Insuring tangible property: as trade secret theft becomes a greater risk, trade secret coverage becomes a bigger concern. (Loss/Risk Management Insight: Property/Casualty).(Avery Dennison Corp. vs. Allendale Mutual Insurance Co.)(Column)
February 1, 2003... A recent decision from the United States Circuit Court of Appeals for the 9th Circuit, Avery Dennison Corp vs. Allendale Mutual Insurance Co., is the rare instance in which a decision involves significant insurance law, news and human interest....

With cargo security risks rising can technology be a solution? (Loss/Risk Management Notes: Property/Casualty).(software solutions )(Brief Article)
February 1, 2003... With the American Institute of Marine Underwriters reporting the growing terrorism risk to the world's general cargo that is shipped in standard box containers, there is a need for software to handle global logistics and supply chain...

The market for legal malpractice coverage beginning to take off. (Loss/Risk Management Notes: Property/Casualty).(Brief Article)
February 1, 2003... Once a rare occurrence, the frequency of legal malpractice is on the rise, reports Minnesota Lawyers Mutual. Small law firms are slow to use legal malpractice insurance because they don't perceive a need. "Current forecasting trends suggest...

Experts partner to study terrorism risk compensation. (Loss/Risk Management Notes: Property/Casualty).(RAND, Risk Management Solutions)(Brief Article)
February 1, 2003... RAND and Risk Management Solutions are teaming up to create a research center to study the risk of terrorism and how to compensate its victims. The center's goal will be to support more informed public policy decisions on how to manage...

Staying up front: the longer the hard market lasts, the harder we must work to keep the public informed. (Selling Insight: Property/Casualty).(public opinion of insurance industry)(Column)
February 1, 2003... As the long-awaited hard market enters its third year, the industry's most-asked question is, how long will it last? Many are optimistic; others aren't so sure. Comparisons with the late 1980s are everywhere, though conclusions vary widely. ...

Vigilance rewarded: with better technology and more attention to suitability issues, the writers of life insurance and annuities appear less likely to face new class-action lawsuits. (Market Conduct: Life/Health).
February 1, 2003... Insurers and regulators have made great strides in policing the sale of life insurance and annuities since the class-action lawsuits of the mid 1990s tarnished the industry. The improvements have been so good, in fact, that some industry...

Moving target: a more mobile work force and a drop in employer-provided benefits could enhance the market for individual disability-income insurance. (Disability: Life/Health).
February 1, 2003... Economic and demographic trends are fueling the sales of noncancelable individual disability-income insurance. A variety of forces are putting American workers' income at risk, leaving them with less ability than ever to tolerate disruptions in...

Life-altering experience: the new mortality table for life products gives insurers the opportunity to develop more competitive products. (Mortality: Life/Health).
February 1, 2003... 1941...1958...1980...2001. Once every 20 years or so, a new mortality table is developed for individual life-insurance products. The National Association of Insurance Commissioners approved the latest table, the 2001 Commisioners Standard...

Allure of voluntary benefits: despite the risks, the insurance industry recognizes there is much opportunity in offering benefits at the workplace that employees can choose. (Underwriting Insight: Life/Health).(Column)
February 1, 2003... Voluntary means choice. And, given a choice, individuals try to select what is best. That selection drives risk. So why are voluntary benefits so popular and growing at a steady pace in the group insurance industry? Opportunity. To gain a...

CNA insurance companies. (New Products and Services).(Independence LTC long-term-care product)(Brief Article)
February 1, 2003... CNA LTC, the Nashville, Tenn.,-based long-term-care business unit of the CNA insurance companies, has introduced a product that guarantees stable rates for 20 years. The product, Independence LTC, uses a "payment pool" concept of up to $1...

The Principal Financial Group. (New Products and Services).(Benefit VUL variable universal life product)(Brief Article)
February 1, 2003... The Principal Financial Group, Des Moines, Iowa, has introduced a variable universal life product for its small-business corporate-owned life insurance market. Benefit VUL is a financing vehicle for nonqualified deferred compensation...

The Phoenix Companies Inc. (New Products and Services).(debuts Phoenix Edge-SPIA immediate annuity )(Brief Article)
February 1, 2003... The Phoenix companies Inc., Hartford, Conn., have added a second immediate annuity to their product line, Phoenix Edge-SPIA. Though it does not offer a variable investment component, it allows policyholders, at no cost, to choose escalating...

'Road map' harder to read. (Marketplace: Life/Health).(problems continue to grow for retirees)(Brief Article)
February 1, 2003... Retirees will face more complex financial decisions in years that are more likely to require the help of a professional adviser, according to an analysis by Lincoln Financial Group. The choices will be harder due to longer lives, a decline...

First-hand experience. (Marketplace: Life/Health).(Prudential Financial Inc. unveils new sign in Times Square )(Brief Article)
February 1, 2003... Michael Hines, Senior Vice President, Prudential Financial Inc., stands in front of the company's new sign in Times Square. The 5,000-square-foot, 200,000-watt spectacular is the first sign built in New York that allows a passerby to change the...

Variable Annuity assets fell sharply. (Marketplace: Life/Health).(Brief Article)
February 1, 2003... Net assets of variable annuities in the United States fell 9.0% in the third quarter 2002 from the previous quarter and 7.3% from the end of the third quarter in 2001, according to the National Association for Variable Annuities. Net...

Hartford execs tout new markets. (Marketplace: Life/Health).(Brief Article)
February 1, 2003... In recent public speaking engagements, executives of the Hartford Financial Services Group urged insurers to become better at selling to business owners, the "emerging affluent" and to aging populations in other developed countries. Robert...

MetLife teams up with National LTC Network. (Marketplace: Life/Health).(Brief Article)
February 1, 2003... MetLife Inc. has entered into a strategic marketing alliance with The National LTC Network Inc., a consortium of long-term-care insurance brokerage agencies with representatives throughout the United States. Under the agreement, the network...

LTC benefits top $1 billion for first time in single year. (Marketplace: Life/Health).(long term care)(Brief Article)
February 1, 2003... Writers of long-term-care insurance paid more than $1 billion in annual benefits for the first time in 2002, according to a magazine that writes about distribution of the product. "This is a very significant industry milestone considering...

California Credit Union signs pact with LTC marketer. (Marketplace: Life/Health).(Brief Article)
February 1, 2003... The Golden 1 Credit Union, Sacramento, Calif., has reached an agreement with Long Term Preferred Care, an independent marketer based in Nashville, Tenn., to offer long-term-care insurance to its members. The credit union has more than...

Suit yourself: interest in life insurance is reviving, but insurers need to educate consumers so they can determine suitability of products for themselves. (Selling Insight: Life/Health).
February 1, 2003... It's true. Life insurance products have looked dull and dowdy for years. There was a time when just about everyone owned a life insurance policy. The poor and the rich shared the common bond of a life insurance policy. Then came the more...

Securing the system: in the wake of viruses, hackers and worms, insurers maintain constant guard over their computer systems. (Cyber-Security: Technology).
February 1, 2003... With cyber-crime on the rise, many insurers have formed security teams to monitor and protect their computer systems in what they say is a never-ending battle to protect their systems from attacks. Those charged with protecting their...

Data blocker: insurers can adopt new technology tools to help them keep privacy data secure. (Security: Technology).
February 1, 2003... Insurers must incorporate into their operations several new international, federal and state regulations dealing with privacy and security including the Gramm-Leach-Bliley Financial Services Modernization Act, the Health Insurance Portability...

Aflac and Intuit Inc. (Web News You Can Use).(Brief Article)
February 1, 2003... Aflac and Intuit Inc., a software company, said they have launched a product that will allow small businesses to follow a setup process so their payroll systems can automatically deduct pretax or post-tax deductions to pay for Aflac insurance.

Travelers Property Casualty. (Web News You Can Use).(Brief Article)
February 1, 2003... Travelers Property Casualty said it is now offering real-time quoting capabilities for small commercial insurance to independent agents with AMS Services Inc., an agency software company. The new system allows agencies to obtain quotes directly...

Ameritas Group, the group dental and eye care division of Ameritas Life Insurance Corp., said it has launched Web-based enrollment and billing. (Web News You Can Use).(Brief Article)
February 1, 2003... Ameritas Group, the group dental and eye care division of Ameritas Life Insurance Corp., said it has launched Web-based enrollment and billing. The service, called eEnroll, gives eligible policyholders the ability to complete enrollments,...

Industrial Alliance Group. (Web News You Can Use).(Brief Article)
February 1, 2003... Montreal-based Industrial Alliance Group said it has launched Web@dmin, an Internet-based service that has been specially designed for group plan administrators and members. This new service, which is being offered by the Group's three life...

Insurers can use technology to stop money laundering. (Technology Notes).(Brief Article)
February 1, 2003... Breaking up an $80 million money-laundering ring involving international life insurance shouldn't be seen as a sign of a systemic problem within the industry, said a spokesman for the American Council of Life Insurers. How much of an...

PATRIOT Act inspires new products. (Technology Notes).(Brief Article)
February 1, 2003... New regulations under the USA PATRIOT Act are forcing insurers to tackle issues related to money laundering and terrorist financing within the industry. Several new products, including the following, have been launched to help stop money...

A hunt for treasure? Data mining can give insurers a tool to view their business in a new way. (Technology Insight).
February 1, 2003... When it comes to generating return on investment, or ROI, data warehousing gets a bad rap. In some circles, it's considered just an expense of doing business. But if implemented properly, companies are able to recoup their data warehousing...

Prudential to acquire American Skandia. (Companies).(Brief Article)
February 1, 2003... Prudential Financial Inc. has signed a definitive purchase agreement with Sweden-based Skandia Insurance Co. Ltd. to acquire its U.S. division, American Skandia Inc., for $1.265 billion. The acquisition would propel Prudential into a top-10...

WellPoint agrees to acquire Calif. Dental-Vision provider. (Companies).(Brief Article)
February 1, 2003... WellPoint Health Networks Inc. said it would acquire Golden West Dental & Vision, a privately held company with about 293,000 members. Terms of the transaction weren't disclosed. WellPoint, which already has 2.7 million members in its dental...

U.K. insurer covers child care for disabled homemakers. (Companies).(Brief Article)
February 1, 2003... The chief executive officer of a U.K. startup company offering disability coverage for homemakers said the business model for his company grew out of the personal experience of a colleague, whose wife was disabled by a medical procedure and...

Allianz to offer D&O coverage for first time in United States. (Companies).(Brief Article)
February 1, 2003... Allianz Insurance Co. has launched a unit to offer directors and officers insurance in the United States for the first time. Many insurers have cut back or reconsidered D&O coverage after last year's high-profile corporate finance scandals...

Broker InsuranceNoodle buys Conn.-based XL Vianet. (Companies).(Brief Article)
February 1, 2003... Online insurance broker InsuranceNoodle said it had acquired XL Vianet, a division of XL Specialty Insurance Co. InsuranceNoodle said the acquisition would "greatly expand its capabilities and online product availability for its network of...

Amerigroup transfers to NYSE. (Companies).(Brief Article)
February 1, 2003... Amerigroup Corp., a health insurer that specializes in serving Medicaid and low-income members, transferred from the Nasdaq to the New York Stock Exchange, opening Jan. 3 with a stock price of $31.34 a share. Jeffrey L. McWaters, chairman...

Bermuda's Axis Speciality forms holding company. (Companies).(Brief Article)
February 1, 2003... A Bermuda reinsurance startup has formed a holding company--Axis Capital Holdings Ltd.--in a move the company said would give it more flexibility to pursue its goals. The new entity became the holding company for Axis Specialty Ltd. and...

The Sourcebook to public record information. (Books).(Brief Article)
February 1, 2003... Synopsis: The Sourcebook is a direct link to county, state and federal agencies that house public records, providing all the information you need to access records quickly and easily. Publisher: BRB Publications Inc. Contact: (800)...

Insurance coverage for all... and how insurers can afford to provide it. (Books).(Brief Article)
February 1, 2003... Author: Maria Thomson Synopsis: How insurers can profitably provide life and health insurance for all Americans using new technology and underwriting techniques. Publisher. ACTEX Publications Contact: (800) 282-2839; www....

Fraud, the crime you pay for. (Training Course).(Brief Article)
February 1, 2003... Synopsis: A new consumer video and brochure that will help insurers and agents teach the public about insurance fraud and how to fight back. Publisher: Coalition Against Insurance Fraud and Pennsylvania Insurance Fraud Prevention Authority...

The three faces of executive liability: D&O, EPL, and fiduciary liability (2nd Edition). (Booklet).(Brief Article)
February 1, 2003... Author: Richard G. Clarke Synopsis: The study fully explains the coverage options available. The book is a guide for making proposals, and agents can distribute it to their top clients to help them with insurance decisions. Publisher:...