Best's Review articles from February 2004

Best's Review archives from February 2004

Who's the most likely?(Editor's Prologue)
February 1, 2004... Remember your first freshman assembly at college, when the dean said, "Look to your left; look to your right. One of you won't be here next year." Suppose he or she had said, "Get to know your classmates and pick out the person who'll one day...

In the spotlight *.(Comment)
February 1, 2004... "In my opinion, Americans overall are forgetting what happened on Sept. 11. Throughout the United States, we need to be a lot more cognizant of the terrorism issue. We're getting complacent. I think we're looking at this as a foregone...

Prudential Financial Inc.(People in Insurance)(Prudential Financial Inc. appoints Barbara G. Koster)(Brief Article)
February 1, 2004... Prudential Financial Inc. has appointed Barbara G. Koster as chief information officer. Koster will oversee the use of information technology throughout the company. She succeeds William D. Friel, who is retiring from Prudential after 16 years...

New York Life Insurance Co.(People in Insurance)(New York Life Insurance Co. appoints Lyndon J. McMullen )(Brief Article)
February 1, 2004... New York Life Insurance Co. has appointed Lyndon J. McMullen president and chief executive officer of New York Life Insurance Ltd., the company's South Korean subsidiary. Previously, McMullen worked at the Korean subsidiary from 1998 until...

Magna Carta Cos.(People in Insurance)(Magna Carta Cos. has elected John Thomas Hill II )(Brief Article)
February 1, 2004... Magna Carta Cos. has elected John Thomas Hill II president and chief operating officer. Hill was previously the controller of Home Holdings and has served Magna Carta Cos. for nine years.

Losses spill into insurance industry from Parmalat S.p.A. scandal.(Highlights from BestWeek)(Parmalat Finanziaria S.p.A.)
February 1, 2004... More than 30 major insurance groups held exposures totaling at least $1.17 billion in scandal-plagued and insolvent Italian dairy group Parmalat Finanziaria S.p.A. prior to the company receiving bankruptcy protection from the Italian government...

North Carolina Mutual Life Insurance Co.(People in Insurance)(North Carolina Mutual Life Insurance Co. appoints James H. Speed Jr.)(Brief Article)
February 1, 2004... North Carolina Mutual Life Insurance Co. has appointed James H. Speed Jr. president and chief executive officer. Speed succeeds Bert Collins, who will retire. Speed began working with North Carolina Mutual as a consultant and later joined...

Jefferson-Pilot Corp.(People in Insurance)(Jefferson-Pilot Corp. said David A. Stonecipher work as a CEO)(Brief Article)
February 1, 2004... Jefferson-Pilot Corp. said David A. Stonecipher will step down as chief executive officer of the corporation effective March 1, but will continue as chairman of the board. Dennis R. Glass, president and chief operating officer, will become...

Arthur J. Gallagher & Co.(People in Insurance)(Arthur J. Gallagher & Co. has appointed Theodore A. Skirvin II)(Brief Article)
February 1, 2004... Arthur J. Gallagher & Co. has appointed Theodore A. Skirvin II vice president of corporate finance. Skirvin is a certified public accountant and has more than 20 years of accounting and finance experience.

2003 catastrophes cause uptick in insured losses.(By the Numbers)(Brief Article)
February 1, 2004... Munich Re reports approximately 700 natural catastrophes occurred in 2003. Insured losses increased in 2003 to $15 billion, from $11.5 billion in 2002. The tornadoes and hailstorms hitting the Midwest in spring of 2003 tallied insured losses of...

Meetings.(Briefing)(Calendar)
February 1, 2004... Feb. 22-24: National Association of Mutual Insurance Companies, Claims Conference, Tampa Marriott Waterside, Tampa, Fla. Phone: (317) 875-5250. Web site: www.namic.org. Feb. 23-24: National Association of Insurance Commissioners, Symposium...

NAII-Alliance merger is approved by groups.(Briefing)(National Association of Independent Insurers)(Jack Alliance of Ramirez American Insurers)
February 1, 2004... When Jack Ramirez joined the National Association of Independent Insurers in 1993, he dreamed of the day when the group would merge with the Jack Alliance of Ramirez American Insurers. That dream became reality Jan. 8. The...

Fraud contributes to projected rise in rates.(Briefing)(Brief Article)
February 1, 2004... A handful of factors-many related to fraud--are expected to cause automobile insurance rates to rise for the fifth year in a row in 2004, according to a new report. Analysts at the Insurance Information Institute expect auto rates to jump...

Medical-liability reform ranks as top concern in several states.(Briefing)
February 1, 2004... Though Congress adjourned for the year without passing a measure to rein in medical-liability insurance costs, a number of states, pushed by doctors' groups, are now seeking to take up the matter on their own. Florida, which passed a cap...

Schwarzenegger sets March deadline for California workers' comp reform.(Briefing)(Brief Article)
February 1, 2004... Gov. Arnold Schwarzenegger has set a March 1 deadline for legislators to deliver "real" reform of California's costly workers' compensation system, threatening to bring his own proposals to radically cut costs directly to voters in a November...

Best's rating changes.(insurance company ratings)(Excerpt)
February 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...

The right stuff: insurance chief executives need energy, financial knowledge and devotion to details, but not necessarily an insurance background.(Management)(Cover Story)
February 1, 2004... The choppy waters of the insurance industry have put additional pressures on those at the helm of insurance companies. In the midst of the turbulent equity markets and increased regulatory scrutiny, chief executive officers are finding...

Governing principals: corporate scandals and the Sarbanes-Oxley Act are causing insurers to pay attention to the objectivity and transparency of their boards.(Regulation)
February 1, 2004... Like the rest of corporate America, insurance companies are paying more attention these days to how their organizations are governed. From considering the size of boards of directors and board members' qualifications to revisiting codes of...

Under construction: Bahrain is seeking a bigger role in the Middle East as an emerging insurance market.(Globalization)
February 1, 2004... The tiny Persian Gulf kingdom of Bahrain wants to be a major hub in the Middle East insurance industry, and to that end has launched a "major initiative" to figure out how to do that. The Bahrain Monetary Agency hopes to enhance "Bahrain's...

On their own: risk retention groups provide coverage and stable costs for physicians and hospitals facing higher insurance premiums.(Risk Retention Groups)
February 1, 2004... The popularity of risk retention groups, a type of captive owned by its policyholders and authorized to write only liability insurance for its owners/policyholders, is growing in the health-care industry, where doctors and medical facilities...

Building liability products.(risk retention groups)
February 1, 2004... Risk retention groups not only are filling a void in the medical world, they also are satisfying a need in the construction industry. For the past few years, West Coast contractors in particular have had a difficult time finding liability...

Turn of the cycle: evidence suggests property/casualty's hard market is ending, but changes in the way the industry writes business may be of more lasting significance.
February 1, 2004... Property/casualty insurance's soft market lasted so long that it may not seem fair its hard market is already losing steam. The facts indicate that it is, however, though industry news remains generally upbeat. According to a December...

Clean-up operation: state guaranty funds are handling the messy details from a rash of insolvent property/casualty companies, but so far the funds are rising to the challenge and protecting policyholders.(Guaranty Funds)(statistical data included)
February 1, 2004... State guaranty funds, the safety net designed to protect consumers when insurance companies fail, could be facing their biggest challenges to date. A spate of high-profile insolvencies has left the property/casualty state funds to clean up $1.7...

The death of life companies.(Guaranty Funds)
February 1, 2004... When a life insurance company becomes insolvent, its in-force policies don't die along with it. "When the in-force business of a P/C company is cancelled when the company is placed in receivership, the policyholders are expected to go out and...

No sure thing: once tranquil, the surety business has been rattled by a series of storms in recent years that left insurers searching for the way back to profitability.(Surety)
February 1, 2004... The surety market is hoping for better times. For the past three years, this small but venerable specialty business that deals in construction bonds has registered losses industrywide. Moreover, for the past decade, capacity has been shrinking...

A history of consolidation.(Surety )
February 1, 2004... From the primary market standpoint, there has been considerable consolidation in the surety line in recent years. In fact, a look at the leading surety writers in 1992 vs. the lineup 10 years later shows that six of the top 10 in 1992 no longer...

Rare coverage: options for mad cow policies are limited for cattle growers.(Mad Cow Disease)
February 1, 2004... The cattle growers who sustain the United States' $175 billion beef industry are going to have a hard time obtaining private coverage against losses from mad cow disease, as only two companies advertise it. Making matters worse, one of...

Knowing your customer: using a complete file on each customer, carriers can systematically evaluate and score new business and re-evaluate existing policies.(Underwriting Insight)
February 1, 2004... How well do you know your customer? It you're like many in the industry today, you're likely to say; "Not well enough." That trend is apparent in homeowners insurance. The remodeling industry is a multibillion dollar business in the United...

View from the top.(Loss/Risk Management Notes)(independent directors in demand, and more demanding)(Brief Article)
February 1, 2004... Independent directors on a company's board are not only in demand, their positions have become more demanding. Corporate scandals such as Enron, increased scrutiny by regulators and investors, and new rules and regulations, including the...

Insurers need to look at the whole picture of risk.(Loss/Risk Management Notes)(Brief Article)
February 1, 2004... While insurers recognize the need for holistic risk and capital management, a majority of them have a way to go before completing a holistic risk and capital management framework, according to a survey by Ernst & Young. The survey found...

Need for speed makes death rates rise.(Loss/Risk Management Notes)(statistical data included)
February 1, 2004... As speed limits across U.S. roads are raised, motorists are driving faster and death rates are on the rise, according to the Insurance Institute for Highway Safety. "The perception is that moderate speeding is a harmless infraction, not a...

Keeping dry: a mold claim leads the Ninth Circuit to examine the causation and loss-in-progress rule.(Loss/Risk Management Insight)
February 1, 2004... In 1964, the Serendipity Singers had a hit song with the chorus:"Oh no, don't let the rain come down, nay roof's got a hole in it and I might drown." The Serendipity Singers said nothing about insurance coverage, but a Nov. 20, 2003, decision...

Fireman's Fund Insurance partners with Volvo Cars.(Marketplace)(offering information on insurance)(Brief Article)
February 1, 2004... Fireman's Fund Insurance Co. is teaming with Volvo Cars of North America LLC to offer insurance coverage under the "Care by Volvo Insurance Services" program. The program provides Volvo customers with information about automobile and...

Skier Guard offers coverage for skiers' season passes.(Marketplace)(Brief Article)
February 1, 2004... Skiers and snowboarders who invest in season passes that can be worth around $1,000 can buy insurance coverage to recoup their money if they are unable to use the tickets due to injury or illness. Skier Insurance Services offers Skier Guard...

Expanded D&O coverage featured in Chubb policy.(Marketplace)
February 1, 2004... The personal assets of directors and officers can be covered by a policy from Chubb Group of Insurance Cos. when their company is unable, unwilling or legally prohibited from funding indemnification. Chubb's D&O Elite is a nonrescindable...

From assets to income: paying back money to customers requires a business model different from helping them build assets. Insurers are beginning to make the transition.(Retirement Products)
February 1, 2004... Major life insurers for years have said that the next great challenge facing baby boomers is creating and managing retirement income. Their record of devoting resources to income products and advice, however, has not matched their expressed...

Size does matter: in the variable annuity market, economic forces are making it harder for midsized and smaller players to compete with top-ranked companies.(Variable Annuities)
February 1, 2004... The thriving equity markets of the 1990s spawned a host of popular insurance products, with customers jumping at the promise of rapid returns and flexible investment options. Variable annuities were the most successful, experiencing a compound...

Making a match: insurers and consumers need consistent market-conduct standards among all 50 states.(Marketplace Standards)
February 1, 2004... After more than two years of data gathering and analysis, the U.S. General Accounting Office recently reinforced the view that many insurance experts already held: It's high time that a system is devised and implemented with consistent...

Reassessing underwriting strategies: protective-value studies can help assess mortality risks as well as value the possible cost of losing good business.(Underwriting Insight)
February 1, 2004... The need to reduce underwriting costs and shorten time to policy issue, while at the same time preserving mortality experience, are challenges faced by direct writing insurers and reinsurers alike. Well designed protective-value studies help us...

Let the seller beware: in the wake of mutual fund scandals, life insurers and agents need to be prepared for regulators and investigators knocking at their doors.(Selling Insight)
February 1, 2004... How many industries are there that always have kept their word? As far as I know, life insurance is the only one that qualifies. Take it a step further. Name one industry in which competitors agree to make good on promises made to customers by...

Annuity fees charged on premiums, not earnings.(Marketplace)(New York Life Insurance Co. )(Brief Article)
February 1, 2004... New York Life Insurance Co. has introduced a variable annuity that charges annual mortality and expense fees and administrative costs only on the total premiums, not on earnings. M&E fees, therefore, would remain fixed even if the annuity's...

UnumProvident enhances small-business package.(Marketplace)(Brief Article)
February 1, 2004... UnumProvident Corp., Chattanooga, Tenn., has enhanced its disability-income and life-insurance package for employers with fewer than 10 employees. The new plan provides the same group benefits and resources as those of larger companies, with...

New universal life product targets small businesses.(Marketplace)(Brief Article)
February 1, 2004... Boston-based John Hancock Life Insurance Co. has launched another of its "next-generation" life insurance products. Designed for small- to mid-sized businesses, the Performance Executive UL is a universal life policy that provides high early...

Index annuities sales dip.(Marketplace)(Brief Article)
February 1, 2004... Sales of equity, index annuities dipped in the third quarter after posting gains through the first two quarters of the year as well as in 2002, when sales were up more than 80% over 2001, according to the Advantage Group, a tracking service...

Groups tout benefits of 412(i) plans.(Marketplace)(Lincoln Financial Group and Principal Financial Group Inc.)(Brief Article)
February 1, 2004... Lincoln and Principal financial groups have announced plans to generate business in the market defined by the 412(i) section of the Internal Revenue Code, which allows for guaranteed retirement benefits to owners of small businesses and their...

The personal touch: insurers are tapping into on-demand printing technology as a flexible and cost effective marketing tool to target customers.(Marketing)
February 1, 2004... A growing number of insurers and financial services companies are using on-demand digital printing to personalize information for customers as well as to combat rising marketing and printing costs. On-demand printing uses electronically...

Ramping up for real time; roundtable: carriers and independent agents are challenged to handle electronic transactions as they occur.(Agent Issues)(Panel Discussion)
February 1, 2004... Real time is the new frontier for carriers and independent agents as they find better ways to work together electronically, according to three insurance professionals who participated in a roundtable discussion on the topic. Progress is...

Modeling the future: consumer-driven health care will require the public to be educated in understanding the programs so economically rational decisions can be made.(Technology Insight)
February 1, 2004... The U.S. health-care market has yet to identify the exact form of consumer-centric financing that employers and/or consumers will embrace in an effort to curtail raising premium costs. Regardless of which model or models come to eventually...

AIG Claim Services Inc.(Web News You Can Use)(Brief Article)
February 1, 2004... AIG Claim Services Inc. Announced the launch of IntelliRisk Wireless, an extension of IntelliRisk NetSource, its online risk management information system. IntelliRisk Wireless enables customers to monitor claims status in real-time from...

Docucorp International.(Web News You Can Use)(Docucorp International announced the availability of Policy Xpress)(Brief Article)
February 1, 2004... Docucorp International announced the availability of Policy Xpress for insurers. It provides a complete library of fully implemented ISO industry standard forms and includes a standard data dictionary, which includes field definitions for all...

Guidewire Software Inc.(Web News You Can Use)(Brief Article)
February 1, 2004... Guidewire Software Inc., which provides claims solutions for property and casualty and workers' compensation insurers, released Guidewire ClaimCenter 2.0, a complete, J2EE 100% Web-based claims system designed to help insurers improve the claim...

Insurance Services Office Inc.(Web News You Can Use)(Brief Article)
February 1, 2004... Insurance Services Office Inc. has signed an agreement to integrate its ClaimDirector auto physical damage claim score with the Claims Port solution from ProcessClaims to enable systematic evaluation of incoming claims via Web services at first...

Secured Marine Trust.(Web News You Can Use)(Brief Article)
February 1, 2004... Secured Marine Trust, a marine financial services company, has created an electronic document and data management tool for yacht brokers and boat dealers, marine manufacturers, marine lenders, floor plan providers and insurance agents. It is...

Insurance trade groups gain clarification on anti-spam bill's intent.(Technology Notes)(Independent Insurance Agents and Brokers of America)(Brief Article)
February 1, 2004... The landmark anti-spam bill President Bush signed into law won't inadvertently target insurance trade associations as once feared, says the Independent Insurance Agents & Brokers of America. The IIABA lobbied Rep. Richard Burr, R-N.C., to...

ACORD announces new ID card.(Technology Notes)(Association for Cooperative Operations Research and Development)(Brief Article)
February 1, 2004... The Association for Cooperative Operations Research and Development recently announced that it's developing a new temporary ID card--ACORD 50NJ--in response to a major change to the New Jersey regulation that dictates the type of auto ID cards...

Allianz gets OK to launch SARS-related policy in Japan.(Companies)(severe acute respiratory syndrome )(Brief Article)
February 1, 2004... The serious economic impact from the outbreak of severe acute respiratory syndrome in many Asia-Pacific countries during the first half of 2003 has prompted Allianz AG Holding's property/casualty unit in Japan to launch coverage designed to...

Swiss Life unveils new brand, corporate identity.(Companies)(Brief Article)
February 1, 2004... Swiss Life Group is simplifying its brand structure and adopting a new corporate identity that the Zurich, Switzerland-based life insurer said would link "longstanding tradition" with the new goals of its realignment strategy.

GE to streamline operations, shrink insurance unit.(Companies)(Brief Article)
February 1, 2004... General Electric Co. plans to reorganize its major business segments, including a smaller insurance unit, to better take advantage of its strengths, while streamlining structure and reducing costs at its headquarters. In a memo to...

Mercer Insurance raises $53 million in conversion IPO.(Companies)(Mercer Insurance Co.)(Brief Article)
February 1, 2004... Property and casualty insurer Mercer Mutual Insurance Co. said it has completed its conversion to a stock insurance company in an initial public offering that raised more than $53 million. In a IO-Q filing with the U.S. Securities and...

CFOs held to higher standard: profitability is job #1.(The Last Word)
February 1, 2004... The turbulent economic and regulatory environments that are putting additional pressures on insurance companies' chief executive officers are affecting their chief financial officers, too. CFOs are feeling responsible for greater duties and...