Best's Review articles from February 2006

Best's Review archives from February 2006

Wind or flood?(Editor's Prologue)
February 1, 2006... As insurance adjusters went to work in the communities devastated by Hurricane Katrina, Best's Review sent Rick Cornejo to Mississippi to report first-hand the difficulties they faced. What he found were miles of tangled debris where houses and...

Underwriting discipline evolved from art to science.(Comment)
February 1, 2006... This is a response to your article ("The Art of Underwriting," Best's Review, November 2005) stating underwriting is an art. For most personal and many commercial lines, we believe it is a science. Frederick Taylor taught there is always one...

W.Va. workers' comp insurer formed one day before mine explosion.(Briefing)
February 1, 2006... BrickStreet Mutual Insurance Co. was a day old when an explosion in the Sago Mine in Tallmansville, W.Va., trapped 13 miners. The company, which replaced the state Workers' Compensation Commission, hadn't even officially begun business--that...

Few insurers have appetite for coal-mining risks.(Interview)
February 1, 2006... Best's Review spoke with mining expert Roger Hermann, who is a senior vice president with broker Aon Natural Resources, about mining risks, types of liability coverages available to mining companies, and the incidence of such fatalities in the...

Virginia ponders regulation.(100 YEARS AGO in BEST'S REVIEW)(Brief Article)
February 1, 2006... The February 1906 edition of Best's Review questioned the provincial focus of a bill before the Virginia Legislature that required every Virginia tire insurance company to have an office in the state where claims of residents could be...

A.M. Best Special Report: U.K. Life Industry Shows signs of stabilization.(By the Numbers)(Brief Article)
February 1, 2006... The U.K. life industry continues to show signs of increasing concentration and stabilization, reflecting a strongly competitive environment where scale is more crucial than ever, according to the A.M. Best Special Report U.K. Life Industry...

Top U.K. Life companies--market shares.(By the Numbers)(Illustration)
February 1, 2006... Top U.K. Life Companies--Market Shares As % of U.K. net premium written Year 2003 2004 Top 5 companies 46.3% 50.0% Next 5 companies 23.9% 24.8% Next 10 companies 18.2% 15.4% Top 20 companies...

New business mix within the top four U.K. Life Insurance Groups.(By the Numbers)(Brief Article)
February 1, 2006... 2005 saw a slight contraction in corporate pension new business due to an overhaul of pension simplification rules As % of annualized premiums [GRAPHIC OMITTED]

New business margins--top 5 insurance groups weighted average.(By the Numbers)
February 1, 2006... Changes in product mix increased pressure on profit margins. As % of annualized premiums [GRAPHIC OMITTED]

Meetings.
February 1, 2006... Feb. 13-15 National Association of Insurance Commissioners: Financial Summit, Disney Contemporary Resort, Orlando, Fla. Phone: (816) 783-8404 Website: www.naic.org Feb. 21-23 World Insurance Forum: Fairmont Southampton Princess...

UnitedHealth-PacifiCare merger receives approvals with some federal modifications.(UnitedHealth Group Inc., UnitedHealth Group Inc.)
February 1, 2006... UnitedHealth Group said it received all necessary approvals to complete its $9.2 billion acquisition of PacifiCare Health Systems Inc. However, the U.S. Department of Justice said it is requiring the companies to divest portions of...

Life insurers near accord over redundant reserves.(Briefing)(American Council of Life Insurers)
February 1, 2006... The American Council of Life Insurers' recent proposal to provide short-term relief from redundant reserves for writers of term life and universal life with secondary guarantees is gaining steam. The move is part of the effort to change how...

Best's insurance stock indices.(Briefing)
February 1, 2006... (Dec. 31, 2004 = 1,000.00) Four Weeks Ended January 12, 2006 Percent Change Year Index Month/ ...

Report examines 2005 European floods.(Briefing)(Brief Article)
February 1, 2006... The mid-August floods that hit Central and Eastern Europe were the region's most significant event of 2005 and the worst since 2002, according to a report that examines flood-related losses in Switzerland, Germany, Austria, Romania and...

Best's year-end stock summary.(insurance industry securities)(Illustration)
February 1, 2006... (Dec. 31, 2004 = 1,000.00) Index Close Annual 12/30 % Change Best's Insurance Composite Index 1,158.66 15.87% Multi-Line Index (M) ...

A.M. Best indices: health insurance stocks led the way in 2006.(Briefing)
February 1, 2006... Stories about rising health-care costs may have dominated the headlines in 2005, but they appear not to have scared investors off of the health insurance sector, as stocks in the A.M. Best Health & HMO Index saw a whopping 41.96% rise from...

Max Re Capital Ltd.(James Henry Winn appointed)(Brief Article)
February 1, 2006... MAX RE CAPITAL LTD. has named JAMES HENRY WINN senior vice president and North American treaty underwriter. The company also has named ROMAN ROMEO and STEFAN DOPRES senior catastrophe modelers. Winn joins the company from Lloyd's of London,...

W.R. Berkley Corp.(James Crutchley appointed)(Brief Article)
February 1, 2006... W. R. BERKLEY CORP. has named JAMES CRUTCHLEY president of Facultative Resources Inc. Crutchley has been with Facultative Resources since 1986 and most recently was senior rice president, Connecticut branch manager and chief casualty...

New York Life Insurance Co.(Mark Pfaff appointed)(Brief Article)
February 1, 2006... NEW YORK LIFE INSURANCE CO. has named MARK PFAFF senior vice president in charge of its agency department. Pfaff will take the place of Paul Morris, who was scheduled to retire in January. Pfaff came to New York Life in 1985 as an agent,...

Life Allianz Life Insurance Company of North America.(Life)(appoints Wayne Robinson and Charles Wikelius )(Brief Article)
February 1, 2006... LIFE ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA has named WAYNE ROBINSON senior vice president, general counsel and secretary. SUZANNE PEPIN, the current general counsel for Allianz, retired effective Jan. 1. The company also has...

Henrikson looks forward to leading MetLife in New Era.(C. Robert Henrikson to the board of directors as chairman and chief executive officer)(Brief Article)
February 1, 2006... The board of directors of MetLife unanimously elected president and chief operating officer C. Robert Henrikson to the board of directors as chairman and chief executive officer. Henrikson will succeed Robert Benmosche, who announced in...

Aon Consulting.(Susan Alfrod appointed)(Brief Article)
February 1, 2006... AON CONSULTING has named SUSAN ALFORD executive vice president and Southeast region head, effective Jan. 1, 2006. Alford has been with Aon Consulting for the past 28 years. Her most recent post was as head of the firm's Atlanta office and...

Marsh and McLennan Cos.(M. Michele Burns appointed)(Brief Article)
February 1, 2006... MARSH AND MCLENNAN COS. has named M. MICHELE BURNS executive vice president, effective March 1. Burns also will become chief financial officer no later than March 31. Burns succeeds SANDRA WIJNBERG, who announced in August her plans to...

Assured Guaranty Ltd.(David Penchoff appointed)(Brief Article)
February 1, 2006... ASSURED GUARANTY LTD. has named DAVID PENCHOFF president and chief operating officer. Penchoff was named chief underwriting officer of Assured Guaranty in 2004. Prior to joining Assured Guaranty, Penchoff was a managing director of public...

Endurance Specialty Holdings Ltd.(David Cash, Daniel Izard appointed)(Brief Article)
February 1, 2006... ENDURANCE SPECIALTY HOLDINGS Ltd. has named DAVID CASH chief underwriting officer. DANIEL IZARD also has been named president of Endurance Specialty Insurance Ltd., a subsidiary of Endurance Bermuda. Both promotions are effective upon approval...

FPIC Insurance Group Inc.(Charles Divita III appointed)(Brief Article)
February 1, 2006... FPIC INSURANCE GROUP Inc. has named CHARLES DIVITA III as chief financial officer, effective Jan. 1, 2006. Divita currently is FPIC's senior vice president of operations and strategy. Since joining the company in 2000, Divita has served as...

The Association of Fire and Casualty Companies.(Dianne Morris, Greg Vanek and Craig Sparks elected)(Brief Article)
February 1, 2006... THE ASSOCIATION OF FIRE AND CASUALTY COMPANIES in Texas has elected DIANNE MORRIS president for the 2006-2007 term. The association also elected GREG VANEK vice president and CRAIG SPARKS secretary and treasurer. Vanek is president of...

Esis Inc.(David Patterson appointed)(Brief Article)
February 1, 2006... ESIS INC., the risk management subsidiary of Ace U.S.A., has named DAVID PATTERSON president. Patterson joined Ace in 2004. Prior to joining the company, Patterson was with Kemper National Services, where he last served as president and...

W.R. Berkley Corp.(Robert Hewitt and Peter Kamford appointed)(Brief Article)
February 1, 2006... W.R. BERKLEY CORP. has named ROBERT HEWITT and PETER KAMFORD senior vice presidents in its specialty segment. ROBERT STONE has been named senior vice president in its alternative markets segment. Hewitt, who will serve in the excess and...

InsureMe debuts blog for affiliates.(ONLINE MARKETING)(Brief Article)
February 1, 2006... INSUREME, a consumer-agent link for buying insurance online, recently debuted a blog to help online marketers succeed in the affiliate marketing industry. "Affiliates specialize in driving traffic to business partners' Web sites and blogging...

Gecko, Duck make the grade.(BRANDING)(Brief Article)
February 1, 2006... THE AFLAC DUCK AND GEICO'S GECKO scored high in their Q Score rating and were among the top 10 characters ranked for familiarity and appeal, according to a survey of 1,800 consumers completed by Marketing Evaluations. The Q Score determines the...

Helpful duck.(Aflac Duck's 'Pitchin' In' ad)(Brief Article)
February 1, 2006... THE AFLAC DUCK'S LATEST COMMERCIAL debuted nationally Jan. 1. "Pitchin' In" continues the theme of the insurer's 2005 television commercials, "Helping Out" and "Broken Leg,' that blend humor with showing the duck caring for an injured...

Nationwide makes a first-time splash.(ADVERTISING)(Brief Article)
February 1, 2006... NATIONWIDE MAKES A FIRST-TIME SPLASH at Super Bowl XL with its commercial featuring romance-novel heartthrob Fabio. Filmed in Venice, Italy, the commercial shows the long-haired model with a beautiful woman enjoying a ride down the Grand Canal...

Preparing for Roth 401(k)s.(Hartford Financial Services Group Inc. and Mass-Mutual Retirement Services launches educational campaigns)(Brief Article)
February 1, 2006... The Hartford Financial Services Group and Mass-Mutual Retirement Services have launched educational campaigns to prepare financial professionals, plan sponsors and retirement plan participants for the availability of Roth 401(k)s this year. As...

SBLI USA streamlines whole life issuance.(SBLI USA Mutual Life Insurance Company)(Brief Article)
February 1, 2006... New York-based SBLI USA Mutual Life Insurance Co. has introduced two whole life products offering fast underwriting, usually within 48 hours. SmartLife, which requires answers to four questions, covers up to $150,000.The application for Easy...

AmerUs launches single-premium products.(AmerUs Life Insurance Co.)(Brief Article)
February 1, 2006... AmerUs Life Insurance Group, Des Moines, Iowa, has created a single-premium life portfolio with traditional and indexed policies. The policies will initially be available through AmerUs Life Insurance Co. and Indianapolis Life Insurance Co. ...

Transamerica adds four ULs.(Transamerica Occidental Life Insurance Co's new universal life products)(Brief Article)
February 1, 2006... Transamerica Occidental Life Insurance Co. has introduced four universal life products: single-premium and level-premium TransACE and TransUltra. The single-premium policies are designed for 1035 exchanges and other lump-sum situations, such as...

AD&D coverage for business travelers.(St. Paul Travelers Cos's accidental death and dismemberment coverage)(Brief Article)
February 1, 2006... St. Paul Travelers Cos. has added accidental death and dismemberment coverage to its array of international coverages offered through its Global Companion product intended for international business travelers. The new coverage provides a...

Snapshot.(workers without insurance)(Illustration)
February 1, 2006... Percentage of Workers (Ages 18-64) Without Health Insurance, By Earnings, 2004. Less Than $10,000 32.2% $10,000-$19,999 34.1% $20,000-$29,999 22.3% $30,000-$39,999 12.6% $40,000-$49,999 8.0% $50,000 or More ...

Learn more.(New Products)(AmerUs Life Insurance Co., Transamerica Occidental Life Insurance Co. and SBLI USA Mutual Life Insurance Company Inc., A.M. Best Companies)(Brief Article)
February 1, 2006... SBLI USA Mutual Life Insurance Co. A.M. Best Company # 06821 Distribution: Banks, telemarketing, direct mail, e-commerce, employee groups AmerUs Life Insurance Co. A.M. Best Company # 06199 Distribution: Career agents, personal...

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

Searching for a cause: adjusters struggle to find out whether wind or flood produced Katrina's devastation.(Cover Story)
February 1, 2006... Key Points * Many Gulf Coast residents did not have flood coverage. * Discerning the percentage of wind damage compared to flood can be as easy as finding a waterline and as difficult as "a shot in the dark." * Several lawsuits...

Investment assessment: a look back at how property/casualty insurers' investment strategies have fared since 1999.(Reinsurance/Capital Markets)
February 1, 2006... Key Points * Insurers' desire to increase returns has led them to alternative investments, such as hedge funds, derivatives overlay strategies and private equity. * Bonds continue to be the investment vehicle of choice for insurers....

Medical breakthrough: Dr. David Brailer is moving the goal of electronic health records for most Americans, along with a national health information technology infrastructure, closer to reality.(Interview)
February 1, 2006... Key points * A national information technology infrastructure is recommended to help ensure patient safety and care and save money. * The economic benefits of reducing medical errors through electronic health records go directly to...

Retirement coaches: as Americans fret about their post-career lives, insurers see big opportunities to help.(Life)
February 1, 2006... Key Points * Insurers are recruiting and educating financial professionals to meet the expected rise in demand for retirement planning. * The big challenge for all financial-services businesses is to switch from planning for...

Super regulator at work: United Kingdom's Financial Services Authority adjusts to its broadening role.(Regulatory/Law)
February 1, 2006... Key Points * In 2005, the Financial Services Authority became responsible for nonlife insurance distribution. * The FSA can issue public warnings and public censures, impose fines, restrict the amount of business a firm can conduct,...

Regulator yearbook: the 2006 Insurance Commissioners.(Regulatory/Law)(Directory)
February 1, 2006... ALABAMA DEPARTMENT OF INSURANCE Walter A. Bell, Commissioner 201 Monroe St. Suite 1700, Montgomery, Alabama 36104 334-269-3550 Fax: 334-241-4192 www.aldoi.gov Background: NAIC President-elect. Joined MONY Group in 1983 as...

Environmental claims: excess/umbrella carriers may have to clean up after government-mandated orders.(Column)
February 1, 2006... It is well-known in the world of environmental exposure that policyholders in all jurisdictions face environmental liabilities, subjecting them to costly administrative agency orders--in lieu of formal lawsuits--requiring remediation and...

A new vision: as agents and carriers recognize the underserved insurance needs of African-American and urban markets, competition for these groups is heating up.(Agent/Broker)
February 1, 2006... Key Points * Insurers of-ten must overcome negative perceptions that the African-American community may have of the insurance industry. * To underwrite successfully in urban markets, insurers should use different datamining techniques...

Digital rescue: how three insurers used technology to solve underwriting problems, including speed, pricing and accumulation of risk.(Technology)
February 1, 2006... Key Points * Once & Done Underwriting gives Commercial agents a yes-or-no decision on applications, plus a range of scheduled credits and debits that they can apply to a policy. * iNB creates a paperless process and supports the...

At your service: service-oriented architecture is a tool for the adaptive enterprise.(insurance industry)(Column)
February 1, 2006... Insurers today face two key challenges--protecting their businesses and growing their businesses' profitability. Flexibility and agility are critical to successfully meeting these challenges. Information technology plays a major role in...

Insurance Services Office Ltd.(Web News You Can Use)(Brief Article)
February 1, 2006... Insurance Services Office Ltd., a U.K. provider of personal injury claims and antifraud insurance services and solutions, has enhanced its ISO Claims Outcome Advisor personal injury claims management solution with an automatic electronic link...

JobTarget.(contracts with American Insurance Association)(Brief Article)
February 1, 2006... JobTarget, an Internet-based job board management company, announced an exclusive agreement to power the online job board for the American Insurance Association. The job board, launched at the end of 2005, is found on AIA's Web site...

OnlineBenefits Inc.(Web News You Can Use)(Brief Article)
February 1, 2006... OnlineBenefits Inc. announced the addition of an electronically delivered monthly newsletter to its Client Community portal. Employee benefit brokers can now automatically send their clients an agency-branded, content-rich newsletter to...

The Principal Financial Group.(Web News You Can Use)(Brief Article)
February 1, 2006... The Principal Financial Group announced a new online claim submission form available for group long-term and short-term disability customers. With 24-hour access to an online form, insured employees and their employers now have a fast, simple...

Digital evidence changes the litigation landscape.(Marsh & McLennan Co. conference)(says Alan Brill of Kroll Inc. )
February 1, 2006... Civil litigation procedures governing the discovery process have evolved along with technology in recent years to accommodate the use of electronically stored information as digital evidence in court proceedings. And as electronic data replaces...

Insuring the intangible: electronic intellectual-property exposures are growing rapidly for companies and businesses, while new technologies and practices also may put individuals at risk.(Property/Casualty)
February 1, 2006... Key Points * Intellectual-property insurance is expanding to include cyber information. * Companies, not individuals, make up the bulk of cyber-intellectual-property policyholders. * Insurance lawyers are anticipating an influx of...

Covering the unthinkable: in today's world, no insurance package is really complete without terrorism insurance.(Property/Casualty)
February 1, 2006... If you knew people who did not have health-care insurance, you would probably give them a lecture as to why they should have it. You might advise them why it is dangerous and irresponsible of them to be uninsured. They likely would respond...

Follow the leader: as Wal-Mart and other mega-employers offer health savings accounts, some industry experts believe it's only a matter of time until more companies jump on the HSA bandwagon.(Health/Employee Benefits)
February 1, 2006... Key Points * Health savings accounts are designed to put consumers in charge of health-care decision-making while curbing rising health-care costs. * The accounts could capture 15% to 50% of the health-care market by 2010. *...

Status quo vs. change: unraveling the knots in the current health-care system will require strategies bigger than any single enterprise.(Health/Employee Benefits)
February 1, 2006... That today's health-care system is a jumble of workarounds, redundancies and paradoxes will hardly come as a news flash to industry leaders. Serious problems include Byzantine pricing, discounting and rebating systems; uncoordinated care and...

A big step up: if the life settlement industry can make its business easier to understand, years of impressive growth could follow.(Viatical and Life Settlement Association of America conference)
February 1, 2006... Key Points * Large investors in Germany have provided the capital that drove a surge in life-settlement funding last year. Greater business transparency could fuel more funding from investors in other countries. * Life settlements can...

Nothing to lose but chains: rather than allow ourselves to stagnate at a time of great opportunity, we underwriters must become more involved.(Column)
February 1, 2006... In the mid-19th century, two disgruntled German economists wrestled with provocative questions about the prevailing human condition. They ranted about chains of humankind's own making and the unrealized potential of Earth's most evolved...

Producing results: producer lifecycle management can improve recruiting, contracting and appointing agents.(Column)
February 1, 2006... Key Points * The largest share of the property/casualty and life/health segments' IT budget will be devoted to agent/distributor initiatives, such as producer lifecycle management. * Web-based recruitment and appointment solutions...

Preparing for the worst: a two-pronged disaster management plan requires preparation and practice in responding to natural and man-made perils.(insurance industry)(Column)
February 1, 2006... Recent studies show nearly one-third of businesses business continuity plan, and more than twice as many don't have a plan that is formal and tested. Equally startling is a quote from the American Red Cross: "As many as 40% of small businesses...

Holistic risk management: agents and brokers offer services to help consumers deal with a changing world.(Property/Casualty)
February 1, 2006... As people become vulnerable to new and increasingly complex risks, the personal insurance marketplace has begun to shift beyond indemnification for loss toward a more holistic risk-management approach. After all, insurance does not eliminate...

Weathering change: insurers must realize that the 2005 mega-storms were not an anomaly, but a harbinger of things to come.(property/casualty)(Column)
February 1, 2006... As we struggle to recover from the most active and destructive hurricane season on record, insurers and society must prepare for more of the same--and worse. Insured property losses from hurricanes rose to a record $22.9 billion in 2004...

SUVs no safer than passenger cars for kids.(sport utility vehicles)(Brief Article)
February 1, 2006... While many families believe SUVs are safer for child passengers, children riding in SUVs have similar injury risks to children who ride in passenger cars, according to a new study. The study found that SUVs' increased risk of rolling over...

Diagnosis: expect growth spurt: Poland leads health insurance modernization among the former Soviet satellite states.
February 1, 2006... Key Points * Poland is embracing private health insurance and healthcare, but the foundations of the health-care systems are in poor shape. * By law, every Polish citizen is entitled to health care, regardless of the ability to pay....

WellPoint completes $6.5b purchase of N.Y.'s WellChoice.(Companies)(Brief Article)
February 1, 2006... WellPoint Inc. said it has completed its $6.5 billion acquisition of WellChoice Inc., the parent company of Empire Blue Cross Blue Shield, the largest health insurer In New York. With the merger complete, Indianapolis-based WellPoint Inc.,...

Montpelier Re, investors launch Blue Ocean in Bermuda.(Montpelier Re Holdings Ltd., Blue Ocean Reinsurance Ltd)(Brief Article)
February 1, 2006... A new Bermuda reinsurer, funded with $300 million in capital from a group of investors that includes Montpelier Re Holdings Ltd., will focus on writing retrocessional property catastrophe cover for reinsurers. Blue Ocean Reinsurance Ltd. is...

Health Net to acquire Universal Care's Plan assets in California.(Companies)(Brief Article)
February 1, 2006... Health Net Inc. said it would acquire the health plan assets of Universal Care Inc., a large Medi-Cal plan in Los Angeles County, in a purchase Health Net expects to close during the first half of 2006. Health Net is among the largest U.S....

SBLI of Massachusetts is Centrian Life in Connecticut.(Savings Bank Life Insurance Co., Centrian Life Insurance)(Brief Article)
February 1, 2006... Savings Bank Life Insurance Company of Massachusetts said it is actively doing business in Connecticut under the name Centrian Life Insurance. Although SBLI of Massachusetts has been licensed by the Connecticut Department of Insurance to...

Illustrations of life: Norman Rockwell's contract with Massachusetts Mutual Life Insurance Co. led to 81 pieces of art.
February 1, 2006... Think of American artist Norman Rockwell and you're likely to recall--if you're old enough--his 47 years of cover illustrations for The Saturday Evening Post. But there was another association that resulted in 81 black-and-white drawings....