Best's Review articles from February 2007

Best's Review archives from February 2007

Aging in the new age.(Editor's Prologue)
February 1, 2007... Sixty is the new 40. So 70 is the new 50, and so on and so on. Aging today is not what it used to be. Science, medicine, nutrition and other factors have converged to keep people living longer and stronger with high expectations for their...

Quote/unquote: excerpted from BestWeek.(Comment)(Brief article)
February 1, 2007... "There are still hundreds of legal cases [stemming from hurricanes of 2005] yet to be heard. Investigating alleged misconduct by insurers at this stage would serve no purpose other than to taint the jury pool and interfere with the...

Correction.(Correction notice)
February 1, 2007... The World Health Organization reports the number of individuals with diabetes globally will reach about 366 million in 2030, an increase from 171 million individuals in 2000. The numbers were incorrect in the the article titled "A Growing...

Sun Life's pending acquisition gives it U.S. foothold.(mergers and acquisitions)(Genworth Financial)
February 1, 2007... Sun Life Financial's pending $650 million acquisition of Genworth Financial's U.S. group benefits business will give the Canadian life insurer a foothold in the U.S. small-case employer market. On Jan. 11, Sun Life and Genworth separately...

After record year, P/C industry braces for soft market.(property and casualty insurance industry)
February 1, 2007... Pleased but not at ease is how the property and casualty insurance industry is reacting to its stellar performance in 2006. After a record year in which the industry reaped an estimated $60 billion in profits, saw the best return on equity...

Reforms recommended following 1906 fire.(100 YEARS AGO in Best's Review)(Brief article)
February 1, 2007... The February 1907 issue of Best's Review (property/casualty edition) recommended five reforms following the Great San Francisco Earthquake and Fire of 1906. The first was to forbid companies by law to write in any area subject to a risk of more...

By the numbers.(Briefing)(Statistical table)(Brief article)
February 1, 2007... Number of Mutual Life Insurance Companies Declines The number of mutual life insurance entities, like stock entities, has continued to decline. While life start-ups have been few in number over the past 20 years, the number of new mutual...

Meetings.(Briefing)(Calendar)
February 1, 2007... Feb. 7-8 Council of Insurance Agents & Brokers: Insurance Legislative Summit, The Mandarin Oriental, Washington, D.C. Phone: (202) 783-4400 Web site: www.ciab.com Feb. 13-16 Reinsurance Association of America: Cat Modeling 2007,...

A.M. best's stock indexes.(Briefing)(Statistical table)
February 1, 2007... A.M. Best's Stock Indexes Four Weeks Ended January 11, 2007 (Dec. 31, 2004 = 1,000.00) -- Percent Change -- Index Month/ Year to Year/ AMB vs...

Big 'I' outlines legislative agenda for new Congress.(Independent Insurance Agents and Brokers of America)
February 1, 2007... The Independent Insurance Agents & Brokers of America trade group said it will continue to push for "targeted federal legislation" to reform insurance regulation when the new Congress convenes, as well as for a measure that would let insurers...

Europe and reinsurance lead as A.M. Best Stock Indexes show a double-digit gain for 2006.(Briefing)
February 1, 2007... Europe and Reinsurance stock indexes led the way as A.M. Best's Co.'s composite index of global insurance-related stocks finished out the year with double-digit gains. The 185 insurance, reinsurance and broker stocks comprising the A.M....

USI Holdings Corp.(appointment of Andrew Catapano)(Brief article)
February 1, 2007... Commercial insurance broker USI HOLDINGS CORP. has named ANDREW CATAPANO president of the Northeast office. Catapano joined USI in 2005 as regional chief sales and marketing officer after working at Marsh & McLennan Cos. as a managing...

Guy Carpenter & Co.(appointment of Eric Johnson )(Brief article)
February 1, 2007... GUY CARPENTER & CO., a reinsurance brokerage unit of Marsh & McLennan Cos., has named ERIC "RICK" JOHNSON senior vice president in charge of property and casualty business throughout the Mid-America region. Most recently, Johnson was...

Health Net Inc.(Health/Employee Benefits)
February 1, 2007... HEALTH NET INC. has named LINDA TIANO senior vice president, general counsel and secretary, effective Feb. Philip G. Davis, current vice president, deputy general counsel and corporate ethics officer, has been named chief compliance officer....

Allianz Income Management Services.(appointment of John Amann)(Brief article)
February 1, 2007... ALLIANZ INCOME MANAGEMENT SERVICES has named JOHN AMANN senior vice president and chief operating officer. Amann joined Allianz Life after LifeUSA merged into it in 1999. He has been regional sales vice president and vice president of sales...

Aflac names Amos president.(People in Insurance)(Paul S. Amos II appointed)(Brief article)
February 1, 2007... Aflac Inc. has named Paul S. Amos II president. Amos will continue his role as chief operating officer of Aflac U.S. in addition to his new role. Amos began his career with Aflac in 2002 as the state sales coordinator for its Georgia North...

Massachusetts Mutual Life Insurance Co.(Life)(Stuart Reese appointed)(Brief article)
February 1, 2007... MASSACHUSETTS MUTUAL LIFE INSURANCE CO. named STUART REESE, the company's chief executive officer and president, as chairman of the board of directors, effective Jan. 1, 2007. Reese succeeds JAMES BIRLE, who has been named lead director of the...

National Interstate Corp.(Property/Casualty)(David Michelson appointed)(Brief article)
February 1, 2007... NATIONAL INTERSTATE CORP. has appointed DAVID MICHELSON president and chief operating officer. He replaces ALAN SPACHMAN, who was named chairman and chief executive officer effective Jan. 1, 2007. Spachman, founder of National Interstate,...

OneBeacon Insurance Group.(Property/Casualty)(Philip Sibilia appointed)(Brief article)
February 1, 2007... ONEBEACON INSURANCE GROUP has named Philip Sibilia senior vice president of claims of its insurance operations. Sibilia succeeds GARY BLACK, who retired at the end of 2006. Sibilia joined OneBeacon in 1979 and has served in a variety of...

PMI Mortgage Insurance Co.(Property/Casualty)(Pete Pannes and John Parsley appointed)(Brief article)
February 1, 2007... PMI MORTGAGE INSURANCE CO., a subsidiary of PMI Group Inc., has named PETE PANNES senior vice president of field sales and national accounts and JOHN PARSLEY senior vice president of strategic business development. Pannes began his career...

State Auto Financial Corp.(Property/Casualty)(Steven E. English appointed)(Brief article)
February 1, 2007... STATE AUTO FINANCIAL CORP. has named STEVEN E. ENGLISH vice president and chief financial officer. Recently, English had been vice president, director of corporate development and planning for State Auto. Prior to joining State Auto...

Markel Corp.(appointment of John Latham)(Brief article)
February 1, 2007... JOHN LATHAM has been named senior vice president of operations at property/casualty insurer MARKEL CORP. Chief Technical Officer DAVID EGBERT will fill Latham's former position of chief information officer. Before he became CIO, Latham was...

No go for gecko.(Port Authority of New York and New Jersey cancels sponsorship deal with GEICO Corp.)(Brief article)
February 1, 2007... FACING THE THREAT of legislative hearings, the Port Authority of New York & New Jersey on January 9 called off a pilot sponsorship that would have GEICO paying $1.6 million for a two-year deal to be the exclusive advertiser on the George...

A deal with the Devils.(LIFE INSURANCE)(New Jersey Devils)(Brief article)
February 1, 2007... PRUDENTIAL FINANCIAL bought the naming rights to the new home of the National Hockey League franchise the New Jersey Devils. Prudential will pay $4.5 million annually for the first five years with the amount increasing 2.5% for the remainder of...

State Farm is advertising on the kids' Nickelodeon in a bid to reach parents through their children.(State Farm Mutual Automobile Insurance Co)(Brief article)
February 1, 2007... STATE FARM is advertising on the kids' Nickelodeon in a bid to reach parents through their children. It's the first time the largest U.S. property/casualty writer has partnered with a children's network. The multiplatform advertising deal...

New options in annuities.(Variable annuities)(Brief article)
February 1, 2007... A hot segment of product development continues to be in living-benefit options and riders on variable annuities, which have spurred VA sales. In November 2006, Prudential Financial launched Highest Daily Lifetime Five, which guarantees an...

Choose coverage after a loss.(FM Global offers new choices with business-interruption coverage)(Brief article)
February 1, 2007... Commercial and industrial-property insurer FM Global has begun offering policyholders an option that allows them to choose the type of business-interruption coverage after a loss occurs and up to claim settlement rather than at policy...

Identity restoration for business travel.(Property/Casualty)(Brief article)
February 1, 2007... The Chubb Group of Insurance Companies, through an alliance with Identity Theft 911, is offering services to lessen the disruption and expense caused by the theft, loss or destruction of a passport or other identification documents. The...

LTC policy geared for baby boomers.(Life)
February 1, 2007... John Hancock Life Insurance Co. has introduced a long-term-care insurance policy, Leading Edge, designed to reduce the expense and complexity of buying, and to address the needs of baby boomers. The product has built-in, compound inflation...

EIA schedules 'free-out' periods.(Energy Information Administration )(Brief article)
February 1, 2007... Conseco Insurance Co. has launched Conseco Command, a single-premium equity-indexed annuity that provides predetermined "free-out" windows for owners to access funds without surrender charges. After four years, owners can withdraw all or part...

Saving for college.(SNAPSHOT)(Statistical table)(Brief article)
February 1, 2007... The characteristics of 529 savings plans extremely or very important to sales, according to producers: Performance 79% Multimanaged platform 67% Selling tools, such as calculators 58% Brand...

Best's rating changes.(Table)
February 1, 2007... 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...

Working warriors: the growing number of people working beyond common retirement ages offers new opportunities for disability carriers and other insurers.(Rethinking Retirement)
February 1, 2007... Retirement isn't on CVS pharmacist John Johns' mind--at least not for now. The 66-year-old is part of the growing mature labor force that's chosen to continue working or to re-enter the work force upon retirement. Financial challenges,...

Large and in charge: as baby boomers near the traditional retirement age, insurers are changing their products and marketing messages to meet this generations demanding expectations.(Rethinking Retirement)
February 1, 2007... It's not your grandfather's generation, or even your father's; the roughly 78 million baby boomers--those born between 1946 and 1964--are unlike any generation that's come before them. They're the first generation raised on TV advertising,...

Group life to the rescue: when baby boomers start retiring, they may cause employee shortages in important positions. Improved group life benefits could keep them working or lure them back.(Rethinking Retirement)
February 1, 2007... Even as baby boomers age, they are likely to be valued by employers. They have acquired valuable experience and skills, and there probably will be a shortage of qualified workers to replace them. Many boomers will want or need to work to...

Living longer, driving longer: for personal lines insurers, aging baby boomers represent a generation of increased liabilities.(Rethinking Retirement)
February 1, 2007... By the year 2050, the U.S. Census Bureau anticipates nearly 87 million Americans, representing some 21% of the total U.S. population, will be age 65 and older. Many are expected to own homes and drive cars, and all of those will need insurance....

Fencing in the risk: medically underwritten immediate annuities are not yet a well-known product, but they may become an important tool as retiring baby boomers seek to create income or protect assets.(Rethinking Retirement)
February 1, 2007... Buyers of immediate annuities typically expect to live longer than average, and the product writers price accordingly. Now the life industry also is catering to prospects with health impairments by medically underwriting them and offering...

Hat trick: retaining customers, finding growth and achieving attractive returns are not easy in today's mature financial markets, but a handful of companies are doing all three.(Life: Selling Insight)
February 1, 2007... A few financial service companies that have learned how to focus on and uniquely serve customer niches are enjoying disproportionate growth and profit despite overall insurance market maturity. Differentiating your company and driving...

Insuring business travel: the recent interest in business travel benefits is no accident, but employers and insurers often devote little attention to details.(Life: Underwriting Insight)
February 1, 2007... Business travel accident coverage has been available from employee benefit providers for years, but has become more popular lately. As a benefit, BTA is an important part of today's global economy; as a product, it is both a door opener in...

Power tools: new and evolving technologies are helping personal lines underwriters properly assess risks and provide better rates for consumers.(Technology: Underwriting)
February 1, 2007... Technology's done it again, and this time it has underwriters praises. The evolution of online tools is providing personal lines underwriters not only greater efficiency, but also speedier, easier access to sources of data to better assess...

A winning strategy: profitable growth can be achieved through improved sales performance.(Technology: Technology Insight)
February 1, 2007... Following a second year of record underwriting profitability with relatively flat prices, insurers are struggling with how to sustain profitable growth. They already have re-underwritten their books of business and off-loaded noncore and...

Regulator yearbook: the 2007 insurance commissioners.(Regulatory/Law: Commissioners)(Directory)
February 1, 2007... ALABAMA DEPARTMENT OF INSURANCE Walter A. Bell, Commissioner 201 Monroe St., Suite 1700, Montgomery, AL 36104 334-269-3550 Fax: 334-241-4192 www.aldoi.gov Background: NAIC President. Joined MONY Group in 1983 as financial...

Upcoming elections.(Regulatory/Law: Commissioners)(Table)(Brief article)
February 1, 2007... Upcoming Elections Next Scheduled State Elected Regulator Election California Steve Poizner 2010 Delaware ...

Canada: provincial officials in charge of insurance affairs.(Regulatory/Law: Commissioners)(Directory)
February 1, 2007... ALBERTA FINANCE Arthur Hagan, Deputy Superintendent, Regulation and Market Conduct 402 Terrace Building, 9515 107 St. Edmonton, Alberta AB T5K 2C3 780-415-9226 Fax: 780-420-0752 E-mail: arthur.hagan@gov.ab.ca FINANCIAL...

Same stage, new roles: life reinsurers are being forced to find new roles, as direct life and annuity writers create new products, with or without the help of reinsurers.(Reinsurance/Capital Markets: Life Reinsurance)
February 1, 2007... From guaranteed minimum accumulation benefits to expanding existing life products to formerly difficult-to-insure customers, innovation among life and annuity writers is impacting reinsurers. While some companies, such as Hartford Life,...

Predicting better distribution: carriers have a wealth of information about the market and the likely behavior of insureds, but fail to use this information effectively to help agents distribute products and to compensate them for their work.(Agent/Broker: Personal Lines)
February 1, 2007... Predictive modeling, market data and related improvements in information technology have enabled property/casualty insurers to price their products with a far greater degree of sophistication and precision than in the past. They have a better...

Managing loss-cost differences: to attract and retain larger and more sophisticated casualty customers, focus on the total cost of risk.(Agent/Broker: Selling Insight)
February 1, 2007... The key to success with customers in the large casualty market is loss-cost management. This means considering not only fixed cost components such as premiums, fees and expenses, but also the variable cost components of losses and loss expense....

Make a new path: the self-adjusted claim can lead to fewer employees, improved productivity and better customer service.(Property/Casualty: Claims Management)
February 1, 2007... How many claims people does it take to replace a 100-watt light bulb? Four. One to take the inbound call and fill out the claim form, a second one to determine why the light bulb needs to be replaced, a third one to call back the customer and...

Harnessing analytics: surviving in the 21st century will require capitalizing on the power of technology.(Property/Casualty: Underwriting Insight)
February 1, 2007... A gradual slowdown in property/casualty premium growth over the past 15 years has taken its toll on the industry, with nearly a third of P/C insurers serving U.S. markets vanishing. As premium growth slowed from 11.3% per year during the decade...

Speeding triples the odds of crashing, AAA finds.(Property/Casualty: Loss/Risk Management Notes)
February 1, 2007... Drivers who speed faster than surrounding traffic are nearly three times as likely to be involved in accidents as those who do not, a new study by the AAA Foundation for Traffic Safety finds. Using data collected during the National Highway...

Top 10 cities for hail.(Property/Casualty: Loss/Risk Management Notes)(Brief article)
February 1, 2007... Tulsa, Okla. tops the list of the 10 most hail prone metro areas, according to CDS Business Mapping LLC. The list is based on the RiskMeter Online's Hail Model, which predicts the severity of hail storms for any location in the continental...

Transferring wealth: baby boomer clients should know how to bequeath an estate without leaving insurance protection behind.(Property/Casualty: Loss/Risk Management Insight)
February 1, 2007... As the baby boomer generation continues to move toward retirement, many of its members have begun to plan for the transfer of their wealth to their children, relatives and other beneficiaries. Seeking wealth transfer techniques that provide...

Get flexible: service-oriented architecture helps insurers address a variety of business tasks simultaneously while reducing costs.(Technology: Business Management)
February 1, 2007... Innovation through service-oriented architecture is shaking up the status quo. Many companies are realizing tangible benefits through this new approach to the creation, evolution and management of information technology assets. Insurance...

Laptop theft compromises information for 1,200 clients.(Technology: Technology Notes)
February 1, 2007... The theft of a laptop computer containing the personal information of more than 1,200 clients of insurance broker Hilb, Rogal & Hobbs has served to highlight a major concern regarding the safety of personal information, especially information...

ACORD.(Tech Bytes)(Brief article)
February 1, 2007... ACORD announced the latest enhancements to ACORD forms built on top of IBM's open standards-based technology. The new ACORD eForms+ will help drive greater efficiency and productivity for carders, solution providers, brokers and agents. Under a...

Aetna.(offers an interactive voice response system to customers)(Brief article)
February 1, 2007... Aetna announced it's offering an interactive voice response system called Voice2Form to enable members with both Aetna disability and medical insurance to easily provide consent to participate in the insurer's Integrated Health and Disability...

Farmers.(Tech Bytes)(Brief article)
February 1, 2007... Farmers agents now have access to a Web-based tool that helps them to better determine potential eligibility before contacting prospective customers. That saves both the customer and the agent time and effort. The new "Commercial Appetite...

Backdating backlash: will corporate insurers be wiped out by a tidal wave of D&O 'stock options' claims?(Regulatory/Law: Legal Insight)
February 1, 2007... Directors and officers liability insurers continue to assess the impact of corporate stock option "backdating" practices, originally feared as holding the potential for Enron-sized market losses. And rightly so, with experts estimating the...

Lessons learned: European insurers can draw from their experience carrying out Basel II to ensure a smooth ride to fulfilling Solvency II.(Regulatory/Law: Solvency and Capital Adequacy)
February 1, 2007... Regulators worldwide are focusing on insurers' solvency and capital adequacy. In its effort to create a solvency regulation framework which is more tuned to the insurers' actual risk exposures, the European Commission has put together Solvency...

Hilb Rogal & Hobbs has completed its acquisition of Lloyd's insurance broker Glencairn Group Ltd.(Agent/Broker)(Brief article)
February 1, 2007... * HILB ROGAL & HOBBS has completed its acquisition of Lloyd's insurance broker GLENCAIRN GROUP LTD. The terms of transaction were not disclosed. Martin L. Vaughan, the chairman and chief executive of Hilb Rogal, said the acquisition expands...

Global broker Willis Group Holdings has acquired Carter Insurance Group, an underwriting manager and program administrator based in Tampa, Fla.(Agent/Broker)(Brief article)
February 1, 2007... * Global broker WILLIS GROUP HOLDINGS has acquired CARTER INSURANCE GROUP, an underwriting manager and program administrator based in Tampa, Fla. Terms of the transaction were not disclosed. Founded in 1927, Carter specializes in franchised...

Global insurance broker Arthur J. Gallagher acquired Mid America Group, an employee and executive benefit consulting firm based in Philadelphia.(Agent/Broker)(Brief article)
February 1, 2007... * Global insurance broker ARTHUR J. GALLAGHER acquired MID AMERICA GROUP, an employee and executive benefit consulting firm based in Philadelphia. Terms of the transaction were not disclosed.

Catlin Group Ltd.(Bermuda)(to open new facilities in europe)(Brief article)
February 1, 2007... * CATLIN GROUP LTD. said it will open four new European offices in early 2007 as part of a diversification strategy based on local presence. The Bermuda-based specialty property and casualty company said it will open offices in Paris;...

SCOR.(Capital Markets)(introduction of catastrophe bond )(Brief article)
February 1, 2007... * French reinsurer SCOR said it successfully launched a catastrophe bond that will give it retrocession coverage against European windstorm and Japan earthquake risks. The multiyear property catastrophe retrocession bond will provide 120...

Axa Asia Pacific said it will acquire Winterthur Life Hong Kong Ltd. as part of parent company Axa S.A.'s acquisition of Winterthur Group from Credit Suisse.(Mergers & Acquisitions)
February 1, 2007... * AXA ASIA PACIFIC said it will acquire WINTERTHUR LIFE HONG KONG LTD. as part of parent company AXA S.A.'s acquisition of WINTERTHUR GROUP from CREDIT SUISSE. The acquisition will give Axa Asia Pacific a broader reach in the Hong Kong life...

White Mountains Insurance Group said Folksamerica Reinsurance Co., a wholly-owned, Bermuda-based unit of White Mountains Re Group Ltd., has finished its acquisition of Mutual Service Casualty Insurance Co.(Mergers & Acquisitions)
February 1, 2007... * WHITE MOUNTAINS INSURANCE GROUP said FOLKSAMERICA REINSURANCE CO., a wholly-owned, Bermuda-based unit of WHITE MOUNTAINS RE GROUP LTD., has finished its acquisition of MUTUAL SERVICE CASUALTY INSURANCE CO., a run-off insurer formerly...

First Katrina verdict: state farm must pay $2.5m.(Companies)
February 1, 2007... A federal jury has told State Farm Fire & Casualty Co. to pay a Biloxi, Miss., couple $2.5 million for refusing to cover damage to their home caused by Hurricane Katrina, as the insurer works to settle more than 600 similar cases. The...

Insurance fit for a queen: after looking at various risks, a Virginia-based brokerage secured insurance for an upcoming visit from Queen Elizabeth II of England.(Rutherfoord)
February 1, 2007... Long before the May 2007 celebrations get under way to mark the 400th anniversary of the founding of Jamestown, Va.,--America's first settlement--insurance broker Richard Coon, senior vice president of Alexandria, Va.-based Rutherfoord, has...