Best's Review articles from January 2002

Best's Review archives from January 2002

Readership has its privileges. (Editor's Prologue).
January 1, 2002... The e-mails and phone calls come in periodically. Best's Review readers, having misplaced their past copies of the magazine, need to know in which edition certain articles appeared. Or an interested reader wants to know where he can find on the...

The defense rests. (Comment).(Letter to the Editor)
January 1, 2002... The article by Stephen Zielezienski in the October issue of Best's Review ("The Meter is Running," page 55) is tasteless and meritless lawyer bashing that exposes a misunderstanding of problems facing defense counsel and insurers regarding...

A mold by any other name. (Comment).(Letter to the Editor)
January 1, 2002... Your recent coverage of the growing mold problem in Texas and across the United States was very interesting but fell into a common trap in this discussion. In both the Editor's Prologue and the cover story ("Mold: A Growing Problem," November...

Corrections.(Correction Notice)
January 1, 2002... * Robert A. Rusbuldt is chief executive officer of the Independent Insurance Agents of America. His title and last name were incorrect in an article in the December edition. * Herbert N. Haag, former president and chief executive officer of...

WellPoint's buying spree. (Briefing).(WellPoint Health Networks Inc. is acquiring CareFirst BlueCross BlueShield)(Brief Article)
January 1, 2002... WellPoint Health Networks Inc. carved another big piece of the health maintenance organization pie for itself, saying in late November that it will acquire CareFirst BlueCross Blue-Shield for $1.3 billion. That announcement came on the heels of...

Industry perspective.(analysis of WellPoint's acquisition of CareFirst)(Brief Article)
January 1, 2002... WellPoint's acquisition strategy, as well as its strong financial performance in the past year, appear to point the company in a much different direction, than that of one of its biggest rivals--Aetna Inc. WellPoint has 10 million members....

By the numbers. (Briefing).(property and casualty insurance stock report)(Brief Article)
January 1, 2002... Property/Casualty Market Barometer November renewals were up slightly from October. The full impact of the Sept. 11 attacks is expected to be seen after the Jan. 1 reinsurance treaty renewals. Some accounts are seeing 50% to 70% rate hikes,...

From terror to technology. (Briefing).(Brief Article)
January 1, 2002... Highlights of the Nov. 28 PricewaterhouseCoopers insurance conference in New York. * Auto, Homeowners Hit Hard, Too: While much of the attention after the terror attacks has been on commercial lines losses, New York State Insurance...

NAIC panel approves model to simplify filing.(legislation regarding the property and casualty insurance industry)(National Association of Insurance Commissioners(NAIC))(Brief Article)
January 1, 2002... State insurance commissioners have advanced a model law to modernize commercial rate and form filings, with final approval possible in the spring. A working group of the National Association of Insurance Commissioners approved the Property...

Consumer web site unveiled.(National Association of Insurance Commissioners unveils insurance consumers' complaints database on the Web)(Brief Article)
January 1, 2002... A Web site where consumers can file and research complaints against insurers was unveiled by the National Association of Insurance Commissioners. And while insurers approved of the concept, they questioned how the database would be used. ...

Commissioners scrutinize use of credit reports in underwriting.(National Association of Insurance Commissioners)(Brief Article)
January 1, 2002... Insurers' use of credit scores as an effective underwriting tool was sharply questioned by consumer groups and some regulators, who argued that credit reports are misused and misleading. The National Association of Insurance Commissioners,...

NAIC grapples with terrorism. (Briefing).(National Association of Insurance Commissioners)(Brief Article)
January 1, 2002... The National Association of Insurance Commissioners tackled a gamut of Sept. 1 1-related issues, from defining what an act of terror is, to considering who'll be included in a proposed federal reinsurance pool. Along the way, they wrestled with...

NAIC elects new president; budget to rise 3.8% for 2002. (Briefing).(National Association of insurance Commissioners, Terri Vaughan appointment)(Brief Article)
January 1, 2002... Iowa Insurance Commissioner Terri Vaughan was elected president of the National Association of insurance Commissioners. The NAIC also approved a $49.8 million budget for 2002. Vaughan, who takes over for Kansas Insurance Commissioner...

Oxley urges terror backstop. (Briefing).(Michael Oxley seeks terrorism reinsurance legislation)(Brief Article)
January 1, 2002... U.S. Rep. Michael Cxley, R-Chio, told commissioners that he was hopeful the Senate "will get its act together quickly," on providing a federal backstop for terrorism reinsurance. "Doing nothing was not an option," he said. Even through the...

Regulators, insurers struggle with privacy. (Confidental).(Brief Article)
January 1, 2002... State insurance commissioners are still working on changes to a model privacy regulation to make the language more understandable, and industry advocates are trying to make sure those changes don't expose them unnecessarily to lawsuits. ...

Enron failure hits insurers while they're down. (Briefing).(Enron Corp.)(Brief Article)(Statistical Data Included)
January 1, 2002... The potential bankruptcy and collapse of energy tracing giant Enron Corp. has hit several insurers, which are still reeling from Sept. 11. Total exposure estimates could reach as high as $4 billion for insurers. Of the companies reporting...

Gray Follows consensus: Wave of storms to come. (Briefing).(William Gray, hurricane forecaster)(Brief Article)(Statistical Data Included)
January 1, 2002... A leading hurricane forecaster added weight to predictions of another busy season in the Atlantic basin next year, with a high risk of the U.S. mainland being hit by a major storm. William Gray, a professor at Colorado State University, is...

Montemayor's Mold-Coverage Plan Irks Homeowners Insurers in Texas. (Briefing).(Texas commissioner Jose Montemayor, Allstate Insurance Co., State Farm Mutual Automobile Insurance Co., Farmers Group Inc. concerned)(Brief Article)(Statistical Data Included)
January 1, 2002... While commending Jose Montemayor for "trying to find a way to solve the mold issue," Allstate Insurance Co. said the Texas commissioner's plan "has essentially put a new coat of paint over an old truck." Justin Schmitt, a spokesman for...

Best's rating changes. (Ratings).(A.M. Best Company Inc., ratings of life, international, property and casualty, and health insurance providers)(Statistical Data Included)
January 1, 2002... This summary of Best's Rating Changes lists life/health, property/casualty and international insurers, as well as health maintenance organizations, that had ratings assigned, changed or placed under review since this section last appeared in...

Starting over. (Cover Story).(various executives in the insurance industry predict forecast for industry after September 11 attacks)
January 1, 2002... Industry leaders say this will be a year of dramatic changes in underwriting and pricing policies. Also, a faltering economy, lingering asbestos claims and growing mold claims will continue to present challenges. Insurance industry leaders...

Finding higher ground. (Industry Strategies).(various executives in the employee recruitment industry give techniques for insurance agencies to recruit)(Statistical Data Included)
January 1, 2002... The insurance industry has plenty of employment opportunities, but companies need to rethink job descriptions and benefits packages to lure job seekers into an industry rarely considered exciting or lucrative. School children rarely dream...

People to watch in 2002: Insurance is more than companies and numbers. Here are a few of the people likely to affect the course of the industry in the year ahead. (Industry Strategies).
January 1, 2002... Adam Abram, chairman, Omega Management Inc. Omega Management is a start-up specialty reinsurer that will acquire books of business in runoff from primary carriers. Omega will reinsure those books of business, administer claims and assume the...

Prognosis: Unknown; insurers' liability for losses caused by bioterrorism or the threat of bioterrorism is too new to be clear cut. (Property/Casualty).(insurance claims over bioterrorism, need for security and safety measures from insurance)
January 1, 2002... Bioterrorism attacks may cause claims exposure in multiple insurance lines, but right now there are more questions than answers. Insurance lines that could be affected include property, commercial general liability, workers' compensation and...

Navigating rough seas: Directors and officers writers find tough economic times give rise to litigation in this rapidly growing market. (Property/Casualty).(Industry Overview)(Statistical Data Included)
January 1, 2002... It has been 15 years since the insurance industry experienced a hard market. At that time, it came quickly, it was decisive, and it swept over the industry like a tsunami. It took about 24 months for the waves to return to sea level. Some...

From mountains to molehills: Work backlogs can be cleared if agencies attack the inefficiencies and change their procedures. (Property/Casualty).(techniques are mentioned for management of work backlogs)(Brief Article)
January 1, 2002... In my many visits to agencies, I see chronic backlogs that sometimes have existed for years. Although these agency managers are aware of the backlogs, they feel powerless to end them. Some agencies actually have the staff count the backlogged...

Small-Business pension plans protected by Hartford Program. (Property/Casualty).(ITT Hartford Group Inc. liability plan for small business)(Brief Article)(Statistical Data Included)
January 1, 2002... Small-business owners who offer their employees a pension plan, medical insurance or life insurance may face personal liability if they breach any of their fiduciary responsibilities, obligations or duties as defined by the Employee Retirement...

Chubb specialty targets professional liability lines. (Property/Casualty).(Chubb Specialty Insurance consolidates product groups)(Brief Article)
January 1, 2002... Chubb Specialty Insurance, part of the Chubb Group of Insurance Cos., consolidated three of its product groups into a new business unit called Chubb Professional. ChubbPro will focus on the rapid changes taking place in the professional...

Broker survey: Higher prices, stricter underwriting in effect. (Property/Casualty).(Council of Insurance Agents and Brokers survey on commercial insurance pricing, prices rose after September 11 attacks)(Brief Article)(Statistical Data Included)
January 1, 2002... A special survey by the Council of Insurance Agents and Brokers establishes a benchmark for assessing the impact of the World Trade Center attacks on the future market. Given dramatic fluidity in the commercial insurance market in the wake of...

Terrorism propels change: The world trade center catastrophe could lead to further limits or restrictions on existing insurance products. (Property/Casualty).(Brief Article)(Column)
January 1, 2002... I had been intent on writing a column unrelated to the World Trade Center catastrophe. Having seen the disaster happen outside my office window, I find it uncomfortable to put this human tragedy within a business framework. But just as the Twin...

Demands for coverage increase as Cyber-Terrorism risk is realized. (Property/Casualty).(Brief Article)
January 1, 2002... Cyber-terrorism may be the next big threat against the United States. To address this emerging risk, insurers and brokers like American International Group, Chubb and Marsh are stepping up to the plate to offer coverage for this new wave...

Lessons learned: In the wake of the Sept. 11 catastrophe, insurers need to return to the basics. (Property/Casualty).(Brief Article)
January 1, 2002... After the initial shock of the Sept.11 events slowly gives way to careful analysis of the circumstances and financial consequences of the various property losses, it becomes clear that the insurance industry will have no choice but to change...

Gathering support: The American Council of Life Insurers is working with the National Association of Insurance Commissioners to modernize regulation by allowing insurance companies the choice of federal or state oversight.(Interview)
January 1, 2002... Joseph J. Gasper is the newly elected chairman of the American Council of Life Insurers' Board of Directors. He is president, chief operating officer and board member of Nationwide Financial Services Inc., Columbus, Ohio. Gasper joined...

Anticipating the benefits: About $80 billion is allocated to ordinary life insurance purchases each year, suggesting the paramount importance of understanding differences in policy yields between whole fife and universal life. (Life/Health).(Statistical Data Included)
January 1, 2002... Distinctions between insurance policy types engender different expectations of policy performance. Take, for example, participating whole life and universal life policies, which provide different packages of options. Whole life contracts...

Self-Diagnosis threat: At-home medical tests could present underwriting challenges if insurance applicants withhold vital information. (Life/Health).(Brief Article)(Statistical Data Included)
January 1, 2002... According to the adage, a defendant who represents himself at trial has a fool for a client. But what about being your own doctor--isn't that equally foolish? There's plenty of opportunity to find out these days. The proliferation of...

MIB Group's life index shows surge in policy applications. (Life/Health).(Brief Article)(Statistical Data Included)
January 1, 2002... MIB Group Inc., a database and information company based in Westwood, Mass., has inaugurated an index that tracks life insurance application and underwriting activity among the major 550 life and health insurance companies in the United States...

Independent producers carry life industry sales. (Life/Health).(Conning and Co. study)(Brief Article)
January 1, 2002... Life insurance sales still depend on producers getting in front of prospects, but now most sales are being made by independent producers, according to a new study by Conning & Co., Hartford, Conn. Captive insurance agents, once the key...

Berkshire life redesigns disability product for home-based businesses. (New Products and Services).(Berkshire Life Insurance Company of America)(Brief Article)
January 1, 2002... Berkshire Life Insurance Company of America has adapted a disability insurance product to meet the income-protection needs of home-based businesses, which it said is the fastest-growing segment of the U.S. economy. The new product, an...

Solving the global disconnect: Insurers that are taking new technologies across the world should be sure they have a strategy in place. (Technology).
January 1, 2002... The Internet, e-mail and cellular phones have helped eliminate boundaries that once made sales outside the United States more difficult. As a result, many insurers are establishing technologies across international borders so they can more...

Electronic battlefield: Insurers are using e-business initiatives to attract and retain customers and, most importantly, to increase market share. (Technology).
January 1, 2002... With the economy trending downward, many insurance industry executives are looking for ways to fortify stakeholder interests through this period of adjustment. Because of the dot-com mania of the last few years, many are asking about the role...

Addressing multiple needs: Straight-through processing allows insurers to concentrate on agents as well as customer self-service and claims processing. (Technology).(Brief Article)
January 1, 2002... Straight-through processing may not currently be viewed as a top priority by many insurance business or technology executives. These executives may question the importance of the elusive goal of straight-through processing, in light of the...

AscedantOne. (Web News You Can Use).(AscendantOne launches tools for insurance applications)(Brief Article)
January 1, 2002... AscedantOne Nashua, N.H., has launched DesignerFocus, advanced Web-addressable tools for property and casualty rate/quote application development. DesignerFocus incorporates Computer Automated Design/Manufacturing principles for rate...

Hart Ford financial services group. (Web News You Can Use).(launches streamlined web site)(Brief Article)
January 1, 2002... Simsbury, Conn.-based Hart ford Financial Services Group recently launched a streamlined Web site (groupbenefits.thehartford.com) for its group life and disability insurance products. The site provides a variety of new resources and new content...

John Hancock. (Web News You Can Use).(John Hancock Institutional Investment Management Network web site)(Brief Article)
January 1, 2002... John Hancock has developed a portal Web site providing access to a variety of institutional products and services offered by the company's institutional investment management and commercial lending groups. The site, called John Hancock...

Manulife financial. (Web News You Can Use).(offering software)(Brief Article)
January 1, 2002... Manulife Financial, a provider of 401(k) products for qualified retirement plans, now offers i:contributions, a software application that allows plan administrators to submit participant contribution and address files through the Internet to...

SafeEmail protects employers against communication risks. (Technology).(Brief Article)
January 1, 2002... Digital risk insurance provider Safeonline LLC said it launched SafeEmail, a product dedicated to protecting small and midsize businesses against the growing financial risks created by the use of e-mail for business communication in the United...

ACORD releases XML standards update. (Technology).(Association for Cooperative Operations Research and Development )(Brief Article)
January 1, 2002... The Association for Cooperative Operations Research and Development said it has unveiled a new release of the Joint Venture XML Standards for Reinsurance and Large Commercial Insurance. The release--version 2001.1--is based on extensive...

ING Americas to cut 15% of staff. (Companies).(Brief Article)(Statistical Data Included)
January 1, 2002... ING Americas plans to cut its U.S. work force by 15% as part of a cost-cutting effort tied to the integration of ReliaStar Financial Corp. and Aetna units that it acquired in 2000. The company said it would begin to implement a combination...

Copenhagen Re shuts down, citing Sept. 11 aftermath. (Companies).(Copenhagen Reinsurance Co. Ltd)(Brief Article)
January 1, 2002... Denmark's Copenhagen Reinsurance Co. Ltd. became the first European reinsurer to be driven out of business by the fallout from the Sept. 11 terrorist attacks on the United States. Copenhagen Re will make provisions of about 700 million...

Former XL executive creates dispute-resolution practice. (Companies).(Brief Article)
January 1, 2002... A longtime insurance executive has established the Gass Co. Inc., a reinsurance dispute-resolution practice. Ronald S. Gass, who most recently was vice president and associate general counsel of XL Reinsurance America Inc., has more than 17...

Aetna to slash 6,000 jobs. (Companies).(Brief Article)
January 1, 2002... In an effort to improve its operating performance, Aetna Inc. will reduce its overall work force by about 6,000 positions to better align its staffing with its lower membership levels, it said. As a result, it will record a fourth-quarter...

Lloyd's boosts Sept. 11 loss tally. (Companies).(Lloyd's of London insurance liabilities)(Brief Article)(Statistical Data Included)
January 1, 2002... Lloyd's boosted its estimate of net losses from the Sept. 11 terrorist attacks to $2.8 billion, a 45% increase from its previous projection, but the market predicted that rising premiums, both before and after Sept. 11, would offset the losses....

Executives.(selections and appointments in the insurance industry)(Brief Article)
January 1, 2002... Delta Dental plans Appoints President-CEO for 3 States. Thomas J. Fleszar has been appointed president and chief executive officer of the affiliated Delta Dental Plans of Michigan, Ohio and Indiana. He succeeds C. Richard Seitz, who...

Meetings.
January 1, 2002... January National Tax Sheltered Accounts Association, NTSAA 2002, Westin La Paloma, Tucson, Ariz. Phone: (785) 842-4983, Fax: (785) 842-7837, Email: ntsaahq@aol.com, Web site: www.ntsaa.org.Jan. 5-8. Woodmen of the World/Omaha Woodmen...

The perfect partnership: Alliances between insurers and distributors require precise design, based on four essential elements. (Life/Health).(Brief Article)
January 1, 2002... Business partnerships, alliances, joint ventures and other collaborations are increasingly important to financial-services organizations intent on building competitive strength and sustaining profitable growth. Just as building productive and...

2001: Terror, Mold and More. (Industry Strategies).
January 1, 2002... Last year will be remembered for the terrorist attacks that destroyed the World Trade Center in New York, downed four commercial planes, killed thousands and created the biggest losses in insurance history. Almost everything that happened...