Best's Review articles from January 2006

Best's Review archives from January 2006

New rules and new features.(Editor's Prologue)
January 1, 2006... Auditors and actuaries once may have labored in obscurity, but since the passage of the Sarbanes-Oxley Act in 2002, their work has gained the attention of chief executive officers, boards of directors and investors. In our cover story this...

Putting the customer back in customer service.(Comment)
January 1, 2006... The use of so-called aftermarket automobile parts in settling collision damage claims, routing the same customers to direct repair shops and offering to replace lost or damaged personal property rather than pay a claim are all ways to gain more...

Correction.(Correction Notice)
January 1, 2006... The process to determine a tiered benefit structure for long-term-care insurance described on page 20 of the November issue of Best's Review was invented and patented by Jerry Wilson and Mike Gamble. Tom Bakos worked with the inventors to...

Clarification.(Correction Notice)
January 1, 2006... Independent lobbyist Phil Anderson, whose name appeared in the list of lobbyists on page 85 of the November issue of Best's Review, is a founding and managing principal of Navigators, an issues management firm with offices in Washington, D.C.,...

Bermuda reinsurers seen as getting stronger.(property and casualty insurance industry)
January 1, 2006... It's been rough sailing out of Bermuda for the island's small and specialty property/casualty reinsurers, thanks to record-breaking hurricane losses. And no sooner did the skies clear over the U.S. Gulf Coast than other monsters sailed...

Liability concerns in New Orleans.
January 1, 2006... The liability pitfalls experienced during the World Trade Center site cleanup after the 2001 terrorist attacks are serving as a blueprint for caution among contractors and construction insurers tapped to help rebuild New Orleans. The...

"Foreign companies writing surplus lines here--some points to consider".(100 YEARS AGO IN BEST'S REVIEW)(Brief Article)
January 1, 2006... The January 1906 edition of Best's Review warned against placing surplus lines risks with unadmitted foreign companies. The report noted that the "fad" of buying insurance from foreign insurers began in the 1890s when more than 150 Lloyd's...

P/C impairments hit near-term lows following two stormy years.(By the Numbers)(Brief Article)(Illustration)
January 1, 2006... Despite extraordinary, back-to-back hurricanes seasons, U.S. property/casualty impairments in 2005 are on track to hit the lowest level seen in a decade, according to the A.M. Best Co. Special Report "P/C Impairments Hit Near-Term Lows Despite...

Meetings.(Calendar)
January 1, 2006... Jan. 18 St. John's University School of Risk Management 11th Annual Insurance Leader of the Year Award Dinner, 6-9:30 p.m., New York Marriott Marquis, New York. Phone: (212) 277-5111 Web site: www.stjohns.edu Jan. 25-27 National...

Coalition urges insurers to disclose climate risk.
January 1, 2006... A coalition of U.S. institutional investors has sent letters to 30 publicly traded insurance companies urging them to disclose their financial exposure to climate change and the steps they are taking to respond to climate-related risks. ...

A.M. Best increases surveillance of insurers' catastrophe exposures.(A.M. Best Company Inc.)
January 1, 2006... A.M. Best Co. considers catastrophic loss, both natural and manmade, to be the No. 1 threat to the financial strength and credit quality of property and casualty insurers due to the significant, rapid and unexpected impact that can occur....

Best's insurance stock indices.(Illustration)
January 1, 2006... Best's Insurance Stock Indices (Dec. 31, 2004 = 1,000.00) Four Weeks Ended December 7, 2005 Percent Change Index Month/ Year to Year/ ...

Best's Review now features insurance stock indices.
January 1, 2006... A.M. Best is pleased to publish a series of exclusive stock indices that will provide readers with a useful benchmark for assessing investor confidence in the insurance industry. Best's Insurance Stock Indices include five business segment...

Allstate Insurance Co.(Property/Casualty)(Joan Walker appointed)(Brief Article)
January 1, 2006... ALLSTATE INSURANCE CO has named JOAN WALKER senior vice president of corporate relations. Prior to joining Allstate, Walker worked for Qwest Communications International, where she was executive vice president of marketing and...

Public Risk Management Association.(Property/Casualty)(Stephen Hill awarded)(Brief Article)
January 1, 2006... STEPHEN HILL, the executive director of the Office of Risk Management for Detroit Public Schools, has been named "Risk Manager of the Year" by the PUBLIC RISK MANAGEMENT ASSOCIATION Hill oversees the risk management needs for the largest...

Affirmative Insurance Holdings Inc.(Property/Casualty)(Kevin Callahan appointed)(Brief Article)
January 1, 2006... AFFIRMATIVE INSURANCE HOLDINGS INC said its chairman, chief executive officer and president, Thomas Mangold, resigned in November. Affirmative's board has named KEVIN CALLAHAN interim chairman and CEO until a permanent successor for Mangold can...

GAB Robins.(Property/Casualty)(GAB Robins Group of Companies)(Brief Article)
January 1, 2006... GAB ROBINS has named ALAN MANSFIELD executive vice president and chief executive officer of the GAB Robins Group of Companies. Mansfield will be based at GAB Robins world headquarters in Parsippany, N.J., and will be responsible for the...

Progressive chairman Lewis "Insurance Leader of the Year".(Peter B. Lewis)(Brief Article)
January 1, 2006... Peter B. Lewis, chairman of the board for Progressive Corp., has been named the "2005 Insurance Leader of the Year" by The School of Risk Management, a division of the Peter J. Tobin College of Business at St. John's University. St. John's...

XL Insurance.(Property/Casualty)(Jeff Kaufmann appointed)(Brief Article)
January 1, 2006... XL INSURANCE has named JEFF KAUFMANN head of marine and offshore energy operations in the United States. Kaufmann will operate out of New York. The company has also named COLIN SPROTT to head the marine and offshore energy operations...

Vesta Insurance Group, Inc.(Property/Casualty)(John Hines)(Brief Article)
January 1, 2006... VESTA INSURANCE GROUP, INC., has named JOHN HINES senior vice president and chief financial officer. Hines replaces HOPSON NANCE, who has resigned as chief financial officer. Nance will remain with the company for up to six months to ensure...

New York Life Insurance Co.(Life)(Ronald Terry appointed)(Brief Article)
January 1, 2006... NEW YORK LIFE INSURANCE CO. has named RONALD TERRY senior vice president in the corporate services department. MARIAN COPE and STUART KROHNENGOLD were named vice presidents and will report to Terry. Terry joined New York Life in 1990...

Guardian Life Insurance Company of America.(Life)(Joseph Caruso appointed)(Brief Article)
January 1, 2006... GUARDIAN LIFE INSURANCE COMPANY OF AMERICA has named JOSEPH CARUSO executive vice president and corporate secretary. Previously, Caruso was senior vice president and corporate secretary.

Integro Ltd.(Agent/Broker)(Tom Zacharopoulos appointed)(Brief Article)
January 1, 2006... Specialty insurance broker INTEGRO LTD. has named TOM ZACHAROPOULOS leader of the company's national management risk practice. The broker was formed earlier this year by the former chairman of Arch Capital Group Ltd. and former senior...

Guy Carpenter & Co.(Reinsurance)(Scott Whipp and Michael Bleisnick appointed)(Brief Article)
January 1, 2006... GUY CARPENTER & CO. has named SCOTT WHIPP managing director in the professional liability specialty practice. The company also named MICHAEL BLEISNICK managing director in the retrocessional specialty practice. Whipp will operate out of...

In memoriam.(People in Insurance)(Carroll A. Campbell)(Brief Article)(Obituary)
January 1, 2006... Former South Carolina congressman and governor, CARROLL A. CAMPBELL JR.--who led the AMERICAN COUNCIL OF LIFE INSURERS during a period of significant legislative and regulatory transition for the life industry--has died of a heart attack after...

John Hancock Financial Services.(YEAR-END WRAP-UP: A Look Back At 2005)(Brief Article)
January 1, 2006... JOHN HANCOCK FINANCIAL SERVICES' new ad extended its brand in the investment marketplace via names of families on the ticker display in Times Square.

Prudential Financial Inc.(YEAR-END WRAP-UP: A Look Back At 2005)(Brief Article)
January 1, 2006... PRUDENTIAL FINANCIAL INC.'S "Hey Dad" commercial was created with two different endings to grab consumers' attention about the need for life insurance.

Pacificare Health Systems.(YEAR-END WRAP-UP: A Look Back At 2005)(Brief Article)
January 1, 2006... PACIFICARE HEALTH SYSTEMS played the nostalgia card by resurrecting Fred and Ethel from "I Love Lucky" to explain its Medicare Part D program.

Geico.(YEAR-END WRAP-UP: A Look Back At 2005)(Brief Article)
January 1, 2006... GEICO'S gecko was voted one of America's Favorite Advertising Icons in 2005.

State Farm and Liberty Mutual.(YEAR-END WRAP-UP: A Look Back At 2005)(Brief Article)
January 1, 2006... STATE FARM AND LIBERTY MUTUAL were among the winners of the Best of Show awards at the Insurance Marketing Communications Association's 2005 Showcase Awards. Insurance Marketing is compiled by Managing Editor Lynna Goch.

Wake-up call.(PROPERTY/CASUALTY)(Allstate Corp.'s advertising campaign)(Brief Article)
January 1, 2006... ALLSTATE CORP. recently launched a national advertising campaign designed to raise consumers' awareness about better preparing and protecting Americans from catastrophic events. The full-page advertisements ran in The New York Times, The...

Branding.(Insurance Marketing)(Brief Article)
January 1, 2006... 2005 marked the return of the stag for HARTFORD FINANCIAL and the 20th anniversary of METLIFE'S affiliation with Snoopy. Hartford Financial's stag made its first appearance in a television commercial since the 1970s. The 123-year-old icon...

Massachusetts Mutual Life Insurance Co.(enhanced Transitions Select product)(Brief Article)
January 1, 2006... Massachusetts Mutual Life Insurance Co. has enhanced its guaranteed minimum accumulation benefit with its Transitions Select product. A 10-year option protects purchase payments made during the first two years. A reset option allows owners to...

Jackson National Life Insurance Co.(Variable Annuities)(Brief Article)
January 1, 2006... Jackson National Life Insurance Co. has added new guaranteed minimum withdrawal benefit options within its Perspective family of VA products. AutoGuard enables owners to take annual withdrawals of up to 5% with automatic annual step-ups if the...

Allstate Financial Group.(ClearCast)(Brief Article)
January 1, 2006... Allstate Financial Group has a new illustration system, ClearCast, for its VA product line. The system allows producers in Allstate's large distribution network to create hypothetical views of the entire VA product suite that enable them to...

Old Mutual launches index life product.(Life)(Fidelity and Guaranty Life Insurance Co.)(Brief Article)
January 1, 2006... HeritageMaster, a single-premium equity indexed universal life insurance product, has been introduced by Fidelity and Guaranty Life Insurance Co., part of the Old Mutual Financial Network. Its death benefit is guaranteed to age 100 with a...

Travelers enhances ID theft protection.(Property/Casualty)(St. Paul Travelers)(Brief Article)
January 1, 2006... St. Paul Travelers has instituted a resolution service within its identity-theft protection program and has expanded expense-reimbursement coverage from $15,000 to $25,000. As part of the resolution service, a consumer fraud specialist will...

Consumer-directed plans enhanced in New Jersey.(Horizon Blue Cross Blue Shield of New Jersey introduced Horizon MyWay HSA )(Brief Article)
January 1, 2006... Horizon Blue Cross Blue Shield of New Jersey has improved its consumer-directed plan lineup with the introduction of two Horizon MyWay plans. Horizon MyWay HRA provides a high-deductible health plan accompanied by a health reimbursement...

Group disability plan to help small employers.(Disability)(Brief Article)
January 1, 2006... MetLife Inc.'s new disability insurance product aims to provide to employers with fewer than 500 employees the flexibility and options that large employers enjoy, including return-to-work and stay-at-work strategies. These include a...

Workers' ranking of employee benefits, 2004.(SNAPSHOT)(Illustration)
January 1, 2006... Workers' Ranking Of Employee Benefits, 2004 1st Most 2nd Most Important Important Health Insurance 60% 15% Retirement Savings Plan 17...

Best's rating changes.(Ratings)
January 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...

The new scrutiny: insurers are facing additional pressure to prove they have adequate internal and external financial controls in place.(Regulatory/Law)
January 1, 2006... Enron. WorldCom. Global Crossing. What were once the names of profitable companies have become synonyms for accounting fraud. Lawmakers and regulators seeking to prevent other Enrons from happening have stepped up accounting and auditing...

Insurance auditors and actuaries of North America.(A.M Best Special Report Excerpt)
January 1, 2006... Public accountants and actuaries fulfill important roles in the ongoing business operations of insurers. While both the auditor and actuarial markets are dominated by a handful of firms servicing the larger group-affiliated insurers, a...

A unique momentum.(The Year Ahead)
January 1, 2006... Fresh on the heels of the costliest storm on record and investigations that dislodged some industry titans, the insurance industry moves into 2006 distinctly altered by its struggles of 2005. No one would have predicted last January the changes...

Staying strong.(The Year Ahead)
January 1, 2006... As insurance leaders approach 2006, they are analyzing and extrapolating the events of 2005, probing the causes of the problems and figuring out how to move the industry forward. Some are focused on rebuilding a wounded market, some on the...

Going for 50: nationwide online producer licensing is just a few states away.(Agent/Broker)(National Insurance Producer Registry)
January 1, 2006... There was a time when an agent or broker wouldn't think of trying to register for multiple state licenses without cringing--or packing a very large suitcase. That was before the National Association of Insurance Commissioners partnered...

Calling to the outside: for the first time, insurers' spending on external technology solutions is expected to outpace internal IT spending.(Technology)
January 1, 2006... Insurers are deciding they don't have to do it all themselves. Some information technology projects require highly specialized skills, some can be executed more efficiently somewhere else, and sometimes outside advice can mean the difference...

Shifting IT success factors: organizational strategy is as important as the technology strategy.(Technology)
January 1, 2006... Technology organization approaches are becoming more complex and varied as they address evolving needs and use expanding alternatives. The chief executive officer and chief information officer are restructuring their technology organizations to...

Fingerprint database's cost one of many industry concerns.(Technology)
January 1, 2006... An initiative to create a "fingerprint repository" on insurance producers is advancing to a senior committee of the National Association of Insurance Commissioners, but questions about its future and how to pay for it linger. The issue has...

Empire Blue Cross Blue Shield.(My Health Record )(Brief Article)
January 1, 2006... Empire Blue Cross Blue Shield, the primary operating subsidiary of WellChoice Inc., has expanded the functionality of its online personal health record, My Health Record, to allow Empire members to provide their doctors with access to their...

Blue Cross and Blue Shield of Louisiana.(Louisiana Health Service and Indemnity Co. launch online health management tools )(Brief Article)
January 1, 2006... Blue Cross and Blue Shield of Louisiana announced the launch of a new set of online health management tools that allows members to view treatment options and cost estimates for a variety of health conditions, research and compare hospitals in...

Industrial Alliance Pacific Life Insurance Co.(LifePRO Agent Web Portal launched)(Brief Article)
January 1, 2006... Industrial Alliance Pacific Life Insurance Co., based in Vancouver, British Columbia, recently implemented an Agent Web Portal for its LifePRO life insurance administration system. The LifePRO Agent Web Portal was created in partnership...

Sircon Corp.(releases Compliance Express 7.0.)(Brief Article)
January 1, 2006... Sircon Corp. released Compliance Express 7.0. Compliance Express is an e-licensing and appointment service that allows carriers to perform online transactions and inquiries with state insurance regulatory agencies, thus eliminating the...

A brand new approach: auto insurers are looking to various channels and a consistent message to brand their companies.(Property/Casualty)
January 1, 2006... Amazon.com Founder and Chief Executive Officer Jeff Bezos may have said it best when he remarked, "A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well." Many auto insurers,...

Finding goodwill in the bad: in the wake of Hurricane Katrina, adjusters were tested to respond with fiscal responsibility without losing touch with their humanity.(Property/Casualty)
January 1, 2006... By definition natural disasters are bad--that's why they're called catastrophes. Paradoxically, they usually have positive consequences for the public's perception of insurance in general. As adjusters saturate the stricken area, insurers make...

Saved by the light: regulators and the industry hope that new disclosure requirements will eliminate shady finite reinsurance contracts and keep the product viable.(Reinsurance/Capital Markets)
January 1, 2006... The recent flurry of subpoenas concerning Finite or structured reinsurance contracts has led regulators to an important realization: There's a lot they don't know about this corner of the market. In an attempt to get a better handle on...

Protection support: a joint effort of insurers, governments and employers is needed to bridge the gap in mortality protection that leaves millions of people vulnerable and society responsible.(Life)
January 1, 2006... Mortality protection, the core life insurance product, is greatly lacking in many American homes. According to a recent Swiss Re study of five industrialized countries, the United States has the greatest gap in mortality protection at $10.5...

Coming to a Market Near You: an effective, practical product disclosure and suitability framework could usher in a new environment for the industry and consumers.(Life)
January 1, 2006... Conflict of interest, compensation disclosure and product suitability issues have roiled U.S. financial markets and institutions in recent years. If regulators took the next logical step and examined life-insurer practices, what would be the...

Get back to basics: at a time when sales of life insurance products should be soaring, the industry needs to take a good look at what consumers really want.(Life)
January 1, 2006... With the nation's 70 million baby boomers poised to enter their retirement years, it's logical to assume that sales of life insurance products should be soaring. With trillions of dollars packed away in 401(k) plans and other vehicles, the...

Less is more opportunity: mini-meds or limited-benefit health plans are fast becoming a standard product among carriers.(Health/Employee Benefits)
January 1, 2006... When Michele Scanlan, director of human resources for Home Nursing Agency, Altoona, Pa., needed a way to boost recruitment and retention of part-time nurses, she did what many employers across the country are doing: She offered them limited...

Reinsurance waltz: Hurricane Katrina, skepticism about modeling, and continuing state and federal investigations are giving annual reinsurance negotiations some new turns.(Reinsurance/Capital Markets)
January 1, 2006... The annual mating dance between ceding insurers and reinsurers has grown more complicated in some ways as the industry faces new questions. What does it mean that the initial losses from Hurricane Katrina predicted by catastrophe models...

Turning the corner: how the New York State Insurance Department lowered auto insurance rates, slashed loss costs for insurers and reduced fraud.(Property/Casualty)
January 1, 2006... Something truly historic happened to New York auto insurance premiums in 2005: They down. While New Yorkers suffered steep price increases in gasoline, housing and dozens of other essential goods and services, New York auto rates bucked the...

Upgrading commercial lines: are process enhancements without product design changes really just an empty shell?(Property/Casualty)
January 1, 2006... While the property/casualty industry has invested untold millions of dollars in automation and gained tremendous efficiencies, much of the work has been superficial: moving data from paper to the computer. Yet the real power of automation is...

Everything in its place: litigation lifecycle management can streamline insurers' critical documents and give them greater control over the legal process.(Regulatory/Law)
January 1, 2006... In mid-October 2004, New York state Attorney General Eliot Spitzer launched an investigation into the business practices of major insurance brokers. In the following weeks, more than $15 billion in wealth vanished for shareholders of Marsh &...

Way out 'West': when a company is scammed, who pays the insurance?(Regulatory/Law)
January 1, 2006... Insurance coverage case law sometimes reads like a supermarket tabloid, and no case has more tabloid-like facts than the October 2005, decision in Federal Insurance Co. vs. Ace Property and Casualty Co., a case from the United States Court of...

Don't take it; it's mine; enforceable nonpiracy agreements protect the business interests of both agencies and agents.(Agent/Broker)
January 1, 2006... Owning an insurance agency without having in place nonpiracy agreements with the producers is like renting an insurance agency. Building an insurance agency is about building a book of business, and the value of the agency depends not only on...

Making ERM happen: a few simple rules can empower champions of enterprise risk management to make it happen at their firms.(Property/Casualty)
January 1, 2006... When I first left academe and entered the business world, I was an intellectual optimist. I believed that good ideas would eventually triumph simply because they were good ideas. Two-plus decades of experience later, I am a lot less naive. Here...

Despite controversy, risk managers stay with brokers.(Property/Casualty)
January 1, 2006... One year after New York state Attorney General Eliot Spitzer started legal action against Marsh Inc., most risk managers say they've not changed their broker, but have become more active in the insurance buying process. In a survey of 540...

Auto-deer collisions deadly, costly.(Property/Casualty)
January 1, 2006... Pennsylvania ranks as the worst state for auto-deer collisions, according to a study by State Farm Group, the largest auto writer in the United States. An estimated 1.5 million vehicle-deer collisions take place across the United States...

Germany's Talanx to buy Gerling Companies.(Gerling-Konzern Versicherungs-Beteiligungs AG)(Brief Article)
January 1, 2006... Talanx A.G., the German conglomerate that counts among its companies Hannover Re, said it has agreed to take over the operating insurance companies of Gerling Group. According to the agreement, Talanx will take over from Gerling-Konzern...

Lloyd's gets reinsurance license in China.(Lloyd's Life Assurance Ltd.)(Brief Article)
January 1, 2006... Lloyd's has won a license to establish an onshore reinsurance operation in China, achieving long-sought access to nearly 90% of the country's market. Julian James, Lloyd's director of worldwide markets, said the demand for specialty...

Willis gains majority in Chinese broker.(Willis Group Holdings Ltd. acquired Pudong Insurance Brokers Co. Ltd.)(Brief Article)
January 1, 2006... Willis Group Holdings Ltd. said it has become the first foreign insurance broker to gain a majority stake in a Chinese company, after getting approval from regulators to take a 51% stake in a joint-venture broker. The China Insurance...

Swiss re becomes top reinsurer with $6.8B acquisition of GE insurance.(General Electric Co., Swiss Reinsurance Company Ltd.)
January 1, 2006... In a long-anticipated move, General Electric Co. is selling most of its insurance operations to Swiss Re Group for $6.8 billion, a massive deal that will sec Swiss Re raise up to $7.5 billion in additional capital and give GE a 10% stake in the...

Integro joins London market with buy of Lloyd's broker.(Humphreys Haggas Sutton & Co. Ltd.)(Brief Article)
January 1, 2006... Specialty insurance broker Integro Ltd. said it acquired Lloyd's broker Humphreys Haggas Sutton & Co. Ltd., giving the startup broker access to the London market. Terms of the acquisition weren't disclosed. Integro said it has approval...

Axis seeks capital boost through preferred share sale.(AXIS Capital Holdings Ltd.)(Brief Article)
January 1, 2006... Axis Capital Holdings Ltd. said it would sell $250 million of preferred shares in a bid to firm up the capital position of its property/casualty insurance and reinsurance operations. In announcing the sale, the Bermuda-based company further...

XL Capital prices securities offerings at $2.9 billion.(markets)(Brief Article)
January 1, 2006... XL Capital Ltd. has priced its planned offerings of securities to the tune of $2.9 billion pretax, in a bid to build up its capital base following heavy storm losses and a lost arbitration case. The Bermuda-based property/ casualty group...

Underwriters Hiscox, Amlin up and running in Bermuda.(Amlin Bermuda Ltd., Hiscox Bermuda )(Brief Article)
January 1, 2006... Prominent Lloyd's underwriters Hiscox plc and Amlin plc both say their new Bermuda property/casualty operations are up and running, in time for the January renewal season. Hiscox said its new Hiscox Bermuda reinsurer is open for business...

Editorial calendar: looking ahead.
January 1, 2006... March * Agent/Broker: Commercial insurance brokers are adapting their business strategies following investigations into compensation practices. * Health/Employee Benefits: New approaches to managing disability claims. * Life: How...

Under the Big Top: circus liability insurance makes sure the show goes on.(The Last Word)(Lester Kalmanson Agency Inc.)
January 1, 2006... In 2004, an aerial acrobat twirling on chiffon scarves plunged 35 feet to her death after she lost her grip during a Ringling Bros. and Barnum & Bailey Circus show in St. Paul, Minn. The next year, in two separate incidents, two 7-ton elephants...