Best's Review articles from January 2007

Best's Review archives from January 2007

The medium and the message.(Editor's Prologue)
January 1, 2007... Good marketing is good communication, and when good marketers get together, they have a lot to say. Thus, the 2006 Insurance Marketing and Advertising Summit, sponsored by A.M. Best Co. and the Insurance Media Association in New York in...

Quote/unquote.(Medicaid spending policy)(Brief article)
January 1, 2007... Excerpted from BestWeek "If you look back 20 years ago, Medicaid was, on the average, 10% of state budgets. Currently, it outpaces about 22% of state budgets and is starting to outpace education, which is the No. 1 cost in most states....

Corrections.(Comment)(Correction notice)
January 1, 2007... * John J. Hutchings, of JBJ Insurance in st. Charles, Mo., spotted a couple of discrepancies in the movie quiz that was published in the most recent edition of The Guide to Understanding the Insurance Industry, 2006-07. He points out that while...

Eateries lean on reputation covers.
January 1, 2007... The E. coli outbreak linked to Taco Bell restaurants has left approximately 70 people sick in five states, creating a major damage-control crisis for the fast-food chain. As with many restaurants or food-service providers that have been...

Appeals of flood exclusion ruling may linger for years.
January 1, 2007... Standard flood exclusions that many insurers used to deny Hurricane Katrina-related homeowners claims are "ambiguous" because they fail to distinguish between natural and man-made catastrophes, a federal court has ruled. The ruling...

NAIC ushers in major shift for collateral requirements.(Brief article)
January 1, 2007... Non-admitted reinsurers would see a major shift in collateral requirements under a plan advanced by the National Association of Insurance Commissioners at the group's winter meeting in San Antonio. After a close vote among regulators...

Effects of the fire linger.(100 YEARS AGO)(Brief article)
January 1, 2007... The Great San Francisco Earthquake and Fire of 1906 was still making headlines in January 1907. Best's Review (property/casualty edition) featured information on its upcoming San Francisco Loss Report. The report, in pamphlet form, included...

Title insurance reports robust earnings for 10th year in a row.(By the Numbers)(Table)(Financial report)
January 1, 2007... The title insurance industry's 2005 net income of approximately $972 million, while robust, was nearly 10% less than 2004's $1.1 billion, according to the A.M. Best Special Report, Strong Housing Market Drives Title Insurance Growth in 2005,...

Meetings.(Calendar)
January 1, 2007... Jan. 16-21 Independent Insurance Agents and Brokers of America: Winter Board Meeting, Hilton Cancun Golf & Spa Resort, Cancun, Mexico. Phone: (800) 221-7917 Web site: www.independentagent.com Jan. 18-21 Professional Insurance...

A.M. Best's stock indexes.(Statistical table)
January 1, 2007... Percent Change Global and Regional Index Month/ Year to Year/ Indexes (Ticker) Close Month Date Year Insurance Composite Indexes by Region United States (AMBUS)...

A.M. Best launches 15 global stock indexes.
January 1, 2007... A.M. Best has released 15 stock indexes covering publicly traded companies in sectors of the United States and global insurance industry. Companies on the list include insurers and reinsurers with interactive ratings from the A.M. Best Co.,...

'Stranger-originated' policies sold despite ACLI opposition.
January 1, 2007... Just how big a problem stranger-originated/investor-initiated life insurance is for U.S. life insurers is a matter of debate. As answers are sought, some say life insurers likely are knowingly selling these controversial policies, even as the...

Aon Corp.(appointment of Baljit Dail )(Brief article)
January 1, 2007... AON CORP. has named BALJIT "BAL" DAIL global chief information officer. Dail will continue as executive vice president and global chief administrative officer for Aon Consulting in addition to his new role. Dail had worked in strategic...

Hub International Ltd.(appointment of John P. Graham )(Brief article)
January 1, 2007... HUB INTERNATIONAL LTD. has named JOHN P. GRAHAM vice president and chief Financial officer. Previously, Graham was a senior vice president finance, treasurer and assistant secretary at Career Education Corp. He also served as a senior...

Marsh & McLennan Cos.(retirement of John T. Sinnott)(Brief article)
January 1, 2007... MARSH & MCLENNAN COS. announced that JOHN T. SINNOTT, vice chairman, office of the chief executive officer, would retire as of Dec. 31, 2006. Sinnott rejoined MMC following a period of retirement in 2005. Sinnott began his career with...

Ace International Life.(appointment of Anton Kushner)(Brief article)
January 1, 2007... ACE INTERNATIONAL LIFE has named ANTON KUSHNER as chief executive officer and general director of Ace Life Insurance, Russia. Previously, Kushner held management and business-development positions in the insurance and Financial services...

Lloyd's insurer Ascot names former top spy as chairman.(People in Insurance)(Ascot Underwriting Ltd. appoints Sir Richard Dearlove)(Brief article)
January 1, 2007... Lloyd's insurer Ascot Underwriting Ltd. has reached into the world of espionage in naming Sir Richard Dearlove, former head of the United Kingdom's Secret Intelligence Service, as its next chairman. Dearlove succeeds James Prior, a former...

FBL Financial Group Inc.(retirement of William J. Oddy)(Brief article)
January 1, 2007... FBL FINANCIAL GROUP INC. has announced the retirement of WILLIAM J. ODDY, chief executive officer, effective March 2007. He will be succeeded by JAMES W. NOYCE, currently chief financial officer. JAMES P. BRANNEN, currently vice president of...

New York Life Insurance Co.(appointment of Judith Vance)(Brief article)
January 1, 2007... NEW YORK LIFE INSURANCE CO. has named JUDITH VANCE senior vice president and chief human resources officer. Previously, Vance held a similar post with Moody's Corp. Before that, she held various senior human resources positions with Aetna,...

Ace Ltd.(appointment of Jorge Luis Cazar)(Brief article)
January 1, 2007... ACE LTD. named JORGE LUIS CAZAR president and chief executive officer of Ace Latin America, effective in the first quarter of 2007. Cazar currently is senior vice president of accident and health for Ace Asia Pacific. Previously he had been...

Atlantic American Corp. has made management changes at Georgia Casualty & Surety Co.(appointment of Diane Morris, Christy Payne and Jeanne Marshborn)(Brief article)
January 1, 2007... ATLANTIC AMERICAN CORP. has made management changes at GEORGIA CASUALTY & SURETY CO. and ASSOCIATION CASUALTY INSURANCE CO., its regional property and casualty operations. Association Casualty President DIANE MORRIS will take the same post...

Bristol West Holdings Inc.(appointment of Robert D. Sadler)(Brief article)
January 1, 2007... BRISTOL WEST HOLDINGS INC. has named ROBERT D. SADLER senior vice president and chief financial officer. Sadler will succeed CRAIG E. EISENACHER, who recently resigned to accept a position with Bermuda-based EVEREST RE GROUP LTD. Sadler...

Kiln Asia Ltd.(appointment of Keith Land)(Brief article)
January 1, 2007... KEITH LAND, who has long experience in the Asian insurance market, was appointed chief executive officer of Hung Kong-based KILN ASIA LTD., launched by Lloyd's insurer Kiln plc. Land most recently was CEO of the United Arab Emirates...

Van Aartrijk Group LLC.(promotion of Maureen P. Wall)(Brief article)
January 1, 2007... The VAN AARTRIJK GROUP LLC, a Washington, D.C.-area marketing-communications firm, has announced the promotion of one executive and addition of another. MAUREEN P. WALL, who has 20 years of senior-level branding, publishing and corporate...

A look back at 2006.(YEAR-END WRAP-UP)
January 1, 2007... LIBERTY MUTUAL'S new advertising campaign, "Responsibility: What's Your Policy?" shows how acts of responsibility, no matter how small, make everyday life a little better. U.K. SPECIALIST INSURER HISCOX debuted its first television...

Paranormal campaign.(Mercury Insurance Group's advertising campaign)(Brief article)
January 1, 2007... MERCURY INSURANCE GROUP'S new campaign--"Mercury Theory"--features a quirky, humorous premise. Mercury is the 14th-largest U.S. writer of private-passenger auto insurance. The focus of the campaign is to communicate the company's low auto...

New York Life Insurance Co.(SPONSORSHIP)(The Supreme Court television series to be aired on television)(Brief article)
January 1, 2007... NEW YORK LIFE INSURANCE CO. is the sole corporate underwriter of The Supreme Court, a four-part PBS series scheduled to air January 31 and February 7. The Supreme Court will be the first major television series to trace the story and influence...

LTC: not just for the elderly.(Long term care insurance)(UnumProvident Corp.'s report)(Brief article)
January 1, 2007... Nearly 58% of submitted claims for UnumProvident Corp.'s group long-term-care insurance are for people under age 65, the company reported in its first Landscape of Long Term Care, a profile of claims activity. Top causes of claims for...

Improved features in dental program.(Assurant Employee Benefits)(Brief article)
January 1, 2007... Assurant Employee Benefits has launched "Lifetime of Smiles," a program of improvement to most of its dental plans. The plans now will cover two routine and two periodontal cleanings a year, tooth-colored fillings for posterior teeth, and brush...

Division introduces group annuity.(Lincoln Financial Group)(Brief article)
January 1, 2007... Lincoln Financial Group's new Employer Markets Division has introduced Lincoln American Legacy Retirement, a multi-manager group variable annuity with 20 investment options from the American Funds. The division comprises Lincoln's...

Warranties on new/ used machinery.(Hartford Steam Boiler Inspection and Insurance)(Brief article)
January 1, 2007... Hartford Steam Boiler Inspection and Insurance Co. is now offering Select Machinery Warranty, an extended warranty program provided by the seller on new and used machinery. It applies to machinery operated in North America after the dealer's...

Business services launches policy.(Hartford Financial Products)(Brief article)
January 1, 2007... Hartford Financial Products, a unit of Hartford Financial Services, has launched The Hartford Professional Choice Liability Policy. The product is designed for small to medium-size firms and their employees in the business-services industry,...

Snapshot.(New Products)(Brief article)
January 1, 2007... Regulations: 77% believe the growing level and complexity is their biggest concern for the market/economic environment. Annuity Sales: 73% believe they will increase by at least 4% in 2007. Life Insurance Sales: 73% believe they will...

Best's rating changes.(Ratings)(Company rankings)
January 1, 2007... Best's Rating Changes This edition of Best's Rating Changes reflects all rating This changes--assignments, changes or placed under review--that occurred for life, health and proper ty/ casualty insurers domiciled in North America, as well...

Brand builders: four insurance marketing leaders tell their tales of success.(Agent/Broker)
January 1, 2007... Insurers are waging aggressive marketing campaigns. They have to. Some of their most pressing goals are to capture baby-boomer retirement dollars, to grab as much of the fiercely price-competitive auto and commercial insurance markets as...

Working and networking.(The 2006 Insurance Marketing and Advertising Summit Highlights)(Brief article)
January 1, 2007... William Pitt, HawkPartners, spoke to attendees about how insurers can differentiate themselves in the way they deliver their marketing messages. In developing media relations, companies need to underscore brand attributes, said Ansis Vallens,...

Session highlights.(Agent/Broker)
January 1, 2007... Reaching Main Street: Touching the World of Independent Agents and Financial Planners Ann Glover, Group Senior Vice President, Corporate Relations, and Chief Marketing Officer, Hartford Financial Services Group Dick Poppa, President...

Change in the wind.(The Year Ahead)(Industry overview)
January 1, 2007... Although 2006 was a relatively quiet year for insurers on the actual weather front, plenty of volatile activity swept across the regulatory and legal landscapes, leaving significant change in its wake. Hardest hitting, perhaps, were the...

Polishing the stone: now that the flood of activity from the implementation of Sarbanes-Oxley has settled, regulators, auditors and insurers are smoothing the rough spots that remain in financial reporting.(Regulatory/Law)
January 1, 2007... Key Points * The four largest auditing firms together audit about 75% of insurance companies. * The six largest auditing firms are calling for changes in how companies present financial information. * In the second year of...

Insurance auditors and actuaries of North America--2007.(A.M. Best Report)
January 1, 2007... North American insurers increasingly are seeking the services of external or unaffiliated actuarial firms to provide actuarial opinions for annual statutory filings. This is perhaps the most striking change in the data gathered as part of A.M....

Wish list: as producers' demands for technology tools spread across the board, carriers stretch to offer a large menu of options.(Technology)
January 1, 2007... Key Points * The array of tools producers prefer include such "old-fashioned" aids as e-mail, telephone and fax. * The value of new tools can be measured by frequency of use and delivery of results. * Carriers need to reach a...

A new beginning: claims outsourcing can fulfill its promise to the industry.(Technology)
January 1, 2007... Like many propositions that look irresistible at first glance, claims outsourcing has proven a compelling but elusive goal for many insurers. Identified as a prime candidate for the next great wave of outsourcing several years ago, claims...

Hubrid insecurities: the actions of an agency under the National Association of Insurance Commissioners caused financial repercussions in a corner of the investment market. While regulators have offered a short-term solution, industry leaders are calling for additional changes.(Reinsurance/Capital Markets)
January 1, 2007... Key Points * Insurers own about 25% of hybrid securities issued. * Life insurers hold about $4.2 trillion in securities, or about 12% of total investments in the U.S. capital market. * To buy a common stock, insurers have to put up...

Choosing wisely: insurers should target only the segments that they can truly serve well.(Life)
January 1, 2007... The ability of insurers to collect and evaluate client data for identifying attractive segments has grown astronomically in recent years. Unfortunately, many insurers fail to maximize the value of this new capability, especially when it comes...

E-volutionizing retirement planning: web-based and consumer self-service tools are beginning to gain ground in retirement planning.(Life)
January 1, 2007... Key Points * Software applications, including those that use Monte Carlo Simulation, have changed the way many financial analysts now determine clients' retirement planning needs. * Web-based tools are growing in use among financial...

The March of the boomers: capturing the business of retiring baby boomers will require the right blend of advice, planning and products.(Life)
January 1, 2007... By the end of 2013, it's estimated that more than half of the 76 million people born in the United States between 1946 and 1963 will be 55 years old or older and will either be considering retirement or already will have retired. These dramatic...

Medical malpractice's softer side: medical malpractice rates and claim frequency have stabilized, but claim severity continues to rise.(Property/Casualty)
January 1, 2007... Key Points * Medical malpractice liability claims are stabilizing after years of a hard market. * Tort reforms have eased the medical malpractice liability in some states. recently, defensive actions. Medical malpractice writers...

Tactical planning: the development of a tactical plan is a good way to stimulate ideas and concerns in your office.(Property/Casualty)
January 1, 2007... French author Antoine de Saint-Exupery once said, "A goal without a plan is just a wish." There is no evidence that the author of The Little Prince ever worked in the insurance industry, but he has summed up the way the industry often...

Special delivery: health insurers need to manage the cost and use of specialty drugs.(Health/Employee Benefits)
January 1, 2007... Key Points * Specialty-drug costs, which reached $40 billion in 2005, are expected to more than double to $90 billion in 2009. * The number of specialty-drug types and the diseases they treat are expanding quite rapidly. *...

A direct trend: as more carriers turn to direct sales, agents are finding ways to keep themselves in the mix.
January 1, 2007... Key Points * Insurance companies are increasingly using multiple sales channels, particularly direct sales, to drive distribution. * Independent agents have to compete with the big carriers' big advertising budgets and Internet savvy...

Preventing panic: public readiness and emergency preparedness are essential for insurers should a deadly influenza pandemic strike the United States such as the killer flu of 1918.
January 1, 2007... Public health experts warn of an influenza pandemic that could be as bad as, or worse than, the 1918 flu pandemic, which killed the equivalent (in terms of the current U.S. population) of 1.9 million people. An Insurance Information Institute...

Sex, lies and indemnity: unsavory actions on the job bear insurance implications for both the perpetrator and his employer.
January 1, 2007... The insurance world often seems to mirror the world at large. Take, for example, one of the salacious sideshows of the recent midterm elections involving a Congressman's transmission of inappropriate e-mails to a young intern. Coincidentally,...

The cost of discovery: insurers must know the new litigation rules concerning electronically stored information or pay the price.
January 1, 2007... Nonparty discovery is a common feature in insurance litigation. An insurance company defending against a property or business income coverage claim may need to subpoena documents from third parties who have business relationships with the...

Security breaches pose a growing problem.
January 1, 2007... Insurance companies and agents may be facing an increased occurrence of security breaches, according to Steve Christenson, president of Identity Theft 911, a company that provides identity-fraud resolution and works with 70 major insurers. ...

Stride Limited.(www.stride.co.uk)(Brief article)
January 1, 2007... Commercial property insurance broker Stride Limited relaunched its Web site (www.stride.co.uk) as an interactive quote site and information resource for the insurance industry. The site offers up-to-the minute insurance industry news feeds and...

ING.(Brief article)
January 1, 2007... ING launched its new print-on-demand services and extranet site, dubbed ING Life PromoCenter. The company aims to make it easier for its producers to market ING life companies' products with expanded personalization of materials, free...

Horizon Blue Cross Blue Shield of New Jersey.(www.HorizonBlue.com/podcast)(Brief article)
January 1, 2007... Horizon Blue Cross Blue Shield of New Jersey recently began educating its members and the general public about healthy living and new insurance products through podcasts. Its recently released second podcast discusses the association between...

ABD Insurance and Financial Services.(CyberSure.com)(Brief article)
January 1, 2007... ABD Insurance and Financial Services recently launched Life Sciences Unit, an online tool that will assist its Life Sciences clients in rapidly determining coverage requirements and expediting the placement of clinical trials coverage anywhere...

Looking under the hood: has anyone validated the numbers you rely on in making decisions?
January 1, 2007... The senior underwriter was obviously nervous as he shook my hand and motioned me to a chair. "I'm told you're pretty good with computers," he began. "Do you know anything about FORTRAN?" "Sure," I replied. "Back in graduate school I...

Counterterrorism should focus on cruise ships.
January 1, 2007... Maritime counterterrorism efforts are too focused on port security and cargo containers, leaving cruise ships and ferries wide open to the possibility of deadly and costly terrorist attacks, according to a book-length study of the issue by Rand...

Study: insurers facing more lawsuits than any other sector.(Property/Casualty)
January 1, 2007... The average U.S. insurance company faces nearly 1,700 separate lawsuits pending in U.S. courts, according to law firm Fulbright & Jaworski's annual U.S. litigation trends survey. That's more than five times the average posted by the next...

Index to 2006 best's review articles.
January 1, 2007... Agent/Broker 4 Advertising Blunders. Avoid these mistakes before committing to your next marketing campaign. May, p. 94. 5 Strategies to Clear Backlogs. Combining clarification, separation, simplification, measurement and communication...

Capital infusion of $600m revives Scottish Re.(Scottish Re Group Ltd.)(MassMutual Capital Partners LLC)
January 1, 2007... After weeks of intensive effort to find a solution for its deteriorating financial position, Scottish Re Group Ltd. appears to have found a way out of the thicket. The Bermuda-based life reinsurer announced an agreement that would give two...

Allstate New Jersey Insurance.(Brief article)
January 1, 2007... ALLSTATE NEW JERSEY INSURANCE will stop writing new homeowners, condominium, mobile home and landlord insurance in the Garden State beginning Feb. 5, 2007. The move does not affect Allstate's current 230,000 property customers in the state. The...

Ace Ltd.(Life)(Brief article)
January 1, 2007... ACE LTD. said it received approval from the Federal Service for Insurance Supervision to sell life insurance in the Russian federation. Ace Life Insurance Russia was cleared to sell life insurance products and will first focus on protection...

Royal & Sunalliance.(Mergers and Acquisitions)(Direct Insurance Financial Investments)(Brief article)
January 1, 2007... U.K. insurer ROYAL & SUNALLIANCE has entered a joint venture with Israel's Direct Insurance Financial Investments to access the Polish insurance market. Royal & Sun and Direct Insurance each will own 50% of the joint venture, which will own...

Republic Companies Group.(Mergers and Acquisitions)(Delek Group)(Brief article)
January 1, 2007... Property/casualty insurer REPUBLIC COMPANIES GROUP has completed its merger with Delek Capital, a subsidiary of Israeli conglomerate Delek Group. Under the agreement, shareholders of Republic will receive $20.40 in cash for each share of common...

Insuring the priceless: a new documentary film shows the world's art treasures are at great risk.
January 1, 2007... Works of art may be priceless, but not to thieves. And the vulnerability of such treasures may be greater than the average person thinks. Filmmaker Rebecca Dreyfus reports the value of the most expensive art heist in the United States at...