Best's Review articles from July 2003

Best's Review archives from July 2003

Against the odds. (Editor's Prologue).
July 1, 2003... Despite an operating environment in 2002 that was as difficult for insurers as it has been for decades, many companies were able to move ahead of the competition. Life insurers faced the lowest interest rates in years; lower separate-account...

'We wanted to grow in volume...ImageRight was one of the best investments we could make'.(Strickland Insurance Group)(Advertisement)
July 1, 2003... North Carolina based Strickland Insurance Group has a powerful mission. They strive to be a "recognized leader and provider of Specialty Line Property and Casualty insurance products and services." Document Management Search "Some of...

Comment.
July 1, 2003... The Big Picture of Small Insurers My compliments on your article "Little Fish" in the June edition of Best's Review. The piece shows real insight into the part that small insurers play in the big picture of insuranc--insight that is...

General Casualty Insurance Cos. (People in Insurance).(Brief Article)
July 1, 2003... General Casualty Insurance Cos. has named Pete McPartland president and chief operating officer, responsible for directing operations and overseeing day-today activities. McPartland had been executive vice president of insurance operations...

Anthem Inc. (People in Insurance).(Brief Article)
July 1, 2003... The board of Anthem Inc. has elected the company's president and chief executive officer, Larry C. Glasscock, as chairman. Glassoock succeeds L. Ben Lytle, who retired. Glasscock joined Anthem in April 1998 as chief operating officer and was...

Merchants Group Inc. (People in Insurance).(Brief Article)
July 1, 2003... Stephen C. June has been named president of Merchants Group Inc. June succeeds Brent D. Baird, who wasn't involved in the daily operations of the company's sole operating subsidiary, Merchants Insurance Company of New Hampshire Inc., and...

Insurers: eating and driving don't mix. (Briefing).
July 1, 2003... Following a wave of state legislation, both failed and successful, aimed at discouraging the misuse of cell phones by distracted motorists, New Jersey s state Assembly now is weighing a bill that would bar motorists from engaging in other...

XL Capital Ltd. (People in Insurance).(Brief Article)
July 1, 2003... According to XL Capital Ltd., James H. Veghte is being appointed president of XL Re Latin America, which is XL's principal reinsurance operating unit in Latin America with five offices throughout the region. Veghte, currently president and...

InsuranceNoodle. (People in Insurance).(Brief Article)
July 1, 2003... InsuranceNoodle has promoted Kathryn Emmerson from chief operating officer to chief executive officer. Prior to working at InsuranceNoodle, Emmerson was executive vice president of Aon Risk Services and senior vice president of Marsh Midwest,...

2002 Review of Banks and Insurance Sales. (By the Numbers).(Brief Article)
July 1, 2003... 2002 was an important year for banks and their efforts to sell insurance according to "Michael White's Bank Insurance and Investment Fee Income Report--2002 Year-End Edition." * Banks earned a record $3.49 billion in insurance commissions...

2003 1st Quarter Bank Broker/Dealer Review. (By the Numbers).(Brief Article)
July 1, 2003... Licensed bank broker/dealers working in banks with $5 billion in assets generated higher revenue in first quarter 2003 in almost all product lines, according to the Bank Insurance & Securities Association and Kenneth Kehrer Associates. While...

Meetings.(Brief Article)(Calendar)
July 1, 2003... July 10-13 Latin American Association of Insurance Agencies, 33rd Annual Conference, Doral Resort and Spa, Miami. Phone: (305) 477-1442. Web site: www.LAAIA.net. July 13-17 International Insurance Society, 39th Annual...

Risk-retention levels hard call for captives. (Briefing).(Brief Article)
July 1, 2003... Captive insurers are under more pressure to identify and define risk probability and volatility in a market that allows much less opportunity to transfer risk than in the past. Laura Taylor, a senior consultant with Aon Corp.'s IRMG, said...

Offshore captives warned to be wary. (Briefing).(Brief Article)
July 1, 2003... Over the past few years, and especially since the Sept. 11, 2001, terror catastrophe, offshore financial centers have come under increasing scrutiny from other governments and groups for their perceived roles as tax havens or even...

Captive insurers enjoy popularity but still face hard-market realities. (Briefing).
July 1, 2003... The rapidly hardening insurance market of the past two years has encouraged an explosion of alternative-market insurance solutions, especially captive formation. But there's a down side--reinsurers, under intense pressure from losses...

Terrorism Risk act presents questions. (Briefing).(U.S. Terrorism Risk Insurance Act of 2002)(Brief Article)
July 1, 2003... The growing captive insurance market has been struggling with the question of how the U.S. Terrorism Risk Insurance Act will affect alternative-market insurance. After TRIA's passage in November 2002, the big question for the captive...

Best Rating Changes. (Ratings).
July 1, 2003... This summary of Best's Rating Changes includes life, health-care and property/casualty insurers domiciled in North America, as well as international insurers that had ratings assigned, changed or placed under review since this section last...

Best of both worlds: although many insurers are divesting lines of business to focus on core products, a few multiline insurers are sticking to their course and coming out ahead. (Cover Story).
July 1, 2003... In the 1980s and early 1990s, multiline insurers were prevalent throughout the industry. The large companies sought to capitalize on cross-selling of products and economies of scale. But a funny thing happened on the way to continued success....

Making contacts: Nationwide's varied mix of products leads to greater customer satisfaction and retention. (Cover Story).
July 1, 2003... "Nationwide is on your side"--both sides to be exact. A leading insurer in both the property/casualty and life industries, Nationwide cites its multiline status and diverse products as the key to its success. "Diversification allows us to...

Divide and conquer: American International Group touts its strength in diversity. (Cover Story).
July 1, 2003... American International Group has long loomed large as one of the oldest and biggest commercial property/casualty writers in the United States. But the acquisition of several large life companies in the past few years has boosted AIG's status in...

Triple punch: a broad spectrum of products, strong brand and disciplined management team contribute to Hartford Financial's success. (Cover Story).(Company Profile)(Cover Story)
July 1, 2003... Hartford Financial Services Group Inc. points to a strong record since it went public in 1995. Despite another tough year for the company and the industry in 2002, Hartford Financial has averaged an 8.7% annual growth in net income, and a 14.7%...

Admitted Assets, Top Life Writers--2002.(Illustration)
July 1, 2003... Admitted Assets, Top Life Writers--2002 Ranks is based on admitted assets for 2002. ($ Thousands) % Rank Group Name AMB# Assets...

Net Premiums Written, Top Property/Casualty Writers--2002.(Illustration)
July 1, 2003... Net Premiums Written, Top Property/Casualty Writers--2002 Rank is based on net premiums written for 2002. ($ Thousands) Net ...

Epidemic proportions: insurers are modeling the potential liability posed by infectious diseases. (Industry Strategies: Infectious Disease).
July 1, 2003... With the outbreak of one or two new infectious diseases each year for the past decade, the battle to ward off epidemics continues to challenge medical professionals. Health-care providers and hospitals are gearing up to fight new infectious...

Everything courts: insurers may find that a holistic, collaborative approach to business helps ensure that all parts are working in harmony. (Industry Strategies: Management).
July 1, 2003... Whether a company manufactures automobiles or insurance products, working toward a common goal is the linchpin to optimum product manufacturing, delivery and service. Successful management of an insurer's product portfolio establishes the...

A hole in the wall: soaring construction-defect litigation is shaking the foundation of the commercial general liability market--and residential contractors are getting hammered. (Property/Casualty: Litigation).
July 1, 2003... As the third generation to run a painting and drywall contracting company, Bruce King hopes to see the fourth generation of the family take over one day. But if general commercial liability rates keep rising, that dream may never be realized....

Keeping the faith: as more mold complaints have surfaced, bad-faith claims have been increasing as well. (Property/Casualty: Claims Management).
July 1, 2003... Insurers and consumers took notice when a Texas jury awarded $32 million to homeowner Melinda Ballard in 2001 in her mold-related lawsuit against an affiliate of Farmers Insurance Group. That award, which included $12 million in punitive...

Working both sides of the house: a successful claims management organization will focus on efficiency and consistency for settling routine claims and on leveraging expertise for claims that are more complex. (Property/Casualty: Claims Management).
July 1, 2003... Building a world-class claims management organization remains one of the great management challenges in financial services. As senior executives attempt to strike the perfect balance that optimizes claims, they face huge financial stakes,...

Getting the right value: insurance to value is a fundamental tenet of good underwriting and should not be subject to changes in cycles. (Property/Casualty: Underwriting Insight).
July 1, 2003... Suppose that you went into a grocery store to buy a dozen eggs. When you got home you realized that there were 16 eggs in the box. The next time you went to the grocery store you were curious: you opened the boxes before buying the eggs. You...

Chubb policy soothes fears. (Property/Casualty: Marketplace).(Chubb Group of Insurance Cos. is offering its Masterpiece Family Protection to homeowners policyholders)(Brief Article)
July 1, 2003... According to the U.S. Department of Justice, nearly 1.3 million cases of forcible or unlawful entry of residences, 1.4 million stalkings, 50,000 car jackings and 58,000 non-family-related child abductions occur each year. Insurance is now...

Nerd cars capture special market. (Property/Casualty: Marketplace).
July 1, 2003... Nerd cars-such as the AMC Pacer featured in the movie "Wayne's World"-are becoming hot collector items and in need of classic car insurance. According to Hagerty Insurance, cars such as the AMC Pacer and Gremlin have grabbed the imagination of...

Making the deals: amidst the merger and acquisition frenzy, many agencies believe the value of their businesses may never be higher. (Property/Casualty: Selling Insight).
July 1, 2003... Agency principals often ask me if the merger and acquisition frenzy is continuing. I tell them that this market continues to be robust and does not appear to be slowing down. Over the past five years, an average of 173 deals have been announced...

Middle market looks for insurance alternatives. (Property/Casualty: Loss/Risk Management Notes).(Brief Article)
July 1, 2003... The hard market has pushed medium-sized companies to join their larger, Fortune 500 brethren in using alternative risk transfer to find insurance coverage, according to a retail broker and captive manager. David B. Powell, senior vice...

Tillinghast: D&O rates rose 29%. (Property/Casualty: Loss/Risk Management Notes).(Brief Article)
July 1, 2003... Directors and officers insurance premium rates jumped 29% in 2002, the largest increase the market has seen in almost 20 years, according to a survey by Tillinghast-Towers Perrin. In a sign of the continuing hardening of the market, the...

Assessing real risk: realistic risk management requires more than traditional financial reporting and risk measurement techniques. (Property/Casualty: Loss/Risk Management Insight).
July 1, 2003... Capital is scarcer than ever. Depressed financial markets, catastrophic events, rising costs of guarantees and options, deferred acquisition cost write-offs, concerns over reinsurance security and corporate scandals in the financial community...

Privacy matters: congress continues to study ways to protect consumers' financial information. (Property/Casualty: Privacy Insight).
July 1, 2003... Insurers will face continuing regulatory compliance challenges on the privacy front in coming months. Congress will be pondering how credit information should be used and what safeguards are needed in e-commerce to keep information private. ...

Tinkering with ERISA: Congress may amend the decades-old law protecting retirement benefits to allow providers of 401(k) and other retirement plans to advise investors. (Life/Health: Retirement Plans).
July 1, 2003... When Congress passed the Employee Retirement Income Security Act in 1974, defined-benefit plans dominated and 401(k) plans didn't even exist. Employers took on investment risk, made the fiduciary decisions and handled the paperwork for plan...

Hitching a ride: by becoming part of the reinsurance arrangement, life insurance producers can grow sales and long-term profits. (Life/Health: Producer-Owned Reinsurance).(Industry Overview)
July 1, 2003... Any producer who earns more than $50,000 of annual commissions on life or annuity business may benefit from a producer-owned reinsurance arrangement. The strategy which is already established in the property/casualty industry especially in the...

Enterprise resilience: companies must look beyond traditional risk management to fully protect the key components of their operations. (Life/Health: Selling Insight).
July 1, 2003... Imagine what would happen if your company's underwriting function was located in a single facility and a flash flood knocked out the building for three months. Or imagine a front-page scandal that caused significant brand erosion or even agent...

Allstate links annuity to UL product. (New Products and Services).(Brief Article)
July 1, 2003... Lincoln Benefit Life Co., a member of Allstate Financial Group, has created a financial tool, GenerationLinc, to help deferred variable annuity owners transfer more wealth to their beneficiaries without burdening them with a high income-tax...

MassMutual adds more choice to disability portfolio. (New Products and Services).(Brief Article)
July 1, 2003... Massachusetts Mutual Life Insurance Co. has introduced several individual disability income products and enhancements. The products aim at protecting a portion of earned income and/or retirement plan contributions and offer riders, discounts...

Fortis develops simplified work-site package. (New Products and Services).(Brief Article)
July 1, 2003... Fortis Benefits Insurance Co., Kansas City, Mo., has introduced a benefits package combining basic insurance for life, disability and accidental death and dismemberment. Simple Benefits Solutions, is designed for employers who have not...

Tough economy hurt the disability industry in 2002. (Life/Health: Marketplace).(Brief Article)
July 1, 2003... The group disability industry experienced another year of slow growth in 2002, according to a survey by John Hewitt & Associates. The Portland, Maine-based firm, which specializes in the disability industry, reported that sales grew only...

Prudential partners on 529 plan. (Life/Health: Marketplace).(Prudential Financial)(529 College Savings Plan)(Brief Article)
July 1, 2003... Prudential Financial has partnered with BabyMint Inc., an Atlanta-based microinvesting technology company, to enhance the 529 College Savings Plan it runs in New Mexico that is available to customers nationwide. BabyMint has built a...

Signator improves training program. (Life/Health: Marketplace).(Signator Financial Network)(Brief Article)
July 1, 2003... Signator Financial Network, a distribution arm of John Hancock Life Insurance Co., has launched what it says is a "major training and marketing effort" for its field representatives. The network has added a new selling system, a financial-needs...

What makes stock sizzle? It's no secret some life insurance stocks have greater investor appeal than others. (Life/Health: Underwriting Insight).
July 1, 2003... The capital markets have been characterized by unrelenting volatility in recent years, resulting in a drastic loss of value for many companies as investors reassess their stock holdings. To determine how this market disarray has affected...

Under separate cover: Internet risks have become so great that some insurers have taken them out of general liability policies and given them policies of their own. (Technology: Cyber-Risk).
July 1, 2003... As business went online in the past few years, crime followed. As a result, insurers are creating whole new lines of Internet-risk coverage. Only a few insurers write this new kind of insurance, and commercial customers are just starting to...

Instant connection: Instant messaging is taking the business world by storm, and some insurers already are finding it improves productivity and reduces costs. (Technology: Instant Messaging).
July 1, 2003... "Call me" and "Are you at your desk? Phone number, please" are just some of the many messages the nearly 55 loss-control representatives, risk consultants and premium auditors in Chubb Corp.'s Southern zone exchange daily via instant messaging....

Calculating minds: using precise analytical measures, insurers can compare the costs and benefits of Business Process Integration, a new technology that promises to bring incompatible data systems together. (Technology: Cost Management).
July 1, 2003... In today's insurance sector, Business Process Integration software is rapidly gaining momentum by helping carriers automate processes that ordinarily involve human intervention. Within many organizations, two or more courses of action often are...

Steering the course: data-stewardship organizations assist insurers in navigating the high seas of data. (Technology: Technology Insight).
July 1, 2003... Data stewardship is a hot topic these days, particularly given the cost of poor data quality. A study by The Data Warehouse Institute estimates that bad data costs U.S. industries $600 billion a year. Companies have more data than ever before,...

Data-mining information helps MetLife detect fraud. (Technology: Technology Notes).(MetLife Auto & Home )(Brief Article)
July 1, 2003... Data mining, a way of using technology to uncover fraud rings, has helped MetLife Auto & Home link data electronically at a significantly faster pace than possible with human effort alone according to its special investigation unit. ...

The lack of transaction traffic sinks Inreon reinsurance platform. (Technology: Technology Notes).(Brief Article)
July 1, 2003... Backers have apparently pulled the plug on Inreon, the electronic reinsurance trading platform, even though a growing number of reinsurers and insurers worldwide had been signing up to do business through it. Inreon said its online...

GAB Robin Group of Cos. (Web News You Can Use).(new information system)(Brief Article)
July 1, 2003... GAB Robins Group of Cos., a claims services firm, introduced ClienTelligent PowerCube, the newest feature of its claims reporting and risk management information system. The enhancement will enable clients to access expansive multidimensional...

Hartford. (Web News You Can Use).(cost estimation tool)(Brief Article)
July 1, 2003... Hartford recently introduced its Losstimator, a cost estimation tool. Risk managers or business owners can adjust the modeled information, creating company-specific scenarios to meet their needs. Once data is entered, the Losstimator can...

Insurity Inc. (Web News You Can Use).(underwriting software)(Brief Article)
July 1, 2003... Insurity Inc., a business process and technology firm, announced the latest enhancement to its policy processing platform. The new Commercial Intellisys-Underwriting Forms program facilitates virtual electronic management of all...

Travelers Property Casualty. (Web News You Can Use).(announces most recent enhancements to its risk management resource, e-CARMA)(Brief Article)
July 1, 2003... Travelers Property Casualty announced the latest enhancements to its risk management resource, e-CARMA, which delivers functionality, including an enhanced set of 18 standard reports, as well as new, point-and-click report analysis that enables...

WellPoint-Cobalt merger to expand product lines, generate savings. (Companies).(WellPoint Health Networks Inc.)(Brief Article)
July 1, 2003... WellPoint Health Networks Inc.'s $906 million plan to merge with Cobalt Corp. would allow the company to offer new products and generate savings of as much as $15 million after three years, according to WellPoint's chief executive officer. ...

Nationwide Financial unties chairman, CEO positions. (Companies).(Nationwide Financial Services Inc. makes changes to its upper management structure)(Brief Article)
July 1, 2003... Moving to strengthen its corporate-governance practices, Nationwide Financial Services Inc. said it has made changes to its upper management structure, separating roles and realigning priorities. Nationwide Financial said its board voted to...

Conseco amends reorganization plan. (Companies).(Brief Article)
July 1, 2003... Conseco Inc. said it amended its reorganization plan after reaching an agreement in principle with certain creditors who had objected to its original plan. The company entered discussions with some of its creditors who objected to a second...

AIG files $5.1 billion universal shelf registration. (Companies).(American International Group Inc.)(Brief Article)
July 1, 2003... American International Group Inc. said it filed a universal shelf registration statement with the U.S. Securities and Exchange Commission that would allow it to sell as much as $5.1 billion in debt securities, preferred and common stock, and...