Best's Review articles from July 2005

Best's Review archives from July 2005

Leading developments.(Editorial)
July 1, 2005... The July issue of Best's Review is a special issue each year, bringing you A.M. Best's rankings of the top life insurers and the top property/casualty insurers, based on admitted assets for life and net premiums written for property/casualty....

Giant U.S. health writers expand with push into individual market.(health insurance)
July 1, 2005... Several of the largest U.S. publicly traded health insurance companies are delving aggressively into the individual health marketplace, some through strategic acquisitions, as small employers take less of a role in providing health insurance...

Nonstandard automobile markets growing amid stiffer competition.(automobile insurance market)
July 1, 2005... The nonstandard automobile insurance market has gone from slump to upswing and industry experts say the main battle zones are Florida, Texas and California. But is a market downturn already on the horizon? "Anybody who is anybody thinks...

State Farm sparks 'technological arms race'.(State Farm Mutual Automobile Insurance Co.)(Brief Article)
July 1, 2005... As the largest U.S. automobile insurer, State Farm, prepares to roll out a new pricing system for auto insurance, one industry observer said the industry is now engaged "in a technological arms race." Robert Hartwig, senior vice president...

By the Numbers: growth forecast in Middle East, North Africa.(insurance markets)(Brief Article)
July 1, 2005... Middle Eastern insurance markets will experience a significant increase in premiums in personal lines, especially motor, in the coming three to five years, according to the A.M. Best Special Report, "Middle East and North African Insurance...

Meetings.(Calendar)
July 1, 2005... July 6-7 National Association of Insurance Commissioners: Statutory Accounting and Reporting Issues, Loews L'Enfant, Washington, D.C. Phone: (816) 783-8200 Web site: www.naic.org/education July 19-22 Reinsurance Association of America:...

AIG seeks to clear the air with restatements.(Briefing)(Brief Article)
July 1, 2005... American International Group Inc.'s management is hoping the filing of its much-anticipated 10-K report will clear the air with one big blast that overhauls questionable accounting for the past five years, allowing the group to get on with its...

Parliament passes EU reinsurance directive.(Briefing)(Brief Article)
July 1, 2005... The European Parliament has passed a proposed directive aimed at creating a unified market and regulatory structure for reinsurance among the 25 member states of the European Union. Approved on first reading by parliament, the directive is...

NAIC advances greater disclosures for small-face-amount life insurance.(National Association of Insurance Commissioners, Disclosure For Small Face Amount Life Insurance Policies Model Act )(Brief Article)
July 1, 2005... Following decades of intermittent debate, state regulators finally advanced an effort to establish greater disclosures to consumers of small-face-amount life insurance policies. Having been in and out of consideration for some 25 years, the...

AON Corp.(Agent/Broker)(appointment of Steve McGill as chief executive officer.)(Brief Article)
July 1, 2005... * AON CORP. has named STEVE McGILL chief executive officer of a new Global Large Corporate business unit that will address the risk management needs of global corporations. Previously, McGill was chief executive of international insurance...

Integro Ltd.(Agent/Broker)(appointment of Donald B. Davidson as managing director.)(Brief Article)
July 1, 2005... * INTEGRO LTD. has named DONALD B. DAVIDSON managing director. Davidson will be responsible for client development and community relations. Launched earlier this month, Integro Ltd., through its subsidiaries, is a full-service insurance...

Conseco Inc.(appointment of Susan L. Menzel as vice president.)(Brief Article)
July 1, 2005... * CONSECO INC. has named SUSAN L. MENZEL executive vice president of human resources. In this role, Menzel will be responsible for human resources on an enterprisewide basis. Menzel joins Conseco from APAC Customer Services Inc., where she...

New York Life Insurance Co.(appointment of Craig Gill.)(Brief Article)
July 1, 2005... * NEW YORK LIFE INSURANCE CO. has named CRAIG GILL to senior vice president of the human resources department at the company. In his new position, Gill will specifically focus on building service delivery to New York Life employees and...

Allstate Corp. names Wilson new president and COO.(People in Insurance)(Thomas J. Wilson has been named president and chief operating officer of Allstate Corp)(Brief Article)
July 1, 2005... Thomas J. Wilson has been named president and chief operating officer of Allstate Corp., the company said. Allstate said the newly created position, which became effective June 1, places Wilson in charge of all of Allstate's insurance...

Hartford Financial Services Group Inc.(appointment of Terry Walker as Vice President.)(Brief Article)
July 1, 2005... * HARTFORD FINANCIAL SERVICES GROUP INC. has named TERRY WALKER as senior vice president and chief information officer for its Hartford Life Inc. subsidiary. The former head of technology for Hartford Life's group benefits division, Walker...

Zurich Financial Services Group.(Property/Casualty)(Reorganization and restructuring of Zurich Financial Services Group.)(Brief Article)
July 1, 2005... * ZURICH FINANCIAL SERVICES GROUP restructured its North American management team, creating seven regional executive positions as part of what the insurer described as an enhanced marketing focus. The seven executives named to fill the new...

New Jersey Manufacturers Insurance Co.(Property/Casualty)(appointments.)(Brief Article)
July 1, 2005... * The board of NEW JERSEY MANUFACTURERS INSURANCE CO. and its wholly owned insurance subsidiaries has named VINCENT C. BONICA as chairman and ANTHONY M. STONIS as vice chairman. Bonica is chairman of L.A. Dreyfus Co. in Edison, N.J. Stonis...

Safeco.(Property/Casualty)(appointment of Charles Horne as vice president.)(Brief Article)
July 1, 2005... * SAFECO has named CHARLES HORNE senior vice president and controller. Previously, Home was Safeco's vice president of audit services, with responsibility for managing Safeco's internal audit department. In addition, he led the...

Ace USA.(Property/Casualty)(Brief Article)
July 1, 2005... * ACE USA has named RICHARD B. VINCELETTE senior vice president of public entity for Ace Casualty Risk. Vincelette will be responsible for building Ace's public entity capability in the United States, which will provide coverages for...

Willis Re.(Reinsurance)(appointments of Willis Group Holdings Ltd.)(Brief Article)
July 1, 2005... * WILLIS RE, the reinsurance unit of Willis Group Holdings Ltd., has named CHARLES LEE as senior vice president at Willis Re U.S. in Los Angeles, and KENNETH J. KRUGER as senior vice president at Willis Re U.S. in New York and as a member of...

Get emotional: reaching out to consumers' feelings is the key to successful insurance marketing.(Q & A Insurance Marketing)(Interview)
July 1, 2005... Insurers must learn to bond with consumers through advertising. That's the message from Joseph V. Tripodi, senior vice president and chief marketing officer for Allstate. Tripodi has experience reaching out to what he calls customers'...

Travelers ads support agents.(AGENT/BROKER)(Brief Article)
July 1, 2005... TRAVELERS personal lines, a member of St. Paul Travelers, has launched a campaign that gives independent agents personalized advertising tools to use in their local markets. The Helping Agents Grow campaign includes templates for ads for print,...

PacifiCare teams with Costco.(HEALTH INSURANCE)(alliances and partnerships)(Brief Article)
July 1, 2005... PACIFICARE HEALTH SYSTEMS INC. is selling family and individual health coverage at Costco warehouses in Southern California. The pilot program is offered to the wholesale retailer's members who pay $100 for executive membership and is targeting...

Meet Mister Mouse.(BRANDING)(advertising of insurance company.)(Brief Article)
July 1, 2005... U.K. INSURER ESURE has launched its new advertising campaign and a new brand icon--Mister Mouse. Esure is hoping the blue rodent will increase the company's share of the online insurance business in the United Kingdom. Mister Mouse, a...

Hall of fame Golfer Juli Inkster.(LONG-TERM-CARE INSURACE)(Genworth Financial contracts with Golfer Juli Inkster)(Brief Article)
July 1, 2005... HALL OF FAME GOLFER JULI INKSTER has allied with Genworth Financial to improve public awareness of long-term-care insurance, particularly among women. As part of the agreement, Inkster wears the Genworth logo on her attire at every 2005 Ladies...

Variable Annuities.(SPOTLIGHT)(Protective Life Insurance Co)(Brief Article)
July 1, 2005... Protective Life Insurance Co. has launched ProtectiveRewards B2A, which charges 0.95% annually for its death benefit and reduces that charge through an annual persistency reward of 0.4% beginning in the eighth year. The result is similar to...

Allstate retools its standard policy.(Property/Casualty)(Allstate Insurance Co.)(Brief Article)
July 1, 2005... Allstate Insurance Group has introduced Your Choice Auto Insurance, new features to its standard policy that provide choices and rewards for safe drivers. Features include Accident Forgiveness, which keeps rates from rising due to an accident;...

Safeco expands BOP offering.(New Products)(Safeco Insurance Co.)( business-owner policies )(Brief Article)
July 1, 2005... Independent distributors of Safeco Insurance Cos.' business-owner policies may now write larger and more numerous coverages in the small-business marketplace, where Safeco has reported 20% growth in the past two years. Safeco raised its policy...

Why people buy life insurance.(SNAPSHOTP)(Brief Article)(Illustration)
July 1, 2005... Why People Buy Life Insurance Income Replacement 66% Final Expenses 42% Pay Off Mortgage 33% Transfer Wealth 22% Replace Another Policy 21% College Funding 17%...

Medex offers emergency help.(SNAPSHOT)(Brief Article)
July 1, 2005... Corporate travelers encountering medical problems or political and civil unrest can now be protected with up to $100,000 of emergency evacuation assistance through Medex Assistance Corp.'s Medex Secure product. Medical evacuations are to...

Critical Illness, cancer products.(product introduction and marketing.)(Brief Article)
July 1, 2005... Two major insurers in early spring introduced products that bridge the gap between traditional health insurance coverages and the additional costs that critical illnesses can bring. MetLife Inc. launched a package of critical illness insurance...

Best's rating changes.(Ratings)
July 1, 2005... 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...

Two for one: some people won't buy long-term-care insurance because they may never need it. For them, a life policy that accelerates the death benefit for LTC payments may be an alternative.(Life)(Cover Story)
July 1, 2005... Long-term-care insurance agent and consultant Wilma Anderson was working recently with a business-owner client. Both the client and his wife were 45 years old, and they were reluctant to spend thousands of dollars a year in LTC premiums for a...

Top life writers by admitted assets, United States--2004 (1): rank is based on admitted assets for 2004.(Life)(Illustration)
July 1, 2005... Admitted Assets ($) % Change AIG Life Group 327,018,270 17.7 Metropolitan Life & Affiliated Cos 307,846,893 8.0 Prudential of America...

U.S. life/health companies: how to contact the top 25 life and health insurers based on admitted assets.(Life)(Directory)
July 1, 2005... Aegon USA Inc. [69707] 4333 Edgewood Rd., Cedar Rapids, IA 52499, Phone: (317)398-8511, Web site: www.aegonins.com Aflac Inc. Group [69824] 1932 Wynnton Road, Columbus, GA 31999, Phone: (706) 323-3431, Web site: www.aflac.com AIG Life...

On the storm front: although Florida's neighboring states have suffered a fair share of hits, none has established a hurricane catastrophe fund.(Property/Casualty)
July 1, 2005... Meteorologists warned months ago that the United States could expect a very active hurricane season in 2005. The prediction didn't comfort people in Florida where 2004's tumultuous hurricane season brewed four destructive storms--Charley,...

Net premiums written, top property/casualty writers, United States--2004.(Property/Casualty)(Illustration)
July 1, 2005... Rank is based on net premiums written for 2004. ($ Thousands) Net Premiums Written ($) % Change State Farm Group 47,762,343 2.5 Amer Intl Group Inc. 33,119,678 ...

U.S. property/casualty companies: how to contact the top 25 property/casualty insurance companies based on net premiums written.(Property/Casualty)(Directory)
July 1, 2005... Ace INA Group [18498] 1601 Chestnut St., Philadelphia, PA 19103, Phone: (215) 640-1000, Web site: www.ace-ina.com Allianz of America Inc [18429] 55 Green Farms Rd., P.O. Box 5160, Westport, CT 06881-5160, Phone: (415) 899-3055, Web site:...

Capitalizing on captives: domiciles for what may be the quietest, cleanest and least-visible industry are spreading through the United States.(Regulatory/Law)
July 1, 2005... Cabbies in Burlington, Vt., are among the few residents who know that their state is a major domicile for captive insurance companies. And despite minimal public awareness in Vermont and elsewhere, the number of states that license captives is...

Captive domiciles: captive domiciles, which are usually formed through enabling legislation, must be prepared to take on the tasks of oversight and regulation.(Regulatory/Law)(Directory)(Illustration)
July 1, 2005... Captive Domiciles Captive domiciles, which are usually formed through enabling legislation, must be prepared to take on the tasks of oversight and regulation. No. of Domicile Captives Regulator ...

Hungry hedge funds: known for employing unusual and creative types of investments in their quest for profitability, hedge funds have set their sights on reinsurance.(Reinsurance/Capital Markets)
July 1, 2005... Hedge funds--once regarded as secretive investment vehicles for the very wealthy--have entered the reinsurance business. The reinsurance companies backed by hedge funds don't necessarily operate the way traditional reinsurers do, but they do...

On the benefits fringe: legislation designed to help small businesses provide affordable health insurance has detractors who say it will cause more problems than it could solve.(Health/Employee Benefits)
July 1, 2005... For 43 years, small-construction contractors were able to purchase health insurance through Associated Builders and Contractors, a national trade association. That ended in 2000, when the health insurer that provided coverage for the...

Calls for a cure: with flexible schedules and ergonomic accommodations, companies can curb high absenteeism at their call centers.(Technology)
July 1, 2005... Call centers are among the nation's fastest growing Industries In 2000, almost one in 20 people in the United States was employed by call centers, and the expectation is that will grow to one in seven this year, according to Fast Company's Web...

An evolutionary process: evolving CIO leadership requirements combine business strategy and technology savvy to drive growth and innovation.(Technology)(chief information officer)
July 1, 2005... The chief information officer's role is increasingly complex and demanding as the issues he or she deals with have become broader and more integral not only to business operations but also for business strategy. Despite these changing...

Recruiting centers: quality marketing tools remain key to recruiting and retaining successful insurance sales professionals.
July 1, 2005... The challenges to developing best practices for attracting and retaining top financial ser vices sales professionals are tied to changing business strategies. In the 1990s many thought big financial supermarkets with well-known brand names...

Raid on the competition: agencies readily admit they recruit good producers from competitors as the talent pool shrinks.
July 1, 2005... When insurance companies and agencies go looking for new producers, they rely mostly on referrals and word-of-mouth recommendations, and they find the best places to look for those new recruits are other insurers and agencies, according to a...

The governance gap: governance improvements are incomplete without effective controls over all the business risks a life insurer faces.
July 1, 2005... In recent years, life insurance companies have joined the rest of the financial services sector in devoting significant time and attention to improving corporate governance. Strengthening board independence, expanding the authority of audit...

Post-retirement riddle: insurers are missing an opportunity to expand their current focus on growing savings to include managing income during retirement.
July 1, 2005... As the U.S. population ages and life spans continue to increase, more and more people are waking up to a new retirement challenge--not the traditional challenge of accumulating savings for retirement, but of managing income during retirement....

A personal response: homeowners insurers are adding identity theft coverage to policies.
July 1, 2005... Identity theft is a rapidly growing problem. The incidents and news stories are scary--what's a person to do in a world where using online computers, credit cards and Social Security numbers is unavoidable but can result in considerable loss?...

An explosive end: the days when commercial insurance could operate out of public view are over.(Property/Casualty)
July 1, 2005... From time to time, the relative obscurity of a little known sector of the world's business comes to an explosive end. The phenomenon is typically accompanied by intense, and generally negative, media attention. Workers in such sectors are often...

Maintaining a safety net: there's a growing trend in the use of predictive analytics as an answer to intensifying competition.(Property/Casualty)
July 1, 2005... Fans of old movies may recall a dramatic scene in Cecil B. DeMille's 1952 epic The Greatest Show on Earth when the trapeze artist cuts his safety net and plunges to a crippling fall. No serious insurer would intentionally remove a safety...

Back to basics: after experiencing huge losses and court battles, Aetna is rebounding by focusing on customer service, prompt claims payments and mending relationships with physicians.(Health/Employee Benefits)(Company Profile)
July 1, 2005... Four years ago, Aetna Inc. may not have liked what it saw when it looked in the mirror. Faced with a bleeding bottom line, a dramatic decline in membership and its share of bad press, Aetna's once highly recognized slogan, "Aetna, I'm glad I...

Is it or isn't it? Recent court cases are exploring the definition of advertising on the uncharted terrain of the Internet.(Regulatory/Law)
July 1, 2005... What exactly is advertising? Not too long ago, it seemed a relatively simple question. The Marlboro Man on the back cover of Time magazine? Advertising. Choosy moms choosing Jif peanut butter on Saturday morning television? Clearly advertising....

It's theoretical: a ruling holds that the period of restoration is the time that it should take to rebuild.(Silverstein Properties Inc.)
July 1, 2005... After the World Trade Center's Twin Towers collapsed on Sept. 11, 2001, fires that smoldered in the ruins eventually were put out. But litigation has raged on between Silverstein Properties, the landlord, and its property insurers concerning...

Housing stock: some life insurers are investing in funds that finance or develop affordable urban housing.
July 1, 2005... America's urban areas, long starved for capital and suffering from a flight of people and businesses to suburbia, have been rediscovered. They once again are attracting people, companies and businesses, and investment capital. The capital...

4 online selling myths: people who shop for insurance online like agents, too.(InsWeb Corp.)
July 1, 2005... Many U.S. agents and insurers are under several misconceptions about insurance consumer behavior on the Internet. When it comes to how consumers shop for and purchase insurance, particularly automotive insurance, InsWeb has discovered four...

Interest grows in online auto insurance quotes.
July 1, 2005... Insurers that view the Internet as secondary to other, more traditional ways of reaching customers may want to reconsider. A new study from customer research service Keynote Systems has found that among people who are shopping online for...

Rewards and risk: simple criteria can identify a corporate culture that focuses on risk as well as return.
July 1, 2005... According to recent surveys, a majority of financial and nonfinancial corporations have appointed chief risk officers or are considering doing so. While this may be a positive step, the more profound challenge lies in creating a corporate...

Gas additive may raise cleanup costs of spills.(Property/Casualty)(Brief Article)
July 1, 2005... A chemical added to gas may lead to increased costs to clean up spills from underground storage tanks, according to Liberty Mutual. The additive, methyl tertiary-butyl ether or MTBE, is one of a group of chemicals commonly known as...

Adjusters group to write E&O coverage for members.(Property/Casualty)(Claim Professionals Liability Insurance Co. LLC )(Brief Article)
July 1, 2005... A trade group for insurance adjusters and claims professionals has launched an insurance company to offer errors and omissions coverage to its insured members. Claim Professionals Liability Insurance Co. LLC is a creation of the National...

Study: millions of U.S. drivers don't know rules of the road.(Property/Casualty)
July 1, 2005... One in 10 drivers in the United States would fail a driver's test if tested today, according to a study by GMAC Insurance. Also, 29% of drivers who drink admitted they would knowingly drive while over the legal limit "if they felt okay." ...

Swiss re reorganizes to focus on growth, capital markets.(Swiss Reinsurance Company Ltd.)(Brief Article)
July 1, 2005... Swiss Re Group said it would reorganize its management structure into three main units in an effort to focus more efficiently on profitable growth and use of capital. Under the new structure, Swiss Re will create three units called...

Lloyd's annual report echoes familiar themes.(Companies)(Brief Article)
July 1, 2005... In an annual report that revisited what it described its the successes of 2004, Lloyd's has reiterated the importance of its long-running priorities of underwriting discipline, contract certainty and business process reform. Chief...

ING joint-venture life insurer expands in China's capital.(Companies)(Brief Article)
July 1, 2005... ING Groep N.V. said its life insurance joint venture ha China has opened its Beijing branch after getting regulatory approval to expand to China's capital. The Beijing branch of ING Capital Life Insurance Co. Ltd. has hired 300 agents to...

Global broker Marsh will retain its business units.(Companies)(Marsh and McLennan Companies Inc.)(Brief Article)
July 1, 2005... After completing a three-month internal review, Marsh & McLennan Cos. said it wouldn't sell or spin off any of its main business units. The review, initiated in March, focused on the operations of global broker Marsh Inc.; reinsurance...

Gotcha: persistence pays off for insurance fraud investigators.(L&W Investigations Inc.)
July 1, 2005... In the world of surveillance, patience is key Consider the case of the chief executive officer drawing nearly $15,000 a month in disability after suffering a heart attack and falling to the floor, severely injuring her back. A once-avid runner,...