Best's Review articles from March 2004

Best's Review archives from March 2004

Age of anxiety.(Editor's Prologue)
March 1, 2004... Not since the moon was in the seventh house and Jupiter aligned with Mars has so much attention been paid to the impact of converging factors, only this time it's not Aquarius--it's the age of anxiety that is dawning on the life insurance...

Who's really at fault?(Comment)(Bill, Ford (Accounts Executive))(Letter to the Editor)
March 1, 2004... I had to laugh in amazement at the perversion, twisting and moral equivalency that Mr. Anderson employs to justify his assertion that insurance is a disease. (Letter from Eugene R. Anderson, "Comment," Best's Review, January 2004) He compares...

Depend on disclosure.(Comment)(Letter to the Editor)
March 1, 2004... In his piece, "Let the Seller Beware," (Best's Review, February 2004) Ronald D. Verzone provides a timely alert about mutual fund problems spilling over to life companies' products such as variable life policies containing mutual funds. It...

Horizon Blue Cross Blue Shield.(People in Insurance; promotes John W. Campbell )(Brief Article)
March 1, 2004... Horizon Blue Cross Blue Shield of New Jersey has named John W. Campbell senior vice president, general counsel and secretary. Campbell will direct and supervise the legal affairs division and will be responsible for the internal investigation...

RLI Corp.(People in Insurance; Piyush K. Singh promoted)(Brief Article)
March 1, 2004... RLI Corp. has appointed Piyush K. Singh chief information officer. He joined RLI in 1994 and was promoted to RLI assistant vice president in 1998 and to vice president of information technology in 2000.

Argonaut Group Inc.(People in Insurance; B. Thomas Johns promoted)(Brief Article)
March 1, 2004... Argonaut Group Inc. named B. Thomas Johns president of Argonaut Group's specialty commercial group, which offers insurance products and services for food distributors, restaurants, churches and dry cleaners. Johns joined Argonaut Group as...

Corporate trends likely to ignite increasing pressure on D&O market.(Highlights From BestWeek)(A.M. Best Company Inc)(Tillinghast-Towers Perrin)(directors and officers insurance market )
March 1, 2004... Directors and officers insurance has become a more interesting line of business since the collapse of energy trader Enron Corp. in late 2001, and it's likely to become more so in 2004, though perhaps not in a good way for underwriters. ...

Liberty Mutual Group.(People in Insurance; Tim Rose to succeed Doug Nelson )(Brief Article)
March 1, 2004... Liberty Mutual Group named Tim Rose president of Liberty Mutual Property, succeeding Doug Nelson, who was named executive vice president of business markets operations. Rose, a 32-year veteran of Liberty Mutual, most recently was...

Fireman's Fund Insurance Co.(People in Insurance; Frederick Matteson promoted)(Brief Article)
March 1, 2004... Fireman's Fund Insurance Co. named Frederick Matteson senior vice president and chief information officer. Matteson will oversee all information-technology operations. With more than 20 years of technical and business-management...

School of Risk Management, Insurance and Actuarial Science.(People in Insurance)(Brief Article)
March 1, 2004... John T. "Jack" Sinnott, who has more than 40 years in the insurance industry, was named the 2004 Insurance Leader of the Year by the School of Risk Jack Sinnott Management, Insurance and Actuarial Science at St. John's University in New York....

D&O premiums spike in 2003.(By the Numbers)(Brief Article)
March 1, 2004... Premiums for directors and officers policies saw the biggest increase since the mid-1980s--an average of about 33%--in 2003 compared with 2002, according to an annual survey by Tillinghast Towers-Perrin. The 2003 U.S D&O Premium Index...

Claimant distribution by ownership--United States.(By the Numbers)(Brief Article)(Illustration)
March 1, 2004... The survey reveals 91% of the D&O claims against nonprofit participants were brought by employees, whereas shareholders were the largest source of claims for large corporations. Fewer than ...

Median total premium by business class.(By the Numbers)(Brief Article)(Illustration)
March 1, 2004... Median Total Premium By Business Class The highest median premium for D&O liability coverage was reported by the utilities business class for the ninth year in a row. United States Utilities $515,566...

Prevalence of D&O liability insurance by survey year.(By the Numbers)(directors' and officers' liability insurance)(Brief Article)(Illustration)
March 1, 2004... Over the past 10 years of the survey, Purchases of D&O liability insurance Have increased. In 2003, 97% of Respondents reported purchasing D&O insurance. 1994 85 1995 86 1996 88 1997 90 1998 92 1999 93 2000 ...

Meetings.(Briefing)(Brief Article)(Calendar)
March 1, 2004... March 13-16 National Association of Insurance Commissioners, Spring National Meeting, Sheraton New York Hotel and Towers, New York City. Phone: (816) 783-8101. Web site: www.naic.org. March 14-16 Captive Insurance...

Health plans to lower premiums with new federal medicare funds.(Briefing)
March 1, 2004... Two weeks after the Centers for Medicare & Medicaid Services said it would raise payments to health insurers that offer Medicare Advantage plans by an average of 10.6%, health plans said they would lower premiums for nearly all of their...

Corporate-owned life policies saved by senate.(Briefing)(Brief Article)
March 1, 2004... The U.S. Senate Finance Committee has approved legislation saving key tax benefits for companies that buy corporate-owned life insurance policies on their employees. The legislation is part of the National Employee Savings and Trust Equity...

Chubb's asbestos charge might spur reserving run.(Briefing)(Chubb Corp.)(Brief Article)
March 1, 2004... Rate hikes and growing premium volume that lifted Chubb Corp. to higher quarterly and annual earnings were overshadowed by speculation about a renewed round of industry reserving actions, as the company revealed it would take a $250 million...

Best's Rating Changes.(Ratings)
March 1, 2004... 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 of placed under review since this section last...

Guide to best's financial strength ratings.(Ratings)(Illustration)
March 1, 2004... GUIDE TO BEST'S FINANCIAL STRENGTH RATINGS A Best's Rating is an independent opinion, based on a comprehensive quantitative and qualitative evaluation, of a company's balance sheet strength, operating performance and business profile....

Life at a Crossroads: the life insurance industry, beset by long-standing problems, looks for solutions and new opportunities.(The Big Picture)(Industry Overview)
March 1, 2004... A new mood has surfaced in the life insurance industry. It is more sober after the exuberance of rising sales in the late 1990s and the despair of falling profits since 2000. As the economy improved last year, and company executives emerged...

Channel surfing: the search for the most effective means of distribution is taking life and annuity insurers in myriad directions.(Life)
March 1, 2004... In recent years, top executives at many life insurance and annuity companies have looked at their distribution systems and have found them wanting. To these industry leaders, improving distribution performance remains a priority, especially...

Advancing the agenda: under ACLI's Keating, life insurers are looking for big changes on Capitol Hill.(Life)(Keating, Frank)
March 1, 2004... Hours before President Bush's 2004 State of the Union speech, Frank Keating, the president and chief executive officer of the American Council of Life Insurers, made his own speech a few blocks away, in front of C-SPAN and a roomful of...

Building a better mousetrap: product enhancements, including guaranteed benefits or rates, and education about immediate annuities point to increased sales.(Life)
March 1, 2004... Manufacturing products is the area over which the life insurance industry has the most control, and while the bear market that ended a year ago crimped profits, the variety of products in the industry's portfolio helped it survive. In the...

The changing world of life products.(Life)
March 1, 2004... Variable Life/Variable Universal Life Variable-annuity sales have rebounded with the improved equities market, but VL and VUL sales fell another 37% through last year's first three quarters, according to Limra. Since the product isn't old...

What producers want: few agencies contract with only one or two carriers. A recent survey sheds light on the reasons for this practice and on how carriers can gain an advantage over competitors.(Agent Issues)
March 1, 2004... Insurance companies often say they want to make it easy for agents and brokers to do business with them, but a report released in November 2003 by Celent Communications found that the vast majority of carriers don't give independent producers...

Expansion plans: brokers with a solid client base of small businesses may find health a natural extension.(Agent Issues)
March 1, 2004... Adding health plans to an insurance agency's product lines can be a natural extension of its life and investment or property and casualty sales. While masterful sales and management of only one type of insurance can drive a profitable business,...

Tackling call blockers: a decline in sales rates traced to the new Do Not Call law is expected to continue for at least a year for companies depending on the pre-existing business relationship exemption.(Agent Issues)
March 1, 2004... Last year was tumultuous for telemarketing. Legislation was on the forefront and the changes came fast and furious. The long-lasting impact of all the changes on the future of telemarketing in the insurance business remains to be seen. In the...

Easy pass: recent trends in competition and carrier contracts have blurred the distinction between captive/career and independent agents.(Agent Issues)
March 1, 2004... Career of captive agents usually sell only the products of one insurance company, while independent agents handle the products of many insurers. A few major companies, such as Northwestern Mutual, Axa Financial, State Farm and New York Life,...

A whole new world: as U.S. companies increase international investing, political risk insurers take advantage of new coverages and new markets.(Political Risk)(Chubb Group of Insurance Cos)(American International Group Inc)
March 1, 2004... After a couple of lackluster years, the demand for political risk insurance is heating up again, and capacity is starting to expand. The handful of companies that dominate the marketplace--Ace Group, American International Group, Chubb...

Beat the spread: workers' compensation results will produce a wide berth between winners and losers. Here are 10 steps to take to be on the right side.(Workers' Compensation)
March 1, 2004... The sea of challenges to workers' compensation profitability seems to stretch endlessly to the horizon: insurer insolvencies and withdrawals from markets, accelerating medical inflation, lengthening claim durations, terrorism exposure,...

Into the future: as the year unfolds, many potential sources of loss loom on the horizon.(Selling Insight)
March 1, 2004... As we move through 2004, it's valuable to reflect back and look forward, asking how we fared in 2003 and what perils might be down the road. For example, in 2003 we worried about public reactions to the hard market, whether Congress would...

Iroquois Group reaches out to community banks.(Marketplace)(Brief Article)
March 1, 2004... The Independent Community Bankers of America and The Iroquois Group has formed a strategic partnership. The relationship will enhance Iroquois' national expansion efforts and provide the insurance agencies of ICBA's member banks with access to...

Amity offers policies for affordable housing units.(Marketplace)(Amity Insurance Agency Inc.)(Brief Article)
March 1, 2004... Amity Insurance Agency Inc. now carries coverage for affordable housing units. "Insurance specializing in subsidized and affordable housing is a rare commodity. This market is often treated as an unfavorable class of business and most...

AIG sole insurance player in super bowl XXXVIII.(Marketplace)(American International Group)
March 1, 2004... Advertisers' interest in this year's Super Bowl has helped set a new record for the highest average amount ever paid for a television broadcast, but only one insurer--American International Group--made an appearance in the commercial lineup....

GE Commercial Insurance launches cover for Masonic Associations.(Marketplace)(Brief Article)
March 1, 2004... GE Commercial Insurance is offering an insurance program created for Masonic Associations. Thompkins & Co., an independent agency, will underwrite the coverage for property, inland marine, crime, general liability, automobile and excess...

The numbers game: can insurers learn anything useful from baseball? Absolutely.(Loss/Risk Management Insight)
March 1, 2004... Michael Lewis' bestseller, "Moneyball," explains in fascinating detail how the Oakland A's became one of the most successful teams in professional baseball despite a payroll substantially smaller than nearly all of their less successful rivals....

Dude, where's my insurance?(Loss/Risk Management Notes)(Progressive)
March 1, 2004... While almost all new car owners can proudly tell you how many air bags their new car has, most do not know basic details about their auto insurance, according to a survey by Progressive. In a recent survey, Progressive found that 98% of new...

Study: professional liability claims up.(Loss/Risk Management Notes)(Aon Services Group Inc.)(Brief Article)
March 1, 2004... As hospital and physician professional liability insurance rates continue to climb, a new study shows part of that increase is because claims are rising almost 10% a year. Over the past three years, claims costs increased at a steady rate...

Extreme weather patterns pose greater insurance risk.(Loss/Risk)(Munich Reinsurance Co.)(Brief Article)
March 1, 2004... A continuing pattern of weather extremes and increasing severity of natural catastrophes in 2003 poses a "deteriorating risk situation" that insurers will have to address, Munich Re Group said in its year-end catastrophe survey. The...

Fighting back: if insurers and corporations act now, they may stem the plague of silica and mixed-dust claims.(Underwriting Insight)
March 1, 2004... A plague threatens insurers, but it is a plague of lawsuits, not disease. At least 49 corporations have been named as defendants in silica personal-injury cases. Together, two of those defendants face more than 70,000 claims. The silica claims...

Applying the brakes: the march to conversion and consolidation by Blues plans has slowed considerably, and some are finding solace in remaining a nonprofit.(Blues Plans)
March 1, 2004... Over the past 15 years, many Blue Cross and Blue Shield health plans have joined Hamlet in asking "to be or not to be"--for-profit or nonprofit, in their case. Moves by Blues plans to scrap their not-for-profit status and become a...

Big, better, best? Even as some insurers gain national size through mergers and acquisitions, competition is still a local battle.(Mergers)
March 1, 2004... Health care may be a local business, but that's not stopping carriers from consolidating nationally. While many in the industry are skeptical that the $16.25 billion Anthem Inc./WellPoint Health Networks Inc. merger, announced in October,...

A matter of time: exceptions made to preferred pricing may present life insurers with an unwelcome surprise: poor underwriting results.(Preferred Life)
March 1, 2004... Preferred pricing of life insurance policies, a marketing tool that boomed in the 1990s, might have a hidden time bomb that could affect life insurers' mortality experience and push reinsurers to raise costs even higher than recent experience...

MassMutual gives life policies to working parents.(Marketplace)(Brief Article)
March 1, 2004... MassMutual Financial Group is quietly implementing a philanthropic program in which it will eventually issue to qualified working parents 20,000 life insurance policies whose death benefits will pay for their children's educations. The...

Rest of the story: Paul Harvey, Bankers Life & Casualty reunite.(Marketplace)(Brief Article)
March 1, 2004... Paul Harvey, a radio broadcaster and news commentator for more than 70 years, has agreed to a second stint as on-air spokesman for Bankers Life and Casualty Co., Chicago. Harvey had served as spokesman for more than 30 years from the 1950s...

Fortis builds new business model for voluntary employee benefits.(Marketplace)(Fortis Benefits Insurance Co.)(Brief Article)
March 1, 2004... Fortis Benefits Insurance Co. says it has come to view voluntary employee benefits in a new light after talking with benefits brokers, a group it expects will generate significant growth in coming years. "To build a business model capable...

Consumers driving change: consumer-directed health plans are here to stay and are growing into a major force in the industry. Insurers must act now to capitalize on the wave of change.(Selling Insight)
March 1, 2004... Within an otherwise confusing and overcompromised law, the new Medicare bill--which includes provisions for health savings accounts--has set the scene for a reasonably predictable near-term future for the health-care industry, in terms of the...

Reaching the uninsured: uncomplicated limited-benefit plans can provide basic, straightforward coverage to workers with low-to-moderate incomes.(Underwriting Insight)
March 1, 2004... According to new figures from the U.S. Census Bureau, the number of Americans without health insurance increased by 2.4 million last year to 43.6 million--the largest increase in a decade. While most Americans who have health insurance continue...

On speaking terms: the Kinnect platform, which allows trading partners' existing systems to communicate with each other, made its first connection this year, and anticipates many more.(Commercial Property)
March 1, 2004... Kinnect expects 2004 to be a big year for its recently released electronic platform--an innovative commercial enterprise, managed by industry insiders and experts from other financial-services sectors, that enables existing systems of trading...

Unwelcome guests: although anti-virus software, firewalls and other protective measures are helping companies protect against computer-related attacks, some insurers believe security is an even greater concern to companies today.(Computer Security)
March 1, 2004... It's not a virus, but it can make its recipient feel sick. Lurking in the hidden confines of computer workings, spyware secretly gathers information about a person's of company's online activity and feeds it to an advertiser or a competitor or...

Making IT's 'to-do' list: adequate resources are a growing concern.(Management)(resource adquacy is the concern)
March 1, 2004... As insurers face pressure to reduce costs and do more with less, allocating resources and aligning business and information technology top insurers' IT priorities this year. That's according to a recent survey by the research and advisory firm...

Enabling profitable growth: agent portals need to help agents grow as well as lower operating costs.(Technology Insight)
March 1, 2004... Insurers have made significant progress in establishing agent portals over the past few years that provide agents with connectivity, product information, applications, commission information and various operational functions on a cost-effective...

CCH Insurance Services.(Web News You Can Use)(AuthenticWeb Matrix)(Brief Article)
March 1, 2004... CCH Insurance Services, which provides information solutions for insurance compliance professionals, released a new AuthenticWeb Matrix covering credit scoring requirements. The Matrix summarizes, by state, requirements for the use of credit...

Manulife USA.(Web News You Can Use)(Brief Article)
March 1, 2004... Manulife USA recently introduced a new Web resource on its Variable Annuities Web site (www.manufifeusa.com). Through a single investment portal, registered users can access the latest thoughts and forecasts on the markets from some of the top...

Travelers Property Casualty Corp.(Web News You Can Use)(Brief Article)
March 1, 2004... Travelers Property Casualty Corp. and InStar Corp., an agency management systems provider, announced new real-time e-service capabilities for loss runs, electronic policy view, and billing for small commercial insurance policies using IVANS...

Zurich.(Web News you Can Use)(Brief Article)
March 1, 2004... Zurich recently announced the launch of its new Web-based "Virtual Consulting" service to provide small-business insurance agents and their customers with risk control information and strategies. The system, available free of charge through...

Nationwide at center of e-mail privacy ruling.(Technology Notes)(Nationwide Mutual Insurance Co.)(Brief Article)
March 1, 2004... In a ruling certain to be felt beyond the boundaries of the insurance industry, a federal court has upheld Nationwide Mutual Insurance Co.'s firing of an employee based on the contents of an e-mail it examined. Upholding a lower court's...

Report: strategic IT initiatives give insurers leading edge.(Technology Notes)(Brief Article)
March 1, 2004... Insurers must continue to leverage information technology investments and begin to address the legacy system challenges to contain costs and achieve operational efficiency, according to a recent report by research and advisory firm TowerGroup....

GE's new insurance unit files for IPO.(Companies)(Brief Article)
March 1, 2004... General Electric Co., which said in late 2003 that it would reorganize its businesses to shrink its insurance operations, plans to sell about 30% of the equity of its life and mortgage insurance business through an initial public offering of...

Endurance specialty forms unit to coordinate platforms.(Companies)(Endurance Specialty Holdings Ltd.)(Brief Article)
March 1, 2004... In an effort to better coordinate its U.S., U.K. and Bermuda subsidiaries, reinsurer Endurance Specialty Holdings Ltd. is forming a new division devoted specifically to improving operating efficiencies across its three platforms, the company...

UnitedHealth is remaining in the individual line.(Companies)(UnitedHealth Group Inc.)(Brief Article)
March 1, 2004... UnitedHealth Group Inc. said that although it has cancelled a line of individual health insurance products in three Midwestern states, the company is offering another line of individual products for its members. "At the end of the day, we...

Fortis buys Japanese equity unit of German-owned group.(Companies)(West AM)(Brief Article)
March 1, 2004... The asset-management arm of financial-services group Fortis said it acquired the Japanese equity unit of German-owned asset manager West-AM, a unit of WestLB Group. Fortis said the acquisition is an "important addition" to the product...

Rand study and insurers agree: obesity causes disabilities.(The Last Word)(disability claims up)
March 1, 2004... The obesity crisis in the United States, which has long been known to rack up health-care costs, has caused a sharp rise in disability rates over the past two decades as Americans have become obese at younger ages. About 127 million adult...