Best's Review articles from March 2006

Best's Review archives from March 2006

Weathering the after-waves.(Editor's Prologue)
March 1, 2006... The most destructive hurricane season on record is retreating into history, but its effects are far from over. 2006 reinsurance renewals followed the path of the storms as the lines of business directly affected by hurricanes Katrina, Rita and...

Agent, broker definitions can be misleading.(Letter to the editor)
March 1, 2006... With all due deference to Matthew Farmer, I must take exception to his "A Matter of Distinction" article that appeared in the December 2005 issue of Best's Review. His article simply restates the definitions of "agent" and "broker" found in...

NAIC should provide data without substantial fees.(Letter to the editor)
March 1, 2006... As a past licensed insurance producer in New Jersey, I was greatly interested in "Foundations of Regulation: Annual Checkup" by Peter Lencsis in the December 2005 issue of Best's Review. The history and evolution he provided of legislative...

Correction.(Correction notice)
March 1, 2006... The U.K. government created the Financial Services Authority in October 1997. The new agency replaced the Securities and Investments Board. Information about the FSA's beginning was incorrect in the February issue of Best's Review.

Insurers in Gulf States feel pinch from construction equipment thefts.
March 1, 2006... The widespread rebuilding effort along the U.S. Gulf Coast in Louisiana, Florida, Texas, Mississippi and Alabama is feeding a variety of criminal activity, including an already burgeoning business in construction theft. Experts fear the...

Insured catastrophe losses reached record $56.8b in '05.(Brief article)
March 1, 2006... Five storms accounted for nearly 93% of 2005's record $56.8 billion in insured catastrophe losses, according to the Insurance Services Office Inc. Hurricanes Dennis, Katrina, Ophelia, Rita and Wilma caused about $52.7 billion in insured...

Concerning an early gag rule.(March 1906 issue of Best's Review )(Brief article)
March 1, 2006... The March 1906 issue of Best's Review reported concern about a bill introduced in the New York legislature. The bill required that in order to publish statements about the financial condition of life and fire insurance companies in New York and...

Post-Katrina claims rules eased in Mississippi.(Mississippi Insurance Department)(Brief article)
March 1, 2006... In the wake of Hurricane Katrina and in the midst of insurance-related issues that have surfaced as a result, the Mississippi Insurance Department issued a bulletin to insurers pushing back the deadline regarding "notice of claim" and "proof of...

Buy the numbers.(health insurance industry)
March 1, 2006... A.M. Best Special Report: Life/Health Rating Upgrades Outpace Downgrades In 2005, the life/health insurance industry enjoyed another strong year of operating earnings, which along with benign credit markets led to historically high capital...

Meetings.
March 1, 2006... March 4-7 National Association of Insurance Commissioners: Annual Spring National Meeting, Walt Disney World Dolphin, Orlando, Fla. Phone: (816) 783-8100 Web site: www.naic.org March 6-9 America's Health Insurance Plans: National Policy...

Best's insurance stock indices.(Brief article)
March 1, 2006... Four Weeks Ended February 9, 2006 Percent Change Year Index Month/ to Year/ ...

Best's review: top broker list.
March 1, 2006... Best's Review's premiere ranking of the top insurance brokers will publish in the July issue. Along with the ranking by volume of business generated, each listing will feature key financial data including brokerage revenues and total revenues,...

Levee district may need to self-insure.(Brief article)
March 1, 2006... The entity in charge of the now infamous levee and floodwall system in New Orleans that failed when Hurricane Katrina struck is considering self-insuring its liability risks. The Board of Commissioners of the Orleans Levee District met Feb....

Transamerica Insurance & Investment Group.(Ken Kilbane appointed)(Brief article)
March 1, 2006... TRANSAMERICA INSURANCE & INVESTMENT GROUP has named KEN KILBANE as president. Kilbane joined Transamerica in 1996 as vice president of technology. Previously he had worked for ITF Residential Capital Corp., Countrywide Financial Corp. and...

Independence Holding Co.(David Kettig and Scott Wood appointed)(Brief article)
March 1, 2006... * INDEPENDENCE HOLDING CO. has named DAVID KETTIG and SCOTT WOOD as co-chief operating officers. The appointments are simultaneous with the closing of Independence Holding's acquisition of Insurers Administration Corp. Kettig will continue...

Ace USA.(Kevin Dunham appointed)(Brief article)
March 1, 2006... * ACE USA has named KEVIN DUNHAM senior vice president and branch manager for Ace Risk Management. Dunham will oversee Ace Risk Management branch operations in Los Angeles. Dunham joined Ace in 2002. He most recently was regional vice...

American International Group Inc.(Charles Williamson, Christopher Sparro and Douglas Worman)(Brief article)
March 1, 2006... AMERICAN INTERNATIONAL GROUP INC. has named CHARLES WILLIAMSON president of the AIG Private Client Group. CHRISTOPHER SPARRO will succeed Williamson as president of AIG WorldSource. DOUGLAS WORMAN will take the place of Sparro as zonal...

New Aetna CEO sees growth opportunity in individual sales.(Ronald A. Williams)(Brief article)
March 1, 2006... Last month, Ronald A. Williams, president of Aetna, was named to the additional post of CEO, effective Feb. 14. He succeeds Dr. John W. Rowe, who led the financial turnaround of the company in a five-year stint as CEO. Rowe, 61, is to retire by...

United America Indemnity Ltd.(Joseph R. Morris)(Brief article)
March 1, 2006... * UNITED AMERICA INDEMNITY LTD's board named JOSEPH R MORRIS as the insurer's president. The company also announced that it would consolidate its two U.S. insurance subsidiaries. United National Group and Penn-America Group will be united...

W.R. Berkley Corp.(Carol Adams appointed)(Brief article)
March 1, 2006... W.R. BERKLEY CORP. named CAROL ADAMS executive vice president and chief operating officer of Berkley Accident & Health LLC. Adams will focus on the growth and development of Berkley's accident and health business. Based in New Jersey,...

Assurang Inc.(Robert B. Pollock and J. Kerry Clayton appointed)(Brief article)
March 1, 2006... ASSURANT INC. has named ROBERT B. POLLOCK as chief executive officer and appointed him to its board of directors. Pollock, currently Assurant's president and chief operating officer, will succeed J. KERRY CLAYTON as CEO. Clayton has announced...

Renaissance Holdings Ltd.(William Ashley appointed)(Brief article)
March 1, 2006... * RENAISSANCERE HOLDINGS LTD. named WILLIAM ASHLEY chief executive officer of Glencoe Group Holdings Ltd., the Bermuda-based group's individual risk business. Ashley will continue in his current roles as president and chief underwriting...

Peta White.(joins Max Re Ltd.)(Brief article)
March 1, 2006... MAX RE LTD. named PETA WHITE senior vice president and international treaty underwriter of the property and casualty reinsurance division. Most recently, White was vice president and underwriter in the international department for Ace...

XL Reinsurance America Inc.(Brief article)
March 1, 2006... XL REINSURANCE AMERICA INC. has named JOHN WELCH president and chief operating officer. Welch also will become a member of XL Capital Ltd's reinsurance executive group, which is composed of senior officers in XL Capital's reinsurance division....

The Independent Insurance Agents & Brokers of America.(Brief article)
March 1, 2006... * THE INDEPENDENT INSURANCE AGENTS & BROKERS OF AMERICA has retained the services of DOUG NAPPI, former chief counsel to the U.S. Senate Banking Committee, the Big T confirmed. Nappi, who left the committee last fall to accept a partnership...

Geico workers go to the head of the class.(Burdell-Hunt Magnet School)(Government Employees Insurance Co.)(Brief article)
March 1, 2006... NEARLY 40 GEICO associates took on temporary, teaching posts this winter at Burdell-Hunt Magnet School, where they explained the importance of business, economics and free enterprise to almost 450 students in kindergarten through fifth grade....

AmeriHealth N.J. teams up with Rutgers.(Family Business Forum)(Rutgers University School of Business )(Brief article)
March 1, 2006... AMERIHEALTH NEW JERSEY, which has many customers who own small or family businesses, has become the premier sponsor of the Family Business Forum at the Rutgers University School of Business at Camden. According to the business forum, U.S....

Secret to success.(Erin Esurance to help Auto Insurer Esurance)(Brief article)
March 1, 2006... AUTO INSURER ESURANCE has put a new spin on the role of agent, with company spokeswoman/animated special agent Erin Esurance on the job. Her mission: To help consumers crack the auto insurance code and "save some green" by doing business with a...

London-based insurer Brit insurance holdings PLC'S.(Brief article)
March 1, 2006... LONDON-BASED INSURER BRIT INSURANCE HOLDINGS PLO'S search for the much-coveted ABC1 male--British sociological shorthand for middle and upper middle classes--ended on a famous cricket ground. There, the company scored a sponsorship for that...

Living benefits are preferred.(Brief article)
March 1, 2006... For a second year, a study by the Diversified Services Group has found that guaranteed living-benefit options have overshadowed immediate variable annuities as retirement-income solutions of choice. Most executives interviewed in the Wayne,...

Jefferson national offers low-cost variable annuity.(Jefferson National Life Insurance Co.)(Monument Advisor)(Brief article)
March 1, 2006... Dallas-based Jefferson National Life Insurance Co. has introduced a variable annuity, Monument Advisor, with a set insurance fee of $240 a year instead of an annual mortality-and-expense charge that industry-wide about 1.3% of invested assets....

Travelers offers discount to hybrid auto owners.(Travelers Insurance)(Brief article)
March 1, 2006... Travelers Insurance in February began offering a 10% discount on automobile insurance to owners of hybrid vehicles in the United States, citing research that indicates hybrid owners tend to fall into the preferred insured category. Travelers'...

Policy protects hedge-fund professionals.(National Union Fire Insurance Company of Pittsburgh, Pennsylvania)(Hedge Fund Protector)(Brief article)
March 1, 2006... National Union Fire Insurance Company of Pittsburgh, Pa., a member of American International Group, has launched Hedge Fund Protector, a policy that covers hedge fund managers, directors and officers against liability exposures and potential...

Sam's Club enters health-plan marketing.(Extend Benefits Group LLC )(Brief article)
March 1, 2006... Sam's Club has joined with Extend Benefits Group LLC to offer a defined-contribution health insurance program for businesses. The Extend-Choice for Sam's Club program allows employees to pick an individual plan that best fits their needs and...

Snapshot.(employee benefits)(Brief article)
March 1, 2006... Income in Retirement vs. Pre-Retirement 52% For employees" who do not contribute to 401(k) plans 98% For employees who contribute 8% Average part of salary contributed to 401(k) plan 125% Amount retirees may need for income and...

Best's rating changes.
March 1, 2006... This edition of Best's Rating Changes reflects all rating changes--assignments, changes or placed under review--that occurred for life, health and property/casualty insurers domiciled in North America, as well as international insurance...

Guide to best's financial strength ratings.(Ratings)
March 1, 2006... 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....

Tale of two markets: the buyer's level of U.S. catastrophe exposure has much to do with the price of reinsurance this year.(Cover story)
March 1, 2006... Speculation was rife in the property/casualty markets about the impact of last year's record-breaking hurricane season on reinsurance treaties at the January renewals. As reinsurers studied the data on renewals, brokers saw a "tale of two...

Broker wars 2006: some commercial brokers are gaining market share as a result of the compensation controversy.
March 1, 2006... As the dust settles in the commercial broker compensation probes, those who stand to gain the most are reporting more market share and key new hires. The probes, launched in October 2004 by New York state Attorney General Eliot Spitzer,...

Leading brokers a year later.(Agent/Broker: Market Competition)
March 1, 2006... Since New York state Attorney General Eliot Spitzer's investigation commenced on Oct. 14, 2004, top-tier brokers have made some major changes to their business practices: * Segment leader Marsh Inc. has a new leader, President and Chief...

No time to spare: a new approach to time management has producers delegating, planning, qualifying, and performing self-analysis.
March 1, 2006... The need to achieve organic growth has led many agencies to raise producer goals and provide more incentives for new business production. They also have reviewed their sales process and what producers can do to be more productive. As a result,...

Selling good decisions: agents and brokers will be more successful if they demonstrate they know just as much about their clients as they do about financial products.
March 1, 2006... Clients have always wanted their brokers or agents to be people they can trust. That's because what they are buying is not merely a financial or risk management product, but the right decision about what combination and structuring of products...

Disability's new day: group disability has become more competitive and has acquired a new emphasis on the small-case market.(Health/Employee Benefits)
March 1, 2006... Key Points * UnumProvident's cutback in large-case group disability has opened the market to other large writers. * UnumProvident and other companies are setting their sights on the small-case market, which is not much penetrated and...

Delayed reaction: the alternative risk market made it through the 2005 U.S. hurricane season in relatively good shape, but the storms' real blow may be yet to come.(Property/Casualty: Alternative Risk)
March 1, 2006... Most alternative risk vehicles breathed a sigh of relief after the devastating 2005 U.S. hurricane season came to an end. Substantial losses appeared to be limited to specific industries--transportation, health care, oil and energy, for...

Captive domiciles.(Directory)
March 1, 2006... Captive Domiciles Captive domiciles are usually formed through enabling legislation and must be prepared to take on the tasks of oversight and regulation. Domiciles may use different criteria to define captives. The captive counts...

Genetic evolution: how an industrial giant gave birth to life insurance's newest star.(Company overview)
March 1, 2006... In late 2003 when General Electric Co. disclosed that it would be spinning off the bulk of its life and mortgage insurance operations, many thought the world's largest multinational corporation had apparently lost faith in the long-term...

In the palm of your hand: mobile wireless technologies are helping agents and adjusters to be more efficient and also meet the demands for real-time service.(Technology: Mobile Devices)
March 1, 2006... Sometimes the best things really do come in small packages. At least that's what some insurers are finding when it comes to technology. A growing number of carriers now are using mobile and wireless handheld devices to manage daily tasks. From...

Lloyd's closes its electronic initiative Kinnect.(Lloyd's Life Assurance Ltd.)(Editorial)
March 1, 2006... Citing a lack of long-term viability and its own strategic priorities, Lloyd's has closed Kinnect, its high-profile attempt to introduce centralized electronic communications. In a letter to customers, Michael Dawson, Kinnect's interim...

BankInsurance.com.(redesigned website)(Brief article)
March 1, 2006... BankInsurance.com has redesigned its Web site. The site more clearly showcases the company's proprietary products, such as the flagship "Bank and Bank Holding Company Insurance & Investment Fee Income Reports," "Fee Income Ratings Reports," and...

The Combined Group.(www.combinedgroup.com)(Brief article)
March 1, 2006... The Combined Group recently made it easier for commercial lines agencies to use the company's Web-based services to get simultaneous, real-time quotes from multiple carriers through its new Web site. The site (www.combinedgroup.com) also offers...

ForAgentsOnly.com.(enhancement of webpage)(Brief article)
March 1, 2006... ForAgentsOnly.com, the password-protected Web site that Drive Insurance from Progressive agents and brokers use to quote and service their customers, unveiled a new home page design and site navigation. The site also offers agents and brokers a...

The Hartford Financial Services Group.(Quote Marine, electronic submission tool)(Brief article)
March 1, 2006... The Hartford Financial Services Group announced that its international air and ocean cargo insurance is now available to agents using the company's electronic submission tool, Quote Marine. Accessed through Hartford's Electronic Business Center...

Sharing secrets: the 'common interest' doctrine is the key to whether an insurer is entitled to receive privileged communications between a policyholder and defense counsel.
March 1, 2006... Yogi Berra of Yankees baseball fame is credited with saying, "It was impossible to get a conversation going; everybody was talking too much." This sentiment seems strangely appropriate in the context of communications among policyholder,...

Cause or sympton? Two key court decisions define the limitations of mental illness insurance claims.(Regulatory/Law: Legal Insight)(Lang vs. Long Term Disability Plan of Sponsor Applied Remote Technology Inc)(Mongeluzo vs. Baxter Travenol Long Term Disability Benefit Plan)(Case overview)
March 1, 2006... While most group disability policies include a provision that limits benefits paid for mental and nervous conditions, the definition of mental illness is often ambiguous. Policy limitations for mental illnesses typically limit benefits to 24...

Worst-case scenarios: reinsurers and insurers are taking steps to deal not only with mega-catastrophes, but also with individual catastrophes that might strike at the same time.
March 1, 2006... AS Hurricane Katrina made landfall on Aug. 29, 2005, three earthquakes struck California. Katrina stole the headlines as the single costliest U.S. hurricane ever, while the earthquakes proved to be fairly minor ones. "Just because the wind...

A year of struggles: 2005 wasn't a great year for Hank Greenberg, former CEO of American International Group, but he has plans for the new year.(Property/Casualty: Management)
March 1, 2006... Not only is Maurice R. "Hank" Greenberg unapologetic, he is outraged. "How do you think I feel? How would anybody feel? I've built one of the greatest companies in the world, and to suddenly be threatened by the attorney general;...

Riding for the brand: carriers could learn a few things about loyalty from the Old West.
March 1, 2006... There's an old cowboy saying: "Never ask a barber if you need a haircut." It goes hand-in-hand with: "Never ask an insurance company if you're going to have a loss." In both cases they want to help you with your answer. But if you really...

Study: teen-driver crashes pose greatest threat to passengers.(Brief article)
March 1, 2006... The majority of people killed in teen-driver crashes are people other than the teen drivers themselves, according to a recent study of 10 years of crash data by the AAA Foundation for Traffic Safety. The new analysis of data shows that...

High-tech success: underwriting the technology sector requires a full-time investment.
March 1, 2006... The technology industry thrives on risk-taking and cutting-edge business practices, but that adventuresome spirit shouldn't extend to insurance. Savvy tech companies generally choose carriers that have demonstrated long-term commitment to this...

Something extra: purchasing longevity insurance can extend retirees' financial good life, but the industry has to design the right product first.(\)
March 1, 2006... Retirement financial planning includes provisions for a lifetime stream of income. But, that advice often falls on deaf ears when it comes to selecting the life insurance industry's product designed to accomplish that: an immediate annuity. ...

Taming the cells: automated spreadsheet control can help insurers breeze through regulatory compliance standards.
March 1, 2006... Spreadsheet nightmares come in many forms: After expending hundreds of hours reviewing spreadsheets, an error in one cell is found, or the error is missed and one cell rolls up into a costly problem for your company, or a host of other cell...

Retirement wave: technology aids in addressing the challenge of an aging work force.
March 1, 2006... Insurance companies face a human-capital challenge that's reaching the boiling point. Changing work force demographics underscore the upcoming critical shortage of talent. The largest segment of the working population--baby boomers--will begin...

Are you ready for Solvency II? U.S. insurers doing business in the European Union must begin to prepare for a revolutionary new solvency regime.
March 1, 2006... Solvency II, the comprehensive revision of insurance solvency regulations in the European Union that now is under way, will have far-reaching implications for insurers and reinsurers doing business in member countries. Insurers in the United...

Insurance assurance: premium financing provides both a safety net for insureds and client service for agents and brokers.
March 1, 2006... Did you hear the one about the premium finance company that borrowed funds from itself to pay its insurance premiums? For those who don't quite get it, a premium finance primer is in order. Premium financing is the practice of lending cash...

AIG reaches $1.64 billion settlement with regulators.(American International Group Inc.)(Brief article)
March 1, 2006... American International Group Inc. reached settlements totaling $1.64 billion with federal and state authorities that it says resolved outstanding litigation related to accounting, financial reporting and insurance brokerage practices, as well...

Allstate to begin nonrenewing policies in coastal New York state.(homeowners insurance policies)(Brief article)
March 1, 2006... Allstate Corp. will begin nonrenewing homeowners insurance policies this May in coastal areas of New York, state regulators confirmed. The move comes about a month after Allstate announced it wouldn't be writing any new homeowners business...

Old mutual gains U.K. approval to acquire Sweden's Skandia.(Brief article)
March 1, 2006... Old Mutual Group plc said it gained regulatory approval in the United Kingdom for its planned acquisition of Sweden's Skandia Group. The London-based financial services group also said it boosted the support from among Skandia's...

Zurich unit opens branches in France, Sweden, Finland.(Zurich Financial Services)(Brief article)
March 1, 2006... Zurich Financial Services Group said its European Union risk carrier for global corporate business opened new branches in France, Sweden and Finland as it seeks to expand its corporate business. Zurich Insurance Ireland Ltd., the carrier...

AssuranceAmerica acquires assets of Florida no-fault agency.(No-Fault Insurance Agency)(Brief article)
March 1, 2006... Nonstandard automobile insurer AssuranceAmerica Corp. has acquired the assets of Tampa No-Fault Insurance Agency, the company said. Tampa No-Fault is a retail insurance agency in Tampa, Fla., that produces more than $3 million in annual...

Broker-backed 'mountains': brokers and insurers backed the making of such Golden Globe winners as Brokeback Mountain.
March 1, 2006... From insuring the horses and carriages of Pride & Prejudice to covering the special risks associated with shooting a film in Kenya, insurers helped support movies and television shows nominated for the 2006 Gold en Globe awards. While...