Best's Review articles from March 2007

Best's Review archives from March 2007

How sales can soar.(Bill Girone of Securian Financial Network opines on marketing life insurance products)(Editorial)
March 1, 2007... Selling life insurance products has never been easy. "The first thing I would tell anybody [who wants to be a life producer] is to recognize we sell a product that nobody wants," said Bill Girone, regional vice president, External Life Sales,...

Agree, yet disagree.(a critical evaluation of Bruce Ferguson's assessment of the work on the NAIC Viatical Settlements Model Act, NAIC 2006 Models Could Spark Debate in Legislatures)
March 1, 2007... On behalf of the Life Insurance Finance Association, I would like to agree yet disagree with Bruce Ferguson's assessment of the work on the NAIC Viatical Settlements Model Act. (See "NAIC 2006 Models Could Spark Debate in Legislatures" on page...

Correction.(Comment)(Correction notice)
March 1, 2007... Arkansas Insurance Commissioner Julie Benafield Bowman is serving a four-year term that expires Jan. 15, 2009. Information about her term of office was incorrect in the February issue of Best's Review.

Florida reforms may cause market storm.(Briefing)
March 1, 2007... If the forecasts for more frequent and severe hurricanes hold true, industry experts predict a new Florida property insurance law may be a house of cards that encourages the exit of the private market and opens the state up for legal action by...

Tornadoes hit Central Florida.(Briefing)(Brief article)
March 1, 2007... Representatives and claims adjusters from major writers of homeowners multi-peril in Florida scoured four counties in the central part of the state in order to assess damage from seven tornadoes that struck during the early morning hours of...

Judge knocks down punitives tab in state farm Katrina case.(Briefing)
March 1, 2007... A federal judge who pre-empted jury deliberations in a Hurricane Katrina coverage case by declaring State Farm Fire and Casualty Co. liable for a Mississippi policyholder's home, now has determined that same jury erred when it ordered the...

Bankers life wins important court cases.(100 YEARS AGO in Best's Review)
March 1, 2007... In March 1907, Best's Review (life edition) reported the details of court cases involving Bankers Life Insurance Co. and three policyholders. Three individual suits were filed against the insurer. In each case, the Appellate Division of...

By the numbers.(Briefings)(Different Paths: Individual Life and Annuity Sales)(Statistical table)(Brief article)
March 1, 2007... Different Paths: Individual Life and Annuity Sales As the U.S. life insurance industry experienced profound change over the past 30 years, one of the outgrowths has been a material divergence in the way annuities and life insurance are...

Meetings.(Briefing)(Calendar)
March 1, 2007... March 1-4 National Conference of Insurance Legislators: Spring Meeting, Hyatt Regency Savannah, Savannah, Ga. Phone: (518) 687-0178 Web site: www.ncoil.org March 7-9 14th Annual Dynamics of Disability Seminar: Hyatt Regency Coconut Point,...

NAIC 2006 models could spark debate in legislatures.(Briefing)
March 1, 2007... In the regulatory world, January marks the starting line for model laws of the National Association of Insurance Commissioners that were passed in the previous year. Some of the 2006 bills proposed are sure to raise debate as they hit...

A.M. best's stock indexes.(Briefing)(Statistical table)(Brief article)
March 1, 2007... A.M. Best's Stock Indexes Four Weeks Ended February 15, 2007 (Dec. 31, 2004 = 1,000.00) Percent Change Year ...

Farmers insurance chief auto actuary dies in car accident.(Briefing)(death of John Green)(Obituary)
March 1, 2007... John Green, Farmers Insurance Group's regional vice president of automobile product management and chief auto actuary, died on Feb. 1, of injuries sustained in an auto accident, the company said. Green, 44, joined Farmers as an actuarial...

Satellite insurers facing $256 million loss.(Briefing)(Brief article)
March 1, 2007... The satellite insurance industry is facing a possible loss of $256 million after a rocket carrying a satellite exploded during an attempted launch off the coast of California. The NSS-8 satellite was due to be launched by a Ukrainian Zenit...

Willis Group Holdings Ltd.(Agent/Broker)(Richard Bucknall to retire and David Margrett appointed as chairman at Willis Ltd.)(Brief article)
March 1, 2007... * WILLIS GROUP HOLDINGS LTD. said RICHARD BUCKNALL, vice chairman of the group and chairman and chief executive officer of Willis Ltd., the company's U.K. business unit, will retire March 31. Bucknall has spent 40 years in the insurance...

Brown & Brown Inc.(Agent/Broker)(Kenneth D. Kirk and Kenneth Masters appointed)(Brief article)
March 1, 2007... * BROWN & BROWN INC. has named KENNETH D. KIRK regional president and KENNETH MASTERS regional executive vice president. Kirk was regional executive vice president since 2002. He has also held a variety of positions Brown & Brown. ...

Joe Plumeri, the chairman and chief executive officer of Willis Group Holdings was honored as the 2006 Insurance Leader of the Year.(Agent/Broker)(Brief article)
March 1, 2007... * JOE PLUMERI, the chairman and chief executive officer of WILLIS was honored as the 2006 Insurance Leader of the Year by St. John's University School of Risk Management, Insurance and Actuarial Science at an awards dinner at the Marriott...

Priscilla Brown named to newly created position at Lincoln Financial.(People in Insurance)(Brief article)
March 1, 2007... Lincoln National Corp., parent company of the Lincoln Financial Group of companies, has named Priscilla S. Brown chief brand officer. "Lincoln Financial Group created this new position to drive brand stewardship and support our strategic...

Benfield.(Reinsurance/Capital Markets)(Jeremy Goodman appointed)(Brief article)
March 1, 2007... * BENFIELD has named JEREMY GOODMAN executive vice president. Most recently, Goodman was a board director at Cooper Gay Holdings. His career began in 1986 in London, and relocated to the United States in 1991. Goodman created Cooper Gay's...

Allianz Life Insurance Company of North America.(Life)(Gary C. Bhojwani appointed)(Brief article)
March 1, 2007... * ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA said it named GARY C. BHOJWANI as its new chief executive officer. Bhojwani, 38, replaces Mark Zesbaugh, who Allianz said last month was leaving for "personal reasons." Bhojwani comes to...

Metlife Inc.(Life)(William J. Mullaney appointed at Metropolitan Life Insurance Co.)(William D. Moore appointed at MetLife Auto and Home)(Brief article)
March 1, 2007... * METLIFE INC. has named WILLIAM J. MULLANEY president of MetLife's institutional business segment. Mullaney succeeds Leland C. Launer Jr., who has left MetLife to pursue other opportunities. Recently, Mullaney was president of MetLife Auto...

White Mountains Insurance Group.(Property/Casualty)(Ray Barrette appointed)(Brief article)
March 1, 2007... * RAY BARRETTE is back at the helm of WHITE MOUNTAINS INSURANCE GROUP as chairman and chief executive officer. Barrette, who first joined White Mountains in 1973, is replacing chairman Jack Byrne and Steve Fass, who took over as chief...

XL Capital Ltd.(Property/Casualty)(Frederick R. Loeloff appointed)(Brief article)
March 1, 2007... * XL CAPITAL LTD. has named FREDERICK R. LOELOFF senior vice president of ratings and finance development. Loeloff joined XL Global Services Inc. in July 2003 and was later promoted to deputy chief controls officer. Before joining XL, he...

Harleysville Insurance.(Property/Casualty)(Ronald Gorman and Shelly Diegel appointed)(Brief article)
March 1, 2007... * HARLEYSVILLE INSURANCE has named RONALD GORMAN as regional president of its Mid-Atlantic operation. SHELLY DIEGEL has been named Mid-Atlantic regional vice president of commercial lines business development. Gorman has held various...

Argonaut Group Inc.(Property/Casualty)(Gregory Vezzosi appointed)(Brief article)
March 1, 2007... * ARGONAUT GROUP INC. has named GREGORY VEZZOSI executive vice president and chief operating officer. Before joining Argonaut, Vezzosi was senior vice president of specialty commercial for St. Paul Travelers.

Colleges score with State Farm.(MARKETING)(Brief article)
March 1, 2007... STATE FARM'S red and white logo is hanging from basketball hoop stanchions in more than 40 U.S. colleges as a part of its new "Basket Profile" program. The nation's largest personal-lines insurer signed the three-year deal with ANC Sports...

Hip hop message.(Nationwide financial inc. signs contract with Kevin federline)(Brief article)
March 1, 2007... NATIONWIDE FINANCIAL INC. tapped Kevin Federline, rapper and husband of Britney Spears, to star in its latest Super Bowl commercial. The spot is the latest in Nationwide's "Life Comes at You Fast" campaign, which pokes fun at celebrity...

MetLife.(BRANDING)(contract)(Metropolitan Life Insurance Co.)(Brief article)
March 1, 2007... METLIFE signed an agreement with United Media to extend its licensing of the Charles Schulz Peanuts characters to every market in the world. The new agreement also gives MetLife exclusive rights in the financial services category to use the...

Living benefits drive sales.(SPOTLIGHT)(Brief article)
March 1, 2007... Consulting and actuarial firm Milliman has reported that guaranteed living benefits continue to drive sales of variable annuities. During calendar year 2005, 87% of VA sales offered a benefit, the same as in 2004, but the figure rose to 69% in...

Liability coverage for providers.(Property/Casualty)(Darwin Professional Underwriters)(Brief article)
March 1, 2007... Darwin Professional Underwriters, a specialty insurance company in Farmington, Conn., has expanded its liability coverage of the network-security and data-privacy losses of health-care organizations. Darwin said its product, Tech/ /404, is now...

MetLife adds ID theft service.(Property/Casualty)
March 1, 2007... MetLife Bank, Warwick, R.I., has added full-service identity-theft resolution assistance to all depositors at no charge. It said it is the first direct bank to provide such services. Personal advocates will assist affected customers with filing...

Longevity benefit built into VA.(Life)(New York Life Insurance and Annuity Corp. introduces variable annuity )(Brief article)
March 1, 2007... New York Life Insurance and Annuity Corp. has introduced a deferred variable annuity that also provides longevity insurance: a lifetime payout stream that begins at age 75, 80 or 85. At time of purchase, the product also pays a bonus equal to a...

Prudential starts ROP life policy.(Life)(Prudential Financial Inc.)(return of premium)(Brief article)
March 1, 2007... Prudential Financial has introduced a term-life insurance policy that includes a money-back guarantee if the insured lives beyond the policy's level-premium paying period. Terms available are for 15, 20 or 30 years. The company will provide...

Lifetime income on annuities.(Life)(Lincoln Benefit Life Co.)(Brief article)
March 1, 2007... Lincoln Benefit Life Co., part of the Allstate Group, is now offering a lifetime income benefit without charge on most existing Saver's Index Annuity Plus and Saver's Index Annuity Premier products. The feature promises an annual payment to a...

By the numbers: Americans and retirement.(Brief article)(Statistical data)
March 1, 2007... SNAPSHOT By the Numbers: Americans and Retirement $696 Average saved for retirement by U.S. workers a month 30 Average age U.S. workers begin to save 58 Average age at which U.S. workers retired, but...

Best's rating changes.(Ratings)(Table)(Company rankings)
March 1, 2007... 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...

Making the leap: for these life producers, getting to the top required a major increase in sales, determination and skill.(Ted Welch of Guardian Life, Gary DiCresce of Axa Financial Group, Nick and Marc Ostdiek of Signature Resources, Ellen Singer of Northwestern Mutual Group, Marc Jacobson of Marc Jacobson & Associates, )(Interview)
March 1, 2007... What's it take to reach the top in sales in today's life-insurance climate? With so much talent coursing through the industry, Best's Review sought out producers who've recently made a major leap in life sales and asked them how they did it....

Rates under pressure: January renewals hint at a mild downturn for reinsurers in 2007.(Reinsurance/Capital Markets)
March 1, 2007... Following an unexpectedly benign 2006 Atlantic hurricane season, the reinsurance market is facing the new year with slightly more optimism than it might have expected. But the good news that losses were mild carries with it a sense that market...

House calls: health insurers are responding to the demand for online medical consultations.
March 1, 2007... In the midst of a busy Thursday morning, Dr. Braswell Deen, a physician at Deighton Family Medicine and a faculty member on staff at Providence Hospital in Detroit, is consulting with a patient experiencing difficulties associated with his...

The National Association of Mutual Insurance Companies.(Tech Bytes)(introduction of new web site)(Brief article)
March 1, 2007... The National Association of Mutual Insurance Companies unveiled a new Web site (www.climateandinsurance.org) to help address the increasing concerns about climate change and its impact on the property/casualty industry. It contains information...

John Hancock Annuities.(Tech Bytes)(introduction of new web site)(Brief article)
March 1, 2007... John Hancock Annuities launched a new Web site, www.jhannuities.com. The completely redesigned, content-rich site features both retirement and investment education along with interactive tools and expanded services for financial advisers....

WellPoint Inc.(Tech Bytes)(launch of online health assessment in spanish )(Brief article)
March 1, 2007... WellPoint Inc. launched a secure online Health Assessment in Spanish that will enable members to complete a health questionnaire and receive a personalized report with recommendations on how to manage their personal health risks. The Health...

Data security bill loosens notification requirements.(Technology Notes)
March 1, 2007... Insurers and other businesses would be subject to less burdensome data-security notification requirements under the terms of a bill filed by Sen. Dianne Feinstein, D-Calif. The Notification of Risk to Personal Data Act, S. 239, would be a...

Captive Island. Puerto Rico's long-time plan to become a haven for captive insurance companies is becoming a reality.(Property/Casualty)
March 1, 2007... They've done all the paperwork, passed the necessary laws and mapped out a plan for success. Now all that's left for Puerto Rico is the waiting. This tiny island commonwealth has been chasing captive domicile certification--and status as a...

Captive domiciles.(Directory)
March 1, 2007... 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. In some places, the law may permit captives, even...

Even more predictable: ongoing underwriting innovations are improving risk assessment and agent-underwriter relationships.(Property/Casualty)
March 1, 2007... In an industry often seen as lacking the spark of new ideas, leading insurance companies are moving rapidly to introduce innovative changes to traditional underwriting. Insurers began introducing new and different underwriting variables about a...

Selling without pressure: insurance brokers have attracted an underserved segment of Americans to their Web sites for individually underwritten term life insurance by helping them objectively survey the market.(Term Life: Life)
March 1, 2007... Life insurance brokers that prospect through their Web sites and represent many insurers have carved a solid niche in term-life sales over the past decade. Most observers would agree they have changed the way insurance is sold, at least to a...

A recipe for success: it's time to choose known alternatives to costly and slow underwriting.
March 1, 2007... At this writing, I find myself in the midst of preparing for yet another jam session with senior management of a life insurer, now that their attention has been drawn to the Scylla and Charybdis of profitable underwriting: acquisition cost and...

Combo deal: hybrid long-term-care/annuity products are life insurers' newest weapon in their battle for retirement assets.(Long-Term Care: Health/Employee Benefits)
March 1, 2007... Some U.S. life insurers are counting on the tax benefits contained in the Pension Protection Act of 2006 to entice millions of baby boomers nearing retirement to buy annuities with a long-term-care rider. Among the life insurers with a...

The lost promise of long-term care: insurers can repackage the benefits of long-term care into a more sellable product.(Selling Insight: Health/Employee Benefits)(Column)
March 1, 2007... For almost as long as it takes to grow old enough to need long-term-care benefits, long-term-care insurance has offered the promise of lucrative marketing opportunities for both companies and agents. Yet that promise has gone unfulfilled,...

Managing the millennials: high performance and high maintenance, generation Y requires a different type of management.(Agent/Broker)(Column)
March 1, 2007... The difficulty in recruiting experienced producers and account managers has led many agency managers to tap recent college graduates for these jobs. Labeled "Generation Y," these younger workers were born after 1978 and have been filling job...

World-class contender: Lockton Companies' acquisition of the international business of Alexander Forbes has catapulted the private insurance broker into a top global player.(Agent/Broker)(Company overview)
March 1, 2007... Jack Lockton couldn't have envisioned in 1966 his basement operation in Kansas City, Mo., doing business as far away as St. Louis--just 250 miles away--let alone in Kuala Lumpur, Malaysia, which is among the many places around the world where...

Unleashing the power: a streamlined approach to data warehousing enables insurers to use claims data as a competitive advantage.(Technology)
March 1, 2007... Many senior leaders at insurance companies have tried with varying success to unleash the power of data with major information-technology investment and long, complicated implementation time lines. Particularly with claims, the losses and...

Extending the reach: social networking could be a tool for insurers to reach out to baby boomers and Gen Xers.(Technology)
March 1, 2007... Carriers are working hard to understand the broad range of demographic cohorts they face in today's insurance marketplace. In addition to the consumers and policyholders arrayed In alphabet demographic groups, companies have to consider similar...

9 ways to share knowledge for gain: actuaries, underwriters, claims adjusters and others have different views of the insurance business. Successful companies will bring together these ideas and the people behind them.(Property/Casualty)
March 1, 2007... The rewards of sharing knowledge across disciplines and departments within property/casualty insurers have been recognized for years, but few have actually achieved the full benefits and positive impacts that are possible in a truly...

Fear and loathing: understanding the insurance policy shouldn't be a casino-style crapshoot for your customer.(Property/Casualty)(Column)
March 1, 2007... A casino has a new game called the Five Million Dollar Contest--the winner gets $5 a year for the next million years, or so the story goes. In reality, neither casino games nor insurance were intended to frighten or confuse the public, but...

Ace: political risk reaches beyond headline violence.(Julian Edwards of Ace Ltd.)
March 1, 2007... Clients for political risk insurance are attuned to the dangers of political violence, but they have been slower to pick up on the threat of expropriation, according to Ace Ltd.'s lead political risk underwriter. Julian Edwards, head of...

Study: securities fraud class-action filings dropped in '06.(Property/Casualty)
March 1, 2007... A report undertaken by Stanford Law School and Cornerstone Research shows the number of securities fraud class-action filings plunged last year, but the U.S. Chamber of Commerce says that drop is only a "temporary blip." The study said...

Have it both ways: commercial lines insurers must offer agents the choice of uploading new business from their agency management systems as well as submitting applications through the carrier's Web site.(Agent/Broker)
March 1, 2007... The road to straight-through processing in commercial lines is becoming clearer as carriers extend more of their policy systems' functions to agents via the Web. But there are still roadblocks to overcome before the industry reaches maximum...

Southern hospitality: Brazil cracks open its reinsurance market.(Reinsurance/Capital Markets)
March 1, 2007... Over the years the Brazilian reinsurance market has rather resembled an armadillo, constantly hinting at opening itself up to cautious movement, only to retreat back into an unmoving protectionist shell. Now, after years of equivocation,...

Keeping your options open: directors and officers insurance can play a central role in a company's response to investigations into backdated stock options.
March 1, 2007... Backdating stock options is drawing a great deal of attention from state and federal regulators and from the plaintiffs class-action bar. The Securities and Exchange Commission is currently investigating more than 100 companies for backdating...

Expanding the family: birth of a Lloyd's syndicate is labor intensive.(Property/Casualty)(Bank of America Corp.)
March 1, 2007... Bank of America's announcement that it is establishing a Lloyd's syndicate, may be evidence the three-century-old market is open to new business. But while Lloyd's welcomes new capital, the entry process for new underwriters remains rigorous....

For the long haul: understanding the regulations surrounding long-term-care insurance is the first step to successfully selling it.(Regulatory/Law)
March 1, 2007... No doubt about it--Americans are getting older. Today, more than 34 million people are over age 65; by 2030, one in every five people will be over 65. Along with aging comes increasing awareness of the need for long-term-care insurance, which...

Marsh & McLennan Cos. has agreed to sell Putnam Investments to Great-West LifeCo INC.(Agent/Broker)(Brief article)
March 1, 2007... MARSH & MCLENNAN COS. has agreed to sell PUTNAM INVESTMENTS to GREAT-WEST LIFECO INC., a financial services holding company controlled by Canada's POWER FINANCIAL CORP., for $3.9 billion in cash.

USI Holdings Corp.(Agent/Broker)(mergers and acquisitions)(Brief article)
March 1, 2007... The private equity arm of Goldman Sachs & Co. is acquiring insurance broker USI HOLDINGS CORP. in a transaction valued at 710.92 million [pounds sterling] (about $1.4 billion). The transaction, which is expected to close in the second quarter...

Swett & Crawford, the largest U.S.-based wholesale insurance broker, has acquired New Jersey-based Oxbridge Insurance Associates Inc.(Agent/Broker)
March 1, 2007... SWETT & CRAWFORD, the largest U.S.-based wholesale insurance broker, has acquired New Jersey-based OXBRIDGE INSURANCE ASSOCIATES INC., a property and casualty wholesale broker and managing general agent, for undisclosed terms.

Watkins Insurance Group has acquired Texas-based insurance agency AIC-Sun Belt Group for an undisclosed amount.(Agent/Broker)(Brief article)
March 1, 2007... WATKINS INSURANCE GROUP has acquired Texas-based insurance agency AIC-SUN BELT GROUP for an undisclosed amount. The terms of the transaction were not disclosed. Watkins said it is now the largest privately held, locally owned insurance agency...

Dutch insurer Aegon N.V. will team up with Sony Life Insurance Co. Ltd. to launch a Japanese life insurer with an eye on the annuity sector.(Life)(Brief article)
March 1, 2007... Dutch insurer AEGON N.V. will team up with SONY LIFE INSURANCE CO. LTD. to launch a Japanese life insurer with an eye on the annuity sector. The new insurer, a joint venture owned equally by Aegon and Sony, will start operations early in 2008....

Axa Equitable Life Insurance Co. and its parent company have launched a new group to provide consultative services to Axa-related companies.(Life)(AXA GLOBAL SUB-ADVISORY GROUP)(Brief article)
March 1, 2007... AXA EQUITABLE LIFE INSURANCE CO. and its parent company have launched a new group to provide consultative services to Axa-related companies. The new entity, AXA GLOBAL SUB-ADVISORY GROUP, will leverage the best practices of the company's...

London-based Atrium Underwriting is getting involved in the space insurance industry with the creation of a specialist subsidiary.(Property/Casualty)(Brief article)
March 1, 2007... London-based ATRIUM UNDERWRITING is getting involved in the space insurance industry with the creation of a specialist subsidiary. ATRIUM INSURANCE AGENCY LTD. will write space insurance from the end of January on behalf of a number of...

Specialty Underwriters' Alliance Inc., the parent company of SUA Insurance Co., will begin offering small employers workers' compensation through its wholesale partner agent, Appalachian Underwriters.(Workers' Compensation)(Brief article)
March 1, 2007... SPECIALTY UNDERWRITERS' ALLIANCE INC., the parent company of SUA INSURANCE CO., will begin offering small employers workers' compensation through its wholesale partner agent, APPALACHIAN UNDERWRITERS. According to SUA, the program will be...

Northwestern mutual reaches $1 trillion of individual life insurance.(Companies)(Northwestern Mutual Life Insurance Co.)
March 1, 2007... Northwestern Mutual Life Insurance Co. said its life insurance policies in force have reached the $1 trillion mark, which Northwestern said makes the company the first direct provider of life insurance, and the lone mutual company, to reach...

Bald is beautiful: insurance leaders are raising money to fight childhood cancer by shaving their heads on behalf of the St. Baldrick's Foundation.(The Last Word)
March 1, 2007... The first question Chuck Chamness' children asked when they learned their brother Joey, then 8, had bone cancer was "will he lose his hair?" "When you think about it from a kid's perspective--they were all in K to 8--having a kid with no...