Best's Review articles from May 2006

Best's Review archives from May 2006

Making 1 + 1 = 1.(making mergers and acquisitions easier with technology)(Editorial)
May 1, 2006... Putting together two information technology systems and getting them to work efficiently is difficult for any company involved in a merger or acquisition. It's particularly difficult for the information-intensive business of insurance. "For one...

2006 'Trading Season' in full swing.(Comment)(Editorial)
May 1, 2006... There are only a limited number of new accounts available in the world of high quality, low risk--preferred--auto business. Sure, people move into an area, some people achieve preferred status, and some new drivers come along, but since the...

Quote/unquote *.(Comment)
May 1, 2006... "The pensions regime in the U.K. is made of fairly complicated layers that have accumulated over many years." Billy Mackay Pensions Marketing Manager Skandia U.K. "If the virus [avian influenza] makes the jump from...

Clarification.(Comment)(Correction notice)
May 1, 2006... The hurricane that struck New England in 1938 was likely a Category 5 hurricane days before it struck Long Island and Connecticut, according to the National Hurricane Center. A question on the "Are You a Master of Disaster" quiz in the March...

Despite market uncertainty, 2005 sales of equity-indexed annuities set a record.(Briefing)
May 1, 2006... Despite uncertainty in the equity-indexed annuity market, triggered by the National Association of Securities Dealers' notice to member broker-dealer firms last August, sales for the product in 2005 reached record highs. Meanwhile, Iowa's...

NAIC nears goal of creating interstate compact.(Briefing)(National Association of Insurance Commissioners)(Brief article)
May 1, 2006... The National Association of Insurance Commissioners is close to creating an interstate compact to streamline and unify insurance regulation across the United States. Kentucky and Oklahoma recently became the 22nd and 23rd members of the...

Earthquake losses reported.(100 YEARS AGO in BEST'S REVIEW)(Brief article)
May 1, 2006... The May 1906 issue of Best's Review provided more coverage on the Great San Francisco Earthquake and Fire of 1906. In regard to the question of whether or not damage was due to the earthquake or fire, the magazine clarified a section of...

NAIC recognizes A.M. Best Co. as NRSRO.(Briefing)(National Association of Insurance Commissioners)(Nationally Recognized Statistical Rating Organizations)
May 1, 2006... A task force of the National Association of Insurance Commissioners has approved the addition of A.M. Best Co. to the NAIC's list of Nationally Recognized Statistical Rating Organizations at the group's Spring National Meeting. In March...

Federal charter supporters willing to pay the price.(Briefing)
May 1, 2006... Insurers that favor optional federal charter legislation are willing to bear the cost of two separate layers of taxes, assessments and fees if it brings about regulatory uniformity, representatives of both life and property/casualty trade...

2005 insured losses set second record.(hurricanes )
May 1, 2006... Last year's record-breaking hurricane season is responsible for the highest total of insured losses from natural catastrophes in the United States for the second consecutive year. Hurricanes Dennis, Katrina, Rita and Wilma generated insured...

Distribution of insured losses by Peril--1950-2005.(By the Numbers)
May 1, 2006... Distribution of Insured Losses by Peril--1950-2005 ($259 Billion) Earthquake, Eruptions 9% Flood 2% Tropical Cyclone 70% Thunderstorm 10% Winter Storm 6% Other ...

Number of loss events worldwide--2005.(By the Numbers)
May 1, 2006... Number of Loss Events Worldwide--2005 Earthquake, Eruption Wind Flood Other Africa 44 The Americas ...

Significant U.S. Natural Catastrophes, 1950-2005.(By the Numbers)(Statistical table)
May 1, 2006... Significant U.S Natural Catastrophes, 1950-2005 Number of events and estimated losses (2005 values) per decade. Decade Number Economic Insured Of Events Losses Losses 1950-59 ...

Meetings.(Briefing)(Calendar)
May 1, 2006... May 10-13 National Association of Independent Insurance Adjusters: 68th Annual Conference, Rosen Center, Orlando, Fla. Phone: (630) 397-5012 www.naiia.com May 11-12 National Council on Compensation Insurance: Annual Issues...

Best insurance stock indices.(Briefing)(Statistical table)(Brief article)
May 1, 2006... Best's Insurance Stock Indices (Dec. 31, 2004 = 1,000.00) Four Weeks Ended April 13, 2006 Percent Change Index Month/ Year to Year/ ...

Southern storm front spins out more tornadoes.(State Farm Mutual Automobile Insurance Co.)(Brief article)
May 1, 2006... Severe storms and deadly tornadoes recently ripped across Tennessee and several other southern states, leaving a path of destruction that included thousands of cars and homes. State Farm Insurance Cos. Spokeswoman Crystal Loveridge said as...

Surety insurers recapture profitability.(Briefing)
May 1, 2006... The surety industry has seen a drastic reduction in loss ratio in recent years due mainly to disciplined credit pricing and underwriting effort that began in late 2001 with the commercial surety segment and the contractor segment in 2004 and...

A.M. best stock indices, first quarter 2006.(Briefing)(Statistical table)
May 1, 2006... A.M. Best Stock Indices, First Quarter 2006 (Dec. 31, 2004 = 1,000.00) Index Summary Quarter Ended 3/31/06 Percent Change Index Qtr/...

AXA UK group chief executive Dennis Holt is set to retire June 30.(Life)(Brief article)
May 1, 2006... AXA UK group chief executive DENNIS HOLT is set to retire June 30. NICOLAS MOREAU has been named group chief executive of Axa UK and nonexecutive chairman of Axa Investment Managers, effective the same day. DOMINIQUE CARREL-BILLIARD has...

Massmutual Financial Group.(Life)(Massachusetts Mutual Life Insurance Co. appointed William Glavin )(Brief article)
May 1, 2006... MASSMUTUAL FINANCIAL GROUP has named WILLIAM GLAVIN head of the individual insurance group at MASSACHUSETTS MUTUAL LIFE INSURANCE CO. Previously, Glavin was president and chief executive officer of Babson Capital Management LLC. MassMutual...

Renaissancere Holdings Ltd.(Reinsurance)(Mark Wilcox appointed as senior vice president and chief accounting officer)(Brief article)
May 1, 2006... RENAISSANCERE HOLDINGS LTD. has named MARK WILCOX senior vice president and chief accounting officer. Wilcox joined RenaissanceRe in 2003 and most recently was vice president and controller. Before coming to the company, he was with...

Ohio Casualty Insurance Co.(Property/Casualty)(Jerry Mallicoat appointed as senior vice president and chief marketing officer)(Brief article)
May 1, 2006... OHIO CASUALTY INSURANCE CO. has named JERRY MALLICOAT senior vice president and chief marketing officer, effective March 20. Previously, Mallicoat was with Wellpoint Inc., where he was vice president of central region marketing since 2001....

Broker USI appoints senior vice president, information chief.(People in Insurance)(USI Holdings Corp. named Stewart H. Gibson)(Brief article)
May 1, 2006... USI Holdings Corp. named Stewart H. Gibson senior vice president and chief information officer March 23. He will be based in USI's corporate headquarters in Briarcliff Manor, N.Y. He will report to Robert Schneider, USI's executive vice...

United America Indemnity Ltd.(Property/Casualty)(Robert Cohen appointed as president and chief executive officer of Penn Independent Corp.)(Brief article)
May 1, 2006... UNITED AMERICA INDEMNITY LTD. has named ROBERT COHEN president and chief executive officer of its subsidiary PENN INDEPENDENT CORP. Cohen has been acting president and CEO since last November.

Argonaut Group Inc.(Property/Casualty)(Robert Ingram III named as senior vice president and chief information officer)(Brief article)
May 1, 2006... ARGONAUT GROUP INC. has named ROBERT INGRAM III senior vice president and chief information officer. Most recently, Ingram was senior vice president for information technology at USAA, and before that he served was a director for IBM.

American Family Insurance.(Property/Casualty)(Vicki Chvala appointed as executive vice president)(Brief article)
May 1, 2006... AMERICAN FAMILY INSURANCE has elected VICKI CHVALA executive vice president. She will be responsible for the company's education, human resources, information services and office administration divisions. Chvala joined the company in...

Alfa Corp. and the Alfa Insurance Group named Herman Watts executive vice president of marketing.(Property/Casualty)
May 1, 2006... ALFA CORP. and the ALFA INSURANCE GROUP named HERMAN WATTS executive vice president of marketing. Watts joined Alfa in 1978 as a district sales manager.

Richard F. Connell has been named senior executive vice president and chief information officer of Selective Insurance Group Inc.(Property/Casualty)(Brief article)
May 1, 2006... RICHARD F. CONNELL has been named senior executive vice president and chief information officer of SELECTIVE INSURANCE GROUP INC. and SELECTIVE INSURANCE COMPANY OF AMERICA. Connell joined Selective in 2000 as executive vice president and...

American International Group Inc.(Property/Casualty)(Olin Wethington and Kevin B. McGinn appointed)(Brief article)
May 1, 2006... AMERICAN INTERNATIONAL GROUP INC. has named OLIN WETHINGTON chairman of AIG companies in China, a newly created position. Most recently, Wethington has held senior positions in the U.S. Treasury Department, including Special Envoy on China...

Guy Carpenter & Co.(Agent/Broker)(Hugh Powell appointed as new chief executive officer)(Brief article)
May 1, 2006... Reinsurance broker GUY CARPENTER & CO. has appointed HUGH POWELL its new chief executive officer for Latin America and the Caribbean region. Powell helped start Guy Carpenter's offices in Santiago, Chile; Buenos Aires, Argentina; and Rio...

USI Holdings Corp.(Agent/Broker)(Philip Larson III named as senior vice president of operations)(Brief article)
May 1, 2006... Commercial insurance broker USI HOLDINGS CORP. has named PHILIP LARSON III senior vice president of operations. Before joining USI, Larson was a partner with Capital Z Financial Services Partners.

Ace USA.(Agent/Broker)(Gary Hightower named as senior vice president and national sales executive of Ace Global Solutions)(Brief article)
May 1, 2006... ACE USA has named GARY HIGHTOWER senior vice president and national sales executive of ACE GLOBAL SOLUTIONS. Hightower will be based in Dallas and will be responsible for leading the sales, marketing and distribution management initiatives...

Pru's linked ad draws site clicks.(Prudential Financial Inc. targets retirees)(Brief article)
May 1, 2006... PRUDENTIAL FINANCIAL tapped into the attention surrounding the Super Bowl to target consumers either approaching or already in retirement with its Retirement Red Zone campaign. Stephen Larkin, vice president of brand development, said Pru's...

Living it up.(Hartford Financial Services Group Inc.)(Brief article)
May 1, 2006... HARTFORD FINANCIAL'S new advertising campaign showcases how people should view their retirement as they live longer, healthier and, in the case of baby boomers, differently from their parents' generation. Hartford is debuting two commercials in...

The trusted choice agency brand program will show up on television, Internet and print advertising from May through July.(Brief article)
May 1, 2006... THE TRUSTED CHOICE AGENCY BRAND PROGRAM will show up on television, Internet and print advertising from May through July. This latest marketing push is to continue to establish Trusted Choice as the national brand identity for independent...

Indexed products.(SPOTLIGHT)(Brief article)
May 1, 2006... Equity-indexed life insurance sales last year totaled $185.7 million, a 50% increase over 2004 and double the sales of 2003, according to Sheryl Moore, president of Advantage Group Associates. At year-end, 20 carriers offered the product, up...

New version of all-risk policy.(Affiliated FM Insurance Co., proVision)(Brief article)
May 1, 2006... Affiliated FM, which specializes in commercial property insurance for the middle market and loss-prevention services, has released an enhanced version of its all-risk policy, proVision. Key enhancements include a combined...

LTC policy has dual-pool effect.(long term care)(Brief article)
May 1, 2006... Securian Financial Group has launched LTC Guard, a long-term-care insurance product available through Minnesota Life that offers a benefit pool for home care and another for assisted-living or nursing-home care. The home-care pool reimburses...

Annuity offers medical option.(Protective Life Corp.'s Protective ProPayer Income Annuity)(Brief article)
May 1, 2006... A new immediate annuity from Protective Life, Protective ProPayer Income Annuity, offers prospects the option of medical underwriting. The option would enable people who have certain medical conditions, including a history of heart attacks,...

Golden rule sells short-term policy.(Short Term Medical)(Brief article)
May 1, 2006... Golden Rule Insurance Co., a UnitedHealthcare company, has launched Short Term Medical, its latest plan to fill in gaps in coverage for individuals and families in times of transition and change. Buyers may choose from one to six months of...

Why consumers put annuities into qualified plans.(Table)(Brief article)
May 1, 2006... Guaranteed Lifetime Income 61% Retirement Security 59% Peace of Mind 51% Insurance Protection 50% Investment Growth Potential 42% Convenience 16% Other ...

Best's rating changes.(Ratings)(Table)
May 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...

Connecting ... merging insurers have found new ways to coax disparate information systems to communicate.(Technology)
May 1, 2006... If you ever thought putting two things together was difficult, try merging a 4,000-plus staff, more than 600 applications, and offices and facilities in nearly 90 locations spanning the globe. Then try doing it in less than a year. Sounds...

A spoonful of sugar: variable life insurance had another rough year in 2005 with sales down slightly, but companies offering product guarantees saw gains.(Life)
May 1, 2006... Nationwide Financial, like all writers of variable universal-life insurance, faced a big problem after the 2000-to-2003 bear market made people afraid to buy the product. This January, the company took a major step toward making prospective...

Saving the retirement myth: creative life insurers can gain business as traditional pensions dry up.(Life)(Column)
May 1, 2006... The check is in the mail... sure it is! How many times has this promise proved false? Well, get ready, because just as about 60 million of us prepare for an extended retirement, this promise is being broken in a very big way. After almost...

As the dust settles: initial confusion surrounding the Medicare Part D prescription drug program is fading as health plans reach out to seniors about benefits and cost savings.(Prescription Drugs)
May 1, 2006... After Florence Bryan of Winchester, Va., enrolled in Medicare when she retired in July 2005, the onslaught of prescription drug costs took a toll. "I had to go back to work part time because either you get your prescriptions or groceries--not...

Financial pioneers: the Gramm-Leach-Bliley generation of insurers and associations leads the way into banking for the health savings accounts newcomers.(Regulatory/Law)
May 1, 2006... Since the passage of the Gramm-Leach-Bliley Act of 1999, various insurers and insurance associations have blazed trails into the banking industry, seizing the parts of the business that worked for them and adapting practices to suit their...

Forgoing the 'usual suspects': cargo and hull insurers can pursue alternate recovery routes when maritime disasters strike.(regulatory law)(Column)
May 1, 2006... When extensive cargo losses are caused by a sinking, fire or other casualty, the maritime equivalent of "rounding up the usual suspects" generally entails prosecuting a claim against the vessel and its owner. Unfortunately, this narrow approach...

After Vioxx: the national focus on the Merck & Co. trials is calling attention to product liability insurance and its future with large drug manufacturers.
May 1, 2006... In April, jurors in the latest Vioxx trial in Atlantic City, N.J., delivered a split decision. One plaintiff emerged victorious with a $13.5 million award, including $9 million in punitive damages. The second plaintiff received what amounted to...

To golf, or not to golf? It's wiser to prepare for a soft market than just ride it out.(ways to cope poor market conditions)(Column)
May 1, 2006... I began my insurance career in the spring of 1988 as an underwriting trainee for a national company. During my first week, the president of our company was to visit our Philadelphia branch office. Incidentally, the two events were not related....

New ventures, new vehicles: a number of reinsurers have found innovative ways to team up with hedge funds and other investors to tap into fresh capacity while taking some risk off their books.(Reinsurance/Capital Markets)
May 1, 2006... Although the idea's been around for a while, early successes and changes in the market have spurred a recent upsurge in the creation of new affiliated reinsurance companies, fueled by fresh capital, but still dependent on the sponsor for...

Next messaging: insurers are exploring the newest avenues of cyberspace.
May 1, 2006... Ready or not, the world of insurance marketing has entered cyberspace. Since insurers began putting their marketing messages on the Internet, a new world has opened up for the industry: one full of podcasts, e-mail blasts, blogs, text messaging...

Anticipating tomorrow today: clients value a partner whose advice can trigger epiphanies in which risk management solutions reveal themselves.
May 1, 2006... Savvy professionals know that insurance is not just about selling products and settling claims. Risk managers and chief financial officers look to members of our industry for solutions to the evolving challenges they face as they guide their...

Linking for fewer losses: insurers need integrated data to prepare for the changing nature of catastrophic loss.(disaster planning)
May 1, 2006... The numbers are already all too familiar: In 2005, Hurricane Katrina rang up between $38 billion and $55 billion in insured property losses spread mostly across homeowners, commercial property, business interruption, and marine and energy...

Technology talent management: savvy business leaders must develop strategies to keep IT talent.
May 1, 2006... There continues to be growing demand for top global technology talent, especially information technology leadership with strong general management skills and select IT specialists. Talent is increasingly recognized as a key competitive...

Insurers raise uniformity concerns about house data-security bill.(Financial Data Protection Act)
May 1, 2006... Insurers are raising questions about jurisdictional uniformity after a U.S. House panel approved legislation that would establish new federal data-security standards for the financial services industry. The data-security bill sponsored by...

Aetna.(Brief article)
May 1, 2006... Aetna announced an enhancement to its suite of consumer tools and information that will allow members to track and manage their health-care expenses. Members can download their claims information to their personal computer via Aetna Navigator,...

Insight Insurance Services Inc.(Tech Bytes)(Brief article)
May 1, 2006... Insight Insurance Services Inc. launched an upgraded and redesigned Web site that will enable independent agents to interact easily and quickly with Insight and better serve their clients. With more user-friendly tools, www.insightinsurance.com...

ISO and the National Insurance Crime Bureau.(International Organization for Standardization)(Brief article)
May 1, 2006... ISO and the National Insurance Crime Bureau are collaborating to develop new antifraud tools for insurers' special investigations unit. A new SIU Case Manager platform integrating many functions associated with managing underwriting and claim...

The National Association of Mutual Insurance Cos.(new publications released)(Brief article)
May 1, 2006... The National Association of Mutual Insurance Cos. has released two new online technical publications for farm underwriting and loss prevention--the "2006 NAMIC Farm Underwriting Guide" and the "2006 NAMIC Farm Inspection and Loss Prevention...

Designations, designators and degrees: insurance professionals and aspiring professionals have opportunities to increase their knowledge of the industry through classes leading to an insurance designation and programs leading to a degree.
May 1, 2006... Insurance Professional Designations Accredited Estate Planner Accredited Adviser in Insurance (AAI) Description: Earning this designation helps producers to increase commissions, improve insurance knowledge, avoid errors and...

Organizations that award designations.(Directory)
May 1, 2006... Advisors Certification Services 8657 Douglas Avenue, Suite 385 Des Moines, Iowa 50322 Phone: (866) 299-8368 Fax: (641) 755-4034 www.annuityadvisor.org caa@annuityadvisor.org America's Health Insurance Plans 601...

Programs leading to a bachelor's degree (unless otherwise noted) with an insurance-related major.(designations and degrees)(Directory)
May 1, 2006... Actuarial Science, Concentration in Insurance Drake University Number of students: 130 majors, 70 with insurance concentration Number of faculty: 5-8 Administrator: Randall Blum 2507 University Avenue Des Moines, Iowa...

More storms on the horizon: record hurricane losses are the costliest--but not the only--problems facing energy insurers.
May 1, 2006... Times are turbulent for energy insurers. A string of emerging risks threatens global energy markets: two straight years of devastating hurricanes in the Gulf of Mexico; natural gas disputes in Eastern Europe; civil unrest in Nigeria. The...

Before the flood: agents need to advise insureds that someday a hard rain could befall them.(flood insurance)
May 1, 2006... With the flood damage wrought by the 2005 hurricane season still fresh in the minds of many Americans, insurance agents can remind their clients that--no matter how safe their neighborhoods may appear--everyone lives in a flood zone. While...

Small businesses face employment risks.(Survey)
May 1, 2006... While 90% of small-business owners said employment practice liability was an important coverage, only half said they would consider such a policy when comparing two policies, one with EPLI and one without, according to a survey by Hartford...

Private companies may face increased liability.(Survey)
May 1, 2006... Private companies that take actions common among their public company peers faced increased liability exposure, according to Chubb & Son. "Many private companies are planning activities that may increase their exposure to management...

A new kind of hedge: life insurance can be a valuable tool for baby boomers caring for spouses, children and aging parents.
May 1, 2006... Whoever said 60 is the new 40 should probably think about life insurance. The idea that we progress neatly through categorized life stages--single, married, full nest, empty nest, pre-retired, retired, sole survivor--is passe. Now, retirees are...

Hamilton bound: the flow of capital to Bermuda makes London take notice.(Bermuda Market)
May 1, 2006... The London insurance market of late is treating Bermuda less like the one to beat, and more like the place to be. A now-familiar post-catastrophe theme--the flow of capacity into Bermuda--has London players taking more notice than usual as...

Aetna completes $160m buy of Broadspire disability book.(Brief article)
May 1, 2006... Aetna Inc. said it completed its roughly $160 million acquisition of the disability business of Broadspire Services, a privately held company that provides disability and casualty claim management services. Broadspire's disability business...

21st Century Holding Co. to write through Republic Cos.(Brief article)
May 1, 2006... Florida regulators have approved an agreement that would allow a unit of 21st Century Holding Co. to write business through members of the Republic Companies Group. The agreement allows 21st Century's American Vehicle Insurance Co. to...

Lincoln and Jefferson-Pilot complete merger.(Lincoln National Corp.)(Brief article)
May 1, 2006... Lincoln National Corp. completed its merger with Jefferson-Pilot Corp. on April 3. The merged company, operating under the brand name Lincoln Financial Group, continues to be listed on the New York Stock Exchange as "LNC." Lincoln National...

Hurricanes drive Lloyd's to 103 million [pounds sterling] loss.(Companies)
May 1, 2006... Citing the effects of last year's hurricanes, Lloyd's posted a 2005 pretax loss of 103 million [pounds sterling] (about $180.5 million), compared with a profit of 1.36 billion [pounds sterling] (about $2.38 billion) in 2004. Lloyd's...

Hiscox launches N.Y.-based specialty underwriting unit.(Companies)(Brief article)
May 1, 2006... Lloyd's insurer Hiscox plc is continuing its aggressive expansion into the U.S. market with the opening of a New York-based underwriting operation targeting specialty lines. Just three months after launching a Bermuda insurer/reinsurer that...

Insurance Australia completes tender offer for Thai insurer.
May 1, 2006... Insurance Australia Group Ltd. said it completed a tender offer for a Thailand-based general insurer that gives the Australian group a significant market position in Thai motor insurance. Through NHCT Ltd., IAG's Thai investment holding...

ESG Re to exit reinsurance, focus on direct marketing.(Brief article)
May 1, 2006... Special-risks reinsurer ESG Re Ltd. said it would exit the traditional reinsurance business and concentrate on its direct marketing, citing the capital requirements under Ireland's proposed reinsurance regulations. ESG Re, which provides...

Norway's Storebrand returns to property/casualty market.(Companies)(Brief article)
May 1, 2006... Nearly two years after selling its stake in a property/casualty joint venture and proclaiming life insurance and savings its core businesses, Norway's Storebrand ASA is jumping back into the nonlife market. Storebrand said its board...

United we stand: 'Cover the Uninsured Week' will bring together a variety of supporters across the United States in the fight against the nation's uninsured problem.(The Last Word)
May 1, 2006... Thousands of national and local organizations across the country are uniting this month in support of the nearly 46 million Americans without health insurance coverage. America's uninsured come from all walks of life, including more than 8...