Best's Review articles from May 2009

Best's Review archives from May 2009

East versus west.(From the Editor's Desk)(Brief article)
May 1, 2009... The global financial crisis may have caused bancassurance's popularity in Asian markets to hit a bump in the road. However, May's cover story, "Eastern Promises? reports life insurers are still attracted to China's vast banking networks and low...

AIG deal to make farmers no. 3 U.S. auto writer.(Briefing: Highlights From BestWeek)(American Insurance Group Inc.)(Brief article)
May 1, 2009... Farmers Insurance Group would look to overtake both Progressive and Geico to become the third-largest U.S. automobile insurer with news that its Swiss parent Zurich Financial Services is buying American International Group Inc.'s direct and...

Cat bonds show gains.(Briefing: Highlights From BestWeek)(catastrophe bond)(Brief article)
May 1, 2009... The catastrophe bond market not only is weathering the effects of the global financial downturn, but it's blooming this spring, according to a report by Guy Carpenter. The number of cat bonds issued in the first quarter of 2009 was equal...

Worth repeating.(Briefing: Highlights From BestWeek)(The Goldman Sachs Group Inc.)(Financial report)(Brief article)
May 1, 2009... "We didn't make the rules.". --Goldman Sachs spokesman Lucas van Praag, after the company reported December losses of $780 million but didn't post them to either fourth-quarter '08 or first-quarter '09 results. Goldman said by becoming a...

Catastrophe in Italy.(Briefing: Highlights From BestWeek)(Brief article)
May 1, 2009... [ILLUSTRATION OMITTED] Caption: DISASTER SCENE: Insured losses could reach $530 million (400 million [euro]) after a magnitude 6.3 earthquake hit central Italy April 6. The death toll approached 300, more than 10,000 survivors were left...

Turbulence for aviation insurers.(Briefing: Highlights From BestWeek)(Brief article)
May 1, 2009... The airline insurance market faces a challenging 2009, according to broker Aon Corp. The main driver this year, according to Aon, will be how the market responds to the impact of 2008, a year that saw a huge rise mad then sudden fall in...

Charter bill asks dual funding.(Briefing: Highlights From BestWeek)(Brief article)
May 1, 2009... Insurers who opt to be regulated under a proposed federal Office of National Insurance would be asked to pay assessments both to existing state guaranty funds and to a new federal guaranty backstop under legislation before the U.S. House. ...

Despite stock drop, 401(k) holders stay put.(Briefing: Highlights From BestWeek)(Brief article)
May 1, 2009... The drop in equity values as a result of the international economic crisis hasn't created abrupt changes in the behavior of members of 401(k) pension plans, an academic told a London insurance conference last month. [ILLUSTRATION OMITTED]...

Best's Review's stats & numbers.(Briefing: Highlights From BestWeek)(Statistical table)(Brief article)
May 1, 2009... Charter Territory How U.S. agents and brokers generate commissions and fees from policy sales and services... % Commercial lines property/ 36.1 casualty insurance Personal lines property/ 25.7 casualty...

A seeming trend.(Property/Casualty)(Disaster insurance)(Brief article)
May 1, 2009... A SEEMING TREND of ever more extreme weather events is putting such pressure on Australian insurers that insurance may become too expensive for many property owners. Floods, storms, bushfires and other severe weather events accounted for more...

P/C Insurers see 2008 profits shrink.(By the Numbers: Recently published Special Reports from A.M. Best Company)(property and casualty insurance)(Statistical table)(Brief article)
May 1, 2009... The U.S. property/casualty industry was impacted by unprecedented events in 2008. Nevertheless, the industry generated a net profit of approximately $6.1 billion for the year, down significantly from $65.5 billion in 2007. (U.S....

Title insurers' failures mount.(By the Numbers: Recently published Special Reports from A.M. Best Company)(Brief article)
May 1, 2009... Casualties of the real estate boom and bust of the past five years, four title insurers helped drive up the number of property/casualty financial impairments to seven in 2008 from five the previous year. (Real Estate's Title Insurers Lead 2008...

Meetings.(Briefing)(Calendar)
May 1, 2009... May 6-7 National Conference of Insurance Guaranty Funds: Annual Meeting, Oklahoma City. Web site: www.ncigf.org May 6-8 AIDA Reinsurance & Insurance Arbitration Society: ARIAS Spring Conference, Palm Beach, Fla. Web site:...

Tracking the stocks of global insurers and brokers.(Briefing: Stock Watch)(Statistical table)
May 1, 2009... As of the U.S. market close on Thursday, April 9, A.M. Best's Global Insurance Composite Index was 605.54, down 15.62% year-to-date. The A.M. Best stock indexes cover 188 publicly traded insurance companies and brokers. Year-over-year the...

Some reinsurers net double-digit gains in April renewals.(Briefing: Stock Watch)(Brief article)
May 1, 2009... Reinsurance is holding up under the pressure of global financial turmoil better than other financial markets. And based on April renewals, brokers see good prospects for reinsurers, provided both the economy and the weather cooperate. "The...

Insurance jobs.(Briefing: Employment)(Statistical table)
May 1, 2009... The U.S. insurance industry shed jobs for the fifth straight month, falling by 2,100 positions, even as nonfarm payrolls fell for the 15th consecutive month, according to seasonally adjusted data released April 3 by the U.S. Bureau of Labor...

Question: How should an executive best conduct a job search in today's challenging market?(Career wise)
May 1, 2009... The job market for executives has certainly become more challenging during these difficult economic times. Therefore, an executive seeking a new position in this market must have a focused, proactive, and disciplined approach for his or her job...

Seacrest Partners Inc.(Agent/Broker)(appointment of J. Cliff Mccurry)(Brief article)
May 1, 2009... J. CLIFF MCCURRY has joined Savannah, Ga.-based insurance brokerage SEACREST PARTNERS INC. as vice chairman. A 38-year veteran of the insurance business, McCurry was most recently the head of the Savannah, Ga., offices of Willis HRH. ...

Starkweather & Shepley Insurance Brokerage Inc.(Agent/Broker)(appointment of Andrew Fotopulos)(Brief article)
May 1, 2009... STARKWEATHER & SHEPLEY INSURANCE BROKERAGE INC. has named ANDREW FOTOPULOS senior vice president. He will lead the company's new financial institutional risk. [ILLUSTRATION OMITTED] Fotopulos comes most recently from Boston-based...

Axa Equitable Life Insurance Co.(Life)(appointments of )(Brief article)
May 1, 2009... AXA EQUITABLE LIFE INSURANCE CO. has named three new senior vice presidents--VINCENT COHAN, DAVID KAHAL and SUZANNE VAN STAVEREN [ILLUSTRATION OMITTED] Cohan takes up the post of senior vice president and chief technology officer for...

National Life Group.(Life)(appointments of Gregory D. Woodworth and Vincent G. Vitiello)(Brief article)
May 1, 2009... NATIONAL LIFE GROUP has named GREGORY D. WOODWORTH senior vice president and general counsel. Woodworth has been with the Montpelier, Vt.-based insurance group since 2006. [ILLUSTRATION OMITTED] Joining National Life as a vice...

Hartford Financial Services Group Inc.(Life)(appointment of Mark Esposito)(Brief article)
May 1, 2009... HARTFORD FINANCIAL SERVICES GROUP INC. has named MARK ESPOSITO chief information officer for life operations. Esposito served as the acting chief information officer since October 2008. He joined Hartford in February 2006 after a 20-year...

First Ameritas Life Insurance Corp.(Life)(appointment of Kenneth L. Vancleave)(Brief article)
May 1, 2009... KENNETH L. VANCLEAVE became president and chief executive officer of FIRST AMERITAS LIFE INSURANCE CORP. OF NEW YORK. He replaced MITCH POLITZER, who recently retired and served as president and CEO since 1999. VanCleave joined Ameritas...

QBE names John Rumpler CEO for Americas division.(People in Insurance)(QBE Insurance Group Ltd. appointed John Rumpler)(Brief article)
May 1, 2009... Australian insurance and reinsurance company QBE said it appointed John Rumpler chief executive officer of its Americas division, taking office at the company's New York headquarters in June. [ILLUSTRATION OMITTED] Rumpler currently is...

Mutual Trust Financial Group.(Life)(appointment of Ed Hughes)(Brief article)
May 1, 2009... MUTUAL TRUST FINANCIAL GROUP has named ED HUGHES senior vice president of sales and marketing. Hughes, who has more than 30 years of experience in the life insurance industry, comes to Mutual Trust from North American Company for Life and...

Harleysville Insurance.(Property/Casualty)(appointment of Kevin Toth)(Brief article)
May 1, 2009... HARLEYSVILLE INSURANCE has named KEVIN TOTH senior vice president and chief underwriting officer. Toth will be in charge of the company's commercial lines underwriting and product development operations. [ILLUSTRATION OMITTED] A...

RLI Corp.(Property/Casualty)(appointment of Craig T. Kliethermes)(Brief article)
May 1, 2009... RLI CORP. has named CRAIG T. KLIETHERMES senior vice president for risk services. Kliethermes, a 20-year veteran of insurance, has been with RLI since 2006, when he joined as vice president for actuarial and risk services.

W.R. Berkley Corp.(Property/Casualty)(appointment of Douglass E. Pfeifer)(Brief article)
May 1, 2009... W.R. BERKLEY CORP. has named DOUGLASS E. PFEIFER as the president of Riverport Insurance Co. Pfeifer, a 29-year veteran of the insurance industry, succeeds KENNETH HOPKINS, who will stay in his positions on Riverport's board of directors...

Starr Indemnity & Liability Co.(Property/Casualty)(appointment of Charles H. Dangelo)(Brief article)
May 1, 2009... STARR INDEMNITY & LIABILITY CO. has named CHARLES H. DANGELO, the former president and chief reinsurance officer of AIG's global risk management division, as president and chief executive officer.

Everest Re Group Ltd.(Reinsurance/Capital Markets)(appointment of Mark Herman)(Brief article)
May 1, 2009... EVEREST RE GROUP LTD. has named MARK HERMAN as the president of Everest Specialty Underwriters. Herman is set to take up his post with Everest Re's newly created professional lines markets division in New York, which focuses on directors...

Northwestern Mutual Life elects chairman and president.(People in Insurance)(appointments of )(Brief article)
May 1, 2009... Edward J. Zore has been elected chairman by the board of trustees of Northwestern Mutual Life Insurance Co. effective March 31. He will become the company's seventh chairman. [ILLUSTRATION OMITTED] The board also elected John E....

Communicate in a tough economy.(MARKETING)(Brief article)
May 1, 2009... FINDING MONEY FOR advertising and promotion is easy when times are great, but when the economy goes south, marketing dollars are often the first cut. But smart managers understand that a recession is not the time to turn timid about investing...

Cougar strikes again.(SPECIALTY INSURANCE)(Hagerty Collector Car and Boat Insurance)(Brief article)
May 1, 2009... [ILLUSTRATION OMITTED] SPECIALTY INSURER HAGERTY INSURANCE AGENCY recently unveiled the newest installment of its "Cougar" ad campaign. The objective of the ad is to connect with "car guys" through humor and entertainment and to create...

Confused.com, a United Kingdom.(ADVERTISING)(Brief article)
May 1, 2009... CONFUSED.COM, A UNITED KINGDOM insurance and energy comparison Web site, recently launched a new advertising campaign designed to introduce customers to its new site. The campaign uses real people who have recorded their own reviews of...

2008 LTC sales dropped 7%.(SPOTLIGHT)
May 1, 2009... Premium for individual long-term care insurance fell 7% in 2008 compared with 2007, according to Limra International's Individual Long-Term Care Sales survey. Limra said a big factor in the drop was a 23% decline in the fourth quarter of '08....

Tennessee Blues' Web site lauded.(Technology)(Blue Cross Blue Shield's bcbst.com received accreditation)(Brief article)
May 1, 2009... [ILLUSTRATION OMITTED] BlueCross BlueShield of Tennessee's Web site, bcbst.com, has attained full HealthWeb Site accreditation from URAC, a Washington, D.C.-based health care accrediting organization that sets quality standards for the...

National Life launches VUL.(Life)(variable universal life insurance)(Brief article)
May 1, 2009... National Life Insurance Co. has introduced Investor Select, a variable universal life product with more riders and new funds. New riders involve other insureds, a balance sheet benefit and waiver of specified premium. The company continues to...

Hartford adds new retirement funds.(Employee Benefits)(Hartford Financial Services Group Inc.)(Brief article)
May 1, 2009... The Hartford Financial Services Group has expanded from three to nine the number of Target Retirement Funds available in the company's mutual funds family. The funds are spaced five years apart from 2010 to 2050 and use an "investment glide...

Valiant offers D&O product.(Property/Casualty)(directors' and officers' liability insurance)(Valiant Insurance Group Inc. )(Brief article)
May 1, 2009... Specialty property and casualty carrier Valiant Insurance now offers Safeguard, a primary directors and officers liability product for public companies with $1 billion or less in revenues. Features include: broad definitions of coverage for an...

Learn more.(Product News)(Brief article)
May 1, 2009... National Life Insurance Co. A.M. Best Company # 06790 Distribution: Career and independent agents Hartford FinancialServices Group A.M. Best Company # 18217 Distribution: Independent agents and brokers,...

Top U.S. complaints in 2008 by type of insurance coverage.(SNAPSHOT)(Statistical table)(Brief article)
May 1, 2009... Top U.S. Complaints In 2008 by Type of Insurance Coverage Accident/Health 36.9% Auto 36.7% Homeowners 11.8% Life/Annuity 9.5% Commercial Multi-Peril 1.9% Source:...

Rating actions.(Ratings)(Table)
May 1, 2009... This edition reflects all financial strength rating changes--assignments, changes or placed under review--that occurred for life, health and property/casualty insurers domiciled in North America, as well as non-U.S, insurance companies, since...

Eastern promises: will new regulation stifle bancassurance growth in Asia?(Life: Asia Bancassurance)(Cover story)
May 1, 2009... Bancassurance was virtually nonexistent in the Asia-Pacific region before 2000, Since liberalization by the region's financial regulators, bancassurance is now taking a lion's share of insurance sales in most markets. [ILLUSTRATION...

Higher hurdles: nontraditional families encounter different rules when it comes to financial planning.(Life: Financial Planning)
May 1, 2009... [ILLUSTRATION OMITTED] Financial adviser Lyn Dippel recently ran into a difficult situation when a married couple-both clients of hers--decided to break up. The partners were both in their second marriages. Both had a child from their...

Standing the test of time: sixty-nine law firms with insurer defense practices have been recommended for at least 75 years by the insurance companies they have represented.(Regulatory/Law)
May 1, 2009... [ILLUSTRATION OMITTED] When A.M. Best Co. began rating the financial strength of insurance companies in 1906, subscribers began W requesting information on insurance attorneys who were competent to handle their litigation, adjustments and...

The cultural connection: promoting employee benefits to multicultural markets means more than just words. Understanding cultural needs is the key.(Health/Employee Benefits: Multicultural Marketing)
May 1, 2009... [ILLUSTRATION OMITTED] America's melting pot is quickly filling to the brim. Today, one in three U.S. residents is multiethnic, multiracial or multicultural, according to the U.S. Census Bureau. That's bringing new challenges to...

Paying it forward: disaster recovery bonds can prefund countries' future catastrophe losses.(Reinsurance/Capital Markets: Disaster Bonds)
May 1, 2009... [ILLUSTRATION OMITTED] Natural disasters often hit developing countries disproportionately hard, and efforts are under way to not only mitigate potential losses, but to speed the recovery process through predisaster funding. One of the...

Keeping a watchful eye: predatory financial advisers prompt states to adopt senior-specific certification rules.(Agent/Broker: Senor Designations)
May 1, 2009... [ILLUSTRATION OMITTED] A Year after state regulators began cracking down on senior-specific designations with a model rule to protect the nation's seniors, about 50% of U.S. states have produced their own protections to establish...

Designations for insurance and finance professionals: a look at some of the classes, workshops and study courses that lead to certification from recognized organizations.(Agent/Broker: Professional Designations)
May 1, 2009... ACORD (Association for Cooperative Operations Research and Development) acord.org ACE: ACORD Certified Expert Description: An ACE certification means that an individual has received consistent training, passed the exams required...

Thinking small: larger insurers head into the small-commercial market to offset downturn losses.(Property/Casualty: Commercial)
May 1, 2009... [ILLUSTRATION OMITTED] The small-commercial insurance market is looking more attractive as the recession wears on. As often happens during an economic downturn, larger players are looking toward the small-commercial arena for stability....

A changing landscape: property/casualty folks should know how changes in the health care system could impact coverage of health care facilities.(Property/Casualty: Underwriting Insight)
May 1, 2009... Economic and demographic indicators continue to highlight a growing demand for health care services. These trends, coupled with advances in medical technology and biotechnology, will drive changes to many sectors of the health care industry....

Business upgrade: software shifts to larger role in commercial lines underwriting.(Technology: Underwriting Tools)(Survey)
May 1, 2009... [ILLUSTRATION OMITTED] When it comes to underwriting, John Belizaire admits that his background in enterprise software makes him something of an outsider. But that hasn't stopped the chief executive and founder of FirstBest Systems...

On-the-spot care: health insurers find that on-site clinics are good for their bottom lines.(Health/Employee Benefits: On-Site Health Care)
May 1, 2009... [ILLUSTRATION OMITTED] "The doctor's in" is taking on a whole new meaning for some companies that are moving health care and preventive services on-site. That's an approach mailstream technology company Pitney Bowes took several years...

Dynamic tension: bankruptcies are a growing risk for producers of directors & officers insurance.(Regulatory/Law: Directors & Officers Insurance)(Statistical table)
May 1, 2009... Bankruptcy filings by financially strapped companies have set the stage for a run of litigation that threatens to push the margins on directors & officers coverage. Total combined assets of public companies that filed for bankruptcy in the...

Get on board: online advertising by insurers is growing and consumers are setting the pace: Part 2 in a 2-part series.(Technology: Online Advertising)(Survey)
May 1, 2009... Personal lines property/casualty insurers spent an estimated $387 million on Internet advertising in 2008. The majority of ad dollars--61%--was allocated to paid search. Display ads and online leads were the other two big categories, with a 26%...

Network news: agent survey shows a growing role for online sales leads.(Agent/Broker: Online Leads)(Survey)
May 1, 2009... [ILLUSTRATION OMITTED] "Networking" and "online sales leads" are the most effective ways to generate new sales prospects, according to a Best's Review online poll of 373 agents and brokers. Nearly half of those responding indicated...

Doing something about the economy: times may be tough on agencies for a while longer, but there are ways to survive the downturn.(Agent/Broker: Selling Insight)
May 1, 2009... Are you worried about the current economic environment and its potential impact on your agency? Take action to get your agency's financial condition in order by focusing on profitability, liquidity and tangible net worth. Evaluate the...

Getting direct about direct: harnessing Web 2.0 creates a path to greater profitability.(Technology: Technology Insight)
May 1, 2009... In this time of uncertainty, insurers are recognizing that the battle for profitability is fought one customer at a time. Now more than ever, insurers are looking for new ways to acquire and retain customers, which often means introducing new...

The strong suit offering security: when you think about it, life insurance people and products have always been under a cloud, a rather dark cloud.(Life: Selling Insight)
May 1, 2009... In good times, we disappear into the shadows while the equity folks take center stage, attracting all the attention. When you think about it, our products are highly valued by relatively few consumers and certainly underutilized by many others...

Underwriting risks during a downturn: the poor economy presents group underwriters with special challenges in managing life and disability insurance risks.(Life: Underwriting Insight)
May 1, 2009... All the familiar issues associated with an economic downturn back into focus for group underwriters these days, and it's high time to take stock of our risk-assessment approach and tools. The issues facing us include increasing merger and...

Fairness doctrine: a Supreme Court decision tackling exorbitant jury awards is welcome news for insurers.(Regulatory/Law: Tort Reform)
May 1, 2009... [ILLUSTRATION OMITTED] For years, "tort reform" has been a buzzword in political campaigns, and punitive damages have been discussed frequently. In 2001, according to The National Law Journal, the median ratio of punitive to...

Skating on thin ice: misrepresentation is not insured because it is not an 'accident.'.(Regulatory/Law: Legal Insight)
May 1, 2009... Athletes anticipate. Hockey great Wayne Gretzky said he always skated to where the puck was going to be. I'm a bad athlete and a very bad skater, but I do see a lesson here: The country's economic crisis surely will push the insurance...

Captive domiciles.(Property/Casualty: Captives)(Directory)
May 1, 2009... 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...

A bolt from the blue: lightning is one of the most frequent causes of insured losses for homeowners.(Property/Casualty: Loss/Risk Management Insight)
May 1, 2009... To many, lightning is little more than Mother Nature's fireworks display, often followed by a window-rattling rumble of thunder that chases golfers from the fairways and sends the dog scampering for cover. But lightning is also one of the...

Broker Lockton set to open Dubai office.(Companies)(Brief article)
May 1, 2009... Insurance broker Lockton will open a new office in the Dubai International Financial Centre after receiving a license to do business in the Persian Gulf emirate. The office is the broker's first in the Middle East and will operate as a...

Hiscox expands into U.S. construction industry insurance.(Companies)(Brief article)
May 1, 2009... Speciality insurer Hiscox said it now offers construction industry insurance to the U.S. market. Hiscox's construction insurance team will underwrite individual risks such as construction property coverage, which will extend beyond the...