Best's Review articles from November 2003

Best's Review archives from November 2003

Kingpins and common folk.(Editor's Prologue)(insurance fraud)(Editorial)
November 1, 2003... It's a crime for everyone. From the average policyholder to body shop owners, physicians, lawyers and now, members of organized rings--a host of criminals are attracted to insurance fraud, and their success is costing the insurance industry...

In the spotlight *.(Comment)
November 1, 2003... "Personally, I like volatility, as long as I can see the width of the corridor I can maneuver in. Right now, reinsurers are being forced to walk in a narrower risk corridor. Volatility and its management is our profession." Nicholas yon...

Royal & SunAlliance USA.(People in Insurance)(John Tighe appointed president, CEO)(Brief Article)
November 1, 2003... Royal & SunAlliance USA has appointed John Tighe president and chief executive officer. He succeeds Steve Mulready, who will now focus on finalizing the sale of renewal rights for the majority of the company's businesses to Travelers Property...

AmerUs Group Co.(People in Insurance)(James J. Kerwin appointed president, CEO of Bankers Life Insurance Co.)(Brief Article)
November 1, 2003... AmerUs Group Co. has announced that James J. Kerwin will become president and CEO of its subsidiary, Bankers Life Insurance Co. of New York, effective Jan. 1,2004. He replaces Stephen J. Shorrock, who left the company after 10 years as...

OneBeacon Insurance Group LLC.(People in Insurance)(John Cavoores elected CEO)(Brief Article)
November 1, 2003... OneBeacon Insurance Group LLC has elected John Cavoores chief executive officer, Cavoores will continue as president of OneBeacon. Also, Chuck Chokel, OneBeacon's chief administrative officer, will be moving to White Mountains Capital as a...

Life insurer mergers redistributing capital.(Briefing)
November 1, 2003... The recent flurry of merger-and-acquisition activity has life insurance industry observers wondering whether this is the beginning of a trend--and whether the industry has recovered its economic momentum. Since the beginning of 2003, North...

Health insurance groups merging to gain lobbying clout.(Briefing)(American Association of Health Plans, Health Insurance Association of America)
November 1, 2003... Seeing little difference in their lobbying objectives, two health insurance associations might merge this fall to form what would be among time biggest health lobbies on Capitol Hill as healthcare issues such as Medicare reform have center...

New York Life Insurance Co.(People in Insurance)(Joseph A. Gilmour appointed executive vice president, CFO of New York Life International)(Brief Article)
November 1, 2003... New York Life Insurance Co. has named Joseph A. Gilmour executive vice president and chief financial officer of its overseas arm, New York Life International. Gilmour joins New York Life International from Canada Life Assurance Co., where...

Wachovia Insurance Services.(People in Insurance)(Karen J. Lehman appointed CFO)(Brief Article)
November 1, 2003... Wachovia Insurance Services has chosen Karen J. Lehman as its new chief financial officer. Lehman, a 20-year accounting veteran, will be responsible for the oversight of all finance, accounting and performance-reporting activities. Lehman...

Ace Ltd.(People in Insurance)(appointments)(Brief Article)
November 1, 2003... Ace Ltd. has made the following appointments: Pierre Samson will become president, Ace Global Financial Solutions. Richard Pryce has been appointed president, Ace Global Markets and a director of Ace INA UK Ltd. and Ace Underwriting...

Excess and surplus lines premium jumps 62% in 2002.(By the Numbers)(Brief Article)
November 1, 2003... At year-end 2002, direct premium volume for the surplus lines industry increased by nearly 62% over the prior year, according to a special report by the A.M. Best Co. Surplus lines consists of property/casualty companies that provide insurance...

Meetings.(Briefing)(Calendar)
November 1, 2003... Nov. 7-13 International Foundation of Employee Benefit Plans, 49th Annual Employee Benefits Conference, San Diego Convention Center, San Diego. Phone: (888) 334-3327. Web site: www.ifebp.org. Nov. 9-12 National Association of Independent...

Europeans paying more for property coverage.(Briefing)(Brief Article)
November 1, 2003... European multinational companies rely too much on the domestic market for property insurance and probably are missing the chance to gain more favorable terms and conditions in other markets, compared with their less-conservative U.S....

Bill puts N.J. auto insurance under fire.(Briefing)(Brief Article)
November 1, 2003... New Jersey's automobile insurance market is again under attack, with proposed legislation that would change the way lawsuits are filed. Legislative Bill A-3531/S-2533, which was considered in the general session earlier in the year, is...

High court caps awards; insurers likely to benefit.(Briefing)
November 1, 2003... The Supreme Court's overturning of a mammoth judgment against Philip Morris is a clear signal that the high court considers outsize punitive awards unconstitutional, which is a boon for insurers and other defendants trying to assess future...

Banks' insurance income slips slightly.(Briefing)(Brief Article)
November 1, 2003... Banks' insurance income dropped slightly overall for the first half of 2003, but small hanks saw a marked increase in income for the period. Overall, banks earned $1.73 billion in insurance commissions and fee income, down 3.2%, in the...

Report card shows N.J. HMOs still deficient.(Briefing)(Brief Article)
November 1, 2003... New Jersey's health maintenance organizations showed improved services and better access in the past year but still lagged behind state and national averages, according to the state's 2003 HMO Performance Report. The report, published by...

Sport utility drivers dispute study results.(Briefing)(Brief Article)
November 1, 2003... While studies suggest car drivers might be overpaying their insurance premiums by about 10% to 15% a year compared with owners of sport-utility vehicles, an SUV owners' association says that assumption is incorrect. The study by Conning...

Florida hiring fraud prosecutor.(Brief Article)
November 1, 2003... Ranked a "hot spot" for insurance fraud, Miami will soon have its own automobile insurance fraud prosecutor to combat the estimated $1.1 billion in fraudulent auto insurance claims filed every year in Florida. Florida's chief financial...

Best's rating changes.(Ratings)(Illustration)
November 1, 2003... This summary of Best's Rating Changes includes life, health-care and property/casualty insurers domiciled in North America, as well as international insurers that had ratings assigned, changed or placed under review since this section last...

Dealing in fraud: professional criminals and petty thieves are draining cash from the insurance industry, and more companies are getting serious about plugging the hole.(The Big Picture)
November 1, 2003... It's infiltrated by gangs, marked by turf wars, spectacularly profitable and hard to fight because of ambivalent public attitudes and uneven enforcement. It isn't drugs or illegal gambling; it's insurance fraud--a criminal enterprise that's...

Dust storm: a sudden rise in silicosis claims is reminiscent of asbestos litigation, but this time insurers are blocking the turbulence.(Litigation)
November 1, 2003... A dramatic increase in lawsuits by plaintiffs claiming injury from dust-related lung disease is sparking comparisons to the early days of asbestos litigation. With asbestos possibly causing insurance losses greater than Sept. 11 and Hurricane...

Facing the past.(Litigation)(Metropolitan Life Insurance Co is named in thousands of lawsuits because it did research on asbestos in the 1930s to 1950s)
November 1, 2003... Many insurers caught in the web of asbestos losses have been forced to increase reserves in recent months, including an unlikely candidate: Metropolitan Life Insurance Co. MetLife, the largest life insurer in the United States according to...

Taking the next step: Safeco wants to concentrate on selling standardized property/casualty products.(Restructuring)(Company Profile)
November 1, 2003... Editor's Note: This article is an update to "Becoming a Contender," the profile of Safeco Corp. that appeared in the October 2003 issue of Best's Review. In its drive to be one of the top-performing companies hi the auto and...

Smoke stream: insurers and brokers find new business opportunities in emissions trading and managing emissions risk.(Risk Management)
November 1, 2003... Greenhouse gas emissions can force climate change and present potential liabilities to the corporations that produce them. But they also offer attractive opportunities for financial services, and the insurance industry in particular, to open up...

Greater than the sum of the parts: new risk management textbook connects with holistic problem solving.(Risk Management)(Interview)
November 1, 2003... Etti Baranoff, an associate professor of finance and insurance at the School of Business, Virginia Commonwealth University, has spent the past eight years teaching undergraduate and graduate courses in finance, risk and insurance, and employee...

Insuring to value: homeowners have traditionally insured their properties at less than the replacement cost. Newer valuation methods help insurers bring more policies to full coverage.(Homeowners)
November 1, 2003... During construction of a single-family house, New Jersey homebuilders Mary and Joseph Licata carry insurance for builders' risk and general liability. But they also invite a homeowners insurance appraiser on site to estimate the amount of...

Getting to know you: as homeowners writers see personal property claims rise, they're taking a closer look at insureds' personal characteristics.(Homeowners)
November 1, 2003... Most property/casualty professionals are aware of the link between credit scores and insurance losses in personal lines. This correlation is driving most personal lines carriers to use credit-based insurance scoring for underwriting and, in...

In need of repair: to fix the problem of underpriced umbrella policies, casualty underwriters must consider such factors as rising loss costs and antiquated attachment points.(Commercial Lines)
November 1, 2003... The insurance industry has experienced change like no other time in recent history. Not since the hard market of the mid-1980s have casualty underwriters struggled with such a myriad of issues that include a worsening loss trend in excess...

A burst of trouble: thunderstorms can cause greater annual aggregate losses than hurricanes, so insurers must be better prepared.(Weather-Related Losses)
November 1, 2003... In May of this year, the insurance industry watched the unfolding of a weather pattern in the United States that resulted in the largest-ever insured loss from an outbreak of severe thunderstorms. Between May 2 and May 11, 2003, multiple...

Luring talent ... and keeping it: top performers, like other employees with job-achievement goals, want to know what's expected of them and how they are doing with their work.(Selling Insight)
November 1, 2003... Although many segments of the economy have a surplus of qualified people, the insurance distribution system has a shortage of job candidates. When searching for candidates, agencies know that not only must they pay a competitive wage, but that...

State Farm, Blues among top 10 "world class" brands.(Marketplace)(State Farm Insurance and Blue Cross/Blue Shield insurance)(Brief Article)
November 1, 2003... State Farm Insurance and Blue Cross/Blue Shield insurance are among the top 10 world-class financial services/insurance brands according to a Harris Interactive EquiTrend brand study. Both companies improved their ranking positions from...

St. Paul offers insurers new liability coverage.(Marketplace)(St. Paul Cos.)(Brief Article)
November 1, 2003... The St. Paul Cos. is rolling out a product that incorporates a variety of management liability and professional coverages for insurers. The coverage includes directors and officers liability, employment practices liability, fiduciary liability...

Experts: PR's more effective in branding than advertising.(Marketplace)
November 1, 2003... Many U.S. companies are following a growing trend to hire public relations firms to develop their brands rather than investing in advertising campaigns, according to public relations industry experts. Citing the success of Amazon.com, eBay,...

Liberty Mutual, OSHA to share injury research.(Loss/Risk Management Notes)(Liberty Mutual Insurance Co. and the United States Occupational Safety and Health Administration)(Brief Article)
November 1, 2003... Liberty Mutual, the largest workers' compensation writer in the United States, said it has formed a strategic alliance with the Occupational Safety and Health Administration's Boston regional office to share safety research information and best...

Division of AIG offers excess flood coverage.(Loss/Risk Management Notes)(AIG Private Client Group)(Brief Article)
November 1, 2003... AIG Private Client Group, a division of American International Group, is offering excess flood coverage aimed at homes with a replacement cost of greater than $1 million. The coverage follows the policy provided by the National Flood Insurance...

Insurers team with LoJack Corp., target Construction-Equipment theft.(Loss/Risk Management Notes)(Brief Article)
November 1, 2003... In an attempt to cut down on the $1 billion-a-year problem of stolen construction equipment, insurers--including most recently CNA and Chubb Group of Insurance Cos.--have teamed up with the LoJack Corp., the stolen vehicle police recovery...

Technology turns to dogs to sniff out 18 types of mold.(Loss/Risk Management Notes)(Brief Article)
November 1, 2003... With mold claims and costs escalating, unlikely detectives are joining the effort to help root out the problem: trained dogs. Long known for their expertise in tracking drugs and bombs and sniffing out arson, "mold dogs" are now being...

A stricter construction: in dealing with construction claims, insurance companies cannot be required to pay for damages that are imminent, only those that have occurred.(Loss/Risk Management Notes)
November 1, 2003... Policyholders have viewed California as a place where they could convince courts to interpret insurance policies broadly. But in a June 2003 case involving insurance coverage for a structure that was falling down, the California Supreme Court...

Invading annuities' turf: the huge and powerful mutual-fund industry is increasingly moving into an annuity stronghold--the 403(b) market.(Annuities)
November 1, 2003... Annuity writers dominate the more than half-trillion-dollar 403(b) tax-sheltered annuity market, but mutual fund providers, including some insurers, are beginning to give them a serious run for the money. For some 45 years, annuity writers...

A turn for the better: insurers rely on brokers to sell their consumer-driven health-care plans, but brokers must understand the plans to succeed in the growing market.(Consumer-Driven Health Plans)
November 1, 2003... The dawning recognition that consumer-driven health-care plans can counteract soaring health-care costs is luring more and more carriers and vendors into this growing market. Consumer-driven health plans, also known as consumer-directed health...

Staying fit: by offering health and wellness programs to consumers, insurers are developing healthier members while reducing costs.(Health Promotion Programs)
November 1, 2003... Health promotion programs do more than provide valuable medical information. Just ask an Independence Blue Cross member whose life may have been saved because of a blood pressure screening at his workplace. When the screening revealed an...

Out from under: quick, precise underwriting that reflects the latest medical treatments can cut expenses and enhance product appeal.(Underwriting)
November 1, 2003... It's a human tendency to say, "If it isn't broken, don't fix it. What we have is good for at least another five or 10 years." What a difference a new millennium makes. In a marketplace populated by informed consumers and product-savvy agents...

MetLife adds LTC Plan for AARP Members.(Marketplace)(Metropolitan Life Insurance Co.)(long-term-care insurance)(Brief Article)
November 1, 2003... Metropolitan Life Insurance Co., the exclusive provider of AARP's long-term-care insurance products, has introduced a second plan for members that offers more control over how they spend their benefits. The new plan, MyChoice, pays a full cash...

John Hancock revamps single-life products.(Marketplace)(Brief Article)
November 1, 2003... John Hancock Life Insurance Co. has revamped two of its core single-life products and expects to launch three more products by year-end. The company has lowered prices and added features to its flagship variable universal life policy, Medallion...

Survey shows traits of rich as investors recoup, protect.(Marketplace)
November 1, 2003... The wealthy want to construct a strategy to recoup their bear-market losses and protect their retirements, but they will go about that task in different ways, according to the 2003 Phoenix/Harris Interactive Wealth Survey. The survey,...

Eye on the prize: insurers can save money and boost revenue by improving distribution-channel management with the right strategy and efficient operations.(Selling Insight)
November 1, 2003... The past two years have been difficult for the insurance industry, with the combination of falling stock markets and interest rates leading to reduced consumer interest in several core products. With such pressure on the top and bottom lines,...

'Snake oil' pollutes underwriting: the very concept of insurability will be at risk unless underwriters embrace new and faster modes of risk assessment.(Underwriting Insight)
November 1, 2003... Webster's defines "snake oil" as "any of various liquid concoctions of questionable medical value sold as an all-purpose curative, especially by traveling hucksters." There is a somewhat analogous definition, first encountered by this...

Stretching out: global data standards are slashing tech costs and allowing insurers and reinsurers to communicate with global business partners in a common language.(Data Standards)
November 1, 2003... Many insurers and reinsurers say it's hard to remember what life was like before data standards. For Manulife Financial, use of various global standards across its technologies to communicate with agents, brokers and business partners has meant...

Searching for return on investment: insurers should determine if there is any strategic impact on corporate financial performance from IT investments.(Technology Insight)
November 1, 2003... A recent information technology furor, begun by a provocative Harvard Business Review article entitled "IT Doesn't Matter," is just now subsiding. The article cites the lack of impact on corporate financial performance by information...

Advisory group gives up push for Uniform Software licensing law.(Technology Notes)
November 1, 2003... Efforts to get state governments to adopt a uniform legal standard for computer software licensing have been put off, to the relief of insurers such as Prudential Insurance Co. of America, which estimated such a standard would have cost it...

Blaster worm, power blackout might spur cyber insurance sales.(Technology Notes)(Brief Article)
November 1, 2003... The vulnerability of computer networks was tested in August, first by a new "worm" program, then by the power blackout that hit the Northeast. +The events have highlighted the need for ether insurance, according to industry observers. "The...

ConnectiCare.(Web News You Can Use)(Brief Article)
November 1, 2003... ConnectiCare recently announced an agreement with Connecture Inc. to design and deploy its Web-based small-group renewal automation system. Connecture's technology will allow ConnectiCare's users to create online renewal statements, generate...

IVANS Inc.(Web News You Can Use)(Brief Article)
November 1, 2003... Agency interface solutions provider IVANS Inc. announced new flexible, Internet-based services and pricing models for interface. IVANS' e-commerce Internet solutions are available for both real-time and batch agency interface communications....

MIB Group Inc.(Web News You Can Use)(new Web portal)(Brief Article)
November 1, 2003... MIB Group Inc., a provider of Internet-based risk management information for life, health, disability and long-term-care insurers in North America, launched a new Web portal (www.mib.com) designed to inform diverse stakeholders including...

Brown & Brown continues to expand with acquisitions.(Companies)(Brief Article)
November 1, 2003... Brown & Brown Inc. continued its string of 2003 acquisitions, announcing the purchase of Canfield and Associates Inc., Canfield Insurance Services Inc., and Washington Insurance Services Inc. The acquisitions are Brown & Brown's 11th and 12th...

American Equity Investment marks growth with IPO.(Companies)(Brief Article)
November 1, 2003... Life and annuity insurer American Equity Investment Life Holding Co. has registered a $247 million initial public offering of common stock with the U.S. Securities and Exchange Commission, planning to contribute to the capital and surplus of...

TIAA-CREF announces restructuring, lays off 500.(Companies)(Brief Article)
November 1, 2003... As part of a broad restructuring plan designed to help it keep pace with for-profit competitors, Teachers Insurance & Annuity Association of America said it would lay off 500 workers, representing roughly 8% of its 6,000 employees. The...

Conseco gets approval to leave bankruptcy.(Companies)(Brief Article)
November 1, 2003... Conseco Inc.'s plan for reorganization has been approved by the court, paving the way for the company to come out of bankruptcy as an insurance-only operation. Conseco reported the U.S. Bankruptcy Court confirmed the company's sixth...

Bermuda-based Aspen Insurance Planning U.S. IPO.(Companies)(Brief Article)
November 1, 2003... Aspen Insurance Holdings Ltd. has asked the U.S. Securities and Exchange Commission for permission to make an initial public offering of its ordinary shares. The timing of the offering, number of shares, and initial value of the IPO will...

AIG buys stake in Chinese property/casualty insurer.(Companies)(Brief Article)
November 1, 2003... American International Group Inc. will invest in the initial public offering of Hong Kong-based PICC Property & Casualty Co. Ltd., marking further inroads by a western insurer into the burgeoning Chinese market. PICC, whose parent is the...

Prudential relaunches foreign equity business.(Companies)(Brief Article)
November 1, 2003... Prudential Financial Inc. is rolling out the relaunch of its foreign financial-management business under the new name Dryden Wealth Management Ltd., the company said. Dryden, previously known as Prudential-Bache Ltd, will provide both...

MetLife to sell property in L.A. for $225 million.(Companies)(Brief Article)
November 1, 2003... Metropolitan Life Insurance Co. has agreed to sell a California property from its equity portfolio to Maguire Properties Inc. for about $225 million. The principal operating unit of MetLife Inc. is selling 1 California Plaza in Los...

Books.(Resources)(Book Review)
November 1, 2003... Spreading the Risks: Insuring the American Experience Authors: Jack Bogardus with Robert Moore Synopsis: The book tells the story of how the property and casualty business grew from Colonial times through disasters and economic transformations...

Coming up ... in December.(Brief Article)
November 1, 2003... Technology Hot Spots: A session-by-session recap of the issues covered at the A.M. Best E-Fusion conference in Philadelphia. Let's Get Together: Coalition purchasing is a growing trend. Employers regain negotiating clout and achieve better...