Best's Review articles from November 2005

Best's Review archives from November 2005

The business of profit.(Editor's Prologue)(Brief Article)
November 1, 2005... Insurers can make money from investments, and they can make money from their insurance business. To make money from insurance, they have to pay out less in claims and expenses than the) take in from premiums. Seems simple enough, but the...

'I'm sorry' is a powerful statement.(Comment)
November 1, 2005... I've had personal experience with one of the situations described in September's Best's Review cover article, "Doctors' Orders." My mother-in-law had a stroke around 1970. She ended up needing brain surgery. The doctor who operated on her...

In the spotlight *.(Comment)
November 1, 2005... "Katrina has set a new standard for everybody, and a very high standard. When you look at Hurricane Rita, and people see the $8 billion estimated loss and say that's not bad, you know there's a new standard." Stephen Cross Chief...

Church insurers take hit from Hurricanes Katrina, Rita.(Briefing)
November 1, 2005... Insurance will help rebuild many houses of worship damaged by hurricanes Katrina and Rita--but at significant cost to individual churches. In Mississippi, for example, most United Methodist churches in the annual conference are members of...

High storm losses said to hit primary writers.(Briefing)(Brief Article)
November 1, 2005... The higher the insured losses from Hurricane Katrina, the smaller the relative share of those losses property/catastrophe reinsurers will have to bear, according to a new report by the Tillinghast and Reinsurance businesses of Towers Perrin....

U.S life insurers review their Japan strategy.
November 1, 2005... With the Oct. 11 vote by the lower house of Japan's Diet to privatize segments of the Japan Post--including its Kampo life insurance unit--Prime Minister Junichiro Koizumi soon may be able to declare victory in what long has been his top...

Life insurers keep eye on tax panel and its recommendations.(Briefing)(Brief Article)
November 1, 2005... A federal commission examining fundamental changes to the U.S. tax code is very unlikely to scrap the income tax system in favor of a national sales tax or a European-style value-added tax, the panel's vice chairman told the American Council of...

Title industry reports robust earnings for 9th year in row.(By the Numbers)(Brief Article)(Illustration)
November 1, 2005... The title insurance industry reported near-record results in 2004, according to an AM. Best Special Report. The report, Clouds on Horizon After Title Industry's Bright Year, cautions that the trend of home prices rising faster than personal...

How title insurance differs from other line.(By the Numbers)(Brief Article)(Illustration)
November 1, 2005... Because title insurance is an evidence producing/loss prevention line of insurance, its loss expense is less and its operating expense is greater than other property/casualty lines. Title Industry Expenses 92.0 Margin 1.6...

Key elements of title insurance compared with P/C insurance.(By the Numbers)(Brief Article)(Illustration)
November 1, 2005... Key Elements of Title Insurance Compared With P/C Insurance Features Tltle Insurance Protects Against Past Events Scope of Coverage Specific Actuarially Defined Rates Evolving...

Meetings.(Briefing)(Calendar)
November 1, 2005... Nov. 7-9 15th Annual World Captive Forum: Business Insurance, Towers Perrin, Quest, Fairmont Turnberry Isle Resort and Club, Aventura, Fla. Phone: (952) 928-4659 Web site: www.captive.com Nov. 7-10 IRMI Inc.: 25th IRMI...

Brit Insurance Holdings Plc.(Property/Casualty)(appointment of Kathy Lisson )(Brief Article)
November 1, 2005... KATHY LISSON, most recently a senior investment executive at Bar clays plc, has been named chief operating officer of U.K. insurer BRIT INSURANCE HOLDINGS PLC. At Barclays, Lisson served as operational trans formation director, where she...

American International Group Inc.(Property/Casualty)(appointments)(Brief Article)
November 1, 2005... AMERICAN INTERNATIONAL GROUP INC. has named NICHOLAS WALSH as executive vice president of foreign general insurance. RALPH MUCERINO was named vice president of global energy. Also, ROBERT CLYDE, SEIKI TOKUNI and ANDREAS VASSILIOU were named...

Countrywide Insurance Group.(Property/Casualty)(appointment of Coralee Talmage)(Brief Article)
November 1, 2005... COUNTRYWIDE INSURANCE GROUP has named CORALEE TALMAGE senior vice president of Countrywide Insurance Services Inc.'s employee-benefits practice. Previously, Talmage was executive director of the employee benefits department of PrideMark...

St. Paul Travelers president and CEO to chair board of directors.(People in Insurance)(Jay S. Fishman)(Brief Article)
November 1, 2005... Jay S. Fishman, president and chief executive officer of the St. Paul Travelers Companies, Inc. was unanimously elected by the company's board of directors to the additional position of chairman of the company's board. Fishman succeeds...

Nymagic Inc.(Property/Casualty)(appointment of A. George Kallop)(Brief Article)
November 1, 2005... NYMAGIC INC. named A. GEORGE KALLOP president and chief executive officer. Kallop joined NYMagic in June 2002 as executive vice president and has been chief operating officer since 2004. He succeeds George R. Trumbull as CEO. Trumbull will...

Wausau Insurance Cos.(Property/Casualty)(appointment of Mark Fiebrink)(Brief Article)
November 1, 2005... WAUSAU INSURANCE COS. has named MARK FIEBRINK president and chief operating officer. Most recently, Fiebrink worked in Boston as an executive vice president for Liberty Mutual Group's agency markets. Previously, Fiebrink worked for Wausau...

Transatlantic Reinsurance Co.(Reinsurance)(appointment of Andrew Gaudencio)(Brief Article)
November 1, 2005... TRANSATLANTIC REINSURANCE CO. has named ANDREW GAUDENCIO and DAVID RADFORD senior vice presidents in its London office. The company also has named BRUCE BAUMGARTEN, DENNIS GREANEY, EDWARD MATTIE and RICHARD STRUMPH vice presidents in its...

MassMutual Financial Group.(Life)(appointment of Elaine Sarsynski)(Brief Article)
November 1, 2005... MASSMUTUAL FINANCIAL GROUP has named ELAINE SARSYNSKI chief administrative officer for Massachusetts Mutual Life Insurance Co. Sarsynski will be responsible for corporate human resources, corporate services, corporate communications and...

Willis Group Holdings Ltd.(Agent/Broker )(appointment of Ashok Dhawan)(Brief Article)
November 1, 2005... Insurance broker WILLIS GROUP HOLDINGS LTD. has named ASHOK DHAWAN chief executive officer of its India operations. Dhawan will be located in Mumbai. Dhawan's responsibilities include expanding the capacity of the Mumbai office and...

Aon Corp.(Agent/Broker)(appointment of Kymberlee Keefe, Roger Francoline, Frances Sigurani, and Brian Slife)(Brief Article)
November 1, 2005... Insurance broker AON CORP. has made four appointments in its healthcare practices. KYMBERLEE KEEFE is now senior vice president and national practice leader for the company's long-term-care practice in its Atlanta office. ROGER FRANCOLINE...

Marsh Inc.(Agent/Broker)(appointment of George Biancardi)(Brief Article)
November 1, 2005... MARSH INC. has named GEORGE BIANCARDI head of its financial institutions practice. Previously, Biancardi was with St. Paul Travelers, where he was most recently chief underwriting officer for financial institutions. Biancardi had been with...

Guy Carpenter & Co.(Agent/Broker)(appointment of Paul Brehm)(Brief Article)
November 1, 2005... Reinsurance broker GUY CARPENTER & CO. has named PAUL BREHM as senior vice president in its Minneapolis office. Brehm will be a part of the Instrat unit, which provides risk and financial modeling in addition to other analytical services....

Hilb Rogal & Hobbs.(Agent/Broker)(appointment of F. Michael Crowley)(Brief Article)
November 1, 2005... HILB ROGAL & HOBBS named F. MICHAEL CROWLEY president. Prior to joining Hilb Rogal & Hobbs in 2004, Crowley was president and chief operating officer of Palmer & Cay Inc. Crowley's duties as president will include overall...

PacifiCare taps Fred and Ethel.(HEALTH INSURANCE)(PacifiCare Health Systems Inc.)(Brief Article)
November 1, 2005... PACIFICARE HEALTH SYSTEMS INC. is featuring I Love Lucy's second-favorite couple in its new national marketing campaign for its Medicare Part D program. The "Choice Is Swell" campaign's message touts PacifiCare's commitment to offer...

Liberty Mutual teams with the Big Ten.(Liberty Mutual Insurance Co.)(Brief Article)
November 1, 2005... LIBERTY MUTUAL is now an official corporate sponsor of the Big Ten Conference, an association of 11 universities, including Penn State and Purdue. Participation in the BigTen Corporate Partner Program allows Liberty Mutual to use Big Ten logos...

Popular Gecko.(BRANDING)(Brief Article)
November 1, 2005... FOLLOWING IN THE AFLAC DUCK'S webbed footsteps, the Geico Gecko has earned a place as one of America's favorite advertising icons for 2005. More than 500,000 people cast their vote online for their favorite advertising icon and slogan, as...

Prudential Financial Inc.(LIFE INSURANCE)(Brief Article)
November 1, 2005... PRUDENTIAL FINANCIAL INC.'S new "Hey Dad" television commercial was inspired by its experience as a global company, said Tom Burke, vice president in charge of advertising and head of the company's in-house ad agency. Company execs in Korea...

LTC insurance affordability.(SPOTLIGHT)(Long term care insurance)(Brief Article)
November 1, 2005... Only 5.6% of closed long-term-care insurance claims lasted longer than 36 months, according to a survey conducted by consulting and actuarial firm Milliman inc. That's one reason Jesse Slome, head of Sales Creators Inc., said the vast majority...

E&O protection for real estate pros.(Property/Casualty)(errors and omissions)(Brief Article)
November 1, 2005... Agents and brokers in the booming real-estate business now may enjoy broader protection from possible claims or litigation against errors and omissions under a policy introduced in August by St. Paul Travelers. The policy provides legal defense...

Policy covers only serious disability.(Life)(Brief Article)
November 1, 2005... Assurant Employee Benefits has launched a disability product that covers only the most serious conditions. It offers a higher level of income protection for the price, requires no health questions or limitations on pre-existing conditions,...

Phoenix launches ROP term.(Life)(return-of-premium option)(Brief Article)
November 1, 2005... The Phoenix Companies in September announced a return-of-premium option for its term life products, available through a rider on 10-, 20- or 30-year level-premium policies. Under the rider, which increases the cost, if the insured is living at...

Minnesota Life offers new policy for old.(Life)(Brief Article)
November 1, 2005... Minnesota Life Insurance Co., is offering owners of existing adjustable life policies the opportunity to exchange them for a newer version. The offer is consistent with its history of giving customers the opportunity to benefit from product...

Mid-year LTD & STD sales premium growth rates.(Brief Article)
November 1, 2005... Disability writers in the United States sold $1.2 billion of group insurance the first half of 2005. [GRAPHIC OMITTED] Source: JHA, a subsidiary of General Re Life Corp. Learn More St. Paul Travelers Cos. A.M. Best...

Best's rating changes.(Ratings)(Illustration)
November 1, 2005... 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...

The art of underwriting: highly focused niche insurers are outperforming many of their larger, more diverse peers in four lines of commercial property/casualty insurance, according to a study by A.M. Best Co.(underwriting profit)
November 1, 2005... When it comes to profitable underwriting, commercial property/casualty insurers that outperformed their peers tend to have a one-track mind. A.M. Best Co. studied four lines of commercial insurance--workers' compensation, fidelity and...

Cash vs. replacement: U.K. homeowners insurers are doling out replacement goods instead of cash settlements on claims, while U.S. insurers are doing just the opposite.(property and casualty insurance)
November 1, 2005... Imagine responding to an insurance claim for a Sony TV and telling the policyholder that instead of receiving a check in the mail, shell be getting a replacement TV from the insurer's preferred electronics supplier. Or in lieu of a $10,000...

The big condo boom: the rising surge in condo and co-op ownership gives agents and brokers the chance to fill in coverage gaps.(property and casualty insurance industry)
November 1, 2005... New condominium and cooperative owners can find themselves beset by problems they never envisioned. Many buyers, whether first-time or experienced, are not aware that they may have little, if any, protection against serious property and...

Common ground: state and national interests meet at the NAIC. A look at 10 years of operations shows an evolving focus.(National Association of Insurance Commissioners)
November 1, 2005... In the past decade, the National Association of Insurance Commissioners has adopted a business model that seems to guarantee growth for the state-based insurance regulatory framework that traces its roots back to 1871. Ten years ago, the NAIC...

Anticipating D&O claims: a rise in environmental securities actions against companies is spurring an influx of pollution claims by policyholders.(Legal Insight)
November 1, 2005... With the unique legal obligations of federal and state environmental regimes dramatically impacting major U.S. corporations' bottom lines, more and more securities-related litigation has been filed against companies as a result of their...

A safe bet: hardened by tough market conditions, insurers are seen as a solid investment.(property and casualty insurance )
November 1, 2005... Insurers are getting fairly good access to capital markets as a somewhat safe bet among financial services segments, despite signs of pricing pressure in property/casualty underwriting. That access is coming in handy. In the wake of...

Keep in touch: deploying marketing that focuses on the life cycle of the policyholder keeps agents connected.(distribution)
November 1, 2005... The insurance industry is facing serious challenges within its traditional distribution systems. These challenges cover an array of issues, including revenue growth, profitability, market conduct compliance and orphan management. All of these...

Special delivery: most studies show mail-order pharmacies save money for insurers and consumers, but retail stores are demanding to be an option, particularly for Medicare beneficiaries.(Prescription Drugs)
November 1, 2005... Neither snow nor rain nor heat nor gloom of night can keep consumers from receiving prescription medications when it comes to mail service. That convenience is driving up the number of individuals choosing to fill chronic maintenance...

Game's on: Canada's life insurance market is dominated by three big corporations, but smaller insurers find ways to compete.(Manulife Financial, Sun Life Assurance Company of Canada, and GreatWest)
November 1, 2005... A startling fact about Canada is only three corporations control nearly two-thirds of the assets in the nation's life insurance industry. But while that may sound like an overwhelming concentration of power, industry leaders say the marketplace...

Big winners: those life insurers who can successfully make the transition from helping consumers accumulate wealth to helping them distribute it stand to win, and win big, in the future.(Selling Insight)(Column)
November 1, 2005... The future presents the insurance sector of the financial services industry with an opportunity for success that dwarfs all that has come before. This potential bonanza comes in the form of some $25 trillion in accumulated personal wealth that...

Two faces of nondisclosure: asking the right questions--and doing it well--can reduce the amount of nondisclosure in life and health insurance applications.(Underwriting Insight)(Column)
November 1, 2005... Does nondisclosure equal antiselection? Not always. This underwriter would broadly define antiselection as a state that exists when the proposed insured is aware of facts in his health habits (or lack thereof), medical history, avocations, and...

Entering the blogosphere: agents and actuaries are writing insurance's first blogs.(Blogs)(Column)
November 1, 2005... November 1, 2005 Blogging has become an essential ingredient in independent agent Andy Kosick's marketing to potential clients. Kosick, an agent with Eagle Harbor Insurance in Bainbridge Island, Wash., began his blog earlier this year as a...

Disaster on the wing: avian flu flaps its wings in Southeast Asia, and the global economy shudders.(Avian Flu)(insurance loss)(business interruption insurance)
November 1, 2005... In a scenario eerily similar to the emergence two years ago of the deadly sudden acute respiratory syndrome, or SARS, global health officials are keeping a wary eye on the development of a strain of avian influenza that is highly contagious...

Cat modeling tools: the developing science of catastrophe modeling is far from perfect, yet nearing perfection.(Underwriting Insight)(Column)
November 1, 2005... In his book, The World is Flat, columnist Thomas L. Friedman of The New York Times provides a glance back at numerous changes in the history of civilization. The amazing thing about Friedman's book is that he only looks back to the year 2000....

Loud and clear: insurers look to public policy veterans to make their voices heard on Capitol Hill.(insurance industry is ranked depending on their spending for Lobbying)
November 1, 2005... Insurance lobbying interests are hiring recent politicians to advance the industry's agenda in the halls of Congress these days. And while hiring former politicians is de rigueur for any lobbying interest, some pretty high-profile politicos are...

Managing metadata: attorneys need to be aware of metadata, especially in regard to electronic discovery and professional responsibility obligations.(information management)
November 1, 2005... There are now numerous state and federal court decisions, a myriad of articles, and various conferences regarding the growing area of electronic data. Electronic evidence and discovery are here to stay and must be dealt with in the context of...

Leading the charge: AIG CIO Mark Popolano's drive for infrastructure, storage and governance model changes, along with strengthening the relationship between IT and business, are helping the company maintain its position as a technology leader.(technology)(Interview)
November 1, 2005... Since joining American International Group Inc. in 1995, Chief Information Officer Mark Popolano has seen a lot of changes and plans more to come. He's not only developing and maintaining disaster recovery, security and business continuity...

Keeps growing and growing and ... While not registering the double-digit growth rates of previous years, work-site sales are steadily increasing.(insurance markets)
November 1, 2005... Work-site carriers recorded another year of growth in 2004, according to U.S. Work-Site Sales, a recent study by East-bridge Consulting Group Inc. According to the study, new U.S. work-site sales totaled an estimated $4.22 billion, a 3%...

After the pain: poor results and worries about future claims have tested the optimism of the long-term-care industry, but some industry veterans say insurers and reinsurers ought to be more enthusiastic about new business.(health insurance)
November 1, 2005... Buy low, sell high. It's so easy to say, but so hard to do. And strangely enough, that might be the kind of situation that has developed among buyers and sellers of long-term-care reinsurance. Despite a better outlook for new business, they...

Building responsibility: contractors can avoid potential pitfalls by using additional insured endorsements as a means of risk transfer.(Selling Insight)(Column)
November 1, 2005... Construction projects typically have multiple businesses working together in a dynamic environment. Owner, architect, engineer, general contractors and multiple tiers of subcontractors usually delineate and transfer responsibilities, duties and...

Still room to improve workplace safety.(medical care for injured workers)
November 1, 2005... Even though the number of the most serious workplace injuries declined in accident year 2003, the cost of those injuries is still significant. Employers spent $50.8 billion on wage payments and medical care for injured workers. While the...

Executives: supply chain is greatest risk.(risk management)
November 1, 2005... Breaks in the supply chain are the biggest risks threatening companies' revenue, according to a survey of financial executives. The survey found one in four of the financial executives surveyed cited supply chain risk as being a top threat...

Total realignment: centralized workers' comp claims hubs connect systems and people to ensure the best medical outcomes and cost savings.(Workers' Compensation)(Column)
November 1, 2005... It's a seemingly straightforward process: An employee experiences an injury at the workplace, and must file a claim. From there, the objectives are simple enough: promptly report the claim, respond to the injury with quality medical care at an...

Aetna.(online access)(Brief Article)
November 1, 2005... Aetna announced a program to let consumers find out what they can expect to pay at the doctor's office before going in for a visit. Consumers will have online access to the actual discounted rates for up to 25 of the most common office-based...

CIGNA Pharmacy Management.(new Web-based price quote tool)(Brief Article)
November 1, 2005... CIGNA Pharmacy Management's new Web-based price quote tool allows members to get a "real-time" price quote from any pharmacy in Cigna's network of more than 52,000 retail pharmacies nationwide as well as from the CIGNA Tel-Drug home delivery...

Prudential Financial Inc.(Women & Finance section of Prudential.com)(Brief Article)
November 1, 2005... Prudential Financial Inc. launched a Women & Finance section of Prudential.com. The new section of the company's consumer Internet site provides information and tools designed to help women address the unique financial issues they face. Launch...

Transamerica Occidental Life Insurance Co.(Insurance Online Network)(Brief Article)
November 1, 2005... Transamerica Occidental Life Insurance Co. now provides online term insurance quotes through the Insurance Online Network. Participating institutions have access to term insurance quotes from Transamerica, as well as Protective Life Insurance...

Geico, Google settle trademark lawsuit.(trademark infringement lawsuit)
November 1, 2005... Auto insurer Geico and Internet search engine Google Inc. have settled a trademark infringement lawsuit over the use of trademarks as search engine keywords to trigger paid advertisements that appear alongside search results. A statement...

Defining a solution: integrating the various elements of a performance management solution as part of an insurer's process can eventually provide a way to help better manage a business.(technology )
November 1, 2005... What today is sometimes known as business performance management, corporate performance management or enterprise performance management is--not surprisingly--focused on helping insurance executive management teams better manage their...

Lincoln National to create fourth-largest life insurer with Jefferson-Pilot buy.(Lincoln Financial Group)(Brief Article)
November 1, 2005... Life insurer and annuity provider Lincoln National Corp. said it plans to acquire Jefferson-Pilot Corp. in a purchase valued at $7.5 billion to form the fourth-largest life insurer in the United States. The merged company will operate under the...

WellPoint to expand, purchases WellChoice.(markets)(Brief Article)
November 1, 2005... Health insurance giant WellPoint Inc. said it plans to acquire WeilChoice Inc., New York's largest health insurer, in a cash-and-stock purchase valued at $6.5 billion, with the merged company to have more than 33 million medical members as a...

Out of the ordinary: a growing number of policyholders are turning to unique insurance covers.(insurance policies)
November 1, 2005... Most individuals carry an array of insurance policies, such as homeowners, auto, life and medical, but a growing number of policyholders are turning to some unique coverages that protect against more unusual exposures. About 200...