Best's Review articles from October 2003

Best's Review archives from October 2003

Not your father's insurance.(Editor's Prologue)
October 1, 2003... With campaigns that are colorful or practical or both, some auto insurers are taking a new marketing turn to go after drivers and pre-drivers between the ages of 14 and 26. There are good reasons to pursue this group as policyholders--sheer...

Searching for a balance.(Comment)
October 1, 2003... Congratulations for the cover story in the September 2003 issue ("Doing the Right Thing"). As a lawyer-lobbyist who has spent years walking the halls of the state Capitol in Madison, Wis., I deal on a daily basis with balance between...

Line drive.(Comment)
October 1, 2003... The lead sentence in your September 2003 cover story ("Doing the Right Thing") is outstanding: "If America has a social contract, much of the fine print is in its insurance policies." I couldn't agree more, and I believe the line should be...

In the spotlight *.(Comment)(Brief Article)
October 1, 2003... "While we don't have specific claims information as yet, the event [Aug. 14 power blackout across the northeastern United States and parts of Canada] has been declared a catastrophe." Gary Kerney Assistant Vice President Property...

Correction.
October 1, 2003... A word was inadvertently omitted in the September Technology Insight column (page 130). That portion of the column should have read: "Examples of business process outsourcing options include 'lift and drop' outsourcing, in which processes are...

From decision to paperless in less than 90 days, with 40% improvement.
October 1, 2003... Organized in 1917 by a small church group that wanted insurance for fire and storm losses, Brotherhood Mutual Insurance Company has grown into one of the nation's leading insurers of churches and related ministries. Based in Fort Wayne,...

Chubb Corp.(People in Insurance)(Brief Article)
October 1, 2003... Michael O'Reilly, interim chief financial officer at Chubb Corp. since replacing Weston Hicks last October, had "interim" removed from his title by the company's board, which elected him to the post permanently following what was described as...

Arch Insurance Group.(People in Insurance)(Brief Article)
October 1, 2003... Arch Insurance Group named Robert T. Van Gieson president and chief executive officer of Arch Capital UK Ltd., Arch's London operation, beginning Sept. 1. Van Gieson will be based in Arch's London office, reporting to Ralph Jones, president and...

European executives urge reinsurers to take control of their business.(Briefing)
October 1, 2003... Reinsurance executives in Europe believe the industry is facing unprecedented complexities, made more challenging by the fact that some of their origins fall outside of the reinsurers' control. "In the post-Enron environment, no balance...

In Europe, liability coverage is insurers' biggest challenge.(Briefing)
October 1, 2003... Scant capacity, inadequate pricing and tort issues are hampering progress in European liability lines of insurance and reinsurance, according to experts from some large markets in the region. The area where insurers are suffering most in...

New York Life Insurance Co.(People in Insurance)(Brief Article)
October 1, 2003... Sandra J. Kristoff has been named senior vice president and chief of staff at New York Life Insurance Co. Kristoff assumes most of the responsibilities of George J. Trapp, executive vice president and secretary, who retired from the company in...

Zurich North America.(People in Insurance)(Brief Article)
October 1, 2003... Zurich North America has appointed Donna Galer executive vice president, office of the chief executive officer. She will be based in the corporate headquarters in Schaumburg, Ill. Galer will lead Zurich's corporate responsibility and compliance...

Allstate Financial.(People in Insurance)(Brief Article)
October 1, 2003... Anson J. Glacy Jr. has joined Allstate Financial as vice president of asset/liability management. Glacy was previously vice president and actuary for GeneralCologne Re Capital. Before that, he served as senior consulting actuary at Ernst &...

Drivers in mirror may think they are safer than they are ...(By the Numbers)(Brief Article)
October 1, 2003... Allstate conducted the "You Are What You Drive" survey to examine what is important to drivers when shopping for auto insurance, and to compare how people describe themselves as drivers with their reported driving behaviors. The survey found...

Meetings.(Brief Article)
October 1, 2003... AT>Calendar Oct. 11-14 Chartered Property Casualty Underwriters Society, 59th Annual Meeting and Seminars, New Orleans Marriott, New Orleans. (610) 215-2738; Web site: www.cpcusociety.org. Oct. 12-14 American Council of Life Insurers,...

Health premiums take big jump for employers.(Briefing)(Brief Article)
October 1, 2003... A 13.9% increase in health insurance premiums in 2003 was the largest since 1990, according to a new survey that said employers are passing on more of the cost of health care to employees. This was the seventh straight year of premium...

Alliance cuts staff; NAII merger still on.(Briefing)(Brief Article)
October 1, 2003... The Alliance of American Insurers laid off some employees since merger talks with the National Association of Independent Insurers began this summer, but the Alliance's president did not tie the layoffs to the ongoing merger discussions. ...

Insurers file $454 billion suit against al Qaeda, others.(Briefing)(Brief Article)
October 1, 2003... Prior to the second anniversary of the Sept. 11 terrorist attacks, five groups of insurers filed suit against the al Qaeda terrorist organization, five Middle Eastern states, a host of alleged terrorists and terrorist organizations, and several...

Underwriting and litigation top list of worries for insurance industry leaders.(Briefing)(Brief Article)
October 1, 2003... A panel of executives, gathered at the XL Capital Congress 2003--Thought Leadership for a World at Risk--in Montreux, Switzerland, explored the new world of risk, including the problem of maintaining underwriting discipline. XL Capital's...

Insurer gets license under D.C.'s new plan.(Briefing)(Brief Article)
October 1, 2003... The District of Columbia has licensed its first insurer under a new, expedited licensing system that the jurisdiction modeled on an idea taken from the European Union. Called the D.C. Due Deference Initiative or DCDD, the licensing system...

Auto rates up 54% since 2000 says survey.(Briefing)
October 1, 2003... Since InsWeb began tracking data in the first quarter of 2000, auto insurance prices have increased 54%, according to the company. Over the past 18 months, consumers have seen their premiums increase more than $150, a figure that includes...

Insurers will likely feel effects of rising Alzheimer's cases.(Briefing)(Brief Article)
October 1, 2003... An anticipated epidemic of Alzheimer's disease cases over several decades could not only impact long-term-care insurers but take an even greater toll on Medicare and Medicaid. The number of individuals with Alzheimer's disease--a...

Terror risk shifts to private sector.(Briefing)(Brief Article)
October 1, 2003... The latest view of the evolving terrorism risk facing the United States shows a pressured, but still lethal al Qaeda and the likelihood of smaller scale attacks against "soft" targets insured by commercial policies, ranging from the Sears Tower...

Best's rating changes.(Ratings)
October 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...

Gearing up: insurers are using driver safety programs, sharply focused advertising and the Internet to court teen drivers.(Auto)
October 1, 2003... Teen-age drivers evoke images of reckless speed and its consequences--but insurers see them in a different light. With their numbers expected to create a baby-boom-like demographic bulge by 2010, insurers are busily reaching out to this group....

Taking cover: like most investors, insurers had a tough time during the bear market and struggle to find good investments now.(Asset Management)
October 1, 2003... During the bull market, life was good for asset managers, including those running insurance-company portfolios. Since then, life has been tough as falling stock prices and bond defaults have hurt portfolios and falling bond yields have reduced...

Becoming a contender: new leadership, tighter focus, financial restructuring and stronger underwriting have turned Safeco around and prepared it to compete with the major players.(Commercial, Personal, Life and Investment)
October 1, 2003... From the look of it, Safeco's presence in Seattle is rock solid, with its 22-story office complex dominating the skyline some four miles north of downtown. But little more than two years ago, the business foundation of the 80-year-old company...

Uncovering value: by using embedded value reporting, insurers can get a clearer picture of where they are making--and losing--profits.(Accounting)
October 1, 2003... More and more companies worldwide are evaluating performance using value-based techniques such as embedded value. In the United States, however, embedded value reporting has been experiencing limited acceptance to date. Although a recent...

Room for recovery: by understanding how vehicle characteristics impact their auto salvage rate of recovery, insurers can reduce claims costs.(Auto Salvage)
October 1, 2003... Automobile insurers operate in an increasingly intense environment of price competition. Although prices in the auto insurance marketplace have been rising recently, several characteristics of the industry's structure make intense competition...

Putting up a good front: insurers, captives and buyers must fulfill specific responsibilities if fronting arrangements are to survive.(Alternative Market)
October 1, 2003... The captive fronting market is under siege at a time when the hard market is driving buyers to alternative insurance mechanisms. Although the current economic and political environment has influenced many industries, it has been particularly...

Watch your step: with careful risk management, insurers can succeed in employment-practices liability insurance, which is growing in volume and danger.(Employment-Practices Liability)
October 1, 2003... The employment-practices liability insurance market is projected to grow to $7 billion the next few years, but so far aren't many insurance-company takers. Approximately 100 carriers currently underwriting EPLI policies, yet observers believe...

Finding favor: the industry is weathering reactions to this hard market remarkably well.(Selling Insight)
October 1, 2003... It's pretty much the general wisdom that we're in a hard market today (some would say "At last!"). But it also should be part of the collective memory that in the past, hard markets have sent our public image spiraling down. Over the past...

Allstate hikes advertising spending, signs on as college football sponsor.(Marketplace)(Brief Article)
October 1, 2003... Allstate is tying a portion of its marketing to college football games. It has signed with ESPN and ABC as a major sponsor of the current season of college football and the Bowl Championship Series. Allstate will also sponsor the "Good...

Retooling the auditing process: an audit that is properly executed will capitalize on a great opportunity to improve.(Underwriting Insight)
October 1, 2003... The recent return to basics in the world of underwriting has placed a renewed emphasis on the underwriting audit process. With scores of new corporate programs and procedures being put into place, the natural next step is a follow-up audit to...

U.S. investment agency to offer terrorism insurance.(Loss/Risk Management Notes)(Brief Article)
October 1, 2003... The Overseas Private Investment Corp., a U.S. agency that helps American businesses invest overseas, said it's offering stand-alone terrorism insurance to protect U.S. interests abroad. OPIC's terrorism insurance will provide cover when...

Health-care organizations look to RRG to lower costs.(Loss/Risk Management Notes)(Brief Article)
October 1, 2003... As hospitals, physicians and nursing homes look to take control of their rising liability costs, many are turning to risk retention groups, a type of captive made possible by a 1986 federal law. So far this year, 32 risk retention groups...

IRC survey: homeowners support building codes' additional costs.(Loss/Risk Management Notes)(Brief Article)
October 1, 2003... Three-fourths of homeowners surveyed believed state and local requirements that new homes be built to withstand damage from natural disasters were an excellent or good idea and most said they'd be willing to pay more for it. According to a...

The co-sourcing solution: the changing environment makes it a top priority to optimize the activities of actuaries.(Loss/Risk Management Insight)
October 1, 2003... The dynamics and volatility of the current business environment are placing increasing pressure on the actuarial departments of insurance organizations. Pressure to increase efficiency and accountability and to produce lean budgets, the...

Planning ahead: while controversy and uncertainty about the estate tax rage, financial advisers can help small-business owners pass their assets on intact.(Estate Planning)
October 1, 2003... They chase the American dream. They are owners of small businesses, the kind who employ half of the nation's private work force. They work long hours, take big risks, help create the fabric of communities. Only some succeed. When they do, their...

Safe keeping: advance planning can protect the cash surrender values of life insurance policies when personal bankruptcy occurs.(Life Insurance)
October 1, 2003... Depending on the state of residence, bankcruptcy exemption laws may protect all, some or none of the cash surrender values of life insurance policies. To protect the greatest amount possible, policyowners and agents need to know the state...

Lifetime Income product offers unusual features.(New Products and Services)(Brief Article)
October 1, 2003... Lifetime Income Product Offers Unusual Features: New York Life Insurance Co. has introduced Lifestages Lifetime Income Annuity. In addition to income for life, the product offers a payment-acceleration feature for short-term liquidity needs and...

Prudential liberalizes underwriting guidelines.(New Products and Services)(Brief Article)
October 1, 2003... Prudential Liberalizes Underwriting Guidelines: Prudential Financial has liberalized its life insurance build requirements for ages 18 to 64, thus making lower premiums available to more people. Build reflects a person's height/weight range and...

Phoenix offers ordinary investors hedge-fund exposure.(New Products and Services)(Brief Article)
October 1, 2003... Phoenix Offers Ordinary Investors Hedge-Fund Exposure: Phoenix investment Partners, the asset-management unit of Phoenix Cos. Inc., has launched two mutual funds, the Select Wealth Builder and Wealth Guardian, that will allocate about 5% of...

Spiking nursing home costs may hurt LTC insurance sales.(Marketplace)
October 1, 2003... Average nursing home costs rose far more quickly than general inflation during recent periods, according to two studies released in August. Results may spur more people to buy long-term-care insurance--or may have the opposite effect. The...

Variable annuity sales rise sharply.(Marketplace)(Brief Article)
October 1, 2003... Sales of variable annuities in the United States rose to $32.6 billion in the second quarter of 2003, 11.4% more than those a year earlier, with net flows growing even taster, according to the National Association for Variable Annuities....

Remember the customer? Customers no longer want to wait to make a purchase. The life insurance industry must move faster to give customers what they want, or risk losing business.(Selling Insight)
October 1, 2003... Anyone taking a quick look at those of us in the life insurance industry might think that we're confused. The casual observer might say: "They sell a product that millions of people put at the top of their list of payments so they don't lose...

Missing the forest for the trees: Sarbanes-Oxley focuses on the historical reporting process, when what's really needed is a hard look at key business and operating processes.(Underwriting Insight)
October 1, 2003... Quarterly certifications of financial statements and disclosures. Annual reporting on the effectiveness of financial reporting controls. Increased financial statement disclosures about fair values and their sensitivity. Audit committee...

Protecting the protectors: a new federal law is designed to encourage businesses to produce anti-terrorism technology by limiting their potential liability.(General Liability)
October 1, 2003... Liability insurers stand to gain a new niche market and reap the benefits of tort reform tinder a new federal law that protects businesses involved in the fight against terrorism. The Support Anti-terrorism by Fostering Effective Technology...

Strategic marketing technology: information technology is being used to take strategic marketing to the next level.(Technology Insight)
October 1, 2003... Insurers are shifting their attention from the recent cost reduction focus back to profitable growth. Leading insurers are now using technology-enabled strategic marketing approaches to more effectively identify where and how to best achieve...

DWL.(Web News You Can Use)(DWL Insurance announces plans to offer customer relations and self-service transactions online)(Brief Article)
October 1, 2003... DWL recently announced its plans to deliver customer management and self-service transactions for the insurance industry through integration with IBM WebSphere Portal Server to help create a customer-focused on-demand workplace. DWL Insurance...

DxCG Inc.(Web News You Can Use)(launches predictive modeling tools on website)(Brief Article)
October 1, 2003... DxCG Inc. introduced three new modules to RiskSmart, its Web-based suite of predictive modeling tools. The care and disease management module identifies potential high-cost cases and targets them for the appropriate level of disease and care...

edocs Inc.(Web News You Can Use)(technology deployed by Blue Cross and Blue Shield of Minnesota)(Brief Article)
October 1, 2003... edocs Inc., which provides customer self-service and e-billing software solutions, announced that Blue Cross and Blue Shield of Minnesota has deployed its technology platform to provide members with online access to the Explanation of Benefits...

Manulife USA.(Web News You Can Use)(new calculator tool available on website)(Brief Article)
October 1, 2003... Manulife USA recently launched its new Tax Advantaged Calculator, which compares investing in a 529 savings plan vs. investing in other taxable accounts and provides financial consultants with a proposal letter or a custom illustration to use...

Survey: most Americans don't use web to research, buy life insurance.(Technology Notes)(Brief Article)
October 1, 2003... Despite widespread use of the Internet for researching and purchasing other goods and services, 79% of Americans say they don't go online to research life insurance, and 88% don't buy life insurance over the internet, according to a survey...

New risk exposure standards win approval by members of ACORD.(Technology Notes)(Association for Cooperative Operations Research and Development)(Brief Article)
October 1, 2003... Lloyd's Market Associations' data elements and guidelines for the commercial property, household, onshore energy and fine art business were recently added to the Association for Cooperative Operations Research and Development's global data...

Axa Financial makes offer of $1.5 billion for MONY Group.(Companies)(Brief Article)
October 1, 2003... Axa Financial Inc., the financial services affiliate of France's Axa Group said it would acquire New York-based MONY Group Inc. for $1.5 billion in cash, in a move that Axa said would boost its distribution reach by nearly 25% and open new...

Cigna settles class-action suit with physicians for $400M +.(Companies)(Brief Article)
October 1, 2003... Cigna Corp. has become the second health insurer to settle a class-action lawsuit with some 700,000 physicians nationwide in an agreement valued at more than $400 million. In the settlement, Cigna agreed to change its payment practices,...

AIG to pay $10 million civil fine due to SEC fraud investigation.(Insurance giant American International Group Inc., U.S. Securities and Exchange Commission)(Brief Article)
October 1, 2003... Insurance giant American International Group Inc. has agreed to pay a $10 million civil fine to settle allegations from the U.S. Securities and Exchange Commission that one of its subsidiaries fraudulently helped a wireless phone company hide...

Dentists, Aetna settle lawsuit.(American Dental Association )(Brief Article)
October 1, 2003... The American Dental Association has agreed to end a national class-action lawsuit against Aetna Inc. in a $5 million settlement in which the insurer has agreed to pay claims more quickly and communicate more effectively with dentists. In...

Aegon restructures U.K. life units.(Brief Article)
October 1, 2003... Aegon N.V. said it has restructured its U.K. operations, bringing four separate business units under the roof of the newly created Aegon UK Life & Pensions. The changes, which are effective Oct. 1, don't affect the brand names customers...

Finding the cure: although insurers don't typically target new prospects via e-mail, legal definitions of spam could affect communication with existing customers.(E-Mail)
October 1, 2003... The familiar chime of "you've got mail" can be a welcome sound... or an unwanted nuisance. The volume of spam--unsolicited commercial e-mail messages and promotional advertisements--that fills computer in-bins each day has risen to record...

Empowering the victims: insurers are dealing with a daily deluge of spam, and technology is one tool to help ward off the growing mounds of unsolicited messages.(E-Mail)
October 1, 2003... As the number of unsolicited commercial e-mails swells, insurers--along with everyone else--are getting caught in the flood. Approximately 10% of a working day is spent dealing with unsolicited e-mail, according to MessageLabs, which provides...