Best's Review articles from October 2005

Best's Review archives from October 2005

Keeping the faith.(Editor's Prologue)(Hurricane Katrina, 2005 and insurance industry)(Editorial)
October 1, 2005... As the nation reeled in shock at the horror Hurricane Katrina wreaked across New Orleans and surrounding communities in August's final week, the insurance industry prepared to play its part in responding to the catastrophe and braced itself for...

New blood needed in insurance industry.(Comment)(Letter to the Editor)
October 1, 2005... The July Best's Review edition article "Recruiting Centers," touched on a topic very critical to the insurance industry. A crisis exists in our industry. This is not a looming crisis, an impending crisis or an inevitable crisis. This is a...

Clarification.(Correction Notice)
October 1, 2005... The following is a clarification of a sentence about Assurant Employee Benefits' new Serious Disability, product that appeared in the September Best's Review article, New Direction for Disability: The benefits last up to six months for...

Claims adjusters struggle to work amid Gulf storm's devastation.(Insurance claims adjustment)
October 1, 2005... Claims adjusters struggling to do their jobs in areas devastated by Hurricane Katrina have faced monumental hurdles--a lack of lodging, a shortage of gasoline, inaccessible areas and policyholders who have been evacuated or left the area. ...

Coverage disputes inevitable after Katrina.
October 1, 2005... It's a hot-button issue that Louisiana's property insurers likely don't even want to think about, but it's bound to happen in the aftermath of the widespread destruction of Hurricane Katrina. The inevitable, say industry experts and attorneys,...

Miss. sues for insurers to cover flood damage.(Brief Article)
October 1, 2005... Mississippi Attorney General Jim Hood has asked a court for a temporary restraining order that seeks to have the flood exclusions in homeowners insurance policies declared null and void. The suit, filed in the Chancery Court of Hinds County,...

Gulf states' high-risk pools may need to assess insurers.(property and casualty insurance)
October 1, 2005... Three Gull Coast states' high-risk insurance pools are quite likely to face the test of their financial wherewithal in the aftermath of the damage infected by Hurricane Katrina. Officials are confident they have enough funds to pay homeowners...

Health concerns follow hurricane Katrina's fury.(Brief Article)
October 1, 2005... Though the storm has passed, the potential for health concerns following Hurricane Katrina is only beginning. Contaminated water, injuries sustained both during and after the storm and individuals left without medications are just some of...

A.M. best comments on hurricane Katrina's impact.(A.M. Best Co.)(Brief Article)
October 1, 2005... In response to Hurricane Katrina, A.M. Best Co. has begun to aggregate public and private information in order to assess the financial impact it will have on the global property/casualty insurance and reinsurance industry. A.M. Best expects...

BI policies play big role in Miss. casino recovery.(BancorpSouth Insurance)
October 1, 2005... Just two months before the most devastating hurricane in U.S. history slammed its shores, the City of Biloxi, Miss., purchased an insurance policy to protect against revenue losses should a storm or hurricane close down its casinos. For a...

La. Commissioner 'sickened' by Katrina's path of destruction.(Briefing)(J. Robert Wooley )
October 1, 2005... When reports started streaming in, telling of a Category 5 hurricane that was headed for the coast of Louisiana, state Insurance Commissioner J. Robert Wooley hoped for the best. For one, the storm appeared to be veering east of New...

Miss. regulator faces Katrina's aftermath.(Briefing)(Mississippi Insurance Commissioner George Dale)
October 1, 2005... Mississippi Insurance Commissioner George Dale has been on the job for 30 years. He's seen hurricanes come and go. But the ruins left by Hurricane Katrina, viewed from a Federal Emergency Management Agency helicopter on Sept. 6, took his breath...

Catastrophes in perspective.(Brief Article)
October 1, 2005... Hurricanes are the biggest causes of insured property losses. Of the 25-largest insured property losses in the United States, hurricanes are responsible for 15 slots, according to A.M. Best data and the Insurance Services Office. The Insurance...

Meetings.(Calendar)
October 1, 2005... Oct. 16-18 LOMA/LIMRA: Caribbean Conference, Accra Beach Hotel, Christ Church, Barbados. Phone: (770) 984-3760 Web site: www.loma.org Oct. 16-18 E-Fusion 2005: Technology Conference sponsored by A.M. Best Co. Hyatt Regency Hotel,...

WellPoint Inc.(Marjorie Dorr, Mark Boxer and Dijuana Lewis appointed)(Brief Article)
October 1, 2005... WELLPOINT INC. has named MARJORIE DORR executive vice president and chief strategy officer. The company also named MARK BOXER presi-dent and chief executive officer of con-sumer-driven health plans, enterprise services and Medicare government...

AVIVA PLC.(Life)(appointment of Lord Colin Sharman)(Brief Article)
October 1, 2005... LORD COLIN SHARMAN, former chairman of consultants KPMG International, will become chairman of AVIVA PLC as of Jan. 1, 2006. Sharman, 62, will succeed Pehr Gyllenhammar. Sharman has been on Aviva's board since the beginning of 2005. He...

ACE USA.(Carl L. Bach appointed)(Brief Article)
October 1, 2005... ACE USA has named CARL L. BACH executive vice president of ACE Global Solutions. Bach will be responsible for setting and driving the new direction for ACE USA's new Global Solutions business operations, which will be focused on delivering...

Guy Carpenter & Co.(David Spiller appointed)(Brief Article)
October 1, 2005... GUY CARPENTER & CO. has named DAVID SPILLER as president, effective Jan. 1, 2006. Spiller will be responsible for developing strategic plans for Guy Carpenter's global enterprise. Prior to joining Guy Carpenter & Co., Spiller was chief...

New RJF president's plans include development of talented leaders.(People in Insurance)(appointment of Tim Fleming and Jill Lowder at RJF Agencies)(Brief Article)
October 1, 2005... RJF Agencies, based in Minneapolis, has named two promotions within its executive management team. Tim Fleming has been named president of the company, and Jill Lowder is now the chief operating officer. Fleming has been with RJF since...

Christine Mead, Safeco's chief financial officer and president of service, technology and finance.(appointments)(Brief Article)
October 1, 2005... CHRISTINE MEAD, SAFECO'S chief financial officer and president of service, technology and finance, announced plans to retire effective Dec. 31. Mead joined Safeco in January 2002 as senior vice president and chief financial officer.

Autoone Insurance.(appointment of Paul Difrancesco)(Brief Article)
October 1, 2005... AUTOONE INSURANCE has named PAUL DIFRANCESCO senior vice president and chief operating officer. DiFrancesco will be responsible for the development and execution of organizational strategies and programs that support business objectives....

American International Group's Global Investment Group.(Property/Casualty)(appointment of Robert Thompson at Global Investment Group)(Brief Article)
October 1, 2005... AMERICAN INTERNATIONAL GROUP'S GLOBAL INVESTMENT GROUP has named ROBERT THOMPSON senior managing director of alternative investments. Thompson will be responsible for all private equity and hedge fund activities globally. Most recently,...

Selective Insurance Group Inc.(John Marchioni and Kathy Muedder appointed)(Brief Article)
October 1, 2005... SELECTIVE INSURANCE GROUP INC. has named JOHN MARCHIONI senior vice president of personal lines underwriting of Selective Insurance Company of America, and vice president of Selective Insurance Group. The company also named KATHY MUEDDER senior...

Universal Insurance Holdings Inc. has named Sean Downes chief operating officer and senior vice president of the company.(people)(Brief Article)
October 1, 2005... UNIVERSAL INSURANCE HOLDINGS INC. has named SEAN DOWNES chief operating officer and senior vice president of the company. Downes had been chief operating officer and a director of Universal Property & Casualty Insurance Co. since July 2003....

Willis Group Holdings.(Ronald L. Alexander and Sean Cogan appointed)(Brief Article)
October 1, 2005... WILLIS GROUP HOLDINGS has named SEAN COGAN senior vice president and regional manager of its Japan practice group. Based in Dublin, Ohio, Cogan will be responsible for developing and growing the Japan Practice Group, assisting producers with...

The Reinsurance Association of America.(Tracey Laws appointed )(Brief Article)
October 1, 2005... THE REINSURANCE ASSOCIATION OF AMERICA has named TRACEY LAWS senior vice president and general counsel. Most recently, Laws was a partner in the law firm of Chadbourne & ParLe LLP, where she focused on insurance and reinsurance.

Progressive spots have sports twist.(Progressive Direct)(Brief Article)
October 1, 2005... PROGRESSIVE DIRECT rolled out three new 30-second television commercials that use simplified sports to illustrate how easy it is to buy direct from the third-largest private-passenger U.S. auto insurer. One commercial shows goiters using...

The big number.(Brief Article)
October 1, 2005... 233 Million The number of print "lookups" the "Insurance" Yellow Pages heading generates per year, ranking 12th out of more than 4,000 headings. Source: Yellow Pages Association Insurance Marketing is compiled by Managing Editor...

The picture of health.(advertising campaign )(Brief Article)
October 1, 2005... THE SECOND WAVE OF KAISER PERMANENTE'S EYE-CATCHING "Thrive" advertising campaign is designed to send positive, healthy eating/active living messages to consumers via billboards and magazine, newspaper, radio and television advertising. ...

Allstate Insurance Co.(marketing deal)(Brief Article)
October 1, 2005... ALLSTATE INSURANCE CO. "netted" a marketing deal with college football this fall in which its "Good Hands" logo will appear on the goalpost netting of more than 30 Division 1-A college football stadiums. The marketing deal is part of AIIstate's...

New look for LTC products.(Long Term Care )(Brief Article)
October 1, 2005... Several companies have announced new plans for their long-term-care insurance businesses. The John Hancock Long Term Care Insurance business unit has announced it will offer later this year a Manulife-branded niche LTC insurance product...

New coverage for serious collectors.(Brief Article)
October 1, 2005... Fireman's Fund, Novato, Calif., has reintroduced its Prestige Collections policy, augmenting it with national risk-appraisal and risk-management services and customized pricing. The policy addresses the needs of art investors. These...

Income guaranty with an upside.(Brief Article)
October 1, 2005... Nationwide Financial has introduced a rider to its America's Income Annuity that offers an annual step-up to its income floor guarantee. The patent-pending Step-Up Guarantee ensures that variable annuity payments will equal at least 75% of the...

Pacific Life adds equity indexed UL.(universal life insurance )(Brief Article)
October 1, 2005... Pacific Life Insurance Co. in August launched Pacific Indexed Accumulator, an equity indexed universal life insurance product that offers both an indexed account linked to the S&P 500 Index and an account with traditional fixed interest rates....

New Phoenix VA: suites of riders.(Brief Article)
October 1, 2005... The Phoenix Cos. has introduced Phoenix Dimensions, a variable annuity offering the full range of living and death guaranteed benefits. They include a minimum withdrawal benefit, minimum accumulation benefit, minimum income benefit, and death...

The leading causes of long-term care *.(Illustration)
October 1, 2005... The Leading Causes Of Long-Term Care * Alzheimer's disease 31% and related dementia Circulatory disease 16% and hypertension-related Parkinson's and other 14% central-nervous-system conditions Stroke ...

Learn more.(New Products)
October 1, 2005... John Hancock Life Insurance Co. A.M. Best Company # 06681 Distribution: Career agents, independent agents and other third-party producers Penn Treaty Network America Insurance Co. A.M. Best Company # 06385 Distribution: Independent...

Best's rating changes.
October 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...

Guide to best's financial strength ratings.
October 1, 2005... GUIDE TO BEST'S FINANCIAL STRENGTH RATINGS A Best's Rating is an independent opinion, based on a comprehensive quantitative and qualitative evaluation, of a company's balance sheet strength, operating performance and business profile....

Fighting on new fronts: Pharmaceutical fraud leads a host of new ways crooks are scamming insurers, but armed with high-tech tools, insurers are fighting back.(Health/Employee Benefits)
October 1, 2005... Key Points * Health-care fraud constitutes $1 out of every $10 spent on health care. * Medicare lost nearly $12 billion to fraudulent or unnecessary claims in 1998. * Billing for services not rendered and misrepresentation of...

Price wars: as State Farm drives into tiered pricing, private-passenger auto writers are bracing for renewed competition.(Property/Casualty)(automobile insurance market share)
October 1, 2005... Key Points * State Farm's entry into tiered pricing signals advanced competition among private-passenger auto carriers. * Competitors using tiered pricing are increasing their market shares, while State Farm's share has dropped. *...

Predictive modeling: property/casualty writers can learn to offset rising medical costs by importing a simple profitability tool fromgroup health.(Property/Casualty)
October 1, 2005... In the race to sustain profitability, property/casualty insurers might take note of the new ways group health is containing ever-escalating medical costs. This could be especially helpful to workers' compensation writers, who have had to accept...

Protecting the pledge: the quest for cohesive U.S. insurance regulation spans three centuries, and an end to the journey still isn't assured.(Foundations of Regulation)
October 1, 2005... Key Points * Central themes of U.S. insurance regulation--regular financial reporting, safeguarding insurers' solvency and ensuring fairness to consumers--emerged early in the nation's history. * The need for more uniform regulation...

Technology resources: the role of technology in business keeps growing, and it is hard to keep up with the latest innovations. These are some of the companies that offer products and services aimed at the special needs of professionals in the insurance industry.(Directory)
October 1, 2005... Agile Technologies, 685 Route 202/206, Bridgewater, NJ 08807. Phone: 877-347-0228, 908-253-9550. Web site: www.agiletech.com. Asset Marketing Systems, 9715 Businesspark Ave., San Diego, CA 92131. Phone: 888-303-8755. Web site:...

Sunrise or sunset: agents and brokers fear an end to TRIA could signal an end to the industry.(Terrorism Risk Insurance Act of 2002)
October 1, 2005... Key points * TRIA was intended to be a temporary measure to help the insurance industry recover from the terrorist attacks of Sept. 11, 2001; the law expires Dec. 31. * Agents and brokers want TRIA extended while a permanent solution,...

Family planning: family-owned businesses hold a gold mine of opportunities for financial advisers.(surveys)
October 1, 2005... Key Points * Family firms comprise 80% to 90% of all North American businesses. * The Phoenix Wealth Survey reports 68% of affluent family business owners have no business succession plans and 47% of respondents don't invest time to...

The human touch: insurers and agents must judge which customers would rather buy products online without assistance vs. those who prefer the human touch.(online transaction methods used by insurance industry)
October 1, 2005... Many insurance executives and managers once thought--or feared--that as computer literacy increased in the general population, new technology-based distribution systems would dominate the sale of all financial products much as Automatic Teller...

ERM: an indispensable tool: enterprise risk management is essential for life insurers seeking to grow shareholder value without taking undue risk.(Life)
October 1, 2005... Life insurers today are operating in a rapidly changing and unpredictable environment. As the competitive environment gets tougher and tougher, stakeholders have become ever more demanding. Shareholders insist on exceptional performance without...

Securitization's big bang: leaders of North American life insurers say they are considering securitization as never before.(Reinsurance/Capital Markets)(survey)
October 1, 2005... Key Points * The growth of securitization in life insurance is likely to be more robust than the equivalent catastrophe bonds on the P/C side. * The increased interest is evidence of higher reinsurance pricing and the growing...

Life Insurers' assets continue growing.(markets)
October 1, 2005... Life insurers' asset distribution continues to reflect shorter durations and increased liquidity in anticipation of reinvestment opportunities at higher interest rates. The industry's overall asset allocation mix remains steady with only slight...

Fixed-income holdings lead P/C assets' rise.(property/casualty )
October 1, 2005... The property/casualty insurance industry recorded a $110.4 billion (9.4%) increase in total admitted assets during 2004. The vast majority of the increase, $80.1 billion (72.6%), was attributable to the nominal dollar increase in consolidated...

Security gap: as employers reduce and eliminate retiree health benefits, individuals must take up more of the burden.(retirement planning)
October 1, 2005... Key Points * Saving for health-care expenses in retirement is a growing element of retirement planning. * For many reasons, baby boomers are particularly at risk for a retiree health-dollar shortfall. * New kinds of health plans...

A century of independent service: Van Gilder Insurance Corp. marks a milestone with sales of more than $400 million.(Agent/Broker)
October 1, 2005... Van Gilder Insurance Corp. of Denver, one of the largest independent insurance brokerage firms in the Rocky Mountains region, celebrates its 100th anniversary this year. A full-service agency with an emphasis on commercial insurance, the...

How to build a recovery: one company's successful financial turnaround shows that procedures in all aspects of operations have to be adjusted to make corporate collection efforts work.(Property/Casualty)(Column)
October 1, 2005... Key Points * Underwriting, reinsurance, billing and collections, audit, legal, accounting and claims all affect collections. * A specific date should be set to differentiate run-off business from start-anew business. * Performance...

Hedge fund heyday: explosive growth in the number of hedge funds, coupled with increased regulatory scrutiny, has led to this niche market increasing its demand for insurance.(Reinsurance/Capital Markets)
October 1, 2005... Key Points * The number of hedge funds is growing by 20% annually, increasing the demand for directors and officers and errors and omissions insurance. * Regulators are considering stepping up oversight of hedge funds, which also...

Artificial evolution: the fourth generation of artificially intelligent underwriting systems produces an instant policy.(Technology)(Column)
October 1, 2005... Key Points * Fourth-generation artificially intelligent underwriting requires only a name and one identifying piece of information from an agent or an applicant. * Virtually all underwriting and policy information is developed from...

A convergence of innovation: converged networks are providing insurers cost savings and the ability to maximize existing IT investments.(Technology)
October 1, 2005... The insurance industry is experiencing notable success as it begins to come down from the top of the most recent underwriting cycle. The first half decade of this nascent century finds many insurers becoming integral components of today's...

Blue Cross Blue Shield of Nebraska.(Brief Article)
October 1, 2005... Blue Cross Blue Shield of Nebraska recently selected HealthTrio Connect as its single, online platform for providing e-health services to its health-care community. HealthTrio Connect enables two-way communication between the plan, providers,...

InsWeb.(Brief Article)
October 1, 2005... InsWeb launched a new agent-lead-generation program-AgentInsider--which will broaden the reach of agents by connecting them with millions of online consumers shopping for insurance coverage. It provides agents with flexibility and control over...

Kemper Auto and Home.(Brief Article)
October 1, 2005... Kemper Auto and Home, a Unitrin Co., implemented into its policy-quoting system ISO HomeValue, a Web-based residential replacement cost estimator. ISO HomeValue streamlines underwriting work flow, allowing Kemper Auto and Home's independent...

St. Paul Travelers.(Brief Article)
October 1, 2005... St. Paul Travelers announced that Fair Access to Insurance, its course in insurance ethics, is now available to agents and brokers through the Big "I" Virtual University, provided by the Independent Insurance Agents and Brokers of America Inc....

Growth of NAIC databases may worsen data flow, some fear.(Technology)(National Association of Insurance Commissioners)
October 1, 2005... Proposals to house a number of new central databases at the National Association of Insurance Commissioners, while intended to improve the flow of information between states and insurers, are raising concern among insurance industry advocates...

Election expectations: New Jersey and Virginia are in the gubernatorial election spotlight this year, but legislative races in those states may affect insurance more.(Regulatory/Law)
October 1, 2005... As elections go, this year's represents a breather from last year's high stakes and next year's heavy load of gubernatorial and insurance commissioner races. This year, there are no commissioner races, and gubernatorial elections only in...

A litigious state of mind: wasting away again in Insuranceville: corporate misconduct leads to a new era in insurance claims.(Regulatory/Law)
October 1, 2005... Since the 2001 Enron collapse, corporate misconduct has been a leading story on the business pages. We have seen indictments, trials and convictions. From an insurance perspective, we now are seeing the ultimate result: insurance coverage...

Sweat the small stuff: advertising compliance shouldn't be ignored--it could cost agents their licenses.(Agent/Broker)
October 1, 2005... Key Points * Some state insurance departments require multipage disclosures for certain products. * Before publishing or distributing any materials, agents should submit them to the insurer's compliance department for approval. *...

The power of point of view: truly innovative ideas consist of thinking about familiar things in unfamiliar ways, but how can one distinguish really good ideas from those that are mere gimmicks?(Property/Casualty)(Enterprise Risk Management)(Column)
October 1, 2005... Want instant success? Just browse the business section of an airport bookstore, where you can learn how to reengineer the firm, how to be a one-minute manager, the 10 ways to capitalize on Internet marketing, the five key ways to think like a...

Industry study: crash risk while using cell phone is four times higher.(Property/Casualty)
October 1, 2005... The Insurance Institute for Highway Safety has found using a cell phone while driving increases the risk of injury-causing crashes by four times. Hands-free phones are just as risky as hand-held cell phones, the study found. "This isn't...

Aggressive accounting techniques more likely to lead to lawsuits.(Property/Casualty)(Brief Article)
October 1, 2005... Companies that book high rates of accruals or employ other so-called "aggressive" accounting techniques are more likely to face shareholder lawsuits--even lawsuits not related to the accounting--according to a new study from Criterion Research...

Risk managers want to use enterprise risk management.(Property/Casualty)(Brief Article)
October 1, 2005... A survey of risk management executives found 90% are building or want to build an enterprise risk management process into their organizations, but only 11% report they've completed the implementation. The survey, by the Conference...

Sobering survey: the Insurance Information Institute's annual public attitude poll finds investigations into the industry may have alienated core constituencies.(Property/Casualty)
October 1, 2005... Have government investigations into our industry damaged our image? The Insurance Information Institute has conducted its public attitude poll since 1968. One of its assets is that we have asked the same questions about comparative industry...

Old Mutual launches bid for Skandia Group.(Brief Article)
October 1, 2005... Old Mutual plc has made it official, going public with a bid to acquire Sweden's Skandia Group. The London-based financial services group with South African roots said it would offer 3.3 billion [pounds sterling] (about $5.9 billion) for...

Goldman Sachs buyer of Allmerica's run-off life.(Brief Article)
October 1, 2005... Allmerica Financial Corp. will sell its run-off variable life insurance and variable annuity business to investment bank Goldman Sachs Group Inc. The transaction includes the sale of Allmerica's main life insurance company, Allmerica...

USI Holdings buys broker, sets its next acquisition.(Winthrop Insurance )(Brief Article)
October 1, 2005... USI Holdings Corp. completed its acquisition of Burlingame, Calif.-based retail property and casualty brokerage firm Winthrop Insurance Plans and announced it expects to close another purchase. The ninth-largest U.S. insurance broker, USI...

XL America to buy Argonaut's risk management renewals.(Companies)(Brief Article)
October 1, 2005... Bermuda-based XL Capital Group Ltd. said its U.S. holding company has agreed to acquire the renewal rights to "a substantial portion" of Argonaut Insurance Co.'s risk management book of business in the United States. Mark E. Watson III,...

Playing it smart: as small, fuel-efficient Smart Cars enter the U.S. market, insurers examine their loss experience and safety.(DaimlerChrysler AG)
October 1, 2005... With gas prices reaching an all-time high and traffic congestion clogging many of the nation's highways, some U.S. drivers are making a "smart" choice when it comes to buying an automobile. Fuel-efficient, gas-powered Smart Cars that are...