Best's Review articles from October 2006

Best's Review archives from October 2006

Keeping watch.(Editor's Prologue)
October 1, 2006... AS the November 2006 U.S. elections approach, insurers are paying close attention to numerous races, knowing the industry has much at stake. At the state level, "they're all important to us because we are a state regulated industry" said John...

Quote/unquote: excerpted from BestWeek.(Comment)
October 1, 2006... "I've been a lawyer, a college professor, an investment banker, an insurance company CEO, a regulator, and a trade association executive. And I've enjoyed each phase of my career. I plan to continue to work within the financial and insurance...

African broker Alexander Forbes might be abandoning global goals with risk unit sale.(Briefing: Highlights From BestWeek)
October 1, 2006... In a deal that will create an organization with more than $600 million in revenue, U.S. broker Lockton Inc. has agreed to pay 6 million [pounds sterling] (about $163 million) for the international insurance and risk service operation of South...

Alien reinsurance collateral: divide sharpens.(Briefing: Highlights From BestWeek)
October 1, 2006... The move to change the collateral rules as they apply to alien reinsurers has come one step closer to completion as the project now rests with a senior committee of the National Association of Insurance Commissioners. At the NAIC's Fall...

So-called earthquake suit.(100 YEARS AGO in Best's Review)
October 1, 2006... The effects of the Great San Francisco Earthquake and Fire lingered into the October 1906 issue of Best's Review. The magazine reported on a supposed earthquake suit in which Levi Strauss & Co. suffered fire losses, but was turned down for...

2006 Annual Global Reinsurance report.(By the Numbers)(Statistical table)(Report)
October 1, 2006... In 2005, property/casualty reinsurers endured the largest insurable event in history in the aggregate losses from hurricanes Katrina, Rita and Wilma. The U.S. hurricane season accounted for roughly two-thirds of the record global insured...

Meetings.(Briefing)(Brief article)(Calendar)
October 1, 2006... Oct. 15-18 Society of Actuaries: Annual Meeting and Exhibit, Sheraton Hotel & Towers, Chicago. Phone: (847) 706-3544 Web site: www.soa.org Oct. 22-24 American Council of Life Insurers: Annual Conference, Omni ChampionGate,...

Best's insurance stock indices.(Briefing)(Statistical table)(Brief article)
October 1, 2006... [GRAPHICS OMITTED] Four Weeks Ended September 14, 2006 Percent Change Index Month/ Year to Year/ ...

Katrina's commercial claims stall as disputes escalate.(Briefing)(Brief article)
October 1, 2006... One year after Hurricane Katrina, a substantial number of commercial insurance claims remain unresolved and tied up in litigation. New lawsuits arising from coverage disputes continue to flood the courts. But John Eager, senior director of...

Lockton Insurance Brokers.(Agent/Broker)(Adam McDonough)(Brief article)
October 1, 2006... LOCKTON INSURANCE BROKERS has named ADAM MCDONOUGH president and chief executive officer of its San Francisco office. McDonough has been an executive vice president at Lockton for the past two years.

ABD Insurance and Financial Services.(Agent/Broker)(Paul Weinhold appointed as executive vice president )(Brief article)
October 1, 2006... ABD INSURANCE AND FINANCIAL SERVICES has named PAUL WEINHOLD executive vice president in its Seattle office. Most recently, Weinhold was chief executive officer of Willis of Oregon

Guy Carpenter & Co.(Agent/Broker)(Guy Carpenter and Company Inc. appoints John Carroll as senior vice of broking )(Brief article)
October 1, 2006... Guy Carpenter & Co. has named JOHN CARROLL senior vice of broking in its Sydney, Australia, office, effective Aug. 1. Most recently, Carroll was head of Swiss Re's client management team for Australia and New Zealand.

Liberty International Underwriters.(Property/Casualty)(Denise Morris appointed as senior vice president)(Brief article)
October 1, 2006... LIBERTY INTERNATIONAL UNDERWRITERS has named DENISE MORRIS excess liability/umbrella senior vice president. Morris will be overseeing all U.S. business for that product line. Most recently, Morris was vice president in charge of excess...

Endurance Worldwide Insurance Ltd., is retiring.(Property/Casualty)(Mark Boucher retires from the post of chief executive officer)(Daniel Izard appointed as interim chief executive officer)(Brief article)
October 1, 2006... ENDURANCE SPECIALTY HOLDINGS LTD. said MARK BOUCHER, chief executive officer of its London subsidiary, Endurance Worldwide Insurance Ltd., is retiring Jan. 7, 2007. The company has named DANIEL IZARD, president and CEO of Endurance's...

Prieur takes over as Conseco's new chief executive officer.(People in Insurance)(C. James Prieur)(James E. Hohmann promoted as interim chief executive officer)(Brief article)
October 1, 2006... Conseco Inc. has named C. James Prieur as chief executive officer effective Sept. 7. He succeeds William S. Kirsh, who resigned as president and CEO in May. Prieur joins Conseco from Toronto-based Sun Life Financial Inc., where he was...

American International Group Inc.(Property/Casualty)(Nicholas Ashooh appointed as senior vice president of communications)(Brief article)
October 1, 2006... AMERICAN INTERNATIONAL GROUP INC. has named NICHOLAS ASHOOH senior vice president of communications. Prior to joining AIG, Ashooh was vice president of corporate communications for American Electric Power in Columbus, Ohio. Previously, he...

St. Johns Insurance Co.(Property/Casualty)(Reese I. Bowen appointed as president)(Brief article)
October 1, 2006... ST. JOHNS INSURANCE CO. has named REESE I. BOWEN president. Previously, Bowen was managing director and underwriting director with St. Johns. During his career, he has held senior management positions with Midland Intermediary, AIG Risk...

St. James Insurance Group.(Property/Casualty)(Robert Lucas)(Brief article)
October 1, 2006... ST. JAMES INSURANCE GROUP has named ROBERT LUCAS as president. Formerly an executive vice president with St. James, Lucas has been responsible for all aspects of operations, including claims, marketing and underwriting. Before that, Lucas...

Praetorian Financial Group.(Reinsurance/Capital Markets)(Laurie Banez Lopes )(Brief article)
October 1, 2006... PRAETORIAN FINANCIAL GROUP has named LAURIE BANEZ LOPES senior vice president, management and professional liability practice leader. Most recently, Lopes was executive vice president of Axis U.S. Insurance.

Aspen Insurance Holdings Ltd.(Reinsurance/Capital Markets)(Stuart Sinclair appointed as president and chief operating officer )(Brief article)
October 1, 2006... ASPEN INSURANCE HOLDINGS LTD. has named STUART SINCLAIR president and chief operating officer of Aspen. It also is expected that Sinclair will join the company's board. Most recently, Sinclair was president and chief executive officer of...

Renaissancere Holdings Ltd.(Reinsurance/Capital Markets)(Todd Fonner appointed as chief risk officer and chief investment officer)(Brief article)
October 1, 2006... RENAISSANCERE HOLDINGS LTD. has named TODD FONNER chief risk officer and chief investment officer. He will be responsible for leading the ongoing assessment of the overall risk profile of RenaissanceRe Holdings Ltd. Former joined...

Life of the South.(Reinsurance/Capital Markets)(Daniel Reppert appointed as senior vice president and chief actuary)(Brief article)
October 1, 2006... LIFE OF THE SOUTH has named DANIEL REPPERT senior vice president and chief actuary. Most recently, Reppert was chief risk officer for Wachovia Corp. in Charlotte, N.C.

Renaissancere Holdings Ltd.(Travis Lewis appointed)(Brief article)
October 1, 2006... RENAISSANCERE HOLDINGS LTD. has named TRAVIS LEWIS chief operating officer of Glencoe Group Holdings Ltd., the holding company for RenaissanceRe's individual risk business. Most recently, Lewis was founder and chief executive officer of...

In memoriam.(People in Insurance)(Robert E. Gallagher of Arthur J. Gallagher & Co,.)(Robert Francis McDermott)(Obituary)(Brief article)
October 1, 2006... * ROBERT E. GALLAGHER, chairman of insurance broker ARTHUR J. GALLAGHER & CO., died Aug. 30. Gallagher, 83, joined his father's insurance agency in 1947 after graduating from Cornell University. He was named president and CEO of the...

Hartford Financial.(Advertising, Branding News)(Hartford Fire Insurance Co.)(Advantus Capital Management sues Aetna Inc.)
October 1, 2006... HARTFORD FINANCIAL is committed to running a quarter-page black and white ad every Wednesday in The Wall Street Journal's Personal Journal section. The ad is targeting affluent baby boomers and broker/financial planners.... A federal district...

Do the right thing.(BRANDING)(Liberty Mutual Insurance Co. and Hill, Holliday, Connors, Cosmopulos Inc.)(Brief article)
October 1, 2006... LIBERTY MUTUAL recently launched its "Responsibility: What's Your Policy?" advertising campaign. It's the first campaign with newly hired ad agency Hill Holiday. The campaign expresses the responsibility theme through actions of ordinary...

No-lapse ULs hit the market.(SPOTLIGHT)(Universal life)(Brief article)
October 1, 2006... Universal life has been the top seller the past four years among life products, driven by no-lapse secondary guarantees. In recent months, Nationwide Financial, ING member Security Life of Denver, and Sun Life Financial came out with new...

Customized covers for yacht owners.(Property/Casualty)(Brief article)
October 1, 2006... Fireman's Fund's new Prestige Yacht policy covers craft typically valued at more than $1 million, along with captain and crew, as the newest form of customized insurance in its Prestige Portfolio for affluent individuals. Claims under this...

Contagion cover on closures.(Property/Casualty)(Markel Corp launches outbreak extra expense coverage)(Brief article)
October 1, 2006... Markel Corp. has launched Outbreak Extra Expense Coverage, which is designed to protect companies from a closure of their business premises due to a variety of contagions, including avian flu. Markel will target the product to its existing...

Whole life goes limited-pay.(Life)(New York Life Insurance Co introduces custom whole life Insurance)(Brief article)
October 1, 2006... New York Life Insurance Co. has created a whole life product that allows buyers to decide at purchase how long they want to pay premiums. Custom Whole Life Insurance provides the benefits of the whole-life concept, but allows paid-up...

SVUL addresses estate-tax uncertainty.(Life)(Hartford Variable Universal Life Last Survivor)(Brief article)
October 1, 2006... The Hartford Financial Services Group has introduced Hartford Variable Universal Life Last Survivor, which waives surrender charges in January 2011 if there is no federal estate tax that year. It also pays a higher death benefit if both...

Best's rating changes.(Ratings)(Statistical data)
October 1, 2006... 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...

Turning point: elections 2006: the outcome of November's U.S. elections should shape the course of insurance for years.(Regulatory/Law: Elections)
October 1, 2006... From the corridors of Congress to state capitals, from the judiciary to the bureaucracy, the 2006 election holds rare potential to make a profound and lasting impact on the statutory and regulatory environment for insurers. Unprecedented...

A catastrophic battle: some major players in the insurance industry say it's time the federal government provides protection against 'mega-catastrophes.' But a plan in Congress to create a federal backstop to state catastrophe funds continues to face an uphill climb.(Property/Casualty: Catastrophes)
October 1, 2006... It's April in Washington, and the jogging paths that line the Potomac are strewn with white and pink petals, the last remaining notes of the symphony of color produced each spring by the city's famous cherry blossom trees. By sheer...

Funding fiasco? a Best's Review survey suggests a federal catastrophe fund could be disastrous for the industry.(Property/Casualty: Catastrophe)
October 1, 2006... The proposed creation of a federal natural catastrophe backstop would be "detrimental" to the industry and encourage continued development in risk-prone areas, according to a recent Best's Review survey of online subscribers and visitors to the...

Healthy shrinkage: the number of U.S. life insurance companies has fallen over the past decade by nearly half, a change that is probably for the better.(Life: Mergers and Acquisitions)
October 1, 2006... The United States was once home to 2,343 life insurance companies. That peak occurred in 1988, according to the American Council of Life Insurers. Since then, a major trend of life companies has been to consolidate. By 2004, the number had...

Fighting 'The Blob': organizations need systems to function, but be wary lest they grow into unwieldy bureaucracies.(Life: Selling Insight)
October 1, 2006... If corporate institutions are noted for nothing else, they surely must be credited with the proclivity to contrive a "system" for just about everything, from the mundane to the most important. Everywhere you scan the American business...

Modeling after the big one: applying lessons from the 2004 and 2005 hurricane seasons, catastrophe modelers have changed their products and insurers have changed how they use them.(Technology: Catastrophe Modeling)
October 1, 2006... Catastrophe models were put to possibly their most stringent test ever when Hurricane Katrina blew across the Gulf Coast in August 2005. Some insurers, such as State Farm, said their modeling estimates of damages caused by the storm were nearly...

In or out? With the technology to establish the reality of events, as a society, are we ready to examine the consequences of these capabilities?(Technology: Technology Insight)
October 1, 2006... Someone has finally done it--what has been technically possible for some time has been commercialized by a device called Hawkeye. Over the past several years, inventor Jeff Hawkins from the United Kingdom has put together the requisite...

Growing up fast: the five largest insurers formed in Bermuda in 2001 have survived their first major losses--due to Hurricanes Katrina, Rita and Wilma--and are now tasting their first softening market.(Reinsurance/Capital Markets: Bermuda)
October 1, 2006... In the shadow of Sept. 11, 2001, five insurance companies with $1 billion or more in capital sprouted in Bermuda and were accepting new business as of Jan. 1, 2002. Axis Specialty Ltd. and Montpelier Reinsurance Ltd. focused on writing property...

5 Strategies to clear backlogs: combining clarification, separation, simplification, measurement and communication can eliminate backlogs of work quickly and cost effectively.(Agent/Broker: Customer Service)
October 1, 2006... Service is the competitive differentiator in today's market of low-margin, commoditized products; it's paramount to meet customer expectations to obtain and retain customers. As a result, the impact of backlogs and turnaround time degradations...

Scientific uncertainty: prudent insurers will pay close attention to the scientific debates that surround the issue of global climate change.(Agent/Broker: Selling Insight)
October 1, 2006... The destructive hurricane seasons of 2004 and 2005 in the United States have left many within the insurance and reinsurance industries questioning whether the observed increases in the number of tropical storms and hurricanes in the North...

When consumer-directed plans met managed care: the growing popularity of consumer-directed health care doesn't mean the demise of traditional managed care, but rather a coming together of the two types of products.(Health/Employee Benefits: Managed Care)
October 1, 2006... After several decades, is managed care dead or on the decline? Health plans say no. Is managed care evolving into a new realm? For many health plans, the answer is a resounding yes. "It's not your father's managed care anymore," said...

State of recovery: after years of tinkering, New Jersey's auto insurance market is finally well tuned.(Property/Casualty: Auto Insurance)
October 1, 2006... The New Jersey automobile insurance experience illustrates the importance of a balanced marketplace, and a road map to achieving it. Regulators well know the challenge. They must provide consumers with real and affordable product choices from a...

Auto, top writers, Canada--2005.(Property/Casualty: Auto Top Writers)(Company rankings)
October 1, 2006... Auto, Top Writers, Canada-2005 Rank is based upon direct premiums written in 2005. (C$ Thousands, US$1 = C$1.1656 at 12/31/05) Direct ...

Total auto, top writers, United States--2005.(Property/Casualty: Auto Top Writers)(Company rankings)
October 1, 2006... Total Auto, Top Writers, United States--2005 Rank is based on direct premiums written in 2005. ($ Thousands) 2005 Direct % ...

Auto physical damage, top writers, United States--2005.(Property/Casualty: Auto Top Writers)(Company rankings)
October 1, 2006... Auto Physical Damage, Top Writers, United States--2005 Rank is based on direct premiums written in 2005. ($ Thousands) 2005 Direct % ...

Auto liability, top writers, United States--2005.(Property/Casualty: Auto Top Writers)(Table)(Company rankings)
October 1, 2006... Auto Liability, Top Writers, United States--2005 Rank is based on direct premiums written in 2005 ($ Thousands) 2005 Direct % ...

All private-passenger auto, top writers, United States--2005.(Property/Casualty: Auto Top Writers)(Table)(Company rankings)
October 1, 2006... All Private-Passenger Auto, Top Writers, United States--2005 Rank is based on direct premiums written in 2005. ($ Thousands) 2005 Direct % ...

All commercial auto, top writers, United States--2005.(Property/Casualty: Auto Top Writers)(Table)(Company rankings)
October 1, 2006... All Commercial Auto, Top Writers, United States--2005 Rank is based on direct premiums written in 2005. ($Thousands) 2005 Direct % ...

Total auto, top writers by state--2005.(Property/Casualty: Auto Top Writers)(Table)(Company rankings)
October 1, 2006... Total Auto, Top Writers by State--2005 Rank is based on direct premiums written in 2005. ($ Thousands) Direct % of No. of Premiums U.S. Premium State ...

All commercial auto, top writers by state--2005.(Property/Casualty: Auto Top Writers)(Table)
October 1, 2006... All Commercial Auto, Top Writers by State--2005 Rank is based on direct premiums written in 2005. ($ Thousands) Direct % of No. of Premiums U.S. Premium...

Auto liability, top writers by state--2005.(Property/Casualty: Auto Top Writers)(Table)
October 1, 2006... Auto Liability, Top Writers by State--2005 Rank is based on direct premiums written in 2005. ($ Thousands) Direct % of No. of Premiums U.S. Premium State ...

All private-passenger auto, top writers by state--2005.(Property/Casualty: Auto Top Writers)(Table)
October 1, 2006... All Private-Passenger Auto, Top Writers by State-2005 Rank is based on direct premiums written in 2005. ($ Thousands) Direct % of No. of Premiums U.S. Premium...

Auto physical damage, top writers by state--2005.(Property/Casualty: Auto Top Writers)(Table)
October 1, 2006... Auto Physical Damage, Top Writers by State--2005 Rank is based on direct premiums written in 2005. ($ Thousands) Direct % of No. of Premiums U.S. Premium...

Managing the cycle: insurance carriers that fail to maintain underwriting discipline throughout the market cycle risk putting short-term gains ahead of long-term profit.(Property/Casualty: Underwriting Insight)
October 1, 2006... While not as predictable as the phases of the moon, the insurance market cycle is a fairly reliable trend. A hard market is followed by a period of generally flat rates, which precedes a soft market, then another period of flat rates...

Technology resources.(Technology)(Directory)
October 1, 2006... Business-oriented technology is a strategic component in insurance success. These are some of the companies that offer products and services aimed at the special needs of professionals in the insurance industry. Agile Technologies 685...

Industry has room to improve consumer data protection practices.(Technology: Technology Notes)
October 1, 2006... Raising awareness about the importance of protecting clients' personal information is an ongoing effort in the insurance industry. The National Association of Insurance Commissioners, National Association of Mutual Insurance Companies, and...

Blue Cross and Blue Shield Plans.(Tech Bytes)(Brief article)
October 1, 2006... Blue Cross and Blue Shield Plans recently announced the creation of Blue Health Intelligence, a resource that will improve the quality of health care through opportunities to share critical health information initially with employers, and in...

ISO recently acquired the assets of Xactware Inc., a provider of estimation software and services for the property insurance, remodeling and restoration industries.(Tech Bytes)(Brief article)
October 1, 2006... ISO recently acquired the assets of Xactware Inc., a provider of estimation software and services for the property insurance, remodeling and restoration industries. The privately held company will continue operating at its current headquarters...

WellPoint Inc.(Tech Bytes)(360 Health)(Brief article)
October 1, 2006... WellPoint Inc. announced its nationwide launch of 360 Health--a robust benefits program to comprehensively address preventive care, health improvement and care coordination. It provides health information and counsel collected from thousands of...

Follow the money: a look at how U.S. life/health insurers' investment strategies have fared since 1995.(Reinsurance/Capital Markets: Life/Health Investments)
October 1, 2006... On a number of dimensions, life/health insurance tends to be a less dynamic sector than property/casualty. Some observers view this as an advantage, though equity analysts may disagree. Features that make a good insurer for policyholders often...

Life insurers' assets hold steady with slight increase in bonds.(Reinsurance/Capital Markets: Asset Distribution)
October 1, 2006... Although asset distribution for the life insurance industry in total did not change significantly in 2005, there are some notable differences among individual companies/groups. For the industry as a whole, admitted assets continued growing by...

Assets for P/C industry increased by $121 billion in 2005.(Reinsurance/Capital Markets: Asset Distribution)
October 1, 2006... The property/casualty insurance industry registered a $121 billion increase in total admitted assets during 2005. This 9.4% increase equaled the percentage increase in 2004. While nonaffiliated bond investments rose 7.5%, nonaffiliated stock...

Not by accident: with an unusual business model and a strong emphasis on serving consumers, NJ Cure is gaining ground in the New Jersey private-passenger auto market.(Property/Casualty: Auto)
October 1, 2006... Eric Poe is passionate about auto insurance. When Poe, chief operating officer for Princeton-based New Jersey Citizens United Reciprocal Exchange (NJ Cure), testified before a state Senate subcommittee in June, legislators were taken aback by...

Terrorism insurance growing cheaper and more popular.(Property/Casualty: Loss/Risk Management Notes)
October 1, 2006... About six in 10 large and midsize U.S. businesses bought terrorism insurance in 2005, a dramatic increase from the 27% who bought the coverage in 2003 and the 50% who bought the coverage in 2004, according to broker Marsh Inc. Meanwhile,...

ERM report card: does Enterprise Risk Management really deserve all the attention it's been getting?(Property/Casualty: Loss/Risk Management Insight)
October 1, 2006... Ratings agencies have embraced it, conferences are focusing on it, consultants are offering to help you implement it, journalists are writing about it and professional associations are offering courses on it. Does Enterprise Risk Management...

Upfront and personal: proper use of the 'personal profit' exclusion must be determined for defense coverage claims in white-collar criminal cases.(Regulatory/Law: Legal Insight)
October 1, 2006... When I see insurance cases talking about getting "real" and "truly personal," I get excited. The context, of course, is corporate crime, a subject that continues to be big news. Corporate misdeeds inevitably lead to lawsuits, and ultimately,...

The right focus? Emerging approaches to measuring risk and managing capital enhance solvency. Will they do the same for shareholder value?(Regulatory/Law: Legal Insight)
October 1, 2006... In response to growing concerns about life insurers' risk management practices, regulators and rating agencies are developing new risk and capital models and increasing their emphasis on sound risk-management principles. This is a positive...

Take a good look at yourself: follow these six steps when investigating alleged business misconduct.(Regulatory/Law: Internal Investigations)
October 1, 2006... Corporate scandals and new regulations are moving companies to strengthen many aspects of their anti-fraud programs, especially their response to allegations of wrongdoing. The passage of the Sarbanes-Oxley Act, changing organizational...

Into the night: Halloween means haunted houses, where liabilities that lurk in dark corners have many operators running for cover.(The Last Word)
October 1, 2006... In 1994, a woman from Harvey, La., broke her nose at a haunted house sponsored by a local athletic boosters club. She said the injury was caused by running into a wall after a man jumped out in a dark corridor and frightened her. Just as...