Best's Review articles from September 2004

Best's Review archives from September 2004

Opportunities beckon.(Editor's Prologue)
September 1, 2004... On July 1, 2003, the U.S. Census Bureau reported that people of Hispanic origin had become the nation's largest race or ethnic minority, a fact that speaks volumes about the marketing potential for insurers, but very little about cultivating...

In the spotlight *.(Comment)
September 1, 2004... "The outlook for the global economic situation is the best that it has been for at least five years." Jeremy Peat Group Chief Economist Royal Bank of Scotland "As far as TRIA is concerned, what is needed is some perspective...

Correction.(Comment)(Correction Notice)
September 1, 2004... Nick Leeson was a trader at Barings Bank. His firm was identified incorrectly in "The Real Thing" on page 69 of the June 2004 issue of Best's Review.

Sun Life Financial Inc.(People in Insurance)(appointments)(Brief Article)
September 1, 2004... Sun Life Financial Inc. named Kevin P. Dougherty president of Sun Life Financial Canada, effective Sept. 6. Dougherty will succeed Robert M. Astley, who is retiring. Dougherty is serving as executive vice president of Sun Life Financial's...

LIMRA International.(People in Insurance)(appointments)(Brief Article)
September 1, 2004... Robert Kerzner, former head of the individual life division of the Hartford Financial Services Group, has been named the new president and chief executive officer of LIMRA International. He joins LIMRA on Sept. 20. LIMRA's board chose...

Lockton Risk Services.(People in Insurance)(Kirke Dorweiler appointed)(Brief Article)
September 1, 2004... Lockton Risk Services named Kirke Dorweiler executive vice president. Dorweiler will be responsible for developing a group professional liability initiative as well as assisting in a variety of employee-benefits related prospects for the...

Risk factor: financial companies can't afford to ignore terror alerts.(Highlights from BestWeek)
September 1, 2004... As financial-services companies began a nervous business week following fresh warnings of terrorist threats against specific institutions, risk experts reported the heightened state of alert may pose costs, but ignoring the danger is infinitely...

Willis Group Holdings.(People in Insurance)(John McDonnell appointed)(Brief Article)
September 1, 2004... Willis Group Holdings named John McDonnell executive vice president and director of the group's Japan services business in North America. McDonnell is responsible for providing Willis' risk-management services and solutions to Japanese...

Ace Tempest Reinsurance Ltd.(People in Insurance)(appointment)(Brief Article)
September 1, 2004... Andreas Lewin has been named president of Ace Tempest Reinsurance Ltd., the Bermuda reinsurance unit of Ace Ltd., the company said. A native Bermudian, Lewin will succeed the outgoing Christopher McKeown and will assume day-to-day...

Preserver Group Inc.(People in Insurance)(appointments)(Brief Article)
September 1, 2004... Preserver Group Inc. named Patrick J. Haveron president and chief executive officer. Haveron succeeds Stephen A. Gilbert as president. Gilbert will continue to serve as the group's vice chairman and as a member of its board. Haveron joined...

Warnings contrast U.S., U.K. styles.(Briefing)(Brief Article)
September 1, 2004... The recent terror warnings issued by the U.S. government have underlined the contrasting styles between Washington and London in dealing with perceived terrorist threats. While the U.S. government has been accused of creating unnecessary...

Insurers can model new threats closely.(Briefing)(Brief Article)
September 1, 2004... Insurers may be powerless to stop a terrorist attack, even when specific targets are identified, but they can get a pretty clear picture beforehand of what their probable insured losses will be in any possible attack scenario. When...

Amid terrorist threat at N.J. headquarters, prudential makes security highly visible.(Briefing)(New Jersey)
September 1, 2004... As financial-services and insurance giant Prudential Financial opened its Newark, N.J., global headquarters Aug. 2, one day after a warning by the Department of Homeland Security said the site is a potential target for a terror attack, the mood...

Insurance company attorneys survey.(By the Numbers)(Illustration)
September 1, 2004... Law firm Fulbright & Jaworski L.L.P. polled 300 corporate attorneys for its 2004 U.S. Litigation Trends Survey. Participating companies were drawn from 41 states and eight major business groups including the insurance industry. The survey...

Meetings.(Briefing)(Brief Article)(Calendar)
September 1, 2004... Sept. 12-14 Intermediaries & Reinsurance Underwriters Association, Fall Conference, The Equinox Resort & Spa, Manchester Village, Vt. Phone: (908) 203-0211. Web site: www.irua.com. Sept. 16-19 National African American...

Andrew's lessons help reinsurers deal with impact from Charley.(Briefing)(Brief Article)
September 1, 2004... For at least a year, reinsurers had been saying--with fingers crossed--that their bottom lines had been strengthening steadily, thanks in part to a lack of major natural catastrophes. Then Charley came along. Hurricane Charley, which swept...

Equity analysts: Hurricane Charley's billions in insured losses should be 'manageable'.(Briefing)(Brief Article)
September 1, 2004... Even though the devastation in Florida wrought in August by Hurricane Charley--the second costliest hurricane since 1992's Hurricane Andrew--is substantial, it is not a transforming event, said equity analysts. In an Aug. 16 research note,...

After Andrew, insurers are better prepared.(Breifing)(Brief Article)
September 1, 2004... Hurricane Andrew's devastating destruction in Florida in 1992 spurred a sea change within the industry that insurers are benefiting from today as it begins the cleanup of Hurricane Charley. Bill Bailey, special counsel to the Insurance...

Best's Rating Changes.(Ratings)
September 1, 2004... 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...

Winning the Hispanic market: insurers are trying to reach out to the growing Hispanic population--and its swelling middle class--but insiders say they could be doing more.(The Big Picture)
September 1, 2004... If you think reaching the Hispanic market is as simple as translating your marketing slogan into Spanish, don't be too sure. The dairy industry's successful, and often imitated, "Got Milk?" slogan took a misstep when it was translated...

Toeing the line: health data, rate and form filing are insurers' top electronic compliance issues.(E-Fusion 2004)
September 1, 2004... For insurers dealing with technology-related compliance issues, these days it all comes down to two acronyms: HIPAA and SERFF. HIPAA refers to the Health Insurance Portability and Accountability Act of which mandates how an insured's...

One for all: Safeco merged technology and business objective to create a single Internet platform for pricing and underwriting multiple lines of business.(E-Fusion 2004)
September 1, 2004... When Mike McGavick came to Safeco as president and chief executive officer in 2001, he brought the ailing company a new strategy, including a tighter focus on core business lines and an elevated role for information technology. For six years...

Innovation imperative: successful chief information officers stay on top of their craft and stay connected electronically to leverage their time and resources.(E-Fusion 2004)
September 1, 2004... Stay connected. That's a motto Dennis Callahan embraces. "The degree of electronic connectedness we have in this day and age is wonderful. It is remarkable to have such portable access to real-time information," said Callahan, executive vice...

E-Fusion conference.(Technology)(Calendar)
September 1, 2004... Sessions and speakers subject to change. Sunday, Oct. 17 2-5 p.m. E-Fusion Awards Preliminary Presentations 7 p.m. What Matters in Insurance IT: An interactive town-hail style meeting in which speakers and attendees share...

Gaining ground: in the market-share race between fixed and variable products, insurers say sales are running nearly even.(Variable and Fixed Products)
September 1, 2004... Everything may not be coming up roses yet for some categories of individual life insurance, but the prospects are smelling sweeter. After registering falling profits since 2000, the industry saw overall sales in this line rise earlier this...

Ordinary life average policy size and lapse ratio, top life writers, United States--2003.(Variable and Fixed Products)(Illustration)
September 1, 2004... Ordinary Life Average Policy Size and Lapse Ratio, Top Life Writers, United States--2003 Rank is based on the amount of total ordinary life issued in 2003. Average ...

Total life in force, top life writers, United States--2003.(Variable and Fixed Products)(Illustration)
September 1, 2004... Total Life In Force, Top Life Writers, United States--2003 Total life insurance includes ordinary life, group life, credit life and industrial life. Rank is based on total life insurance in force in 2003. ($ Thousands) ...

Total life issued, top life writers, United States--2003.(Varible and Fixed Products)(Illustration)
September 1, 2004... Total Life Issued, Top Life Writers, United States--2003 Total life insurance includes ordinary life, group life, credit life and industrial Iife. Rank is based on total life insurance issued in 2003. ($ Thousands) ...

Group life in force, top life writers, United States--2003.(Variable and Fixed Products)(Illustration)
September 1, 2004... Life Group Life In Force, Top Life Writers, United States--2003 Group life insurance most often is issued to a group of employees, but it may be issued to any group, provided that it is not formed for the purpose of buying...

Term life in force, top life writers, United States--2003.(Variable and Fixed Products)(Illustration)
September 1, 2004... Term Life In Force, Top Life Writers, United States--2003 Term life insurance provides protection for a specified period of time. It pays a benefit only if the insured's death occurs during the coverage period. ($ Thousands) ...

Group life issued, top life writers, United States--2003.(Variable and Fixed Products)(Illustration)
September 1, 2004... Group Life Issued, Top Life Writers, United States--2003 Group life insurance most often is issued to a group of employees, but it may be issued to any group, provided that it is not formed for the purpose of buying insurance. ($...

Term life issued, top life writers, United States--2003.(Variable and Fixed Products)(Illustration)
September 1, 2004... Term Life Issued, Top Life Writers, United States--2003 Term life insurance provides coverage for a specified period of time. It pays a benefit only if the insured's death occurs during the coverage period. ($ Thousands) ...

Credit life in force, top life writers, United States--2003.(Variable and Fixed Products)(Illustration)
September 1, 2004... Life Credit Life In Force, Top Life Writers, United States--2003 Credit life insurance is a group life insurance contract whereby a creditor is protected if the insured dies before the indebtedness is paid in full. ($...

Ordinary life in force, top life writers, United States--2003.(Variable and Fixed Products)(Illustration)
September 1, 2004... Ordinary Life In Force, Top Life Writers, United States--2003 Ordinary life insurance may be kept in force for a person's whole life and pays a benefit upon the person's death. Premiums for the policy are paid continuously as long as...

Credit life issued, top life writers, United States--2003.(Variable and Fixed Products)(Illustration)
September 1, 2004... Credit Life Issued, Top Life Writers, United States--2003 Credit life insurance is a group life insurance contract whereby a creditor is protected if the insured dies before the indebtedness is paid in full. ($ Thousands) ...

Ordinary life issued, top life writers, United States--2003.(Variable and Fixed Products)(Illustration)
September 1, 2004... Ordinary Life Issued, Top Life Writers, United States-2003 Ordinary life insurance may be kept in force for a person's whole life and pays a benefit upon the person's death. Premiums for the policy are paid continuously as long as...

As good as it gets? Hard work lies ahead if life insurers are to build on the foundation of recently improved results.(Underwriting Insight)
September 1, 2004... Life insurers are celebrating the best performance figures seen in more than a decade. Is this "as good as it gets" in the life industry? To see what lies in store for the industry, let's take a look at some of the key challenges it faces: ...

Cycling back: with the hard market ebbing, excess and surplus carriers continue to grow their business in newly harder-to-place liabilities.(Excess and Surplus)
September 1, 2004... Several new players entered or returned to the excess and surplus market last year, drawn in by a hardening market and the migration of several business classes from standard companies. Now, rates are softening again. "We're coming off a...

Insurers among top ad buyers.(Marketplace)(AdAge's 2004 Megabrands Special Report)(Brief Article)
September 1, 2004... Four insurers placed in the top 100 of AdAge's 2004 Megabrands Special Report that lists 2003's top advertising spenders. The totals represent magazine, newspaper and network, spot, syndicated, Spanish-language and cable television spending....

Western National Group updates logo, adds tagline.(Marketplace)(Brief Article)
September 1, 2004... Property/casualty insurer Western National Group recently launched a new logo, tagline, marketing materials and Web site. A change in the company's leadership and its 100th birthday spurred the idea for the makeover, said Mary S. Manley, senior...

Making the grade: insurers are increasingly turning to The Leapfrog Group and other organizations for hospital care and safety data to help prevent medical errors and encourage better-informed health-care decisions.(Patient Safety)
September 1, 2004... Students aren't the only ones worrying about bringing home a good report card. Hospitals are faced with a similar pressure to make the grade. And like parents keeping a watchful eye on their children's progress, insurers are paying close...

Reliance: liquidation update: a proposed $5 million settlement with employees will be heard Sept. 30.(Reliance Liquidation)
September 1, 2004... Nearly three after Reliance Insurance Co. went into liquidation, several major court cases involving the failed insurer have yet to be resolved. Progress has been made, however, on separate litigation brought by Reliance employees against...

He didn't mean to do it: intent is an issue that must be considered in coverage of claims in many contexts.(Legal Insight)(behavior of insurance holders)
September 1, 2004... When my 9-year-old son beats up his 5-year-old brother, he always denies wrongdoing. But my kids never have sought insurance coverage for their fights (at least so far). Adults are different. In one recent insurance case, the combatant admitted...

The need for terrorism coverage: there are fundamental constitutional and philosophical rationales for federal terrorism insurance.(Selling Insight)
September 1, 2004... Before 9/11, terrorism insurance was included in commercial property policies virtually free of charge because the risk of losses due to terrorist attacks was considered so remote. Obviously after 9/11, that is no longer the case. Primary...

A capital idea: ERC executive proposes a new method for pricing reinsurance.(Q&A)(Employers Reinsurance Corp)(Interview)
September 1, 2004... Donald Mango, director of research and development at GE's Employers Reinsurance Corp., has developed a new way to deploy reinsurance capital and to price reinsurance. In his prize-winning paper, Capital Consumption: An Alternative Methodology...

A test of strength: review the checklists and discover how to beef up group disability and life insurance sales results.(Distribution)
September 1, 2004... Over the past 20 years, I how much has changed in the way carriers sell and market group life and disability? Has the sales process become less relationship driven? Are carriers any less dependent on their best reps and brokers? Do the sales...

In the neighborhood: will small agencies go the way of mom-and-pop stores?(Selling Insight)
September 1, 2004... Remember the neighborhood hardware store? Its shelves were crammed with all manner of goods. The owner and his veteran staff knew most of their customers by name and could find what was needed in a moment while doling out practical counsel in...

The perfect combination: planning is key to successfully integrating technology systems following a corporate merger or acquisition.(Integration Strategies)
September 1, 2004... Still reeling from last year's acquisitions, management announces yet another new round of acquisitions and consolidations, then wonders why the chief information officer is headed for the rooftop. He was remembered fondly as always having his...

Global Hauri.(Web News You Can Use)(Brief Article)
September 1, 2004... Anti-virus specialist Global Hauri released LiveCall Suite, a security tool to prevent fraud and identity theft for any online transaction. LiveCall allows an insurer, bank or e-tailer to assess the potential security threat of a client PC. It...

DataLister Inc.(Web News You Can Use)(Brief Article)
September 1, 2004... DataLister Inc. introduced ProspectBase, a Web-based prospect tracking system for sales and marketing organizations within the property and casualty insurance industry. The system gives management the tactical and strategic ability to assemble,...

Fiserv Insurance Solutions.(Web News You Can Use)(software)(Brief Article)
September 1, 2004... Fiserv Insurance Solutions, a unit of Fiserv Inc., released version 2.8 of Life Portraits Enterprise Solution, Fiserv's point-of-sale system used by life insurance companies to provide on-demand and electronic needs analysis, illustrations,...

MyHealthBank.(Web News You Can Use)(contracts with HSA Bank )(Brief Article)
September 1, 2004... MyHealthBank is collaborating with HSA Bank to provide its customers with a highly integrated banking and technology offering for health savings account-based plans. MyHealthBank will integrate technology from HSA Bank for health savings...

Lack of initiative, skills cited as barriers to data exchange.(Technology Notes)(Swiss Reinsurance Company Ltd.)(Brief Article)
September 1, 2004... The full establishment of electronic data exchange in the insurance industry is being held up by the hesitation of key participants, a lack of qualified people, and barriers to the creation of common standards, according to Christoph Bitzer,...

Chubb underwriter: businesses need to be more serious about IT risks.(Technology Notes)(Chubb Insurance Company)(Brief Article)
September 1, 2004... Businesses should be taking their information and communication technology risks more seriously, Paul Skinner, a specialist underwriter for Chubb Insurance Company of Europe, told a London insurance technology conference. "Any digital...

Winning the IT talent war: information technology is rebounding and increasing the competition for the best resources.(Technology Insight)(Information Technology)
September 1, 2004... The glut of technology talent is rapidly dwindling with staffs and salaries rising again. Information technology has clearly become a global talent pool with the growing use of offshore and onshore outsourcing for commodity work, as well as the...

A suitable choice: it is possible to judge objectively whether a given variable-annuity exchange is the right thing to do, based on possible future scenarios.(Variable Annuities)
September 1, 2004... Hardly a month goes by without the National Association of Securities Dealers' division of enforcement--or some other regulatory organization--accusing a broker/dealer, financial adviser or insurance company of violating suitability...

American Community Mutual Insurance Co.(New Products and Services)(health plans)(Brief Article)
September 1, 2004... American Community Mutual Insurance Co. introduced an individual health plan offering premium and tax savings. The new Community MED HSA enables individuals and families to take advantage of the Health Savings Account, which went into effect in...

Manulife USA.(New Products and Services)(Brief Article)
September 1, 2004... Manulife USA introduced a new Private Financing Sales Tool Kit to help producers promote and provide advisers with innovative ways to meet estate planning challenges. The company also launched an accompanying MLI Solutions module for creating...

The Principal Financial Group.(New Products and Services )(Brief Article)
September 1, 2004... The Principal Financial Group recently announced From Here to Security--a unique program designed to educate consumers on the need for individual life and disability income insurance and coverage they may need to help them be financially...

Sun Life Assurance Company of Canada.(New Products and Services)(Brief Article)
September 1, 2004... Sun Life Assurance Company of Canada introduced a new survivorship policy to its portfolio of universal life products. Sun Survivorship Universal LifeSM LP2 is designed to meet the needs of individuals who desire death benefit guarantees,...

Study: life industry could top $1.6 trillion.(Marketplace)
September 1, 2004... The global life insurance industry can generate as much as $1.6 trillion in shareholder value over the next 10 years, a scenario that will put pressure on life insurers to plan aggressively for growth, according to a study by consultancy Mercer...

Thinking it through: in decisions concerning risk and insurance, it's essential to transcend a firm's limited experience.(Loss/Risk Management Insight)
September 1, 2004... Many of us remember from childhood the story of Chicken Little, who was struck by a falling acorn and then alarmed the other chickens by frantically warning them that the sky was falling. Although adults may dismiss this story as merely amusing...

Survey: executives rank fire, disruptions top threats.(Loss/Risk Management Notes)(Brief Article)
September 1, 2004... Executives in charge of preventing losses at the 1,000 largest companies in the world have a drastically different view on what risks are important--and how prepared they are to mitigate those risks--compared with the equity analysts who make...

Midyear poll reveals easier commercial renewals.(Loss/Risk Management Notes)(Brief Article)
September 1, 2004... Commercial insurance buyers report that renewals have grown easier in recent months and anticipate premiums for some coverages will drop by year's end, according to a new Prudential Equity Group survey. According to the mid-2004 Commercial...

Liberty Mutual increases lead excess umbrella limits.(Loss/Risk Management Notes)(Brief Article)
September 1, 2004... Liberty Mutual Insurance Cos. said it's doubling its limits on individual lead excess umbrella programs to $25 million, the amount that's typically sought. Also, the company said it has added an auto carve-out facility that will allow companies...

XL doubles capacity limit on select property programs.(Loss/Risk Management Notes)(Brief Article)
September 1, 2004... XL Capital Ltd. said its insurance operations has doubled its capacity limit, and will now write up to $500 million to underwrite entire global property programs on a selective basis. Where the company isn't able to bind an entire program, for...

Axis would write wood.(Loss/Risk Management Notes)(Axis US Insurance )(Brief Article)
September 1, 2004... Alpharetta, Ga.-based Axis US Insurance said its excess and surplus property unit is offering property insurance coverage for United States-based lumber, wood products and furniture risks, including logging operations, sawmills, planing mills...

FEMA launches program on flood awareness.(Loss/Risk Management Notes)(Federal Emergency Management Agency)(Brief Article)
September 1, 2004... Floods are the most common natural disaster in the United States, causing $7.1 billion in U.S. property damage in the past 10 years, and impacting every state, according to a new flood awareness program. The Department of Homeland Security's...

Mixing up a better benefit: the 2003 Medicare Prescription Drug Act offers a subsidy that can save employee-benefit plan sponsors up to 25% on plan costs. Declining the subsidy and taking a different approach could save even more.(Medicare)
September 1, 2004... Senior citizens are not the only beneficiaries of the 2003 Medicare Prescription Drug Improvement and Modernization Act. The legislation also offers sponsors of qualified retiree medical-benefit plans, who are often the former employers of the...

Seeing red: infrared thermography can help settle water and mold damage claims faster and less expensively.(Commercial and Homeowners)
September 1, 2004... To prevail in court, the ability to determine conclusively the cause and responsibility for water intrusion, a prerequisite for mold growth in buildings, is vital. But proving or disproving what caused the damage and where it is coming...

Time for a makeover: competitors' ad spending forces InsWeb to rethink marketing strategy.(Online Selling)
September 1, 2004... A fiercely competitive advertising environment has forced online insurance quote generator InsWeb Corp. to "rethink" its marketing strategy, according to the company's founder. And to do that, the mostly unprofitable company has snagged an...

A growing threat: computer networks are increasingly vulnerable to catastrophic cyberrisk.(Underwriting Insight)
September 1, 2004... Advances in technology are revolutionizing how the world does business. These advances are fueling remarkable productivity growth. But society's growing dependence on vast networks of computers is making it increasingly vulnerable to a new...

Conseco names new CEO as William Shea resigns.(Companies)(appointments, resignations and promotions)(Brief Article)
September 1, 2004... The chief executive who had led troubled life insurer Conseco Inc. through a painful Chapter 11 reorganization has resigned, saying he thought it was "a natural time" to move on. William J. Shea, 56, who has been Conseco's president, CEO...

Jackson National plans to sell banking subsidiary.(Companies)(Brief Article)
September 1, 2004... Jackson National Life Insurance Co. said it plans to sell its subsidiary, Jackson Federal Bank, to Union Bank of California, N.A. for $305 million, saying that JFB's principal area of business, banking and commercial real estate lending, is no...

Safeco Life reborn as '47-year-old start-up'.(Companies)
September 1, 2004... The president and newly appointed chief executive officer of Symetra Financial Corp., formerly known as Safeco Life & Investments, says there are plenty of opportunities ahead for the former Safeco Corp. unit, and its shareholders, customers,...

Broker Brown & Brown acquires Arkansas agency.(Companies)(Brief Article)
September 1, 2004... Florida-based insurance broker Brown & Brown Inc. said it has acquired a commercial property and casualty insurance agency in Little Rock, Ark., for an undisclosed price. The broker acquired Hardin & Wilson Inc., which has annualized...

Royal & Sun sells closed U.K. life operations to resolution.(Companies)(Brief Article)
September 1, 2004... Royal & Sun Alliance Insurance Group plc has sold its closed U.K. life business to closed-fund specialist venture Resolution Life Group for 850 million [pounds sterling] (approximately $1.56 billion). "This disposal," Royal & Sun Alliance...

Aegon's net surges, but new life sales slump.(Companies)(Brief Article)
September 1, 2004... Aegon N.V. said its second-quarter profit nearly tripled on improved earnings from annuities and banking. But the financial-services giant saw its stock price slump nearly 5% as figures for new life sales showed a downward trend. ...

Prudential financial posts gain on strong annuity results.(Companies)(Brief Article)
September 1, 2004... Driven by strong annuity business results and acquisitions, including the recent acquisition of the retirement business of Cigna Corp., Prudential Financial Inc. posted sharp gains in second-quarter net and operating income. Net income for...

Scottish Re posts strong earnings on revenue growth.(Companies)(Brief Article)
September 1, 2004... Life reinsurer Scottish Re Group Ltd. said second-quarter net income more than tripled on strengthening market conditions, and despite some drag from its assumption of the management of a block of business from Employers Reinsurance Corp. ...

Coming up ... in October.(Companies)
September 1, 2004... Election Preview: Where do George W. Bush and John Kerry stand on issues of interest to insurers, such as health care, Medicare/Medicaid, tort reform, tax policy and retirement? Hot Spots by State: A look at the candidates and issues in the...

Hailing cab coverage: Taxisure Exchange is driving home protection to taxi company owners across New Jersey.(The Last Word)
September 1, 2004... Bustling urban streets aren't complete without the hurried passage of taxicabs transporting passengers to and from various locations. But finding insurance protection for the drivers of these important staples can be difficult. About one...