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1. Nationwide Insurance Company of Florida Testifies Before Florida Senate Select Committee Company Reports Compliance With HB1A Resulting in Lower Rates COLUMBUS, Ohio--(BUSINESS WIRE)--Nationwide Insurance Company of Florida’s (NICOF) president today told the Florida Senate Select Committee on Property Insurance Accountability that the company has complied with House Bill 1A. The Florida Legislature enacted the bill in 2007 to lower property insurance rates for Florida policyholders. The Select Committee is holding public hearings to explore compliance with the new law. Nationwide received an approval letter from the Florida Office of Insurance Regulation in October 2007 after the company filed a 16.1 percent “true up” decrease under the legislation. “Without House Bill 1A, the average Nationwide homeowner customer in Florida would pay an average $448 more on their insurance premiums this year. Those are real dollars that will stay in the customer’s pocketbook,” said Jeff Rommel, regional vice president of Nationwide’s Florida operations, and president of Nationwide Insurance Company of Florida. While an arbitration panel awarded NICOF a 54 percent rate increase in March 2007, the company’s implementation of HB1A (including the 16.1 percent “true up”) lowered the final increase to 21.3 percent. Since NICOF had not received a rate increase since 2005, the result was an average increase of just over 10.5 percent per year for 2006 and 2007. In fifty-five of 67 counties in Florida, NICOF customers now have rates lower than the industry average. With regard to the ratemaking process, Rommel emphasized that state law requires Florida homeowner rates be based on Florida risks and that insurance companies are prohibited from using profits from one state to subsidize rates in another. “We don’t factor into Florida rates the $100 million Nationwide paid for California wildfires in 2007, or the $300 million in non-Florida Katrina claims from 2005,” Rommel said. “We don’t factor into Florida rates Iowa fender benders or Pennsylvania home fires. And we don’t factor Florida’s hurricanes or home fires into the rates of those states.” Rommel also corrected inaccurate assumptions that auto insurance profits in Florida are more than making up for homeowner losses. “Simply put, those assumptions are not valid,” Rommel insisted. “Since 1988, Nationwide in Florida has lost more than $300 million in homeowners. When we factor in our auto results, the combined loss for both lines in Florida is more than $150 million. While we have made some money on auto, it does not offset homeowner losses.” He also acknowledged the frustration expressed by lawmakers and customers and reemphasized Nationwide’s commitment to help find answers to the unique challenges facing the Florida insurance market. “We don’t take this lightly,” Rommel added. “Nationwiders are burning the midnight oil to find solutions. It is my hope we can work together with this body and others to find answers that best serve the needs of Florida consumers.” Nationwide Insurance employs more than 1,400 Florida residents and has 245 agents that serve more than 500,000 customers in the state. The company has served the state of Florida since 1955. Nationwide Insurance Company of Florida paid more than $1 billion in claims related to the 2004 and 2005 hurricane seasons. NICOF has lost more than $300 million since its inception in 2000. Nationwide and the Nationwide Framework are federally registered service marks of Nationwide Mutual Insurance Company. On Your Side is a service mark of Nationwide Mutual Insurance Company. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Florida Senate Panel Grills Allstate Executives TALLAHASSEE, Fla, Feb 4 (Reuters) - Allstate (ALL.N: ) executives defended on Monday proposed Florida rate increases before a state Senate panel querying why state-government efforts have not yielded substantial insurance savings. Moved by Allstate Floridian Insurance Co's request for 43 percent rate increase, a Senate panel subpoenaed company officials to justify the proposed increase, despite a $12 billion expansion of Florida's hurricane reinsurance pool. Testifying under oath, Allstate officials said the rate request for Allstate Floridian, an Allstate subsidiary, was needed to shore up rates that were too low when compared to the state's hurricane risk, especially over the next few years. "Balancing the need for affordable rates with the need for reliable coverage is no easy task," Allstate Floridian chief executive Joe Richardson told the panel during the first of two days of hearings. "One of our primary concerns is to ensure that we have adequate resources to meet the promises we made to ourcustomers." Lawmakers and state regulators contend Allstate and other insurers did not pass on savings accrued when lawmakers convened a year ago and expanded the state-run reinsurance program following devastating hurricanes in 2004 and 2005. A Senate committee scheduled two days of hearings to take testimony from Allstate, Nationwide Mutual Insurance Co, Florida Farm Bureau Insurance, The Hartford and American Strategic Insurance Corp. Shortly after lawmakers boosted the state's hurricane fund to $28 billion, Allstate filed rates that reflected a 14.2 percent rate reduction. In September, the company resubmitted rates with increases of 43 percent. "For all the dollars it collects in premiums, what (the industry) provides its customers with is a piece of paper and a promise," said Sen. Jeff Atwater, a Republican from North Palm Beach and chairman of the Select Senate Committee on Property Insurance and Accountability. "We are here today, as legislators, to make sure the industry keeps its promise and that those who break their promises be held accountable." State regulators say Allstate used a short term hurricane model that was not approved to justify its rate request. Company officials said they were not required to use a state-approved model and used the short-term forecast to supplement an accepted model by Boston-based AIR Corp used throughout the country. The short-term model, also produced by AIR, was used to take into account a period of increased hurricane activity due to elevated sea surface temperatures expected over the next several years. Atwater focused on an Allstate management meeting at which a presentation was made implying that the company should "accelerate" the validation of a new insurance risk forecasting model if the insurance relief reduced premiums. Nearly 120 companies offer homeowners insurance in Florida. The state has approved rates for 47 companies and reached agreements with 22 more. That is about 58 percent of the companies doing business in the state. The average premium reduction is 16 percent. Monday's testimony is part of an ongoing investigation of possible industry collusion. State insurance regulators in October subpoenaed Allstate for rate-related documents and correspondence between the company and trade organizations and national modeling firms. The company initially responded with 40,000 pages of documents. State officials in December cut short a two-day hearing with Allstate after less than three hours, saying the company had not provided a meaningful response. The company has since produced another 55,000 pages of evidence. "It would appear at this point that the company is acting in good faith," said Florida Insurance Commissioner Kevin McCarty. (Editing by Michael Connor; Editing by Andre Grenon) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Voluntary Benefits Forum To Meet March 4, 2008 The Voluntary Benefits Forum, an organization of voluntary, supplemental and affinity marketing professionals, to meet at LIMRA Headquarters. New Hope, PA, February 5, 2008--The Voluntary Benefits Forum (VBF) will hold its winter meeting March 4th. The focus of the meeting will be Consumer Directed Benefits. Presenters include Ron Neyer, VBF President, Senior Analyst, LIMRA International, Jennifer Parmelee-Witt, Asst. Research Director, LIMRA International, Fred Townsend, President, Townsend & Schupp, and Principal of Sage Scholars, and Rob Thurston, President, HR Consulting Group. The focus on Consumer Directed Benefits will provide an in-depth analysis of emerging Health Reimbursement Arrangements and Health Savings Accounts, will examine statistical trends of HRA’s and HSA’s, discuss strategies to market traditional worksite offerings with Consumer Driven Plans, explore ways to use technology in education, enrollment, and promotion, and review case studies from IBM, SkyWest Airlines, and others. All voluntary benefits, worksite and affinity sales and marketing professionals are invited to attend. Registration begins at 8:00AM. The meeting begins promptly at 8:30AM and will end at approximately 1:00PM with a networking lunch to follow. For meeting and registration information please contact Jim Ouimet at jimouimet@comcast.net or by phone at 215-862-3080.Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. SEC Forms Office To Pay Back Wronged Investors Tue Feb 5, 2008 1:40pm EST WASHINGTON (Reuters) - The Securities and Exchange Commission said on Tuesday it has created a new office in the agency to quickly distribute financial penalties to wronged investors. The Office of Collections and Distributions will be used to dole out more than $5 billion the SEC has recovered from securities law violators, the agency said. "The Commission's strong commitment to recovering money from wrongdoers and returning it to investors is amply demonstrated by the more than $2 billion we distributed last year," said Chairman Cox in a statement. The SEC has the authority to collect and distribute the funds due to the post-Enron Sarbanes-Oxley corporate reform laws of 2002. Before the Fair Funds provision of that act, the SEC sent financial penalties collected from its enforcement actions to the U.S. Treasury. The SEC said it has used this authority to distribute more than $3.5 billion to investors. It said the new office will help cut red tape and the cost of distributing the money. Richard D'Anna, who was previously senior vice president at 1st Bridgehouse Securities, has joined the SEC as director of the new office. Lynn Powalski, who has been an assistant director for collections and distributions within the SEC's enforcement division, will serve as the new office's deputy director. (Reporting by Karey Wutkowski, editing by Richard Chang) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Insurer Says Strong Profits Needed In Florida Tue Feb 5, 2008 4:56pm EST By Michael Peltier TALLAHASSEE, Fla. Feb 5 (Reuters) - An executive of The Hartford on Tuesday told Florida lawmakers probing high insurance rates that the group would need as many as six more years of strong profits to recoup losses from the devastating 2004 and 2005 hurricane seasons. In a second day of sworn testimony by insurance executives, a Florida Senate committee sought answers to why rates in the state have not dropped for many consumers despite legislative action to lower rates. In January 2007, Florida lawmakers expanded the state's hurricane reinsurance pool by $12 billion. But industry officials said reinsurance rates and replacement costs for damaged properties had climbed and offset the benefits of an enlarged state reinsurance fund. Thomas Johnston, senior vice president for The Hartford Financial Services Group (HIG.N: Quote, Profile, Research), on Tuesday said the 2004 and 2005 hurricane seasons still require the company to raise rates to recoup unprecedented losses. "Our homeowners book lost about $500 million," Johnston told members of the select Senate committee. "We made profits in 2006 and 2007, but we probably need five or six more years at that level of profit just to break even from those losses." Toward that end, the company last summer requested rate hikes that would translate into a 15 percent return on investment from its Florida customers. State insurance regulators rejected the request, countering that a 5.3 percent return was adequate. They are currently at an impasse. Given recent indications that reinsurance is getting cheaper, regulators say they may be able to strike a deal. "We may be able to find some middle ground now that they know better what their 2008 reinsurance costs may be," said Belinda Miller, deputy commissioner of the state's Office of Insurance Regulation. The Hartford is in the process of dropping a number of policies to reduce its Florida exposure. Other companies including Allstate (ALL.N: Quote, Profile, Research) are doing the same thing. During two days of hearings, a major area of contention is whether companies used relatively new hurricane models in setting rate requests that have yet to be approved by the state. Those models attempt to track near-term trends to account for what company representatives say are higher surface water temperatures expected over the next several years that may result in more destructive hurricane activity. On Monday, an Allstate executive said the firm used short-term forecasts to augment more traditional long-term actuarial models when it asked for increases of 43 percent. That rate request was denied. On Tuesday, representatives from the Florida Farm Bureau Insurance and The Hartford testified they did not use the short-term forecasts to justify rate hikes proposed in 2007. Shortly after lawmakers expanded the hurricane fund, the Farm Bureau said the legislation would reduce rates by 25 percent starting June 1. A follow-up rate request submitted in May called for an increase of 26.8 percent. Hartford's initial rate request cutting rates by 17.7 percent was followed by a request for an increase of 22.1 percent. Insurers said that until the risk exposure can be reduced, they would continue to ask for higher rates. State officials say their hands are tied. "It seems like we've done all we can do," said Sen. Jeremy Ring, a Democrat from Margate. The Senate committee was slated to conclude its hearing Tuesday. It will likely make recommendations to the full Senate but no legislation is required. (Editing by Michael Connor, Gary Hill) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
Not only the best way, but also the easiest way, to cover volunteers -- All you need to do is go to www.cimaworld.com/agent. (This is part of the Website of The CIMA Companies, Inc., which administers the VIS® program.) You will see a detailed explanation of the program, and a link to our Producer’s Agreement. The agreement is brief, and once you click on “I Agree” on that page, we have an agreement. At that point, you are ready to complete an online application, which will take you less than five minutes. You can either submit the app online, or print it to mail later. If you have questions, please call Vicki Brooks or Joan Wankmiller at 1.800.468.4200 or email them at vbrooks@cimaworld.com, or jwankmiller@cimaworld.com. We hope you’ll be participating with us soon! 6. Willis Group Launches New Financial Institutions Insurance Program Aimed at Clients’ Risks from Vendors New York, NY, February 4, 2008 – Willis Group Holdings (NYSE: WSH), the global insurance broker, announces its latest offering to help mitigate risk for financial institutions and other companies that outsource systems technology. The new Willis Vendor Insurance Program, the only product of its kind available, allows companies to set standards for the insurance of their technology vendors and provides a risk transfer solution purchased by the IT vendor that can protect both itself and their customer from liability arising from the services provided. The product was launched at last week’s American Bankers Association (ABA) Insurance Risk Management Conference in Indian Wells, California. “Many of our clients have come to us saying that they are having difficulty in securing proof that their outsourced IT vendors are in compliance with their contractual responsibility to carry professional Iiability insurance. Our challenge was to address an industry wide vulnerability that also created financial risk for the institutions using those vendors,” said John Bayeux, Financial Institutions Practice Leader and Executive Vice President at Willis. “Offering this new and innovative approach to managing unmitigated risks from vendors underscores our commitment to serving our clients’ needs.” The Willis Vendor Insurance Program can cover claims related to network management, web site or data center operations, security services and other technology services provided by vendors, including breaches of customer data, intellectual property infringements and other losses. Enhanced Professional Liability terms include coverage for network security liability, privacy liability, and software copyright coverage. While originally intended primarily for financial institutions, this coverage also has applicability for companies in the technology, retail and life sciences industries. www.willis.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. NAIC SVO Launches Public Database Regulatory Status of Select Insurer-Owned Securities Now Available on NAIC Web Site KANSAS CITY, Mo. (Feb. 4, 2008) — The National Association of Insurance Commissioners (NAIC) announces the launch of a new public database containing the regulatory status of certain insurer-owned securities. The database is intended to assist market participants that advise insurance companies and investment professionals working for insurance companies. The tool shows whether a publicly rated security is subject to regulatory guidance other than as indicated by its credit rating assigned by one or more public rating organizations. All of the securities listed in the public database are rated by an NAIC ARO (a credit rating organization whose services are purchased by the NAIC in connection with the administration of an insurer filing exemption) and designated or classified by the Securities Valuation Office (SVO). This public database was one of five projects adopted by the NAIC's Valuation of Securities (E) Task Force as part of an initiative to improve the transparency of regulatory processes used to determine regulatory guidance for new securities. The project required a year of development of both systems and software. The NAIC designations, valuations and classifications available in the database are developed by the NAIC SVO strictly for use by state insurance regulators, and are not intended for individual or institutional investors. NAIC designations and valuations may be assigned on the basis of state insurance financial solvency criterion or concerns not relevant to investors. Investors should not rely on an NAIC designation or valuation to buy or sell a security. The new public database can be accessed on the NAIC SVO Web site at www.naic.org/svo.htm. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. New Retirement Research Shows Positive Retirement Savings Behavior Does Not Equal a Confident Outlook for the Future New MassMutual research reveals myths about retirement confidence; Working with a financial professional may help alleviate anxiety SPRINGFIELD, Mass., Feb. 5 /PRNewswire/ -- New, thought-provoking research released today by MassMutual Financial Group reveals a surprising contrast in consumers' confidence about retirement preparedness and their actual savings behavior that could help shape the next generation of retirement savings solutions. The research study, conducted by Massachusetts Mutual Life Insurance Company (MassMutual), included responses from more than 17,000 individuals participating in some 2,300 employer-sponsored retirement savings plans administered by MassMutual's Retirement Services Division. In examining the relationship between savings confidence and actual savings behavior, the study found that individuals who save more and are more active in managing their retirement savings actually are less confident in their retirement security and the retirement decisions they make compared to individuals with lower savings rates. A key finding showed that those who are more active in managing their retirement savings (79 percent) are also more eager for help and information about investments and investing versus those who are less active (47 percent). According to retirement experts at MassMutual, working with a financial professional may provide the kind of help these individuals are eager for, as well as help alleviate anxiety they may have around their investments for retirement. "Rather than just track what people are actually doing in terms of retirement savings, we are also deeply interested in the 'Why,'" says Ian Sheridan, corporate vice president and chief marketing officer for MassMutual's Retirement Services Division. "Our research shows that what individuals say and what they actually do are at times explicitly different. This study will help us better understand the savings-mindset of individuals to better provide them the information, resources and products they need to feel confident about their retirement future." Participants in the MassMutual study were categorized as low, medium and high savers based on their annual deferral rates of salary into a 401(k) savings plan. Low savers deferred less than 4.0%, medium savers between 4.0% and 7.99% and high savers deferred 8.0% or more of their salaries. Individuals with the highest deferral rates said they enjoy managing their finances more than the low and medium savers (57 percent of high savers versus 49 percent of medium and low savers). Despite this fact, those who take an active role in saving more and making investment decisions lack confidence about those investment decisions and their financial security as they approach retirement. This is evidenced by the following findings: -- More money saved does not equal more confidence. Only 44 percent of high savers expressed confidence when making their investment decisions, compared to 54 percent of low and medium savers. -- Insecurity about investment decisions abound. Sixty-five (65) percent of high savers say they aren't sure their investment decisions are the right ones for them, as do 60 percent of low and medium savers. -- Saving more doesn't mean saving enough. High savers are more concerned that they won't have enough saved for retirement (44 percent) compared to only 32 percent of low and medium savers. -- Active savers want more help. High savers are eager for information about investments and investing, with 79 percent indicating they want help versus only 47% of low and medium savers. "The lesson is that some of the traditional assumptions about investment confidence, like deferral rates and active investment decisions, may indicate the exact opposite," Sheridan continued. "We cannot assume that someone who saves aggressively and actively manages those savings is confident or secure in their financial situation. Working with a financial professional can help these high savers better understand their position and make them more comfortable and confident in their retirement prospects. Likewise, we have to continue to find ways to encourage those low and medium savers that it is never too late to start saving more." For the retirement professionals at MassMutual, understanding this disconnect between consumer attitudes and actual savings behavior is driving the next generation of retirement savings products and services. For example, when enrolling individuals in 401(k) plans, MassMutual uses its e4(SM) system to create a dynamic enrollment environment. Using a handheld device, individuals can make enrollment, deferral choices and asset allocation decisions immediately, which results in higher participation and higher savings rates. This dynamic approach works well across all employee groups, from those very active and knowledgeable about their retirement savings to those uninterested and unengaged. As part of the company's long-held belief that consumers require varying degrees of financial assistance at different points in their lives, MassMutual has embarked on a multi-faceted consumer education campaign designed to help consumers move beyond just thinking about their financial issues and actually taking action -- by having a plan to help them realize their financial goals. Part of this campaign includes the recently announced national sponsorship of the PBS documentary Retirement Revolution, being produced by WTTW National Productions in Chicago and scheduled to air nationally this spring. "Anything that we can do to better engage Americans in helping to build their retirement future is a positive step," says Sheridan. "Our goal is to give people the knowledge they need at every step of the process to move forward with confidence." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Taiwan Life Insurance gets green light on China JV TAIPEI, Feb 5 (Reuters) - Taiwan Life Insurance Co (2833.TW: ) has won approval from Chinese authorities for an insurance joint venture in China, the company said on Tuesday, the third such tie-up between firms in the two countries. The news comes after sources told Reuters in April last year that the firm was in talks to buy half of an existing China insurance joint venture as it seeks to tap into the fast-growing market. [ID:nPEK99559] China's overall insurance premiums rose 14 percent in 2006 to 564 billion yuan ($78.5 billion) and are expected to keep growing at double-digit rates for the next five years, in part due to efforts by Beijing to encourage more people to buy insurance. Cathay Financial (2882.TW: ), parent of Taiwan's top insurer, and China Eastern Airlines (0670.HK: ) are running an insurance venture in Shanghai and other big Chinese cities. Shin Kong Financial (2888.TW: ), parent of Taiwan's No. 2 insurer, said in November that its insurance tie-up with Hainan Airlines (600221.SS: ) had been approved by Chinese authorities with business expected to begin later this year. [ID:nTP179914] ($1=T$32.0) (Reporting by Faith Hung; Editing by Jan Dahinten) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. EU Commission approves Aviva-Bank Zachodni JVs BRUSSELS, Feb 5 (Reuters) - Aviva Plc (AV.L: ), a British insurance group, and Poland's Bank Zachodni BZWB.WA won permission from the European Commission on Tuesday for two joint ventures in the Polish insurance sector. Bank Zachodni is owned by Allied Irish Banks (ALBK.I: ). The Commission's investigation focused on the underwriting of insurance products in Poland. Both parent firms are active in asset and pension fund management, the European Union competition regulator said in a statement. "As far as the Polish insurance market is concerned, the parties would have combined market shares below 15 percent," the statement said. "Regarding asset and pension fund management Aviva and Bank Zachodni would have combined market shares between 20 percent and 30 percent. However, the market investigation did not indicate any competition concerns," it said. The 15-year partnership is to sell life and general insurance products through Zachodni's bank network. Aviva and the Polish bank will each hold half of the equity share capital of the two joint ventures and each contribute half of the total 13.2 million pounds ($26 million) working capital for the new firms, Aviva said earlier. (Reporting by David Lawsky/Dale Hudson) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Wilbur Ross Looking At More Than Just Ambac Tue Feb 5, 2008 9:31am EST NEW YORK (Reuters) - Billionaire investor Wilbur Ross on Tuesday said he expects to decide soon whether to invest $1 billion or more in the hard-hit U.S. bond insurance sector. In an interview on CNBC television, Ross alternately characterized his decision process as coming to a conclusion within the next few weeks and "very shortly." Asked whether he was focusing exclusively on Ambac Financial Group Inc (ABK.N: ), the second-largest bond insurer, Ross said he was looking at more than one company. He did not elaborate. MBIA Inc (MBI.N: ) is the largest bond insurer. Not many people in the private sector are willing to put capital in the bond insurers, because there are potential big losses looming for the companies, Ross said. "It's not clear that there's enough rate of return from the good businesses to justify the amount of capital being put in as equity," Ross said. Ross revealed last week that he was considering investing more than $1 billion in bond insurers, which have seen their credit ratings under attack amid a collapse in the subprime mortgage sector and resulting lockdown in credit markets. Regulators including New York Insurance Commissioner Eric Dinallo have been in talks to shore up insurers' capital. A group of largest banks has joined together to look for ways to shore up Ambac, two people briefed on the talks said Friday. (Reporting by Daniel Burns and Dan Wilchins, Editing by Walker Simon) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. ChoicePoint(R) Acquires Optimal Decision Group (ODG) to Enhance Insurance Analytics Capabilities ALPHARETTA, Ga., Feb. 5 /PRNewswire-FirstCall/ -- ChoicePoint (NYSE: CPS) today announced it is acquiring Optimal Decision Group, a firm that develops and deploys advanced analytics and software to the insurance industry. The purchase of ODG will create additional value for clients by integrating ODG's pricing optimization into ChoicePoint's Data Services transactional products. http://www.optimaldecisions.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Aviva Announces 2.1 Bln Stg Bonus For Policyholders LONDON, Feb 5 (Reuters) - British insurer Aviva (AV.L: ) announced a 2.1 billion pound ($4.2 billion) bonus for 1.1 with-profits policyholders at its Norwich Union business and said it would also pay out 230 million pounds to shareholders. "The bonus will be used to enhance policy values by around 10 percent in total in three instalments (the qualifying dates being 1 January 2008, 2009 and 2010)," it said on Tuesday. (Reporting by Mark Potter, Editing by Clara Ferreira-Marques) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Amex, Wachovia, Wells Downgraded on Loan Worries Tue Feb 5, 2008 3:01am EST NEW YORK (Reuters) - Shares of American Express Co (AXP.N: ), Wachovia Corp (WB.N: ) and Wells Fargo & Co (WFC.N: ) fell Monday, dragging shares of other financial services companies lower, after brokerage downgrades that said U.S. consumers are falling behind on loan payments more often. Reporting by Jonathan Stempel; Editing by Gerald E. McCormick) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. E.L.M. Insurance Brokers, Inc. Announces The Simultaneous Opening Of New Northern And Orange County California Offices. EL SEGUNDO, CA…ELM Insurance Brokers, Inc. today announced the simultaneous opening of two new offices – one in Northern California, which will be managed by Michele Epstein, and a second in Orange County, California, which will be managed by Gregg E. Higgins. www.e-o.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Man Returns From The Dead, Suspected Of Fraud Tue Feb 5, 2008 12:31pm EST BUDAPEST (Reuters) - A Hungarian man who was reported dead by his wife in 2001 has been detained in the Czech Republic and is suspected of fraud, Hungarian police said. In a case reminiscent of the British canoeist who "returned from the dead" five years after he went missing, the man's wife said he had drowned while windsurfing on holiday in Greece. His body was never found and a Hungarian court declared him legally dead in 2003. The man had taken out several life insurance policies in 2000, worth more than 200 million forints ($1.15 million), and he also bought travel insurance before going to Greece, Hungarian police said in a statement. Last year, the man was detained by Czech police who handed him over to Hungary. He told Hungarian police that after the "accident" he had swum to shore where a friend gave him clothes and forged documents. He fled to Crete, Italy and finally to the Czech Republic. His wife is being questioned by police as an accomplice. She is also suspected of polyandry after she remarried in 2005 even though she knew her husband was still alive, police said. She had been unable to cash in the insurance policies, they added. Reporting by Krisztina Than; editing by Robert Woodward) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. GEICO to sponsor teen drivers in annual START program TUCSON, Ariz.--(BUSINESS WIRE)--Local teenagers are getting a chance to participate in the Safe Teen Accident Reduction Training (START) program as part of GEICO’s sponsorship and continued dedication to keep teenage drivers safe. START, which teaches five accident avoidance techniques including off-road recovery, anti-lock brake system (ABS) familiarization, skid recovery, evasive steering, and controlled braking, is a local program designed by the Tucson Police Department to give students real-life practice for real-life situations. GEICO has extensive materials on teen safe driving, including a DVD, “Real Teen Driving,” showing real teens in real driving situations. For more information, or to order teen safe driving brochures and DVDs online, please visit GEICO’s online Auto Safety library at www.geico.com/auto/safety. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Insurance Auto Auctions and Verastar Join Together WESTCHESTER, Ill.--(BUSINESS WIRE)--Insurance Auto Auctions, Inc., a leader in automotive total loss and specialty salvage services in the United States, today announced that it has entered into a definitive agreement to acquire Salvage Disposal of Georgia and Auto Disposal of Nashville, and related entities. Salvage Disposal and Auto Disposal currently operate under the name “Verastar” in multiple locations which include five auction sites in Georgia, two in Kentucky, three in Tennessee and one in North Carolina. The acquisition, which shall include all of the Verastar operations, is the second largest transaction in IAA’s 26 year history. The newly acquired auction sites play a strategic role in IAA’s expanding geographic service coverage in the Southeast. The new sites, complemented by existing IAA facilities in surrounding states, will allow IAA to further improve its comprehensive remarketing services coverage throughout the entire United States. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Mark Farrah Associates Expands Partnership with America’s Health Insurance Plans KENNEBUNK, Maine--(BUSINESS WIRE)--Mark Farrah Associates (MFA) is pleased to announce its expanded partnership with America’s Health Insurance Plans (AHIP). MFA first partnered with AHIP in 2007 to present informative business snapshots of health insurance companies on AHIP’s extended web site. AHIP now offers MFA’s health plan data products through its online store (www.ahip.org/store/). The alliance makes it easier for health plans and healthcare companies to access accurate, timely health plan enrollment and financial data. MFA’s database products present health plan performance measures such as fully insured membership, self-insured membership, net worth, revenue, medical expenses, medical loss ratio, underwriting gain or loss, net income, risk based capital ratio and hundreds of additional variables in user-friendly tables for easy download. This information is essential for market share assessments, competitive analysis and business planning in the dynamic healthcare industry. MFA products available through AHIP are the Health Coverage Portal™, a robust online database that provides a complete solution for health insurance market analysis with data for more than 1,000 U.S. insurance carriers; Health Plans USA™, a market share analysis tool that presents fully insured membership for all U.S. health insurance companies, and Medicare Business Online™, an analysis and trending tool that presents Medicare Advantage and Part D enrollment for plans in all 50 states. For more information about these products and to learn about significant AHIP member discounts, visit the AHIP online store or call MFA at 207-985-8484. www.markfarrah.com www.ahip.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. A.M. Best Comments on Acquisition of Great Midwest Insurance Company by Southwest Insurance Partners, Inc. OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has commented that the financial strength rating of A (Excellent) and the issuer credit rating of “a+” of Great Midwest Insurance Company (GMIC) (Byron Center, MI) are unchanged following the recent announcement that Southwest Insurance Partners Inc. (SWIP) (Houston, TX), a recently formed Texas holding company, has acquired FMG2, the parent company of GMIC, its affiliated underwriting agency, Shel-Ray Underwriters, Inc., and all of its subsidiaries. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Clear Choice Health Plans Selects New Transfer Agent BEND, Ore.--(BUSINESS WIRE)--Clear Choice Health Plans, Inc. (OTCBB:CCHN) today announced it has named American Stock Transfer & Trust Company (AST) as its new stock transfer agent. www.clearchoicehp.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Lockton Expands Insurance Brokerage Firm to Phoenix PHOENIX--(BUSINESS WIRE)--Lockton, the world’s largest privately held insurance brokerage firm, today announced the opening of its Phoenix office. Todd Newton, Senior Vice President and 20-year insurance veteran will direct the operation in Phoenix. Newton is a leading expert in benefits planning and consulting, with a particular emphasis in alternative funding strategies for employers. “Todd offers our clients a wealth of experience in the employee benefits arena,” said John Lumelleau, President and Chief Executive Officer of Lockton. “Our Phoenix office provides employers with fresh perspective and insights into managing employee benefits, one of their fastest rising operating investments.” More than 3,800 professionals at Lockton provide more than 15,000 clients around the world with insurance, benefits, surety and risk management services, offering an uncommon level of client service. From a modest, home-based insurance agency, Lockton has become the 10th largest insurance broker in the world. It was founded by Jack Lockton in Kansas City, Missouri, USA, in 1966. You can learn more at www.lockton.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Telemarketers, Stop Scrubbing and Start Calling with TeleBlock (BUSINESS WIRE)--Given that telemarketing is the lifeblood of any number of industries—real estate, insurance, travel & leisure, banking, to name a few —Do-Not-Call (DNC) list compliance is a crucial aspect of conducting business in America. In 2006, consumers in the U.S. purchased $900 billion worth of goods and services through telemarketers. This number was actually up 50% from $600 billion in telemarketing sales the year before federal legislation was passed in 2002, suggesting that, if anything, regulatory compliance has a resoundingly positive impact on telemarketing sales. Based in Glen Cove, New York, Compliance Systems Corporation (OTCBB: COPI, http://www.callcompliance.com) is a developer of technology-based compliance solutions for the teleservices industry. The company’s primary patented product, TeleBlock® Do-Not-Call Blocking System, automatically screens and blocks outbound calls against federal, state, and in-house DNC lists. “Telemarketers can’t just ‘phone it in’ when it comes to state and federal Do-Not-Call list compliance,” says Dean Garfinkel, Chairman and CEO of Compliance Systems Corporation. “Inadvertently placing calls to numbers on these lists can result in fines of $11,000 per call, millions in legal fees, tarnished brands, and even revoked licenses for businesses.” If a company employee—an executive in a branch office, a freelancer working from home, or a salesperson in the field—tries calling an individual on one of these lists, the number will be screened against the TeleBlock database and the call will be blocked. TeleBlock users also have the ability to call consumers who may be on the DNC list but have given permission to be contacted based on established business relationships. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. InsureMe Notes Trend in Overweight Individuals Shopping for Insurance Body Mass Index Takes Its Toll on Health Care Costs and U.S. Businesses DENVER--(BUSINESS WIRE)--Health care costs are expanding in proportion with American waistlines, according to InsureMe.com, a company that helps American’s find affordable insurance. According to InsureMe’s internal data for 2007 (of 50 states plus the District of Colombia), 47 states saw an overall increase in BMI. Washington, DC had the greatest increase in BMI—up over 10 percent in 2007. According to national reports, Washington DC also has the most overweight children in the country. According to InsureMe data, the states with the highest BMIs were Louisiana, Arkansas, Mississippi, Michigan and Maryland. The only states that saw BMI decreases in 2007 were Delaware (-0.45 percent), Louisiana (-0.59 percent) and Hawaii with an impressive change of -6.53 percent. The findings were aggregated from data used for insurance quoting purposes. One trend noted was the increase of body mass index (BMI) in U.S. consumers. Check out the average BMI for all 50 states. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. AIG American General Launches AIG Accident Expense Plus New supplemental health insurance policy answers question of what to do about high out-of-pocket expenses HOUSTON--(BUSINESS WIRE)--American General Life Insurance Company (American General Life), a subsidiary of American International Group, Inc. (AIG), has announced the launch of AIG Accident Expense Plus, a health insurance product that provides accident medical coverage as a gap-filler to major medical policies. AIG Accident Expense Plus also allows the policyholder to include a critical illness rider1 that provides benefits in the event of heart attack, stroke or cancer. “To combat rising premiums in their major medical plans, many individuals and families are increasing their deductibles, co-payments and other out-of-pocket expenses,” said Jay Drucker, vice president, Accident and Health, AIG American General. “AIG Accident Expense Plus offers an easy and affordable solution to help ensure that out-of-pocket costs from an accident or critical illness don’t jeopardize their financial stability.” Some of the key benefits of the product include: * Benefits are paid directly to the policyholder, not the provider * Policyholders choose the benefit amounts based on individual needs * Policyholders have the option to choose any hospital, physician or medical facility * Benefit payments are not coordinated with payments from the insured’s major medical plan * The plan covers individuals as well as their spouses and children “AIG Accident Expense Plus is an ideal way to protect against the sometimes staggering financial burdens associated with an unforeseen accident, and those can include sports-related injuries, which many of today’s active families face,” said Drucker. “Additionally, by pairing an already broad accident insurance policy with an optional critical illness rider, individuals and families alike can protect themselves without the expense of purchasing separate policies.” For more information about AIG Accident Expense Plus or AIG American General, visit www.aigag.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Symetra Financial Opens the Door to Retirement Savings For Small Business Employees BELLEVUE, Wash.--(BUSINESS WIRE)--As more employers consider alternatives to traditional pensions for providing retirement benefits, new data reflects a growing need for defined contribution retirement plans among America’s small to mid-sized companies. Symetra Financial offers a variety of flexible and cost-effective retirement plans to help emerging businesses provide meaningful savings options to more workers. A recent poll by Wall Street Journal Online/Harris Interactive found that 60 percent of U.S. adults feel their employer is obligated to help with retirement needs.1 Yet less than half of small businesses typically offer a retirement plan to workers, according to an Employee Benefits Research Institute survey.2 This in spite of the fact that, from 1987 to 2006, workers at small businesses have shown an increased probability of participating in an employer-sponsored plan when one is made available to them. www.symetra.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Insurance Pricing Goes Back to the Future EMB's latest modeling software enables insurers to predict future by reviewing millions of historical policies and claims SAN DIEGO, Calif. & LONDON--(BUSINESS WIRE)--EMB America, one of the leading property and casualty (P&C) actuarial consulting firms in America, today announced the launch of its latest release of software products within its insurance pricing suite. By using the software, actuaries are able to develop profitable pricing strategies for P&C risks such as individual auto policies, homeowners, boats, commercial autos, workers compensation, medical malpractice and more. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Fitch Publishes New Report on Property/Casualty Insurer Profit Dynamics CHICAGO--(BUSINESS WIRE)--Fitch Ratings has published a new report: 'Property/Casualty Insurance Profit Dynamics'. The report discusses profitability dynamics for property/casualty insurers and how Fitch assesses insurer profitability on a statutory basis, examining the interplay of five key factors: underwriting performance, investment yield, operating leverage, asset leverage and tax rates that affect insurers' profitability and return on surplus. The report also introduces a model based on these five key factors that helps to assess the source of returns for an insurer. This model is also useful as a forecasting tool for estimating future profitability and for considering sensitivity of returns to changes in balance sheet composition, the underwriting cycle, and interest rates. The full report is now available on the Fitch web site at www.fitchratings.com under Financial Institutions then Insurance then Special Reports. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. RIMS Announces Upcoming Report On Enterprise Risk Management New York, N.Y., February 4, 2008—The Risk and Insurance Management Society (RIMS) has announced plans to release a study this spring on the state of Enterprise Risk Management (ERM). The report is based on data gathered from some 500 corporate risk practitioners over the course of the past year and is being developed in conjunction with software solution provider LogicManager, co-developer of RIMS Risk Maturity Model for ERM. “RIMS upcoming report on ERM will be very telling on how risk management currently stands as a discipline, as well as a business function,” says Mary Roth, executive director of RIMS. “It will provide insights into the state of ERM today and demonstrate the extent to which businesses are in the process of implementing ERM as a critical part of their risk management strategies.” RIMS Risk Maturity Model for ERM and other ERM resources are available online in RIMS ERM Center of Excellence at www.RIMS.org/ERM. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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