The Mortgage Insurance Cos of America on Monday said 60,911 insured borrowers were at least 60 days late on payments in February. That is up from 44,111 a year earlier, but down 11.7 percent from January's record 68,950.

Defaults have topped 60,000 for four straight months, a level not previously reached since data were first tabulated in 2001. Late payments are often a precursor to foreclosure.  (Editing by Maureen Bavdek)

SAN DIEGO--(BUSINESS WIRE)--Hurricanes pose the greatest ‘act of nature’ risk to the U.S. insurance industry for 2008, according to EMB, a global actuarial consulting firm. With the hurricane season on the horizon, insurers must prepare for this heightened risk.

The threat of hurricanes has been at the top of the U.S. property and casualty (P&C) insurance risk list since Hurricane Andrew devastated southern Florida in 1992, causing an estimated $26.5 billion in damages. Despite a drop in land-falling hurricanes in 2006 and 2007, both years experienced higher-than-average hurricane activity in the North Atlantic.

With the events surrounding Hurricane Katrina in 2005 and multiple land-falling hurricanes in 2004, U.S. insurers have experienced the implications of the increased frequency and severity of hurricanes nationwide. However, EMB cautions insurers not to be lulled into a false sense of security based on the relative calm of the past two years.

“We’ve seen the devastating effects of hurricanes – homes and other property completely destroyed. Insurance companies are still struggling to recover from Katrina,” said Alice Gannon, senior consultant of EMB America. “The past two years have been quieter for insurers, but meteorological research indicates that we still experienced an uptick in North Atlantic hurricane activity. This is a trend that is likely to continue for several years, so insurers must prepare themselves to withstand losses in the event of another catastrophic landfall.”

While hurricanes top the list of P&C insurance risk, other ‘acts of nature,’ including tornadoes, earthquakes, winter storms, fire and hail must also be accounted for when insurers assess their pricing strategies. The recent Atlanta tornado, which caused an estimated $250 million in damage and the 2007 California wildfires, which cost insurers over $1.5 billion, have made this clear. The overall catastrophe potential in a location as geographically diverse as the U.S. means that no insurer is completely safe. In order to stay ahead, P&C companies must develop detailed enterprise risk management (ERM) strategies and processes that account for the risks in a shifting climate.

“Accounting for the unaccountable, as we do with these ‘acts of nature,’ is the largest obstacle facing insurers,” added Tom Hettinger, managing director of EMB America. “Companies should not be resting on their laurels when developing risk management strategies and determining prices. Instead, insurers need to factor in issues surrounding climate change and must look to incorporate long-term weather trends into their pricing.”

“In doing so, to remain competitive, insurers must explore solutions that enable them to get a more granular understanding of how individual risk factors can affect their pricing models. This increased insight will enable them to more easily adapt to and prepare for the destruction that results from unpredictable forces of nature.”

PORTLAND, Maine, April 1, 2008 /PRNewswire-USNewswire/ -- Although the risk of experiencing an income-limiting disability continues to rapidly rise among the American workforce, most workers are not preparing for the potential financial consequences that a disability can create. According to a new survey from the Council for Disability Awareness (CDA), a majority of workers -- 56 percent -- have never discussed with anyone how they would continue to pay for their living expenses if a disability kept them out of work for several months or longer. 

The survey found that while the majority of workers rated their ability to earn a living as the most important contributor to their long-term financial security -- three times greater than those who rated retirement savings as number one -- two in three workers do not even think about disability when they discuss their "financial planning."

Among the workers surveyed:

-- almost 90 percent believe disability planning should start in a person's 20s or 30s;

-- yet large majorities (82 percent) are still concerned about how they would pay their normal living expenses if their income suddenly stopped because of an accident or illness;

-- seven in 10 workers could cover their expenses for six months or less, a potential challenge to their financial security since the average long-term disability lasts more than two years; and

-- young workers ages 21 to 35 are particularly vulnerable, as over half (68 percent) indicated that they could cover normal living expenses for just three months or less if they were to lose their income.

"The survey underscores the need for workers to incorporate the financial risks associated with disability into their financial planning mindset and actions. The ability to earn a living is the most important driver of financial security for the majority of people; it needs to be valued like a retirement fund, savings account or a home," explained Robert Taylor, president of CDA.  http://www.disabilitycanhappen.org

SEATTLE, April 1, 2008 /PRNewswire/ -- Milliman, Inc., one of the premier global consulting and actuarial firms, today released results of a study to measure the cost effectiveness of consumer-driven health plans (CDHPs). Working in concert with the National Business Group on Health (NBGH) and six of its member firms, Milliman completed a quantitative analysis of employer programs that offer their employees a choice of CDHPs or non-CDHPs. These programs covered approximately 225,000 members with more than 30,000 enrolled in a CDHP. The actual CDHP penetration of the six employers ranged from 4.4% to 76%.

"While many insurers and a growing number of employers promote CDHPs, our study sought to determine how well they work," said co-author Jack Burke. "When offered as a new choice, CDHPs deliver cost and savings results that are modestly better than would be expected based on typical risk- and benefit- adjustment factors. This contrasts with the more dramatic savings that CDHPs appear to bring if certain adjustments are not taken into account. We believe that until members can truly compare and shop for providers' quality and cost, CDHP savings are likely to remain limited to the reduced utilization expected from high-deductible plans," Burke added.

"As with most earlier healthcare benefit innovations such as HMOs, younger and healthier people tend to be the first to choose CDHPs, but this will likely change as the market accepts the CDHP concept," added Bruce Pyenson, who contributed to the report. 

"The Milliman research demonstrates that during this early era of movement to consumer-driven health plans, the design of the plan is very important and, as is true of all new options, when people have choice, they often do not change. Inertia is a powerful force in health benefits: people who are engaged in ongoing care are the least likely to change plans. Not surprisingly, as happened in the movement to HMOs in the 1980s and 1990s, often the 'healthiest' and youngest employees select the new plans. Among the six employers studied that offered multi-choice plans, Milliman documented savings from as high as 12% and as low as no savings after adjusting for a number of key factors," said Helen Darling, President of the NBGH. "Some of our employers did not move to CDHPs primarily to save money in the immediate term, either for themselves or their employees. Rather, they offered CDHPs to change how employees thought about their healthcare and how they would behave when their money was at stake. This is a strategy, not a tactic."

The complete Milliman Consumer-driven Impact (CDI) Study is now available; go to www.milliman.com and search on "consumer-driven impact" to download the study.

HARTFORD, Conn.--(BUSINESS WIRE)--Travelers (NYSE: TRV) Construction today expanded its eQuote system to include Railroad Protective Liability coverage (RRP). Designed with the Travelers Independent Agent network in mind, the addition of Travelers Construction’s RRP to the eQuote system allows agents to quote, bind, obtain a policy number and print a proposal for most jobs. For jobs that require additional underwriting review, the quote will generally be delivered within 24 hours. The eQuote system also allows Travelers agents to quote RRP coverage for construction companies whose general liability coverage is written with a carrier other than Travelers. www.travelers.com.

In a general session, Hartwig noted that despite the slowdown in the U.S. economy, the p/c industry will be somewhat cushioned from its effects.

“Insurers are in a better position than banks and many other segments of the economy. The vast majority of p/c insurance business (98 to 99 percent) is related to renewals and is going to be renewed,” he said.

Hartwig also observed that the impact on insurers in terms of exposure growth would be marginal, because many types of insurance, such as workers’ compensation and auto liability, are compulsory.

While insurers are sensitive to interest rates, Hartwig said the silver lining is that historically the industry’s best underwriting results over the last 100 years have been turned in during or following periods when interest rates were low.

 “This decade is no exception. That focuses management on underwriting and turns their attention to understanding that you’re not going to be able to pay for poor underwriting and pricing decisions with what you’ve earned on the investment side of the equation,” he said.

Even though the p/c industry produced strong financial results in 2006 and 2007, the slow cyclical and economic growth environment ahead does represent a challenge for insurers.

Assurant Specialty Property is a leading provider of specialty insurance and collateral protection programs.  It is part of Assurant (NYSE: AIZ), a premier provider of specialized insurance products and related services in North America and selected international markets.

Steve Hein, vice president, National Sales, said Assurant Specialty Property is the first insurance carrier to offer an IUI endorsement with a renters insurance program.  “An immediate concern after a job loss is often how to pay the next month’s rent. And that also can be a concern of the person’s property manager.  This new endorsement option for our renters insurance program can provide peace of mind to both parties in an uncertain economy.”

Assurant Specialty Property said IUI provides residents the security that they will receive assistance to cover their rent should they lose their job involuntarily, and property managers peace of mind in knowing that they will collect a rent stipend directly from the insurance carrier if a resident is unable to pay the rent.

This optional endorsement generally will add about $69 to the cost of the renter’s annual premium. The additional coverage will provide a benefit of up to $1,000 per month for a maximum of six months toward the resident’s monthly rent. Payments are made directly to the property management company or property owner.

Assurant Specialty Property has developed a turnkey renters insurance program with administrative and customer support, training, marketing collateral, insurance enrollment, claims administration, and much more to assist property managers in offering renters insurance to their residents.

For more information on this program, please contact Assurant Specialty Property at 800.852.2244, ext. 36009, or visit, www.assurantresidentsinsurance.com.

DES MOINES, Iowa – March 31, 2008 – An alarming number of U.S. employees spend valuable time during their work days dealing with more than just regular job duties. For many workers, their family, financial, home or automobile legal woes compete for time and attention – resulting in lower job performance, productivity and morale.

“Workplace effectiveness often drops when employees are preoccupied with legal and financial concerns,” says Cameron Sutton, President and Chief Executive Officer, ARAG. “The impact, the frequency and the complexity of legal woes can adversely affect employees and the organizations for which they work.”

A recent ARAG-commissioned study measured the impact of employee legal woes, the use of legal services and employee attitude toward legal services. The study, entitled “Measuring the Effects of Employee Financial & Legal Woes,” was conducted by Russell Research, which interviewed more than 1,000 full-time employees, representing a nationwide, demographically-dispersed base.

Among the key results of the ARAG Legal Woes study:

Seven out of 10 surveyed employees experienced one or more legal woes during a 12-month period.

They spent, on average, 57 hours while at work, dealing with legal woes.

Four of 10 employees said legal woes had a negative impact on work performance (focus, stress, efficiency or effectiveness on the job).

The most common legal woes involved issues of family care, credit trouble, child custody, consumer fraud, home or automobile purchase or repair and estate planning.

According to Sutton, “People have traditionally invested in life, health, automobile and home insurance to achieve security and peace of mind. They are becoming increasingly aware of the risks that legal woes represent in their personal and work lives.”

The Legal Woes Study indicated that one out of eight employees worked for an employer that offers legal plans at work while seven out of 10 said they believe legal plans would be useful in resolving personal legal needs.

Because legal woes take a heavy toll on workplace productivity and can affect business profitability, Sutton stated that concerned employers are looking for effective ways to address this issue and many are considering the addition of legal plans to their benefit packages.  www.araggroup.com

Hartford, Conn., March 31, 2008 – New research from The Hartford Financial Services Group, Inc., (NYSE: HIG), one of the nation’s largest diversified financial services companies, found that most Americans sometimes find themselves in a precarious financial position, without a safety net if they experience a disabling illness or injury.

A large majority of survey respondents (70 percent) reported that they are meeting their expenses with little or nothing left over after bills are paid, and an additional 8 percent said they can’t meet their household expenses. In addition, 95 percent of consumers surveyed said they would have to change their lifestyle if they lost part of their family’s income for three to six months. As a result, they find themselves in an unsettling financial predicament, and yet only about half of the respondents report having short- or long-term disability insurance to cover their needs should the unexpected occur.

“Americans are trying hard to make ends meet and are also feeling the pinch that comes with debt. The delicate budget balance they try to navigate could be upended by a misfortune, such as a disability,” said Ron Gendreau, executive vice president of The Hartford’s Group Benefits Division. “What’s more concerning is that many Americans are braving this risk without income protection at the time when they need it most.”

While one in four survey participants said they believe they are more likely to win a lottery than suffer from an injury or illness for three to six months, U.S. workers have a one-in-three chance of becoming disabled at some time during their working years, according to the U.S. Social Security Administration.

“Many people dream about a large financial windfall. The unfortunate reality is that odds are far more in favor of experiencing a disability than celebrating a lottery win,” Gendreau said. www.thehartford.com

Farmers indicates a 15.4 percent rate change on its application, but requests a 6.9 percent increase.  Greenlining alleges that the proposed 6.9 percent increase, one-tenth of a percent below the 7 percent necessary to mandate an automatic public hearing, is “a conspicuously suspect figure that is intended to circumvent a mandatory hearing.”

Greenlining also contends that Farmers’ rate increase is unjustified, citing a number of serious concerns including Farmers’ lack of community reinvestments and charging its policyholders excessive fees for legal representation.  Greenlining notes that legal action has already been taken in California courts against Farmers for overcharging its own policyholders 4.5 billion dollars in attorney fees. 

For more information, visit www.greenlining.org 

Contact: Samuel Kang, Legal Counsel, 510-926-4011, SAMUELK@GREENLINING.ORG

BHCs’ $4.65 billion in fourth-quarter mutual fund and annuity fee income was up 15.9% from $4.01 billion in the fourth quarter of 2006, but down 22.2% from third quarter 2007.  In 2007, 63.6% of BHCs engaged in mutual fund and annuity sales and servicing activities.  Also, in 2007, 42.5% of BHCs reported earning $2.02 billion in commissions from the sale of annuities, which accounted for 8.9% of total year-to-date (YTD) mutual fund and annuity income.

 www.BankInsurance.com www.symetra.com

By Dan Wilchins

NEW YORK (Reuters) - Lehman Brothers Holdings Inc (LEH.N: ) raised $4 billion of capital on Tuesday in a deal that could boost Lehman's outstanding share count by about 15 percent, but could also stop questions about the investment bank's stability.

Lehman's shares rose 10.2 percent, as the offering assured the market that the fourth-largest U.S. investment bank had the support of major investors.

(Reporting by Dan Wilchins; Editing by Mark Porter and Maureen Bavdek)

By Jennifer Ablan and Lilla Zuill - Analysis

NEW YORK (Reuters) - Global investors will soon be swamped by an estimated $100 billion of debt and equity issued by U.S. banks and financial institutions undergoing repairs, even as appetite for these securities is receding.

Already, investors have had to watch their financial stock holdings plummet in value as the sector's earnings remain under pressure with the credit crisis pushing up funding costs and squeezing margins.

But with the U.S. economy slowing further, financial institutions are likely to suffer from even more bad debts -- which have analysts warning that they will soon have to raise capital to counter the effects on their balance sheets.

"Shadow banks will likely be forced to raise expensive capital and/or reduce the bottom line footings of their balance sheets," said Bill Gross, chief investment officer for Pacific Investment Management Co, home to the world's biggest bond fund, in his April investment outlook.

This "shadow banking system," which consists of all the levered investment conduits, vehicles and structures created by major investment banks, is now facing liquidity constraints.

(Additional reporting by Dan Wilchins, Richard Leong and Dena Aubin; Editing by Braden Reddall)

© Reuters 2008 All rights reserved

By Andrew Hurst

LONDON (Reuters) - UBS Chairman Marcel Ospel, whose resignation was announced on Tuesday, threw in the towel after the Swiss bank said it was seeking its second emergency capital injection in a matter of months as its subprime losses soar.

Ospel, vituperated in the Swiss media as the man responsible for a disastrous venture into U.S. subprime mortgages, survived a barrage of criticism from angry shareholders at a company meeting little more than a month ago.

But news that UBS was writing down an additional $19 billion in ailing assets, bringing the total cost of its subprime fiasco to a staggering $37 billion, was too much even for the resilient Ospel to bear.

Citigroup's head, Charles Prince, and Merrill Lynch CEO Stan O'Neal have been some of the biggest casualties, both forced out last year after the banks they ran took hefty charges.

(Editing by Quentin Bryar)

© Reuters 2008 All rights reserved

NEW YORK (Reuters) - Private equity and real estate firm Blackstone Group (BX.N: ) said on Tuesday it raised $10.9 billion to invest in real estate, and said there should be attractive investment opportunities ahead.

Blackstone said it had raised a total of nine real estate funds with total capital commitments of $25.7 billion. The fund it just closed is called Blackstone Real Estate Partners VI.

Previous real estate investments Blackstone has made include Equity Office Properties and Hilton Hotels Corp.

(Reporting by Megan Davies, editing by Gerald E. McCormick)

© Reuters 2008 All rights reserved

Security Capital's financial guarantee unit, XL Capital Assurance Inc, is seeking damages and court authorization to terminate contracts that protected about $3.1 billion of Merrill's debt portfolio from default.

XL said Merrill gave away control rights over the portfolio of collateralized debt obligations to third parties. XL said this violated agreements that XL retain sole control rights as a condition for its credit default swap contracts.  (Reporting by Chris Reiter; editing by John Wallace)

© Reuters 2008 All rights reserved

SHANGHAI, April 1 (Reuters) - China's insurance regulator, in draft regulations soliciting public comment, is moving to curb fundraising by insurers, requiring that they seek regulatory approval first, state media said on Tuesday.

Under the draft rules, expected to be promulgated this year, insurers must prove their ability to pay out claims and that they have had no major regulatory breaches for at least three years before applying for initial public equity offers or follow-on equity offers, the official Shanghai Securities News said on Tuesday. ($1=7.1 Yuan) (Reporting by Lu Jianxin; Editing by Edmund Klamann)

© Reuters 2008 All rights reserved

To help drivers make sure their road trips to Mexico are fun and full of great memories, GMAC Insurance and its Mexican insurance partners ABA Seguros and IIG offer the following tips.

Five Tips to Keep You and Your Vehicle Safe in Mexico

1.  Re-insure Yourself. 

2.  Know the Law. 

3.  Stay With Your Car.  M

4.  Plan Ahead. 

5.  Study Up. 

 www.gmacinsurance.com.