WASHINGTON (Reuters) - Adding wind coverage to the National Flood Insurance Program would present major challenges to the U.S. Federal Emergency Management Agency (FEMA) and could expose taxpayers to high costs, said a study by congressional investigators obtained by Reuters on Monday.

With the Senate expected to take up a post-Katrina flood insurance bill soon, the Government Accountability Office study said FEMA "would need to complete certain challenging steps" to add wind coverage to the program, as proposed in a bill passed by the House of Representatives in September.

As drafted months ago, the Senate bill would not add wind coverage to the program, but insurance industry lobbyists said a wind amendment may be offered. Adding wind coverage is backed by some coastal lawmakers and generally opposed by insurers.

A broad coalition of environmentalists, state floodplain managers, fiscal policy conservatives and taxpayer and consumer activists are also advocating against any wind amendment.

The GAO, which is the investigative arm of Congress, said that if wind coverage were added, FEMA would have to set wind hazard prevention standards, adapt existing programs, create a new rate-setting process and undertake promotional efforts.

"Finally, FEMA would need to put staff and procedures in place to administer and oversee the new program, while it faces current management and oversight challenges with the National Flood Insurance Program (NFIP)," the GAO said.

Katrina and the other hurricanes of 2005 left the NFIP more than $17 billion in debt to the U.S. Treasury. The program -- set to expire in September if not renewed by the government -- is widely seen as incapable of repaying that amount.

Congress has been working for months on reauthorizing the NFIP. The House bill does that and calls for creation of a combined federal program with both wind and flood coverage.

"I don't get it. You have a program that's already wasting money and doesn't work and you want to add more to it?" said Robert Hunter, former federal insurance administrator and now director of insurance at the Consumer Federation of America.

Federal wind insurance offered through the NFIP "would needlessly displace the private market, disrupt existing state funds, and create a significant burden for U.S. taxpayers," the Property Casualty Insurers Association of America, an industry group, said last month in a statement.

The White House has threatened to veto the House bill.

The GAO said the House bill would require premium rates to be adequate to cover any wind damage exposure, while it would also restrict borrowing by the program from the Treasury.

Still, the GAO said, the potential exists for losses to greatly exceed expectations, as happened with Hurricane Katrina in 2005. This could increase FEMA's total debt, it said.

Under the NFIP, about 90 private insurers sell and service flood policies on the government's behalf. The companies process claims, collect premiums and send the money to FEMA.

The government is involved in the market because the private sector on its own does not adequately cover flood risk. Most homeowners' policies cover wind damage, but not flooding.

Disputes over "wind versus water" damage have plagued State Farm, Allstate Corp and other insurers ever since Katrina slammed into the Gulf Coast in August 2005 with 140-mile-per-hour winds and a massive flood surge.

Afterward, some homeowners accused home insurers of refusing to provide coverage by blaming hurricane damage on flooding, thereby shifting claims onto the NFIP.

(Editing by Kim Coghill)

© Thomson Reuters 2008 All rights reserved

KANSAS CITY, Mo. & LONDON--(BUSINESS WIRE)--Global insurance broker Lockton has published its Spring 2008 Market Update, a snapshot guide to the latest trends and emerging risks confronting risk managers and insurance carriers today.

The 2008 Market Update contains thought-provoking contributions on subjects ranging from U.S. terrorism legislation to the challenge of covering potential technology liabilities and identity theft. It is written by 30 world-leading authorities on risk.

Property, Casualty, Executive Risks, Employee Benefits, Aviation, Energy, Construction, Real Estate and other insurance and reinsurance markets including Lloyd’s are also covered in the report. It also includes reports on regions of the world including the U.S., UK, Europe, Africa, Asia and Latin America.

Highlights include:

* U.S. Director’s and Officer’s Coverage: “Overall, despite the credit/sub-prime situation and the economic downturn, we expect rates to continue to trend downward. There will be exceptions to this – particularly certain sectors including financial institutions, home builders and real estate,” writes Rodger Laurite, Lockton Senior Vice President in Atlanta.

* Global Casualty Coverage: “The market continues to fall even for the most exposed of risks. As new underwriters enter the market, the incumbent carriers are ever more intent to maintain their renewal business, even at reduced prices. As with last year, we anticipate a global average reduction of 10-15 percent,” writes Tony Hardy, Lockton Managing Director of Global Casualty lines in London.

* Global Energy: “As a result of the high rate levels, new capacity has entered the energy market… As we enter 2008, it is clear that the market has resigned itself to further rate reduction which could escalate as the year progresses,” says John Rathmell, President of Lockton Marine and Energy in Houston.

To obtain free copies of Market Update, visit http://www.lockton.com/Insights-And-Publications/Newsletters/ Market-Update.aspx or contact your local Lockton office.

Tampa, FL – May 2, 2008 – Health Plan Administrators, Inc. (HPA), a member of the IHC Group and a leading marketer and administrator of short-term health insurance plans, today announced the availability of a new Agent Resource Center (ARC) embedded in its agent-centric Web site. The ARC includes turnkey marketing fliers and a viral video for agents to educate new graduates about the potential need for short-term health insurance following college graduation.

“Insurance agents are actively seeking ways to attract new clients or connect more deeply with individual clients within their existing group business. Short-term health insurance is a great way to do this and HPA’s new ARC allows brokers to go online, customize marketing pieces with their personal contact information, and print them in a matter of minutes. The fliers and video can easily be distributed by e-mail,” said Jim Kenneally, chief sales and marketing officer of HPA.

Kenneally added, “We are very excited about releasing this edgy, humorous video in time for agents to use during college graduation season. This tool allows agents to send a professional video commercial with their electronic information embedded into the e-mail as a call-to-action tactic. The video will continue to work for them as clients pass it along to their friends and associates, and so on. This effort will allow our agents to drive new business 24/7.”

The customizable HPA fliers, links and the viral video are available to licensed agents by visiting the ARC on HPA’s site at www.hpainsurance.com or by calling (800) 277-3323. Visit https://www.hpainsurance.com/ProtectYourGrad/?agent=continucare to watch the video, which can be customized with a unique link for the agent after registering the information with HPA. www.hpainsurance.com

NEW YORK – May 5, 2008 – When asked to list their assets, many people are likely to fail to include their ability to earn an income.  However, when that ability is impaired because of a disability, some are left financially unprotected.  In fact, only 58% of full-time employees say they have disability income insurance protection, according to the 6th annual MetLife Study of Employee Benefits Trends.  Nearly half of those, 41%, admit they don’t know how much protection they have.  The majority of working Americans (59%) have taken no steps to determine their households’ needs with regard to disability coverage.  For single people – who likely have only their own income to rely on – and young families – the majority of whom (59%) admit to living paycheck to paycheck – the loss of steady income can be especially devastating.

In the event that an individual becomes unable to work because of sickness or injury, disability income insurance can replace a portion of lost income, helping to ensure that day-to-day living expenses are covered and that long-term financial goals can be addressed.  MetLife offers tips to make it easier for consumers to assess their financial needs and obtain appropriate levels of disability insurance coverage.

“Unfortunately, people tend to grossly underestimate the likelihood of becoming disabled.  The workplace can be a starting point for building a strong financial safety net, and it is important for American workers to understand the disability coverage, if any, that they have through their employer, and take steps to supplement it if it’s not adequate for their needs or not available,” says Michael Fradkin, vice president, MetLife Group Disability. 

Lynn McDonough, vice president, MetLife Individual Disability Income adds, “It really only takes three simple questions to help people put the importance of disability income insurance in perspective:  If you’re out of work because of a sickness or injury how will your bills continue to be paid?  Do you have ‘rainy day’ emergency funds?  If so, how long would that money last? These answers are an important first step to determining your financial protection needs.”

www.metlife.com.

NEW YORK, May 5, 2008 — Victims of the tornadoes that swept through Virginia on April 28, and through Arkansas on May 2, are struggling to put the pieces of their lives back in place and getting ready to begin the claims filing process.

Standard homeowners and business insurance policies cover wind damage caused by tornadoes and severe weather. Homeowners insurance policies also provide coverage for additional living expenses policyholders will need to finance temporary housing costs and other daily necessities. Damage to vehicles is covered under the comprehensive section of standard auto insurance policies, which is optional.

Over 140 homes, and several buildings, including a hospital, were destroyed by three twisters that hit Suffolk, Virginia, and two towns close to Richmond. In 16 Arkansas counties tornadoes and storms destroyed 350 homes and businesses, killing at least seven people, and injuring 13. Each year about 1,200 tornadoes with wind speeds as high as 300 mph touch down in the United States. Though not generally as destructive as hurricanes, tornadoes are more frequent and can also cause severe damage.

The Insurance Information Institute (I.I.I.) offers the following advice to speed the insurance claims settlement process: www.iii.org

Dominic D’Alessandro was appointed President and Chief Executive Officer of Manulife Financial in 1994. His decisive leadership has transformed Manulife from a mutual insurance provider valued at approximately $2 billion to an international, diversified financial services leader with a market capitalization of more than $60 billion and has led the company to record financial performance.

Manulife is now among the most profitable life insurance companies in North America, and a world leader in the financial services industry. In 2004, he managed the largest cross-border transaction in Canadian history by merging with John Hancock Financial Services, creating the second largest life insurance company in North America and the fourth largest in the world, at that time.  Mr. D’Alessandro continues to promote Manulife’s values, established under his leadership, summarized by the acronym PRIDE, which stands for Professionalism, Real Value to Customers, Integrity, Demonstrated Financial Strength, and Employer of Choice.

Legendary actuary, Professor G. S. Diwan (1901-1987), was instrumental in the development of the actuarial profession in India. He taught mathematics and actuarial science in Elphinstone College and Sydenham College and through his excellent teachings inspired many young mathematicians to embark on an actuarial career. While his most significant contribution was as India’s foremost teacher of actuarial science, he also achieved considerable distinction as a consultant in other areas, centered on life office valuations, valuations of life interests, gratuity valuations and government service. After his retirement he worked for the Government of Bombay and as a consultant in non-life insurance. 

Patrick G. Ryan is the founder and Executive Chairman of Aon Corporation - the world's largest insurance and reinsurance intermediary, and a global leader in risk management, insurance and reinsurance brokerage, and consulting - which has its origin in a small insurance agency he started in 1964. Under Ryan’s leadership the company continued to expand through organic growth and acquisition, and in 1987 changed its name to Aon Corporation.

Mr. Ryan developed one of the most sophisticated management structures in brokerage: networks of local resources delivering services around the world, with expertise to do business in specific locations, not just from headquarters.  He was also an early proponent of the power of intellectual capital as a strategic business tool and advantage. Today Aon operates with more than 500 offices in over 120 countries generating revenues in excess of $7 billion. www.InsuranceHallofFame.org

The ABA endorsement includes The Hartford’s bank-specific coverages designed to help banks protect their business against unexpected losses. The Hartford Financial Services Group, Inc., (NYSE: HIG) offers banks comprehensive coverages to address the unique insurance needs of banks, as well as standard lines coverages. The endorsement also recognizes the company’s loss control, risk management and multi-state claims services. www.thehartford.com www.aba.com

May 6, 2008 –– Community banks now have access to a full suite of insurance products from their independent agent representing either The Hartford Financial Services Group (NYSE: HIG) or Progressive (NYSE: PGR). The new alliance between two of the best known names in the insurance industry combines the strengths of both companies and allows banks and their agents the option of getting all of their business insurance from one source.

Progressive Casualty Insurance Company, the A+ rated underwriter for the ABA-sponsored insurance program, currently provides professional liability and bond products to more than 1,700 community banks. 

The Hartford, also an A+ rated carrier, offers banks industry-tailored property and casualty insurance that includes bank-specific coverages such as mortgage protection and foreclosed properties as well as standard-lines coverages like workers’ compensation, property and general liability.   www.banks.progressive.com www.thehartford.com

NEW YORK, May 6, 2008  — One of the most frequent questions the Insurance Information Institute (I.I.I.) receives from consumers each year concerns whether their insurance covers fallen trees and branches.

 “The answer is quite straightforward,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “If a tree hits a home or other insured structure such as a detached garage, standard homeowners insurance policies provide coverage for the damage the tree does to the structure and the contents within it. This includes trees felled by a windstorm, hail, weight of ice, snow or sleet.”

Furthermore, it does not matter whether or not a tree was actually growing on your property; if it lands on your home, you should file a claim with your insurance company. After a hurricane or windstorm trees, shrubs and branches can become projectiles capable of traveling significant distances. Insurance companies do not waste time trying to locate exactly where the tree originally lived.

 “In some situations where the felled tree was located on a neighbor’s property, the policyholder’s insurance company may try to collect from a neighbor’s insurance company in a process called subrogation. This sometimes occurs if the tree was in poor health or not properly maintained. If the insurer is successful, you may be reimbursed for the deductible,” says Salvatore.

If a tree hits an insured structure, there is also coverage for the cost of removing the tree, generally up to about $500 to $1,000, depending on the insurer and the type of policy purchased. If the fallen tree did not hit an insured structure, there is generally no coverage for debris removal; however, some insurance companies may pay for the cost of removing it if the felled tree blocks a driveway or a ramp designed to assist the handicapped.

Cars damaged or destroyed by falling trees are covered under the comprehensive portion of an auto insurance policy.

Standard home insurance policies also provide coverage for damage to trees and shrubs due to fire, lightning, explosion, theft, aircraft, vehicles not owned by the resident, vandalism and malicious mischief. Coverage for these disasters is generally limited to up to 5 percent of the amount of insurance on the structure of the house. Generally, most insurers will limit the coverage to about $500 for any one tree, shrub or plant. Trees and plants grown for business purposes require a separate business insurance policy, according to the I.I.I.

Additional insurance coverage for expensive landscaping is available from specialty insurers in the form of an endorsement to a homeowners policy.

For related video, go to Preventing Trees from Falling. Reporters who would like a DVC Pro or Beta hard copy of the b-roll footage, please contact: Susan Stolov at 301-728-1978 or SusanStolov@WashingtonIndependentProductions.com.  www.iii.org

A surprising 36% of Millennials (ages 25-29) and 34% of GenXers (ages 30-42) are giving serious thought to what it takes to prepare for retirement, Prudential’s fifth biennial study on The Financial Experience and Behaviors Among Women found. Retirement is also a top-of-mind consideration for 28% of Boomer women (ages 43-61) who participated in the study.

“The good news is that educational messages related to women’s financial security appear to be resonating,” says Christine Marcks, President of Prudential Retirement. “But we’ve learned over the course of eight years of research that this awareness does not always translate into action. Considering their longevity, it’s critical for women to learn about financial risks they may face and how to plan for a secure retirement.”

www.prudential.com

LONDON & NEW YORK--(BUSINESS WIRE)--Deutsche Bank today announced the results of the sixth annual Alternative Investment Survey, which was conducted during March 2008 by the Bank’s Hedge Fund Capital Group. Over 1000 respondents from 500 institutions responded to this year’s survey, including banks, corporations, insurance companies, consultants, family offices, high net worth individuals, wealth management companies, funds of funds, pensions, endowments and foundations.

“Hedge fund investors’ prediction that the Middle East and North Africa will be the top performing region in 2008 indicates a clear redistribution of capital towards emerging markets,” said Sean Capstick, London-based Co-Head of the Hedge Fund Capital Group. “The survey also shows that the number of early stage investors has fallen by 25 percent in the past year, making 2008 a more challenging environment for startup funds.”

“Hedge fund investors are cautiously poised, as shown by their increased focus on risk management and plans to allocate to strategies which are not sensitive to equity market risk,” said Maarten Nederlof, New York-based Co-Head of the Hedge Fund Capital Group. “We also found that despite their overall bearish outlook on the economy, investors predicted more than $200 billion will flow into the industry.”

Highlights of Deutsche Bank’s Sixth Annual Alternative Investment Survey

* 80% of investors are bearish; however, investors are more optimistic for next year: 40% expect the global economy to pick up in 2009.

* For the first year since the survey has been conducted, investors have added Risk Management as a major manager selection criteria, in addition to Investment Performance, Investment Philosophy and Manager’s Pedigree.

* Cash levels are high as investors take a “wait and see” approach to hedge fund investing. However, 53% of investors holding cash now plan to eliminate their cash holdings over the next 12 months, suggesting a renewed focus to make allocations to hedge funds.

* The majority of investors surveyed plan to increase their allocations to emerging markets, with the Middle East as the predicted top performer amongst all regions.

* Hedge fund investors predict that Macro, Distressed, and Equity Volatility will be the top performing strategies for 2008.

* 70% of hedge fund investors do not currently use or apply leverage to their portfolios; 30% are actively leveraging their portfolios, including 6% through structured products.

www.db.com

A recent Fitch analysis confirms that there is an indirect, inverse relationship between wholesale vehicle values and annualized net loss (ANL) rates in auto ABS. As wholesale vehicle values increase, auto ABS net loss rates decline, and vice-versa. In short, the healthier the wholesale vehicle markets, the lower loss severity in auto ABS as vehicle recovery rates increase, and thus loss levels ultimately decrease.

Despite these recent market developments, prime auto ABS rating performance has remained stable through the first quarter of 2008, even in light of weakening asset performance. In the subprime sector, outside of rating actions relating to the health of insurance guarantors' insurer financial strength, rating performance has remained relatively stable in 2008 despite declining asset performance.

Fitch will continue to closely monitoring these ongoing trends and their affect on the performance on auto ABS. 'U.S. Auto ABS Loss Rates & Wholesale Vehicle Values - Traveling in 'Inverse' Lanes' is available on the Fitch Ratings web site at www.fitchratings.com under the following headers: Structured Finance then ABS then Special Reports

Berkley Asset Protection Underwriters will underwrite on behalf of two W. R. Berkley Corporation member companies, StarNet Insurance Company on an admitted basis and Gemini Insurance Company on a surplus lines basis. Both companies are rated A+ (Superior) by A.M. Best Company, Inc. (Financial Size Category XV).

CHICAGO--(BUSINESS WIRE)--Last year, CNA announced enhancements to its Middle Market Builders Risk form. Specially designed for building owners, property developers, builders, contractors or design-build firms that supervise construction projects, the form is first-party coverage. In addition, the form provides time-related coverages such as business income, contractual penalties and soft costs. Originally available in 29 states, the form is now available nationwide. www.cna.com

An added benefit of this new program is a paperless submission process that allows agents to utilize electronic, fillable applications. All submission requirements and applications are available online at http://www.BISYSPC.com.