|
 |
Tuesday
07/15/08
|
Your Insurance News "Strategic
Relationship"
|
|
|
|
|
|
|
Read online at
www.insurancebroadcasting.com.
Read daily by
over 450,000 insurance industry
subscribers.
Walt Podgurski, CLU, CES, Publisher & Editor
|
|
|
© Copyright Notice
- the information on this page is protected by the copyright
laws - all rights reserved.
 |
Voluntary
Products Worksite Marketing Payroll
Deduction
Receive this free white paper report on
over 60 of the leading providers of
voluntary employee benefit products and
services. |
|
|
To request this free report
via e-mail, please complete the form at:
www.workplacebenefits.org/whitepaper.htm.
|
|
|
|
|
Daily Quote:
I've learned....
That the best classroom in the world is at the feet of an elderly
person.
That when you're in love, it shows.
That just one person saying to me, 'You've made my day!' makes my day.
That having a child fall asleep in your arms is one of the most peaceful
feelings in the world.
That being kind is more important than being right.
That you should never say no to a gift from a child.
That I can always pray for someone when I don't have the strength to
help him in some other way.
That no matter how serious your life requires you to be, everyone needs
a friend to act goofy with.
That sometimes all a person needs is a hand to hold and a heart to
understand.
That simple walks with my father around the block on summer nights when
I was a child did wonders for me as an adult.
That life is like a roll of toilet paper. The closer it gets to the end,
the faster it goes.
That we should be glad God doesn't give us everything we ask for.
That money doesn't buy class.
That it's those small daily happenings that make life so spectacular.
That under everyone's hard shell is someone who wants to be appreciated
and loved.
That to ignore the facts does not change the facts.
That when you plan to get even with someone, you are only letting that
person continue to hurt you.
That love, not time, heals all wounds.
That the easiest way for me to grow as a person is to surround myself
with people smarter than I am.
That everyone you meet deserves to be greeted with a smile.
That no one is perfect until you fall in love with them.
That life is tough, but I'm tougher.
That opportunities are never lost; someone will take the ones you miss.
That when you harbor bitterness, happiness will dock elsewhere.
That I wish I could have told my Mom that I love her one more time
before she passed away.
That one should keep his words both soft and tender, because tomorrow he
may have to eat them.
That a smile is an inexpensive way to improve your looks.
That when your newly born grandchild holds your little finger in his
little fist, that you're hooked for life.
That everyone wants to live on top of the mountain, but all the
happiness and growth occurs while you're climbing it.
That the less time I have to work with, the more things I get done.
Source
Unknown |
|
M&A / ALLIANCES / EARNINGS
/ CAPITALIZATION |
|
|
 |
Purchasing
Power, an employee benefit that helps individuals buy
computers, electronics, and home appliances through the ease
of payroll deduction, is currently looking to fill the
following sales positions: |
|
|
National Sales
Director
Sales leader
needed with exceptional sales and people management skills to lead
the delivery of a minimum $20MM of annualized revenue through the
acquisition of new client revenue in the voluntary benefit and
insurance industries. This critical role will lead a
cross-functional sales team to achieve business results in a
fast-paced, results oriented environment. This position reports
directly to the VP of Sales & Marketing. Extensive B2B sales
experience with several years in a similar management-level role is
preferred. Voluntary benefit industry experience is a plus.
Estimated travel is 50-75%.
Broker Account
Manager
Experienced
account management professional needed with insurance/voluntary
benefit industry experience to be the main point of contact for our
insurance broker clients. This position requires exceptional
relationship building skills with the goal of initiating and
increasing account productivity by selling the Purchasing Power
program into the brokers’ employer clients. Estimated travel is
25-50%.
Regional Sales
Manager
Sales
professional with 8 -10 years of sales experience preferably within
the insurance/voluntary benefits industry. With a focus on
Purchasing Power’s target broker customer, the primary objective of
this role is to identify, attract and activate new broker
relationships. Estimated travel is 50-75%.
Sales Support
Administrator
Experience
professional with at least 3 years sales and/or sales administrative
experience to serve as a key stakeholder in managing and monitoring
sales rep activity. Individual will also be responsible for inside
sales, cold calling, sales lead follow up and lead qualification.
This position requires solid presentation, communication and
negotiating skills and a high level of enthusiasm and
professionalism.
If you’re interested in joining the Purchasing Power
team, submit resumes to
resumes@purchasingpower.com.
|
|
1.
Willis Group Calls on
Insurance Industry to End Practice of Contingent Agreements with
Insurance Carriers |
|
Proposes
Standards for Making Compensation Agreements for all Brokers
Transparent
New York, NY,
July 14, 2008 – Don Bailey, CEO of Willis North America, a
subsidiary of Willis Group Holdings (NYSE: WSH), the global
insurance broker, today appeared in front of the New York
Superintendent of Insurance and Attorney General at a Public
Hearing in Buffalo, New York, to address the subject of
insurance producer compensation standards and disclosure. Mr.
Bailey called for the insurance industry to end contingent
compensation agreements. A proposed regulation pertaining to
this issue is currently under consideration by the New York
State Insurance Department.
“Establishing a
standard set of principals for insurance broker compensation and
disclosure is critical to improving trust and transparency in
the industry,” said Mr. Bailey. “Clients of all sizes and
complexities need to be absolutely certain that their brokers
keep their interests paramount; otherwise, they will question
the integrity of the services we provide. For us, that’s not
acceptable. We believe client trust is non-negotiable.”
In October
2004, Willis became the first major insurance broker to
voluntarily commit to ending the practice of accepting
contingent commissions. Over the last several years, Willis
Chairman and CEO Joe Plumeri has been an outspoken public
advocate of applying a consistent standard for compensation
practices and transparency in disclosure in order to strengthen
client confidence and faith in the insurance industry.
In calling for
an industry-wide end to contingent compensation agreements, Mr.
Bailey said, “We did away with contingent payments because we
believe that brokers should be paid for the quality of service
they provide to clients, not for the volume of business guided
to a carrier and not for the profitability of a client to a
carrier. In this spirit, we are proposing that all broker
contingent compensation agreements be abolished throughout the
insurance industry; that all broker compensation be made
transparent; and, that a level playing field be created where
all brokers abide by the same rules.”
Mr. Bailey will
be participating in a series of hearings held throughout the
state in July. www.willis.com.
Editor’s Note:
A copy of the full text of Mr. Bailey’s address may be found
attached and below, and can be obtained from the “Media Room” on
willis.com at
www.willis.com/Media_Room.
|
Return To
Top - -
Print Article / Read Entire Article
|
2.
Oral Testimony for July
14 Public Hearing - Don Bailey, CEO, Willis North America |
|
Good morning.
I’m pleased to be here on behalf of my colleagues at Willis Group to
discuss our views on issues surrounding insurance producer compensation.
This is an issue that we believe is critical to improving trust and
transparency in our industry. In October 2004, Willis became the first
major insurance broker to voluntarily commit to end the practice of
accepting contingent commissions. No one forced us to do this; we did
it because we thought it was the right thing to do for our clients.
Clients need to be absolutely certain that their brokers keep their
interests paramount; otherwise, they will question the integrity of the
services we provide. For us, that’s not acceptable. We believe client
trust is non-negotiable. We don’t want there to be even an appearance
of a conflict of interest that might undermine that trust.
That’s one reason why, back in 2004, we codified how we do business with
clients in our Client Bill of Rights – a ten-point document emphasizing
our commitment to client service, transparency and best practices. It’s
the framework for what clients can and should expect from us to make
sure we always have our eyes squarely on their best interests. And that
focus has served us and our clients very well in recent years.
In
this spirit, we have been strong proponents of full transparency in
compensation practices. Our Chairman and CEO, Joe Plumeri, has been an
outspoken public advocate for the importance of transparency in
strengthening client confidence and faith in our industry.
As
important as being transparent is, it still isn’t enough. We do not
believe that it is enough to just reveal a practice that you know is not
in your clients’ best interest. That’s not honoring the spirit of
making your clients’ interests paramount. We believe compensation
should be paid fairly and in a way that is appropriate to the
transaction. One of the reasons we did away with contingent payments is
because we believe brokers should be paid not for the volume or profit
of business guided towards a carrier, but rather for the quality of
their service to clients, such as securing the best possible coverage
and getting claims paid promptly.
For example, Broker A takes contingents based on the profitability of
that client for the carrier. Will Broker A be truly motivated to fight
for payment of a claim when appropriate, as opposed to Broker B who does
not accept payment from the carrier based on profitability? We think
the client is best served by Broker B, whose only interest is having
their client's claim paid. After all, isn't that why we buy insurance
to begin with?
We
also believe there should be a level playing field in our industry.
That doesn’t exist on the brokerage industry landscape today. Because
many brokers continue to accept contingent or supplemental payments from
insurers, we and other brokers that don’t accept contingents are
operating at a competitive disadvantage. We are constrained in our
ability to compete on price with those who still accept contingents.
It’s a simple fact that brokers who accept contingent commissions are
essentially getting a subsidy from insurers on the prices they offer
clients. For example, if Broker A takes contingents for placing
business with a carrier, he can offer a lower price to his client and
seem more price competitive than Broker B who does not receive
additional income from a carrier because Broker B does not take
contingent commission.
We believe that former Attorney General Spitzer missed a great
opportunity to do the right thing when he not only stopped short of
banning all brokers from accepting contingents, but he allowed insurance
carriers to pay contingents to part of the market. This imbalance in
the playing field is further compounded by the annual compliance costs
borne only by Willis and the other major brokers subject to the current
scheme of regulation.
We are grateful to the New York State Attorney General and New York
State Department of Insurance for recently taking an important step to
level the playing field somewhat by amending our original agreement with
you to permit acquisitions of brokers who do accept contingents. This
allowed Willis to enter into an agreement to acquire HRH. And,
consistent with our amended agreement and our philosophy, we are
committed to phasing out HRH’s contingent commissions over three years.
We
think that clients across the industry would benefit from phasing out
contingent commissions over a reasonable period of time. Frankly, if
contingent commissions are bad for clients of large brokers because they
may pose a conflict of interest, how can they be good for the clients of
smaller brokers? The answer, of course, is they’re not good for anyone.
We see several potential avenues to achieving this goal in a
fair manner:
-- One option is to require any broker renewing a license with
the New York State Insurance Department to end the practice of accepting
contingent payments, say by 2010.
-- Another option would be to adopt a market solution. This is how
the FSA in the UK effectively addressed the issue of contract
certainty. In 2004, in lieu of mandating new rules, the FSA challenged
the insurance industry to achieve contract certainty within two years,
which all members of the industry joined together to successfully
accomplish. A similar challenge could be made to brokers to end
contingent commissions.
Again, we don’t think it’s necessary to abolish contingent commissions
overnight. They should be phased out over a reasonable period of time
that will allow brokers to adjust their business models. In the
interim, however, we believe transparency should be enhanced and
mandated to make sure that clients can clearly see how brokers are being
paid. This will alert them to potential conflicts of interest they may
not know exist. And, we believe mandating full pricing transparency for
all members of the industry – agents as well as brokers – would enhance
confidence in our entire industry.
Some brokers argue that clients don’t really care about contingents, so
why should regulators care? We believe clients do care. Some may be
more familiar with the impact of contingent commissions than others, but
all clients want their interests put first. All clients want full
transparency on pricing for products. We believe regulators should do
what’s best for all clients and the integrity of the industry overall.
To
summarize, Willis asks that:
1. All contingents are abolished.
2. All broker compensation is made transparent, and,
3. A level playing field is created where all brokers abide by the same
rules.
Fundamentally, we believe that this is a great opportunity for New York
State regulators to set the stage for what the insurance brokerage
industry can become, transforming how we operate in a way that elevates
our clients interests, advances openness and improves service.
Thank you. |
Return To
Top - -
Print Article / Read Entire Article
|
3.
Obama Proposes Small
Business Tax Credits For Health |
|
SAN DIEGO (Reuters) - Democratic White House hopeful Barack Obama
unveiled a proposal on Sunday to give $6 billion a year in tax credits
to small businesses that provide health insurance plans.
In
a speech to Latino voters of the National Council of La Raza in San
Diego, Obama gave credit for the idea to Sen. Hillary Clinton, whom he
defeated in a hard-fought primary for the Democratic nomination for
November's election.
"Today, I'm announcing my plan to provide real relief for small business
owners crushed by rising costs, an idea by the way that was championed
by my friend Hillary Clinton, who's been leading the way in our battle
to insure every American," Obama said.
A
statement detailing the proposal said small businesses create, on
average, more than 2/3 of net new jobs each year, but they pay on
average 18 percent more for health premiums than their larger
counterparts.
"They face unique challenges in providing health care to their
employees, including higher administrative costs, lower bargaining
power, greater price volatility and fewer pooling options," the
statement said.
Under the plan, small businesses would get a refundable credit of up to
50 percent on premiums paid on behalf of their employees. To be
eligible, small businesses will have to offer a quality health plan to
all of their employees and cover a meaningful share of the cost of
employee health premiums.
Obama's economic policy director Jason Furman said treasury officials
would work out the exact details of what size firms would qualify and at
what stage the credit would be phased out for medium-sized firms.
He
said the cost would be covered by making so-called "biologic" drugs
easier to bring to market in generic form, which would increase market
competition and lower federal spending on prescription drugs which
account for a growing share of the overall drug market.
It
could also be covered by dedicating a portion of savings from reducing
disproportionate share hospital (DSH) payments as already outlined in
his healthcare proposals, the campaign said.
(To read more about the U.S. political campaign, visit Reuters "Tales
from the Trail: 2008" online at blogs.reuters.com/trail08/)
©
Thomson Reuters 2008 All rights reserved |
Return To
Top - -
Print Article / Read Entire Article
|
4.
IndyMac Seized As
Financial Troubles Spread |
|
By
John Poirier and Rachelle Younglai
WASHINGTON (Reuters) - U.S. banking regulators swooped in to seize
mortgage lender IndyMac Bancorp Inc on Friday after withdrawals by
panicked depositors led to the third-largest banking failure in U.S.
history.
California-based IndyMac, which specialized in a type of mortgage that
often required minimal documents from borrowers, became the fifth U.S.
bank to fail this year as a housing bust and credit crunch strain
financial institutions.
The federal takeover of IndyMac capped a tumultuous day for U.S. markets
that saw stocks slide on a surging oil price and renewed fears about the
stability of the top two home financing providers, Fannie Mae and
Freddie Mac.
IndyMac will reopen fully on Monday as IndyMac Federal Bank under
Federal Deposit Insurance Corp supervision, but tensions ran high as
customers at a branch at its Los Angeles-area headquarters read a notice
in the window saying it was closed.
At
another branch down the road, a man who said he had more than $200,000
in an account -- twice what is normally FDIC guaranteed -- argued with a
security guard who was closing up.
The FDIC, which will seek a buyer for IndyMac, estimated the cost of the
bank's failure to its $53 billion insurance fund at between $4 billion
and $8 billion.
"IndyMac is a company that was pretty much 100 percent invested in
mortgage assets, and we're in a bad mortgage market, and it had no
capital. It's not complicated," said Adam Compton, co-head of global
financial stock research at RCM in San Francisco, which manages about
$150 billion.
IndyMac joins top bank failures headed by the 1984 collapse of
Continental Illinois National Bank & Trust Co.
The Office of Thrift Supervision (OTS) insisted IndyMac's failure was
the second-largest bank failure based on FDIC figures. But the FDIC said
its data showed it was third behind the collapse of First RepublicBank
Corp in 1988.
(Additional reporting by Karey Wutkowski in Washington, Dan Wilchins in
New York, and Jennifer Martinez, Fred Prouse, and Nichola Groom in Los
Angeles; Editing by Tim Dobbyn and Braden Reddall)
©
Thomson Reuters 2008 All rights reserved |
Return To
Top - -
Print Article / Read Entire Article
|
5.
FACTBOX: How Regulators
Take Over Failed Banks |
|
NEW YORK (Reuters) - Mortgage lender IndyMac Bancorp Inc was taken
over by the Federal Deposit Insurance Corp on Friday, becoming the
second-largest financial institution to be closed in U.S. history.
Banks are not able to file for bankruptcy protection as other
corporations may choose to do if they became insolvent.
Rather, the FDIC has special powers to oversee the liquidation of assets
from failed banks and thrifts and/or search for a buyer for that bank.
Congress first gave the FDIC receivership power in the 1930s, after
thousands of bank failures in the Great Depression highlighted the
difficulty in efficiently liquidating the assets of a failed bank and
returning deposits to customers.
The following explains how the receivership process works today:
*
When the FDIC is appointed as receiver, it first takes custody of the
bank's offices, records, loans and other assets.
*
The FDIC insures bank deposits up to its limit of $100,000. It also
notifies the bank's creditors and customers with uninsured deposits to
submit proof of their claims to the receiver.
*
The FDIC posts notices to explain the changes to the public. It changes
the locks and combinations on the banks, and notifies other banks and
interested parties about the closing.
*
The FDIC may liquidate the bank or transfer some or all of its assets to
another institution that wants to acquire it. It may also choose to form
a new institution, such as a "bridge bank," to take over the failed
institution's assets and liabilities.
*
The receiver is required, by law, to maximize the return on assets of
the failed bank or thrift and minimize any losses to the FDIC's
insurance funds.
*
The FDIC does not need approval from any other agency, court, or party
with contractual rights to transfer the failed bank's assets.
*
The receiver can choose which claims to allow or disallow, and may also
reject burdensome contracts. It can request litigation against the
failed bank be put on hold for up to 90 days.
*
The law prioritizes the order in which those with claims on the failed
bank are paid. The receiver's administrative expenses are given first
priority, followed by customer deposits, other general and senior
liabilities of the bank, other subordinated obligations and lastly,
shareholder claims.
Source: FDIC
(Reporting by Emily Chasan; Editing by Braden Reddall)
©
Thomson Reuters 2008 All rights reserved |
Return To
Top - -
Print Article / Read Entire Article
|
6.
More Banks May Fail
After IndyMac: Analysts |
|
Sun Jul 13, 2008 10:31pm EDT
By
Jonathan Stempel - Analysis
NEW YORK (Reuters) - More U.S. banks may fail after the collapse of
mortgage lender IndyMac Bancorp Inc, straining a financial system
seeking stability after years of lending excesses.
More than 300 banks could fail in the next three years, said RBC Capital
Markets analyst Gerard Cassidy, who had in February estimated no more
than 150.
Banks face pressure as credit losses once concentrated in subprime
mortgages spread to other home loans and debt once-thought safe. This
has also led to investor worries about the stability of mortgage finance
companies Fannie Mae and Freddie Mac; IndyMac is not related to either.
While analysts decline to speculate about which banks might fail,
several smaller lenders and even larger ones appear to have elevated
levels of soured loans relative to their sizes.
"You have to look at companies with the greatest exposure to the
highest-risk assets, which include construction loans and exotic
mortgages," Cassidy said. "The final nail in the coffin for any
depository institution would be a funding crisis where it is unable to
gather deposits at reasonable cost, or wholesale funding markets are cut
off."
The Federal Deposit Insurance Corp (FDIC) seized IndyMac on Friday after
a bank run in which panicked customers withdrew more than $1.3 billion
of deposits in 11 business days.
This followed comments on June 26 by U.S. Sen. Charles Schumer
questioning the Pasadena, California-based thrift's survival. Some
withdrawals also followed IndyMac's July 7 decision to fire half its
work force and halt most mortgage lending.
On
Sunday, the head of the FDIC moved to quell any concerns depositors
might have following the seizure of IndyMac.
"All bank depositors should understand that their insured deposits are
safe," Chairman Sheila Bair said. "The chance that your own bank will be
taken over by the FDIC is extremely remote. And if that does happen, you
will continue to have virtually uninterrupted access to your insured
deposits.
"No bank depositor has ever lost a penny of insured deposits," she
added. "The overwhelming majority of banks in this country are safe and
sound."
IndyMac once specialized in Alt-A mortgages, which did not require
borrowers to document income or assets. It was founded in 1985 by Angelo
Mozilo and David Loeb, who also founded Countrywide Financial Corp, once
the largest mortgage lender.
Bank of America Corp bought Countrywide on July 1.
As
of March 31, the FDIC had put 90 banking institutions with $26.3 billion
of assets on its "problem list." This excluded IndyMac, which alone had
about $32 billion of assets, and close to $19 billion of deposits.
Well over 2,000 banking companies failed in the 1980s and early 1990s.
Cassidy said the government may need to set up a liquidator similar to
Resolution Trust Corp, created for the earlier savings and loan crisis.
The largest U.S. bank failure is the May 1984 collapse of Chicago's
Continental Illinois National Bank & Trust Co. IndyMac was roughly the
same size as American Savings & Loan Association of Stockton,
California, a September 1988 failure.
Cassidy called the probability of failure "very high" if a bank's
nonperforming assets exceed the sum of tangible equity plus reserves for
loan losses.
In
a report on July 13, Richard Bove, a bank analyst at Ladenburg Thalmann
& Co, said a "danger zone" is where nonperforming assets, including
loans at least 90 days past due, exceeded 40 percent of common equity
plus reserves.
"The system is not anywhere near the danger that existed in the late
1980s and early 1990s despite all of the whining by public officials,"
Bove wrote. "Perhaps, the second quarter numbers will prove them right."
Citing FDIC data as of March 31, Bove said that IndyMac had been at the
greatest risk among more than 100 of the largest U.S. lenders, with a
146.2 percent ratio.
BankUnited Financial Corp of Coral Gables, Florida, was among lenders
high on Bove's list.
"We're surprised to be near the top of that list," Bert Lopez,
BankUnited's chief financial officer, said in an interview. "Our
underwriting standards have been very conservative, we have insured a
substantial portion of our loan portfolio, and our losses remain low on
an overall basis."
He
declined further comment, citing a pending $400 million stock offering.
BankUnited shares closed Friday at 77 cents. Other banks high on the
list did not immediately return requests for comment.
The FDIC has said it will reopen IndyMac on Monday as IndyMac Federal
Bank, and then try to sell the company as a whole or in pieces.
Regulators expect the takeover to cost the FDIC $4 billion to $8
billion. The agency insurance fund has about $52.8 billion.
Among IndyMac's assets are its deposits, 33 southern California
branches, its Financial Freedom reverse mortgage unit, and a
fast-deteriorating loan book.
Cassidy said thrift deposits tend to be less valuable than deposits at
commercial banks because they yield more, and customers might be quick
to leave once those rates disappear.
"For the right price, those branches and deposits are valuable, probably
to someone with a footprint in southern California," he said. "Would a
Wells Fargo or a U.S. Bancorp, which are strong and healthy and would
want to expand their franchise, look at it? I think so."
Neither bank immediately returned requests for comment.
(Additional reporting by Dan Wilchins; Editing by Martin Golan)
© Thomson Reuters 2008 All rights reserved |
Return To
Top - -
Print Article / Read Entire Article
|
7.
BestWeek: New A.M. Best
Special Report Finds Few Companies Excel at Managing Through Market
Cycles |
|
OLDWICK, N.J.--(BUSINESS WIRE)--It is difficult for property/casualty
companies to surpass the performance of their peers on a consistent,
long-term basis, according to a new A.M. Best Co. special report
highlighted in BestWeek U.S./Canada.
Only 14% of the total study population outperformed their industry
composite medians over the most recent soft and hard market cycles.
Captured were the peak years of the prior soft cycle (1997-2001), the
subsequent hard market years (2002-2004) and the early years (2005-2006)
of the current soft market cycle. Underwriting performance, as measured
by the statutory calendar-year combined ratio, was used as the basis for
grouping the companies into better performing cycle managers (top group)
and poorer performing cycle managers (bottom group).
www.ambest.com |
Return To
Top - -
Print Article / Read Entire Article
|
8.
Conning Research:
Property-Casualty Forecast Through 2010 Released - Industry Financial
Condition Strong Despite Price Deterioration |
|
HARTFORD, Conn., July 14 /PRNewswire/ -- The financial condition of the
property-casualty industry is strong; and, it should be able to
withstand the current price deterioration, according to a new
Property-Casualty Industry Forecast by Conning Research and Consulting.
"The outlook for the next three years -- through 2010 -- is generally
soft for the property-casualty industry as a whole. We project continued
deterioration in underwriting margins and implied return on equity,"
said Clint Harris, analyst at Conning Research & Consulting. "However,
the largest year-over-year increase in combined ratio is in 2008, and
while this reflects a return to normal catastrophe losses, much of this
deterioration is self-inflicted, as premium prices and premium rate
adequacy continue to fall."
The Conning Research study, "Property-Casualty Forecast & Analysis"
identifies the key drivers of the industry and forecasts industry growth
and performance for 2007-2010.
"Looking beyond this year, our forecast contains a somewhat more
optimistic view of 2009 and 2010 because we anticipate a modest rebound
in the economy and also a moderating competitive environment. We project
a return to net premium rate increases beginning in some lines as early
as 2009," said Stephan Christiansen, director of research at Conning.
"In fact, we are already beginning to observe some insurers taking
corrective actions in their markets because of poor results."
Conning's "Property-Casualty Forecast & Analysis" is available for
purchase from Conning Research & Consulting by calling (888) 707-1177 or
by visiting the company's web site at
http://www.conningresearch.com.
|
Return To
Top - -
Print Article / Read Entire Article
|
9.
Lehman Mulls Strategic
Alliance, Other Options: Report |
|
NEW YORK (Reuters) - Lehman Brothers' (LEH.N: ) executives, seeking to
shore up the brokerage's share price, is mulling options including a
strategic alliance with a partner, the Wall Street Journal reported on
Monday.
The investment bank is also considering a form of share buyback or an
asset sale, the newspaper said, citing people familiar with the matter.
Over the weekend, Lehman executives participated in conference calls
with senior members of the U.S. Federal Reserve and the Securities and
Exchange Commission on the situation facing the firm.
Lehman shares plunged to nine-year lows on Friday amid concern that the
mortgage market's woes would hurt its fixed income business. The
investment bank has lost about a third of its market value over the past
two weeks and has been the focus of some rumors that later turned out to
be false.
SEC staff members are expected to visit the firm's midtown Manhattan
offices on Monday, a person familiar with the matter told the WSJ.
Lehman Brothers spokeswoman Kerrie Cohen declined to comment.
(Editing by Derek Caney)
©
Thomson Reuters 2008 All rights reserved |
Return To
Top - -
Print Article / Read Entire Article
|
11.
BANK INSURANCE NEWS IN BRIEF - JULY 14, 2008
|
TODAY'S BANK INSURANCE IN BRIEF" is provided each week courtesy of
Michael White Associates @www.bankinsurance.com. To read these stories
, visit
http://www.bankinsurance.com/editorial/news/default.htm
BANK HOLDING COMPANY SALES OF SECURITIES BOOSTS FEE INCOME 73% OVER
4Q2007
WELLS FARGO ACQUIRES AMERICAN MED-SCAN
OLDER AMERICANS’ APPLICATIONS LIFE INSURANCE CONTINUE TO CLIMB
SEC INVESTIGATION FINDS FLAWS IN CREDIT RATING AGENCIES’ PRACTICES
SEC AND FED AGREE TO SHARE INFO ON BANK HOLDING COMPANIES AND
CONSOLIDATED SUPERVISED ENTITIES
THE END FOR INSURANCE POLICY COUNTERSIGNATURE LAWS IN THE U.S.
ZURICH FINANCIAL TO TEAM UP WITH SPAIN’S FOURTH LARGEST BANK
NEW YORK TO HOLD HEARINGS ON PRODUCER COMPENSATION |
Return To
Top
|
12.
INSURANCE NEWSLINK
Articles |
|
Recent articles added to INSURANCE NEWSLINK, the worldwide, strategic
concise intelligence database of over 30,000 articles including
interviews, uniquely analysed by company, market, research, regulatory,
and IT topics.
Please click here for a content overview and a 15-day
free review.
THE TIME EFFECTIVE WAY TO STAY AHEAD
Guidewire selected by the PMA Insurance Group
UK
Pensions buyout report published
Industry and UK government in flood agreement
Report analyses UK customer online behavoiur when buying car insurance
Equitable Life set to keep in the headlines
US
federal option debate flares up again
FINEOS seals deal in Australia
Jacada selected by Nationwide Insurance again
ABI comments on pleural plaques report
Japanese general insurers overcharging
SCOR meets works councils opposition on proposed staff cuts
North American individual life applications flat
CCFE to list IFEX Florida and US Gulf Coast Tropical Wind Event Linked
Futures
Equity makes second acquisition in a week
Lippe promoted at Swiss Re
Aviva sells offshore operations to WNS
Progressive net income down
Groupama in line to buy stake in Tunisian insurer
Zurich withdraws from RBS insurance race
Indian rural opportunity for insurers
Zurich moves for Spanish stake
Max New York Life targets Indian rural market with IOC distribution deal
MetLife India launches advanced voice response service
Bupa and Max India in jv
Taiwan Insurance Report Q2 2008
|
Return To
Top - -
Print Article / Read Entire Article
|
13.
Ernst & Young Study
Finds Most Middle Class Retirees Will Outlive Retirement Savings |
|
WASHINGTON, July 14, 2008 /PRNewswire-USNewswire via COMTEX/ -- Future
Retirees without Guaranteed Income Will Need to Significantly Reduce
Standard of Living
Almost three out of five new middle-class retirees will outlive their
financial assets if they attempt to maintain their pre-retirement
standard of living, according to a new study conducted by Ernst & Young
LLP on behalf of Americans for Secure Retirement.
The study also finds that middle-income Americans entering retirement
now will have to reduce their standard of living by an average of 24
percent to minimize the likelihood of outliving their financial assets.
Those Americans seven years out from retirement are even less prepared
and the study estimates that they will have to reduce their standard of
living by even more, an average of 37 percent. These reductions will be
necessary even when assuming that retirees can maintain the same
standard of living with income equal to 59 to 71 percent of their
pre-retirement wages.
"Many Americans envision a retirement where their lifestyle continues
much as before," said Tom Neubig of Ernst & Young. "Our work shows that
this is not a realistic expectation and that, with the current state of
savings and potentially very long life expectancies, many retirees will
have to cut back far more on expenditures than they had ever expected."
The study finds that retirees are much better prepared to have a
financially secure retirement if they have a guaranteed source of
retirement income beyond Social Security, such as an annuity or defined
benefit plan. For example, married couples who have a guaranteed source
of retirement other than Social Security income making $75,000 at
retirement have a 31 percent chance of outliving their financial assets
if they retain their pre-retirement standard of living. Those with
Social Security as their only guaranteed income have a 90 percent chance
of outliving their financial assets during retirement.
"As a guaranteed source of retirement income, life annuities relieve the
risks and burdens of managing a nest egg and can maximize savings' value
over the course of an individual's retirement years," said Joe Reali,
Chairman of the Americans for Secure Retirement coalition.
"Life annuities are the only vehicle besides pensions and Social
Security that provide a steady stream of income for life - a 'paycheck
for life.'"
The report was conducted by Ernst & Young on behalf of Americans for
Secure Retirement, a coalition of over 50 member and affiliate
organizations representing women's, small business, agriculture,
Hispanic and African American groups as well as the life insurance
industry. The coalition is committed to raising awareness about
retirement challenges facing Americans and advocating for policies that
help Americans secure a steady stream of income for their retirement.
www.paycheckforlife.org |
Return To
Top - -
Print Article / Read Entire Article
|
14.
Wells Fargo Introduces
the Wells Fargo Global Broker Network |
|
CHICAGO, Jul 14, 2008 (BUSINESS WIRE) -- Wells Fargo Insurance Services,
a subsidiary of Wells Fargo & Company (WFC) , said it has become the
exclusive manager of the HLA Global Network, now known as the Wells
Fargo Global Broker Network. The Network has 10,000 insurance and risk
management professionals serving customers from 330 offices across 70
countries, and provides insurance brokerage services in 115 countries.
This name change is designed to strengthen the network's global identity
under the Wells Fargo brand and help expand the delivery of
international insurance and risk management services and solutions to
Wells Fargo Insurance Services customers around the world. www.wellsfargo.com/wfis |
Return To
Top - -
Print Article / Read Entire Article
|
15.
AIG Landmark to Offer
Complete Insurance Solutions for Agribusiness Sector |
|
NEW YORK--(BUSINESS WIRE)--AIG Landmark, a unit of AIG Commercial
Insurance, today announced it will begin offering complete, multi-line
insurance solutions to the agribusiness industry segment, including
grower/packer/shippers, processors, handling and storage operations, and
suppliers and vendors of agribusiness-related products and services.
AIG Landmark will offer agribusinesses access to a wide range of
coverage solutions, including general liability, umbrella, property,
inland marine, auto liability, auto physical damage, and workers’
compensation.
“Our goal is to provide a multi-line approach and a complete product
offering to agribusiness clients,” said Steve England, President, AIG
Landmark. “Tapping the breadth of AIG Commercial Insurance’s product
portfolio, AIG Landmark offers a convenient option for brokers and
customers to address the complex risks faced by agricultural related
businesses today..”
For more information, please contact Gary Wilburn at 916-283-2421 or at
Gary.Wilburn@AIG.com.
|
Return To
Top - -
Print Article / Read Entire Article
|
16.
New York Life Invites
Consumers to Participate in 2008 Advertising Campaign |
|
Welcomes Consumers to Create Ads Using New York Life’s Blue Box Logo
$100 Donation to Charity of Choice Awarded to Creators of Selected Ads,
Which Will Be Posted On New York Life’s Web site
NEW YORK--(BUSINESS WIRE)--As part of its ongoing 2008 Selfless Gift
advertising campaign, New York Life Insurance Company today announced
the Blue Box Challenge,
www.newyorklife.com/blueboxchallenge, an
online contest inviting visitors to create advertisements using New York
Life’s blue box logos. Creators of 10 selected ads will receive a $100
donation to the charity of their choice and the ad will be featured
prominently on New York Life’s Web site. |
Return To
Top - -
Print Article / Read Entire Article
|
17.
Assurant Employee
Benefits assists victims of Midwest flooding |
|
KANSAS CITY, Mo. (July 11, 2008) – In response to the devastating
flooding that affected thousands of Midwesterners during June, Assurant
Employee Benefits has made a financial contribution to the Central U.S.
Flood & Tornado Relief Fund established by the American Red Cross. The
company has also relaxed certain administrative requirements for
customers in accordance with the state guidelines of Illinois, Indiana,
Iowa and Missouri, and is sending letters of concern to brokers and
policyholders located within the 184 disaster areas in these four
states.
“Assurant Employee Benefits extends its deepest concern to everyone
impacted by the flooding that has devastated so many locations in the
Midwest,” said John Roberts, interim president and CEO at Assurant
Employee Benefits. “We are taking every action possible to make the
administration of their employee benefits as easy as possible for our
customers as they deal with the affects of the recent floods.”
Senior executives of Assurant Employee Benefits reached out to a broker
in downtown Cedar Rapids, Iowa whose business was directly impacted by
the flooding. The agency was left without power and with only two
operable phone lines, but its office space on the 11th floor of a
flooded building escaped damage.
www.assurant.com |
Return To
Top - -
Print Article / Read Entire Article
|
18.
Update On The
California Wildfires |
|
BOSTON, July, 11, 2008 – According to catastrophe risk modeling
firm AIR Worldwide, California is in the midst of battling hundreds of
three-week old wildfires that are exhausting state firefighting
resources. Though crews have made some progress containing almost 1,500
of the blazes that ignited since June 20th, 322 wildfires still burn.
The fires have destroyed 100 homes and 117 other structures, and
consumed more than 725,000 acres.[1] Nearly 14,000 homes and 3,000 other
structures remain threatened in California.
High winds, a sudden drop in humidity and triple-digit, record-high
temperatures in California have hampered firefighting efforts. This
weather—expected to persist throughout the weekend—exacerbates already
dangerous conditions left over from California’s driest spring since
1894.
Two high-profile fires, the Gap Fire and the Basin Complex Fire, have
been significantly contained. “The Gap Fire (Los Padres National Forest)
expanded dramatically last week, growing from 200 acres to more than
2,400 overnight, and then spreading across 9,443 acres by Sunday,” said
Scott Stransky, Research Analyst at AIR Worldwide. “This week, however,
it has moved much slower—consuming only about 200 acres. The fire was
contained to 55% as of Thursday, up from 30% previously, and it
threatens just 251 homes now. On the coast, hundreds of people returned
to their homes after firefighters pushed back the nearly 100,000-acre
Basin Complex Fire threatening Big Sur. Though relatively large in terms
of acreage, the fire destroyed just 26 homes. It is currently contained
to 41%—up from 11% at the end of last week.” Attempts are being made to
asses damaged homes.
Winds were light last night, but they are expected to be quite gusty
today, and temperatures are expected to soar to record highs. These
conditions will spread burning embers and make firefighting difficult.
Throughout northern and central parts of California, highways and local
roads have been closed, and sections of six counties are under orders to
evacuate. The most threatening fire burns in Butte County, near the
Central Valley town of Paradise. On Tuesday, the blaze’s progress
prompted officials to evacuate 10,000 people. By the following day,
winds caused the fire to jump a fire line and destroy 50 homes; it
continues to threaten nearly 4,000 more. Residents still in the area
remain on evacuation alert. The fire—one of about 40 lightning-sparked
wildfires in the county—is 45% contained as of Thursday, but is expected
to spread due to high wind and high temperatures.
Meanwhile, in Washington State, high winds gusting up to 50 mph fanned a
wildfire that ignited Thursday in a wooded part of the Spokane Valley.
The fire forced 200 residents to evacuate, consumed 1,200 acres, burned
4 homes, and threatens dozens more. The fire remains out of control.
|
Return To
Top - -
Print Article / Read Entire Article
|
19.
New Report Estimates U.S. Organizations Lose 7 Percent of Revenues to
Fraud |
|
BOSTON--(BUSINESS WIRE)--U.S. organizations lose an estimated seven
percent of their annual revenues to fraud, according to a survey of
Certified Fraud Examiners who investigated cases between January 2006
and February 2008. The Association of Certified Fraud Examiners (ACFE)
published the results of the survey in its highly-anticipated 2008
Report to the Nation on Occupational Fraud & Abuse.
The benchmarking data is compiled from 959 cases of occupational fraud
that were investigated between January 2006 and February 2008. When
applied to the projected 2008 United States Gross National Product, the
seven percent figure translates to approximately $994 billion in fraud
losses.
The Report to the Nation is available for download online at the ACFE’s
web site: www.ACFE.com/RTTN. The
Report is in PDF format. |
Return To
Top - -
Print Article / Read Entire Article
20.
INSURANCE NEWSCAST "Pictures Of The Day"
 |
Regulators talk tough, but Fannie, Freddie still
a risk. U.S. mortgage firm Freddie Mac headquarters is pictured in
McLean, Virginia July 13, 2008. REUTERS/Larry Downing
Read Entire Story!!!
|
 |
ICC prosecutor seeks arrest of Sudan's Bashir.
President Omar Hassan al-Bashir greets his supporters during a protest
rally after reports that the International Criminal Court (ICC) may seek
the arrest of Sudan's president for alleged war crimes, in Khartoum July
13, 2008. REUTERS/Mohamed Nureldin
Read Entire Story!!!
|
 |
InBev buys Bud for $52 billion. Bud Light and
Budweiser beer is shown in a cooler at the Toluca Mart liquor store in
Los Angeles, California June 16, 2008. REUTERS/Fred Prouser
Read Entire Story!!!
|
 |
Britain's Prince Harry jokes with children at the
Lesotho Child Counselling Unit (LCCU) near Maseru July 9, 2008. The LCCU
provides a safe house for vulnerable and orphaned children in the
community and is being supported by Prince Harry's charity, Sentebale.
Picture taken July 9, 2008. REUTERS/Mike Hutchings (LESOTHO)
|
 |
France's President Nicolas Sarkozy (L) and his
wife Carla Bruni-Sarkozy arrive at the Elysee Palace after attending the
Bastille day parade, July 14, 2008. REUTERS/Philippe Wojazer (FRANCE)
|
 |
Angelina Jolie gives birth to boy and girl. Nice
Mayor Christian Estrosi (C) holds copies of the birth certificate of
U.S. actress Angelina Jolie's son, Knox Leon, as her doctor Michel
Sussmann (L) and hospital director Bernard Lecat look on in front of the
Nice Lenval Hospital, southern France, July 13, 2008. The girl named
Vivienne Marcheline, weighed 2.27 kg (5 lbs) and the boy named Knox
Leon, weighed 2.28 kg, according to Sussmann. REUTERS/Chris Serrano
Read Entire Story!!!
|
 |
Venezuelan Mendoza crowned Miss Universe. Dayana
Mendoza of Venezuela smiles after being crowned Miss Universe 2008
during the annual pageant held this year in central Vietnam's resort
city Nha Trang on July 14, 2008. REUTERS/Adrees Latif
Read Entire Story!!!
|
 |
Jason Miller wrestles a steer in the finals of
the Steer Wrestling event during the Calgary Stampede Rodeo in Calgary,
Alberta, July 13, 2008. REUTERS/Todd Korol
|
 |
A white lion cub yawns at a wildlife zoo in
Schloss-Holte Stukenbrock July 14, 2008. Both of the park's two rare
white lionesses gave birth simultaneously to seven cubs on June 30.
Three of the cubs are being hand fed after their mother rejected them.
REUTERS/Alex Grimm (GERMANY)
|
 |
A man jumps into the water pool of a hydraulic
power station in the outskirts of Minsk July 14, 2008. Unusually hot
summer has hit Belarus in recent days. REUTERS/Vladimir Nikolsky
(BELARUS)
|
|
|
