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Tuesday
07/22/08 |
Your Insurance News "Strategic
Relationship"
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Read online at
www.insurancebroadcasting.com.
Read daily by
over 450,000 insurance industry
subscribers.
Walt Podgurski, CLU, CES, Publisher & Editor
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We are Chipping Away at the
Limited Nature of Mini-Med Plans!
Telephone Medical Consultation from CallMD —
A new value-added benefit to all Foundation One plans
effective September 1st!
- CallMD provides a nationwide network of medical doctors
available for four free telephone consultations and, if
appropriate,
for the issuing of non-narcotic prescription drugs.*
- Members have access to doctors for routine medical needs
without having to take the time to go to a doctor’s office.
- Employers have found this to be a popular employee benefit,
and
a substantial advantage for the company. By enabling
employees
to connect to a doctor from home or work, absenteeism and
sick
leaves are reduced, and overall productivity improves.
- Service is available 24 hours a day, 7 days a week.
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Call us today for
more information: 877-712-4004, ext. 3
website: www.found1ins.com
email: info@found1ins.com
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Limited
Benefit Healthcare Solutions Since 1999 |
Foundation One Security is
underwritten by: American Fidelity Assurance Company,
Oklahoma City, OK.
Policy limitations and exclusions apply.
CallMD is not part of the fully insured benefits provided by
American Fidelity Assurance Company.
*Some states do not allow CallMD physicians to issue
prescriptions. |
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Daily Quote:
"The corporation
is the “master”, the employee is the “servant”. Because the corporation
owns the means of production without which the employee could not make a
living, the employee needs the corporation more than vice versa." - -
Peter Drucker |
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M&A / ALLIANCES / EARNINGS
/ CAPITALIZATION
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610-526-1366 -
-
www.theamericancollege.edu/MSM
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1.
Health Insurers Seek
Rebound After Brutal First Half |
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By Lewis
Krauskopf
NEW YORK
(Reuters) - Health insurers will need to show some signs of
stability when they report second-quarter earnings, beginning on
Tuesday, if they are to lure back investors to their beaten-down
stocks.
Overall, the
managed health-care group is expected to post a 4.2 percent drop
in second-quarter earnings compared with a year ago, according
to Lehman Brothers.
Of the larger
insurers, Lehman expects only Aetna Inc (AET.N: ) to post
double-digit earnings-per-share growth (12 percent), while it
projects WellPoint Inc (WLP.N: ) to post flat earnings and
UnitedHealth Group Inc (UNH.N: ) to report a 27 percent drop.
Since March,
five of the seven largest health insurers by market value have
slashed their full-year earnings expectations -- some more than
once. The warnings sparked investor fears about the sector and
led to massive sell-offs.
Pressure on the
group has come from Washington as well. Congress last week
overrode a veto by President George W. Bush and passed
legislation that will cut payments to health insurers involved
with Medicare, the federal health program for seniors that has
been a profitable business for insurers.
The Morgan
Stanley Healthcare Payor index has fallen some 43 percent this
year, sharply underperforming a 14 percent decline for the
broader S&P 500 index .SPX. Health insurers are the five worst
performers this year in the 52-company S&P Health Care Sector
index .
"It seems like
a lot of bad news, low expectations, political risk -- whatever
you want to call it -- is priced in at this point," said Maria
Mendelsberg, a principal at Cambiar Investors.
"If there's
just some sign of stabilization or the guidance looks OK, I
would think you'd get some sort of rally in the group just
because the valuations are so depressed," she said.
Indeed, as a
group, the six largest health insurers on average trade at a
lowly 7.4 times next year's earnings forecasts. Lehman's Josh
Raskin last week described the group's forward earnings
valuation as the lowest in its history.
So far,
companies have blamed their earnings disappointments on a
variety of issues: missteps in pricing their health plans for
employers, offering overly generous benefits under Medicare, and
enrollment declines stemming from heated competition and the
weakening U.S. economy.
UnitedHealth,
the largest U.S. health insurer by market value, kicks off the
reporting season on Tuesday.
However,
UnitedHealth earlier this month deflated some of the suspense
from its report, when it said it expected to post second-quarter
earnings far below analyst expectations and slashed its
full-year profit forecast. The company blamed tough competition
in its commercial health benefits business.
So investors
may be more attuned to Wednesday's report from WellPoint, the
largest U.S. health insurer by membership.
"All eyes will
probably be on WellPoint," Morningstar analyst Matthew Coffina
said.
WellPoint was
the first company to sharply reduce its 2008 profit expectations
in March. Since rival Coventry Health Care (CVH.N: ) cut its
outlook last month, WellPoint has yet to comment on its
forecast.
"We're
optimistic on WellPoint going into the second quarter," Coffina
said. "But certainly the industry downturn has affected them so
far, and it's certainly possible that they could guide down
again."
Coventry reports Friday, followed by Aetna and Cigna Corp (CI.N: )
next week, with Humana Inc (HUM.N: ) coming later.
While some of
the problems earlier in the year might have been related to
temporary issues, such as high medical costs from the flu,
continued problems might be an indication of more sustained
troubles, Coffina said.
But he added
that investors might be looking for a bottom with these stocks.
"I think there's probably a few value investors that are
starting to lick their lips," Coffina said.
Not everyone
says now is necessarily the time to jump in.
Stifel Nicolaus
analyst Thomas Carroll said in a research report that although a
longer-term buying chance is at hand, investors probably do not
need to own the stocks now.
"Between now
and (the first quarter of 2009), discussion of immediate
operational and macro policy issues should be vetted," Carroll
said in his report. "This, in our opinion, will keep valuations
depressed relative to prior levels.
"Longer term
value investors should be rewarded with patience," Carroll said.
"But the next few quarters may continue to pressure the
managed-care stocks."
(Editing by
Maureen Bavdek)
© Thomson
Reuters 2008 All rights reserved |
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2.
A.M. Best Special
Report: Wildfire Losses Set to Increase Industry’s Catastrophe Woes |
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OLDWICK, N.J.--(BUSINESS WIRE)--After nearly $2 billion in claims from
the Southern California wildfires in 2007, the insurance industry faces
the prospect of another rough wildfire season and escalating losses in
the years to come. Across the nation, the past two wildfire seasons have
been the most severe on record and larger fires are more frequent.
*
Annual wildfire catastrophe losses have averaged more than $1.0 billion
this decade, after adjusting for inflation, based on figures from ISO’s
Property Claim Services unit.
*
Previous wildfire catastrophes have yet to result in specific rating
actions. However, A.M. Best does foresee instances where more prevalent
wildfire losses in tandem with other catastrophe losses could pressure
insurers’ balance sheets.
*
Major carriers have been able to reduce claims costs because of a change
in policy language introduced in the mid-1990s from guaranteed
replacement cost to extended replacement cost coverage. As a result,
more homeowners have found that total loss claims payments have not kept
pace with rebuilding costs, leading to complaints and lawsuits.
*
Wildfire events do not always meet the $25 million loss threshold to be
declared a catastrophe. Yet some insurers’ costs are rising from
expenses to track and settle claims, litigation costs and from adjusted
living expenses related to mandatory evacuation orders.
*
Because of warmer temperatures in the western United States, the fire
season may be up to two months longer, some wildfire experts say.
*
More insurers are declining to underwrite homes located in canyon areas
or on hillsides exposed to dry vegetation and trees.
BestWeek subscribers can download a PDF copy of all full special reports
at no additional cost or a combination of the PDF copies plus all
related spreadsheet files of the report data at no additional cost from
our Web site at www.bestweek.com.
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3.
U.S. Eyes Higher
Premiums To Replenish Bank Fund |
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By
John Poirier
WASHINGTON (Reuters) - Banks holding volatile deposits gathered by third
parties may be charged higher premiums to bolster the fund used to
insure deposits at failed banks, the head of the Federal Deposit
Insurance Corp said on Friday.
"I
think that is something we need to factor into our premiums and charge
higher premiums to banks that fit that profile," FDIC Chairman Sheila
Bair said in an interview with C-SPAN television.
Bair said brokered deposits at IndyMac (IDMC.PK: ), seized by the FDIC a
week ago, were a big factor driving up the cost to the fund that insures
up to $100,000 per deposit and up to $250,000 per retirement account at
insured banks.
The FDIC expects the third largest bank failure in U.S. history to
deplete the $53 billion fund by between $4 billion and $8 billion.
"Again, overwhelmingly, banks are safe and sound and healthy," so I
think the industry will be able to absorb the additional needs to keep
those reserves strong, she said.
Brokered deposits are short-term deposits accepted by banks to fund
lending activity. But the deposits are considered volatile because
investors chasing high returns can withdraw the money and move it to
another institution.
Well-capitalized banks are free to take such deposits, while those
classified as adequately-capitalized need the FDIC's permission.
Undercapitalized institutions are prohibited from accepting brokered
deposits.
In
the taped interview, to be aired on Sunday, Bair said the FDIC board,
which includes the head of the Office of Comptroller of the Currency and
Office of Thrift Supervision, will meet in September to weigh how to
replenish the deposit insurance fund.
"We always hate to raise premiums but I think it's probably likely we
will have to do that but... hopefully not so severely," she said.
With more banks expected to fail as delinquent loans rise in a weak U.S.
economy, the FDIC has been beefing up its staff to handle the takeover
of failed institutions, including hiring contractors and former FDIC
employees.
Bair also said IndyMac was on the FDIC's list of problem banks in the
second quarter, but she did not elaborate if the number had grown beyond
the 90 banks mentioned at the end of the first quarter. The FDIC is
expected to give an updated number in August.
After the IndyMac failure there were reports of depositors withdrawing
their money from other banks and some websites urged readers to close
their accounts.
Bair said the FDIC needs to stay ahead of misinformation littering the
Internet and is launching a public education blitz next week that
includes a depositors' "bill of rights," to get the message out that
insured deposits are safe.
Looking to temper any concerns about the insurance fund, Bair said it is
backed by the U.S. government and has a $40 billion line of credit with
the U.S. Treasury Department.
"I
would be very surprised if we ever got to that stage," she said.
(Reporting by John Poirier; Editing by Tim Dobbyn)
©
Thomson Reuters 2008 All rights reserved |
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4.
Foundation One Launches
New Value Added Package – To Include Call Md And Karis Group |
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Foundation One
Designs More Than a Standard Limited Benefit Plan
July 21, 2008, Frisco, Texas – Foundation One Insurance Services, Ltd.
announced today that they have added Lifeguard Health Options, a value
added package of non-insured benefits, as a compliment to their
Foundation One Security limited benefit group health indemnity
plans. Lifeguard Health Options features CallMD, a telephone medical
consultation service, and The Karis Group, a patient advocacy program.
“We believe the new Lifeguard Health Options package, featuring CallMD
and The Karis Group, is a perfect fit for our fully insured limited
benefit product portfolio”, said Keith Appleton, Managing Director of
Foundation One. “These two services will help our insured members save
money, extend benefits, and lessen the impact of out-of-pocket medical
expenses typically associated with limited benefit plans.”
CallMD provides a nationwide network of medical doctors who are
available for telephone medical consultations and, if appropriate, the
issuing of non-narcotic prescription drugs. Participants in a Foundation
One Security plan are eligible for four free medical consultations per
calendar year. Prescription drugs issued by a CallMD network physician
are also an eligible benefit under the Foundation One Security plan.
The Karis Group Patient Advocacy Program assists employees and their
family members insured under a Foundation One Security plan when they
have a minimum of $2,500 of out-of-pocket medical expenses from a single
incident requiring hospitalization. A Karis Group negotiator acts as an
intermediary between the patient and their providers, advocating on the
patient’s behalf to resolve their medical bills whether by settlement,
payment plan, or government or charitable assistance
qualification. Historically, Karis Group saves patients over 30% on
their bills, and is able to get some type of reduction on three out of
four bills on which they work.
“We believe in offering more than just a standard mini-med benefit
package,” said Appleton. “This program chips away at the limited benefit
nature of mini-med plans.”
The Foundation One LifeGuard Health Options program also includes
discount vision through EyeMed Vision Care and Counseling Services
provided by LifeGuard Support.
About Foundation One Insurance Services, Ltd.
Foundation One
Insurance Services, Ltd., a nationally-recognized, wholesale marketing
company since 1999, is focused on providing brokers and consultants with
a broad portfolio of limited benefit group health insurance programs and
exceptional support. Product fully insured by American Fidelity
Assurance. For more information about Foundation One and their various
plans, go to
www.found1ins.com.
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5.
Financing Disaster: How
Much Insurance Is Enough? |
|
ONTARIO, Calif., July 21 /PRNewswire/ -- These days, you can insure
everything from your pet to your daughter's honeymoon. When it comes to
daily living, there is so much to insure and the policies are difficult
to understand.
When making choices to protect yourself and your family, the subject of
insurance can be overwhelming, says Frank N. Darras, the nation's
leading disability and Long-Term Care insurance lawyer. At some point,
you have to decide how much is enough. See
http://www.darrasnews.com.
"Life, Disability, Long-Term Care, Critical Illness and Mortgage
insurance policies promise to pay the bills, should the unthinkable
happen. It's important to balance 'financing disaster' against winding
up 'in the premium paying poor house'," says Darras.
Comparing the features and benefits of different policies is exhausting
and most people aren't able to decipher the fine print. The twists and
turns of policies can wear out even the savviest decision maker.
Darras offers these tips:
--
Calculate your debt and ongoing financial obligations.
--
Life insurance usually covers those obligations and takes into
consideration your income today and future value of that income.
--
Disability insurance is varied, complicated and often wrongfully
denied. Ensure you are insuring your most important asset "your ability
to earn" in what you are specifically trained to do. Buy your own
individual "own-occupation" policy in addition to your company-sponsored
plan, this way, you're truly protected.
--
Long-Term Care is usually purchased in your 50s, for elder care, unless
there is a family history of devastating disease.
--
Critical Illness is the same, unless family history dictates someone may
become critically ill, it may not be the best use of your hard earned
dollars.
--
If the debt on your home is covered in your life insurance policy,
Mortgage insurance shouldn't be necessary.
"Regardless of the insurance policy you're shopping for, stick with it
so you understand what you bought and how to access your benefits. Hard
work and smart shopping will protect your family and give you peace of
mind. When the policy arrives, carefully read it and make sure what you
were promised is in your policy," says Darras.
Remember; never buy a policy from a company you don't recognize. What
good are cheap premiums if the company won't be in business in 20 years?
For more information see
http://www.darrasnews.com or call 800-458-4577. |
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6.
Bank Of America Profit
Falls 41 Percent But Tops Views |
|
By
Jonathan Stempel
NEW YORK (Reuters) - Bank of America Corp on Monday reported quarterly
profit that fell less than expected, as improved investment banking and
trading results offset a surge in bad loans, causing shares of the
largest U.S. retail bank and mortgage lender to soar.
The 41 percent drop in earnings was the bank's fourth straight quarterly
decline, as the bank more than tripled the amount it set aside for bad
loans, largely because of falling home prices and a slowing economy.
Bank of America nevertheless became the fourth of the nation's five
largest banks to top quarterly earnings forecasts, joining Citigroup
Inc, JPMorgan Chase & Co and Wells Fargo & Co.
The bank also said its July 1 purchase of Countrywide Financial Corp,
once the nation's largest mortgage lender, will add to profit faster and
result in deeper cost cuts than previously estimated.
Bank of America shares rose $2.75, or 10 percent, to $30.24 in morning
trading, helping to pull broader U.S. equity markets higher. The shares
had bottomed at $18.44 on July 15.
(Additional reporting by Ellis Mnyandu; Editing by Derek Caney and
Gerald E. McCormick)
©
Thomson Reuters 2008 All rights reserved |
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7.
US Insurers Seen Hit By
Disaster Claims In 2nd-Qtr |
|
Mon Jul 21, 2008 1:01pm EDT
NEW YORK (Reuters) - U.S. insurers that sell property-catastrophe
coverage to homes and business may have to pay $6 billion in
second-quarter property losses, a trade group said on Monday.
Jersey City, New Jersey-based ISO said its property claims services
unit, which works with the industry in compiling data, estimates the
sector will see claims exceeding $6 billion from 16 catastrophes across
27 states in recent months.
The group said in a statement that this year had the most second-quarter
U.S. catastrophe activity in nearly a decade, with nearly twice as many
disasters as in the first quarter.
The United States in recent months has been plagued by tornadoes,
flooding, wildfires and other forms of severe weather.
(Reporting by Lilla Zuill; Editing by Lisa Von Ahn)
©
Thomson Reuters 2008 All rights reserved |
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8.
Former SEC Head Wants
Broader Short-Selling Rules |
|
Mon Jul 21, 2008 11:43am EDT
By
Martha Graybow
NEW YORK (Reuters) - Emergency action by regulators to rein in abusive
short-selling in some large financial firms should be expanded to
include the stocks of all public companies, a former top markets
watchdog said on Monday.
Former Securities and Exchange Chairman Harvey Pitt said the SEC's
emergency order that went into effect on Monday would help in "restoring
legitimacy" to short-selling activity but should go even further.
"It's something that is very good of the SEC to have done," he told
Reuters in an interview. "They can't do it across the board without
going through formal rule making, but I do believe that they need to
expedite that."
The SEC last week announced an emergency measure applying to stocks of
17 Wall Street firms, as well as U.S. housing finance companies Fannie
Mae (FNM.N: ) and Freddie Mac (FRE.N: ) as a way to curb manipulative
short selling. The emergency action can last up to 30 days.
The commission's move has drawn complaints, including from the banking
industry, which wants the protections extended to all banking companies.
The SEC has said it will consider rules to address short-selling issues
across the entire stock market.
"Any cut less than the whole is going to be perceived ultimately as
arbitrary," said Pitt, now head of financial consultant Kalorama
Partners in Washington. "My own view is they couldn't do all of the
public companies in one fell swoop. They made what appears to me to be a
reasonable cut, and hopefully they will expand it across the board just
as quickly as they are able to do it."
Short sellers borrow shares they think are poised to drop in price and
then sell them, hoping the stock will fall and can be repurchased at a
profit. A "naked" short occurs when an investor sells stock that has not
yet been borrowed.
Under the emergency rule, a short seller must borrow the securities
before executing the short sale. It also requires the investor to
deliver the securities on the settlement date.
Pitt, who was SEC chairman from 2001 to 2003, said that after the
September 11, 2001 attacks roiled financial markets, many companies
urged the commission to outlaw short selling entirely. But he said the
practice is ultimately helpful to ensuring markets run properly.
"Short selling provides extra liquidity in the market," he said. "The
goal isn't to prevent short selling. The goal is to make sure that
people who sell short will have the means to settle their trades when
they are supposed to be settled."
(Editing by Brian Moss)
©
Thomson Reuters 2008 All rights reserved |
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10.
AIG Shares Jump On Bank
Of America Upgrade |
|
Mon Jul 21, 2008 12:47pm EDT
NEW YORK (Reuters) - Shares of American International Group Inc (AIG.N:
) rose more than 8 percent on Monday
after Bank of America raised its rating on the insurer to "buy" from
"neutral," saying the risk-to-reward ratio has become "very attractive."
Analyst Alain Karaoglan, in a research note, said the shares should
rebound as AIG's new chief executive Robert Willumstad gets to work
pruning and weeding the insurer's sprawling global network of
businesses, as he has promised to do in his first few months in office.
But Karaoglan challenged Willumstad, who was named CEO last month, to
take a more aggressive stance in his review of the company than he has
signaled to date.
"As the new CEO de-leverages, de-risks and simplifies, we see the market
regaining confidence in the franchise, leading to the stock's multiple
recovery," Karaoglan said in the research note. He cut his view for
AIG's 2008 and 2009 earnings, and lowered his 12-month target on the
shares.
AIG shares jumped $2.10 to $27.17 in trading on the New York Stock
Exchange.
The shares have tumbled in recent months and are down 50 percent since
the beginning of the year as the world's largest insurer disclosed two
consecutive quarters of record losses on investments linked to subprime
mortgages.
Karaoglan said he has stayed away from recommending AIG's stock over the
past three years because of a different view of the company's prospects
than that held by the market.
(Reporting by Lilla Zuill; editing by John Wallace and Gunna Dickson)
©
Thomson Reuters 2008 All rights reserved |
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11.
EMB Advises Insurers to
Speed to Usage-based Insurance |
|
Consultants Urge Shift in Gears in Auto Insurance Price Modeling to
Account for Actual Driving Abilities When Producing Rates
SAN DIEGO--(BUSINESS WIRE)--Usage-based insurance will become the
industry standard in the next five years according to EMB, a global
actuarial consulting firm. This method measures actual driving behavior
and allows auto insurers to develop more reliable rates.
Current price modeling utilizes variables, including gender, age, credit
history and marital status, which are predictive but not definitive.
Usage-based insurance uses driving data that allows insurers to
determine more accurate rates, while also empowering customers to
control these rates. Specifically, if a customer drives less, travels at
reasonable speeds, brakes and accelerates gradually, and generally
practices safe driving behavior, he or she can help to ensure lower
rates. Ultimately, these advantages lead to improved customer loyalty
and increased retention – a much sought after goal in the competitive
insurance market.
Usage-based insurance does face obstacles to becoming the industry
standard. Insurers must develop a method of obtaining data, either
through driver self-reporting, existing tools such as OnStar, or new
tools such as proprietary hardware that plugs into the on-board
diagnostic port (OBD) and uses the car's internal computer to track
driving behavior. Then, challenges arise around how to retrieve and
store the information, which data matters, and how to develop predictive
models that meet customer acceptance and regulatory scrutiny, all while
considering the privacy of the customer. Privacy is also an issue when
considering who ‘owns’ the collected data - the consumer, the insurer,
or the government.
Finally, as usage-based rating is currently offered as an optional
program, insurers must address the terms and conditions of opting-in and
opting-out of this program. According to EMB, however, these hurdles
will be overcome over the course of the next five years as appropriate
legislation is created, fair consumer guidelines are established, and
companies begin to gather and analyze the data.
“There are significant challenges to creating a usage-based product, but
the rapid development of technology and knowledge at this time make the
shift in the auto insurance market a trend to which successful insurers
will need to respond. Immediate action and preparation are required in
order to remain competitive when the spike in demand occurs,” says Robin
Harbage, senior consultant of EMB in America. “Insurers who do not
acknowledge this trend will lose their ‘good driver’ customers who will
seek out usage-based insurance and the associated discounts.”
Due to the importance of this topic, EMB is offering a free Webinar on
usage-based insurance on July 22, 2008 at 11:00am ET. Please find
additional details at the following Website:
http://embamerica.com/events/agenda.php. |
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12.
His Royal Highness, the
Duke of York, to Open London’s Latest Architectural Icon: The Willis
Building at 51 Lime Street |
|
(BUSINESS WIRE)--The Willis Building, a landmark new London headquarters
for Willis Group Holdings (NYSE: WSH), the global insurance broker, will
be officially opened on Monday, July 21 by His Royal Highness, The Duke
of York, KG, UK Special Representative for International Trade &
Investments.
WHAT:
Designed by Foster + Partners, Willis' new London headquarters, in the
heart of the insurance district opposite Lloyd's of London, won the 2007
New City Architecture Award for its unique architectural form and
contribution to the streetscape and skyscape of the City.
More than 1,500 local dignitaries and Willis Associates will be in
attendance to watch the official opening of The Willis Building. This
event is open to the press.
WHEN:
Monday, 21 July 2008. Press registration starts from 1:15PM and the
event is from 1:45-2:45PM.
WHO:
Speakers include:
His Royal Highness, The Duke of York, KG, UK Special Representative for
International Trade & Investments.
Lord Levene, Chairman of Lloyd's
Joe Plumeri, Chairman & CEO, Willis Group
Grahame Millwater President, Willis Group
WHERE: The opening will take place in the Lime Street plaza outside The
Willis Building. The address is 51 Lime Street, London, EC3M 7DQ.
www.willis.com |
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13.
U.S. Birthrates Are
Highest in August: Farmers® Insurance Warns: Protect Your Children’s
Identity by Taking Precautionary Steps |
|
LOS ANGELES--(BUSINESS WIRE)--A study by the U.S. Census Bureau (2005)
shows that August is the month with the highest number of births
recorded in the United States. Unfortunately, in today’s economic
climate, many parents are experiencing more than labor pains, because
while still in the hospital, the identities of mother and child are
being stolen.
The Federal Trade Commission released its national ID theft survey,
which for the first time contains statistics specific to medical
identity theft. According to the FTC report (p. 21), 3 percent of all
identity theft victims in 2005 were victims of medical identity theft,
which means of 8.3 million ID theft victims, approximately 250,000
people were victimized by medical identity theft in that year alone.
Jeff Dailey, Farmers President of Personal Lines explains, “A baby’s
name can be used to open accounts by using the information the mother
gives at the hospital, including her maiden name.”
It
could take years before parents realize that their child’s identity has
been used fraudulently. “Bank accounts can be discovered when a child
first goes for a driver’s permit; or a child can be turned down when
applying for college education loans or when opening a checking
account,” Dailey notes. “There are some precautionary steps that parents
can take to protect their children and themselves.”
*
Do not leave identity papers in your clothing that you hang up in your
hospital room. Make sure you empty your pockets and put any
identification information in a safe place.
*
Leave all of your credit cards at home in a safe, or somewhere you know
will be safe.
*
Once your child has been given a social security number, make frequent
checks of your child’s and your credit reports. Your child should have a
clean credit record until 18 years of age.
*
Keep a look out for any solicitations for credit that your child might
receive in the mail, or telephone calls offering credit cards,
magazines, books or other offers.
“If you follow the precautions you should not have any ID problems after
your stay in the hospital,” Dailey continued. “Since Identity Theft is
the fastest growing crime in the world today, Farmers insurance has
developed comprehensive identity theft coverage. Farmers Identity Shield
not only helps you restore your identity after an identity fraud, but
also provides protection for your children by alerting you when such
activity begins. Those who have experienced its devastating effects know
how hard it is to fix and how much time it takes,” he added.
Dailey explained that Identity Shield includes a 24/7 advocate to guide
and assist victims. An expert also is on call to answer any questions
policyholders may have about children or adult identity theft. “There is
much more, including assistance in replacing lost, stolen or damaged
identification documents and prevention tips,” Dailey said.
For more information on identity theft and how to prevent it, contact
your local Farmers agent or visit
www.Farmers.com |
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14.
Insure.com: State Farm
Car Insurance Claims Data Leads to Better Vehicle Design |
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DARIEN, Ill., July 21 /PRNewswire-FirstCall/ -- Insure.com, Inc. (Nasdaq:
NSUR) revealed today that all car insurance buyers benefit from research
done by the nation's largest auto insurer, State Farm.
State Farm handles about 9 million claims a year (about 17 per minute),
from stolen cars to fender-benders to total losses.
What's an insurer to do with all those claims? State Farm makes good use
of them. For one, the claims data help State Farm set the car insurance
premiums for other drivers of those vehicles. For example, do you have a
vehicle that's a favorite of thieves? That's reflected in your car
insurance bill. But State Farm also uses its wealth of claims data to
encourage better and safer car design.
Remember when Ford Explorers with Firestone tires gained national
attention in 2000 because of alarming numbers of rollovers? State Farm
was the first to sound the alarm bell to the National Highway Traffic
Safety Administration in 1998.
State Farm regularly communicates with auto makers on what it sees as
potential vehicle improvements based on trends in customer claims. When
the insurer sees a way a car could be better protected from theft, or a
bumper that never survives a crash, or a car with high passenger
injuries, it lets car manufacturers know.
"You try to work together and find a common ground," explains State Farm
spokesperson Kip Diggs. "Even if they don't acknowledge that the idea
came from you. It's a satisfying gig." And it's a gig that stands to
benefit all car buyers, not just State Farm customers, through safer
vehicles and, ultimately, lower car insurance rates.
Case in point: The Mustang
When Ford was designing its current-generation Mustang in the late '90s,
it asked State Farm to look at the design and give an opinion. Earlier
Mustangs didn't sport a great safety record and were high on theft
lists. State Farm employees tore down the Mustang and made
recommendations to Ford (free of charge).
Shortly after the new 2005 Mustang GT came out, State Farm got its hand
on one of the first that had been wrecked. (It had been purchased for a
16-year-old in Chicago.) State Farm employees wondered if any of their
suggestions had made it into the design.
"We were pleased to see some suggestions made it in," says Diggs, such
as the way Ford had affixed panels and hard pieces to the car that makes
it easier for the vehicle to be repaired.
A
public service
State Farm doesn't charge auto makers for its recommendations, and
doesn't even expect a thanks. But for four men in State Farm's Vehicle
Research Facility in Bloomington, Ill., it's their lives' work.
State Farm not only examines past claims for problematic vehicles, but
it also pulls those vehicles into its research facility and tears them
down, looking for clues as to why those vehicles incur extra costs. They
tear down 25 to 50 vehicles a year, most of them wrecked or damaged. For
example, State Farm employees noticed a couple of years ago that the
Chevrolet Cobalt, which shared a platform with the Saturn Ion, performed
much better than the Ion in side-impact crashes. State Farm brought the
two vehicles into its facility, took them apart, and discovered that
Chevrolet had added side reinforcements in the Cobalt, increasing
passenger safety.
Figuring out how to keep vehicles safer from theft is also significant
work at the State Farm facility.
"If a professional wants your car, he's going to get it," says Diggs.
"But if we can find ways to make a car frustrating to get into for a
professional, and less attractive to thieves and joyriders, that's
worthwhile."
Suggesting ways for auto makers to produce cars with lower repair costs
is also a mission. When your damaged car goes into the body shop for
repairs, "everything goes by time," says Diggs. "Labor's where the money
is. A vehicle that can be repaired more quickly is a vehicle that's
going to be less expensive to insure. Even if you're an Allstate or
Nationwide customer, you get the benefit of that vehicle."
"State Farm has an interest in seeing cars built to better standards,"
says Diggs. "Some manufacturers listen, some don't."www.insure.com |
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15.
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
Two more broker acquisitions by Equity
Focus launches provider extranet solution
Equitable Life-how much conpensation?
Towergate Financial raises over £100m
Guidewire wins in New Zealand
First half premiums soar at China Life
Matthews takes over as CII president
Dai-ichi Mutual Life to buy stake in Thai insurer
Zurich to make acquisitions in Brazil
Shriram General opens in India
Capita Financial Software launches latest client care desktop edition
Cooper Gay secures debt facility
US
tornado claims up
IFA Insurance releases claims reporting and tracking over the web
Guy Carpenter publishes July reinsurance renewal briefing
CEA responds to EC on block exemption
Large pensions market potential in India
Pitney Bowes Mapinfo introduces GroundView
Hannover Re in negotiations to buy life and health reinsurer
Gothaer reports record net profit
Aon UK makes ebusiness appointment
AXA calls for more additional expenditure on flood issues
Profits down at Brown & Brown
Fraud 2008-Collaborating for Change
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16.
Bank Insurance News In
Brief - July 21, 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
- WACHOVIA SELLS INSURANCE AGENCY BACK TO ITS PRINCIPALS
- WELLS FARGO LAUNCHES ‘GLOBAL BROKER NETWORK’ WITH ACQUISITION OF
LONDON-BASED INSURANCE BROKERAGE
- ‘ABOLISH ALL CONTINGENT COMMISSIONS,’ CRIES WILLIS CEO
- RECORD INSURANCE AND OTHER FEE INCOME ARE SILVER LINING IN ‘CURRENT
CREDIT CYCLE’ FOR BB&&T
- HUNTINGTON BANCSHARES’ BROKERAGE AND INSURANCE INCOME MORE THAN DOUBLES
- VALLEY NATIONAL’S INSURANCE EARNINGS DIP, STILL COMPRISE 12.6% OF
NONINTEREST INCOME
- ROBUST GROWTH IN INSURANCE AND NONINTEREST INCOME DELIGHTS NATIONAL PENN
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17.
IIABNY Chair to Testify
at Broker Comp Hearing |
|
(DeWitt, New York, July 21, 2008) — Neal L Sullivan, chair of the
Independent Insurance Agents & Brokers of New York, Inc., will testify
July 23 before a joint public hearing conducted by the New York State
Insurance Department and New York State Office of the Attorney General.
Sullivan will provide written and oral testimony.
The Albany hearing will address the issue of contingent
commissions—sometimes referred to as profit sharing—received by
insurance agents and brokers.
According to a recent NYSID news release, the hearings were scheduled to
determine if agents and brokers “should be required to make full
disclosure” of profit sharing agreements to their clients and “whether
such compensation creates an irreconcilable conflict of interest” for
agents and brokers. However, the Liberty Mutual Insurance Company was
victorious in a recent New York State Supreme Court, Appellate Division,
First Department decision that determined “contingent commission
agreements between brokers and insurers are not illegal.” The decision
further explained that Liberty Mutual “had no duty to disclose the
existence of the contingent commission agreement.”
Sullivan will reflect a long-standing IIABNY position that profit
sharing is a legitimate method of compensation, as seen through the
Liberty Mutual decision. In addition, IIABNY believes that mandatory
disclosure singles out the independent insurance distribution method and
would add burden to the agent or broker while increasing cost to the
insured.
The Chancellor’s Hall at the State Education Building, 89 Washington
Ave. in Albany is the site of the event, which begins at 10:00 A.M. THE
MEDIA AND PUBLIC ARE INVITED. www.trustedchoice.com or
www.iiabny.org |
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18.
PSA Insurance &
Financial Services Announces Acquisition of Alliance Benefit Group
Mid-Atlantic |
|
Deal for Provider of Employee Retirement Programs Adds Depth of Talent,
Services for Growing Firm
BALTIMORE--(BUSINESS WIRE)--PSA Insurance & Financial Services today
announced the acquisition of the Baltimore office of Alliance Benefit
Group Mid-Atlantic (ABG), a leading provider of employee retirement
programs. The acquisition adds depth, expertise, and new services to PSA
while building upon the company’s vision to serve businesses of all
sizes in property and casualty insurance, employee benefits, and
retirement plan services.
PSA will gain more than 20 employees who are experts in retirement plan
design and administration, along with a book of business that includes
large companies with up to $50 million in retirement plan assets. |
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19.
AG Financial Insurance
Solutions Appointed By Electric Insurance Company |
|
Companies share strong commitment to service excellence and competitive
pricing
BEVERLY, Mass.--(BUSINESS WIRE)--Electric Insurance Company
announced today that it has appointed AG Financial Insurance of
Springfield, Missouri to market its personal lines insurance products.
Electric Insurance is a provider of auto, homeowners, condominium,
renters, and umbrella insurance to the employees of General Electric,
and to consumers through a select group of Independent agents. The
partnership between the two companies will give consumers shopping for
auto and home insurance in Springfield and surrounding communities, an
opportunity to experience customer service and claims excellence at a
competitive price.
www.AGFinancial.org.
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20.
INSURANCE NEWSCAST "Pictures Of The Day"
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Obama visits Iraq, focus on U.S. troop levels.
Iraq's Prime Minister Nuri al-Maliki (R) speaks with Democratic
presidential candidate Barack Obama (L) in Baghdad July 21, 2008.
REUTERS/Thaier al-Sudani
Read Entire Story!!!
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Storm Dolly may become hurricane, hit Texas. A
satellite image of Tropical Storm Dolly, taken on July 21, 2008.
REUTERS/NOAA/Handout
Read Entire Story!!!
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Yahoo and Icahn settle, Microsoft deal seen
adrift. Investor Carl Icahn speaks at the Wall Street Journal Deals &
Deal Makers conference in New York, June 27, 2007. REUTERS/Chip East
Read Entire Story!!!
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Ireland's Prime Minister Brian Cowen (L) and
France's President Nicolas Sarkozy attend a news conference at the
government building in Dublin July 21, 2008. Sarkozy, whose country
holds the rotating European Union presidency, has the task of finding a
way out of the crisis sparked by the rejection Irish vote on the EU
reform treaty. REUTERS/Philippe Wojazer (IRELAND)
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Britain's Prime Minister Gordon Brown and his
wife Sarah (2nd L) are accompanied by Palestinian Prime Minister Salam
Fayyad (R) during a visit to the Church of the Nativity in the West Bank
town of Bethlehem July 20, 2008. Brown urged Israel on Sunday to stop
settlement expansion on occupied land, saying it was making it harder to
reach a peace deal with the Palestinians this year. REUTERS/Ammar Awad
|
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Firefighters look at a forest fire in Menderes,
near the western Turkish coastal city of Izmir, July 20, 2008.
REUTERS/Stringer
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Belgium's Royal family watches the traditional
military parade on National Day in front of the Royal Palace in Brussels
July 21, 2008. REUTERS/Francois Lenoir (BELGIUM)
|
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Batman breaks Spider-Man record at box office.
Actors (L-R) Chin Han, Michael Caine, Gary Oldman, Christian Bale,
Maggie Gyllenhaal, Aaron Eckhart, Morgan Freeman, and director
Christopher Nolan pose for photographers for the premiere of the film
The Dark Knight in New York, July 14, 2008. REUTERS/Keith Bedford
Read Entire Story!!!
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Ducks sit on a lagoon near the National Stadium
also called the 'Bird's Nest' at the Olympic Green in Beijing July 21,
2008. The International Olympic Committee recently praised Beijing for
setting a "gold standard for the future" in its preparations for the
Games, which begin in less than a month. China has transformed its
capital for the August 8-24 Olympic Games, spending 140 billion yuan
(US$20.34 billion) to combat chronic pollution and create a clean, green
Beijing which it hopes will promote domestic stability and showcase a
newly confident nation to the rest of the world. REUTERS/Claro Cortes IV
(CHINA) (BEIJING OLYMPICS 2008 PREVIEW)
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