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1. Paulson: Need for terror insurance less obvious WASHINGTON, June 27 (Reuters) - U.S. Treasury Secretary nominee Henry Paulson said on Tuesday the need for a governnment-backed terrorism risk insurance program was not as obvious to him today as it was shortly after the September 11, 2001, attacks. Paulson, testifying on his nomination to succeed outgoing Treasury Secretary John Snow before the Senate Finance Committee, said he was looking forward to participating in a White House-sponsored working group to consider the future of the Terrorism Risk Insurance Act, which now expires in December 2007. "It isn't as obvious to me that we need it today as it was before. But that doesn't mean to say we shouldn't (have it)," Paulson said. As head of Goldman Sachs (GS.N:), Paulson last year advocated a two-year extension of TRIA, saying in a letter to Congress: "We simply cannot afford to let the private sector be economically exposed." He told the Senate panel on Tuesday that he normally prefers private market solutions, but looked forward to "getting more of the facts" on the issue. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Survey by Subsidiary of The Hartford Finds Insurance Agencies Rewarding Organic Growth, Profitability and Business Retention Business Management Group's '2006-2007 Owner, Executive and Producer Compensation Survey' offers latest insight into trends and compensation figures for agency benchmarking HARTFORD, Conn., June 27 /PRNewswire-FirstCall/ -- With fewer large books of business changing hands recently, insurance agencies are relying on staff- driven, organic growth to expand their operations. Compensation packages and new recruitment and training strategies have shifted to reflect this trend, and also to address the shortage of trained sales professionals, according to the recently-published Business Management Group, Inc. 2006-2007 Owner, Executive and Producer Compensation Survey. Business Management Group (BMG), a subsidiary of The Hartford Financial Services Group, Inc. (NYSE: HIG), is an independent agency/broker consulting firm that has surveyed and published agency compensation studies since 1990. The surveys enable agencies to benchmark their compensation plans against industry norms by looking at various factors, including revenue size and region. "With a shortage of sales talent in today's market, hiring producers from outside the industry has become a key recruiting strategy for almost 85 percent of respondents in our survey," said Suzy Hammett, vice president, Business Management Group and author of the study. "That means it's even more important for agency principals to know how to attract and retain top performers with good training programs and competitive compensation packages." Survey Highlights BMG's survey, which was last published in 2002, is a comprehensive 46-page report based on responses from 162 agencies and brokerage firms, categorized by line of business, six regions and 2005 total agency revenue. Conducted in March 2006, the survey provides a useful snapshot of how agencies stack up against their peers. It can also serve as an important tool for responding to changing market conditions and helping to retain an effective workforce. Some survey highlights include the following: Producer Compensation. According to the survey, the level of compensation for agency producers was directly related to the agency's size and individual earnings. For example, the smallest agencies, with less than $500,000 in revenue, averaged $55,000 in total compensation per multi-line producer, while the largest agencies, with revenues in excess of $25 million, averaged $192,400 per producer. Nationally, the average total compensation was $44,583 for new, inexperienced producers and $113,925 for seasoned multi-line producers. Commission Rates. Producer commission rates at the largest agencies -- those with revenues greater than $25 million -- averaged four to 12 percent less than those in mid-size and smaller agencies. This difference may be due to the fact that larger agencies tend to provide additional resources such as sales centers, central marketing and account executives which increase the cost of acquiring and keeping business yet can help increase an individual's productivity. Benefits and Perks. Beyond commission, the benefits and perks offered by an agency were important components of a producer's total compensation package. For example, 57 percent of the survey group provided reimbursement for travel and entertainment expenses, while 32 percent paid a monthly auto allowance which averaged $431 per month. Executive Compensation and Bonuses. For executives, the most important factors in determining base salaries were management responsibility and the size of the book of business produced. Sixty-two percent of respondents ranked agency profits as the key factor for determining executive bonuses compared to 50 percent of respondents in BMG's 2002 survey. Additionally, agency growth moved from fourth place to second place during this time period, emphasizing the need to better align executive rewards with growth initiatives. Long-Term Incentives. To retain the most senior personnel, more agencies today were offering long-term incentives in the form of stock redemption and deferred compensation plans. For example, 36 percent of respondents were offering incentives to owners and 39 percent were offering plans to senior management, compared to just 25 percent in 2002. In addition, 27 percent of agencies were offering executives equity in their book of business while 24 percent were offering senior management stock options. Account Trends. Another continuing trend was the focus on developing new and larger accounts. According to the survey, 24 percent of agencies were eliminating or reducing commissions on small commercial accounts. More agencies were also establishing small business units to handle sales and service functions and reduce operating expenses so their producers could focus on larger accounts. Similarly, agencies were depending more on customer service representatives (CSRs) to sell additional insurance products to customers and were structuring their compensation to reflect this trend. For example, 65 percent of agencies were paying CSRs for writing new business, up significantly from 43 percent in 2002. CSR sales commission percentages, which varied by line of business, averaged 21 percent for commercial lines, 24 percent for personal lines and 22 percent for employee benefits. The Business Management Group's 2006-2007 Owner, Executive and Producer Compensation Survey is the only national industry study with data that can be analyzed by geographic region and revenue size. It is cited by the Independent Insurance Agents and Brokers Association (IIABA) as one of their best practices tools. The survey is available from BMG for $175 plus applicable taxes. For additional information, contact BMG at 800-772-0208 or visit http://www.bmgconsulting.com. www.thehartford.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Property/Casualty CEOs Concerned About Capacity And Pricing NEW YORK June 20, 2006--Property-catastrophe capacity, especially in areas highly prone to losses, was high on the list of concerns for panelists from the property/casualty (P/C) industry at Standard & Poor's Ratings Services' recent annual insurance conference, "Insurance 2006: Rethinking Risk." Although capacity still exists in some areas in the U.S.'s east coast, the rate at which it is vanishing, especially in coastal areas, as well as the steep prices being offered for available capacity, had panelists concerned about pricing discipline. "Someone's going to have to blink soon," said panelist Ted Kelly, chairman, president, and CEO of Liberty Mutual Group Inc. (BBB/Stable/--). Whether P/C insurers price risk properly is a worry. Even though premiums have doubled in the past three to four years, "pricing in primary markets isn't supporting the cost of reinsurance," Mr. Kelly said. Reinsurance capacity might still be 20% short of demand in the southeastern U.S., and "Problems getting insurance in the Gulf region haven't been settled yet," Mr. Kelly added. Companies "should look at their enterprise risk management, and what kinds of controls management has on currency and hedging," said panelist Martin Sullivan, president and CEO of American International Group Inc. (AA/Negative/A-1+) since 2005, who would also like to see construction codes improved in the Southeast. P/C industry pricing, looking forward, is a huge question mark, and an additional worry for these CEOs. If 2006's hurricane season is benign, pricing discipline will remain, especially in the catastrophe area, Mr. Sullivan said. Mr. Kelly, however, was not so sure. "A pricing bloodbath" could ensue if the hurricane season is moderate, he said. "Watch October renewals--they will be the first sign of a lack of discipline," he warned. The role capital markets now play in maintaining financial strength also had panelists, as well as the moderator, Standard & Poor's credit analyst Thomas Upton, concerned. Although capital to replace what was lost to the catastrophes of 2005 and 2004 was readily available, it might not be if severe catastrophes hit in 2006. "I was surprised at the ease of which companies recapitalized after Katrina," said panelist Dinos Iordanou, president and CEO of Arch Capital Group Ltd. (BBB/Stable/--). Would companies be better off if they had to replenish capital organically rather than going to the capital markets? Panelist opinions were not uniform. Mr. Kelly was emphatic about the industry's need for a free flow of capital, but Mr. Sullivan said the industry would be tested if the season was active. Mr. Iordanou cited that even if a major hurricane does come, $600 billion-$650 billion of surplus still exists in the global marketplace. Bottom line, underwriting discipline continues to be important. "Given the legal environment, what we are writing today will be the issue five to seven years down the road," Mr. Sullivan said. Surprisingly, the industry has made an underwriting profit only once in the past 25 years--in 2004. "Clearly, there's room for improvement," Mr. Sullivan added. www.standardandpoors.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. More Employers Offer Consumer-Driven Health Plans to Employees, Says Aon Consulting and the International Society of Certified Employee Benefit Specialists CHICAGO, June 27 /PRNewswire-FirstCall/ -- More employers are offering a consumer-driven health plan (CDHP)(1) to their employees in an effort to continue providing quality healthcare coverage, while controlling costs and introducing consumerism, according to Aon Consulting, the human capital consulting organization of Aon Corporation (NYSE: AOC). A nationwide survey of 434 employers, conducted by Aon Consulting and the International Society of Certified Employee Benefit Specialists (ISCEBS), found that 28 percent currently offer a CDHP to their employees, which is up from 22 percent in 2005. In fact, this study shows that of those employers with a CDHP, 75 percent began offering the plan in 2005 or 2006, illustrating the relative newness of the concept and its growing appeal. Of the employers not offering a CDHP, 30 percent believe the concept is too new to offer now and will wait to learn from the experience of other employers before deciding to offer one. "We expect more and more employers to offer a CDHP in the future," said Bill Sharon, senior vice president with Aon Consulting and co-author of the study. "Early CDHP results have been very positive. Employees like CDH plans, as we consistently see 90 percent satisfaction rates. Employers also like them because they are seeing a reduction in healthcare cost increases." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Allstate Retirement Survey Reveals Three Out of Four Boomers Admittedly Ill-Prepared for Retirement; Gen-X Males Most Optimistic About Personal Finances ‘Financial Independence’ a State of Mind, not a State of Saving NORTHBROOK, IL June 27, 2006–Allstate’s 2006 Retirement Reality Check survey shows that 70 percent of Americans polled–regardless of age, gender, household income and education–describe themselves as “financially independent.” But, despite such optimism, 40 percent of respondents admit they are not saving seriously for retirement. In fact, the sixth-annual survey, which tracks Americans attitudes toward and savings for retirement, reveals that only 21 percent overall—and only 25 percent of Baby Boomers (born 1946-1964)—believe they are “very prepared” financially for retirement. And, overall, 38 percent say they expect their retirement to be “financially difficult.” Survey respondents also express apprehension about recent trends, such as rising costs of healthcare. Other unplanned factors also hamper America’s retirement dreams. For example, 34 percent of respondents overall—and 43 percent of Boomers—say providing support to adult children has affected their ability to save for retirement. Even 21 percent of Generation Xers (those born from 1965 to 1978) say this. “It’s remarkable that people can at once declare they are financially independent, yet not be financially prepared for the future,” says Casey Sylla, president, Allstate Financial, a subsidiary of Allstate Corp. “A sobering finding is that the generation least likely to deem themselves financially independent are those age 45-54, which suggests that as people near retirement age some reality is setting in. The key is for that reality to lead to action.” www.allstate.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. WATSON WYATT URGES CONGRESS TO SEIZE OPPORTUNITY TO SHORE UP NATION’S PENSION SYSTEM New Analysis of FORTUNE 1000 Firms Shows Continued Shift to 401(k)s WASHINGTON, June 27, 2006 – With the pension reform bill at a critical point in Congress, a new analysis by Watson Wyatt Worldwide shows that a significant number of the nation’s largest companies are reconsidering their commitment to providing traditional pensions to millions of U.S. workers. As a result, Watson Wyatt, a global human capital consulting firm, is calling on lawmakers to take advantage of this historic opportunity to rework the current pension laws to help companies continue to sponsor such plans. “The traditional pension system, which has served Americans well for decades, continues to play a valuable role in ensuring employees can retire when they and their employers want them to,” said Sylvester J. Schieber, director of U.S. benefits at Watson Wyatt. “Congress has an opportunity to create an environment in which employers will be able to sponsor pensions and make sure employees have adequate retirement income. If it fails to take advantage of that opportunity, both employers and employees will suffer.” A Watson Wyatt analysis of FORTUNE 1000 companies, many of which sponsor more than one pension plan, shows an increase in pension plan freezes and terminations. As of April 2006, 113 companies have at least one frozen or terminated defined benefit plan or have announced plans to freeze or terminate a plan, compared with 71 in 2004. An analysis Watson Wyatt released in May showed similar trends when just the largest 100 firms were analyzed. When plans are frozen, current plan participants receive no additional benefits from either additional tenure or increases in compensation. When plans are terminated, participants are either given an annuity or a lump sum payment. If sponsors cannot afford to pay all benefits owed, the Pension Benefit Guaranty Corporation takes over the plan. Pension Plan Sponsorship Among FORTUNE 1000 Firms - Year -- Number of defined benefit plan sponsors Number of plan sponsors with frozen or terminated plan 2005 – 627 - 113 2004 – 627 - 71 2003 – 633 - 45 2002 – 624 - 39 2001 – 638 - 34 The number of companies that closed a plan to new hires or announced such an intention has increased from 25 to 49 since 2004. Schieber said those statistics are particularly discouraging, as they indicate a trend with long-term implications for future generations of workers. Overall, 162 companies had at least one plan that was frozen, terminated or closed to new hires as of April or announced plans to take such action in the future, compared with 96 in 2004. Regardless of Congress’ decisions on pension reform, employers should keep in mind the potential ramifications of switching from a defined benefit to a defined contribution-only system, such as a 401(k) plan. Moving to such a system may make it harder to retain employees and ensure they have adequate retirement savings. Many employees are not taking advantage of their 401(k) plans or saving enough, and their retirement payouts will be heavily influenced by the state of financial markets. For instance, an employee with a balanced portfolio who retired in 1999, before the dot-com bust, would have been able to replace 61 percent of his income in retirement, but a co-worker with an identical portfolio who retired just three years later would have been able to replace only 36 percent of his income. As a result, many employees will not be able to retire when they want to, or when their employer wants them to, creating workforce management issues that employers may not face with defined benefit plans. “As Congress considers pension reform, it should be careful not to pass laws that would make it even harder for companies to maintain their traditional pensions,” Schieber said. “Employers are clearly struggling with decisions regarding retirement plans, in large part because of decades of legal and regulatory uncertainty. It would be extremely unfortunate — for employees and employers — if new laws pushed companies in the wrong direction.” www.watsonwyatt.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Big US companies shift from pensions Tue Jun 27, 2006 1:44pm ET - Reuters Recommends - WASHINGTON (Reuters) - The biggest U.S. companies are continuing to move away from traditional pension plans, according to a new survey, and its authors said Congress should rewrite laws to help stop the trend. As of April, more than one in 10 of the Fortune 1000 companies -- 113 of them -- had frozen or terminated at least one pension plan, or had announced plans to do so, Watson Wyatt Worldwide said in its survey. That compared with 71 companies in 2004 and 45 the year before. Sylvester Schieber, director of U.S. benefits at the Arlington, Virginia, consulting firm, said employers were clearly struggling with pension plans, partly because of "decades of legal and regulatory uncertainty" around them. He called on Congress to rework pension laws to help companies continue to sponsor such plans. The House of Representatives and Senate have passed separate pension reform bills that congressional negotiators are trying to reconcile into a single measure. "As Congress considers pension reform, it should be careful not to pass laws that make it even harder for companies to maintain their traditional pensions," Schieber said. Traditional pensions, known as defined benefit plans, pay retirees a monthly benefit. Nationwide, plan liabilities outpace assets by $450 billion, pension insurers estimate. On Capitol Hill, House Majority Leader John Boehner said on Tuesday he hoped congressional negotiators could reach agreement on an overhaul of pension rules shortly but thought it was "doubtful" that the compromise bill would be brought to the floor of either chamber before a recess next week. Boehner, an Ohio Republican, said some significant issues remained undecided, including proposals for special relief for struggling airlines with traditional pension plans. "There is no resolution of that (airline) issue," he told reporters. Watson Wyatt said 627 of the Fortune 1000 companies sponsor defined benefit plans. Employers are watching the pension talks to see whether they will have to contribute more to plans -- and how predictable the costs will be year to year. When pension plans are frozen, employees receive no new benefits from additional tenure or salary increases. When plans are terminated and assumed by insurers at the Pension Benefit Guaranty Corporation, participants receive reduced payouts. Last week, Delta Air Lines Inc. (DALRQ.PK:) said it would attempt to terminate its pilots' pension plan as part of its bankruptcy restructuring. Many employers are moving to 401(k) savings plans for workers, but Watson Wyatt warned this might not be a good way to keep workers or ensure they have enough retirement savings. The number of companies that closed a plan to new hires or announced such an intention had risen to 49 as of April 2006, nearly double the number at the end of 2004. Schieber said those statistics are "particularly discouraging" as they indicate a trend for future generations of workers. (Additional reporting by Donna Smith) © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Nortel cuts 1,100 jobs, pension plan to trim costs By Blaise Robinson - TORONTO, June 27 (Reuters) - Nortel Networks Corp. (NT.TO:) (NT.N:), the telecom equipment giant left out of the sector's recent mega mergers, said on Tuesday it will cut 1,100 jobs, or 3.2 percent of its workforce, and squeeze its pension plan to trim costs and improve margins. Nortel, which lost $2.58 billion in 2005, will eliminate about 1,900 positions around the world and create 800 new ones in "centers of excellence" in low-cost Mexico and Turkey. ($1=$1.12 Canadian) © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. 100,000,000 People Affected By Identity Theft in Last 16 Months No one appears safe with new breaches reported daily through work, school and play Chandler, AZ (June 26, 2006) – With a rash of major announcements about losses of personal information by several governmental agencies, a few universities and financial organizations, the total number of U.S. citizens to have information compromised has topped 100,000,000 in the last 16 months. The total number is actually larger than 100,000,000 since The Privacy Rights Clearinghouse, a non-profit group in San Diego, that keeps track of losses has more than 30 incidents listed with an unknown number of people affected and others not counted in the running total for various reasons. Just how big is 100,000,000 people? The current population of the U.S. is 297,000,000 The population of the United Kingdom is just over 60,000,000 The total number of people that voted in the last U.S. Presidential election was roughly 114,000,000 Of course it took much longer to achieve the numbers above. The 100,000,000 people with compromised information joined the unfortunate club in the last 483 days. That’s 208,000 potential victims each day. Ironically, even the Federal Trade Commission isn’t safe. A breach of security recently sent them into a tailspin as it has so many other companies. With examples like these, fraud prevention and protection become more important than ever. "It’s hard to think that this nation has reached such an ugly milestone –100 million people with losses of personal information in the last 16 months,” noted Todd Davis, CEO of LifeLock. “We know not everyone will become a victim of ID theft, but if you are one that does, are you prepared to deal with it? We are doing everything we can on a state and national level to help preserve our delicate information. In the meantime, we strongly urge everyone to prevent something from happening by using fraud alerts.” LifeLock is the nation’s first and only ID Theft Prevention Company that maintains active fraud alerts with the three major credit bureaus as well as ChexSystems. The LifeLock system makes personal information useless to everyone but the rightful owner. Every time someone attempts to open credit, change an address or make changes to bank accounts, LifeLock is there to ensure the right person is making the request. Also unique to other products on the market, LifeLock removes a member’s name from solicitation lists and junk mail, eliminating a primary target of ID thieves – the pre-approved credit offer. Best of all, the LifeLock system is backed by a $1 million guarantee to completely fix any problems if a client was ever compromised. www.lifelock.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Detroit Regional Chamber adds Web-Based COBRA Services for Members Detroit Regional Chamber offers COBRA Administrative Services at $25.00 per month - Reflecting a Savings of up to 75% off the Original Price. Mission, KS June 28, 2006: The Detroit Regional Chamber announced a partnership with Kansas City based COBRAGUARD, Inc. to provide COBRA Administrative Services to its members via its web-based CobraTrak™ system. “At a time when the Detroit Regional Chamber is experiencing tremendous growth in its small group health insurance program, our members have come to count on us to continuously provide them with innovative solutions to enhance their membership, said Richard E. Blouse Jr., Presient & CEO of the Detroit Regional Chamber. ”CobraTrak™ is a complete processing solution, that will offer our members the highest level of efficiency in the COBRA administration industry”, said Blouse. COBRA services will complement the Chamber’s existing small group health program. In addition to providing a new member benefit CobraTrak™ will also be a valuable tool for the Chamber’s independent insurance agents. “CobraTrak™ will allow our small business members to have all the benefits of superior group insurance, without most of the headaches associated with COBRA administration,” said Roy Lamphier, Vice President of the Chamber’s Insurance Programs. “COBRA administration has become more difficult in recent years, and most small employers simply do not have the expertise required to deal with COBRA effectively”, said Robert Meyers, President & CEO of COBRAGUARD, Inc. “The Detroit Regional Chamber is truly one of the most progressive chambers of commerce in the country, as they have recognized the need for outsourcing those difficult tasks which necessitate precision and focus. The Chamber is offering an incredible package of services. “ “When they gave us their requirements, the Chamber explained they wanted to include the most comprehensive services that we offer at the largest discount possible in order to provide their members with the finest COBRA administrative package available for the best value,” says COBRAGUARD’S Marketing Director, Mike Gallagher. “COBRA administration typically involves; mailing notification services, customer service, election coordination, invoicing, payment collection, remittance, and reconciliation of premiums. The Chamber is providing all of that and more through the CobraTrak™ application. COBRA participants also have the ability to log-in, elect, pay, and continually update themselves via COBRAGUARD’s secure participant interface www.MyCOBRA.Info. Employers offering the Chamber’s health insurance program can enjoy a 75% savings on the cost of COBRA administrative services because of the value added by the Detroit Regional Chamber and COBRAGUARD, Inc. relationship. COBRAGUARD, Inc. is a leader in web-based COBRA administration for organizations across the United States. COBRAGUARD is focused on COBRA administration services and utilizes its proprietary CobraTrak™ system to efficiently administer COBRA for small and large organizations nation wide. COBRAGUARD leverages technology, efficiency, and staff to provide unparalleled service and value to clients. The company web site can be found at www.cobraguard.net. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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11. AutoOne Insurance Introduces CAR Network Complete Auto Repair (CAR) customer service provides stress-free repairs MELVILLE, N.Y., June 26 /PRNewswire/ -- AutoOne Insurance, a division of OneBeacon Insurance Group, providing auto insurance to both voluntary and Assigned Risk drivers, today announced a brand new service for its customers aptly named AutoOne CAR Network.The AutoOne CAR (Complete Auto Repair) Network is a stress- and hassle-free customer service that provides repair center referrals, at the customer's option, to a network of facilities selected by AutoOne Insurance. It's convenient, paperless and available to anyone who reports a claim to AutoOne's claims hotline. www.AutoOneIns.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Poverty, Lack of Health Care Plague Residents Along U.S.-Mexico Border More Health Centers, Funding for Health Professionals, Expansion of Public Insurance Needed WASHINGTON, June 26 /PRNewswire/ -- More than 13 million American and Mexican residents live along the 2000-mile U.S.-Mexico border, a region that suffers disproportionately from health problems because of poverty and lack access to health care and health insurance coverage. In a speech before the Border Conference on Health, Dan Hawkins, Director of Policy for NACHC, said that picture is unlikely to improve unless the nation acts to counter the trend in several key areas. The border region encompasses four states in the U.S. -- California, Arizona, New Mexico and Texas. In Texas/Mexico border counties Hawkins said "the uninsured make up 34.6 percent of the population -- more than twice as high as the U.S. average of 15 percent." Consequently, residents face health problems common to developing nations. "Border counties had a tuberculosis rate 192% higher than the entire state of Texas and 271% higher than the U.S.," Hawkins said. "The incidence of Hepatitis A was 347% higher than Texas as a whole and 694% higher than the United States. Eight percent of people 18 and older who were living in Texas border counties had diabetes compared to 6.2% of people in the entire state." Cross-border migration and easy mobility between the U.S. and Mexico make it difficult for providers to track and treat patients who suffer from disease, much less provide follow-up and continuity of care. The nation's farmworkers are among the ones most vulnerable, Hawkins noted, "because their work requires mobility that makes it all but impossible for them to either secure affordable insurance coverage or receive regular health care. America's farmworkers suffer from some of the highest rates of diabetes, hypertension, asthma, oral and mental health problems, infectious diseases, skin and muscular disorders, and cancer." Endemic poverty and lack of health insurance also play a major role in the shortage of health professionals in the area. More than half -- or roughly 60 percent -- of border counties in Texas are designated as a Health Professional Shortage Area, with a skeletal healthcare infrastructure that includes fewer public hospitals than in other parts of the country. Also, Hawkins said changes to the payment structures of both Medicare and Medicaid will make it even more difficult for the few physicians in the area to get adequately reimbursed for treating patients; the price of caring for large numbers of uninsured is skyrocketing in southwest border counties, with "county hospitals reporting uncompensated care totaling nearly $832 million." Hawkins said to counter the trend the U.S. must invest dollars in building and expanding community and migrant health centers to expand access to health care in underserved areas. He noted that, "Already, the House of Representatives has taken the President's request for a $181 million funding increase for the program -- and raised that amount by another $25 million. This new funding would extend care to almost 1.5 million more underserved people next year. So there should definitely be some real money available to improve access to care in key areas next year." He also said Congress must support "more funding for key health professions training programs, including the National Health Service Corps," to address the "the current shortages of physicians, dentists, nurses, mental health specialists, and other healthcare providers." Hawkins also said the U.S. must maintain and grow the reach of both Medicaid and the State Children's Health Insurance Program (SCHIP) that are "fast becoming the only affordable sources of health coverage for low-income - - and even moderate income -- Americans." He also said initiatives aimed at supporting the work of the U.S.-Mexico Border Health Commission need more support, and cited NACHC's support for pending legislation in the House and Senate, the Border Health Security Act (H.R. 5412, S. 2825), that "would continue the work of the Commission, while also significantly improving the health of border communities, and -- I note -- would also stimulate the development of more health centers along the border." For a full text of the Dan Hawkins speech on Border Health visit http://www.nachc.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Independence Holding Company Announces Communications Toolkit for HR Professionals; Turnkey Short Term Medical Insurance Now Available WASHINGTON--(BUSINESS WIRE)--June 26, 2006--Independence Holding Company (NYSE: IHC) today announced the availability of a new turnkey marketing program designed to help human resource (HR) professionals introduce employees to short term health insurance. Secure STM, IHC's short term medical insurance program, underwritten by Standard Security Life Insurance Company of New York, is being introduced at the Society for Human Resource Management's Annual Conference & Exposition in Washington, D.C., June 25-28, 2006. Short term medical insurance is ideal for bridging the gap between permanent benefits for new employees who are not yet eligible for the company-sponsored health plan, or employees who undergo a COBRA qualifying event and are seeking an alternative to costly COBRA coverage. It is also a viable option for individuals with other short term insurance needs, such as people who are between jobs, people who are recently divorced and no longer on their spouse's policy, temporary or seasonal employees, and recent high school or college graduates who are no longer covered by their parents' policy. www.securestm.com www.Independenceholding.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Leading Health Insurer Teams with Local Doctor/Hospital Network to Offer New Health Plan with Potential of Lowering Cost ALLENTOWN, Pa.--(BUSINESS WIRE)--June 26, 2006--Valley Preferred, a community partnership of doctors and hospitals, has allied with HealthAmerica(R) and HealthAssurance(R) (HealthAmerica), one of Pennsylvania's leading health insurance companies, to create a new regional health coverage plan that comes with the potential for lower cost. www.healthamerica.cvty.com www.firsthealth.com www.valleypreferred.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Clyde & Co Continues Global Expansion With Entry Into the US LONDON, June 27 /PRNewswire/ -- Clyde & Co today announced the firm's entry into the US legal market by opening offices in New York and Los Angeles. This follows the firm's expansion into China with an office in Shanghai in February of this year and Moscow last July. The US offices will initially focus on all aspects of aviation and aerospace and we have a strong dispute resolution capability. We are also committed to expand in Clyde & Co's core areas of insurance, transportation, international trade and energy. www.clydeco.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Pre-Paid Legal Announces Completion of $80 Million Financing ADA, Okla., June 26 /PRNewswire-FirstCall/ -- Pre-Paid Legal Services, Inc. (NYSE:PPD) announced that it has received financing from Wells Fargo Foothill, Inc. ("Wells Fargo") for $80 million of senior, secured financing consisting of a $75 million five year term loan facility (the "Term Facility") and a $5 million five year revolving credit facility (the "Revolving Facility"). The proceeds will be used primarily to fund a 1 million share tender offer, to refinance approximately $15.3 million in existing bank indebtedness and to fund further share repurchases. The Term Facility is fully funded and provides for a five-year maturity and amortizes in monthly installments of $1.25 million, with interest on the outstanding balances under the Term Facility and the Revolving Facility payable, at our option, at a rate equal to Wells Fargo base rate plus 150 basis points or at the LIBO Rate plus 250 basis points. We expect to be able to repay the facilities with cash flow from operations. We expect to commence a one million share fixed-price self-tender offer the first week of July 2006 at $35.00 per share with an anticipated August 2, 2006 closing date. www.prepaidlegal.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Kingsway announces US$175 million credit facility TORONTO, June 26 /PRNewswire-FirstCall/ - (TSX:KFS, NYSE:KFS) Kingsway Financial Services Inc. announced that it has entered into a US$175 million 3 year revolving credit facility which matures in June 2009 with a syndicate of three banks. This new credit facility replaces the existing Cdn$150 million 364 day revolving credit facility, and contains similar terms, conditions and financial covenants to the facility it replaces. In the new facility, The Bank of Nova Scotia acted as Administrative Agent, Co-Lead Arranger and Bookrunner, LaSalle National Bank as Syndication Agent and Co-Lead Arranger, and Royal Bank of Canada acted as Documentation Agent. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. AAA Michigan and Michigan Credit Union League Announce Long-Term Joint Marketing Agreement DEARBORN, Mich., June 26 /PRNewswire/ -- AAA Michigan and CUcorp, the wholly-owned subsidiary of the Michigan Credit Union League (MCUL), have entered into a long-term, joint marketing agreement that will provide members of both organizations with exclusive products and services ranging from consumer loans to auto insurance.Under the terms of the agreement, AAA Michigan will serve as the preferred provider of AAA membership, travel, insurance and investment services to members of Michigan credit unions. Likewise, Michigan credit unions will be showcased for the 1.6 million AAA members in the state as the preferred solution for deposit products, consumer loans, mortgage loans and other depository institution services. Www.aaa.com www.mcul.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. The Financial Services Roundtable Improves Quality of Communications with High-End Audio/Video-Teleconferencing Solution from AVS CHANTILLY, Va.--(BUSINESS WIRE)--June 27, 2006-- Audio Video Systems, Inc., (AVS) a leading provider of custom audio/video (A/V) design-build and systems integration services for government and commercial organizations, today announced that The Financial Services Roundtable, a Washington, D.C.-based trade association that serves as the premier forum for financial services industry leaders to discuss critical public policy issues, is communicating and collaborating more effectively with its member companies following AVS' comprehensive re-design of the organization's A/V teleconferencing capabilities, briefing rooms, and display systems. www.fsround.org www.avsinc.net Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. LightEdge Managed Backup Solution Manages Data Risk for Omaha-based MarketSphere Consulting; Midwest Consultancy Enables Healthcare Client to Protect Data Integrity While Meeting HIPAA Compliance DES MOINES, Iowa--(BUSINESS WIRE)--June 27, 2006--LightEdge Solutions, Inc., a leader in converged data networking, voice-over-Internet-protocol (VoIP) and managed IT business services, today announced the commercial availability of its managed backup solution, providing businesses a structured risk management platform and maximum availability for mission-critical data. www.lightedge.com www.marketsphere.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Leading Financial Institutions Bank on Vignette; Independent Research Firm Suggests Financial Services Companies Will Increase Investment in Web Presence in 2006 AUSTIN, Texas--(BUSINESS WIRE)--June 27, 2006--Wachovia Bank and Skipton Building Society are leveraging Vignette (NASDAQ:VIGN), a leading provider of enterprise content management solutions, to deliver custom content to customers and financial advisors worldwide. Vignette's ECM solutions, which include Next Generation Web Presence, Imaging and Workflow and Collaborative Document and Records Management, are currently deployed at more than 250 financial institutions worldwide including half of the Global 100 financial services companies. www.vignette.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Generali Slovenia Deploys Metastorm BPM to Improve Insurance Renewals LONDON, June 27 /PRNewswire/ -- Metastorm, a leading provider of Business Process Management (BPM) software for modeling, automating, integrating, and improving both human and system-based processes, today announced its software has been successfully deployed at Generali Insurance in Slovenia, a subsidiary of the Generali Group, one of Italy's largest insurance giants and a top global insurance firm. In just three months, Generali has implemented Metastorm BPM(TM) to automate and manage its car insurance renewal process along with a variety of back office processes that support these procedures. www.metastorm.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Independent Insurance Agents, Brokers of NY, Others Frustrated with NY Senate Lack of Support for Coastal Residents (DeWitt, New York, June 26, 2006) — The New York State Legislature failed to help ease a growing homeowners insurance crisis in the downstate region, according to the Independent Insurance Agents & Brokers of New York, Inc. With insurance companies such as Allstate, MetLife and others restricting and even cancelling homeowners coverage in Westchester County, New York City and Long Island, the New York Property Insurance Underwriting Association can help those property owners in the affected areas. In effect since 1968, NYPIUA provides fire, vandalism and other coverage to those who cannot obtain them in a standard market. However, the state’s lawmakers only extend NYPIUA’s authority by one year at a time. Before adjourning for the summer, the Legislature could have passed a measure that would have made NYPIUA permanent, but the Senate was unable to agree with the Assembly’s version. “The financial markets do not take NYPIUA seriously due to its temporary status,” said Sharon H. Emek, Ph.D., IIABNY chair and a managing director of CBS Coverage Group in New York City. “Because of its dependence on the New York State Legislature, NYPIUA has lapsed in the past, making it unable to obtain certain financial commitments.” For years, NYPIUA has been a political hostage between the Republican-controlled New York Senate and the Democrat-led Assembly. A bill to make NYPIUA permanent recently passed the Assembly, but was unable to survive obstacles in the Senate. The Legislature concluded its session on June 23, with a one-year extension of NYPIUA. “We are disappointed with a number of senators whose short-range views on this crisis will eventually hurt homeowners in the downstate region,” said Emek. The Chair of New York’s oldest and largest insurance trade association did praise State Senators Kenneth P. LaValle (R-Suffolk) and John J. Flanagan (R-Suffolk) for their support to curb the crisis. Besides IIABNY, another insurance trade group, the Professional Insurance Agents of New York played an active role in attempting to make NYPIUA permanent. The New York State Association of Realtors has also pushed for this legislation. “We could have used more coordinated support from the insurance companies on this issue, especially since they have contributed to the homeowners market destabilization,” added Emek. “This is becoming a national problem, as reported in recent articles in Forbes, the Washington Post and other media.” Emek referred to a widely reported Associated Press story, written by Rukmini Callimachi, which details homeowner policy cancellations of residents in coastal areas throughout the United States. As of this writing, the article was available on Forbes’ Website. To view the story, visit http://www.forbes.com/entrepreneurs/feeds/ap/2006/06/22/ap2834648.html Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Benefit Coordinators Corporation (BCC) announces the launch of its revitalized website. Benefit Coordinators Corporation (BCC), a leading national provider of outsourced solutions connecting human resources, benefit management and specialty administrative services, announced a new online initiative today. An upgraded, freshly designed website strengthens the company’s online presence and enhances their ability to serve employer clients and respond to the growing needs of their broker and carrier partners. www.BenXcel.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. FULL U.S. INDUSTRY INVOLVEMENT REQUIRED ON INTERNATIONAL SOLVENCY REGULATION, ACLI SAYS Washington, D.C. (June 26, 2006) – The American Council of Life Insurers’ Board of Directors last week unanimously approved a resolution calling for the ACLI to actively engage with the National Association of Insurance Commissioners (NAIC) and the International Association of Insurance Supervisors (IAIS) regarding international solvency issues. The vote aimed to ensure the perspective of the entire life insurance industry and its policyholders are strongly considered as U.S. and international regulators attempt to develop international solvency standards. In particular, ACLI aims to ensure that efforts to enact sustainable principle-based reserving regulations in the 50 states are not negatively impacted by efforts to harmonize international solvency requirements. www.acli.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. AIA COMMENDS MICHIGAN GOV. GRANHOLM FOR VETOING MOTORCYCLE HELMET REPEAL BILL LANSING, MI, June 26, 2006– Today, the American Insurance Association commended Michigan Gov. Jennifer Granholm (D) for vetoing legislation that would have repealed the state’s 37-year old, life-saving all-rider motorcycle helmet law. SB 297 would have made wearing a motorcycle helmet optional for those 21 and over, and would have exacted a terrible toll on Michigan’s citizens in lost lives, more severe traffic crash injuries and increased medical costs. In fact, according to a 2004 study by the Michigan State Police Office of Highway Safety Planning, it was estimated that every year 22 more people would have died and more than 740 would have been injured if SB 297 were allowed to become law. “Gov. Granholm recognized that repealing this critical safety measure would be a severe blow to the safety of those traveling on Michigan’s roadways,” said David Snyder, AIA vice president and general counsel. “Repeal of this law is advocated by those claming to support personal choice and freedom, but the fact is that by preventing unnecessary injuries and deaths, helmet laws actually enable people to fully exercise their most precious constitutional freedoms.” “Helmet laws do not restrict travel choices and do not infringe on the ability to ride motorcycles,” stated Snyder. “Helmet laws only require that when you ride a motorcycle you take a few necessary precautions – just like wearing seat belts in cars.” www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Industrial Alliance to buy brokerage FundTrade TORONTO, June 27 (Reuters) - Industrial Alliance Insurance and Financial Services Inc. (IAG.TO:) said on Tuesday it will buy mutual fund brokerage firm FundTrade, but didn't disclose the financial terms of the deal. The combined operations will administer about C$9 billion in assets, the company said. Industrial Alliance said FundTrade operations will be integrated with FundEX Investments Inc., a mutual fund brokerage firm in which Industrial Alliance holds a 91.75 percent share. ($1=$1.12 Canadian) © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. GE sees $2.8 bln in security sales by 2009-exec Tue Jun 27, 2006 2:17pm ET - NISKAYUNA, New York (Reuters) - General Electric Co. (GE.N:) expects to boost security-related sales to $2.8 billion by 2009 from an expected $2 billion in 2006, its top security executive said on Tuesday. "When you think of the infrastructure build going on in India and China, that is going to create huge demand," said Louis Parker, president and chief executive officer of GE Security at GE's Global Research Center, located in Niskayuna, New York, about 170 miles north of New York City. GE's broad portfolio of businesses ranges from jet engines to commercial finance to NBC Universal media. The security operations fit within its industrial operating segment, which reported $32.63 billion in revenues last year, 21.8 percent of the corporate total. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. PIA National Announces Call for Nominations WASHINGTON, June 27 /PRNewswire/ -- The National Association of Professional Insurance Agents (PIA National) has announced a call for nominations for three prestigious national awards. The 2006 PIA National Company Award of Excellence, Company Representative of the Year and the inaugural Managing General Agency of the Year awards will be presented during a luncheon ceremony on September 9, 2006, held in conjunction with the association's fall 2006 meetings in Savannah, Georgia. www.pianet.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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