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1. IRC Estimates More Than 14 Percent of Drivers Are Uninsured MALVERN, Pa., June 28 /PRNewswire/ -- Across the United States, if someone is injured in an auto accident, the chances are about one in seven that the at-fault driver is uninsured. According to a recent Insurance Research Council (IRC) study, the estimated percentage of uninsured motorists increased nationally from 12.7 percent in 1999 to 14.6 percent in 2004. However, the magnitude of the uninsured motorists problem varied widely from state to state. The recently released study, Uninsured Motorists, 2006 Edition, examines trends from 1999 to 2004 in the percentage of uninsured drivers by state. In 2004, the five states with the highest uninsured driver estimates were Mississippi (26 percent), Alabama (25 percent), California (25 percent), New Mexico (24 percent), and Arizona (22 percent). The five states with the lowest uninsured driver estimates were Maine (4 percent), Vermont (6 percent), Massachusetts (6 percent), New York (7 percent), and Nebraska (8 percent). IRC estimates the uninsured driver population using a ratio of insurance claims made by individuals who were injured by uninsured drivers to claims made by individuals who were injured by insured drivers. The study contains recent statistics by state on uninsured motorists claim frequency, bodily injury claim frequency, and the ratio of uninsured motorists to bodily injury claim frequencies. "Even though most states require drivers to maintain insurance, the problem of uninsured motorists persists," explained Elizabeth A. Sprinkel, senior vice president of the IRC. "Responsible drivers who purchase insurance end up paying for injuries caused by uninsured drivers." The IRC study examined data collected from eleven insurers, representing approximately 58 percent of the private passenger auto insurance market in the U.S. For more detailed information on the study's methodology and findings, contact Elizabeth Sprinkel by phone at (610) 644-2212, ext. 7568; by fax at (610) 640-5388; or by e-mail at irc@cpcuiia.org; or visit the IRC's Web site at http://www.ircweb.org . Copies of the study are available for $100 each in the U.S. ($115 elsewhere) postpaid from the Insurance Research Council, 718 Providence Rd., Malvern, Pa. 19355-0725. Phone: (610) 644-2212, ext. 7569. Fax: (610) 640-5388. Estimated Percentage of Uninsured Motorists by State in 2004 State Uninsured State Uninsured State Uninsured Mississippi 26% Oklahoma 15% Virginia 10% Alabama 25 Rhode Island 14 West Virginia 10 California 25 Wisconsin 14 Pennsylvania 10 New Mexico 24 Arkansas 14 South Carolina 10 Arizona 22 Hawaii 13 Georgia 10 Tennessee 21 Kansas 13 New Jersey 9 Dist. of Columbia 21 Montana 12 Utah 9 Florida 19 Iowa 12 Idaho 9 Washington 18 Oregon 12 South Dakota 9 Nevada 17 Missouri 12 New Hampshire 9 Michigan 17 Maryland 12 North Dakota 9 Texas 16 Connecticut 12 North Carolina 8 Illinois 16 Kentucky 12 Nebraska 8 Indiana 16 Delaware 12 New York 7 Ohio 15 Wyoming 11 Massachusetts 6 Alaska 15 Minnesota 10 Vermont 6 Colorado 15 Louisiana 10 Maine 4 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. US House shores up flood insurance program By Susan Cornwell WASHINGTON, June 27 (Reuters) - The U.S. House of Representatives passed on Tuesday legislation to bolster the U.S. flood insurance program, struggling under a load of debt after last year's horrendous hurricanes. The measure raises the program's borrowing authority to $25 billion from $20.8 billion, while requiring the agency that oversees the program, the Federal Emergency Management Agency, to tell Congress how it will repay the funds it borrows. Rep. Mike Oxley, chairman of the House Financial Services Committee, said over 225,000 policyholders had already filed a claim resulting from Hurricane Katrina and other storms that hammered the U.S. Gulf Coast in 2005. "When all is said and done, the NFIP (National Flood Insurance Program) will need $25 billion to pay all those claims," said Oxley, an Ohio Republican. "And that does not take into account any storms we have before hurricane season ends for 2006," Oxley declared during debate on the bill, which by coincidence took place as Washington faced its own flooding from torrential rains. The measure passed by a margin of 416 to four. With another hurricane season under way, the bill seeks to shore up the flood insurance program by raising the premiums charged for nonresidential property and vacation homes. A similar bill that has passed a Senate committee would also raise rates for properties that have been flooded repeatedly. The House bill requires FEMA to modernize the nation's flood maps, and triples the amount of fines that can be levied on lending institutions that do not enforce flood insurance purchase requirements for mortgages in flood-prone areas. The flood insurance program covers more than 4.7 million policies for homes and businesses and is allowed to borrow from the U.S. Treasury to cover claims not covered by premiums. Unlike the House measure, the bill in the Senate would remove the flood insurance program's obligation to repay the Treasury for the borrowings for the 2005 hurricanes. That bill has not yet gone to the chamber's floor. Ultimately both chambers will have to approve the same terms. Usually the flood insurance program collects $2.2 billion a year in premiums and fees, and until recently it paid out about $1 billion in claims annually. After Katrina, Congress raised the borrowing authority three times previously. The Bush administration said it supported passage of the House bill, but criticized provisions that would increase the scope of coverage offered by the flood insurance program, saying this could encourage development in high-risk areas. The bill would increase maximum coverage limits for flood insurance policies from $225,000 to $335,000 for a single family dwelling. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Most employers cutting retiree health care: study Wed Jun 28, 2006 12:35pm ET - By Kim Dixon - CHICAGO (Reuters) - Most U.S. employers are planning to further scale back health benefits offered to retirees, as companies struggle with the upward march in the cost of medical care and weigh increased contributions from government's Medicare program, a survey found. Ninety-five percent of the mostly Fortune 500 companies polled expect to further restrict their retiree health plans over the next five years, and 14 percent plan to stop providing coverage entirely, the survey of 163 companies by benefits consultants Watson Wyatt found. Employers have been exiting the retiree health business for a decade-and-a-half, amid rapid inflation in the cost of health care and increasing mobility of workers. But some feared the pace would quicken amid recent changes that boost benefits provided by Medicare, the government's health insurance program for the nation's 43 million elderly and disabled people. "There is definitely more change in the air now that Medicare Part D has come into play. There are fewer companies that are not planning on doing anything at all," said Cara Jareb, director of retiree medical at Watson Wyatt. "The willingness to eliminate the benefit is clearly increasing." Changes in the Medicare program include adding prescription drug benefits, known as Medicare Part D. Experts feared that with a richer government benefit, employers would be more likely to stop offering coverage. About a third of U.S. employers offered current workers retiree coverage in 2005, down from about two-thirds in 1988, according to a recent study by the nonprofit Kaiser Family Foundation. According to Standard & Poor's, plans for retiree benefits at S&P 500 companies <.SPX>, excluding pensions, were underfunded by $321 billion, meaning promises to retirees are only 22 percent funded. EMPLOYERS WEIGH EXITING About three-quarters of U.S. companies polled are accepting a Medicare subsidy from the government intended to keep employers in the business of helping workers defray health costs when they retire. But most are skimming the benefits they do offer. A quarter of employers are tightening eligibility for current workers, and a similar amount are offering more expensive plans. About 40 percent of employers said they believed the best way to solve their retiree health cost problem is to exit it altogether, although most continued to offer benefits because of practical considerations, the study found. The same amount, about 40 percent, said taking the government subsidy is the best way to keep costs down. Jareb said it showed that even though companies might think exiting the business would help with costs, most are unlikely to do it at this point. "In essence the numbers indicate that -- whether due to employee relations, benefits philosophy or collective bargaining -- exiting retiree heath is not a viable option for the majority of employers" the study said. (Additional reporting by Emily Chasan in New York and Joanne Kenen in Washington) © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Passage of National Flood Insurance Legislation Critical to Homeowners: NAR Contact: Mary Trupo of the National Association of Realtors(r), 202-383-1007, mtrupo@realtors.org WASHINGTON, June 28 /U.S. Newswire/ -- The Flood Modernization and Reform Act (H.R. 4973) passed by the House of Representatives yesterday will strengthen the protection of property owners against flood related disasters and provide flood insurance to millions of homeowners across the country, the National Association of Realtors(r) said today. "Floods can strike any place and at any time, and in the wake of the most destructive hurricane season in nearly a century and the recent heavy rains experienced over much of the Midwest and the East Coast, this legislation is critical. NAR strongly supports the provisions in the bill that emphasize the importance of accurate and current flood maps and increase the NFIP (National Flood Insurance Program) borrowing authority to pay existing claims. Meeting contractually obligated payments to policyholders is paramount," said Thomas M. Stevens of Vienna, Va., president of NAR. NAR has backed the provisions for increasing premiums on repetitive loss properties that have a significant impact on NFIP, increasing coverage limits, reducing the waiting period for policies to become effective, creating a national levee inventory, and requiring FEMA to report to Congress on the financial status of the NFIP. "These provisions will strengthen the NFIP over the long-term," said Stevens. In an earlier letter to the House Financial Committee, Stevens said that non-primary residences should be given the same consideration as primary residences and should not be charged full risk premiums unless they are a repetitive loss property. NAR continues to have reservations over the provision in H.R. 4973 that would eliminate subsidies on non-primary residences and business properties. "NAR also is concerned with Rep. Scott Garrett's (R- N.J.) amendment, which was adopted in Tuesday's hearing. We believe the result will be that owners of neighboring primary residences, with identical risk of flooding, will be paying different rates for flood insurance. This presents a truly unfair and possibly discriminatory situation," said Stevens. "Overall, we are very pleased with the actions taken today by the House and believe this legislation will help protect homeowners," says Stevens. Information about NAR is available at http://www.REALTOR.org. http://www.usnewswire.com/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. U.S. Surgeon General Report: Any Secondhand Smoke Exposure Unhealthy Contact: Naomi Gitlin for the Illinois Coalition Against Tobacco, 773-929-1000 or 773-771-1671 (mobile); Kathy Drea of the American Lung Association of Illinois, 217- 787-5864; Kevin Tynan of the American Lung Association of Metropolitan Chicago, 312-628-0225 or 312-659-6884 (mobile) SPRINGFIELD, Ill., June 27 /U.S. Newswire/ -- The Illinois Coalition Against Tobacco today urged communities throughout Illinois to enact comprehensive local clean indoor air laws, in light of findings from the nationwide report, The Health Consequences of Involuntary Exposure to Tobacco Smoke: a Report of the Surgeon General - 2006. Additionally, Illinois Governor Rod Blagojevich recently amended the state's Indoor Clean Air Act. "This report is a wake-up call to Illinois communities to demand comprehensive, 100 percent smoke-free laws from their local officials," said Diana Hackbarth, R.N., Ph.D. and chairwoman of the Illinois Coalition Against Tobacco (ICAT). Today's report, 20 years after the first U.S. surgeon general's report on the dangers of secondhand smoke, finds that secondhand smoke is even more dangerous than previously thought. The report's six major findings relate to toxicology, health consequences and how best to control exposure to secondhand smoke: -- 1. The scientific evidence that secondhand smoke causes serious diseases, including lung cancer, heart disease and respiratory illnesses such as bronchitis and asthma, is massive and conclusive. There is no longer a scientific controversy or any scientific debate. -- 2. There is no risk-free level of exposure to secondhand smoke. -- 3. Exposure to secondhand smoke has substantial and immediate adverse effects on the cardiovascular system. -- 4. Establishing smoke-free workplaces is the only effective way to ensure that secondhand smoke exposure does not occur in the workplace. -- 5. Smoke-free workplace policies are effective in reducing secondhand smoke exposure. Separating smokers from nonsmokers in the same air space, cleaning the air and ventilating buildings are not effective at eliminating exposure of nonsmokers to secondhand smoke. -- 6. Smoke-free policies and regulations do not have an adverse economic impact on the hospitality industry. The findings in the surgeon general's report clearly demonstrate that the scientific evidence linking secondhand smoke to lung cancer, heart disease and respiratory illness is indisputable," said Harold P. Wimmer, president and CEO, American Lung Association of Illinois. "The report shows that there are no safe levels of exposure to secondhand smoke and no ventilation systems that can completely eliminate secondhand smoke exposure," he said. For more information, visit http://www.ilcat.org - For more information on the Surgeon General's report, visit http://www.surgeongeneral.gov/library/secondhandsmoke/ http://www.usnewswire.com/ /© 2006 U.S. Newswire 202-347-2770/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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Benefits Marketing Mania 2006! 6. INSURANCE NEWSLINK Articles Recent articles added to INSURANCE NEWSLINK, the worldwide, strategic concise intelligence database of over 27,000 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
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. FIRST-QUARTER 2006 UNDERWRITING PROFITS AND GROWTH IN SURPLUS HELP INSURERS PREPARE FOR HURRICANE SEASON JERSEY CITY, N.J., June 28 — The U.S. property/casualty industry’s net gain on underwriting rose $1.4 billion, or 20.8 percent, to $8.4 billion in first-quarter 2006 from $6.9 billion in first-quarter 2005. The combined ratio — a key measure of losses and other expenses per dollar of premium — improved to 91.2 percent from 92.2 percent. The $8.4 billion net gain on underwriting is the largest experienced any quarter since the start of records extending back to 1986. Similarly, the 91.2 percent combined ratio for first quarter 2006 is the best for any quarter since 1986. The industry’s consolidated surplus — its assets minus its liabilities — rose $13 billion, or 3 percent, to $440.1 billion at March 31, 2006, from $427.1 billion at December 31, 2005, according to ISO and the Property Casualty Insurers Association of America (PCI). Much of the increase in underwriting profits is directly attributable to a decline in first-quarter weather-related catastrophe losses. And despite higher profits on underwriting, the industry’s net income after taxes fell $0.7 billion, or 3.8 percent, to $16.7 billion in first-quarter 2006 from $17.4 billion in first-quarter 2005, as investment income declined and federal income taxes increased. The ISO and PCI industry figures for first-quarter 2006 are consolidated estimates for all private property/casualty insurers based on reports that account for at least 96 percent of all business written by private U.S. property/casualty insurers. Catastrophe losses fell $0.7 billion, or 30.7 percent, to $1.5 billion in the first three months of this year from $2.1 billion in the first three months of 2005, according to ISO’s Property Claim Services unit. “The decline in catastrophe losses accounts for six-tenths of the improvement in the industry’s combined ratio in first-quarter 2006,” said Gregory Heidrich, the PCI’s senior vice president for policy development and research. “With year-to-date catastrophe losses as of June 27 totaling $4.5 billion, or $1.4 billion more than the $3.1 billion in catastrophe losses in first-half 2005, we already know that underwriting results for the first-half of this year will not benefit from a decline in catastrophe losses,” added Heidrich. “And we have to brace ourselves for more bad news on catastrophe losses as the year plays out. While weather forecasts are subject to considerable uncertainty, meteorological experts ranging from Dr. Bill Gray and his team at Colorado State University to the National Oceanic and Atmospheric Administration and the Tropical Storm Risk Consortium are projecting that this hurricane season will be far worse than average,” said Michael R. Murray, ISO assistant vice president for financial analysis. “On average, there are fewer than 10 named storms each year, but the experts are saying there will be somewhere between 13 and 17 this hurricane season. And Dr. Gray’s team says there is an 82 percent chance that an intense hurricane — category 3 or higher — will hit the U.S. this year. These are very bad odds, given that the average for the last century is 30 percentage points lower at 52 percent,” added Murray. “Other reasons to expect the news on catastrophe losses to get worse and underwriting results to deteriorate include traditional seasonal patterns,” said Heidrich. “During the 57 years from the start of Property Claim Services’ records in 1949 to 2005, more than half of all catastrophe losses — 53.5 percent — have occurred in the third quarter. And in nine of the past 10 years, full-year underwriting results were worse than first-quarter results.” Robert P. Hartwig, Ph.D., CPCU, Senior Vice President & Chief Economist, Insurance Information Institute, 212.346.5520, bobh@iii.org, A link to Dr. Bob Hartwig's commentary can be found here: http://www.iii.org/media/industry/financials/2006firstquarter/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. UnumProvident New Disability Product Helps Answer Industry Demand for Employee Choice CHATTANOOGA, Tenn.--(BUSINESS WIRE)--June 28, 2006--UnumProvident, (NYSE:UNM) the leading provider of income protection insurance in the United States and the United Kingdom, announces its newest and most flexible disability product offering - Select income protection insurance. Select income protection is an innovative group offering that gives employers and employees control over some specific policy features. With the steady rise in the cost of healthcare and the need to recruit and retain talented workers, employers are finding that the "one-size-fits-all" approach to benefits is neither cost-effective nor employee friendly. "Employers are looking beyond traditional benefits packages in their efforts to control cost, and UnumProvident has a long-standing history of introducing products that respond to these needs," said Kevin McCarthy, executive vice president of risk operations. "Select income protection gives employees and plan administrators more control over important aspects of their policies to help address specific workplace benefits issues." The Select income protection product will be available with short-term or long-term coverage options. Major features of Select income protection insurance products include:
UnumProvident began selling the new Select income protection product in June, with the earliest policy effective date of Sept. 1, 2006. Availability of Select income protection insurance varies from state to state, depending on regulatory approval. Additional products in the Select line include Educator Select, and Select short term disability, which will be available in August. For more information, visit www.unumprovident.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. North Pointe Holdings Corporation Reports Increased Assessment From Florida Insurance Guaranty Association SOUTHFIELD, Mich., June 28 /PRNewswire-FirstCall/ -- North Pointe Holdings Corporation (Nasdaq: NPTE) today announced that it has been assessed by the Florida Insurance Guaranty Association, Inc. (FIGA), which will result in a $1.4 million pre-tax ($913,000 after-tax) expense in the second quarter of 2006. The assessment was based on two percent of the Company's $69.1 million direct premiums written in the State of Florida in 2005 and is due in July 2006. The assessment resulted from the liquidation of the POE Financial Insurance Group including Southern Family Insurance Company, Atlantic Preferred Insurance Company and Florida Preferred Property Insurance Company. Created by the Florida Legislature, FIGA services Florida policyholders' claims of insurance for companies that have become insolvent and are ordered into liquidation. FIGA can assess other property and casualty insurance companies writing in Florida in order to fund deficits that may exist within the insolvent companies. James Petcoff, chairman and chief executive officer, commented, "As previously announced, we anticipate reducing our Florida commercial policy count by approximately 40 percent, and our total Florida commercial insurable value by almost 70 percent. This latest assessment for 2005 is directly related to the recent liquidation of three Florida insurance carriers." www.npte.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Fidelity National Financial, Inc. Announces the Acquisition of all the Flood Insurance Policies of Southern Family Insurance Company JACKSONVILLE, Fla., June 28 /PRNewswire-FirstCall/ -- Fidelity National Financial, Inc. (NYSE: FNF), a Fortune 500 provider of outsourced products and services to a variety of industries, today announced that its wholly-owned subsidiary Fidelity National Property and Casualty Insurance Company has received approval from the Circuit Court of Florida to purchase all of the existing flood insurance policies of Southern Family Insurance Company through the Department of Financial Services of the State of Florida. The Fidelity National Property and Casualty Insurance Group is the largest writer of flood insurance through the National Flood Insurance Program. The transaction involves more than 63,000 flood insurance policies originated through a network of Florida independent agents in conjunction with the National Flood Insurance Program. Under the program, the Federal Government makes flood insurance available to owners and renters of residential and commercial properties as financial protection against flood losses and maintains the underwriting risk associated with potential claims. Borrowers are required by law to purchase flood insurance to obtain financing associated with a residential or commercial structure located in a federally designated Special Flood Hazard Area. www.fidelitynationalflood.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
11. Willis Re Broadens Market Support For Political Risk Reinsurance New York, NY, June 27, 2006 – Willis Group Holdings (NYSE: WSH), the global insurance broker, has published a new political risk pricing paper today looking to encourage the injection of capacity into the political risk reinsurance market. Produced by Willis Re Inc and Willis Analytics, the paper is entitled: “Political Risk Reinsurance Pricing – A Capital Market Approach”. The world today is increasingly exposed to the risk of political will and is therefore demanding greater political risk protection, yet conversely the supply of such protection is declining. This objective reinsurance pricing methodology helps to assess the risk of writing large political risk reinsurance portfolios and therefore hopes to broaden the support from traditional reinsurance markets and attract risk capital from the capital markets. Key findings of the paper: · The methodology allows political risk insurance and reinsurance carriers to evaluate their own portfolios for overall profitability and capital requirements in order to support the on-going business. · Evidence to support the view that political risk is a business that provides healthy returns whilst also allowing the capital management of aggregate exposures. · This approach provides organizations involved in political risk insurance and reinsurance with a solid foundation for making strategic and business decisions. Athula Alwis, one of the co-authors of the paper said: “We very much hope that this new methodology will help to attract backing from both the underwriting community and the capital markets in supplying reinsurance capacity for political risk carriers.” www.willis.com. To read the full paper, please go to: http://www.willis.com/Extras/Publications.aspx Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Max Re Capital Ltd. Announces Its Inclusion In the New NASDAQ Global Select Market HAMILTON, Bermuda, June 27 /PRNewswire-FirstCall/ -- Max Re Capital Ltd. (Nasdaq: MXRE) (BSX: MXRE BH) today announced that it is included in the new NASDAQ Global Select Market. The NASDAQ Global Select Market has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements. Prior to the change, the Company had been listed on the NASDAQ National Market. Beginning July 3, NASDAQ-listed companies will be classified under three listing tiers -- NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market. NASDAQ also plans to launch indexes based on these new tiers. www.nasdaq.com/GlobalSelect Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Swiss Re Economists: Global Growth Is Solid, U.S. Is Close to Trend Growth; Biggest Risk to Outlook Is Still Oil Prices NEW YORK, June 27 /PRNewswire/ -- Swiss Re's Chief Economist today said that inflation concerns will cause the Fed to raise the federal funds rate to 5.5 percent. Additionally, at the company's Mid-year Economic and Insurance Industry teleconference, Swiss Re's Senior Economist, Thomas Holzheu, asserted that despite record losses, the insurance industry posted solid profits in 2005. "The Fed will most likely raise rates this week and again in August by 25 basis points because inflation indicators are rising," said Kurt Karl, Chief Economist, Swiss Re. "There is a chance that we will get 50 basis points this week, with a clear indication of the end of tightening for now." Karl also noted: -- Inflation is rising -- core CPI inflation was 2.4 percent year-over-year in May, up from 2.1 percent in March, and it will probably rise further. Accelerating wage gains, rising capacity utilization, a weak dollar and high oil prices are all contributing to higher inflation. -- Economic growth is slowing, but not dramatically, and real GDP growth should be close to 3 percent in the second half of this year and next year, about where the Fed would like to see it. -- Next year, if growth is close to 3 percent and core inflation eases back to 2 percent, as expected, the Fed will likely ease, lowering the federal funds rate back to 5 percent. -- The yield on the 10-year Treasury note should remain close to the fed funds rate -- there is still a lot of liquidity in the world and this will keep the yield curve flat. An inversion of fed funds and 10-year T-note is possible, but should be temporary because the economy is in solid shape. Regarding the property and casualty insurance business, Thomas Holzheu, Swiss Re's senior economist for that business sector, said, "2005 was dominated by record losses from hurricanes Katrina, Rita, and Wilma. Nevertheless, the industry showed resilience. Underwriting discipline and the benefits of reinsurance preserved the industry's surplus and profitability. Going forward, the realization of higher catastrophe exposures increases capital requirements and property premium rates. Among Holzheu's observations: -- Insurers and reinsurers worldwide bore a record USD 83 billion of total insured property cat losses, with Hurricane Katrina alone estimated at USD 45 billion. US P&C insurers are expected to pay USD 58 billion losses for last year's natural catastrophes. -- Despite the unprecedented cat losses, the 2005 combined ratio was 101 percent and is expected to improve in 2006. -- The industry's ROE for 2005 was 11.6 percent; for 2006, the ROE is likely to be around 11 percent . -- In the aftermath of the hurricane season, the pace of premium growth is likely to pick up slightly as commercial property prices firm. PLEASE NOTE: Presentations and other relevant information are available on Swiss Re's Web site, http://www.swissre.com. A replay of the teleconference is also available on the website. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. LOMA Aligns With SkillSoft to Expand Online Course Offerings ATLANTA, June 27 /PRNewswire/ -- LOMA, the leading association of the international insurance and financial services industry, has formed an alliance with SkillSoft, a leading provider of enterprise e-Learning, to offer online courses focused on improving business skills and professional effectiveness. LOMALearn Online, will offer a wide array of SkillSoft courses covering areas such as business strategy and operations, communication, management and leadership, professional effectiveness, project management and sales and customer service. www.lomalearn.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Research Highlights Healthcare Cost Pressures on Texas Employers; Valued Benefits at Risk in the Workplace Wellness Programs and Consumer-Directed Healthcare Plans May Be Underutilized Solutions CHICAGO, June 27 /PRNewswire/ -- The vast majority (82 percent) of Texas employers perceive healthcare benefits to be extremely or very important to recruiting and retaining employees, yet a majority also report a significant increase in healthcare costs over the previous year and rank reducing those costs as their top healthcare priority, according to independent research conducted by Opinion Research Corp and sponsored by The Guardian Life Insurance Company of America (Guardian) and Destiny Health. The recent survey of 251 employers in Dallas, Houston, and Austin also revealed that employers are using a variety of strategies to cope with cost pressures, including cutting expenses in other areas of the business, increasing employee co-pays and deductibles, switching healthcare insurance providers, and trimming benefits, while still bearing the brunt of healthcare costs. Employer perceptions about wellness programs and consumer-directed healthcare plans, and their implementation among Texas businesses, indicate these may be underutilized solutions. Fifty-nine percent of employers responding to the survey faced an increase in healthcare costs over the previous year, by an average of 14.7 percent. One in three employers ranked healthcare among their top three business expenses, and 52 percent ranked reducing healthcare costs as their top healthcare priority for 2006. Based on the survey mean, employers are paying $5,800 per employee for annual healthcare benefits. Over the past three years, many Texas employers have had to increase employee co-pays (49 percent of respondents); deductibles (47 percent); and employee contributions to health insurance premiums (44 percent). More than three-quarters investigated alternative health insurance providers, and 49 percent made a change. One in five respondents reduced other spending to offset healthcare costs. Eighteen percent dropped healthcare benefits, and an additional 14 percent considered doing so. Benefits at highest risk included vision, prescription drug, and dental coverage. Seventy-five percent of employers still pay more than 50 percent of employee healthcare costs, and nearly 40 percent of companies pay more than 80 percent of costs -- shares generally consistent with the prior year. "Texas employers are seeking ways to provide the benefits employees value, while rising costs continue to stretch both company and employee resources," said Jim Carlough, Texas Regional Sales Manager for Destiny Health. "What's encouraging here is that finding new solutions is clearly a priority, and the market is only beginning to tap the potential of consumer-directed healthcare and incentive-based wellness programs." www.glic-destiny.com www.guardianlife.com www.destinyhealth.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Argonaut Group's Trident Insurance Announces Environmental Impairment Liability Product SAN ANTONIO--(BUSINESS WIRE)--June 27, 2006--Trident Insurance Services, LLC, a wholly owned subsidiary of Argonaut Group, Inc. (NASDAQ:AGII), announced today an environmental impairment liability product for public entities, public schools and public and private water utilities, waster transfer facilities, and recycling centers. This product features general liability and environmental pollution liability coverage with environmental liability limits available up to $25 million per occurrence/$25 million aggregate. Some of the coverage highlights afforded with this environmental impairment liability product are bodily injury and property damage coverage, on and off site clean-up, and contingent transportation defined as bodily injury, property damage, or clean-up costs as a result of transportation of insured's waste products by a common carrier. www.tridentinsurance.net www.argonautgroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Zacks Analyst Interview Highlights: Partner Re. CHICAGO--(BUSINESS WIRE)--June 28, 2006--Zacks.com releases the latest Analyst Interview. Today's interview is with equity research analyst Ann Northrop, who discusses Partner Re (NYSE: PRE). A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678. Hurricane season is appearing on the horizon once again. What's the forecast for insurance companies? This mostly depends on whether you're talking about primary insurers or reinsurers. In the case of reinsurance stocks, the valuations - particularly price-to-book multiples - have not really expanded since last year's hurricanes. Normally one would expect this to have happened; after Hurricane Andrew in the early 90's, for instance, valuations expanded dramatically. I think this presents some opportunities, but investors should proceed cautiously. Not too long ago, a report came out from a group of meteorologists predicting that is would be a more active than normal hurricane season. For reinsurance companies, pricing has hardened in the catastrophe-prone areas, but not so much outside of these areas. At the same time, the rating agencies have increased capital requirements, so this has managed to offset a bit of the price-hardening. As a response to this, the primary insurers are increasing their retentions, so they are paying a higher rate but insuring less coverage. So what is the overall effect this is having for these reinsurers? These days, a lot of reinsurers don't have the capital to grow and take advantage of the price-hardening in the catastrophe-prone areas. On the other hand, the nature of the insurance business is to diversify, but the price-hardening is only occurring in these select areas. So a good number of reinsurers may see some tough times ahead of them. They need more capital for the rating agencies, and they're also finding it harder to diversify. But aren't they getting more business from the primary insurers due to the current hurricane season trends? Well, as I mentioned, the primary companies are reacting to the higher prices by increasing their retentions - basically buying less reinsurance. They are increasing their excess of loss at a greater point; for instance, hypothetically, a company that would have increased its coverage after $1 million is now doing so after $2 million. This way, they keep their reinsurance costs stable. So there is less demand from the primary companies. However, for the reinsurers, for every given dollar of premium they underwrite they now need more capital, due to the increased capital requirements from the rating agencies. And a lot of these reinsurers don't have enough capital, and they are finding it harder to diversify. This is one reason I like the company Partner Re (NYSE: PRE). It is one of the few reinsurers in a good position to benefit from the price hardening that's going on. We now expect the hardening to continue past the June renewal season and into the January '07 season. But even though this should continue longer than we had expected previously, it will likely only benefit relatively few insurers. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Webcast Alert: Buck's Annual Consumer-Driven Health Care Survey Presenting Survey Results, Best Practices, and Developing Trends STAMFORD, Conn., June 28 /PRNewswire/ -- Buck's Annual Consumer-Driven Health Care Survey: Presenting Survey Results, Best Practices, and Developing Trends What: Buck's Annual Consumer-Driven Health Care Survey Presenting Survey Results, Best Practices, and Developing Trends When: Thursday, June 29, 2006 | 1:00 p.m. Eastern Where: http://www.videonewswire.com/event.asp?id=34400 How: Live over the Internet -- Simply log on to the web at the address above. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. NEW WORLD MARKETING INC. EXPANDS CONSULTING PRACTICE: SEEKS INNOVATORS TO GENERATE NEW FINANCIAL PRODUCTS AND SERVICES HOUSTON – New World Marketing Inc. is attracting new distribution and product development opportunities through the expansion of its consulting and strategic position practices. The company develops innovative product and service solutions in the financial services industry by connecting innovators and their ideas to corporate senior management environments. New World Marketing is continually looking for new ideas and concept inventors in its commitment to bring innovation and excellence to the financial services market. NWM acts as a catalyst by bringing together distributors and vendors with senior industry executives. The company works with life insurance producers, primary insurance carriers, reinsurers, banks, mortgage companies and other vendors. “Inventors need exposure and access to capital and we are here to open doors, make connections and oversee the processes that turn ideas into reality,” said Robert S. Cauthen, Jr., New World’s Chairman and CEO. “New World has the intellectual capital to see the big picture and to help all parties benefit from creativity and innovation,” Cauthen said. “Our strong connections in the corporate world help us to expedite the exposure and distribution processes necessary to bring these concepts to the market.” New World has expedited the development of numerous products and services to insurance companies, reinsurers, banks and mortgage providers. Recent client products/services include: Unique Universal Long Term Care policy A Critical Illness Insurance policy An IT administration system that simplifies Corporate Benefit Packages (e.g.: 419 Welfare Benefit programs, executive compensation plans, charitable giving, business buy-sell, estate planning and retirement planning) In addition to its consulting and strategic position practices, New World Marketing conducts executive searches for many of the Fortune 500 insurance companies, assisting in the identification, assessment and recruitment of mid-level to senior executive talent in actuarial, marketing, sales, underwriting, claims, compliance and financial positions. New World Marketing works with companies specializing in insurance, annuities, group employee benefits and client-driven health plans. New World Marketing Inc. was founded in 1996 by Cauthen, a former senior executive in the financial services industry and former CEO of American General Life Insurance Co. The financial services experts at New World Marketing, Inc. bring more than 125 plus years of combined experience in multiple branches of the industry. New World Marketing is a diverse consulting and strategic positioning firm providing services both domestic and international in scope. Its clients include senior management in leading insurance and reinsurance companies as well as banks and mortgage providers. 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. AUL enhances group disability insurance products and services INDIANAPOLIS –The Group division of American United Life Insurance Company® (AUL), a OneAmerica company, is pleased to announce that it completed its launch of a three point strategy to enhance its Group Disability insurance products and services. “We strongly believe this new strategy will position the company to better serve customers and producers in the increasingly competitive group insurance marketplace,” said Eddy Taylor, AUL’s Group division Vice President of Sales. As part of AUL’s efforts to enhance its delivery of high quality, high value group disability insurance products and services, they have enhanced the contract to meet a broader spectrum of customer needs. AUL and its customers will also benefit from a recent premium rate study that will position it better in key target segments. Rounding out AUL’s enhanced commitment to its group disability insurance business and in an effort to provide unparalleled service to its customers, AUL has entered into a relationship with Disability Reinsurance Management Services (Disability RMS) for risk management consultation and full service group disability insurance claims administration. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. INSURANCE LEADER MICHAEL R. SLADE TAKES WORKSITE BENEFIT COMMUNICATIONS HIGH-TECH WITH NAVITECH Industry Innovator Positioned to Further Revolutionize Employee Benefit Education and Enrollment Atlanta – (June 28, 2006) – As the pioneer of the insurance industry’s innovation of benefit communication to employees at the worksite, Michael R. Slade, CLU, turned to technology, taking this concept one step further with the introduction of his new company, NaviTech, Inc. NaviTech, formerly SouthCorp HR Services, has developed one-of-a-kind tools, through its NavigatorTM software, designed to take advantage of professional technology and deliver customized benefit information and enrollment options through visual, verbal and interactive education. NaviTech (www.navitechhr.com) is the first company to offer an easy-to-use, cost-effective technology solution to fill the education void between companies and their employees, virtually eliminating the administrative duties and drastically lowering the implementation costs associated with benefit enrollment and education. www.navitechhr.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. GEICO's Mechanical Breakdown Insurance (MBI) Offers Peace of Mind for Auto Owners CHEVY CHASE, Md., June 27 /PRNewswire/ -- GEICO, nearing the sale of its one millionth mechanical breakdown insurance (MBI) policy, reminds auto owners of the benefits of this unique coverage. GEICO's mechanical breakdown insurance (MBI) policy is an all-risk policy designed to protect policyholders after the car's warranty is up. After a $250 deductible on a covered loss, GEICO MBI covers repairs to all mechanical parts of the car except for maintenance and wear and tear. GEICO's assistant vice president of MBI, Suzanne Worthen, said, "Our coverage is very broad. It pays for covered mechanical or electrical repairs to a new car. It also covers a car that is leased with the option to buy, with the insured being the first titleholder. This coverage helps protect our MBI policyholders from being saddled with unanticipated and expensive repair bills." GEICO notes that the vehicle must be less than 15 months old and have an odometer reading of less than 15,000 miles at the time the coverage is initially purchased. For more information about mechanical breakdown insurance, please visit http://www.geico.com/auto/safety/mbi.htm. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Agrios Announces Automated Vehicle Imaging & Data Capture Unit for the Automotive and Insurance Industries Agrios' Automated Vehicle Imaging and Data Collection Unit creates high quality digital images of a vehicle from multiple angles simultaneously in less than twenty (20) seconds, while capturing the VIN for additional tracking and storage purposes ATLANTA, June 27 /PRNewswire/ -- Agrios, Inc., announced the first true breakthrough in automatically capturing high quality digital images of all kinds of vehicles from almost any location - images that can be used for creating listings for auctions or online remarketing portals, verifying vehicle condition upon return from lease or rental, for managing and certifying insurance claims, for and for many other purposes. The Automated Vehicle Imaging and Data Collection Unit is a completely integrated system designed specifically for the purpose of creating vehicle images in a self contained environment, capable of being delivered to remote locations with limited space, such as dealership lots, mall parking areas, and fleet marshalling yards. www.agrios.net Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. HealthEquity(R) Inc. and Physicians Plus Insurance Corp. Enter into Strategic Alliance SALT LAKE CITY--(BUSINESS WIRE)--June 27, 2006--Two leaders in the area of health care client services, education and support, are teaming up to offer a consumer-driven, health savings account (HSA) coverage option to consumers in Wisconsin. HealthEquity Inc., an innovator in complete consumer-driven health coverage solutions and health care client services, and Physicians Plus Insurance Corp., a managed care organization dedicated to high-quality products and supporting long-term health through community involvement, will team up to offer a product with superior client services. www.HealthEquity.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Patni Computer Systems Forms Strategic Alliance With Clear Technology, Inc. CAMBRIDGE, Mass., June 28 /PRNewswire-FirstCall/ -- Patni Computer Systems, Ltd., a global IT services provider, announced today that it has formed a strategic alliance with Clear Technology, Inc., a leading global software solutions company serving the insurance, financial services and healthcare industries. Under the terms of the agreement, Patni will provide worldwide process consulting and system integration services for Clear Technology's insurance and financial services solutions. www.clear-technology.com www.patni.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27.
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