Daily Quote: "Let our advance worrying become advance thinking and planning." - - Winston Churchill
1. InsuranceBroadcasting.com Launches An Audio Version Of INSURANCE NEWSCAST Twinsburg, OH – 12/11/06 -- InsuranceBroadcasting.com announced today that they are launching an audio version of INSURANCE NEWSCAST. The audio will be available to either listen to online or it may be downloaded and listened to on an I-pod or other MP3 player. As is the case with the newsletter, there will be no charges or fees of any kind associated with accessing the content. “The growth of our newsletter this year has been phenomenal” said Walter B. Podgurski, CEO of InsuranceBroadcasting.com. “When we announce our 2006 subscriber numbers later this month, we are going to be close to half-a-million industry subscribers. This scale allows us to add valuable features to our service in a cost-effective manner. This service is also consistent with what all the media research reports are saying, which is to make content available on demand in whatever format that a person wants.” “Insurance news and information is our product, but the way it is delivered is our service” Mr. Podgurski added. “Much has been written about the ‘experience’ delivered to a customer or client when they interact with your company. We go to great lengths to make sure we are delivering an ‘experience’ and not just a newsletter. The Daily Quote, the Pictures Of The Day, the standard features and content partners, the newsletter formatting, the delivery timing, and many other components have all been structured to maximize the value and experience to the reader. We try to think of everything we can to inspire people to read our newsletter rather than someone else’s, or at least be the first one they open up in the morning.” “We are proud of our growth and we are just as proud that we are able to produce and deliver what we feel is the best insurance industry newsletter to such a large audience with absolutely no fees or charges. Our conviction is that quality has not been sacrificed in any way, and in fact is just the opposite; that INSURANCE NEWSCAST stands out as the premier insurance news newsletter in the industry.” “Technology changes business models and is going to continue to improve what can be accomplished and communicated. We go into 2007 appreciative of each and every subscriber we have and anticipating additional changes and improvements to serve them better.” The link to listen to or download the INSURANCE NEWSCAST will be at the top of each newsletter, and also on the home page of InsuranceBroadcasting.com – www.insurancebroadcasting.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Experts Warn Insurance Regulators of Catastrophic Consequences of Mid-America Earthquake Along New Madrid Fault WASHINGTON, Dec. 11 /PRNewswire/ -- Earthquake, insurance and building code experts from across the country today warned state insurance regulators of the catastrophic consequences when middle America experiences a replay of the 1811 and 1812 New Madrid series of earthquakes, and recommended that the regulators support a comprehensive solution that includes financial protections, public education, stronger building codes and strengthening first responders to better prepare for such an event. Between 1811 and 1812, four catastrophic earthquakes struck the central United States during a 3-month period and were felt by an area of over 1 million square miles in what was then rural America. Scientists predict that the probability for an earthquake of magnitude 6.0 or greater in the Midsouth and Midwest is significant in the near future. According to a June 2006 Risk Management Solutions report, a magnitude 7.7 New Madrid earthquake, similar to the one that occurred in December of 1811, is estimated to result in over $60 billion in insured losses today. "The area exposed to the New Madrid fault -- home to millions of people and major population centers including St. Louis and Memphis -- is just as at risk to a major catastrophe as Florida and the Northeast are to hurricanes and the Pacific Coast is to earthquakes. We need to implement a comprehensive, integrated solution at the state and national levels that will create a permanent and growing financial reserve as a backstop to the private insurance market, while also using investment earnings to prevent and mitigate the damage from future catastrophes by establishing better land-use planning, stronger building codes, homeowner education programs and strengthening ProtectingAmerica.org currently consists of more than 150 member organizations including emergency management officials, first responders, disaster relief experts, large and small businesses, nonprofit organizations and insurers. www.protectingamerica.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Forecaster predicts busy 2007 US hurricane season LONDON, Dec 7 (Reuters) - The United States, which has emerged from this year's hurricane season largely unscathed, should brace itself for a potentially devastating hurricane season in 2007, a leading windstorm forecaster warned. A long-range forecast for next year issued by Tropical Storm Risk, a London-based forecaster, on Thursday predicted an above-normal Atlantic hurricane season with a strong probability that more hurricanes will slam into the United States than usual, based on average figures for the period 1950 to 2006. It said that 16 tropical storms were likely to occur in the Atlantic basin, nine of which would be hurricanes and four likely to be so-called intense hurricanes. Five tropical storms are likely to hit America, of which two will be hurricanes, TSR said. It anticipated a combination of conditions that would indicate a higher-than-average hurricane season. In 2007 the trade winds, which blow westwards from the tropical Atlantic and Caribbean Sea, will be weaker than normal, while the sea temperatures between west Africa and the Caribbean, where many hurricanes form, will be warmer than normal, TSR said. For those who may be inclined to disregard such ominous warnings following this year's widely inaccurate predictions of another string of major storms similar to those that ravaged the U.S. coast in 2004 and 2005, TSR said an unusual mix of conditions led to fewer windstorms than were predicted. "The below-average 2006 hurricane season was due to the presence of considerable African dry air and Saharan dust during August and September, which inhibited thunderstorm occurrence and therefore tropical storm development, and to the unexpected onset of El Nino conditions from mid-September," TSR said. "There is no precedent for these factors together having been so influential before," it added. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Ernst & Young Issues 2007 US Industry Outlook for Property/Casualty Insurance Industry NEW YORK--(BUSINESS WIRE)--In 2007 two themes will prevail in the property/casualty insurance industry: the need for better capital management and a drive for innovation, according to Ernst & Young’s Global Insurance Center. In 2006 we saw the convergence of favorable factors and the prospect of strong profitability, barring unforeseen events. The industry has exhibited strong resiliency in 2006 with advances in the form of stronger balance sheets, better controls, improvements in risk management and continued advances in pricing techniques. “The past four years have been marked by unrelenting regulatory scrutiny, unparalleled catastrophic losses and an incredibly vibrant hard market,” said Pete Porrino, Global Director of Insurance, Ernst & Young Global Insurance Center. “Together these factors have created an unusual window of opportunity, attracting new competitors to the market that have a different view of risk and desire to innovate." Five key issues will shape 2007 for the property/casualty insurance market:
“We are likely to see a more complex and difficult business environment in 2007,” said Porrino. “The winners will be those companies that can execute on their business strategy, manage their capital judiciously and be innovative during a period of anticipated stagnant or declining profitability.” www.ey.com/perspectives Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Lead Plaintiff Pennsylvania State Employees' Retirement System Announces a $93 Million Settlement of a Securities Class Action Lawsuit Against CIGNA Corp. HARRISBURG, Pa., Dec. 8 /PRNewswire/ -- Lead Plaintiff Pennsylvania State Employees' Retirement System ("SERS"), the Pennsylvania Attorney General, Tom Corbett, and the Pennsylvania Governor's General Counsel, Barbara Adams, announce a $93 million settlement on behalf of a class of all purchasers of the common stock of CIGNA Corp. (NYSE: CI) from November 2, 2001 through October 24, 2002. SERS served as Lead Plaintiff and vigorously prosecuted this case for the benefit of the Class during the past four years. The case was scheduled to go to trial in March 2007 in the United States District Court for the Eastern District of Pennsylvania. SERS' Board Chairman, Nicholas Maiale, and SERS' Chief Counsel, Michael A. Budin, have stated that, "we are extremely pleased with this excellent result which will fairly compensate purchasers of CIGNA common stock for losses suffered as a result of their purchases during the Class Period." Counsel for SERS, Berger & Montague, P.C., and Co-Lead Counsel, Bernstein Liebhard & Lifshitz LLP, fought hard for Class members during the four-year pendency of this litigation and achieved an outstanding result for the Class. This settlement is in the top 8% of all securities class action settlements from 1996 through 2004. It is one of the 60 largest securities class action settlements ever achieved. www.bergermontague.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. BestWeek: Cover Helps Food-Service Businesses Such as Taco Bell Cleanse Tainted Reputations OLDWICK, N.J.--(BUSINESS WIRE)--The E. coli outbreak linked to Taco Bell restaurants has left more than four dozen people sick in at least three states, creating a major damage-control crisis for the fast-food chain, according to an article in the Dec. 11 issue of BestWeek. As with many restaurants or food service providers that have been linked to food-borne illnesses in the past, the costliest aspect of this crisis is not Taco Bell's removal of potentially-tainted green onions from its 5,800 restaurants nationwide, or the temporary closure of 18 stores, or expenses related to decontamination and cleanup of restaurants; it is the long-term damage to the company's trade name. However, only a few insurers offer insurance protection for this common and costly risk, experts say. www.ambest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. NAVA Reports Third Quarter Variable Annuity Industry Data RESTON, Va.--(BUSINESS WIRE)--NAVA™ announced today third quarter results for the variable annuity industry. The combined net assets of U.S. variable annuities increased 2.4% to $1.3 trillion at the end of the third quarter, as compared to the end of the second quarter of 2006. Net assets increased by 9.8 percent relative to the third quarter one year ago. Total variable annuity premium flow, or total sales, for the third quarter was $37.0 billion a 9.8 percent increase from third quarter 2005. Third quarter net flows of $9.3 billion show an increase of 98.3 percent from the third quarter 2005 net flows of $4.7 billion. The mix in premiums for the third quarter showed 60.8 percent of the total premium flow was in qualified plans and 39.2 percent in non-qualified plans. Total premium flow, or total sales, for nine-month year to date in 2006 was $116.9 billion, a 19.9 percent increase from the prior year’s nine-month sales of $97.5 billion. Net Flows for the first nine months of 2006 were $24.5 billion, or 21.0 percent of total flows. This reflects a 66.4 percent increase in net flows as compared with the first nine months of last year. The mix of net assets by asset class showed that $761.8 billion, or 59.0 percent of assets, was held in equity accounts. This is an increase of 30.9 percent as compared with the end of the third quarter 2005 when $581.9 billion, or 49.5 percent of assets, was held in equity accounts. The mix also shows that $263.4 billion, or 20.4 percent of assets, was held in fixed accounts, which is a decrease of 2.3 percent as compared to the end of third quarter in 2005. www.RetireOnYourTerms.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. New Law Makes Mortgage Insurance Tax Deductible RALEIGH, N.C., Dec. 9 /PRNewswire/ -- Home affordability and the housing industry received a big boost today from Congress, which approved a measure that would for the first time allow lower- and moderate-income homebuyers to deduct the full cost of mortgage insurance from their federal taxes in 2007. The provision was included in the omnibus tax bill approved by Congress early Saturday morning. "Many homeowners who used adjustable and exotic loans to buy houses during the housing boom of the last few years are now feeling the pinch as their interest rates reset," said Kevin Schneider, president of the U.S. mortgage insurance business for Genworth Financial, Inc. (NYSE: GNW). "This new legislation gives homebuyers the option of choosing a low down payment mortgage that offers both tax deductibility and fixed monthly payments. This is an important step forward for U.S. housing." The legislation passed today makes all mortgage insurance premium payments deductible for homeowners with adjusted gross household incomes of $100,000 or less. It applies to all new mortgage originations beginning January 1, 2007. www.genworth.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. MICA: New Tax Deduction Will Make Housing More Affordable WASHINGTON--(BUSINESS WIRE)--A new tax deduction will make homes more affordable next year by allowing many American home buyers to write-off premiums for private and government mortgage insurance. The deduction, which will help families who can’t afford the traditional 20 percent down payment for a home mortgage, will be effective for the 2007 tax year. Borrowers closing loans to purchase homes in 2007 who have annual household incomes of $100,000 or less will be able to get a low down payment mortgage and deduct the full cost of their mortgage insurance premiums on their federal tax return. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Peachtree Announces Financing Deal for $1.5 Billion of Life Settlements BOYNTON BEACH, Fla.--(BUSINESS WIRE)--Peachtree Life Settlements (“Peachtree”) has announced that it has arranged for a credit facility allowing it to purchase over $1.5 billion of Life Settlements. Peachtree expects to close on the purchase of several billion dollars worth of life insurance contracts in 2007 and is working closely with major capital markets banks to augment this new facility. www.life-settlementco.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. 109th Congress Expands Health Savings Accounts in Final Days Lake Geneva, WI (PRWEB) December 12, 2006 – The U.S. Congress gave final approval on Friday 12/08/06 to H.R. 6111, the “Tax Relief and Health Care Act of 2006” which included provisions expanding Health Savings Accounts (HSAs). The legislation incorporates provisions from H.R. 6134, the “Health Opportunity Patient Empowerment Act of 2006”, introduced by Reps. Eric Cantor (R-VA) and Paul Ryan (R-WI), and approved on September 27, 2006 by the House Ways and Means Committee. "HSAs are still relatively new, but we are already seeing them quickly grow in popularity in the early stages of their existence," said Ways and Means Chairman Bill Thomas (R-CA) on September 27, 2006. "The adjustments in this bill will make HSAs more attractive as Americans consider their health insurance options." The newly enacted provisions would make several improvements to the already-successful HSA program. A summary of the provisions is provided below. SUMMARY of HSA Provisions in the Tax Relief and Health Care Act of 2006 Expands Funding Sources for HSAs Allows an employee a one-time opportunity to roll over unused funds from an existing Flexible Spending Account (FSA) and/or Health Reimbursement Arrangement (HRA) to deposit in their Health Savings Account. Under this bill, employees would have the ability to start an HSA by making a one-time tax-free transfer of FSA and HRA amounts in their accounts as of September 21, 2006 to an HSA which would belong to the employee. The transfer must be made before January 1, 2012. Allows one-time transfers from Individual Retirement Accounts (IRAs) to Health Savings Accounts. The bill allows taxpayers to make a one-time distribution from an IRA to an HSA so HSA funds are immediately available to meet family health needs. The “roll-over” cannot exceed the HSA contribution limit for the year and is subject to the recapture taxes applicable to the part year coverage provision described below. Expands the Annual Limits on HSA Contributions Repeals the annual deductible limitation on HSA contributions. The bill allows individuals with HSA-qualified policies that have deductibles below the annual contribution limits (currently $2,700 for self-only coverage and $5,450 for family coverage) to contribute up to these maximum amounts each year. Currently, contributions are limited to the policy deductible if below the annual contribution limits. Allows full-year contributions for part-year coverage. The bill would permit taxpayers whose HSA-qualified coverage begins mid-year to make a contribution equal to their policy deductible for the year (or the annual contribution limit, if higher (see above). This will help people who begin their HSA-qualified coverage part way through the year and who are subject to the entire calendar-year deductible by allowing them to make a full annual contribution, rather than pro-rating their contribution for the number of months of HSA-qualified coverage. Taxpayers would be required to maintain a high deductible plan for a full year beginning in the month the HSA begins or pay tax on the contribution and a 10 percent penalty. Additional Flexibility for Employers to Help Lower Paid Workers Allows employers to make additional contributions for lower-paid workers. The bill provides an exception to the current “comparability rules” that require companies to make equal dollar contributions to all HSA-eligible employees with similar coverage (single or family) and work status (full-time or part-time). This provision will give employers flexibility to provide greater assistance to their lower-paid workers in the form of contributions to their HSA accounts. Earlier Notification of Cost of Living Adjustment Under current law, the minimum deductible and out-of-pocket limits for HSA-qualified policies, as well as the annual contribution limits are indexed for inflation. The bill requires the Secretary of the Treasury to announce adjustments to the amounts by June 1st of each year. Currently, the adjustments are not announced until November each year. Earlier notification will simplify planning decisions for insurance companies, banks, credit unions, employers, and taxpayers. HSA Clearing Corp applauds the House and Senate and urges President Bush to sign this important legislation. “HSAs have helped many Americans find affordable health insurance for the first time,” says Tim Morales, President of HSA Clearing Corp. “These provisions are simple, common-sense improvements to HSAs that will help more Americans take advantage of the great benefits that HSAs offer. We thank the 109th Congress for completing work on this proposal before it adjourns this year.” HSA Clearing offers turnkey solutions for financial institutions nationwide to initiate and administrate HSA accounts. For more information on this program, or the other benefits of using HSA Clearing Corp, please call 262-348-1300 or visit the website at www.hsaclearing.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Retirement Income Industry Association (RIIA) Launches One-of-A-Kind Research Series into the Retirement Security Needs of Americans Boston, MA (December 6, 2006) The Retirement Income Industry Association (RIIA) has launched the first in a series of reports providing cutting-edge research that gets to the heart of the retirement income challenges facing millions of Baby Boomers. According to Chris McNickle of Greenwich Associates and Chair of RIIA's Research Committee, the first report presents a snapshot of the total assets and wealth of American families and relates them to their specific retirement income needs. The report uses a brand new typology that divides American households into different categories of wealth: Wealthy (Top 5%), Affluent (Next 15%), Mass Market (Middle 50%), Marginal (Last 30%), and life stages: Starters, Builders, Pre-Retirees and Retirees. This typology will help financial services firms serve the emerging needs of American households as they age and accumulate wealth. RIIA’s research indicates that the Affluent Pre-Retired as compared with the Wealthy Pre-Retired and already Retired have a comparable amount of assets. However, fewer of the Affluent group’s assets are ‘in play’ because these people are still focused on accumulating assets and continue to confront major life events that will require assets to move and be reallocated. In addition, their assets are distributed over a wide variety of financial institutions. www.riia-usa.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Loss of Wealth Calculators Quantify Employee’s Financial Losses due to Extended Medical, Disability and Family Leaves -- Working-Age Adults Gain Foresight; Employers Cut Costs MADISON, Wis.--(BUSINESS WIRE)--NavGate Technologies ( www.NavGate.org ), a pioneering industry leader and developer of technology-based care solutions has created tools to help employees quantify the financial impact of an extended disability, family or medical leave. The loss of wealth calculators, a component of CareOptionsOnLine™ or COOL™, go beyond demonstrating the need for financial planning to show employees and employers the real costs of a reduced work schedule or prolonged a leave of absence. The calculators can provide the impetus for employees to plan for future care needs while helping them carefully weigh the decision to take or extend a leave. As a result, employers and employees can save considerable amounts of money. More and more employees are being required to alter their work schedules to care for loved ones. Research indicates that 84 percent of employed caregivers adjust work schedules to accommodate caregiving responsibilities. Beyond caring for others, one in every four Americans will become disabled at some time in their lives and almost one in seven individuals will become disabled for five years or more prior to age 65. “The financial impact of these life-altering events on an individual’s or family’s wealth are often underestimated by employees,” says NavGate president and CEO, Robert Pearson. “Many workers simply calculate the financial impact in terms of present dollars lost if they can’t work or work less. They fail to realize the real, long term costs of lost savings, lost employer retirement contributions, lower social security benefits and missed potential promotions at work. In addition, employees often fail to take into account the out-of-pocket coats associated with being a caregiver. The financial impact on employers is also substantial. Employers lose nearly $2,110 per caregiving employee per year,” according to Pearson. “COOL can apply a concrete number to the choices employees have to make. This will motivate them to plan ahead. They’ll realize how much it really costs to take a leave or prolong their absence.” “The beauty of the COOL calculators is their sophistication combined with ease of use,” says David G. Wegge, Ph.D., Chief Academic Officer, CareQuest University ( www.CareQuestU.org ). “In less than five minutes, an employee can obtain an accurate estimate of the impact a leave of absence would have on their financial well-being. Armed with this information, employees can make better decisions about taking disability, medical or family leaves.” Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. New Dynamics in Reinsurance Transactions RANCHO SANTA FE, Calif., Dec. 11 /PRNewswire/ -- Custom and Practice in the Property and Casualty Insurance and Reinsurance Risk Taking Business by Andrew J. Barile, CPCU, MBA, CEO, Andrew Barile Consulting Corporation, Inc., Email: abarile@abarileconsult.com Website: http://www.abarileconsult.com The dynamics of the insurance and reinsurance risk taking business has dramatically expanded with the emergence of what can be termed "Global Insurance Companies." Insurers under the same financial control domiciled in Germany, Bermuda, the United States of America, United Kingdom, and Japan, etc. Inter insurance company reinsurance transactions have been supplemented by much more sophisticated approaches to transacting reinsurance. Over the last forty years 1960 to 2000 the property-casualty insurance groups have been transferred into large financial insurance groups destined to take advantage of the global tax structures and global regulatory authorities. Utilization of Cosmetic Reinsurance Transactions to Show Profitability The ability of transferring your gross insurance losses to another insurance company was the basic premise of the reinsurance transaction. The specific insurance accounting concept to record this transaction requires additional scrutiny. Is the transaction for cosmetic purposes? Does the concept involve real risk transfer? When accounting for reinsurance contracts changes the amount of retained earnings is insurance company management practicing good business practices or violating the custom and practice of the insurance industry? One must understand significant details in the reinsurance transaction to separate cosmetic reinsurance versus traditional reinsurance, note the constant controversy over the term Finite Reinsurance, the characteristics of which are explained in my two 350 page textbooks on the subject. Buying Finite and Retroactive Reinsurance Understanding the benefits of finite risk reinsurance transactions is beyond the comprehension of the typical insurance trade publication journalists, as well as the stock insurance stock equity analyst at the large investment management firms. You are directed to "A Practical Guide to Finite Risk Insurance and Reinsurance" by Andrew Barile, CPCU, as well as some of Mr. Barile's other topical articles "A Perspective on the Future for Finite Risk Reinsurance", ProducersWEB, May 2006, and "How to Tell If An Insurance Company is Purchasing Finite Reinsurance", July 2005). Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Global Insurance Association Ensures End-User Continuity With Neverfail AUSTIN, Texas, Dec. 11 /PRNewswire-FirstCall/ -- The Neverfail Group (Neverfail), a leading global software company providing high availability and disaster recovery solutions, today announced the Association for Cooperative Operations Research and Development (ACORD) has implemented Neverfail's high availability and disaster recovery software. ACORD, a New-York-based global, non-profit insurance association, will utilize Neverfail's software to ensure global availability of the organization's Exchange and File Server applications. www.neverfailgroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. AIG Companies® Launch ''c-Claim'' to Service Financial Lines Clients More Efficiently NEW YORK--(BUSINESS WIRE)--The AIG Companies®, today announced the formation of “c-Claim” (centralized - Customer Link And Information Management) to process Financial Lines claims more quickly and efficiently. “c-Claim” will provide a single point of entry for all Financial Lines claims, including Directors and Officers (D&O), Errors and Omissions (E&O), Financial Institutions (FI) and Fidelity. The streamlined workflow will promptly direct each new notice or claim to the most appropriate claim professional, facilitating client contact and efficient resolution. “c-Claim” staff is committed to taking ownership of all inquiries and will stay actively involved through their resolution. www.aignationalunion.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. NAMIC: Regulatory Restrictions Can Only Harm Connecticut Property Market INDIANAPOLIS (Dec. 8, 2006)—The regulatory restrictions outlined in a recent report by the Connecticut Insurance Department will hurt rather than help the functioning of the state’s homeowners insurance market, according to the National Association of Mutual Insurance Companies (NAMIC). The Department issued its report following a 90-day period during which it studied the market and took input from interested parties. The market review and report stemmed from public and political outcry over the approval of one company’s underwriting guidelines requiring coastal insureds to install storm shutters. The report contains a list of “guidelines” that significantly restrict insurers’ ability to underwrite coastal property risk. “Unfortunately, the Department’s guidelines amount to restrictions that will hamper insurers’ ability to underwrite business appropriately,” commented Paul Tetrault, NAMIC’s state affairs manager for the Northeast. “This can only have an effect that is ultimately the opposite of what is intended, as these kinds of restrictions generally make insurers less inclined to want to write in an area.” www.namic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. NAIC EMPHASIZES IMPORTANCE OF SBS IN STATE–BASED INSURANCE REGULATION State Based Systems Tools Streamline Insurance Regulation, Enhance Efficiency SAN ANTONIO (Dec. 9, 2006) – The National Association of Insurance Commissioners (NAIC) announced its increased support for one of its strongest tools for state regulators, State Based Systems (SBS), today during the Association’s Winter National Meeting in San Antonio. “State Based Systems should be a key part of the NAIC’s overall membership strategy in the improvement of state–based insurance regulation,” said Walter Bell, NAIC President–Elect and Alabama Insurance Commissioner. “That is made possible by offering uniformity and integration, which are both so very important in the preservation of state regulation.” SBS serves as a back office processing system for producer licensing, company licensing, consumer services, enforcement, fraud, and revenue management. It includes sophisticated correspondence and document tracking, as well as flexible reporting and data–extract features. “SBS, used in conjunction with other NAIC technical offerings, can significantly reduce a state’s financial and human resources by providing support for daily regulatory activities,” said Julie Fritz, Director of the NAIC’s Insurance Products and Services Division. “As a result, this leaves the state insurance department with more resources to devote to other initiatives, which oftentimes get pushed to the back burner.” The NAIC offers SBS to state insurance departments as a benefit of membership in an effort to simplify and enhance state insurance regulation processes. www.naic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article State Regulators Remain Committed to Modernization, Solvency and Consumer Protections SAN ANTONIO (Dec. 10, 2006) – Members of the National Association of Insurance Commissioners (NAIC) approved the Association’s 2007 operating budget today during its Winter National Meeting in San Antonio. The 2007 final consolidated budget calls for $65 million in total revenue and $64.8 million in total expenses, an increase of 6.4 percent and 8.2 percent, respectively, from the 2006 projected revenues and expenses. The budget includes the International Association of Insurance Supervisors Annual Conference, which the NAIC is hosting in 2007. The conference, which is a one-time event that will not be repeated in subsequent budgets, adds an additional $642,775 or a 1.1 percent increase in both revenues and expenses. The approval by the NAIC’s full membership follows the budget’s formal proposal in September and a November public hearing, which included comments from industry representatives and a discussion of the financial plan. www.naic.org 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. FOUR STATES RECEIVE NAIC ACCREDITATION HONORS AT NATIONAL MEETING Forty-Nine States and Washington, D.C. are Accredited through Program SAN ANTONIO (Dec. 10, 2006) – Four state insurance departments received Accreditation Awards today as part of the National Association of Insurance Commissioners (NAIC) Financial Regulation Standards and Accreditation Program. The honor was awarded to the Alabama, Kansas, North Carolina and Ohio Insurance Departments during the Opening Session of the NAIC’s Winter National Meeting at the Marriott Rivercenter in San Antonio. “The accreditation process is a vital part of the NAIC’s objective of enhancing state-based insurance regulation,” said NAIC President–Elect and Alabama Insurance Commissioner Walter Bell. “State insurance departments have a duty to protect their consumers and promote competitiveness in the insurance marketplace. The NAIC’s accreditation program allows the states to continuously work to make that possible,” said Sandy Praeger, NAIC Vice President and Kansas Insurance Commissioner. With today’s presentation, 49 states and the District of Columbia continue to be accredited by the NAIC. www.naic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article The focus of Lloyd’s has turned firmly forward following the announcement of the Equitas deal according to the latest ‘Lloyd’s Update’ report published by Benfield’s Industry Analysis and Research team entitled “Venturing Forward.” Lloyd’s hopes that the transfer of Equitas’ liabilities will serve as a catalyst for the reinstatement of the Standard and Poor’s (S&P) “A+” rating, and continues to work hard for this target. Rating drivers are a key consideration in the evolution of the Optimal Platform strategy and the 2007 Franchise Directorate planning process has formally incorporated measurement of their impact. Capacity increased by over GBP1billion to GBP14.8billion in 2006. Since then a number of new syndicates have been formed including standalone ventures and sub-syndicates. 2007 market capacity has yet to be announced but indications from the Lloyd’s listed vehicles coupled with the new syndicates suggest a figure close to GBP16billion. New ventures such as Thunderbird Re and Syncro Limited should also enhance capacity and proposals for the annual venture provide further scope. “There has been much discussion about the merits of Bermuda relative to Lloyd’s but augmentation of capacity through new ventures and new vehicles suggests that the London market is in good health,” observed Angela Coad from Benfield’s Industry Analysis and Research Team. “Those who have re-domiciled are keen to stress that London is a key platform and Lloyd’s is intent on ensuring that this continues to be the case.” A full copy of the report can be viewed online at www.benfieldgroup.com/research and printed copies can be obtained by contacting IAR@benfieldgroup.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Investors Capital Offers Comprehensive Group Health Benefit Options LYNNFIELD, Mass.--(BUSINESS WIRE)--Investors Capital Corporation, the independent broker-dealer of Investors Capital Holdings, Ltd. (AMEX: ICH), today became one of the industry’s first independent broker-dealers to offer comprehensive group health, dental, vision, life & disability insurance for its registered representatives. Effective immediately, Investors Capital will provide group benefits options that include Blue Cross Blue Shield PPO health insurance, Guardian dental, life and disability insurance as well as vision insurance from VSP. This new benefits program allows Investors Capital Corporation’s representatives to purchase health insurance for themselves, their employees and their families at competitive rates. www.investorscapital.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. 28.5 MILLION PARTY HOSTS LIKELY UNDERINSURED New Trusted Choice® Survey Finds Hosts Grossly Unprepared for their Liability ALEXANDRIA, Va., Dec. 11, 2006—Most of the 28.5 million Americans who plan to host a party between Thanksgiving and the Super Bowl are underinsured, according to a new study by Trusted Choice®. Of those 28.5 million party hosts, 21 million do not have a personal umbrella insurance policy, leaving themselves open to potential lawsuits and facing financial ruin, should the worst occur. The remaining 7 million hosts say they don’t know what coverage they have, leaving them vulnerable too. If a party guest drinks, drives and causes an accident, the hosts can be held responsible in more than 30 states. In fact, a majority (53%) of party hosts believe they should be held responsible, but despite this, most haven’t taken steps to protect themselves. A personal umbrella insurance policy goes above and beyond homeowners insurance and gives hosts extra liability coverage. Purchasing a personal umbrella policy, providing $1 million or more in additional liability coverage over the limit of a standard homeowners’ or renters’ policy, is a prudent move for the frequent party host, and can cost as little as $150 a year. “A majority of people (56%) planning to host parties do not have a personal umbrella policy,” says Madelyn Flannagan, Trusted Choice®. “People don’t buy umbrella policies because they think they have enough coverage from their homeowner and auto policies—but they don’t. The high dollar value of jury awards coupled with skyrocketing health care costs means one lawsuit can easily exceed the liability limits on the average policy. “Protecting yourself and your family by having the proper coverage is critical,” continues Flannagan. “While you’ll never be able to entirely eliminate risks, planning ahead and learning your responsibilities as a host is the best defense. There are several ways to protect yourself and reduce risk while hosting a party.” For example, 84% of those surveyed say they would stop serving party guests if they’d had too much to drink. However, only 35% of these respondents had ever actually done so.www.trustedchoice.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Still River Releases New Paper in Series on Comprehensive Retirement Income Planning December 11, 2006, Harvard, MA – Still River has just posted its new paper, "Retirement Income Planning, Part 14: Are We Missing the Boat on Retiree Expenses?". This paper begins with the premise that if we don’t understand what the retiree’s expenses are, and if we cannot project with reasonable accuracy what they will be in the future, then no amount of sophisticated manipulation on the income side is worth much. The paper argues that using the distinction between necessary vs. discretionary expenses as a guide for investment strategy by using guaranteed income to cover necessary expenses, while investing more aggressively with funds earmarked for discretionary items, is dangerous. It explains how almost all expenses are necessary to some degree, but that the degree to which we indulge in them is discretionary, and it shows how they can reasonably be projected into the future. www.StillRiverRetire.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. 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 27. BANK INSURANCE NEWS IN BRIEF - DECEMBER 11, 2006 TODAY'S BANK INSURANCE NEWS IN BRIEF" is provided each week courtesy of Michael White Associates @ www.bankinsurance.com. To read these stories, visit http://www.bankinsurance.com/editorial/news/default.htm
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Dubai Ports to sell U.S. operations to AIG unit Mon Dec 11, 2006 10:14am ET - By Dayan Candappa - DUBAI (Reuters) - State-owned Dubai Ports World said on Monday it had agreed to sell its U.S. port operations to an American International Group (AIG.N: ) unit after relinquishing control of them to allay concerns about U.S. national security.DP World will conclude its deal with AIG Global Investment Group in the first quarter, the Gulf Arab company's Chief Executive Mohammad Sharaf told Reuters on Monday. He declined to give a value for the deal. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Swiss Re to buy 26 percent of India's TTK Healthcare ZURICH, Dec 11 (Reuters) - Swiss Re (RUKN.VX: ) said it is to acquire a 26-percent stake in TTK Healthcare Services Pvt Ltd. (TTKHCS) (TTKH.BO: ), one of India's leading health insurance third party administrators. Martyn Parker, Swiss Re's CEO for Asia, said the move was a milestone in the company's strategy to enter the medical reinsurance business in India. Swiss Re said in a statement it had signed a deal with TTK Group and India Value Funds to acquire the stake in TTKHCS, which is headquartered in Bangalore and provides Indian health insurance companies with a range of medical claims handling services. Swiss Re also said it intended to create a health care services advisory company, focusing on product development and corporate health schemes to assist Indian health insurance companies in rapidly expanding the market. The deal was subject to regulatory approval. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Six National Employers Working With The Blues To Address Large Disparity Between Employee Behavior And Perception Of Personal Health CHICAGO – Findings from a national Employee Engagement Poll are being released today as six national employers work with Blue Cross and Blue Shield companies in a pilot health and wellness research-based initiative – Engaging Consumers@Work – to determine what motivates employees to change their lifestyle behavior. Many employees report themselves to be in “very good” or “excellent” health, despite failing to reach even the minimum levels of physical activity and nutritional recommendations, according to the Employee Engagement Poll released by the Blue Cross and Blue Shield Association (BCBSA). The poll found that while nearly half (44 percent) of all employees considered themselves in above average health, a surprising few (one in five employees) actually adhere to the minimum standards of healthy eating, including consuming one serving of whole grain and fruit each day. Meanwhile, only one in two employees undertake minimal physical activity such as walking or gardening for ten minutes at least four days a week. Similarly, while many consumers understand basic health and wellness messages that good diet and exercise are important, a vast majority cannot answer specific questions about how such variables as body weight, cholesterol or blood pressure may impact quality of life. For more information on BlueWorks and the national Employer Engagement Poll, visit the employer section on http://www.bcbs.com/blueworks. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. StoneTapert Insurance Agency selected by Aging Services of California as their Approved Vendor for Health and Retirement Programs. PASADENA, CA – December 8, 2006 – StoneTapert Insurance and Financial Services Agency a leading provider of custom designed insurance programs and services to businesses, associations and non-profit organizations announced today that the Aging Services of California has decided to renew their relationship with StoneTapert as their insurance broker for the Aging Services of California association as well as granting StoneTapert an ongoing status as the Associations Approved Vendor for Health Insurance and Retirement Plans. StoneTapert (which has been privately owned for over 45 years) is one of the top insurance brokerage/consulting agencies in California and has clients with employees in almost all state of the US. www.stonetapert.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. NIPR ANNOUNCES NEW WEB ADDRESS SAN ANTONIO (Dec. 11, 2006) – The National Insurance Producer Registry (NIPR) will usher in 2007 with a new Web address, www.NIPR.com. The site currently is undergoing a major redesign and, when launched early next year, will be more user–friendly. "We want the Web site to be a one–stop shop that will assist producers, companies and state insurance departments in accelerating the licensing process," said Maryellen Waggoner, NIPR Executive Director. Incorporated in October 1996, the National Insurance Producer Registry (NIPR) is a non-profit affiliate of the National Association of Insurance Commissioners (NAIC). NIPR developed and implemented the Producer Database (PDB) and Electronic Appointments/Terminations (formerly PIN). NIPR is governed by a board of directors structured to include five members representing the NAIC and four industry members representing a cross section of the insurance industry. For more information, visit NIPR on the Web at: http://www.licenseregistry.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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