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1. State Farm close to settling Katrina suits NEW YORK, Jan 9 (Reuters) - State Farm, the largest U.S. home insurer, said it is close to settling hundreds of lawsuits over its payments for homes wrecked by Hurricane Katrina along the Mississippi Gulf Coast. A company spokesman confirmed Tuesday's New York Times report which cited lawyers briefed on the talks but would not provide additional comment. The paper said the settlement of 639 lawsuits for $80 million could be the first step in resolving a legal battle between homeowners and their insurance companies that has threatened to drag on for years. State Farm has agreed to review and possibly increase payments to as many as 35,000 additional homeowners, the NYT reported, adding that the homeowners received a few thousand dollars for homes that suffered major damage or were destroyed. State Farm would provide an average of about $125,000 to homeowners who filed lawsuits, though payments could range from $2,000 to about $2 million, the newspaper reported. Under the terms of the deal, State Farm would pay at least $50 million for claims that were previously closed, and some lawyers estimate the cost for the company could run into the hundreds of millions of dollars, the paper said. A State Farm spokesman told the NYT that the insurer had been in settlement talks, but said a final agreement had not yet been reached. A similar deal with other insurers could lead to an estimated 100,000 other closed claims being re-examined, the paper cited lawyers briefed on the talks as saying. The talks do not apply to homeowners in New Orleans and the rest of Louisiana, the paper said. A federal judge in late December sent back to Mississippi state court a lawsuit demanding that insurers pay flood damages to thousands of Hurricane Katrina victims, increasing the chances of a ruling against the companies. The insurers, including Allstate Corp (ALL.N: ), State Farm and Nationwide Mutual Insurance Co., claimed that flood damages were excluded from their policies and were covered under federal flood insurance. Nationwide Mutual is the parent of Nationwide Financial Services Inc. (NFS.N: ) © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Health-care spending hits nearly $2 trillion Tue Jan 9, 2007 8:48am ET By Susan Heavey WASHINGTON (Reuters) - U.S. spending on health care hit nearly $2 trillion in 2005, fueled by the cost of hospital care, doctor fees and prescription drugs, government experts said in an annual report released on Tuesday. Health-care spending grew 6.9 percent to about $1.99 trillion from about $1.86 trillion in 2004, a slower pace than the 7.9 percent increase a year earlier, the report by the National Health Statistics Group found. The increase outpaced a 3.4 percent rise in inflation in 2005. The statistics group is part of the Centers for Medicare and Medicaid Services (CMS), the single largest payer for U.S. health care. Leading the increase were hospital services, which grew 7.9 percent to $611.6 billion and accounted for 31 percent of all U.S. health care dollars in 2005. Rising labor costs amid a sustained worker shortage were major factors, according to the report, one of the most comprehensive available. Doctor and clinical services rose 7 percent to $421.1 billion, while nursing home and related care went up 6 percent to $121.9 billion. Prescription drug spending also increased 5.8 percent in 2005 to about $200.7 billion, tempered by reduced use of pain relievers such as Merck Inc.'s withdrawn arthritis drug Vioxx, the report said. Still, medication costs contributed largely to the growing share of costs for those covered by private health insurance plans in 2005, the report said. At the same time, brand name prescription drug prices rose an average of 6 percent. Even as the rate of growth for insurance plan premiums slowed, findings showed consumer out-of-pocket spending rose amid growing drug costs, followed by doctor and dental services. Premium growth slowed to 6.6 percent at $694.4 billion last year, down from 7.9 percent growth in 2004 as employers added deductibles and curbed coverage instead of raising employees' share of the fees. "These actions might slow premium growth for employers, but they ultimately increase the burden on individuals as their direct out-of-pocket costs increase," the economists wrote. While health-care spending continued to grow last year, it was at a slower pace for the third straight year, they added, in part due to more generic drug use, changes in various therapies and fewer drug costs for the nation's poor. Health-care costs also took up the same portion of the gross domestic product (GDP) as they did in 2004 -- about 16 percent, the report said. But it was unclear if that was a new trend. "The current moderation in the rise of the health share of GDP indicates that at least for now, health spending is growing at a rate nearly comparable to the rest of the economy," the group said. Additionally, spending for Medicare -- the federal insurance program for the elderly and disabled -- grew 9.3 percent to reach $342 billion last year. While slightly less than 2004's 10.3 percent growth, it still "was faster than average" compared to the previous decade, the report found. Growth in prescription drug costs under the program rose the most -- 19.7 percent -- but made up just 1.2 percent of its total spending. That included the cost of Medicare's temporary drug cards but not the full benefit that began January 2006. Spending for Medicaid, the U.S. insurance program for the poor, also grew 7.2 percent to $179 billion. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Health Care Cost-Containment Strategies Working for Consumers, Seniors and Taxpayers WASHINGTON, DC USA 01/10/2006 New Study Finds Premium Growth Lowest Since 1997; Medicare Drug Premiums 40 Percent Lower Than Forecast WASHINGTON, Jan. 9 /PRNewswire-USNewswire/ -- Health care spending increases are moderating as consumers and employers take advantage of health insurance plans' new generation of cost-saving strategies. That's according to a new study of health care spending conducted by actuaries at the Center for Medicare and Medicaid Services (CMS) and published today in Health Affairs, and an updated estimate of the cost of the Medicare prescription drug benefit released January 8, 2007 by CMS. The health spending study found that "the rate of growth in U.S. health care spending slowed for the third straight year in 2005" and that 2005 "was the third straight year that ... premium growth decelerated and the slowest rate of growth since 1997." The slower rate of premium growth also beat government estimates from 2006. Karen Ignagni, President and CEO of America's Health Insurance Plans (AHIP), said that a study conducted by PricewaterhouseCoopers, The Factors Fueling Rising Healthcare Costs, noted a direct relationship between consumers' enrollment in multi-tiered drug formularies and a slower rate of growth of prescription drug spending. The CMS study echoed these findings and found that prescription drug spending "continued a dramatic deceleration" and that the recent slowdown was driven in part "by the proliferation of tiered- copayment benefit plans, which slowed growth in brand-name drug use ... " Slower health care spending growth is being experienced in both the public and private sectors. Government officials are now estimating that the cost of the Medicare prescription drug plan will be much lower than anticipated. The average premium paid by seniors decreased to $22 a month, which is 40 percent lower than originally forecast. The combination of robust competition among Medicare health plans and plans' cost-containment strategies means the cost to taxpayers will be $113 billion less than previously projected. Ignagni said that Medicare health plans are employing many of the same value-focused techniques that are working in the commercial market, such as multi-tiered formularies that ensure consumers have access to the most cost- effective prescription medicines. "The Medicare prescription drug benefit continues to exceed expectations as seniors experience lower than expected premiums and lower out-of-pocket costs on their prescriptions," said Ignagni. "Most importantly, seniors continue to express overwhelming satisfaction with their new Medicare prescription drug benefits." America's Health Insurance Plans - Providing Health Benefits to More Than 200 Million Americans SOURCE America's Health Insurance Plans - www.ahip.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. J.D. Power and Associates Reports: Nearly 20 Percent of Customers Consider Switching Auto Insurance Companies Following Their Most Recent Collision Claim Amica Mutual Ranks Highest in Customer Satisfaction With the Collision Repair Process WESTLAKE VILLAGE, Calif., Jan. 9 /PRNewswire/ -- Nearly one out of every five customers considers switching insurance companies after experiencing the collision claim process, according to the J.D. Power and Associates 2006 Collision Repair Satisfaction Study(SM) released today. The study examines three factors that drive customer satisfaction with the repair experience. In order of importance, they are: claims/estimation (62%); body shop (36%); and rental car (2%). "Filing an insurance claim is a critical moment of truth that shapes a customer's overall perception of their insurer," said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. "Often, this is the first time they truly become familiar with their insurance policy. Misconceptions about what is covered by the auto policy, or what to expect during the claim and repair processes can lead to significantly lower customer satisfaction, which in turn increases the likelihood that the customer may consider switching carriers in the future." The study finds that 7 percent of customers chose not to file a claim with their insurer after their most recent collision. Common reasons include: the insurance deductible was more than the cost of the repairs; concern that the carrier would increase the premium after the claim; or at the advice of their insurance agent. "Before filing an insurance claim for minor damage, customers may want to first get an estimate for the cost of repairs," said Bowler. "If it's less than the deductible on the policy, the insurer will likely not cover any of the expense anyway." Additionally, while more than 30 percent of auto insurance customers who chose not to file a claim after a collision feared their premium would increase, 62 percent of respondent who did file a claim more than six months prior to being surveyed indicate their premium has not been re-adjusted by their insurer. With a score of 821 index points on a 1,000-point scale, Amica Mutual ranks highest in satisfying claimants with the collision repair process, receiving the highest ratings from customers in the claims/estimation factor. Erie Insurance and State Farm, respectively, follow Amica Mutual in the overall ranking. USAA, an insurance provider open only to the U.S. military community and their families and therefore not included in the rankings, also achieves a high level of customer satisfaction. The study also finds that claimants whose vehicles are totaled rather than repaired are significantly more satisfied if their insurer gives them a clear explanation of why the vehicle is totaled and how they calculated the settlement amount. Nearly 85 percent of total loss claimants receive an explanation of why their vehicle is being totaled and how their actual cash value settlement is derived. "The difference in satisfaction is primarily driven by how well the insurer manages the claims process, which is significantly longer for claimants experiencing a total loss," said Bowler. "However, when the damage exceeds $5,000, total loss claimants tend to be significantly more satisfied with their collision experience, perhaps due to concerns surrounding repair quality and diminished value of the vehicle." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. California to Cover All Children, Expand Health Coverage for Adults Faith Leaders Hail Largest Expansion of Children's Health Coverage in a Decade OAKLAND, Calif., Jan. 8 /PRNewswire-USNewswire/ -- Governor Arnold Schwarzenegger's expected announcement of a plan to cover all children in California caps a two-year campaign by faith leaders from the PICO network and health groups to win health insurance for the more than 750,000 uninsured children in the state. The plan would be the largest expansion in access to children's coverage since Congress passed the State Children's Health Insurance Program (SCHIP) in 1997. "This is a great victory for California children and families. It shows the way forward to covering all children in the nation when Congress takes up reauthorization of the SCHIP program," said Rev. Michael-Ray Mathews, a PICO leader and the Pastor of Grace Baptist Church in San Jose. Religious leaders kicked off the campaign to cover all children in California on April 14, 2005 at a 4,200-person town hall meeting organized by the California chapter of the national faith-based PICO network. After Governor Schwarzenegger vetoed children's health legislation, PICO's California state network of 20 faith organizations and 400 congregations collected 86,000 signatures for a tobacco tax that included funding for children's health. When tobacco companies defeated the ballot initiative, religious leaders and health care advocates from the 100% campaign flooded the Governor's office with calls to fulfill his pledge to cover all children through legislation (see http://www.fulfillthepledge.org). For more information please visit http://www.piconetwork.org/schip.html Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. FTCR: Schwarzenegger Health Plan's Success Depends on Whether Average Californians Can Afford It Insurer Reforms Must Be Strengthened, Not Watered Down, Says Group SANTA MONICA, Calif., Jan. 8 /PRNewswire-USNewswire/ -- The Foundation for Taxpayer and Consumer Rights (FTCR) said today that the outlines of Gov. Schwarzenegger's health insurance reform plan address some of the most pernicious insurance industry practices but fail to guarantee that health insurance policies will be truly affordable and that the policies' benefitswill be protective enough. FTCR gave Schwarzenegger a thumbs-up for requiring insurers to sell all Californians health policies, to limit charges based on medical condition, to limit patient out-of-pocket maximums and to limit overhead and profits for insurers to 15 percent. However, Schwarzenegger would force every individual to buy insurance but the plan does not guarantee that premiums will be affordable for every Californian. Today, a health insurance policy costs over $11,000 for a family of four. Insurers will also be able to charge more based on health status. "Gov. Schwarzenegger recognized that insurers' failure to insure all patients is a big problem that needs to be solved, but he still must guarantee that insurance is both affordable and meaningful if he wants everyone to buy it," said FTCR president Jamie Court. "The gaping loophole in the Schwarzenegger plan is affordability. Insurers are allowed to raise premiums at will and there are no limits on how much doctors or hospitals can charge." FTCR had recommended that health insurers be forced to justify their premiums to state regulators as auto insurers do, to prove they and their contractors are not profiting excessively. FTCR also expressed concerns that the current plan would be eroded in the legislative debate, with even fewer consumer protections. Schwarzenegger did address the fact that insurers today refuse insurance to patients based on occupation, prescription drug use and medical condition. Fixing this discrimination is an important step, but consumers must also be able to afford the coverage offered. See FTCR's earlier release on insurers' denial policies at http://www.consumerwatchdog.org/healthcare/pr/?postId=7218. "Insurance companies and HMOs will do all they can to undermine the governor's healthcare plan, and fight to retain their right to make unlimited profit. Instead, the governors' proposals must be strengthened, not undermined, in the legislative process," said Jerry Flanagan, research director of FTCR. "The governor's acknowledgment that insurers are abusing those who seek coverage does offer hope that this broken market will be fixed, regardless of the outcome of the debate on universal coverage." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. SEIU Sees Promise in Governor's Goal to Provide Health Care to All Californians Plan Raises Questions About Individual Risk and Public Hospitals, Emergency Rooms, and Trauma Centers SACRAMENTO, Calif., Jan. 8 /PRNewswire-FirstCall/ -- Service Employees International Union (SEIU), California's largest union representing 650,000 workers and the nation's largest health care union representing one million health care workers, commends Governor Schwarzenegger's efforts to assure all Californians the health care they need regardless of residency. SEIU members and leaders have eagerly awaited Governor Schwarzenegger's proposal since his recent promises to extend health care to all Californians. Ensuring that every Californian has access to quality, affordable health care has long been a priority of the union. Nevertheless, SEIU has questions about the specifics of the Governor's plan, particularly its transfer of health care risks and costs onto individuals through an individual mandate and its effect on public hospitals, emergency rooms, and trauma centers. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Health Insurance Policy Council Announces Framework for Health Care Reform in Connecticut HARTFORD, Conn., Jan. 8 /PRNewswire-USNewswire/ -- The Connecticut Health Insurance Policy Council has released a detailed report to guide health care reform in Connecticut. The Council was formed in July 2006 to study the state's healthcare system and to create recommendations on how to improve that system. The Council is comprised of state leaders from the major business associations and chambers of commerce, small and large employers, health insurance and healthcare companies. (Members listed below) The report puts forth an ambitious 10-point policy framework and reform goals for Connecticut. The Council is proposing that the public and private sectors work together to have Connecticut: 1. Become the healthiest state in America by 2020; "Number One" nationally for the lowest rates of smoking and obesity within five years. 2. Make our health care system a source of economic vitality and a competitive advantage for Connecticut compared to other states. Institute reforms so our health care and insurance costs trend below the average of other states, and we become leaders in deploying data and technology to measure and improve health care cost-effectiveness and quality in a way that is meaningful to consumers. 3. Reduce the percentage of uninsured citizens by half in three years, and move toward virtual 100% coverage over time. The report can be downloaded as a PDF at the following websites: http://cthealthreport.mediaroomshowcase.com http://www.businessfairfield.com/priorityhealthcare.htm http://www.evolutionbenefits.com/report Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Broker-Initiated Survey To Focus On Life Settlements CLEVELAND – January 3, 2007 – An Internet-based survey is expected to illustrate how insurance agents and other financial advisors are approaching potential transactions in the rapidly-evolving life settlement marketplace. Cleveland-based Life Settlement Insights (LSI), a leading life settlement brokerage firm, commissioned the survey, which will be conducted January 11, 2007. "It's a unique situation," said Jim Cavoli, LSI’s president and chief executive officer, "because the life settlement industry is changing and growing so quickly, we wanted to make sure we weren’t making decisions based on assumptions which may have been accurate six months ago, but could potentially be flawed as we move through 2007.” More than 450-thousand insurance professionals will be invited to take part in the 15-question survey. The industry’s largest electronic newsletter, www.insurancebroadcasting.com, will direct interested readers to the appropriate hyperlink, where they can review the questions and leave confidential responses. “Ultimately, the life settlement transaction is the culmination of dozens of distinct, thoroughly-researched decisions,” said David Dalton, LSI’s manager of marketing and corporate communications. “As a brokerage firm, we wanted a better understanding of the advisor’s thought process, because that can help us do whatever is needed to make the transaction less time-consuming for them.” The survey results are expected by the end of January. For more information, see www.lsinsights.com. About Life Settlement Insights Life Settlement Insights (LSI) is a leader in the national secondary market for life insurance, operating through financial service agencies and brokerages. The firm helps advisors realize fair market value for clients’ life insurance policies by structuring and negotiating life settlements with its national network of financial institutions. Contact: David Dalton 440-519-1450, Email: david.dalton@lsinsights.com www.lsinsights.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. CareQuest University Opens 2007 Long Term Care Group Specialist Course Enrollment with Innovative Addition to Curriculum and Tuition Discount January 08, 2007 – Madison, Wisconsin – CareQuest University, www.carequestu.org , and NavGate Technologies, www.navgate.org have partnered to offer an innovative approach to the education of insurance and financial professionals in the area of long-term care and disability. CareQuest University, an experienced leader in the areas of research, education and solutions for long-term care or disability issues, offers a Long-term Care Group Specialist, LTCGS®, designation for insurance professionals and a Certified Care Resource Specialist, CCRS, designation for any professional interested in becoming versed in long-term care, disability and financial – care planning solutions. New students who enroll between January 8th and March 1st 2007 will receive $100 off tuition and immediate access to CareOptionsOnLine (www.NavGate.org), an innovative financial and care planning tool created to underscore the importance of your long-term care insurance, disability income, group insurance and financial planning products or services. “We developed our programs around our belief that only advisors who understand the continuum of long-term care, disability and associated financial issues can serve the best interests of their clients,” explains CareQuest University President, Bob Pearson. Our students graduate with the knowledge and unique tools to be successful in the group insurance sales or financial services market.” With more than twenty years experience in the long-term care and disability sector, CareQuest programs offer learners rich content in a curriculum that draws from the knowledge of leading group sales, worksite marketing, financial, law, and academic experts. “CareQuest University has worked hard to create courses that address critical issues our nation faces,” says CareQuest University Chief Academic Officer, David Wegge Ph.D. “Our courses reach far beyond the how to sell insurance to seniors mindset, to delve into the critical issues everyone faces as our population ages. It’s solid information that anyone who deals with or markets to groups of any size can use.” Recent graduates of CareQuest University concur with David Wegge Ph.D. Christopher Aguiar of Orangevale, California, an independent insurance agent specializing in long-term care, remarked, “I am extremely satisfied with the curriculum. The Long-term Care Group Specialist program was fun and rewarding both personally and to my business; it’s a great program.” Other recent graduates include: Jeff Sadler and William Grzesiak, BlueCross BlueShield of Florida. To find out how CareQuest University can give you a huge competitive advantage in the group worksite and financial service markets and take advantage of the discounted tuition offer go to www.CareQuestU.org and request an enrollment information packet; or email your request to info@CareQuestU.org or call 800-327-7138. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Citigroup sees $370 mln loss in Japan finance unit Tue Jan 9, 2007 3:19am ET - By Jonathan Stempel and Edwina Gibbs - WASHINGTON/TOKYO (Reuters) - Citigroup Inc. (C.N: ) will close most of its Japanese consumer finance branches and take a $370 million fourth-quarter loss in that unit, hit by law changes that will cut the maximum interest rates on loans. The largest U.S. bank will take a $40 million fourth-quarter charge, including costs, to close 270 out of 320 branches and 100 of 800 automated loan machines. Citigroup will also increase reserves by $375 million as Japanese personal-loan firms also now face a flood of demands to repay interest charges deemed illegal by courts. The expected fourth-quarter net loss is equal to 7 cents per share, Citigroup said. It expects the Japanese consumer finance unit to roughly break even in 2007, and thereafter be profitable as costs decline. Amid a public and political backlash against the industry, changes in Japanese law have cut the maximum allowable interest charge on loans to 15 to 20 percent, depending on the type of loan, from the current 29.2 percent. The industry has also been battered by a Supreme Court ruling which said charges on loans with rates set between 20 and 29 percent, a gray zone between two conflicting usury laws, were illegal. That ruling has forced the beefing up of reserves, plunging lenders deep in the red. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. ISO CLAIMSEARCH ALL-CLAIMS DATABASE SURPASSES 500 MILLION CLAIMS JERSEY CITY, N.J., January 9, 2007 — ISO announced a major milestone today as its ISO ClaimSearch all-claims database surpassed 500 million industry claims. The ISO ClaimSearch system is the property/casualty insurance industry’s first resource for evaluating claimants’ claims histories and detecting claims fraud. “ISO has worked hand-in-hand with the industry to build and enhance the all-claims fraud-fighting resource over the past few years,” said Richard Boehning, senior vice president at ISO. “We’re pleased to have reached this milestone in the size of the database — which is just one measure of the improvement in the quality of the data we provide the industry for claims handling and fraud detection.” www.iso.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. DCAP Announces Proposed Conversion by Commercial Mutual Insurance Company to Stock Company HEWLETT, N.Y.--(BUSINESS WIRE)--DCAP Group, Inc. (NASDAQ: DCAP), the largest chain of independent storefront insurance brokerages in the Northeast, today announced that it has been advised by Commercial Mutual Insurance Company (“CMIC”) that its Board of Directors has approved a resolution to convert CMIC from an advance premium insurance company to a stock property and casualty insurance company pursuant to Section 7307 of the New York Insurance Law. CMIC has also advised that it has applied to the Superintendent of Insurance of the State of New York for approval to proceed with the conversion process. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Brooke Corporation Acquires Generations Bank OVERLAND PARK, Kan., Jan. 8 /PRNewswire-FirstCall/ -- Robert D. Orr, chairman and chief executive officer of Brooke Corporation (Nasdaq: BXXX), announced that Brooke has acquired Generations Bank from Kansas City Life Insurance Company for $10.1 million in cash. Orr also announced that the Bank will operate under the name Brooke Savings Bank. The U.S. Office of Thrift Supervision approved Brooke's application to acquire the Bank on Dec. 29, 2006, and the transaction closed today. Orr stated, "Our primary business is the franchising of insurance agents. The acquisition of Brooke Savings Bank is the continuation of a strategy to leverage our relationship with independent insurance agents, especially Brooke franchisees, to provide additional products and services that complement the standard property and casualty insurance policies typically offered by these agents. The bank will continue to provide its customers with a combination of products and services that engenders the same strong, mutually beneficial, long-term relationships that exist in our insurance business." Orr added, "This acquisition is expected to eventually expand the market that we target for franchise recruitment from insurance agents that offer banking services to complement their insurance sales, to bank agents that focus primarily on the sale of banking services." www.brookeagent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. PayFlex Acquires Leading HSA Administrator FlexAmerica OMAHA, Neb., Jan. 9 /PRNewswire-USNewswire/ -- PayFlex Systems USA, Inc., a leading administrator for employee benefit programs, today announced the acquisition of FlexAmerica, Inc, which has emerged as a Consumer Directed Health Product leader with over 1,000 employers utilizing their Health Savings Account platform. FlexAmerica will operate as a subsidiary of PayFlex. The current FlexAmerica management team, operations and employees will remain intact. This announcement marks the third acquisition in less than a year for industry leading PayFlex, and comes on the heels of new legislation designed to fuel HSA growth. www.payflex.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. M Benefit Solutions - Bank Strategies Welcomes Corrigan & Company as Newest Addition to Advisor Firm Lineup PORTLAND, OR, JANUARY 8, 2007 - M Benefit Solutions - Bank Strategies today announced the addition of Corrigan & Company to its lineup of Community Bank Advisor Firms. Corrigan & Company, a leading executive benefits firm based in Santa Barbara, California, formerly known as BenmarkWest, solidifies the presence M Benefits Solutions - Bank Strategies maintains in the Western United States. M Benefit Solutions - Bank Strategies specializes in providing executive and director benefit planning services to community banks through Advisor Firms located in key markets across the country. The Advisor Firms, which are recognized leaders in the Bank Owned Life Insurance (BOLI) market, specialize in helping banks attract, retain, and reward key executives and directors through the design, implementation, and administration of benefit programs that maximize the use of a bank’s financial resources. M Benefit Solutions - Bank Strategies is the Independent Community Bankers of America's (ICBA) Preferred Service Provider for executive and director benefits. BOLI remains an excellent tool for offsetting the costs of employee benefits, including medical, group life, and other ERISA benefits, as well as qualified retirement plan benefits. In addition, BOLI can be used to recover costs associated with the implementation of nonqualified benefit plans, which are often used to attract and retain key executives, and can serve as an efficient asset/liability management tool, bringing balance sheet advantages that can ultimately enhance earnings per share. www.mben.com/bank Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. RMS PURCHASES HAILCALC EUROPE RMS Clients Now Able to Assess Hail Risk Across Major European Insurance Markets Newark, Calif. - January 8, 2007 - In response to a growing insurance industry need, Risk Management Solutions (RMS), the world's leading provider of products and services for the management of natural hazard risk, today announced the acquisition of HailCalc Europe, the first fully probabilistic hail loss simulation software for Europe. The model was built by a team of atmospheric scientists in conjunction with Swiss Re and has been actively used to assess hail risk in Europe since 2004. www.rms.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. WFG Capital Advisors Announces that Swett & Crawford has Acquired Oxbridge Insurance Associates, Inc. HARRISBURG, Pa.--(BUSINESS WIRE)--WFG Capital Advisors announces that Swett & Crawford has acquired the assets of Oxbridge Insurance Associates, Inc. (Oxbridge), located in Morristown, New Jersey. Founded in 1991, Oxbridge is a property and casualty wholesale broker and managing general agent that writes specialty classes of business on a nationwide basis. Specialty lines written by Oxbridge include programs for the major professional sports leagues and an exclusive nationwide crane facility. Oxbridge also offers brokerage services for the transportation industry, with a focus on the motor coach, school bus and limousine industries. WFG Capital Advisors of Harrisburg, Pennsylvania served as a financial advisor to Oxbridge Insurance Associates, Inc. www.wfgca.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. INSURANCEONLY AND DIRECT RESPONSE INSURANCE AGENCY ANNOUNCE MERGER DENVER, CO – (January 9, 2007) -- InsuranceOnly (IO), a national leader and innovator in the direct response life insurance industry, has announced the finalization of a merger with Direct Response Insurance Agency, also of Denver, CO. The new, combined company will operate under the InsuranceOnly name. The announcement was made by Pat Wedeking, president/CEO of InsuranceOnly and Travis Phillips, president/CEO of Direct Response Insurance Agency. www.OnlyFinancial.com 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. ING, Merrill trade first-ever London offices swap LONDON, Jan 9 (Reuters) - ING Real Estate Select, a unit of Dutch financial group ING (ING.AS: ), and U.S investment bank Merrill Lynch (MER.N: ) said on Tuesday they had traded the first-ever central London office property derivatives contract. A spokesman for ING said the deal -- between 10-50 million pounds ($19.42-$97.11 million) in size -- had been arranged on behalf of a client keen to gain exposure to the central London market, where rents are tipped to continue growing strongly in the next few years as the city's financial industry booms. "This is our first trade in a fledgling market which we believe will grow substantially over the next few years," said Tony Yu of ING Real Estate Select, who declined to comment on pricing or on the tenure of the trade. "ING intends to be at the forefront of this new market and we hope this will be the first of many deals." © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. China Life doubles in spectacular Shanghai debut By Lu Jianxin and George Chen SHANGHAI, Jan 9 (Reuters) - Shares in China Life Insurance Co., the country's biggest life insurer, more than doubled in their Shanghai debut on Tuesday after a $3.6 billion IPO, attracting huge interest as the first insurance stock to list on the domestic market. China Life's (601628.SS: ) closing price valued it at $141 billion, making it the world's third-biggest insurer after American International Group Inc. (AIG.N: ) at $185 billion and Berkshire Hathaway Inc. (BRKa.N: ) at $165 billion. The debut was a spectacular display of the strength of China's equities market, where the main index <.SSEC> soared 130 percent last year, and authorities' success in expanding the market by encouraging top Chinese firms to list domestically. ($1 = 7.81 Yuan) © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. ACE USA Launches Podcast to Address Risk Management Considerations for Securities Class Action Litigation and Directors and Officers Liability Insurance PHILADELPHIA--(BUSINESS WIRE)--ACE USA, the U.S.-based retail operating division of the ACE Group of Companies, today announced that it has launched the second in an occasional series of audio “podcasts,” or Internet-distributed audio programs, discussing selected risk management topics. Carol Zacharias, Senior Vice President and Counsel, ACE Professional Risk, discusses her white paper, recently published in The John Liner Review: “Trends in Securities Class Action Litigation and Directors and Officers Liability Insurance,” and provides corporate risk managers with an informative overview of the trend toward unprecedented securities litigation settlements, the factors driving it, and the potential consequences to companies thus affected. “Securities class actions are the most common type of class actions; since 2002, they are also the most costly and time-consuming to resolve; cases proceeding with a concurrent Securities and Exchange Commission (SEC) investigation tend to settle for double the price of those without the SEC proceeding,” said Ms. Zacharias. To access the ACE Professional Risk podcast audio program featuring Ms. Zacharias’ discussion of securities class action litigation and directors and officers risk management issues, please visit www.ace-ina.com/podcasts. Please note, the program is approximately 24 minutes in length. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Technology Companies Are Exposed to Security Breach Litigation Some Cyber Policies, By Themselves, Can Leave Gaps in Protection WARREN, N.J., Jan. 8 /PRNewswire/ -- Security breaches are becoming more frequent as businesses increasingly rely on technology to store and transfer assets and sensitive information, such as customer names and credit card numbers. With each security breach, there is the risk that a lawsuit or regulatory action could damage a company's reputation and do serious financial harm. Some retailers and financial institutions already have faced litigation and regulatory actions, and some of these firms are now trying to hold their technology vendors and others accountable. "Any technology provider that sells a product or service that includes a security feature is at risk of being sued," said Jim West, senior vice president at Chubb & Son and worldwide manager of Chubb's Information & Network Technology segment. But West warns that many technology companies buy insurance that does not address the many exposures related to security breaches. "Depending upon the circumstances, a single breach can trigger a variety of insurance policies, including crime, errors and omissions, employment practices liability, general liability, property and even directors and officers liability," West said. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. WellPoint NextRx Awarded Missouri Department of Transportation and Missouri State Highway Patrol Medical and Life Insurance Plan Contract THOUSAND OAKS, Calif., Jan. 9 /PRNewswire/ -- WellPoint NextRx, the nation's largest health plan-owned pharmacy benefits manager (PBM), today announced it has been awarded a three-year contract with the Missouri Department of Transportation and Missouri Highway Patrol Medical and Life Insurance Plan (MoDOT) effective January 1, 2007. Under this contract, WellPoint NextRx will provide pharmacy benefit management to an estimated 27,500 covered lives. WellPoint NextRx will provide MoDOT with pharmacy benefits management services, utilizing a fully integrated management systems, to provide claims processing, network management mail services, specialty drug services, formulary management and prior authorization services. WellPointNextRx will also support MoDOT's clinical programs, drug utilization review and Medicare Part D.www.wellpoint.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. DFA Capital Management Inc. Releases ADVISE(TM) Version 3.11 PURCHASE, N.Y., Jan. 9 /PRNewswire-FirstCall/ -- DFA Capital Management Inc., a leading provider of Dynamic Financial Analysis software solutions to the insurance industry, today announced the release of ADVISE Version 3.11 for production use worldwide. This latest release introduces Collateralized Mortgage Obligations (CMOs) as a natively modeled asset class and features enhancements that increase accuracy and breadth of coverage for both U.S. and European users. www.dfa.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. ACS Expands IT Services Agreement With Symetra Financial DALLAS, Jan. 9 /PRNewswire-FirstCall/ -- Affiliated Computer Services, Inc. (NYSE: ACS), a premier provider of business process outsourcing and information technology solutions, announced today that it has been awarded an expansion to its multi-million dollar contract with Symetra Financial, a leading life insurance and financial services company. The expanded agreement will add desk-side support services to ACS' existing five-year contract, which commenced in 2004. www.symetra.com www.acs-inc.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Amid Worry About the Solvency of Social Security, Those Over 50 Face the Long Term Care Question ONTARIO, Calif., Jan. 9 /PRNewswire/ -- Frank N. Darras, the nation's leading disability and long term care insurance lawyer, recognizes that many Americans are questioning the solvency of Social Security and making alternate choices for their financial futures. The insurance industry is offering a variety of Long Term Care insurance policies, targeted at over 75 million Americans who are over 50. Every year, this number increases by 4 million, says Darras. See www.sbd-law.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. AEGON Opens Public & Regulatory Affairs Representative Office in Brussels THE HAGUE, January 9 /PRNewswire-FirstCall/ -- AEGON - one of the world's leading providers of life insurance and pension products and services - has opened a Public & Regulatory Affairs Representative Office in Brussels. The new office reflects AEGON's acknowledgement of the growing number of public policy issues that impact the financial services sector in general and the life and pensions business in particular. Therefore AEGON is enhancing its commitment of being a reliable and knowledgeable partner in the process of developing sound government policies. www.aegon.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Nickelodeon Inks Deal with State Farm(R) NEW YORK, Jan. 8 /PRNewswire/ -- Nickelodeon, the number-one entertainment brand for kids, has partnered with State Farm, the nation's largest insurer of cars and homes, in a multi-platform advertising and promotional sponsorship. The new alliance will incorporate several Nickelodeon assets that primarily reach parents, kids and families. The agreement was announced today by Jim Perry, Executive Vice President of 360 Brand Sales, Nickelodeon and MTVN Kids and Family Group, and Mark Gibson, Assistant Vice President -- Advertising, State Farm Insurance. www.NickJr.com www.statefarm.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. Virtual Management Systems to offer COBRA Administrative Services via their Employee Benefit HR Management Solution (HR Support Center) Bend, OR December 19, 2006: Virtual Management Systems (VMS), a web-based Employee Benefits HR Management Solution has partnered with Kansas City based COBRAGUARD, Inc. to add COBRA Administrative Services to it’s (HR Support Center). Virtual Management System’s subscriber Insurance Agencies can now provide a solution for their clients in need of Cobra Compliance assistance, easily accessible within the (VMS) portal. Due to the value added relationship created, Agencies offering their Group Health Clients the (HR Support Center) portal can enjoy a deeply discounted rate on the cost of COBRA administrative services. Furthermore, Cobra Guard agents and clients can subscribe to (VMS) services at similar savings, while obtaining the most practical cost effective HR Management System available. www.virtualmgtsystems.com www.cobraguard.net Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. S. M. Snow & Associates To Hold Their “Experience Rating” Seminar In Las Vegas On March 26-27 S. M. Snow & Associates, Inc. will present its “Experience Rating Boot Camp” seminar in Las Vegas on March 26-27. This seminar examines every aspect of experience rating in a comprehensive manner and focuses on group health insurance. This seminar was specifically designed with two distinct audiences in mind: Brokers, Consultants, and Sales Professionals and Underwriters and Actuaries. www.smsnow.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. Market Barometer - December 2006 2006 Ends with Soft Market in Full Stride MarketScout reports December rates are down 8%, affirming the continuation of the soft market. Calendar year 2006 started with a rate decrease of 6% and rates became marginally softer throughout the end of the year. MarketScout compiles monthly composite market reports on the property and casualty industry using data collected from its eInsurance Exchange where over 40 "A" rated insurance companies representing over 300 different industries and coverage classifications can be accessed by the 58,000 plus MarketScout registered users. The National Alliance for Insurance Education & Research assists MarketScout by surveying agents, brokers, and underwriters attending their monthly continuing education programs. www.marketscout.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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