Daily Quote: "Decision is a sharp knife that cuts clean and straight. Indecision is a dull one that hacks and tears and leaves ragged edges behind." - - Jan McKeithen
A New Way to Reach the Boomer Market With U.S. retirement assets expected to reach $19.5 trillion over the next five years, more financial advisors than ever before are focusing their practices on people moving through mid-life. This unique group of clients represents about 26% of the total population. To serve them well, many advisors are exploring ways to expand their understanding of this key market. “What people tend to miss when targeting this broad segment are the attitudinal factors,” commented David A. Littell, professor at The American College in Bryn Mawr, PA. “For example, people in this demographic often see themselves as being about 15 years younger than their chronological age. That view can impact purchasing decisions, financial planning choices and tolerance for financial risk.” Littell is instrumental in driving the innovative CASLTM program, five courses that provide an unprecedented depth of information about all aspects of the boomer market. “Understanding the role of life transitions in thinking about retirement is just as important as understanding the technical aspects of preparing the financial plan,” said Littell. “That’s why our first course in the CASL program focuses on social gerontology and related issues.” Other courses cover investments and wealth management, estate planning, health and long-term care financing and retirement income distribution strategies. For more information on the Chartered Advisor for Senior Living (CASL) program, call a student services counselor Monday-Friday 8:00am - 6:00pm, Eastern at 1-888-263-7265, or visit our website at theamericancollege.edu/CASL. 1. Treatment may fuel cancer's spread, study finds Thu Apr 5, 2007 10:15pm ET By Maggie Fox, Health and Science Editor WASHINGTON (Reuters) - Treating cancer with surgery, chemotherapy or radiation may sometimes cause tumors to spread and U.S. researchers said on Thursday they may have nailed down one of the causes -- a compound called TGF-beta. Tests in mice show that using the chemotherapy drug doxorubicin or radiation both raised levels of TGF-beta, which in turn helped breast cancer tumors spread to the lung. But using an antibody to block TGF-beta stopped the process, Dr. Carlos Arteaga and colleagues at Vanderbilt University in Tennessee reported. Developing drugs that block TGF-beta might help prevent cancer from recurring, Arteaga's team reports in the May issue of the Journal of Clinical Investigation. "The repopulation and progression of tumors after anti-cancer therapy is a well-recognized phenomenon," the researchers wrote. "It has been shown to occur following radiotherapy, chemotherapy, and surgery." Cancer experts have wondered if the so-called primary tumor -- the first and biggest tumor -- might somehow suppress the growth of other tumors, and that removing or destroying the first tumor might allow other, undetectable, tumors to then grow. TGF-beta, which is involved in both the growth and suppression of tumors, may hold part of the answer, Arteaga's team said. When mice infected with human breast cancer cells were treated with radiation or doxorubicin, they had higher levels of TGF-beta in their blood. They also had more tiny tumor cells in their blood, and these cells metastasized, or spread, to the lungs. When the mice were treated with an antibody that suppresses TGF-beta, the spread stopped. And this spreading process did not occur at all in mice bred to lack the TGF-beta protein. "We wondered then if TGF-beta induced by anti-cancer therapies can serve as a survival signal for tumor cells, thus allowing them to withstand therapy and later recur," Arteaga said in a statement. His team is now testing TGF-beta levels in the blood of breast cancer patients. "We'll be looking to see in what proportion of patients the serum and tumor TGF-beta goes up, and whether the increase correlates with the inability of the therapy to eliminate the cancer in the breast," Arteaga said. Higher levels of TGF-beta after treatment may be a way to predict which patients are likely to have their cancer come back after treatment, Arteaga said. His team is also testing drugs that interfere with TGF-beta to see if they improve survival. "It probably isn't just TGF-beta that is having this effect," Arteaga said. Many other compounds, including some immune system signaling chemicals, are also associated with tumor spread and growth. "TGF-beta may be just the tip of the iceberg," Arteaga said. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Unum says cancer still No. 1 cause of disability, but survival and return-to-work rates are increasing CHATTANOOGA, Tenn. (April 5, 2007) – Cancer continues to be the No.1 cause of long-term disability, Unum (NYSE: UNM) reports in its sixth annual review of disability claims. Unum, the leading provider of group disability insurance in the United States, says that cancer was responsible for more than 12 percent of its long-term disability claims in 2006, with breast, colon and prostate cancer as the most prevalent types. For short term disability, pregnancy topped the list. “The emotional, financial and workplace impact of cancer is significant and it will continue to grow, as the American Cancer Society says the prevalence of cancer will double by 2030,” says Kenneth Mitchell, Ph.D., Unum vice president of health and productivity. The National Institutes of Health estimates overall costs for cancer in 2006 at $206.3 billion: $78.2 billion for direct medical costs; $17.9 billion for cost of lost productivity due to illness; and $110.2 billion for cost of lost productivity due to premature death. There has been remarkable improvement over the past 20 years, however, in the survival rates for cancer beyond the five-year mark. The National Cancer Institute reports a 100 percent five-year survival rate for prostate cancer, 89 percent for breast cancer and 65 percent for colon cancer. “For many, a cancer diagnosis no longer means permanent disability or death,” Mitchell said. “With the success of new screening and treatment protocols, various cancers are becoming more of a chronic disease to be managed. It’s about living beyond the disease.” Unum’s data reflects this trend. Individuals filing a disability claim for breast, colon or prostate cancer are beating the disease in greater numbers and returning to the workforce. Since 2001, we report the following:
For the same time period, Unum reports a dramatic increase in the sales of voluntary critical illness and cancer policies. In 2006, the company sold 85 percent more of these voluntary policies than in 2002. “It’s good news that cancer care is increasingly effective in improving survival rates,” says Mike Simonds, senior vice president of product development and marketing. “However, the treatment and recovery typically imposes a significant financial burden. Benefits provided through a voluntary critical illness policy can provide valuable financial support during a stressful life experience.” Top causes of disability absence for 2006 Besides cancer and pregnancy, Unum’s research has identified other leading causes of disability absence in 2006. This annual report on disability trends is based upon 2006 data from the company’s disability database – the largest private database of its kind in this country. The database tracks 26.8 million covered individuals and an estimated 178,000 employer policyholders. The causes of claims and the percentage received for each cause were as follows: Long term
Short term
Unum received more than 400,000 new disability claims in 2006 and paid $4.2 billion in disability benefits to individuals and their families. About Unum Unum (www.unum.com), formerly UnumProvident, is one of the leading providers of employee benefits products and services, and the largest provider of group and individual disability income protection insurance in the United States and the United Kingdom. Through its subsidiaries, Unum Group insures more than 25 million people and provided $6.2 billion in total benefits to customers in 2006. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Analysis shows climate change is already increasing financial losses from weather-related catastrophes London, U.K. - April 6, 2007 - Global warming is already causing an increase in financial losses from extreme weather events according to Risk Management Solutions (RMS), the leading catastrophe risk modeling company. This warning is issued in advance of the April 6, 2007 publication of the latest report by the Intergovernmental Panel on Climate Change (IPCC). Dr. Robert Muir-Wood, chief research officer of RMS, is a lead author on the chapter on 'Industry, Settlement, and Society' for the IPCC report on impacts, adaptation and vulnerability, of which the 'Summary for Policymakers' is published today. Dr Robert Muir-Wood said: "It is clear that weather-related hazards are already increasing in some regions of the world due to climate change, and as a result, financial losses from extreme weather catastrophes, such as floods, droughts, heatwaves and storms, are also increasing. The increases in extreme weather have placed our current systems for risk management, such as insurance, under stress. Future predicted increases in extreme weather events will require accelerating investments in adaptation strategies for human populations." Dr. Muir-Wood's detailed analysis of insurance industry and economic loss data has shown that financial losses from weather-related catastrophes have increased by an average of 2% per year since the 1970s, even when changes in wealth, inflation and population growth are taken into account. The research was used by Sir Nicholas Stern in his review of the economics of climate change to calculate that the costs of extreme weather alone could reach 0.5%-1% of world GDP by the middle of the century, and that the costs will keep rising as the world continues to warm. Dr. Muir-Wood added: "Wealthy developed countries have much greater means than poorer countries to deal with the increased costs of weather-related catastrophes and to adapt to the changing climate hazards. However, even the wealthiest countries will find it a challenge to adapt quickly and effectively to the increased hazards posed by climate change. We can expect more situations like the flooding of New Orleans, where current infrastructure is inadequate to protect populations. In areas of rising risk, governments will be placed under increasing pressure to provide state-backed alternatives to private insurance, as has already been happening in Florida." RMS provides models and expertise to help insurance companies and other businesses estimate the risk of financial losses from natural and man-made catastrophes. Recognizing the need for continued evaluation and exploration of the financial impacts of future climate risk, in early 2007 RMS appointed Dr. Celine Herweijer to the position of Principal Scientist, Future Climate. In this role, Dr. Herweijer is leading RMS work around the wide-ranging implications of future climate risk for today's economic, business, and political decisions. Dr Herweijer commented: "Even if we manage to stabilise atmospheric concentrations of greenhouse gases, we are still going to have to cope with rising sea levels and, in places, increases in the severity and frequency of climate hazards for the coming decades. It is not only governments that will have to adapt to these greater hazards, but also businesses. In addition to the issue of corporate social responsibility, companies must evaluate how climate change may impact their services, infrastructure and investments. At RMS we are already looking at how climate change can be taken into account in our models of current risk, as well as developing new ways of measuring how risk will change in the future." www.rms.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Barack Obama Renews His Call for Investigation into Long-Term Care Abuse During Community Meeting on Health Care in Iowa MASON CITY, Iowa--(BUSINESS WIRE)--During a community meeting on Health Care in Mason City, Iowa this morning, Barack Obama renewed his call for an investigation into the abuses in the long-term care business. “Today I am renewing my call for an investigation into the fraud that is running rampant in the long-term care business,” said Barack Obama. “We’re going to end it because it’s about time Washington stood up to insurance companies so that families and seniors across the country can get the care they deserve.” The community meeting on Health Care this morning was Obama’s second in what will be a series of similar gatherings across the country where he will listen to providers, consumers, and experts about their experiences with the Health Care system. On March 29, Obama wrote a letter to the head of the Government Accountability Office calling for an investigation into long-term care following a report in the New York Times of a high number of claims being denied, and practices that make it "difficult – if not impossible – for policyholders to get paid." (complete letter enclosed below) April 5, 2007 The Honorable David M. Walker Comptroller General U.S. Government Accountability Office 441 G Street, NW Washington, DC 20548 Dear Mr. Walker: A March 26, 2007, article in the New York Times investigated the practices of several long-term care insurers and reported a number of troubling findings about practices that "make it difficult - if not impossible - for policyholders to get paid." According to the article, nearly 1 in every 4 long-term care claims in California was denied in 2005. Nearly 9 million long-term care policies had been sold as of 2002, the most recent year for which data were available, with about 80 percent purchased through the individual market and the remaining 20 percent purchased through the group market. These products provide elderly Americans with coverage for care in their homes, assisted living facilities, and nursing homes. This range of services is critical for the health and financial well-being of seniors, 70 percent of whom will require long-term care at some point in their lives. Long-term care is a problem of national significance. As the baby boomers age, policymakers are struggling to design a long-term care system that meets the needs of Americans with disabilities. While progress has been made, the long-term care system is heavily biased towards institutional care, and the quality of care is often poor. Moreover, nursing home and home care are very expensive, and Medicare coverage for both is limited. As a result, catastrophic out-of-pocket expenses for nursing home and home care by American's older people are routine, forcing many to rely on Medicaid to finance the care they need. The federal government has taken steps to promote the use of long-term care insurance. The Long-Term Care Partnership Program, a public-private partnership between states and private insurance companies, is one such example. The Federal Long Term Care Insurance Program, sponsored by the Office of Personnel Management for federal employees, is a second example. In addition, the Health Insurance Portability and Accountability Act has profoundly shaped the long-term care market by establishing standards regarding the characteristics of policies whose premiums can count towards the tax deduction available for health care costs that exceed 7.5 percent of income. I have a number of serious concerns about the long-term care insurance market and its ability to fulfill its promise to its policyholders. First, I am concerned about the possible arbitrary denial of insurance benefits to seniors at their time of need. Second, I am concerned that some insurers may be enticing individuals to buy policies by offering low premiums, and then sharply increasing premiums if lapse rates are not as high as assumed in the premium calculations. Third, a substantial percentage of policies do not offer inflation adjustments, resulting in a significant erosion of purchasing power in later years. Even worse, some companies offer "inflation coverage" which allows policyholders to purchase additional coverage at a later date, but at the price charged older purchasers. Premiums increase dramatically by age, and individuals who elect to buy coverage later may not realize that such coverage will be extremely expensive, which may be financially infeasible. Given the role of the federal government in long-term care financing, I request that GAO investigate these allegations and the adequacy of state and federal regulation. Specifically, I request that GAO review the practices of these insurers in order to assess the following: -- Rate of denial of claims, and as feasible, the extent to which denials were justifiable; -- Types of policies purchased, including the percentage of policies that do adjust and do not adjust for inflation and those that allow for purchase of additional coverage at a later date; -- Estimated loss of purchasing power for those individuals that have policies without inflation adjustment provisions; -- Frequency and amount of premium increases in already purchased policies, average lapse rates of policyholders, and the correlation between premium increases and lapse rates; -- Extent to which long-term care policies are marketed to individuals that would likely qualify for Medicaid or may not have substantial assets to protect; and -- What, if any, additional federal regulation is needed. Thank you. Sincerely, Barack Obama United States Senator Contacts Obama for President Bill Burton or Jen Psaki, 312-819-2423 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Fitch Looks at '06 P/C Insurance Results; 2007 Hurricane Season May Be Volatile NEW YORK--(BUSINESS WIRE)--The U.S. property/casualty insurance industry reported record net profits in 2006, buoyed by benign natural catastrophe activity, positive loss reserve development and a favorable insurance pricing environment that remains despite recent market softening in many non-catastrophe-affected segments, Fitch said today. Concurrently, preliminary forecasts for Atlantic seasonal hurricane activity support an above-average probability of a major hurricane landfall in the United States in 2007, which could provide a litmus test for the industry's ability to adapt. Organizations that fail to demonstrate that they have reacted to greater capital exposure to catastrophe losses are likely to experience negative rating actions, especially if this failure is illustrated by large insured losses from 2007 natural catastrophes. Fitch has drawn several conclusions from insurers' year-end 2006 operating results. First, underwriters' overall strong underwriting results reinforce Fitch's previously held contention that although pricing has softened in most lines, rates remain at levels more than adequate to support attractive underwriting returns. While competitive factors are likely to promote further deterioration in rates, particularly in non-catastrophe-exposed lines, Fitch expects insurers to post a strong underwriting profit in 2007, assuming that incurred catastrophe losses approximate historical average levels and that the impact of adverse reserve development is either modestly favorable or largely neutral. Fitch has compiled GAAP earnings release and 10-K filing data from publicly traded property/casualty insurers in our debt rating universe, as well as several other insurance organizations of interest, to evaluate full-year 2006 performance. Earned premium revenue growth for this group of 52 property/casualty organizations increased 2.8%, continuing a trend of sequential deceleration due to softening insurance rates in non-catastrophe-exposed lines. Underwriting results improved significantly for the universe in aggregate in 2006 relative to the prior year and net income for the group more than doubled. The reinsurers in our universe saw the largest relative gains from 2005. Each of the 13 reinsurers in our universe achieved an underwriting profit in 2006 and reported healthy operating profits reflected by operating returns on equity that ranged from the mid-teens to the high 20%'s. In contrast, only one reinsurer (Arch Capital) reported an underwriting profit in 2005, and nine of these 13 companies reported a net operating loss for the year. To access this Special report, 'Property/Casualty Insurers' Year-End 2006 Review (U.S.)', please visit www.fitchratings.com under Financial Institutions > Insurance > Special Reports Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
Key Benefit Resources: (877) 907-5511, sbell@keybenefitresources.com, www.keybenefitresources.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. S&P: Takaful May Stimulate Middle East Insurance Growth But Business Model Is Unproven, Says Report LONDON April 5, 2007--Takaful insurance could be the key to increasing insurance awareness and delivering on customer expectations in the Gulf Cooperation Council (GCC), capitalizing on the positive economic dynamics of the region, according to a report ("Takaful: A New And Viable Insurance Business Model Or Just A Marketing Opportunity?") published today by Standard & Poor's Ratings Services. "The opportunities for increased uptake of takaful in the GCC are positive because the considerable economic growth in the region, coupled with a sizable, underinsured population, means that there are substantial prospects for further development of personal lines cover," said Standard & Poor's credit analyst Jelena Bjelanovic. "The ability of the industry to demonstrate the need for and benefits of insurance, as well as to successfully meet customer demands, remains unproven, however." Over time, if the world average insurance premium of $550 per capita is achieved and applied to the Gulf states, the GCC insurance market has a potential size of $20 billion (currently $4.6 billion). Taking as an example Malaysia, where the takaful market is expected to contribute 20% to the overall market in the medium term, the GCC takaful market has the potential to reach $4 billion at the current level of development (currently $170 million). How much actual premium the takaful sector generates and how quickly it will do so remains to be seen, however, and will depend on the industry's ability to deliver on policyholder expectations. "In terms of credit ratings for the takaful sector, we will apply the same analytical process as for the traditional market, but will also take into account the sector's positive growth dynamics and high execution risk," said Ms. Bjelanovic. www.ratingsdirect.com www.standardandpoors.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Life Insurance Finance Association Hosts Webinar to Discuss NAIC Viatical Law Model Act Harmful to Consumer Rights; LIFA Calls on NAIC to Withdraw and Re-Draft Act ATLANTA--(BUSINESS WIRE)--In response to the National Association of Insurance Commissioners’ (NAIC) decision to re-adopt the changes to the Viatical Settlements Model Act and upcoming National Conference of Insurance Legislators (NCOIL) meetings, the Life Insurance Finance Association (LIFA) will host a webinar on April 17 at 10 a.m. PT to discuss the impact of this model, the potential for adoption in the states and the role of the NCOIL. “The actions taken by the NAIC threaten the existence of many insurance-related businesses and take away consumer rights,” said Scott Cipinko, executive director, LIFA. “We encourage all who are involved in the industry to attend the LIFA webinar to learn how this decision could potentially impact the industry and how they might influence future decisions.” Cipinko added that the problem is, whether through carelessly overbroad scope or through opportunistic overreaching, most of the proposed remedies offered to the problem of stranger-initiated life insurance are so broad that they end up prohibiting or severely limiting legitimate life insurance premium-finance transactions and thereby harming the consumers they were trying to protect. Restricting the availability of proper life insurance premium-finance loans does a tremendous disservice to consumers and everyone else involved in the creation and maintenance of this valuable product. “NCOIL will be meeting again in the next few months; however, the NAIC action was taken prior to the meeting and despite the NCOIL vote telling NAIC not to accept the proposal,” said Cipinko. “As a result of the situation raised by the inability or refusal of the NAIC committee to fully discuss the model and once again rushing the judgment, LIFA will hold a webinar Tuesday, April 17 to give the life insurance-finance industry a voice in the matter.” Further, LIFA will discuss ongoing litigation and other related matters during the webinar. The cost to attend the webinar is $195 per person. The webinar registration fee can be put toward membership to LIFA if registrants sign up for an annual membership costing $1,000 at the time of registering for the webinar. Most major credit cards will be accepted as a form of payment. To register for the event, contact Angie Robert at arobert@lifefirms.com or 858/576-8067. For more information regarding LIFA’s position on these issues, contact Cipinko at 678/858-4001 or scipinko@lifaorg.org. www.lifaorg.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Peachtree Life Settlements Appointed Originator and Servicer for German Life Settlement Fund BOYNTON BEACH, Fla.--(BUSINESS WIRE)--Peachtree Life Settlements was recently appointed as an approved originator and servicer for a large German life settlement fund. This fund is the most recent in a series of funds marketed and managed in Germany by the fund initiator which is part of a multi-national European banking giant. www.PeachtreeSettlementFunding.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. S&P: Health Care Conference Discusses Trends In Managed Care NEW YORK April 4, 2007--Driven by increasing political attention on health care reform and strong capital levels that are prompting lower--but still rational--margins and stable medical costs, Standard & Poor's Ratings Services anticipates a more stable outlook on the U.S. health insurance industry (the managed care business) in 2007 following four high-profile upgrades. "For most of the health insurance and managed care sector, earnings and capital surpluses have been extremely strong, and several of the largest players are strengthening their competitive positions through greater diversification and enhanced capabilities," said Standard & Poor's credit analyst Shellie Stoddard at the recent Standard & Poor's Health Finance Conference in Orlando, Fla. According to Ms. Stoddard, a wave of consolidation in the industry is also generating substantial cost savings and a degree of pricing power for some insurers. "Our sense is that many of the large hospital systems and strong single-site hospital providers still have quite a bit of negotiating leverage with the private health insurers," she said. "Given continuation of consolidation [consolidation has been strong since 2004] among the health plans, however, some of this negotiating leverage could shift back to the insurers." "It really comes down to collaborative partnerships," said Ms. Stoddard. "The larger health plans are the ones that have the more sophisticated pay-for-performance programs, and they partner with those hospitals obviously that have the ability to measure performance and collaborate in that way." Hospital providers are increasingly focusing on improving quality and patient safety as pay-for-performance programs become more prevalent. Thus far in 2007, Standard & Poor's credit upgrades among the health insurers significantly outpaced downgrades. "So far this year, the sector has had a very good run in terms of upgrades versus downgrades," said Ms. Stoddard. "Earlier this month, we upgraded four of our largest companies: CIGNA Corp., Coventry Health Care Inc., Health Care Service Corp., and Health Net Inc. However, negative outlooks now exceed positive outlooks by eight to four." A consistent theme in the rating actions is an enhanced competitive position and earnings quality that comes from size and scale, which stems from either being a consolidator or benefiting from the consolidated environment. "At the same time, the consolidation that has occurred over the last 10 years or so has created very strong barriers to entry," said Ms. Stoddard. "The barriers to entry are attributed to the strong networks that the companies have. It's pretty hard for a new player to come into the market and be underpriced without having that network." Addressing the topic of earnings and capital, Ms. Stoddard noted that these areas remain key drivers in Standard & Poor's ratings analysis. "Among the not-for-profit companies, this is becoming an opportunity to become a little more price competitive, and we're hearing this throughout the industry," she added. Stable medical cost trends have also contributed to our positive and prospective stable outlook on the sector. Looking ahead to the next 12 months, however, if medical costs were to spike upward, companies in the sector could have earnings problems. "With price competition, premium increases are going to drop a little bit further, about equal to the estimated medical trend, which is remaining even. What that says to us is there's no more margin expansion in this business," said Ms. Stoddard. "It'll be interesting to see going forward, whether or not there will be margin declines." Future pressure on health-plan profitability could dampen the positive revenue environment that many of Standard & Poor's rated not-for-profit health care providers have enjoyed for the past three years. Many providers have already reported lower managed care rate increases compared with the more robust levels that they had received a few years back. Turning to the regulatory climate, Ms. Stoddard noted that it has generally been favorable in the last few years but that could change with the political realignment that has seen the Democrats take control of both houses of Congress. There have been significant state proposals as well. "The insurers are conscious of changing political tides and a renewed populism," said Ms. Stoddard. "They are proactively engaged in health care policy development and hope to avoid greater government intervention." www.ratingsdirect.com www.standardandpoors.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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11. Still River Announces RetirementWORKS® for YOU: Financial Planning Software for Retirees HARVARD, Mass.--(BUSINESS WIRE)--Still River today announced the release of a new retirement planning tool for consumers who are approaching retirement or who are already retired. The financial planning needs of seniors are much more complex than others, and the consequences of inadequate planning are much more serious. Until now, no software, available commercially or provided by financial companies, comes close to meeting the real needs of people facing retirement. RetirementWORKS® for YOU is a holistic system that provides advice based on comprehensive, detailed and integrated analysis. Instead of asking just a few questions, it asks for a wide range of financial and non-financial information, which it then uses to identify the specific concerns that apply to your individual household. Then it recommends what action you should take and evaluates the long-term adequacy of your financial position. www.StillRiverRetire.com/RW2/RW24U.asp Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. ClaimVantage Delivers Support for JBoss Rules and Workflow Portland, Maine — Mar. 27th, 2007 — ClaimVantage, an innovator in workflow and rules based claims and payment software solutions, announced the integration of the JBoss Rules and JBoss jBPM (workflow) engines with the ClaimVantage product suite. A recent claim survey sponsored by ClaimVantage indicated that insurance carriers want flexibility to deliver; copy and reuse existing rules and workflow to support the business process. “This functionality is critical to insurance carriers who want to maintain their own repository of business rules and workflow processes,” says Ted Nutter, President and CTO of ClaimVantage. “This approach provides the insurance carrier with total flexibility to react to customer expectations and changes to product plans”. www.claimvantage.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Fifth Third Bank, RMS To Offer Electronic Data Option to Healthcare Industry HIPAA-Compliant Data Conversion Solution Streamlines Receivables Processes for Healthcare Providers, Payers Cincinnati – Fifth Third Bank’s Treasury Management division today announced it has entered into a strategic relationship with Revenue Management Solutions (RMS), a medical payment and remittance system provider. The relationship will bring industry-leading paper electronification tools to the firm’s clients and represents a major milestone in Fifth Third Bank’s long history of commitment to the healthcare industry. With this new capability, paper Explanation of Benefits (EOBs), currently captured as images within Fifth Third’s nationwide lockbox network, can now be converted into HIPAA-compliant data files using RMS’ proprietary technology. (HIPAA refers to the Healthcare Insurance Portability and Accountability Act of 1996.) By converting paper documents into electronic images, healthcare clients can streamline their receivables process and shorten their revenue cycle. For information about Fifth Third Bank and its healthcare solutions, please visit www.53.com. For information about RMS, please visit www.revmansolutions.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Saving for the Future is Easier than You May Think Bridgewater, New Jersey — April 6, 2007 — If you’re one of the millions of consumers receiving a tax refund or bonus this time of year, you may be uncertain about the best way to spend or save your hard-earned dollars. What’s the best way to begin a savings plan or invest for the future? According to experts, the appropriate course depends upon life circumstances, including financial condition, short-and long-term goals, and the needs of your dependents. “Many people think of their tax refund as extra spending money, but they should consider setting at least a portion aside for the future,” said Donna DeMaio, president of MetLife Bank. “Extra money represents an opportunity to start planning for a retirement or saving for a child’s education. Saving is a critical issue, because financial advisors warn that many Americans are living paycheck to paycheck, and endangering their ability to live comfortably in their golden years.” Here are some options to consider:
As part of its Life Advice program, MetLife is offering two brochures, on “Investing Basics” and “Building Financial Freedom,” to help people better understand the intricacies of investing and take appropriate steps to prepare for the future. The brochures are available by calling 1-800-MET-LIFE (1-800-638-5433) or by visiting www.metlife.com. www.metlifebank.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. RiskMeter Online Releases New Storm Surge Report Boston, MA, April 2007 - CDS Business Mapping, LLC a leader in online hazard mapping, today announced it has added a new storm surge report to its RiskMeter Online (www.RiskMeter.com) real-time, natural hazard risk report service. Currently, this report is available in the following states: AL, FL, GA, LA, MA, MS, NC, NH, NY, SC, TX with more states to be added in the next couple of weeks. The RiskMeter Online’s Storm Surge report is based upon the well known and respected SLOSH (Sea, Lake, and Overland Surges from Hurricanes) storm surge model. This report will let users know if a property falls within an area likely to flood from a hurricane of a specific strength, as well as the maximum storm surge height for each category of storm. This report also improves on flaws with existing storm surge models, providing insurers with an easy to use tool with more information. Although flood maps approximate storm surge levels, RiskMeter’s storm surge reports are more detailed and provide users with a more realistic assessment of coastal flooding. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
16. National Association of Mutual Insurance Companies Joins Insurance Research Council MALVERN, Pa (April 5, 2007) — The National Association of Mutual Insurance Companies (NAMIC) and the Insurance Research Council (IRC) announced today that NAMIC has joined nine insurance companies as the newest member of the IRC. NAMIC is a national trade association representing more than 1,400 property/casualty insurance companies, the vast majority of which are mutual carriers. IRC is a public policy research organization providing objective analysis on a broad range of issues of vital interest to insurers, consumers, and public policymakers. www.namic.org The Insurance Research Council, founded in 1977, is an independent, nonprofit research organization supported by leading property/ casualty insurance organizations. IRC is devoted solely to research and the communication of its research findings. In addition to NAMIC, current members of the IRC include:
IRC is a division of the American Institute for CPCU and the Insurance Institute of America. More information about IRC can be found at the IRC’s Website, www.ircweb.org or by calling 610.644.2212, ext. 7569. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. A.M. Best Launches New Online Consumer Insurance Information Center OLDWICK, N.J., April 5, 2007— A.M. Best Co. has launched Best’s Consumer Insurance Information Center, an online resource designed to inform consumers about the various insurance options available to them, and to demonstrate the importance of an insurer’s Best’s Financial Strength Rating in determining how likely the company is to fulfill its financial obligations to policyholders. www.ambest.com/consumers Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Florida Office Announces Adoption Of The Home Structure Rating System (Hsrs) TALLAHASSEE (04/04/2007) - The Florida Office of Insurance Regulation (Office) has issued a report officially recommending the Home Structure Rating System (HSRS). The report satisfies requirements of Senate Bill 1980 during the 2006 Legislature, and House Bill1-A during the 2007 Special Legislative Session, which required the Office to develop a new rating system. The rating system scores homes on a scale of 1 to 100 to measure a home's relative ability to withstand severe windstorm damage. "The adoption of a uniform scoring system for home safety is long overdue," commented Insurance Commissioner Kevin McCarty, "For many Floridians, buying a home is the most important decision a family can make. Having this additional information will allow families to know how a house will endure hurricanes, and how mitigation measures affect insurance costs." The Office worked with the University of Florida's Shimberg Center for Affordable Housing and Applied Research Associates, Inc. to complete the study and issue the report. The HSRS Advisory Board included mitigation experts, home builders, insurance experts and representatives from academia. "The HSRS rating system provides further evidence that Florida is a national leader in hurricane mitigation technology and information," added Commissioner McCarty. The Advisory Board concurred with the HSRS Methodology by unanimous vote during its March 21, 2007 meeting. The primary factors used to calculate the HSRS score include roof shape, secondary water resistance, roof cover, roof deck attachment, roof-to-wall connection, opening protection, number of stories, and roof covering type in addition to general geographic features of wind zone location and local terrain. A copy of the report is available at: http://www.floir.com/HomeStructureRatingSystem.htm. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Report Released On Use Of Occupation And Education As Factors In Determining Rates And Underwriting TALLAHASSEE (04/02/2007) - The Florida Office of Insurance Regulation (Office) today issued a report analyzing the insurance industry's use of occupation and education for the underwriting and rating of auto insurance policies. The report finds the use of these practices unintentionally harms minorities and low-income individuals in determining auto insurance premiums and insurance eligibility. "Let me be perfectly clear," states Commissioner Kevin McCarty, "this practice is legal under current Florida law. However, similar to insurance companies' past use of credit scoring, this practice creates unintended effects that policymakers may find unacceptable." In 2003, the Florida Legislature passed Section 626.9741 severely limiting the use of credit scoring in insurance underwriting after this practice was also shown to disproportionately impact minorities and low-income individuals. As early as 2004, the Office informed the industry that utilizing the factors of occupation and education for underwriting and rating was questionable, and the Office advised the industry to cease within one year. More recently, GEICO's high-profile use of education and occupation in auto insurance premium determination has garnered national attention. A St. Petersburg Times' article showed differences in education and occupation produced dramatically different premiums for individuals with similar driving records and vehicles. The Office issued subpoenas to several company groups including those representing GEICO, Liberty Mutual and AIG to evaluate their use of occupation and education for rating and underwriting decisions. The Office held the public hearing in Tallahassee on February 9, 2007, and the Office's report is based on this hearing. All three insurance company groups utilizing these practices claimed they were doing so on a "color-blind" basis as they do not collect race or income information; Yet these companies openly admitted they have not researched the potential impact of their practices on vulnerable classes of consumers. Another concern is this practice could proliferate, as companies not using these factors may be at a competitive disadvantage, and forced to adopt these practices to effectively compete. A copy of the report is available at http://www.floir.com/pdf/OCCRateRpt.pdf. A taped broadcast of the hearing, produced by The Florida Channel, is also available at http://www.floir.com/pcfr/RateHearingVideo.htm (under the letter "O"). The transcript is available at http://www.floir.com/pdf/occtranscriptv1.pdf (Volume I) and http://www.floir.com/pdf/occtranscriptv2.pdf (Volume II). 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21. Public Hearing Set For Nationwide Rate Filing Tallahassee (March 30, 2007) - The Florida Office of Insurance Regulation (Office) has scheduled a public hearing on a rate filing submitted by Nationwide Insurance Company of Florida (Nationwide). The hearing for this rate filing will be held in Tallahassee, in the Cabinet Room, Lower Level, at The Capitol. The hearing will be held on April 2, 2006. Nationwide has requested an average statewide rate increase of 70 percent for its dwelling fire program under Florida's "file-and-use" provision, with an effective date of June 30, 2007. The public hearing for this rate filing is scheduled for April 2, 2006, at 10:00 a.m. The requested rates are not uniform and some areas in the state are subject to higher or lower rate changes. Florida law requires that the Office hold public hearings on rate filings requesting a statewide average increase of 15 percent or higher, or for any reason the Office deems necessary. These hearings are open to the public, and input from interested parties is welcomed. The hearings will be taped by the Florida Channel and video will be available online along with agendas at www.floir.com under the Public Rate Hearings portion of the website. Those unable to attend the public hearings are welcome to forward comments to the Office at ratehearings@fldfs.com. The subject line of emails should include the name of the company of interest and the words rate hearing. Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this hearing should telephone Sam Coskey at (850) 413-2616 or e-mail him at sam.coskey@fldfs.com at least 48 hours prior to the hearing. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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