INSURANCE NEWSCAST for Friday, 04/13/07 from www.InsuranceBroadcasting.c

Daily Quote: "Life is mostly a self-fulfilling prophecy." - - Bill Hycee

1. Scruggs Katrina Group - E-mail Shows Insurance Companies Pressured Engineers to Blame Destruction on Flooding

The information below was taken from the Scruggs Katrina Group website on Thursday, 04/12/07.

E-mail Shows Insurance Companies Pressured Engineers to Blame Destruction on Flooding

An attorney for Mississippi Gulf Coast residents who lost homes to Hurricane Katrina said an e-mail trail shows that insurance companies pressured disaster engineers to attribute the destruction to flooding which was not covered by homewoner policies. The internal communications at engineering firm questioned the ethics of the insurer's actions. Read the Clarion-Ledger Story | Read the Associated Press Story | Download the E-mails (PDF)

E-mails Show Systematic Manipulation of Evidence

E-mails from a State Farm contractor, Forensic Analysis & Engineering Corp., provide further proof that State Farm has systematically pressured engineering firms to write reports that could be used to deny claims from victims of Hurricane Katrina.

The e-mail trail shows, for example, that State Farm not only provided Forensic with a suggested format for their reports, but that the “format” was actually replete with language suggesting that water surge, not wind, was a cause of the damage. One paragraph even suggests: “There was very little wind damage to the various roof coverings.” Further text covers details about the storm surge, concluding: “In summary, the (insert policyholder’s name) residence was destroyed by storm surge moving south to north…. There was a lack of wind damage to the roofing.” Read this email (PDF)

As widely reported, the e-mails reflect concerns by a senior manager with Forensic about the ethics of changing engineering reports in response to State Farm’s threats. Read this email (PDF)

State Farm’s threats started with rejecting Forensic’s initial reports that attributed percentages to different causes of the damage. In other words, rather than acknowledging that some of the damage was due to wind, State Farm asked Forensic to merely state the “predominant” cause, thus obscuring State Farm’s liability to pay out for wind damage.Read this email (PDF)

This is not the first evidence of State Farm’s unethical use of damage reports. The systematic deceit previously came to light when the Rigsby sisters, who worked for State Farm contractor E.A. Renfroe Company, brought to light documents revealing that damage reports that would require payment of claims were concealed. See the Scruggs Katrina Group Blog for more commentary on these State Farm practices.

Meanwhile, the State Farm employee in charge of overseeing engineer reports, Alexis “Lecky” King, has refused to answer questions in court proceedings, on the basis that her testimony may be self-incriminating. Read the Sun Herald Story

In an apparent attempt to distract attention from these developments, State Farm has put out a press release today touting its deal with Mississippi Insurance Commissioner George Dale. That cozy deal, first announced back on March 19, lacks incentives for State Farm to resolve the claims in a timely manner, and indeed has no penalties if State Farm tries to low ball the policyholder.

The Scruggs Katrina Group is a legal team consisting of Mississippi attorneys from the following firms: Don Barrett and Marshall Smith of the Barrett Law Office; Johnny Jones, Steve Funderburg, and Stewart Lee of Jones, Funderburg, Peterson, Sessums, and Lee; Dewitt Lovelace of the Lovelace Law Firm; David Nutt, Meg McAllister, and Derek Wyatt of Nutt & McAllister, PLLC, and Richard Scruggs, Sid Backstrom, and Zach Scruggs of the Scruggs Law Firm. For more information go to http://www.scruggskatrinagroup.com

WASHINGTON (Reuters) - The Bush administration opposes setting up a federal catastrophic insurance program to bolster private coverage, a senior White House adviser said on Wednesday amid debate over post-Katrina insurance reforms.

Warning that a government backstop program could distort private-sector insurance markets, Council of Economic Advisers Chairman Edward Lazear told a Senate committee such a program also could unfairly spread costs among taxpayers nationwide.

"The administration opposes legislation to create a new federal program to backstop catastrophe insurance," Lazear told the Senate Banking Committee in a hearing on the matter.

Ever since three hurricanes in 2005 -- Katrina, Rita and Wilma -- killed hundreds and caused billions of dollars in damage along America's southern coastline, lawmakers have been developing disaster insurance proposals to respond to raised premium rates and disputes over coverage.

Florida Republican Sen. Mel Martinez said at the hearing he supports a national catastrophe fund to "expand protection and availability of property insurance to owners."

Amid disagreement among insurers, legislative approaches to a national program vary from subsidizing the purchase of private-sector insurance, providing insurance directly to homeowners, to putting government in the reinsurance business.

"We believe that none of these approaches would be helpful nor are they warranted," Lazear said.

"A national catastrophic risk insurance plan would likely distort rates and undermine economic incentives to mitigate risk. It would force all taxpayers nationwide to subsidize insurance rates for the benefit of a relatively small group of people in high-risk areas," he said.

In 2006, both insurers and reinsurers raised premium rates to make up for huge losses in 2005. But 2006 was hurricane-free and there is now abundant capital in the insurance industry.

"The insurance industry is healthy and the private sector is well equipped to provide insurance for hurricanes and other natural catastrophes, but state regulators and the federal government must allow the private market to function," Lazear said.

Committee Chairman Chris Dodd called for tax deductions to help homeowners cope with higher premiums, more spending on steps such as fortifying homes in vulnerable areas, as well as strengthening the National Flood Insurance Program.

On the broader question of a national backstop program, the Connecticut Democrat emphasized a lack of consensus and urged forming a national commission of insurance experts to make recommendations to Congress.

Last week, the head of the U.S. National Hurricane Center predicted a busy Atlantic hurricane season this year.

3. America's Leading Catastrophe Experts Call for State and National Programs to Aid First Responders, Improve Mitigation, Backstop Private Insurance Market

WASHINGTON, April 11 /PRNewswire-USNewswire/ -- The nation's largest coalition of first responders, emergency management experts, businesses and insurers today told the members of the Senate Banking Committee that America needs a comprehensive public-private partnership to prepare and protect American families from the devastation of a massive hurricane or earthquake.

"Catastrophe protection and preparation is a nationwide priority that must be addressed immediately, before the next catastrophe strikes," said Admiral James M. Loy, co-chair of ProtectingAmerica.org.

"This is a national problem that will require cooperation between the private sector and the government, and coordination between the state and federal governments," he said.

"This national challenge can only be addressed by establishing catastrophe funds in high risk states, funded by mandatory contributions from private insurers, that will stand as backstops to the private insurance market and whose investment income can be dedicated to supporting mitigation, education and first responder programs," continued Loy.

"Adequately addressing this national priority and making homeowners insurance available and affordable in high risk states will require those states to be able to turn to a self-financed national backstop for the once- in-a-century catastrophes that will strike the nation," Loy told the U.S. Senate Committee on Banking, Housing, and Urban Affairs.

ProtectingAmerica.org is a non-profit organization with over 200 members including the American Red Cross and other emergency responders, emergency management officials, police organizations, Allstate and State Farm Insurance, and large and small businesses. The organization is co-chaired by James Lee Witt, former director of the Federal Emergency Management Agency and Admiral James M. Loy, former deputy secretary of the US Department of Homeland Security and former commandant of the U.S. Coast Guard.

Loy told the committee members that American families are overwhelmingly exposed to catastrophes like mega-hurricanes or earthquakes.

-- Risk experts and modelers suggest that 57 percent of the American public resides in areas that are prone to earthquakes, hurricanes or other disasters.

-- Twenty states, including Hawaii and every state that borders the Atlantic Ocean and Gulf of Mexico, face the threat of hurricanes every year.

-- The largest earthquake to ever rock the continental US emanated from New Madrid, Missouri in 1811 and affected an area that stretched from Mississippi to Michigan, from Pennsylvania to Nebraska.

-- Eight out of the 11 most costly U.S. natural catastrophes have occurred since 2001.

-- Since 1900, 11 hurricanes have made direct hits on New England; six of them on the New York coastline. The "Long Island Express," a massive hurricane that in 1938 made landfall in Long Island and raced through Connecticut, Rhode Island and Massachusetts, killed 700 people and left 63,000 people homeless. If the same storm struck today, damages would exceed $100 billion according to risk modelers.

4. Realtors(R) Urge Senate to Develop Comprehensive National Natural Disaster Plan

WASHINGTON, April 11 /PRNewswire-USNewswire/ -- The National Association of Realtors(R), at two congressional hearings today, called upon the Senate to enact a comprehensive natural disaster plan that addresses insurance availability and affordability in both property and casualty insurance markets; acknowledges the importance and limitations of the private markets; and recognizes the respective responsibilities of property owners and all levels of government.

The plan should recognize that property owners, private insurance markets and all levels of government must work together to successfully address the problem of available and affordable property insurance, especially in disaster-prone areas, NAR said.

To review the Banking committee testimony, visit: http://www.realtor.org/fedistrk.nsf/files/testim_pc_insur_041107.pdf/$FILE/ tes tim_pc_insur_041107.pdf

5. Untenable Insurance Market Conditions in Florida Force USAA to Restrict New Business

USAA is the Last Major Insurer to Limit Exposure in the State; Active Military Exempted

SAN ANTONIO, Texas--(BUSINESS WIRE)--USAA today announced that, effective immediately, it will significantly restrict the number of new homeowner, fire, and renter insurance policies it sells in Florida. USAA will only sell new homeowner or renter insurance policies for the primary residences of active military members required to move to the state pursuant to military orders. USAA will continue to underwrite a member’s primary residence in Florida, as long as it is currently insured by USAA. USAA also will underwrite one existing homeowner, fire, or renter policy in Florida for members whose primary residence outside of Florida is insured by USAA.

"We regret that we have been forced into this position, but recent legislative and regulatory actions in Florida leave no other option," said USAA Chairman and CEO Bob Davis. "We find ourselves in an untenable insurance market, where we are not allowed to charge the appropriate amount for the risk the association bears on behalf of our Florida members. If we do not take immediate action to limit our exposure to loss, we risk jeopardizing the viability of our entire association, and the financial security of all those we serve -- the men and women of the U.S. military and their families."

Over the past 10 years, USAA has paid approximately $220 million more in Florida homeowner insurance losses and expenses than it has collected in premiums. Florida property policyholders account for 49 percent of USAA's exposure to natural disaster risk, yet make up only 9 percent of USAA policyholders, who pay 12 percent of USAA’s property insurance premiums.

With more than $2 trillion in coastal property exposed to the risk of catastrophic hurricanes -- and a history of frequent, strong storms across the state -- Florida has the most challenging property insurance market in the country. USAA believes that Floridians would be better served by a thriving private insurance market, combined with responsible public policies that enable a viable free-enterprise economy and intelligent land use.

"If the Florida insurance market becomes more rational in the future, we will most certainly reconsider our position," said Davis. "But under current circumstances, it would be irresponsible to continue to put our entire association at risk."

USAA will continue to provide auto insurance, life insurance, banking, and investment products to its members in Florida, as long as the state permits it to do so. www.usaa.com

6. Conning Research: U.S. Life Reinsurers Evolve their Business Models in a Consolidating Market with Multiple Challenges

HARTFORD, Conn., April 12 /PRNewswire/ -- Continued consolidation among U.S. life reinsurers, combined with a drop in new recurring reinsurance are just two issues in an array of challenges facing U.S. reinsurers, who are responding by reevaluating their value propositions, according to a new study by Conning Research and Consulting, Inc.

"U.S. life reinsurers have seen major changes in their marketplace following on the hard market in the early years of this decade that was driven, at least in part, by the overly conservative reserve requirements," said George McKeon, analyst at Conning Research & Consulting, Inc. "In just the past few years we have seen significant continued consolidation of reinsurers, with the market share of the top five issuers jumping from 52% in 1995 to 77% in 2005. At the same time, reinsurers are dealing with a drop off in recurring reinsurance due to higher risk retention among primary insurers and competition from capital markets solutions such as securitization. Because of these and other challenges to their traditional role, we find reinsurers keenly focused on broadening their product and service offerings."

"Emerging Trends in U.S. Life Reinsurance: Challenge or Opportunity?" is available for purchase from Conning Research & Consulting, by calling (888) 707-1177 or by visiting the company's web site at http://www.conningresearch.com.

SEATTLE, April 11 /PRNewswire/ -- Fueled by strong investment returns in 2006, the 100 large defined benefit pension plans in Milliman's seventh annual pension funding study saw their funded status improve significantly, reaching nearly 100 percent. At the same time increases in interest rates over the year moderated pension obligations slightly, the study said.

"This is very good news," said John Ehrhardt, Milliman consulting actuary and an author of the study. "The losses we saw in 2001 and 2002 have been almost completely reversed, and the health of American defined benefit pension plans significantly improved last year."

CHATTANOOGA, Tenn. (April 11, 2007) – Unum (NYSE: UNM) today unveiled a new corporate brand that distinguishes the company as a leader in the employee benefits industry. With a contemporary logo and the tagline “Better benefits at work,” the brand illustrates both the “new” Unum and its legacy of innovation and commitment to the employee benefits market.

“In many respects, our brand is now catching up with the many changes that have made Unum a ‘new’ company,” said Thomas R. Watjen, president and CEO. “It is a better reflection of who we are today: a team of 10,000 professionals working hard to serve more than 25 million people and their families when they need it most.”

Unum announced in January that it was shortening its name from UnumProvident in the first step of a multi-phased process aimed at better describing the company today. The branding initiative follows several years of restructuring and signals a transition to a period of building and growing the company’s business.

“The new Unum brand represents a subtle shift in positioning from being an insurance company to being a true employee benefits partner,” said Joseph R. Foley, senior vice president and chief marketing officer. “Our benefit plans not only protect individuals and their livelihoods, they help organizations attract and retain quality employees and reduce the cost of absenteeism – ultimately creating a more productive workforce and, as a result, a stronger business.”

According to Foley, another theme will be apparent going forward. “In addition to being an employee benefits partner, we want to emphasize our focus on people. Unlike many companies in our industry that focus first on products, we wanted to put people first,” he added. “Our people, with the help of our unique products and technology capabilities, are what enable employers to become more competitive.”

To enhance the visibility of the company and its new brand, Unum is undertaking a more aggressive marketing effort that includes print and broadcast advertisements in local and national media. These ads showcase Unum’s commitment to providing intelligent benefits to meet the ever-changing needs of businesses and the individuals they employ.

Along with the expanded marketing focus, 2007 promises to be a year of innovation for Unum as it rolls out a series of new products and innovative service platforms.

“Our focus going forward is on maintaining the momentum we’ve created and building on our already strong market position,” said Watjen. “We’re confident that we have the right business plans in place to accomplish this. Our brand launch is an important element of our overall strategy and represents a significant step toward re-introducing Unum to the marketplace.”

Unum (www.unum.com), formerly UnumProvident, is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum Group protects more than 25 million people and provided $6.2 billion in total benefits to customers in 2006.

9. Client Alert: Eleventh Circuit Ruling In Viatical Case Provides Lesson For Challenging Validity Of Fraudulently Procured Policies

In a defeat for the life insurance industry, the 11th U.S. Circuit Court of Appeals, in Am. United Life Ins. Co. v. Martinez, No. 05-14920, 2007 WL 677729 (11th Cir. March 7, 2007), affirmed a lower court ruling that effectively bars insurance companies from asserting fraud claims against a class of life insurance policy holders without challenging each policy individually and with particularized pleadings. Of immediate consequence to the parties, the ruling also bars certain insurance companies from canceling policies at the center of a massive fraud investigation into Mutual Benefits Corporation, a Florida viatical company (“MBC”), and its affiliates Viatical Benefits, LLC and Viatical Services, Inc. (collectively, the “Receivership Entities”).

The panel issued the opinion in favor of the Receivership Entities, which were the target of a host of civil lawsuits brought by investors and insurance companies after the companies collapsed in 2004, and Roberto Martinez, an attorney who is currently serving as their receiver (the “Receiver”). By 2004, MBC owned interests in over 9,000 separate life insurance policies and could claim assets in the form of future death benefits totaling $1.067 billion. According to prosecutors, the Receivership Entities ran a Ponzi scheme that duped their investors out of nearly $1 billion, for which several of the Receivership Entities’ top officers have been indicted for securities fraud. This opinion has been touted as a victory for the Receivership Entities’ 30,000 investors who stood to lose more than $100 million if the Court had disaffirmed the lower court’s ruling and left open the door for the seventeen appellant insurance companies, including giants like Indianapolis-based American United Life Insurance (collectively, the “Insurers”), to void all of the policies in dispute. more...

10. Deutsche Bank Equity Research Significantly Expands Coverage of the Financial Institutions Sector

NEW YORK--(BUSINESS WIRE)--Deutsche Bank Securities Inc. today announced that research analysts Michael Mayo, Matthew Fischer, Robert Rutschow and Christopher Spahr have initiated coverage of thirty-seven stocks within the financial institutions sector. www.db.com

NEW YORK (Reuters) - Citigroup Inc. (C.N: ) and former wealth management head Todd Thomson have ended talks regarding the terms of his departure and Thomson's parachute will not be golden, a source close to the matter said.

Thomson left Citigroup abruptly in late January, amid news reports of growing criticism within the largest U.S. bank over his unwillingness to rein in spending. Citigroup said he left to pursue other interests.

The 46-year-old Thomson is receiving payment for the time he worked, but did not receive a severance payment, the source said.

In an interview with Reuters, Thomson said: "The settlement is done. I am pleased with it, so now I can turn my attention to what I do next."

Citigroup said on Wednesday it would eliminate 17,000 jobs, or about 5 percent of its work force, in a broad restructuring. The bank is under heavy investor pressure to cut costs and boost revenue.

Thomson said he was focusing his efforts on his private equity, real estate and advisory venture, Headwaters Capital LLC. "There's obviously a lot of opportunities and a lot going on out there," he said. "I'm going to take my time and look around and try to find where I can next add the most value." © Reuters 2007. All rights reserved.

NEW YORK, April 12 (Reuters) - Countrywide Financial Corp. (CFC.N: ), the largest U.S. mortgage lender, said on Thursday the amount of mortgages in its portfolio that are in foreclosure nearly doubled, amid a difficult U.S. housing market. The Calabasas, California-based company said the rate of pending foreclosures, as a percentage of unpaid principal balances, rose to 0.83 percent in March from 0.44 percent a year earlier and 0.80 percent in February. (Additional reporting by Christian Plumb) Reporting by Jonathan Stempel, editing by John Wallace (C) Reuters 2007. All rights reserved.

WARSAW, April 12 (Reuters) - Liberty Mutual, the second largest U.S. private auto insurer, will enter the Polish market by selling insurance via telephone and the internet, Polish daily Dziennik reported on Thursday, citing two anonymous sources. The Polish insurance market is growing rapidly as people in the former Communist country sign up for their first policies. State-controlled PZU is Poland's dominant insurance group, but its expansion has been hampered by a lengthy battle for control over the company between the Polish state and Dutch-based Eureko. Reporting by Marynia Kruk; Editing by David Cowell (C) Reuters 2007. All rights reserved.

LONDON/ZURICH, April 12 (Reuters) - Shares in Zurich Financial Services Group (ZURN.VX: ) rose 2.3 percent on Thursday on market talk of takeover interest, traders said, amidst rising appetite for Swiss insurers from foreign bidders. Zurich Financial declined to comment, saying its policy was not to comment on market rumours. "It's the usual rumour -- there's talk of private equity interest," said one trader.

(Additional reporting by Douwe Miedema in Zurich) Reporting by Sitaraman Shankar, editing by Quentin Bryar

15. TCW, Swiss Re and Conning Announce Successful Close of €329 Million European Clean Energy Fund

LOS ANGELES--(BUSINESS WIRE)--The TCW Group Inc., Swiss Re and Conning & Company today jointly announced the successful close of one of the largest clean energy funds in Europe. The European Clean Energy Fund (ECEF) raised €329.2 million from institutional investors in Europe, Canada and the United States. The Fund will provide capital for a host of environmentally-friendly initiatives, including wind, solar, hydro-electric, geothermal and waste-to-energy projects.

“Rapidly increasing demand for clean energy sources makes the launch of this fund very timely,” said R. Blair Thomas, Group Managing Director and head of TCW’s Energy & Infrastructure business. “Power market deregulation, technology advances, climate change concerns, and the passage of the Kyoto Protocol have all contributed to deepening the political and social commitment to clean energy projects in Europe, and provide an attractive investment environment for ECEF.”

16. NADA Urges Senate to Make Insurance Data on Flooded, Totaled, Stolen Vehicles Available to Consumers

WASHINGTON, April 11 /PRNewswire-USNewswire/ -- The National Automobile Dealers Association (NADA) called on the Senate today to bring more transparency to the used car-buying process by requiring insurance companies to provide consumers access to data on severely damaged, stolen and flooded vehicles. David Regan, VP of Legislative Affairs for NADA, who testified before the Senate Commerce Committee during an oversight hearing of the property and casualty insurance industry, urged Senators to pass S. 545, a bill introduced by Senator Trent Lott, R-Miss, which would permanently red-flag totaled vehicles. For more information and resources on total-loss vehicle data disclosure and flood-damaged vehicles, please visit http://www.NADA.org/tld.

17. Consumers Suffering Double-Digit Rate Increases Call for Health Affordability Bill

Measure Modeled on Landmark Auto Reform Would Require Insurers to Justify Increases and Get Approval Before Raising Rates

SACRAMENTO, Calif., April 11 /PRNewswire-USNewswire/ -- Consumers enduring double-digit health insurance increases joined Assemblyman Dave Jones (D- Sacramento) and consumer advocates today to support Jones' legislation requiring HMOs and health insurers to justify their rates and get approval for increases.

Jones' measure is especially important in light of proposals by Gov. Arnold Schwarzenegger and Senator Don Perata (D-Oakland) that would require all Californians to buy health insurance but allow insurers to charge whatever they choose. The legislation is similar to requirements in the auto insurance market that have saved drivers $23 billion since 1988. The measure would control the type of administrative waste and profiteering that allowed Blue Cross of California to keep, as overhead and profit, 50% of every premium dollar collected from individual policyholders.

Just five California HMOs (Kaiser, Blue Shield, Blue Cross, PacifiCare, and HealthNet) have recorded profit increases of $11.7 billion since 2002. 4 of the companies transferred $3.2 billion in profit to out-of-state parent companies since 2002. The 6 largest HMOs spent $1.6 billion in marketing in 2006.

The proposed legislation, AB 1554, would require insurers to justify overhead costs and excessive profits before raising rates. Proposed rate increases would be denied if they were deemed excessive or unfair. Rates would not be set by the state, but the transparent process of public review would assure that increases are justified.

Proposition 103, authored by consumer activist Harvey Rosenfield, founder of the Foundation for Taxpayer and Consumer Rights, and approved by voters in 1988, established a similar "prior approval" system for many lines of insurance. During the decade after Proposition 103 was adopted, the uninsured motorist population declined by 38%.

Between 1989 to 2004 California auto insurance premiums decreased 7% while premiums in the rest of the country increased 47%. Since just 2003, the rate challenges of one consumer group, the Foundation for Taxpayer and Consumer Rights, have saved homeowners, motorists and doctors $800.95 million in premiums.

FTCR is California's leading public interest watchdog. For more information, visit us on the web at http://www.ConsumerWatchdog.org.

18. New Survey by The Hartford Reveals Financial Literacy Communication Gap Among College Students and Parents

‘Playbook for Life’ Helps Parental Mentors Deliver the Personal Finance Guidance Most Students Depend On

HARTFORD, Conn.--(BUSINESS WIRE)--The majority of college students say they learn the most about personal finance from their parents, but less than half of students say their parents make a consistent conscientious effort to teach them, according to a new survey of over 2,000 students and parents conducted by The Hartford Financial Services Group, Inc. (NYSE: HIG).

Parents of college students have a somewhat different view. Nearly two-thirds (63 percent) of the parents surveyed say they definitely see personal finance education as their responsibility and consistently make the effort to teach their children about it, compared to the only 41 percent of students who say their parents did. About 70 percent of college students cite parents as their primary source of information.

The need for better personal finance instruction for young adults is one issue on which both groups see eye-to-eye: Students and parents agree that college students are not well prepared to deal with the financial challenges that lie ahead. Less than one-quarter of students (24 percent) and only 20 percent of parents say students are very well prepared to deal with the financial challenges that await them after graduation. Moreover, more than three-quarters of students (76 percent) wish they had more help preparing for their financial future, The Hartford survey found.

“These findings highlight the fact that many parents are stepping up to the task of teaching financial basics at home,” said Dr. Susan Coleman, Ansley Professor of Finance at the University of Hartford and advisor to The Hartford’s Playbook for Life financial education program. “At the same time, however, students don’t always get the message the first or even second time around. These concepts, which are new to most young people, require frequent reinforcement at home and elsewhere.” www.thehartford.com

19. New Booz Allen Hamilton Study Finds Consumers Are Taking More Responsibility for Health-Care Decisions, but Physicians Face Increasing Competition

Consumers Lack Critical Information to Make Informed Choices on Cost and Quality

Many Physicians Doubt Consumerism Will Bring Better Health Outcomes or Patient Relationships and Do Not Plan Fundamental Changes in Services and Data Offered

NEW YORK--(BUSINESS WIRE)--As consumers take on greater cost responsibility in their health-care, they are beginning to act like true retail customers. A new study by the management consulting firm Booz Allen Hamilton found that many health-care consumers are shopping for products and services, and expecting competition among providers and suppliers--but they still lack the information they need to make informed choices in critical areas. In many cases, consumers expect physicians to provide information on cost and quality. However, physicians are often unwilling or unable to assume that role and unaware of other changes needed in the traditional physician-patient relationship. The gap between emerging patient needs and what providers are supplying has opened up a need for new trusted sources of health-care information.

21. MetLife and Nationwide Better HealthSM Sign a Letter of Intent to Enter into an Agreement to Provide Employers with Enhanced Absence Management Solution

NEW YORK--(BUSINESS WIRE)--Metropolitan Life Insurance Company (MetLife) and Nationwide Better HealthSM today announced that they have signed a letter of intent to enter into a marketing and services agreement that would result in employers having access to an enhanced, integrated absence management solution for administering and reporting on employee absences.

For group disability customers, this new arrangement augments the absence management services MetLife has long provided for multiple workplace benefits including long-term disability, short-term disability as well as Family and Medical Leave Act (FMLA) administration. Employers would now also be able to track planned and unplanned absences due to other causes as well, such as company-sponsored leaves, jury duty, military leaves and/or personal and vacation days – all through one point of administration and one contract with MetLife. This total absence management solution will provide real-time information, tracking and reporting. www.metlife.com www.nwbetterhealth.com www.nationwide.com

22. Companion Property & Casualty to Resume Condo Wind Insurance, Add Commercial Wind Insurance along S.C. Coast

COLUMBIA, S.C., April 11 /PRNewswire/ -- Companion Property & Casualty Group is helping to fill a need for windstorm insurance along the South Carolina coast with an announcement today that it will resume taking new applications for condo coverage and will inaugurate coverage for commercial properties. This decision resulted from two coinciding factors, according to Companion Property & Casualty President Charles Potok. "South Carolina's new state Insurance Director Scott Richardson asked us for help in providing more windstorm coverage along our coast, while we were already working with the catastrophe reinsurance market to determine if we would be able to add to the windstorm exposures we currently have."

23. PCMA Supports Bipartisan Effort to Increase Access to Generic Prescription Drugs for Consumers and Payors

Legislation Would Eliminate Loopholes Used by Brand-Name Drug Manufacturers to Delay Generics Entry into Market

WASHINGTON, April 12 /PRNewswire-USNewswire/ -- The Pharmaceutical Care Management Association (PCMA) has announced support for bipartisan legislation sponsored by Senators Debbie Stabenow (D-Mich.) and Trent Lott (R-Miss.) that would eliminate certain loopholes used by brand-name drug manufacturers to reduce consumers and payors' access to generic prescription drugs.

24. ePrescribe Florida Breaking New Ground in Health Information Technology

JACKSONVILLE, Fla., April 11 /PRNewswire-USNewswire/ -- A collaboration of Florida's leading health plans and provider organizations have joined together to launch a statewide initiative called ePrescribe Florida. The organization was created to ensure that all Floridians have access to the benefits of improved health, safety, and affordability through electronic prescribing. The ePrescribe Florida Web site will be available in May at http://www.ePrescribeFlorida.com.

CLEVELAND--(BUSINESS WIRE)--Insurance.com, the largest online auto insurance agency in the United States, was recently the recipient of an Association for Corporate Growth’s (ACG) 2007 Deal Maker Award. As a recipient of the ACG Cleveland 2007 Deal Maker Award, Insurance.com joins past honorees such as Eaton Corporation, Parker Hannifin, STERIS, and other well-known Ohio companies. “The Deal Maker Awards honor corporate and individual deal makers who have contributed inspiration, vision and creativity in completing acquisitions, joint ventures, financing and divestiture transactions,” explained Tom Freeman, a partner with Grant Thornton and a member of the awards selection committee.

Dave Roush, CEO of Insurance.com was pleased with the award: “We appreciate this recognition from the Association for Corporate Growth. It’s a clear indication that Insurance.com is a solid part of the Northeast Ohio corporate landscape.” www.insurance.com

PORTLAND, Ore., April 11 /PRNewswire/ -- Regence, the largest not-for- profit health plan in the Pacific Northwest/Mountain State region, announces the opening of a Federal public policy office in Washington, D.C. Jason Daughn, the Director of Federal Public Policy for Regence, will oversee the office and the company's work with national policymakers around health care reform.http://www.regence.com.

27. Landmark New York Workers’ Compensation Reform: “What impact will these changes have on my New York operations?” - Willis Webcast / Conference Call on April 17, 2007

New York, NY, April 11, 2007 – As part of our ongoing commitment to provide thought leadership and consultative advice for our clients, Willis Group Holdings will host a webcast / conference call on Tuesday, April 17, 2007 at 11:00 a.m. Eastern Time, to examine the landmark legislation signed into effect by Governor Eliot Spitzer on March 13. The reform measure is the result of a concerted, collaborate effort intended to increase benefits for injured workers while at the same time reducing employer costs.

Interested parties may access the webcast and accompanying PowerPoint presentation via www.willis.com/Extras/webcasts.aspx. Those who may not have access to the internet at the time of the webcast may choose to listen by phone by calling (877) 546-1566 (toll-free domestic) and +1 (210) 234-0015 (international) with a passcode of WILLIS. The leader’s name is Gordon Prager. Participants are asked to log in or call in 10 minutes prior to the webcast in order to register for the event.

28. Keepyousafe.Com To Offer Customers Added Protection With MyPW's Two-Factor Authentication Service

New York, NY - April 11, 2007 - KeepYouSafe.com (www.keepyousafe.com), a Web-based personal information security company that offers consumers an Online Safe Deposit Box for storing their most vital, personal documents and information, today announced the availability of two-factor authentication for its users via MyPW.

KeepYouSafe.com users will have the ability to access the site utilizing MyPW's two-factor authentication service. The MyPW system uses a keychain-sized device that generates a random numerical code. When signing into KeepYouSafe.com, users would enter not only their regular site password. They would also enter the code shown on their keychain MyPW device.

29. THE AMERICAN COLLEGE ALUMNI ASSOCIATION ANNOUNCES FIRST ANNUAL GOLF OUTING

BRYN MAWR, PA – April 11, 2007 - The American College Alumni Association announced that it will be holding its First Annual Golf Outing on Wednesday, June 6 at the DuPont Country Club in Wilmington, Delaware. The event is open to all American College alumni, family, and friends. The DuPont Country Club is a four-star country club and the former home of the LPGA Championship. The cost for the outing is $250 per individual or $800 per foursome. This price includes cart, breakfast, and dinner. For registration visit www.TheAmericanCollege.OnlineCommunity.com or contact Adam Batchelor at (610) 526-1477. www.TheAmericanCollege.edu

30. American Keystone Insurance Company Announces Approval and Financial Rating

PONTE VEDRA BEACH, Fla., April 11 /PRNewswire/ -- Bruce K. Howson, President of American Keystone Insurance Company ("AKIC") announced today that AKIC had received its Certificate of Authority and approval of Rates and Forms from the Florida Office of Insurance Regulation. AKIC has also received a Financial Stability Rating(R) from Demotech, Inc. of "A" Exceptional.

AKIC has received approval to underwrite Homeowners and Condo Unit Owners insurance policies in Florida. The company has appointed over 20 agents in 13 counties and during 2007-08 the goal is to appoint a total of approximately 40 agents in 22 counties, including the coastal counties in southeast Florida. The underwriting strategy is to build a portfolio of business that is geographically balanced with homes of superior quality and condition.

Third Party Administrator Signs Five Year Contract for Pharmacy, Medical Services and Equipment

Tampa, Florida (April 11, 2007) – PMSI, the nation’s single-source solution for workers’ compensation products, and the Triad Group, a leading Third-Party Administrator and Licensed Casualty Adjuster, today announced that the parties have entered into a five year agreement for PMSI to become Triad’s exclusive provider for all pharmaceutical and medical services, as well as equipment related products and administrative services.

32. Converium - Payout of proposed par value reduction of 2.50 CHF expected by mid-July 2007

Zug, Switzerland - 11 April 2007 - Alert - In line with Converium's road map presentation on February 28, 2007, the Board of Directs proposes to the Annual General Meeting that CHF 2.50 be remitted to shareholders by reducing the par value of registered shares from CHR 5 to CHF 2.50. The pay-out is expected to be by mid-July 2007. Paolo De Martin, CFO of Converium: "Capital management is and will be one of our key value drivers and strategic focus areas in our strategic road map. Following our ratings upgrade, Converium is in the position to more efficiently manage the balance sheet in order to maximise shareholder value." www.converium.com.

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