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1. JHA Announces 2006 U.S. Group Disability Market Survey Results PORTLAND, Maine, April 18 /PRNewswire/ -- JHA released the results of the 2006 U.S. Group Disability Market Survey, a leading industry benchmark survey covering Short Term Disability (STD) and Long Term Disability (LTD) sales and inforce premium. Thirty-two group disability insurance carriers participated in the 2006 survey, representing over 95% of the U.S. insured group disability market. U.S. group disability (STD and LTD combined) inforce premium grew approximately 7% in 2006, reaching over $12 billion. Participating companies reported an 8% increase in STD inforce premium, and a 7% increase in LTD inforce premium. The number of employers offering disability coverage increased slightly at 5% for STD and 3% for LTD. The total number of insured employees rose by 8% for STD and 6% for LTD. Survey results also indicate that 2006 U.S. group disability sales (STD and LTD) remained level compared to 2005, totaling over $1.9 billion in new annualized premium. While STD sales premium fell by close to 2%, new LTD sales premium showed an increase of 2% in 2006. Although the top ten carriers continue to achieve the highest share of sales in the U.S. group disability marketplace, their share of the market declined slightly in 2006. The top ten companies wrote 73% of new STD business in 2006, and almost 78% of new LTD business, compared to last year, when the top ten carriers wrote 76% and 83% of new sales, respectively, for STD and LTD. "After posting a slight gain in 2005, overall industry sales slipped a bit in 2006", said Drew King, President of JHA. "Voluntary LTD sales were up, after a couple of down years, which is a positive sign. Inforce premium growth, which is dependent on renewals, persistency, and wage inflation, was consistent with recent years." The annual JHA U.S. Group Disability Market Survey tracks and reports sales and inforce premium for both traditional and voluntary disability products. In addition, the survey covers renewal activity, lapse rates, Administrative Services Only (ASO) business, and the distribution environment. Participating companies receive the full report. To obtain a summary of the U.S. Group Disability Market Survey results, visit JHA's website at http://www.jhaweb.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Moody's study explores Avian Flu impact on U.S. life insurers New York, April 19, 2007 -- A recent study by Moody's Investors Service presents the impacts of several Avian Flu severity scenarios, and serves as a starting point for understanding U.S. life insurance companies' exposure to the possible reverberations of such a pandemic. Scott Robinson, a vice president and senior credit officer and author of the report emphasizes that "the risk of widespread influenza is currently incorporated into our ratings of companies, as are the possibilities of several other catastrophic events." "Although the dangerous strain of Asian flu, H5N1, may raise the likelihood," he adds, "we still believe that the probability of a severe pandemic is relatively low." "Before considering the uncertainty around reinsurance recoverables and without incorporating a potential tax benefit," the analyst explains, "the universe of Moody's U.S. domiciled, rated primary life insurance companies could face losses of approximately $24 billion, or 13% of its statutory capital and surplus in a severe scenario." "If a severe pandemic influenza were to occur," Mr. Robinson continues, "our projections indicate that there could be a significant number of companies downgraded (many multi-notches) -- particularly those exposed to life reinsurance and group life insurance." Of course, a severe epidemic would have enormous repercussions through global financial systems. Among several knock-on outcomes for life insurers are the following: • Investment losses, both on fixed income and equities, could be material. This would probably result from a decline in the equity markets, an increase in bond default rates, and widening credit and bid-offer spreads at a time when companies were required to liquidate investments to pay claims. • The liquidity risk at primary companies could be exacerbated if reinsurers delayed reimbursement to ceding companies. • Death benefit claims on variable annuity guaranteed minimum death benefits would rise as equity markets declined and as mortality rates increased. Additionally, fees on variable annuity accounts would decline with a decrease in account values. The report is titled "Bird Flu Risk for U.S. Life Insurers: A Tail Event." www.moodys.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Women hit harder in health care crisis: study Thu Apr 19, 2007 9:58AM EDT By Julie Steenhuysen CHICAGO, April 19 (Reuters Life!) - Rising health costs are likely to hit women harder than men, especially as companies shift more costs to employees, according to a U.S. study released on Thursday. Women are more likely to skip needed health care than men and are more likely to wind up in debt over health care bills, according to the report, sponsored by the Commonwealth Fund. "Whether women are insured or uninsured, they have so many out-of-pocket costs they are more likely to avoid healthcare," said Judith Waxman of the National Women's Law Center, who worked on the study. Some 45 million Americans lack health insurance, which presents a major barrier to health care. Another 16 million Americans are considered "underinsured" and must pay a large chunk of health costs out-of-pocket. Although both men and women are at similar risk for being uninsured, women -- insured or not -- are more apt to struggle paying for health care, the report found. "They are more likely to have debt due to medical costs," Waxman said in a telephone interview. The study's authors say these disparities should figure prominently as politicians craft proposals to address the high numbers of uninsured and rising health costs. The report drew its conclusions from three major surveys of household economic data representing a broad swathe of adults in the United States.
Women also have less access to employer-sponsored insurance because they are more likely than men to work part time. And women's access to that insurance is less stable because they are more than twice as likely as men to get employer-sponsored insurance through their spouse. The researchers also found women are more likely than men to take prescription drugs. The authors said the study underscores the need for comprehensive health-care coverage that does not require high out-of-pocket costs. "As policymakers consider health-care reform initiatives, they should consider plan designs that will result in meaningful, affordable and equitable access to health care for everyone," Sara Collins, a health policy expert at The Commonwealth Fund, said in a statement. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Jefferies shares, options up on takeover talk Wed Apr 18, 2007 4:19PM EDT - By Doris Frankel CHICAGO, April 18 (Reuters) - Jefferies Group Inc.'s (JEF.N: ) stock jumped more than 5 percent and call options surged on Wednesday, fueled by speculation the U.S. investment bank is a takeover target, according to options market participants and a stock analyst. The New York bank, a merger adviser and underwriter to mid-sized companies, declined to comment on the chatter. Massachusetts Mutual Life Insurance Co., known as MassMutual, was touted as a possible suitor by one options analyst. "There is a rumor that MassMutual will make a bid for Jefferies Group between now and Friday," said William Lefkowitz, an options strategist at brokerage firm vFinance Investments in New York. A MassMutual spokesman declined to comment. (With additional reporting by Joseph Giannone and Ed Leefeldt in New York) Reporting by Doris Frankel, editing by Gerald E. McCormick/Jane Baird (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Humana Launches SmartResults – a Unique, Integrated, Multi-Year Approach That Assures Employers Will Save on Health Care Costs by Helping Employees Get Healthier Company guarantees refund – up to 40 percent of benefits-administration fees – to any employer that fails to get results Humana predicts LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) announced today the launch of SmartResults – a bold new solution that features a three-year partnered approach among Humana, insurance brokers, employers and their employees that is expected to result in effective management and control of health care costs. SmartResults not only enables employers to address rapidly rising health care costs, it also comes with a guarantee to employers: they’ll get annual medical-claims results Humana predicts or they’ll get money back from Humana. Offered to self-funded U.S. employers with 300 or more employees1, SmartResults complements employers’ overall benefit strategy. The three-year SmartResults program integrates an employer’s health-plan offerings with Humana’s proven combination of support, guidance and wellness services designed to improve employees’ health. “For five years now, Humana has demonstrated that the solution we offer employers is more than a series of products,” said Beth Bierbower, Humana’s vice president of product innovation. “Employers and their employees curb medical spending – and employees get healthier – by adopting Humana’s unique integrated approach. The convergence of product, clinical programs, financial analysis and forecasting, and consumer education leads to improvements for employers and their employees. SmartResults gets employers focused where they can have the greatest impact on controlling health-benefits expenditures – on helping their employees better manage their own health care.” www.humana.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. AHIP Advances New National Strategy to Improve Health Care Safety and Quality Plan calls for new entity to compare effectiveness of treatments and technologies; Modernize and strengthen the FDA WASHINGTON, April 19 /PRNewswire-USNewswire/ -- Patients and physicians will have more information to make value-based health care decisions under a comprehensive new strategy to improve the safety and quality of medical care released today by the Board of Directors of America's Health Insurance Plans (AHIP). The plan calls for the development of a new entity to compare the safety and efficacy of medical procedures and technologies, advocates steps to promote transparency of health care information and speed the adoption of best practices, and calls for the creation of a new patient-centered dispute resolution mechanism. The new plan to improve quality and safety follows a proposal to expand access to coverage that AHIP's Board of Directors released last November. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. A.M. Best’s Tornado Study: New Jersey, Connecticut, Massachusetts, Ohio, Rhode Island Top List of Modeled Insured Losses OLDWICK, N.J.--(BUSINESS WIRE)--Most people associate tornado activity with the “Tornado Alley” of the Great Plains states. While this is true in terms of the sheer numbers of tornadoes and losses, surprisingly, catastrophe modeling shows that New Jersey tops the list of the states with the highest average expected, or modeled, insured losses per 1,000 square miles from tornado and related weather events, followed by Connecticut, Massachusetts, Ohio and Rhode Island. Tornadoes have occurred in all 50 states; however, the high average loss rates in the above-mentioned five states are affected heavily by insured property values in addition to the frequency of the storms, according to a special report issued by A.M. Best Co. Tornado and related weather events were particularly costly in 2006, creating more than $8 billion in insured losses, the worst year on record. The first quarter of 2007 has just concluded with a preliminary estimate of 334 tornadoes, up 65% from the first quarter of 2006. The new year began with a string of deadly tornadoes in the South. In the first three months of 2007, the Insurance Services Office (ISO) identified seven catastrophe events, three of which were classified as wind and thunderstorm events. As of the end of March, ISO issued estimates of $560 million in damages for two of the wind and thunderstorm events; no estimate had been issued yet for the events during the last week of March. Tornadoes regularly take a terrible toll in lives and property loss. Insured losses have the potential to reach $10 billion in a 100-year event, or an aggregate annual 100-year loss of $20 billion or more. Nonetheless, tornado-related insured losses have had limited impact on the insurance industry from the standpoint of raising solvency concerns. Of the 51 impaired insurers in A.M. Best’s P/C impairment study that have been identified as having failed due to catastrophe losses, only three companies had losses triggered by tornadoes and other related severe weather. Each of those impaired companies was a small insurer with a heavy concentration of risk in a limited geographic region. Importantly, all three firms had either no Best’s Rating or a Vulnerable (“B” or below) Best’s Rating. As far as current ratings are concerned, A.M. Best already considers a company’s exposure to tornadoes and other catastrophes in its rating methodology. www.bestweek.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. FASB Issues an Exposure Draft to Improve the Accounting for Financial Guarantee Insurance Contracts Proposal Is Written in New FASB Format Designed to Enhance Understandability The Financial Accounting Standards Board (FASB) today issued a proposal to improve the accounting for financial guarantee insurance contracts. The proposal, Accounting for Financial Guarantee Insurance Contracts an interpretation of FASB Statement No. 60, reduces diversity in practice and provides financial statement users with clearer, more comparable information and expanded disclosures. www.fasb.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. California’s Self Insured Solutions’ Five Construction and Agricultural Self-Insured Groups Experience Record Growth Self Insured Solutions Reports Group-Specific Success to Members at Annual Meetings Ontario, CA (April 18, 2007): California-based Self Insured Solutions – which manages five remarkably-successful self-insured workers’ comp groups in the highly-competitive California workers comp marketplace, has achieved record growth in the past twelve months, according to Tom Wheeler, Vice President of Marketing. www.calsig.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Top Voluntary Products Health Care Workers Are Buying Colonial Life & Accident Insurance Company identifies voluntary benefits buying trends in the health care industry. COLUMBIA, S.C. (April 19, 2007) — Short-term disability, life and accident insurance are the top three voluntary products workers in the health care industry are buying, according to an analysis of employee buying trends in the health care industry. Colonial Life & Accident Insurance Company’s study looked at voluntary product sales in 6,500 health care businesses—hospitals, doctor’s offices, dentists, nursing homes and assisted-living facilities—and included nearly half a million policies bought by employees who work in this industry. “Health care workers are showing strong interest in voluntary coverage in addition to what their employer provides,” says Tom Gilligan, Colonial’s senior vice president of marketing and branding. “Health care companies that don’t provide voluntary coverage options may not be meeting their employees’ benefits needs.” When it comes to managing employee benefits programs, the health care industry has some unique issues to deal with: • Higher health risks. Managing occupational injury and illness with health care workers is a big challenge in this industry. The U.S. Department of Labor reports that nursing care facilities and hospitals have rates of 12.6 and 9.7 cases respectively per 100 full-time workers, compared with an average of 5.3 for private industry overall. 1 “Voluntary products can help these workers pay for medical and nonmedical out-of-pocket costs without affecting the company’s bottom line or increasing its benefits costs,” Gilligan says. • Shortage of workers. More than 1 million new and replacement nurses will be needed overall in the medical field by 2012, according to the U.S. Bureau of Labor Statistics.2 “One way health care companies can attract and retain quality workers is by offering a competitive benefits package that includes a variety of voluntary products workers can choose from,” Gilligan says. • Cost containment. Technological and medical advances can lead to higher treatment costs, which typically drive up out-of-pocket expenses for patients. “Health care workers see first-hand the strain these costs can place on a family, so it’s easier for them to understand the advantage of having voluntary benefits to help cover out-of pocket expenses,” Gilligan says. “We’re seeing interest for voluntary short-term disability, life and accident coverage among employees in health care companies, and our study shows that workers are willing to purchase voluntary products to fill any coverage gaps,” Gilligan says. “When health care employers know the voluntary products their workers want and need, they can make smarter, more strategic decisions regarding their benefits programs.” www.coloniallife.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. BISYS® and Bonaire Partner to Offer Billing Portal for Managed Account Clients -- BISYS WealthSolutions™ to Host Bonaire’s REVPORT™ Billing and Fee Calculation Platform -- ROSELAND, N.J. & BOSTON--(BUSINESS WIRE)--BISYS® WealthSolutions™, an industry-leading provider of managed account outsourcing services for asset managers and program sponsors, and Bonaire Software Solutions, LLC, a global developer of software and technology solutions for the financial services industry, announced their strategic alliance today. Their partnership will provide current and prospective BISYS clients with a web-based portal for automated online fee calculations for tracking revenue streams and invoicing managed account clients. www.bisyswealthsolutions.com www.bonairesoft.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Oak Hill Financial Acquires Insurance Agency JACKSON, Ohio, April 18 /PRNewswire-FirstCall/ -- Oak Hill Financial, Inc. (Nasdaq: OAKF) announced today that its insurance affiliate, Oak Hill Financial Insurance Agency, Inc., has acquired the assets of Meeker & Meeker, Inc., a privately-held insurance agency located in Franklin, Ohio. The all- cash transaction closed on April 16, 2007.Meeker & Meeker specializes in commercial and personal property and casualty insurance. Founded in 1884, the agency serves the insurance needs of over 1,200 businesses, families, and individuals in Southwestern Ohio. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Reality Hits Floridians as Foreclosures Rise to Alarming Levels MIAMI--(BUSINESS WIRE)--Florida is ranked second in the nation in foreclosures for March 2007, according to a Realty Track. 27,092 homes were foreclosed upon for the month of March, which is a 33% increase from February. The reality: one in 270 homes is facing foreclosure in Florida, an alarming truth for homeowners across the state. Among the most vulnerable are homeowners with Adjustable Rate Mortgages (ARM’s). While most felt secure in their ARM’s the first year or so, today these homeowners are hurting as interest rates escalate and their monthly payments increase. It is becoming more difficult for them to pay on time. Because of this, more and more foreclosures are occurring. www.ffph.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Housing market bottom hoped for, not expected Thu Apr 19, 2007 6:01AM EDT By Ilaina Jonas - Analysis NEW YORK (Reuters) - Investors hope the next round of results from U.S. home builders, starting on Thursday, will show that the slump in the housing market is abating, but realistically they expect no sign of a bottom yet. In fact, many investors and analysts expect the market downturn -- caused by a glut of homes for sale, tighter lending standards and weak demand -- to worsen until at least the second half of this year. "I think it's a pretty severe downturn," said Robert Curran, Fitch lead home building analyst. "Could it be more severe still? Obviously." JMP Securities analyst Jim Wilson said he does not expect to see any sign the market for new homes has reached bottom. "The builders are the last ones to see that, because the resale market drives the new home market," he said. The resale market is comprised of foreclosed houses; homes of subprime borrowers, which have poor credit histories, nearing foreclosure; and "regular people who need to move," Wilson said. These homes comprise about 85 percent of the U.S. housing market. "You have to start seeing (that) the resale market is seeing less inventory, and so far it's not. It's seeing more," he said. The supply of homes on the resale market rose in February, the most recent month for which information has been compiled, to 6.7 months worth of sales from 6.6 in January, according to the National Association of Realtors. "There's way too much resale inventory sitting out there that hasn't been and needs to be marked down in price and needs to clear before you have any need of new homes," Wilson said. TOO MANY HOUSES Data from the mortgage market indicate that home builders are likely to see a further contraction in demand as higher interest rates and falling house prices translate into a spike in defaults and tighter lending standards. Subprime mortgages, granted to borrowers with poor credit histories, comprised about 22 to 25 percent of total mortgage originations in 2006, Fitch said. Defaults on subprime loans are expected to range from 15 to 30 percent as interest rates on adjustable-rate mortgages are reset. Subprime delinquency rates in the fourth quarter rose 0.77 percentage points to 13.33 percent, the highest level since the third quarter of 2002, Fitch said. Another worry is Alt-A mortgages, for which borrowers did not have to prove income and other financial resources and which accounted for 14 to 16 percent of the loans originated in 2006. This type of mortgage was a favorite among buyers of new homes. Fitch Ratings recently estimated that U.S. new home sales this year would fall by 11.5 percent from 1,053,000 houses last year to about 900,000 homes. Without the mortgage mess, the forecast would be 7 to 7.5 percent, Fitch's Curran said. Meanwhile, the year's supply of new houses is expected to be about 1.2 million, he said. As a result, home builders will add 300,000 homes to the current overhang of new homes for sale, Curran forecast, adding that the overhang is already troubling at about two months worth of sales. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Sallie deal sets precedent for financial firm LBOs Thu Apr 19, 2007 11:10AM EDT By Mark McSherry NEW YORK (Reuters) - And they said a leveraged buyout of a big financial services company couldn't be done. Well, Sallie Mae's (SLM.N: ) agreement to a $25 billion takeover by a group of private equity firms and banks set a precedent for such a transaction this week, and experts say similar deals will now follow. The student loan company's deal has shown that the debt implications of a leveraged buyout need not, as many thought, preclude an LBO of a financial company. "You could put anyone else in Sallie Mae's shoes," said John Orrico, portfolio manager at the Arbitrage Fund in New York. Sallie Mae on Monday accepted an offer from private equity firms J.C. Flowers & Co. and Friedman Fleischer & Lowe, as well as JPMorgan Chase & Co. (JPM.N: ) and Bank of America Corp. Until now, the theory was that the debt typically taken on in an LBO would be a dealbreaker for many financial companies, which often have high borrowings to begin with and can face tough regulatory scrutiny.More debt could bring downgrades of the credit rating of a financial company to "junk" and hurt its ability to borrow. However, the dealmakers in the Sallie Mae transaction came up with a solution -- an alternative source of funding and the heavy backing of two big banks.Under the plan, Sallie Mae could rely on the securitization of its student loans for most of its funding, and it also has a commitment of up to $200 billion from JPMorgan and Bank of America. That means any downgrade in the company's credit rating would not matter so much. "Sallie Mae has locked up its funding," said Orrico. "So what do they care about tapping the credit markets, or what do they care about their credit rating?" A report from CreditSights analysts said the major lesson from the Sallie Mae deal was that LBO-type deals are now possible for financial companies that can rely on securitization, the selling of loans to investors. "Sallie Mae can forgo investment grade ratings and rely almost solely on securitization while plan B comes from a large liquidity facility from the bank investors," the CreditSights analysts wrote. With a precedent set, experts say the field is now open for private equity firms to target most types of financial companies for LBO-style deals. More debt could bring downgrades of the credit rating of a financial company to "junk" and hurt its ability to borrow. However, the dealmakers in the Sallie Mae transaction came up with a solution -- an alternative source of funding and the heavy backing of two big banks. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. NAMIC Urges House Committee to Extend TRIA WASHINGTON (April 19, 2007) — The National Association of Mutual Insurance Companies (NAMIC) applauds the House Financial Services’ Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises for its decision to consider testimony on terrorism insurance. The panel has scheduled a hearing for April 24 on extending the Terrorism Risk Insurance Act. “This hearing comes at a crucial time,” said NAMIC Senior Federal Affairs Director Marliss Browder. “With TRIA set to expire on Dec. 31, policies are already being written that exclude coverage for terrorism. Congress needs to extend TRIA sooner rather than later.” TRIA provides a government financial backstop in the event of a foreign-initiated terrorist attack on U.S. soil. This protection is vital to the continued health of the American economy, as there is insufficient reinsurance capacity in the private insurance market to cover a major terrorist attack. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Union blasts Macquarie over Airwave pension plans By Jeffrey Goldfarb LONDON, April 19 (Reuters) - Another leveraged buyout is raising union hackles as workers criticised Macquarie Bank (MBL.AX: ) over plans for Airwave's final salary pension scheme. Communication Workers Union deputy secretary general Jeannie Drake said on Thursday that unions were misled over the issue during the takeover negotiations and "a deliberate attempt was made to delay serious discussion until the sale was complete." She said unions registered concerns about the pension scheme during the auction of emergency ratio network Airwave O2 Ltd., which was run by JPMorgan Cazenove, but at a late stage they were informed that the final salary scheme would end. "The outrageous and disrespectful manner in which this has been handled will enrage workers and generate real concerns over the new owners of their company," Drake said. Macquarie said Airwave employees would no longer be part of the O2 pension scheme in six months, after which it plans to establish a new, defined contribution plan with company contributions no less than currently provided. About 270 of Airwave's 900 employees are expected to be moved out of the defined benefit scheme. Approximately 300 more already are enrolled in a defined contribution plan. Pension issues have become a major sticking point in many UK takeovers, including the failed attempt by a group of private equity firms to buy supermarket chain J. Sainsbury (SBRY.L: ). Unions also have mounted a critical tirade against the private equity business model that has drawn the attention of politicians and media, sparking a wide debate over the industry. Editing by Quentin Bryar ($1=.4993 Pound) Keywords: (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. MetLife, Citigroup to team up on insurance in China Thu Apr 19, 2007 8:13AM EDT SHANGHAI, April 19 (Reuters) - MetLife's (MET.N: ) China venture said on Thursday it will team up with Citigroup Inc. (C.N: ) to boost its insurance sales in the country. United MetLife Insurance Company Co., a 50-50 joint venture between MetLife, the top U.S. life insurer, and Shanghai Alliance Investment Ltd., will sell an investment-linked accident insurance product exclusively through counters of Citigroup Inc. (C.N: ) in China, said Bob Pei, chief executive of the joint venture. The product, which allows clients to set up an investment portfolio including mutual funds focusing on equities or money markets, is exclusively designed for Citigroup's consumers in China, said Pei. The yuan-denominated insurance product will target middle- and high-end clients in China or abroad, Pei said, although when it can be offered to Chinese residents will depend on when Citigroup is allowed to offer local-currency yuan services. Reporting by George Chen, editing by Edmund Klamann (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. BIO Says Senate Should Abandon Efforts to Amend Prescription Drug Benefit WASHINGTON--(BUSINESS WIRE)--The following statement was issued today by Biotechnology Industry Organization (BIO) President and CEO Jim Greenwood regarding today’s vote in the U.S. Senate to consider legislation amending the successful Medicare Drug Benefit: “The Senate should abandon efforts to amend the Medicare Modernization Act to allow the federal government to interfere in negotiations between drug manufacturers, pharmacies and plan sponsors. Legislation proposed to date would effectively limit patient access to important breakthrough therapies and could lead to price controls which stifle innovation and harm future drug and biological discovery. www.bio.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. How Pharma Leaders Are Reacting to Medicare Part D CHAPEL HILL, N.C., April 19 /PRNewswire/ -- For the last year, pharmaceutical and biotech companies have been gathering resources and reviewing market trends to reduce risk and increase profits under the new Medicare Part D legislation. Benchmarking research firm, Best Practices, LLC recently completed a two- phase study with industry leaders such as Pfizer, Wyeth, AstraZeneca, Abbott, Sanofi-Aventis, Boehringer Ingelheim, and more to learn more about the structural and resource changes that companies have already made or plan to make in their Long Term Care (LTC) operations in response to the new Medicare Part D legislation. To download a complimentary excerpt of this research, please click here: http://www3.best-in-class.com/dr267.htm Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Pelosi Statement on Medicare Prescription Drug Bill WASHINGTON, April 18 /PRNewswire-USNewswire/ -- Speaker Nancy Pelosi released the following statement this afternoon after Senate Republicans blocked the Medicare prescription drug bill today: "The American people lost and the special interests won today after Senate Republicans blocked the Medicare prescription drug bill. "The Senate vote occurred on the same day that Families USA issued a new report finding that drug prices are going up despite the repeated assertions by the Bush Administration that Medicare Part D is bringing drug prices down. The report finds that for the top 15 drugs prescribed for seniors, the median Medicare Part D price has skyrocketed in the last year, growing by 9.2 percent -- almost four times the inflation rate of 2.4 percent. "The vast majority of the American people support Medicare negotiating authority to lower drug prices, as does majorities in both Houses of Congress, but obstructionist Republicans have decided to filibuster this critical legislation. Democrats will keep fighting until this bill is signed into law and seniors and people with disabilities have access to affordable prescription drugs." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Transamerica Affinity Services Introduces New Executive Medical Expense Reimbursement Program BALTIMORE, Maryland, April 19 /PRNewswire/ -- Transamerica Affinity Services, Inc. announced today the addition of Executive Health, an integrated medical reimbursement and health management program, to their Transamerica Innovative Employee Solutions (TIES) program. Attracting and retaining key personnel is an important issue for employers. Executive Health is a high-perceived-value addition to your benefits package that addresses this issue. The program provides enhanced medical, dental and vision coverage and services to help manage medical emergencies and concerns with the goal of maximizing productivity and performance of key staff. In addition, Executive Health offers 24/7, global support to manage emergencies, gain access to quality medical care and, if needed, medical air evacuation to a hospital of choice to safeguard employees as they travel. www.TransamericaAffinity.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Top Lawyer Says, 'Shop Smart When it Comes to Long Term Care' ONTARIO, Calif., April 19 /PRNewswire/ -- Thirty years ago, when Long-Term Care insurance policies were first offered, they were primarily policies of "last resort" for elderly nursing home use and designed to kick in when Medicare ran out. LTC Policies offered today are aimed at aging baby boomers and are feature rich, comprehensive benefit policies complete with all the bells and whistles, says Frank N. Darras, the nation's leading disability and Long-Term Care insurance lawyer. Today's policies have been oversold, under-priced, poorly underwritten and the number of in-force LTC policyholders has increased by 21% annually, to a total of seven million. Unfortunately, in the same period of time the number of insurance companies selling LTC has declined. See http://www.sbd-law.com. According to Darras, carriers who low-balled the market with cheap premiums to attract and gain market share have succeeded. Unfortunately, those same carriers are loosing their claim shirts as their over-generous policy language and cheap pricing is costing them a fortune. All while their investment income is down due to low interest rates. "The carriers can't change the economy; they can't change interest rates; they can't change Wall Street expectations; so they are beating down the doors of the Department of Insurance across the country for premium rate increases and turning their claim departments into "profit centers," says Darras. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Pitney Bowes Completes Tender Offer for Shares of MapInfo STAMFORD, Conn.--(BUSINESS WIRE)--Pitney Bowes Inc. (NYSE:PBI) today announced the successful completion of the tender offer by its direct wholly-owned subsidiary, Magellan Acquisition Corp., at $20.25 net per share in cash for all the outstanding shares of common stock of MapInfo Corporation (NASDAQ:MAPS). The offer expired at 12:00 Midnight, New York City time, on April 18, 2007. www.pb.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Minority of Senate Blocks Vote to Allow Medicare to Negotiate Lower Drug Prices AARP: 'Senators should know this issue is not going away. No amount of campaign money can trump the will of 90 percent of Americans.' WASHINGTON, April 18 /PRNewswire-USNewswire/ -- AARP released the following statement today, disappointed by a minority of the U.S. Senate that refuses to allow a vote on legislation that could help lower prescription drug costs for millions of Medicare beneficiaries. Despite the support of a majority of the U.S. Senate, and nearly 90 percent of voting-age Americans, S. 3, The Medicare Fair Prescription Drug Price Act of 2007, was blocked from coming up for a vote on the Senate floor today. "Allowing Medicare to negotiate for lower drug prices is common sense, and could have led to more affordable drugs for Medicare beneficiaries and lower costs for all taxpayers," said David Sloane, AARP Director of Government Relations. "Instead, a minority of the Senate decided to block consideration of a bill that has the support of the vast majority of their constituents. Given the overwhelming support for giving Medicare the power to negotiate, the will of the people will eventually be heard." Sloane continued, "Pharmaceutical manufacturers have given more than $20 million in campaign contributions for the last two cycles alone. They followed that up over the last few months with misleading polling and disinformation aimed at scaring older Americans into preserving the exorbitant profits that pharmaceutical companies make on brand name drugs. Senators should know this issue is not going away. No amount of campaign money can trump the will of 90 percent of Americans." Last week, AARP alerted Senators that the association is recording key votes on S. 3 and will be informing its members of how their Senators voted. Despite the outcome in the Senate today, prescription drug affordability remains a high priority for AARP and its members. The association will continue to fight to make prescription drugs more affordable for all Americans. While millions of older Americans and persons with disabilities have been helped by Medicare part D drug plans, more should be done to put downward pressure on drug costs. AARP will continue to support legislation that would allow Americans to safely and legally import lower-priced prescription drugs from abroad, and legislation to help bring generic drugs to market sooner, including generic versions of biologic therapies. AARP is also working to pass legislation that would reduce the asset test that prevents low-income people from qualifying for extra help under the Medicare drug program. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Vertibrands Adds Two New Clients West Chester, Pa. - April 19, 2007 - Vertibrands (www.vertibrands.com), a full-service marketing communications firm founded in January 2007 to serve non-competing insurance verticals, announced today that it has been named the agency of record for two new clients - Keystone Risk Partners and Consumer Specialties Insurance Company (CSI). Keystone Risk Partners (www.keystonerisk.com) is an alternative risk consulting firm, providing insurance agents and brokers with loss-sensitive structures and corporate finance strategies for their corporate insureds. Founded in 2002 by an experienced management team, Keystone specializes in exploring and structuring new risk alternatives, from offshore captive structures to highly-targeted marketing assistance and placement. CSI (www.csiplus.com) is a risk retention group that serves members of the Consumer Specialty Products Association, which includes chemical manufacturers and distributors. The risk retention group is approximately 20 years old and is managed by program administrator Hanna, Kremer & Tilghman (HK&T). Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Target Markets to provide assistance to New Orleans’ business owners TMPAA Charities – the charitable arm of the Target Markets Program Administrators Association - announced today that “The Idea Village” has been chosen as the entity’s 2007 fund raising target. Additional information will be provided to the Association’s membership during the group’s upcoming Mid Year Meeting, scheduled for May 7-9, 2007 in Atlanta, Georgia. “Our newly formed charity will give TMPAA members the opportunity to share their success with focused business related charities”, states TMPAA President Greg Thompson. “The Idea Village provides direct assistance to entrepreneurs in the New Orleans area who lost their businesses in the hurricanes of 2005. The Idea Village is an ideal example of the type of altruistic organization we will be targeting in the future. I am pleased to say that several members of the Association have volunteered to serve on the TMPAA Charities Board. This group will be guiding the charitable selections and fund-raising activities for Target Markets”. www.targetmkts.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. Retirement Planning Is Everyone’s Job, Organizations Say ATLANTA, April 18, 2007 – While broad economic shifts are forcing most people to become more self-reliant for their financial needs in retirement, it will take more than consumers’ bootstraps to ensure financial security for millions of aging Americans. A new report from LIMRA International, Matthew Greenwald & Associates, and the Society of Actuaries outlines actions that not only consumers but employers, financial professionals, the financial services industry and government should consider to improve the state of retirement planning. “According to our research, more than one-third of workers are not saving for retirement. This translates into over 44 million workers who will be at risk of not being able to pay for the basics in retirement, such as monthly bills, housing and health care,” said Eric Sondergeld, corporate vice president and director of retirement research for LIMRA. “Unless we all work to improve consumers’ retirement planning, our government and social programs will collapse under the strain of taking care of those who are unprepared and cannot take care of themselves.” The new report, Public Misperceptions About Retirement Security: Closing the Gaps (2007), is the second phase of a collaboration among LIMRA, Greenwald and the Society of actuaries that first reported on 10 major gaps in consumer understanding of the risks and challenges of retirement. In addition, these organizations today launched a new Web page, http://www.limra.com/PressRoom/PressMaterials/TenTips.aspx, containing links to the two reports, tips from the report for consumers, employers and financial professionals, and links to other resources for information about retirement planning. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. AICP Gulf States Chapter Annual E-Day – April 26, 2007 The Association of Insurance Compliance Professionals (AICP) Gulf States Chapter, Georgia Department of Insurance and the Virginia Bureau of Insurance are pleased to present their upcoming E-Day, April 26, 2007, in Atlanta, GA. Commissioner Oxendine has been invited and is expected to attend. Guest speaker this year is Joe Bieniek of the NAIC. He will be addressing NAIC Hot Topics and Market Regulation. There will also be breakout sessions for both Life & Health and Property & Casualty with the state of Virginia and Georgia. The program is scheduled for Thursday, April 26, 2007 from 8:30am to 4:30pm. A continental breakfast, lunch and coffee breaks will be provided. Don’t miss this great opportunity to network with your colleagues and improve your knowledge base. At $125 it is a great buy. For more information and to register go to http://www.aicp.net Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. NCOA’s BenefitsCheckUp Wins World Wide Web Health Award Informational resource recognized for service to seniors Washington, DC, DATE—BenefitsCheckUp, the National Council on Aging’s (NCOA) free online benefits screening service, has been honored with a World Wide Web Health Award. BenefitsCheckUp (www.benefitsCheckUp.org) received a Silver award from World Wide Web Health Awards, announced in late March by the Health Information Resource Center (HIRC). These awards recognize the best Web-based content for professionals and consumers, with the goal of providing a "seal of quality" for electronic health information. There were nearly 1,000 entries in the fall/winter National Health Information Awards, from hundreds of organizations. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 34. American Institute Of Marine Underwriters To Hold Marine Insurance Issues Seminar Innew York NEW YORK , APRIL 18 -- Insuring unique hull and machinery risks, the state of the logistics industry and its impact on the marine insurance industry and hurricane recovery and salvage are among the topics to be discussed at the 17th Biennial Marine Insurance Issues Seminar sponsored by the American Institute of Marine Underwriters (AIMU). The full-day event will take place on May 10 at the Marriott Marquis Hotel in New York City. Joe Plumeri, chairman and chief executive officer, Willis, will give the keynote address. For more information, or to register for the seminar, please contact AIMU at (212) 233-0550. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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