Key Benefit Resources: (877) 907-5511, sbell@keybenefitresources.com, www.keybenefitresources.com Key Benefit Resources, LLC. custom design, create, and develop employee benefits plans and programs for Brokers, Employers, Unions, Affinity Groups as well as National and Regional Insurance Carriers. Daily Quote: "Quality questions create a quality life. Successful people ask better questions, and as a result, they get better answers." - - Anthony Robbins
1. Scor wins Converium with $2.8 bln raised bid By Douwe Miedema ZURICH, May 10 (Reuters) - France's Scor (SCOR.PA: won Swiss rival Converium (CHRN.S: on Thursday after raising its takeover bid to 3.4 billion Swiss francs ($2.8 billion) in a move to create the world's fifth-largest reinsurer. Converium, after a round of late-night talks, advised its owners to accept the increased cash-and-share offer, avoiding a showdown with Scor -- which already holds 32.9 percent of Converium -- at a shareholder meeting in Zurich. "We entered into talks with Scor last weekend, and after intense discussions, we have been able to negotiate a clear improvement over the previous offer," Markus Dennler, Converium's chairman, told the meeting. Converium becomes the second Swiss insurer to fall prey to a French predator after AXA (AXAF.PA: bought Winterthur from Credit Suisse (CSGN.VX: last year, and takeover talk also boosted Zurich Financial (ZURN.VX: stock. Converium ditched a plan for a $300 million extra shareholder pay-out in the form of a reduction in the nominal value of its shares and abandoned litigation against Scor over the takeover in the United States. The group, which reinsures other insurers, also said Chief Executive Inga Beale and finance chief Paolo De Martin would leave at the end of 2007. Additional reporting by Sven Egenter, Editing by Matthew Tostevin © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Friends Provident jumps on fresh takeover talk LONDON, May 10 (Reuters) - Shares in Britain's Friends Provident (FP.L: rose almost 9 percent on Thursday, fuelled by market talk it could be the target of a takeover, possibly by a larger rival like France's AXA (AXAF.PA: , traders said. Friends Provident, Britain's smallest bluechip insurer, has frequently been the object of takeover rumours, with insurance giant AXA, a shareholder, regularly named as a possible buyer. Friends Provident and AXA declined to comment on Thursday. AXA has said it would consider targeted acquisitions in the UK, one of the world's most competitive, with tight margins squeezing profits despite a surge in sales in recent quarters after reforms which encouraged Britons to save for retirement. Reporting by Dominic Lau, Sophie Hares and Clara Ferreira-Marques; Editing by Rory Channing; (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. One in three businesses fear terrorist attack: Lloyd's Wed May 9, 2007 11:11AM EDT By Simon Challis, European Insurance Correspondent LONDON (Reuters) - More than a third of international businesses fear they could become the victims of a terrorist attack, a report by Lloyd's of London insurance market said on Wednesday. Some 36 percent of companies surveyed predicted their facilities could be targeted by terrorists in the next five years while nearly half of the companies questioned thought it highly likely their IT infrastructure could come under attack. Almost two-thirds of businesses in the survey admitted they did not know enough about their exposure to terrorism and political violence. Nearly one in four said they had no business continuity plan to cope with disruption to their business in the event of an attack, while only 20 percent of those with a plan said it covered chemical, nuclear or radiological attack, despite UK and French police having foiled poison gas attacks in the past five years. With memories still fresh of the September 11 attacks, the 2004 Madrid train bombings and 2005 London underground train and bus bombings, nearly a third of the European respondents and over half the North American respondents cited religious extremists, such as al Qaeda and other Jihadi groups, as the biggest threat. Nearly half the 154 business leaders from around the world questioned thought the United States would see a rise in political violence or terrorist activity over the next five years, while 39 percent thought Western Europe would as well. "The research shows that boards are spending an increasing amount of time discussing terrorism and political violence risks," Peter Levene, Lloyd's Chairman, told journalists at a briefing. "However, there appears to be a significant gap between this growing risk awareness and tangible action actually taken by many companies, driven by a lack of understanding of the dynamics of political violence," Levene said. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Bank of America launches no-fee home mortgages By Jonathan Stempel NEW YORK, May 7 (Reuters) - Bank of America Corp. (BAC.N: on Monday said it is offering no-fee mortgages nationwide for Americans buying homes. The second-largest U.S. bank said it won't charge for applications, appraisals, loan originations, title insurance and flood certifications. It also won't charge for private mortgage insurance -- often required for borrowers who put less than 20 percent down. The program does not cover refinancings. Borrowers would still be responsible for transfer taxes, recording fees, their own title insurance, and legal fees, among other charges. Charlotte, North Carolina-based Bank of America hopes its No Fee Mortgage PLUS program will add customers amid the current U.S. housing slowdown. It said it launched the program on April 23 without publicly announcing it, and on that day generated a record number of applications to buy homes. "We've found that when a customer has a mortgage with the bank, he typically buys five other products, so it's a great way to build a relationship," said Floyd Robinson, president of Bank of America's home loan business, in an interview. Robinson said rates will be "competitive," though not necessarily the lowest. "We certainly think they'll be in the top half of competitiveness in every market we're in," he said. The program includes a guarantee that loans will close within 25 days, unless customers need more time, or customers will collect the equivalent of their first mortgage payments, less taxes and insurance. Bank of America will also pay $250 to people who obtain mortgage approvals but close with other lenders. In 2006, Bank of America made $167.5 billion of home loans, ranking sixth nationally, according to National Mortgage News. Last October, the bank began to roll out a program allowing investors to make up to 30 free online stock trades a month when they deposit at least $25,000 with the bank. Reporting by Jonathan Stempel, editing by Gerald E. McCormick; (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Higher chance of Gulf Coast hurricane in '07 Tue May 8, 2007 2:34PM EDT By Erwin Seba HOUSTON (Reuters) - There is an above-average chance that a major hurricane will hit the U.S. Gulf Coast this year, marking a possible return to the destructive seasons of 2004 and 2005, leading storm forecasters predicted on Tuesday. Hurricanes in 2005 devastated New Orleans and other parts of the Gulf Coast, and knocked out a swath of the country's offshore oil platforms and coastal refineries, pushing oil prices to then-record highs. In 2004, four strong hurricanes struck Florida, the country's biggest citrus producer. AccuWeather and Colorado State University said Tuesday at a storm conference in Houston the chance that a storm will swing over the energy-rich Gulf of Mexico and into the Gulf Coast states again this year is higher than normal. "For energy markets, it's a bullish forecast," said AccuWeather forecaster Joe Bastardi. "The highest area of risk has swung southwest from the Atlantic to Florida and the eastern and central Gulf Coast regions," he said. U.S. oil prices rose 83 cents Tuesday to $62.30 per barrel, pulling up from its lowest level since March 22 that was hit on Monday. Bastardi said that chances a storm would cross over oil-producing parts of the Gulf of Mexico, home to a quarter of U.S. oil production, were two-and-a-half to three times higher than normal this year. Overall, the 2007 Atlantic hurricane season will bring 13 to 14 named storms, of which six or seven could strike the United States, AccuWeather said. Colorado State University forecaster Phillip Klotzbach said at the conference there was a 49 percent chance that a hurricane packing winds of 111 miles per hour or higher would hit the Gulf Coast. The average chance for a major hurricane to hit the region is 30 percent, he said. The probabilities for this year are well above average," Klotzbach said. "The idea is, with a more active season, there is a much higher possibility of landfall." The university already has predicted the 2007 Atlantic hurricane season would be far more active than usual, with 17 tropical storms, of which nine will strengthen into hurricanes and five will strengthen into major hurricanes. The hurricane season runs from June 1 to November 30. The forecasts for an active season are in line with the forecasts of other experts. Hurricane Katrina was the costliest storm in U.S. history, causing more than $80 billion in damage in New Orleans and along the Gulf Coast. That season was a record-breaker, with 28 storms and 15 hurricanes. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. Lilly says to protect employees' genetic information May 9 (Reuters) - Eli Lilly and Co. (LLY.N: announced an expansion of its employee policies to include protection of genetic information. Lilly said this ensures that an employee's genetic information cannot be used to discriminate against them when making employment choices and benefits eligibility decisions. (Reporting by Varsha Tickoo in Bangalore) © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Scruggs Katrina Group Statement On Resolution Of MetLife Claims May 1, 2007 - Metropolitan Property & Casualty Insurance Company (MetLife) and the Scruggs Katrina Group have reached an agreement that will resolve the disputed claims of 34 MetLife policyholders. The terms of the settlement are confidential and subject to client approval, but we are confident that all of our clients will accept the settlement. We hope to start dispersing checks early next week. Today's announcement means that more than 900 families represented by SKG have resolved their disputed claims with the insurance industry and may now begin rebuilding in earnest. Last week, SKG announced the resolution of 227 claims with Nationwide, and in January of this year resolved over 640 cases with State Farm. Hundreds of additional cases are pending with other insurance companies, including State Farm. http://www.scruggskatrinagroup.com/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. A.M. Best: Tornadoes Responsible for 56% of Insured Catastrophe Losses in the United States OLDWICK, N.J.--(BUSINESS WIRE)--Tornado and related weather events were particularly costly in 2006, creating more than $8 billion in insured losses—the worst year on record. Tornadoes and related weather events have caused approximately 56% of all insured catastrophe losses in the United States in any given year, while hurricanes and earthquakes, on average, tend to generate higher losses per event, according to a special report by A.M. Best Co. To obtain a complimentary copy of the report and the accompanying data, visit www.ambest.com/press/041707tornadoreport.pdf. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Judi Moreo To Deliver Keynote At Workplace Benefits Mania 2007 "Communicate for Results"
In addition, she shows you how to adapt to the unique communication styles of others as well as how to get your message across effectively, powerfully, persuasively and memorably. You’ll be able to make a strong impression every time you speak. This program is filled with tips and techniques that will immediately make a difference in your communication effectiveness. www.judimoreo.com/home.htm For more information on the Workplace Benefits Association and the Workplace Benefits Mania 2007 meeting, visit: www.workplacebenefits.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. HSBC, Aviva to form joint insurance venture LONDON, May 10 (Reuters) - Britain's largest bank HSBC (HSBA.L: and its largest insurer Aviva (AV.L: plan to create an insurance joint venture that will underwrite and distribute general insurance products to HSBC's 10 million UK customers. The deal will boost HSBC's undersized UK general insurance presence and should help the bank meet its target of doubling the contribution to global profits made by its insurance operations. Aviva, meanwhile, should reap higher benefits from sales to HSBC customers and boost its distribution reach. "We've been punching below our weight in insurance. We didn't have the most powerful operation, we didn't have scale and this is a scale business," Dyfrig John, chief executive of HSBC Bank, told reporters. "Now was the time for us to focus." The two sides said they aimed to make the venture, which will be branded 'HSBC Insurance', a top 10 firm in UK general insurance -- implying annual premiums of around 600 million pounds ($1.2 billion) -- but said it was too soon to give details on the capital to be contributed by either side. The deal is set to be completed in the second half of 2007. Bancassurance deals have become critical for insurers as the distribution of both life and general insurance changes, moving away from traditional sales through intermediaries. Aviva, which has major bancassurance deals in Italy, Spain, Ireland and elsewhere, already has a lucrative UK life and pensions partnership with Royal Bank of Scotland (RBS.L: and has said it plans to develop its reach by expanding bancassurance. Alongside the venture, HSBC will sell Hamilton Insurance Company and Hamilton Life Assurance Company, which provide protection products, to companies within the Aviva group. The bank did not disclose the value of that sale, but said the two firms had gross assets of 180 million pounds and 176 million pounds respectively at the end of December 2006. Norwich Union, Aviva's UK arm, and HSBC have had an underwriting relationship for longer than two decades. HSBC currently distributes protection, home, travel and car insurance created by Norwich Union. Reporting by Clara Ferreira-Marques; Editing by Quentin Bryar ($1=.5019 Pound) (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Aon Establishes New Turnaround and Restructuring Practice CHICAGO, May 10 /PRNewswire-FirstCall/ -- Business conditions appear to be ripe for more frequent business "turnarounds" and Aon is responding. Significant capital at the disposal of large and middle-market-oriented private equity firms and hedge funds, and more companies in crisis with available cash delaying fixing operational problems, are a recipe for increased "turnaround" activity. To that end, Aon has created a new business organization -- the Turnaround and Restructuring Practice (TARP). "'Turnaround' includes financial and operational restructuring, which may or may not include the filing for bankruptcy," said Michael Toner, managing principal of Aon's brokerage subsidiary, Aon Risk Services Americas and CEO of TARP. "Companies in turnaround are largely abandoned by the brokerage and agency community. This is ironic given that it is a time of great client need. Our new practice will specialize in serving companies in turnaround. Our staff is comprised of skilled insurance executives with a formal understanding of bankruptcy and related laws." TARP is called in for its competence in handling insurance issues so consultants and chief restructuring officers can focus on the most pressing issues. "Our objective is to build a stable risk management platform in support of the long-term recovery and success of our clients," said Toner. The national practice will be based in Boston. The initial offering will be property and casualty-oriented, but will expand over time into pension, employee retention, executive compensation and International products and services. According to Toner, TARP will follow a few guiding principals:
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Wolters Kluwer Financial Services Announces Flood Indicator Functionality Within Flood Wiz WALTHAM, Mass., May 10 /PRNewswire/ -- Wolters Kluwer Financial Services, through its line of PCi compliance analytics solutions, announced today the availability of Flood Indicator functionality within its Flood Wiz(R) solution. Flood Wiz gives lenders access to the most up-to-date and accurate flood risk data, and can produce a flood determination within seconds. The indicator functionality, accessed via the Flood Wiz web site (http://www.floodwiz.com), enables lenders to begin the flood risk assessment process earlier in the lending cycle to better prepare borrowers for a potential flood insurance purchase. http://www.wolterskluwer.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. AHIP Statement on HHS Roundtable Discussion of Value in Health Care WASHINGTON, May 9 /PRNewswire-USNewswire/ -- At a roundtable of key business, labor, government, community, and health care leaders from across the nation sponsored by the Department of Health and Human Services (HHS), Karen Ignagni, President and CEO of America's Health Insurance Plans (AHIP), issued the following statement on progress in providing the highest value health care to patients: (Logo: http://www.newscom.com/cgi-bin/prnh/20040830/AHIPLOGO) "Health insurance plans remain committed to a safer, more effective and interconnected health care system. Our health plans have demonstrated that they have a unique role to play in achieving these objectives. "We support the four cornerstones advanced by the Secretary and are implementing specific strategies to coordinate care, empower consumers with information, and maximize the quality and safety of care provided. "As an industry, we have advanced specific recommendations to achieve an evidence-based system and cover all Americans. In addition, we have forged critical alliances to create a uniform quality measurement system and advance interoperability by working together with consumer and provider organizations. "We will continue to collaborate with key stakeholder groups to contribute ideas and expertise to create a safer, more effective, and interconnected health care system." America's Health Insurance Plans - Providing Health Benefits to More Than 200 Million Americans Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Prepared Remarks of Attorney General Alberto R. Gonzales at Press Conference With Michael Leavitt, Secretary of Health and Human Services, to Announce Initiative to Combat Medicare Fraud WASHINGTON, May 9 /PRNewswire-USNewswire/ -- The following is a transcript of remarks of Attorney General Alberto R. Gonzales at a press conference with Michael Leavitt, Secretary of Health and Human Services, to announce initiative to combat Medicare fraud: I'm pleased to be here today with Secretary Leavitt to announce significant arrests involving Medicare fraud in south Florida, and to discuss the important work of a newly established Strike Force designed to identify, prosecute and disrupt Medicare fraud schemes. The Strike Force consists of federal prosecutors and civil attorneys, the FBI, the HHS office of Inspector General, and state and local law enforcement in South Florida. It began its first phase of work on March 1st. This multi-agency team was designed to combat Medicare fraud in a way that is proactive, timely and strategic by targeting and disrupting Medicare fraud as it is occurring using real-time analysis of Medicare billing data to identify suspect transactions and potential offenders. The Strike Force will not only prosecute those engaged in Medicare fraud, but will also seize their illegally obtained profits and, in partnership with HHS, establish programs to stop these schemes from occurring again. The amount of money being stolen from the Medicare system and the flagrant nature of this theft warranted the establishment of the Strike Force. South Florida was chosen as a launching point because it is one area, among others, where we believe Medicare fraud is prevalent. Efforts will spread to other geographic areas where we believe enforcement is most needed. The track record of the Strike Force thus far is strong, with the indictments of 38 defendants alleged to have fraudulently billed the Medicare program over $142 million dollars. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Strike Force Formed to Target Fraudulent Billing of Medicare Program By Health Care Companies First Eight Weeks of Strike Force Operation Nets 34 Indicted Cases Involving More Than $142 Million in Billing WASHINGTON, May 9 /PRNewswire-USNewswire/ -- Thirty-eight people have been arrested in the first phase of a targeted criminal, civil and administrative effort against individuals and health care companies that fraudulently bill the Medicare program, Attorney General Alberto R. Gonzales and Secretary Michael Leavitt of the U.S. Department of Health and Human Services announced today. The arrests in the Southern District of Florida are the result of the establishment of a multi-agency team of federal, state and local investigators designed specifically to combat Medicare fraud through the use of real-time analysis of Medicare billing data. Since the first phase of strike force operations began on March 1, 2007 in southern Florida, the strike force has obtained indictments of individuals and organizations that have collectively billed the Medicare program for $142,061,059. Charges brought against the defendants in these indictments include conspiracy to defraud the Medicare program, criminal false claims, and violations of the anti-kickback statutes. If convicted, many of the defendants face up to 20 years in prison on these charges. The strike force is able to identify potential fraud cases for investigation and prosecution quickly through real-time analysis of billing data from Medicare Program Safeguard Contractors (PSCs) and claims data extracted from the Health Care Information System. In phase one operations in Miami, teams have identified two primary schemes that defrauded the Medicare program -- infusion therapy and durable medical equipment (DME) suppliers. All of the strike force cases to date target these two areas. The work of the strike force is just one step in a multi-phase enforcement and regulatory project designed to improve the quality of the industry and reduce the potential for fraud in the durable medical equipment and infusion areas. The Centers for Medicare & Medicaid Services (CMS) is taking steps to increase accountability and decrease the presence of fraudulent providers. The end result will be better service to beneficiaries and savings of billions of dollars that might otherwise go to fraudulent businesses. The strike force teams are led by a federal prosecutor supervised by both the Criminal Division's Fraud Section in Washington and the office of U.S. Attorney R. Alexander Acosta of the Southern District of Florida. Each team has four to six agents, at least one agent from the FBI and HHS Office of Inspector General, as well as representatives of local law enforcement. The teams operate out of the federal Health Care Fraud Facility in Miramar, Fla. The operation is being prosecuted by attorneys from the Criminal Division's Fraud Section and the Major Crimes Section of the U.S. Attorney's Office for the Southern District of Florida, and supervised by Fraud Section Deputy Chief Kirk Ogrosky and Chief of the Criminal Division in Miami, Matthew Menchel. In addition to federal agents, the teams have officers and detectives from the Florida Medicaid Fraud Control Unit and Hialeah Police Department. An indictment is merely an allegation and defendants are presumed innocent until and unless proven guilty. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Thomson Survey: Consumer Healthcare Information Tools Are a Priority for Employers, Health Plans, and Government Agencies ANN ARBOR, Mich., May 9 /PRNewswire/ -- In a survey of executives and officials from large employers, health plans, and government health agencies, more than 90 percent said it is a priority for their organizations to ensure consumers have information tools that help them make sound healthcare decisions. When asked why their organizations offer (or should offer) consumer decision support tools, the three most-cited reasons were to 1) reduce overall healthcare costs, 2) improve individuals' health, and 3) increase beneficiaries' engagement in healthcare. Survey respondents also were asked to rate the value of specific consumer decision support tools. Their top three choices, in order, were:
http://www.thomsonhealthcare.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. SBA Loan Applications Are Key to Disaster Recovery Funds ATLANTA, May 9 /PRNewswire-USNewswire/ -- The U.S. Small Business Administration (SBA) urges recent storms and flood victims to return applications even if they have insurance. Those who do not return their SBA application may be missing out on referral for additional help for individuals in the form of grants. Homeowners, renters, and business owners who are not fully covered by insurance may need additional funding to replace items and complete their repairs. "A disaster loan could close the funding gap and provide the necessary financing to help victims recover from their losses," said Frank Skaggs, Director of SBA Field Operations Center East. Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible up to $40,000 to repair or replace damaged or destroyed personal property. Businesses of any size and private non-profit organizations may borrow up to $1.5 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. Anyone unable to visit one of the Centers may obtain an application by calling the SBA's Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing-impaired) Monday through Friday 8 a.m. to 9 p.m. EDT. Business loan applications can also be downloaded from the SBA website at http://www.sba.gov/services/disasterassistance. Completed applications should be returned to one of the Centers or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Texas 76155. The deadline to return applications for physical loan applications is June 26, 2007; the deadline to return application for economic jury is January 28, 2008. For more information about the SBA's Disaster Loan Programs, visit our website at http://www.sba.gov/services/disasterassistance. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Travelers Provides Kidnap and Ransom Crisis Management Support Through ASI Global SAINT PAUL, Minn.--(BUSINESS WIRE)--Travelers (NYSE:TRV) today announced the availability of crisis management support to kidnap and ransom policyholders around the world through ASI Global, LLC, a wholly owned subsidiary of ASI Group, LP, a leading independent risk consulting organization that provides intelligence and security services to Fortune 500 and international companies, government agencies, humanitarian organizations, high profile executives, celebrities and high-net worth individuals. For more than 25 years, Travelers has offered kidnap and ransom (K&R) coverage to individuals, businesses and organizations worldwide. Coverage protects against the threat of kidnap, extortion, illegal detention and hijacking incidents. The policy includes immediate access to crisis management services when an incident occurs. “We recognize that our clients need immediate professional advice, support and guidance in this type of crisis situation,” said Martin Hudson, CEO of the company’s International operations. “With the global experience of the ASI team, our clients will benefit from our full package of financial support and expert guidance on how to bring an extremely difficult matter to a satisfactory conclusion.” Although many incidents go unreported, it is estimated that at least 50,000 people are kidnapped each year. However, evidence suggests that in situations when the advice of crisis management specialists was available, the victim was released safely in 90 percent of cases. Many ASI response team members have more than 15 years of experience and together they have conducted more than 300 cases on six continents. The team members are geographically located so they have a greater understanding of the demographics, culture and complexities of K&R incidents in a specific country or region. Through the affiliation with ASI Global, Travelers policyholders will have free online access to ASI Essentials, a 24/7 travel security Web site. This intelligence database contains risk mitigation information for major cities around the world. In addition, policyholders can sign up to receive HOT SPOTS, a free electronic daily intelligence briefing of world events. Both tools are designed to help organizations conduct business safely in an unfamiliar environment. http://www.asiglobalresponse.com www.travelers.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. NATION’S INSURERS URGE UNITED FRONT TO FIGHT FRAUD Des Plaines, IL—Driven by an annual fraud loss of $30 billion, the nation’s property and casualty insurance companies are taking aggressive action to attack this problem based on a two-year, industry-wide review of their fraud fighting efforts. Insurance fraud in all of its manifestations is a drain not only on the national economy and insurance carriers, but also on the finances of ordinary people—people who buy insurance to protect themselves against loss stemming from auto accidents, natural disasters, theft and injury. It has been estimated by some insurance studies that fraud adds anywhere from $200 - $300 to an average family’s annual insurance costs—money that belongs in the family’s bank account and not in the pockets of scam artists and criminals. While individual insurance carriers continue to refine and expand their aggressive anti-fraud processes into their claims handling procedures, today’s more sophisticated criminals create a special challenge. They are much more insidious in that they will simultaneously target numerous companies with multiple fraudulent claims generating millions of dollars in bogus claims. This kind of criminal enterprise requires more than an individual company is able to withstand. It is against that backdrop that over the last two years various committees were created and staffed with industry professionals charged with identifying weak spots in existing fraud fighting efforts. These groups recently completed their work and found that the industry’s approach to fraud was fragmented and inadequate. While there are isolated examples of effective anti-fraud programs, a nationwide, coordinated effort on multiple fronts is necessary to reduce this costly economic problem. During this review, five “pillars” were identified as critical components to an effective fraud fighting structure. They are:
It has been the finding of industry professionals that among the many entities currently engaged in fighting insurance fraud, the Illinois-based, not-for-profit National Insurance Crime Bureau’s (NICB) operational structure presents an existing platform from which a more focused fraud fighting organization could evolve. With its principal functions of Investigations, Training, Government Affairs, Awareness and Data Analysis, and its nationwide network of Special Agents, NICB is uniquely positioned and staffed to build on the industry blueprint. 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. AIR Worldwide Collaborates with China Earthquake Administration’s (CEA) Institute of Geology to Research Active Faults in China BOSTON--(BUSINESS WIRE)--AIR Worldwide Corporation (AIR) today announced a collaboration with the China Earthquake Administration’s (CEA) Institute of Geology. As part of the collaboration, CEA will research active faults and paleoseismic studies in China. The findings of the research will enhance AIR’s China earthquake model to include the most complete database of active faults and pre-historic earthquake data in China. “This collaboration will advance our understanding of the economic impact of the earthquake hazard in China and provide information that is critically important for the country’s continuing rapid development,” said Dr. Xiwei Xu, deputy director of the Institute of Geology at CEA. “Detailed information on the characteristics of active faults and paleoseismic data provides the key input needed to estimate the frequency and magnitude of large catastrophic earthquakes. We are very happy to work with a leading catastrophe modeling firm like AIR on this project.” www.air-worldwide.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. AIR’s U.S. Hurricane Model Certified by the Florida Commission for the Eleventh Consecutive Year BOSTON--(BUSINESS WIRE)--AIR Worldwide Corporation (AIR) today announced the certification of its 2007 U.S. Hurricane Model by the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM). Models are certified on an annual basis by the FCHLPM for use by insurers for residential rate filing. This marks the eleventh consecutive year that AIR has met the rigorous standards of the FCHLPM since its inception in 1996. www.air-worldwide.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Leading Risk Modeling Company Adds Carvill Hurricane Index to Modeling and Risk Assessment Process CHICAGO--(BUSINESS WIRE)--Carvill, a leading independent reinsurance intermediary in specialty reinsurance, today announced an agreement with the world’s premier risk modeling and technology firm, AIR Worldwide Corporation (AIR), to provide modeled support for the Carvill Hurricane Index (CHI™). AIR will provide a dataset containing a CHI value for each simulated hurricane in both their standard and near-term U.S. hurricane models. Using publicly available data from the National Hurricane Center of the National Weather Service, the CHI was developed in April 2006 to provide a sharper picture of potential damage for the insurance and related industries. The CHI uses the maximum wind velocity and size (radius) of each official storm to calculate the potential for damage. Since its release, the CHI has gained increased industry acceptance and recently became the underlying index for a suite of futures and options on futures contracts available for trade on the Chicago Mercantile Exchange. www.air-worldwide.com www.Carvill.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. RMS Calls for Change to Regulatory Systems that Fail to Acknowledge Current Levels of Hurricane Risk During the week of April 23, the Professional Team of the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM) visited the RMS offices to assess the v6.0 RMS U.S. Hurricane Model. The model submitted for review incorporates our standard forward-looking estimates of medium-term hurricane activity over the next five years, which reflect the current prolonged period of increased hurricane frequency in the Atlantic basin. This model, released by RMS in May 2006, is already being used by insurance and reinsurance companies to manage the risk of losses from hurricanes in the United States. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Immediate Income #1 Need for Retirees, Survey Finds Allianz study suggests don’t withdraw more than 4-6% of savings if you want it to last 30 years MINNEAPOLIS--(BUSINESS WIRE)--As the Boomer generation nears retirement, there is a growing sea change from the need to accumulate assets to having sufficient income to live an enjoyable post-working career life. This shift, underscored by a whopping 88% of those polled in a nationwide survey just completed, represents a doubling or tripling of a question posed less than five years ago. Moreover, the just-completed polling found if you want to live at least 30 years in retirement, all things considered, you cannot withdraw more than 4 to 6% of your savings. Allianz Income Management Services, based here, asked these and other related retirement questions last month to a nationwide field force of 106 insurance and annuity agents and brokers at its Income Summit in Houston, TX. Better than 58% completed the survey. www.allianzincome.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Non-savers? Most Cite Bills, Medical Expenses as Barriers WINDSOR, Conn., May 10, 2007 – For an estimated 44 million U.S. employees, paying the bills, keeping up with the high cost of medical care and lack of an employer-sponsored retirement savings plan are some of the main reasons they are not saving for retirement, according to a report from LIMRA International. Non-savers often have health insurance and other benefits offered through their employers – 71 percent said health insurance was available. Eight in 10 use the health/medical benefit when offered, often sacrificing in other areas to cover the cost of benefits. But fewer than half of non-savers’ employers offer a defined contribution plan, such as a 401(k), to help employees save for retirement. “These are largely low to middle-income earners, working full-time, who are struggling financially," said Sally Bryck, co-author of Non-savers: Why Aren’t They Saving for Retirement? “They want to save, they know they need to save, but they really need help.” www.limra.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. PIA Announces New Agents’ E&O Program with Aon and CNA WASHINGTON – The National Association of Professional Insurance Agents (PIA) has announced that agreements have been signed with Aon Affinity Insurance Services and the CNA Insurance Company to create a new PIA National Agents’ E&O Insurance Program. This new program will be delivered and rolled-out in phases as it grows and adapts to meet the changing needs of Professional Insurance Agents. “It is a pleasure for me to be able to announce these agreements,” said Larry Willis, President of PIA Services, on Sunday April 1, 2007 during PIA National’s Board of Directors meeting held in Arlington, Virginia. “They are the result of dedicated effort by our volunteer leadership and PIA national staff. We look forward to working with Aon & CNA as we roll-out our new program.” www.pianet.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. AssuranceAmerica CORPORATION Announces First Policy in Mississippi ATLANTA--(BUSINESS WIRE)--ASSURANCEAMERICA CORPORATION (OTCBB: ASAM), an Atlanta based insurance holding company with operations in the Southeastern United States announced today that AssuranceAmerica Insurance Company wrote its first auto insurance policy in the state of Mississippi. While its insurance company or managing general agency (MGA) is licensed to write in eleven states, Mississippi becomes the seventh state in which AssuranceAmerica actually conducts business. www.aainsco.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. The Hanover Enhances Small Commercial Workers' Compensation Product - Helps its Agent Partners Write Total Accounts WORCESTER, Mass., May 9 /PRNewswire-FirstCall/ -- The Hanover Insurance Group, Inc. (NYSE: THG), a leading super regional property and casualty company, today announced it has broadened its appetite for commercial workers' compensation risks, demonstrating a continued commitment to offering agent partners a total account solution for small commercial businesses. Through enhanced underwriting and technology, 80 percent of the company's Avenues(TM) small commercial business classes are considered highly desirable and available for straight-through processing, making it easier than ever for agents to write business with The Hanover. The move is in direct response to agent partners' who want to use low hazard, small workers' compensation to round out accounts. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. World’s Top Experts To Outline Booming Demand for Consumer Digital Healthcare Solutions Framingham, MA — May 9, 2007— EH Publishing, Inc. today announced the launch of the Consumer HealthTech Summit, an executive conference exclusively focused on the emerging market for consumer digital health and wellness devices, applications and services, scheduled for September 24 – 26, 2007 at the Grand Hyatt San Francisco. The event will help manufacturers, developers, communications and health and wellness service providers understand business opportunities, identify revenue and distribution sources, and provide product development guidance for digital health and wellness technologies and solutions. www.ehpub.com www.cms.gov www.chtsummit.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. ISO to Provide Workers Compensation Data Reporting Services to Utica Mutual JERSEY CITY, N.J., May 9, 2007 — ISO has signed a licensing agreement to provide Workers Compensation Information Services (WCIS) to Utica Mutual Insurance Company, a leading writer of workers compensation insurance programs. The company, based in New Hartford, New York, is a subsidiary of the Utica National Insurance Group. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. Response Insurance Announces J.C. Flowers & Co. Investment Meriden CT - May 9, 2007 - Direct Response Corporation ("DRC"), the holding company for the Response Insurance Group ("the Company"), announced today that it has signed an agreement under which an affiliate of J.C. Flowers & Co. LLC ("JCF") will become the largest investor in DRC. The transaction is subject to regulatory approval. The Response Insurance Group is a national direct-to-the-consumer auto insurer headquartered in Meriden CT. The Company was formed in 1995 and currently has customers in 42 states and Washington DC. www.response.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. BlueCross BlueShield of South Carolina Employees Achieve Impressive Quit Rates with the Free & Clear® Quit For Life™ Program Seattle — May 8, 2007 - BlueCross BlueShield of South Carolina is celebrating its one-year anniversary with the Free & Clear Quit For Life Program. BlueCross BlueShield launched the Quit For Life Program in April of 2006 to its 12,000 employees, with stellar results. “The Quit For Life Program is very popular with our employees and their family members—nearly 900 have enrolled thus far,” said Barbara Kelly, BlueCross vice president of human resources. “What’s extraordinary is we’ve reached quit rates that are three to six times greater than with those quitting cold turkey or using their local public health services.” Additionally, 90 percent of BlueCross BlueShield’s employees and their dependents report being satisfied or very satisfied with the program. www.freeclear.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 34. PIANH supports Insurance Department proposals CONCORD, N.H.—The Professional Insurance Agents of New Hampshire Inc. recently said it supports two Insurance Department proposals affecting insurance producers. The association sent comments this week and offered suggestions on each proposal (Chapter Ins. 4300 on the fiduciary obligations of producers and Chapter Ins. 1300 on agents, brokers and adjusters) for consideration prior to finalization. “PIANH commends the Insurance Department for taking steps to clarify and update the educational and fiduciary obligations of producers,” said Judy George, CIC, president of PIANH. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 35. Unum expands absence management services Creates unified tracking of employer-authorized policies, FMLA and disability CHATTANOOGA, Tenn. (May 8, 2007) – Unum (NYSE: UNM) is expanding its industry-leading absence management services to include all employer-authorized leave such as vacation and sick leave, creating a comprehensive tracking and reporting system. Designed specifically to meet the needs of larger employers, this service helps staffing departments keep more accurate watch on the revolving door of its workforce. It records scheduled and unscheduled absences from the half-day needed for a doctor’s appointment, to the week requested for PTO, to the extended absence for convalescence from surgery. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 36. MovingInsurance.com Partners With Unirisc To Provide the Moving and Relocation Industries With Online Insurance Capabilities MONTCLAIR, N.J., May 9 /PRNewswire/ -- Moving Insurance, LLC, the industry's leading online moving insurance provider today announced an agreement with Unirisc, one of the largest and most respected providers of insurance products and claims services. http://www.MovingInsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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