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1. U.S. govt forecasts active Atlantic hurricane season Tue May 22, 2007 11:06AM EDT WASHINGTON, May 22 (Reuters) - The 2007 Atlantic hurricane season will be active with 13 to 17 named storms, seven or 10 of which are expected to become hurricanes, the U.S. government's top climate agency predicted on Tuesday. Of the 7-10 hurricanes forecast, three to five will be major ones of Category 3 or higher with winds over 110 miles (177 km) per hour, the National Oceanic and Atmospheric Administration said in its annual forecast. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Hurricane season looms, New Orleans worries Sun May 20, 2007 8:58AM EDT By Russell McCulley and Haitham Haddadin NEW ORLEANS (Reuters) - In a New Orleans still recovering from Hurricane Katrina in 2005, the city safety plan for the next storm can be summed up best in two words: Get out. As the 2007 Atlantic hurricane season begins, New Orleans officials say the city is better prepared than it was before Katrina, but cannot assure people's safety. "When the mayor tells the citizens to evacuate, the citizens should listen and heed the mayor's warning," said Jerry Sneed, director of the city's office of emergency preparedness. Jesse St. Amant, emergency preparedness director for Plaquemines Parish southeast of New Orleans, agreed. "I would rather have somebody say 'I was inconvenienced' (by evacuating) than to have to recover their body." Last year's hurricane season passed without a storm hitting Louisiana, which gave the city much needed time to continue its slow rebuilding. But this year, forecasters predict the hurricane season, which starts on June 1, will be busy, and the U.S. Gulf Coast could well be hit. The U.S. Army Corps of Engineers has spent at least $1 billion strengthening levees that failed so miserably when Katrina hit on August 29, 2005, but experts say it will take billions more to secure the city, which is mostly below sea level. The result, said Ivor van Heerden, deputy director of the Louisiana State University Hurricane Center in Baton Rouge, is that another hurricane like Katrina could do just as much damage. Katrina, a Category 3 storm on the Saffir-Simpson scale when it hit New Orleans, flooded 80 percent of the city when its storm surge swamped the surrounding levees. A Category 3 storm has maximum winds of 130 miles per hour (209 kph). The storm killed at least 1,300 people and did an estimated $81 billion in damage, the most by a natural disaster in the United States. 'IT WILL COMPLETELY FLOOD EVERYTHING' "If we got a slow-moving Category 3, it will completely flood everything," van Heerden told Reuters at a recent hurricane conference. Louisiana Insurance Commissioner James Donelon said he believed the city's protection was strong enough to stand up to another Katrina, but beyond that, there were no guarantees. "We have never, ever ... in the history of New Orleans been better protected against strong surge from hurricanes than we are today," he said in an interview. But "a Category 4 or 5 hurricane on the critical path, that I can't answer." The issue is moot to local officials, who say that if a storm of any strength heads toward New Orleans, people should leave. They do not want a repeat of the anarchy after Katrina when people who did not evacuate died in the flooded city while crime and chaos reigned in the streets and in public shelters. Officials said there will be no shelters open for the next storm because they do not want to encourage people to stay. Nor do they want them trying to ride it out in their homes. The lessons of Katrina have not been lost on New Orleans residents, many of whom have refused to return to a city they still view as a sitting duck for hurricanes. The latest population estimates show that about 255,000 people live in New Orleans now, compared to 480,000 before the storm. Those who are back worry about what this hurricane season will bring. Ina Keelen, a 21-year-old hotel employee who rode out Katrina in the city, said that next time she will leave, adding "I can't take another chance with my life." © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. ANALYSIS-Bermuda reinsurers eyeing Lloyds syndicates Tue May 15, 2007 8:03AM EDT By Lilla Zuill NEW YORK, May 15 (Reuters) - Bermuda reinsurers, money burning a hole in their pockets after hefty 2006 earnings, are looking to expand into the Lloyd's of London insurance market, sources familiar with the situation said. Interest in joining Lloyd's [LOL.UL], the world's oldest and largest insurance market, is coming largely from reinsurers, dubbed the "Class of 2005," that formed in Bermuda after Hurricane Katrina. Bermuda's newest flock of reinsurers are interested in entering the market through acquisitions, or by forming their own underwriting units, or "syndicates," within the world's oldest insurance market. Validus Reinsurance and Ariel Reinsurance, both formed after Hurricane Katrina, and Montpelier Re (MRH.N:, another Bermuda reinsurer formed in late 2001, are each cited by industry sources as keen to establish a Lloyd's platform. By entering the London market, insurers can quickly move into selling multiple types of coverage across more than 200 nations and territories where Lloyd's is licensed. Lloyd's syndicates also operate under the market's strong "A" financial rating, a boost to business prospects. "You can write (business) all over the world," said Donald Kramer, chief executive of Ariel, a multiline reinsurer formed after Hurricane Katrina with $1 billion in capital from investors such as the Blackstone Group [BG.UL], Texas Pacific Group and Thomas H. Lee Partners. Validus, which has filed to go public in a $200 million IPO, is expected to shortly be successful in a bid to acquire privately held Lloyd's syndicate Talbot Underwriting. Validus was founded by former Marsh & McLennan (MMC.N: Chief Executive Jeffrey Greenberg's private equity fund in late 2005 to sell property-catastrophe reinsurance after Katrina created a shortage, Talbot, which may have also earlier attracted interest from Ariel, in recent months hired a London investment bank to advise it on a possible sale. Roddy Watt, an outside spokesman for Talbot, declined to comment. Sources in the Bermuda market said Talbot could fetch as much as two times book value, or up to $400 million. Validus, which is restricted in speaking to the press because it is in a pre-IPO quiet period, and Ariel both declined to comment. Former Lloyd's underwriter and now Montpelier Re Holdings Ltd. (MRH.N: Chief Executive Tony Taylor has said in a recent conference call that he is seeking "meaningful opportunities for growth outside the Bermuda market." PATH TO DIVERSITY Reinsurers such as Validus are looking to diversify into additional lines of business, key to winning strong financial strength ratings, and to broaden access to insurance buyers. "For $50 million, you can be licensed on a surplus basis across the U.S.," said Ariel's Kramer, as one example of the lucrative and affordable access reinsurers can gain through Lloyd's, a market of more than 60 underwriting syndicates that sell property and casualty policies to corporations with large and specialized risks. Kramer, formerly vice-chairman of Bermuda insurer Ace Limited (ACE.N:, was instrumental in that insurer's $500 million acquisition of Lloyd's syndicates Tarquin Underwriting Limited in 1998. He declined to say whether Ariel wanted to set up within Lloyd's. "Lloyd's has value for the nontraditional insurer, for Bermuda companies it has tremendous value," Kramer said. Renewed interest from Bermuda insurers, which make up the world's fourth-largest insurance market after Germany, the U.S. and Switzerland, will buoy the island market's already strong presence in the London market. Wendy Baker, president of Lloyd's America, confirmed that insurers and reinsurers are coming to Lloyd's as they seek to expand. "They have the capital, but they want the access to international markets and the worldwide licenses that Lloyd's provides," Baker said. Bermuda insurers have been tapping the Lloyd's market for decades, and were the market's third-largest source of capital in 2006, contributing more than 1 billion pounds. The development is good news for the London market, criticized in recent years for being too expensive and too bureaucratic. In the last year Lloyd's unveiled a three-year plan to boost ease of access, efficiency and consequently its ability to turn a profit, and draw business participants. Companies can, for example, now apply to form syndicates four times a year, instead of only once a year as in the past, said a spokesperson. The process remains "rigorous," but is open to those that can prove they meet certain criteria. "I am certain you will see more of it, (Bermuda insurers joining Lloyd's), it feels like a natural time in the market for that to start happening," said one senior executive of a Bermuda reinsurer. Additional reporting by Ed Leefeldt, editing by Martin Golan (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Agents For Change, Peter Ludgin, To Address Workplace Benefits Mania 2007 Attendees Cleveland, OH – May 18, 2007 – The Workplace Benefits Association is pleased to announce that Peter Lugdin, Executive Director of “Agents For Change” will be a Keynote Speaker at Workplace Benefits Mania 2007 to be held at Caesars Palace in Las Vegas on July 16 & 17. Peter Ludgin will address the advantages for agents and brokers within the framework of an OFC. These include: (1) time spent on licensing issues would be greatly diminished; (2) speed to market of products would be greatly enhanced; (3) consumers would have additional products at more competitive rates from which to choose; and (4) the ability to better serve customers no matter where they may reside. He also will highlight why his organization believes Insurers would be able to bring their products to market more quickly because they would only have to obtain approval from a single regulatory body, rather than in multiple states as they do now under the patchwork quilt of state regulation. And consumers, who often move from state to state in today’s economy, would benefit from more stable insurance premiums and consistent administration and regulation of their insurance policies. Agents for Change is a trade association of insurance agents and brokers from across all lines of insurance working together to reform insurance regulation and enact an optional federal charter (OFC) to allow producers the option of being regulated at either the federal or the state level. Members of Agents for Change participate in policy development and provide public policy makers with expert advice as they move forward to modernize insurance regulation. Membership in the organization is complimentary for agents. www.agents4change.net The Members of the Workplace Benefits
Association strive to bring an integrated solution for employers through
a master plan that involves a standardized employer guide and checklist.
This procedure ensures that no important area is overlooked while
providing the flexibility for each employer and employee to create an
individual solution to the financial planning puzzle. When an employer
sits down with a Workplace Benefits Consultant, they embrace the power
of a procedure that will bring about a total solution in a consultative
manner involving an entire team of qualified and experienced
professionals. Professionals can receive a complimentary 1-year
membership by visiting the website at
www.workplacebenefits.org
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. U.S. wants more data on UnitedHealth-Sierra deal Wed May 16, 2007 5:41PM EDT LOS ANGELES, May 16 (Reuters) - The U.S. Department of Justice has asked UnitedHealth Group Inc. (UNH.N: and Sierra Health Services Inc. (SIE.N: for additional information related to their proposed merger, the companies said on Wednesday. Health insurer UnitedHealth proposed in March to buy Sierra for more than $2.4 billion to expand in the fast-growing Las Vegas area and to boost its Medicare business. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. Advocates Tell Candidates to Provide Quality Health Care Coverage Now ALEXANDRIA, Va., May 22 /PRNewswire-USNewswire/ -- The chief executives of AARP, Alzheimer's Association, American Cancer Society Cancer Action Network (ACS CAN), American Diabetes Association and American Heart Association led rallies today in support of quality health care for all Americans in four states with an early presidential primary or caucus. At simultaneous events in Iowa, New Hampshire, Nevada and South Carolina, the groups' advocates called attention to America's health care crisis and directed a critical question to every American -- "Are You Covered?" Advocates in Iowa and New Hampshire boarded buses to visit all the presidential campaign offices in Des Moines and Manchester. They delivered a set of principles for quality health care. Volunteers in Nevada and South Carolina received grassroots training in preparation for raising the issue of access to care at candidate events and other public forums leading up to the 2008 elections. The groups also issued a joint set of fundamental goals for quality health care: Quality health care for all -- All Americans deserve effective prevention, treatment and care; Health care that's affordable -- Getting the health care we need should not bankrupt individuals, families, businesses or society; Health care without the "red tape" -- All Americans deserve a health care system that provides clear, up-front explanations of costs and benefits, provides the best value for their dollar, and eliminates unnecessary paperwork; Healthcare when and where people need it -- All Americans, regardless of their health, deserve adequate coverage that gives them the best available treatment and care in appropriate settings through all life stages and levels of disability. Through their nonpartisan efforts, the groups intend to increase public awareness about the importance of access to health care and to encourage candidates to address the issues. www.aarp.org www.acscan.org www.alz.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Without the Correct Approach and Implementation, Long-Term Effectiveness of Account-Based Health Plans Could Be Undermined, Towers Perrin Research Shows New Study Shows That Employees Lack Competency, Comfort, Understanding and Satisfaction With Account-Based Health Plans STAMFORD, Conn.--(BUSINESS WIRE)--Despite the short-term financial savings achieved by some employers, new Towers Perrin research shows that the long-term effectiveness of account-based health plans (ABHPs), or “consumer-driven health plans,” may be in question. According to the newly released 2007 Towers Perrin Study on Account-Based Health Plans, employers and employees are not reaping ABHPs’ full rewards. Employees currently enrolled in ABHPs are significantly less satisfied with many elements of the health benefit plan compared to those enrolled in traditional health benefit plans. And efforts by employers and health plans to date have not strengthened employees’ confidence and competence as health care consumers. But, more encouraging, the research also shows that when employees do have a strong understanding of their ABHP and feel comfortable with the level of perceived financial risk associated with it, they better utilize the plan and its resources, thus becoming better health care consumers. www.towersperrin.com/hrservices Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. New Health Plan Aims to Reduce Number of Working Uninsured GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--A significant number of Americans who lack health insurance actually have access to coverage through their employer but choose not to enroll. Great-West Healthcare®, a national employer benefits provider, today unveiled Great-West Universal Health Care Options – a new plan designed to increase employee and dependent participation in employer-sponsored health plans. In one study released by the Urban Institute, 30% of the working uninsured in this country have access to coverage but decline to participate.1 A major reason for this is affordability. Over the past five years, employer health plan costs have increased over four times the rate of annual salary and wage increases.2 A portion of this cost increase is shared with employees, and as costs have increased, the percentage of Americans who participate in their employer’s health insurance program has dropped. In 2006, the Kaiser Commission on Medicaid and the Uninsured reported that 27% of the decline in employer-sponsored insurance enrollment was due to lower employee participation. By redesigning the employer’s health plan, Great-West Universal Health Care Options enables employers to offer a comprehensive health plan with significantly lower employee premium contributions. www.greatwesthealthcare.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. De Niro battles film insurer over cancer diagnosis Mon May 21, 2007 10:28PM EDT By Steve Gorman LOS ANGELES (Reuters) - Four years after going public with a diagnosis of prostate cancer, actor Robert De Niro is waging a courtroom battle against the insurance carrier for a Hollywood film that was delayed by his illness. De Niro filed a motion on Friday seeking to dismiss a $1.8 million lawsuit brought last year by the Fireman's Fund Insurance Co., which claims he misrepresented his health status to them days before shooting was scheduled to start. The $1.8 million figure is the amount Fireman's Fund reimbursed filmmakers under its policy for the cost of delayed production on the movie "Hide and Seek," during De Niro's cancer treatment, according to court documents. Fireman's Fund in turn sued the 63-year-old Oscar winner for fraud, saying he misled the insurance company by failing to disclose at the time he signed a health certificate on October 13, 2003, that he had just undergone a prostate biopsy. De Niro has acknowledged getting a biopsy on October 10, 2003, three days before signing the form. But he says he received no diagnosis until October 15, and was therefore truthful when he indicated that he had never been "diagnosed with" or "treated for" a prostate disorder. But Fireman's Fund said De Niro's knowledge that he had undergone the biopsy constituted information he knew "might alter or otherwise conflict" the statements he attested to when he signed the certificate. "Mr. De Niro failed to fully disclose information which was critical to our decision to offer insurance coverage," the insurance company said in a statement on Monday. "As a result, the film had to be postponed for four months, at significant cost to the motion picture production company." De Niro's lawyer, Robyn Crowther, denied that her client sought to conceal his illness or misrepresent his health status, saying the actor had assumed when he underwent the biopsy that the results would be negative. "One day you don't have cancer, and the next day you get diagnosed and you do, and this happened to be in the middle of those couple of days," Crowther, told Reuters on Monday. De Niro, who is attending the Cannes film festival in France this week, revealed his illness publicly just days after his diagnosis in 2003, saying the condition was detected at an early stage and that he was expected to make a full recovery. He completed his cancer treatment and returned to work in 2004 on "Hide and Seek," which was released the following year by 20th Century Fox, a unit of News Corp. Ltd.. The film went on to gross more than $122 million at the box office worldwide. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. A.M. Best Special Report: Medical Malpractice Sector Mends, But Remains Cyclical OLDWICK, N.J.--(BUSINESS WIRE)--The medical malpractice insurance sector for years has been viewed as an industry in crisis. In 2001, the crisis heightened when St. Paul Cos., the nation’s leading medical malpractice insurer, exited the market, leaving more than $583 million of malpractice premium in search of a new home. During this tumultuous time, the entire medical malpractice professional liability industry was struggling with rapidly escalating loss costs, woefully inadequate rates and the need to significantly strengthen reserves—the same factors that drove St. Paul Cos., and others, from the market, this according to a special report by A.M. Best Co. In 2002, the tide began to turn as medical malpractice insurers took action to improve profitability—including raising rates and tightening underwriting standards—and tort reform measures were enacted in a number of states. The results began to pay off in 2003 and continued through 2006. In 2006, the medical malpractice industry and the overall property/casualty industry, in fact, had their best underwriting year since the mid-1990s. Companies also have been reporting healthier balance sheets and solid capital growth. www.bestweek.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
11. Comerica Bank and Atlass Insurance Sign Alliance Agreement FT. LAUDERDALE, Fla., May 21 /PRNewswire-FirstCall/ -- Comerica Bank and Atlass Insurance Group, a full-service provider of property and casualty insurance, today announced an alliance to provide Comerica clients with access to Atlass' specialty insurance products. The Atlass Insurance Group is headquartered in Ft. Lauderdale and provides insurance products for commercial and private clients. They specialize in offering insurance products for yachting, aviation, luxury residential properties and business insurance. www.comerica.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. NIP Specialty Brokerage Creates New Property Practice WOODBRIDGE, N.J.--(BUSINESS WIRE)--In response to the increasingly difficult Property Insurance marketplace brought on by continuous natural disasters, NIP Specialty Brokerage announces the creation of a new Specialty Property Practice. This new Property Practice will be managed by Senior Broker Regina Kustowski, who comes to NIP Specialty from NAPCO, LLC, where she was responsible for a middle market commercial property book of business. Ms. Kustowski brings more than 20 years experience in the insurance industry, primarily in reinsurance and as a Wholesale Broker. “The landscape of the Global Property Insurance marketplace has changed dramatically due to the severe climate conditions we have experienced in recent years,” Ms. Kustowski said. “Underwriting guidelines have been changed, prices have increased, higher retentions are required and less capacity exists. In order to meet their clients’ needs in this environment, retail brokers will need to access Wholesale Property Specialists who are problem solvers and very responsive. We look forward to providing this kind of support to retail agents and brokers across the country.” Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. U.S. Multinationals Report Confidence in Managing Ethics and Compliance Risks, But Recognize Challenges in Their Global Operations, LRN Study Finds LOS ANGELES, May 22 /PRNewswire/ -- Multinational companies headquartered in the U.S. rate themselves as above average in the overall management of their ethics and compliance risks, but recognize challenges in their ability to assess, prevent, detect and investigate violations across their global operations, according to new research from LRN. Companies rate themselves as 7.5 out of a 10-point scale in their ability to manage ethics and compliance risks timely and accurately at headquarters versus 6.7 in global operations. Further, in some areas of risk management, companies express a high degree of concern for both headquarters and global operations, such as in detecting violations where approximately 70 percent of companies experience challenges at either location. These are among the findings of the 2007 LRN Ethics and Compliance Risk Management Practices Study, an annual study from LRN that uncovers current practices and gaps in the field of corporate ethics and compliance risk management. "Globalization is rapidly intensifying a company's governance challenges," said Marjorie Doyle, Practice Leader, Ethics & Compliance Solutions, at LRN. "But companies not only need to have the right ethics and compliance risk management processes in place globally, they need to foster corporate cultures of values that inspire employees of many traditions and beliefs to trust and embrace these efforts as critical to both their own and their company's success." Additional trends uncovered in the LRN study include: Ethics and compliance officials name inadequate resources as their biggest challenge in conducting risk assessments (49 percent) and implementing prevention programs (53 percent) and as the second biggest challenge in investigating allegations. Inadequate data, cultural differences and technology limitations are also commonly cited challenges in risk management. Companies employ a spectrum of prevention programs, including online or on-site education, certification and performance reviews, with a code of conduct being offered by all respondents (100 percent) at their headquarters operations. Further, about 70 percent of companies surveyed reach all or most of their employees in international regions. Almost all (98 percent) respondents offer an anonymous phone line or a confidential reporting channel. However, almost two-fifths (39 percent) of companies believe their employees still fear retaliation for reporting. One-third of companies indicate being challenged to track the results of their ethics and compliance programs to business improvements. www.lrn.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Business Performance Matches Regulatory Compliance in Driving Enterprise Risk Management Chartis Research and SAS Study Shows Data Integration is Still Top Challenge in Risk Management Programs SAS Forum 2007 STOCKHOLM, Sweden--(BUSINESS WIRE)--Financial services firms rank performance management and regulatory compliance as equal drivers of enterprise risk management (ERM) systems according to a global survey of 410 financial services executives. Also, most financial institutions anticipate significant business rewards from ERM systems: improved performance management and reduced capital allocation and credit loss. The results of the study conducted by Chartis Research and SAS, the leader in business intelligence, were unveiled today at SAS Forum 2007 in Stockholm. Although many firms expect ERM to generate significant benefits, only 26 percent of the financial institutions participating in the survey said they had a well-formulated and well-communicated ERM strategy, with a clear timetable for implementation. Even more telling: 25 percent of respondents had no current strategy or plans regarding ERM. According to the executives surveyed, data quality and data management continue to be the biggest obstacles to successful implementation of an ERM system. Traditional silo-based approaches to managing risks are not providing the value that can be realized with integrated and consolidated risk management systems and processes, which result in reduced costs and improved performance. Survey respondents supported linking different risk systems into a single technology environment, providing an enterprisewide, holistic and integrated view of all risks. The survey also found that credit risk management is still the top risk management spending priority for most firms, with exposure to credit losses gaining in importance. In addition, 60 percent of respondents said ERM programs would enable them to reduce their economic capital allocation over the next 24 months, with an average estimated reduction of 8 percent. The key contributor to this reduction was improved credit risk management. Furthermore, market risk and financial crime have emerged as key priorities. The resurrected focus on market risk is driven by a desire to replace legacy systems that lack scalability and speed. In addition, counter-fraud initiatives have seen an increased investment in areas such as lending, credit/debit card, internal, and insurance fraud. Also, the insurance industry has shown a renewed interest in ERM that is related to the general convergence of insurance and banking sectors and the cross-fertilization of risk management methodologies. “This survey confirms that financial services companies are aiming to have a more integrated and systematic approach to ERM,” said David Rogers, SAS’ Global Product Marketing Manager for Risk. “Institutions are realizing that a flexible technology architecture based on a single risk intelligence platform with superior data integration techniques is critical for a successful, long-term ERM program.” For a summary of the survey results, please visit http://www.sas.com/industry/fsi/risk/index.html. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. German insurance union to demand 6.5 pct pay hike Tue May 22, 2007 10:35AM EDT FRANKFURT, May 22 (Reuters) - German services union Verdi will demand a 6.5 percent pay hike for 200,000 insurance sector employees in a wage bargaining round about to get underway, it said on Tuesday. The union wants a 12-month contract which would include job guarantees and a rise in the number of trainee positions. Insurers and employees reached a two-year wage agreement in December 2005 that included a pay rise of nearly 2 percent from April 1, 2006 plus a one-off payment, as well as a 1 percent rise a year later. That agreement expires in August. Germany's buoyant economic growth is expected to spur wage demands in the coming months after years of wage moderation. The European Central Bank (ECB) has called on workers to tone down wage demands lest pay deals stoke inflation. Reporting by Jonathan Gould; Editing by Gerrard Raven (C) Reuters 2007. All rights reserved. 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16. National Committee Launches Blog to Expand the Discussion of Aging Issues WASHINGTON, May 22 /PRNewswire-USNewswire/ -- The National Committee to Preserve Social Security and Medicare has joined the blogosphere with its new blog, "Entitled to Know - the truth about Social Security and Medicare." As millions of baby boomers approach retirement, Social Security, Medicare, healthcare and retirement issues will be a critical part of the national conversation on policy priorities. "Entitled to Know" provides the latest news from Washington, policy analysis by guest contributors and insightful commentary on issues affecting seniors. Bookmark it, share it and join the conversation at http://www.entitledtoknow.blogspot.com. Looking for detailed briefing papers, background research information or fast facts on Social Security, Medicare and other aging issues? The National Committee's newly redesigned website provides easy access to information on a wide range of topics from privatization to pensions, social insurance to seniors' healthcare. Tour the new site at http://www.ncpssm.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. RiskWatch, Inc. and TAMP Systems Announce Ground-Breaking Partnership to Offer Bundled Risk Assessment and Business Continuity Planning Tools ANNAPOLIS, Md., May 22 /PRNewswire/ -- RiskWatch, Inc. and TAMP Systems of New York announced today that they have completed a partnership that will allow customers to buy special combination products that include both the full RiskWatch risk assessment software, as well as the TAMP's Business Continuity and Disaster Recovery Planning software. Most organizations have a requirement for both, a full risk assessment, as well as a comprehensive business continuity and/or disaster recovery plan. This partnership ensures that organizations will receive the full benefit of having the risk assessment results able to feed the business continuity and disaster recovery planning effort. "The coming threat of pandemic flu is a good example of how these two software programs can generate value," said Caroline Hamilton, President of RiskWatch, Inc. "The risk assessment can provide the critical review of vulnerabilities in an organization and the business continuity plan can use the assessment results to create a more accurate and inclusive continuity plan." www.RiskWatch.com www.tampsystems.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. U.S. House backs separating banking and retail Mon May 21, 2007 7:38PM EDT By John Poirier WASHINGTON, May 21 (Reuters) - The U.S. House of Representatives on Monday voted 371-16 to pass a bill barring commercial companies from operating a bank, seeking to maintain a separation between the two industries. The measure requires a company to generate at least 85 percent of its revenues from financial services in order to own and operate a type of bank known as an industrial loan company (ILC). The vote was taken in the midst of a one-year regulatory moratorium on ILC applications by commercial companies. The Federal Deposit Insurance Corporation, which reviews the applications, has given Congress until January 2008 to decide. The bill also seeks to grandfather ILCs established before October 2003, but would place some restrictions on certain ILCs that changed ownership after that date. Similar legislation was introduced in the U.S. Senate earlier this month. ILCs are state-chartered banks with access to federal deposit insurance. They can offer deposit accounts, mortgages, credit cards, loans and other services. U.S. banks, especially smaller ones, have voiced concern about a surge in ILCs over the last two decades, saying they could be forced out of business if Wal-Mart Stores Inc. (WMT.N: and Home Depot Inc. (HD.N: enter the industry. Target Corp. (TGT.N: and German automaker Volkswagen AG (VOWG.DE:, already have ILCs. In March, Wal-Mart abandoned plans to open an ILC and Home Depot has an application pending before the FDIC. Home Depot, which opposes the bill, said applications filed with the FDIC before any legislation was considered should be allowed to proceed even if such legislation becomes law. "Our application is strong and has been submitted within existing laws," Home Depot spokesman Tony Wilbert said. ILCs, which represent less than 2 percent of industry assets, have grown to $212 billion at the end of 2006, according to the FDIC's latest figures. The biggest ILC bank is Merrill Lynch Bank USA (MER.N:, which had about $67 billion in assets last year. "It is my hope that the Senate can find a consensus approach as well to remove the cloud of uncertainty over the ILC charter and allow the ILC industry to continue as a strong, safe and sound component of the banking sector," FDIC Chairman Sheila Bair said. © Reuters 2006. All rights reserved. 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. Homeserve makes bid approach to D&G Mon May 21, 2007 7:02AM EDT By Jonathan Cable LONDON (Reuters) - Homeserve Plc (HSV.L:, a provider of home emergency cover, reported a 29 percent rise in profits on Monday and said it had approached Domestic & General (DGG.L: about buying the household-appliance warranty company. "It fits very nicely, it's very complementary to our business. We do intend to bring in an insurance partner to take the primary underwriting risk," Chairman Brian Whitty told Reuters. Homeserve said the approach was at a preliminary stage and Whitty declined to comment on the potential value of a deal or how it would be funded. Homeserve offers a nationwide repair network repair work to insurance companies and provides home services such as plumbing, drain maintenance, central heating and electrical cover to UK, French, Spanish and U.S. households. © Reuters 2006. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Marsh Establishes Renewable Energy Team, Reinforcing Energy Leadership Position NEW YORK--(BUSINESS WIRE)--Marsh Inc., the world’s leading risk and insurance service firm, today announced it has established a dedicated Renewable Energy Team and named Susan K. Stokes and Tom Sexton as its co-leaders. The team will work closely with the firm’s Global Marine & Energy Practice and the Power & Utilities Industry Practice to help clients address and find upside in the wide range of risks they face in this technologically diverse and dynamic sector. “Businesses and governments have sharpened their focus on renewable energy, particularly as the energy industry responds to the global emphasis on developing new technologies that lower carbon emissions,” said Ms. Stokes. “The creation of Marsh’s Renewable Energy Team provides both a framework as well as dedicated resources from multiple practices to expand our efforts to help clients address emerging risk issues in this dynamic sector.” “As clients commit significant resources and push technological boundaries to develop this rapidly growing sector, they need effective and innovative approaches to address their exposures,” Mr. Sexton added. “Marsh has the resources and the expertise to help them address a wide array of risks as they expand their activities in all parts of the world.” www.marsh.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Newbridge extends deadline to buy Taiwan insurer Mon May 21, 2007 2:37AM EDT TAIPEI, May 21 (Reuters) - U.S. buyout firm Newbridge Capital [NB.UL] has extended a deadline on its proposal to buy a controlling stake of Taiwan's Union Insurance (2816.TW: for US$100 million, the insurer said on Monday. "We are still in the final stage of negotiation with Newbridge," said Union spokesman Kenny Cheng. "We hope we can close the deal as soon as possible. A Newbridge executive declined to comment. Union, the No. 7 player with about 5 percent of Taiwan's T$120 billion ($3.6 billion) property insurance market, has seen its market cap tumble by 62 percent since January, amid financial woes for its parent, the Rebar Asia Pacific Group. (US$1=T$33.36) © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Volunteer State Joins Compact Ranks - Tennessee Becomes 30th Member of Interstate Insurance Commission WASHINGTON, D.C. (May 18, 2007) — Tennessee Gov. Phil Bredesen this week signed legislation making the Volunteer state the 30th member of the Interstate Insurance Product Regulation Commission (Commission). Now representing half of the nationwide premium volume, the Commission continues to make rapid progress in adopting new Uniform Standards and setting up product filing operations. For more information about the Commission, visit www.insurancecompact.org. Currently, 30 members have joined the Interstate Insurance Product Regulation Commission. The compacting members are Alaska, Colorado, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New Hampshire, North Carolina, Ohio, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia and Wyoming. The Commission enables state regulators to develop uniform national standards for asset protection insurance products, such as life insurance, annuities, disability income and long-term care insurance. The Commission establishes a central filing point for these insurance products, enhancing the speed and efficiency of regulatory decisions and allowing companies to compete more effectively in the modern financial marketplace while continuing to provide protection for consumers. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. DTCC Announces First-Time Fee Reduction For Insurance Services Higher Volumes in Use of Automated Services Result in Lower Fees New York, May 21, 2007 - The Depository Trust & Clearing Corporation's (DTCC) Insurance Services business announced today the first fee reduction in its history, reflecting growing usage of its services. Insurance Services has automated linkages and data exchange between carriers and their broker/dealer, bank and other distributor partners who market insurance products. www.dtcc.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Early Retirement and Social Security Spousal Benefits NEWTOWN SQUARE, PA—According to the Social Security Administration, of the total aggregate income received by retired Americans, Social Security benefits provide the lion’s share: 42.5 percent. Because of the primacy of this income source in retirement, making educated choices about it is critical. An article in the May 2007 issue of the Journal of Financial Service Professionals, entitled “Social Security Spousal Benefit Considerations in Early Retirement,” asks the important question: ‘what are the implications of early retirement for married couples who will be receiving the spousal benefit?’ Author Clarence C. Rose, PhD introduces his article by detailing the Social Security landscape. He notes that, according to the Social Security Administration, a majority of Americans – approximately 60 percent - elect to begin receiving retirement benefits at age 62, the youngest eligible age. In 2007, opting for early retirement at that age means a 25 percent reduction in the amount received as compared to waiting until age 66. And the reduction in benefits is slated to increase over time, so that early retirees in 2022 will take a 30 percent hit. Rose notes that for two out of three Americans, Social Security provides at least half of their retirement income. He then enumerates the eligibility requirements for spousal benefits, which generally can be said to accrue to the spouse of a worker when the spouse’s income is less than half of the workers, if a variety of other conditions are met. For those couples for which the Social Security spousal benefit is part of their retirement income, the long-term financial implications of early retirement are generally negative. Rose uses a number of approaches to illustrate this finding. First, a table shows the substantial reduction in monthly Social Security benefits for both the covered worker and his or her spouse when they choose early retirement. A second table illustrates the combined percentage reduction in benefits for a husband and wife opting for retirement at age 62 whose combined benefits would have been $3,000 per month at full retirement age. Those taking early retirement in 2007 would effectively lose $800 per month. Alternatively, they could be said to receive only 73.33 percent of their full monthly benefit. Table 3 illustrates the approximate Social Security benefits based upon the covered worker’s annual average income during the 35-year time period considered for determining benefits for a husband and wife using the spousal benefit. Again, opting for early retirement is shown to dramatically reduce the combined benefits for a married couple receiving the spousal benefit. Finally, the author addresses the argument that by receiving smaller checks for an additional four years (the period of time between age 62 and 66), the ultimate benefit “evens out” over time. A present value analysis shows that, although no one can predict for certain how long they or their spouse will live in retirement, delaying Social Security benefits is likely to yield a greater sum for most couples. www.financialpro.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Ironshore Enters Professional Liability Sector With Launch Of IronPro Hamilton, Bermuda, May 22, 2007 - Ironshore Inc. announced today that it is entering the Professional Liability sector with the launch of IronPro, under the direction of industry veteran Greg Flood as President. IronPro, based in New York, will initially focus on Directors & Officers Liability insurance, with additional Professional Liability products to be introduced in the near future. Ironshore Inc. was created in December 2006 with over $1 billion in equity capital. Through its subsidiaries, Ironshore underwrites specialty insurance lines of business. Ironshore Insurance Ltd., the principal operating subsidiary, has a financial strength rating of A- (Excellent) and financial size category XI by A.M. Best Company. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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