April 23 (Bloomberg) -- Hartford Financial Services Group Inc. is seeking bids from rivals including Travelers Cos. for its flagship property insurance business, said people familiar with the matter, in a sign that damage from the financial crisis may lead to a wholesale breakup of the 199-year-old insurer.
Hartford, pummeled by credit downgrades after losses in its life division, solicited offers for the profitable property and casualty unit in recent weeks, said the people, who declined to be identified because the talks are private. Travelers and Ace Ltd. may show interest, the people said, and Allianz SE already has a $2.5 billion stake in Hartford. Citigroup Inc. estimates the unit is worth $4 billion to $8 billion.
Chief Executive Officer Ramani Ayer, 61, is weighing more drastic options after Munich-based Allianz’s October cash infusion failed to stave off rating downgrades. The firm had a market capitalization of about $3.1 billion on the New York Stock Exchange yesterday, implying a negative value for the money-losing life insurance and retirement operations.
Talks earlier this year to sell parts of the life operations to Canada’s Sun Life Financial Inc. ended without a deal, the people said. Hartford, based in the Connecticut city of the same name, continues to seek other buyers for the parts of its life division that sell group benefits, the people said.
Shannon Lapierre, a Hartford spokeswoman, declined to comment, as did Shane Boyd of New York-based Travelers, Sabia Schwarzer of Allianz and Stephen Wasdick of Zurich-based Ace. Allianz’s investment in Hartford is “purely financial,” Schwarzer said.
Hartford dropped 3 cents to $9.65 at 1:19 p.m. in New York. The shares had lost 85 percent in the past 12 months through yesterday. Travelers fell 28 cents to $39.65.
TARP Aid
Efforts to find buyers for the Hartford businesses may prove unnecessary if the U.S. Treasury provides enough support. Ayer has said his firm stands to get as much as $3.4 billion under the Troubled Asset Relief Program. The Treasury has used the program to shore up banks and has yet to extend it to insurers other than American International Group Inc.
Ayer, who ran the property division before assuming Hartford’s top post in 1997, has been pressured by investors and analysts to consider a breakup. The property business had $6 billion of statutory surplus and $36.7 billion of assets as of Dec. 31. Joshua Shanker, a Citigroup analyst, said in February that a sale of the property unit would bolster capital.
A combination of the division with Travelers would create the second-largest U.S. property and casualty company behind State Farm Mutual Automobile Insurance Co., according to data from the National Association of Insurance Commissioners. Travelers was 6th in 2008 by policies sold. Hartford was 10th.
Job Losses
Merging the businesses could portend job losses in Connecticut’s capital city. Hartford Financial was formed there in 1810 and more than a third of its 31,000 employees are based in the state, the company said last year. Travelers began there in 1864 and has about 7,000 employees in the city, the Hartford Courant reported today.
Jay Fishman, the Travelers CEO, is a protégé of Sandy Weill, the Wall Street dealmaker who combined Travelers with Citicorp in 1998 to create Citigroup Inc. before spinning off the Travelers property and casualty business as an independent company. Fishman left Citigroup in 2001 to run St. Paul Cos., where he engineered the $17.9 billion acquisition of Travelers in 2004.
Ace, founded in Bermuda in 1985, is run by Evan Greenberg, the son of former AIG CEO Maurice ‘Hank’ Greenberg. He bought the Combined Insurance business from Aon Corp. in 2008 for $2.4 billion, his biggest purchase as CEO.
To contact the reporter on this story: Zachary R. Mider in New York at zmider1@bloomberg.net
Thursday, April 23, 2009
Going Green Brings Insurance Discounts
Your insurance company may give you a break if you go green.
After years of inertia, the $16 trillion industry has begun to address climate change with mandatory risk disclosures and more products to help businesses and individuals reduce energy use. Insurers have begun to offer lower premiums on car, homeowner and property insurance for people who drive less, own hybrid cars or build green homes.
"Climate change represents an opportunity for insurance companies to reduce risk and to build revenue," said Andrew Logan, director of insurance programs for Ceres, a coalition of investors, environmental groups and other organizations.
After a slow start - particularly in the U.S. - insurance companies are tackling the issue. In March, insurance regulators adopted mandatory climate-risk disclosure standards for insurance companies with annual premiums of $500 million or more. These standards require the firms to report to regulators and investors the types of payout risks they may face due to climate change.
"We are concerned about how climate change will impact the financial health of the insurance sector and the availability and affordability of insurance for consumers. This disclosure standard will give regulators the information we need to better understand these risks," said Joel Ario, Pennsylvania Insurance commissioner and chairman of the National Association of Insurance Commissioners' Climate Change and Global Warming task force.
In the last year, there has also been a large uptick in insurance products offered to climate-friendly consumers, according a report Ceres released in April. The number of new products doubled in 2008. They include coverage for wind and solar production shortfalls, premium discounts for energy efficient buildings and discounts for hybrid vehicle ownership and reduced driving. Early estimates show people with pay-as-you-drive, or PAYD, policies, drive 5% to 15% less than average drivers. Fewer cars on the road mean lower accident rates and reduced fuel emissions.
"What insurers are finding out is that there is a strong correlation between reduced driving and risk," said Logan.
Opting to drive less can reduce premiums by more than 50%, said Wayne Bontrager, senior vice president at GMAC Insurance, a unit of GMAC Financial Services. Two dozen companies offer PAYD insurance products, Ceres estimates, including GMAC, Corp. and Corp.
Insurers believe drivers of hybrid or fuel-efficient vehicles can be more responsible, lower-risk customers, said Bontrager. Among companies offering a 5% to 10% discount on premiums for hybrid drivers are Cos. and Farmers Insurance, which is owned by AG.
Almost two dozen insurers offer premium credits and discounts for owners of "green" commercial and residential buildings, according to Ceres. In the U.S., that typically means buildings with Leadership in Energy and Environmental Design (LEED) or Energy Star certifications.
Green buildings are more resilient, Logan says. The idea is that green buildings are safer than conventional homes, reduce energy use and perform better in the long run, leading to a decrease in losses and greenhouse gas emissions. For instance, air conditioners and furnaces that don't run often are less likely to have mechanical breakdowns, said Janet Ruiz, a spokeswoman for the Fireman's Fund, which offers a 10% discount on yearly premiums for owners of LEED-certified homes. Fireman's Fund is a unit of SE.
Farmer's and Fireman's are also among companies offering eco-friendly homeowners insurance coverage following a total or partial loss. For an additional premium starting around $20 to $25 a year, policy holders can rebuild, say, a kitchen damaged by fire with upgraded Energy-Star appliances, lighting, electronic equipment and roofing.
Write to Jilian Mincer at jilian.mincer@dowjones.com and Shelly Banjo at shelly.banjo@wsj.com
After years of inertia, the $16 trillion industry has begun to address climate change with mandatory risk disclosures and more products to help businesses and individuals reduce energy use. Insurers have begun to offer lower premiums on car, homeowner and property insurance for people who drive less, own hybrid cars or build green homes.
"Climate change represents an opportunity for insurance companies to reduce risk and to build revenue," said Andrew Logan, director of insurance programs for Ceres, a coalition of investors, environmental groups and other organizations.
After a slow start - particularly in the U.S. - insurance companies are tackling the issue. In March, insurance regulators adopted mandatory climate-risk disclosure standards for insurance companies with annual premiums of $500 million or more. These standards require the firms to report to regulators and investors the types of payout risks they may face due to climate change.
"We are concerned about how climate change will impact the financial health of the insurance sector and the availability and affordability of insurance for consumers. This disclosure standard will give regulators the information we need to better understand these risks," said Joel Ario, Pennsylvania Insurance commissioner and chairman of the National Association of Insurance Commissioners' Climate Change and Global Warming task force.
In the last year, there has also been a large uptick in insurance products offered to climate-friendly consumers, according a report Ceres released in April. The number of new products doubled in 2008. They include coverage for wind and solar production shortfalls, premium discounts for energy efficient buildings and discounts for hybrid vehicle ownership and reduced driving. Early estimates show people with pay-as-you-drive, or PAYD, policies, drive 5% to 15% less than average drivers. Fewer cars on the road mean lower accident rates and reduced fuel emissions.
"What insurers are finding out is that there is a strong correlation between reduced driving and risk," said Logan.
Opting to drive less can reduce premiums by more than 50%, said Wayne Bontrager, senior vice president at GMAC Insurance, a unit of GMAC Financial Services. Two dozen companies offer PAYD insurance products, Ceres estimates, including GMAC, Corp. and Corp.
Insurers believe drivers of hybrid or fuel-efficient vehicles can be more responsible, lower-risk customers, said Bontrager. Among companies offering a 5% to 10% discount on premiums for hybrid drivers are Cos. and Farmers Insurance, which is owned by AG.
Almost two dozen insurers offer premium credits and discounts for owners of "green" commercial and residential buildings, according to Ceres. In the U.S., that typically means buildings with Leadership in Energy and Environmental Design (LEED) or Energy Star certifications.
Green buildings are more resilient, Logan says. The idea is that green buildings are safer than conventional homes, reduce energy use and perform better in the long run, leading to a decrease in losses and greenhouse gas emissions. For instance, air conditioners and furnaces that don't run often are less likely to have mechanical breakdowns, said Janet Ruiz, a spokeswoman for the Fireman's Fund, which offers a 10% discount on yearly premiums for owners of LEED-certified homes. Fireman's Fund is a unit of SE.
Farmer's and Fireman's are also among companies offering eco-friendly homeowners insurance coverage following a total or partial loss. For an additional premium starting around $20 to $25 a year, policy holders can rebuild, say, a kitchen damaged by fire with upgraded Energy-Star appliances, lighting, electronic equipment and roofing.
Write to Jilian Mincer at jilian.mincer@dowjones.com and Shelly Banjo at shelly.banjo@wsj.com
Wednesday, April 15, 2009
Shippers face higher insurance as pirates run amok
LONDON – Shipping your oil across the Gulf of Aden? Don't forget your piracy insurance.
As a ragtag group of gunmen face off against the U.S. Navy near the coast of Somalia, industry-watchers say shipping companies already smarting from the global downturn are forced to pony up extra cash for steeper premiums to cover multimillion dollar ransoms or take the long way around African continent in the hope of dodging hijackers.
"The pirates were the only people who had a good year in 2008," said Crispian Cuss, a security consultant with the Dubai-based Olive Group.
The Gulf of Aden, which connects the Indian Ocean to the Red Sea and the Suez Canal, is one of the busiest and most dangerous waterways in the world. As pirates have become more aggressive, the cost of insuring ships has gone up. Some companies are spending more time training their crews, others are avoiding the area altogether — taking long trips around the Africa's southern tip that can potentially add millions to the cost of each journey.
While the coast of Somalia has been a problem for years, it was flagged in May as an area of particular concern by Lloyd's Market Association, and premiums have been rising — at least tenfold, according to some media reports. Neil Smith, the senior manager for underwriting for Lloyd's Market Association, has said the exact figures are commercially sensitive in a highly competitive industry.
Large ships generally carry three separate types of insurance. Marine — or hull — insurance covers physical risks, such as grounding or damage from heavy seas. A second type of policy, protection and indemnity, covers crew issues, while war risk insurance covers acts of war, insurgency, and terrorism.
Although war risk policies typically cover hijackings and piracy, insurers often charge extra for ships that venture into high risk areas such as the Gulf of Aden. Others, including Chicago-based Aon Corp. and London's International Security Solutions Ltd., have recently launched new plans specifically tailored to cover losses incurred by piracy — for example by including ransoms and cargo delays under the same policy.
The other option available to ship operators, taking the long way around Africa's Cape of Good Hope instead of the short cut through the Suez Canal, is also expensive.
Routing a tanker from Saudi Arabia to the United States through the Cape of Good Hope, for example, would add 2,700 miles to the voyage and boost annual fuel costs by about $3.5 million, according to the U.S. Department of Transportation's Maritime Administration. In addition, it said using that route would mean the ship could make only five round trips a year instead of six, cutting delivery capacity by 26 percent.
European economies stand to absorb most of any extra expense. The Maritime Administration says more than 80 percent of trade moving through the gulf is with Europe.
While some shipping companies, such the world's largest, Maersk, have decided to take their oil tankers around the Cape of Good Hope, others have been reluctant to shoulder the extra expense, according to Graeme-Gibbon Brooks, the managing director of Dryad Maritime Intelligence Service, based in the English port city of Southampton.
"We have had a couple of phone calls from people saying: 'It might well be safer to go around the Cape of Good Hope, but our competitors are not doing it,'" Brooks said. "The problem with any diversion, be it through the south of the cape or elsewhere, is that it's going to have a commercial impact which will ultimately be borne by the consumer."
But one analyst said the global downturn may be making the southern route more attractive.
"Because there are so many vessels plying the seas right now, it makes sense to take the leisurely way around Africa. ... You're removing capacity from the industry and helping to put upward pressure on freight rates," said Jim Wilson, the Middle East correspondent for Fairplay International Shipping Weekly magazine.
As a result, demand for fuel on the West coast of Africa has surged as more ships coming from the east need to refuel after circling the cape, he said. At the same time, Egypt's revenues from Suez traffic are down sharply from last year.
The pirate attacks have begun to spook some mariners. Noel Choong, head of the International Maritime Bureau's piracy reporting center in Malaysia, noted that the crew of one ship recently refused to travel from Mombasa, Kenya, to South Africa for fear of being attacked.
Still, as security consultant David Johnson noted, taking the long way around to avoid the Somali coast doesn't guarantee safety from pirates. The Saudi supertanker Sirius Star was captured by pirates six months ago while deep in the Indian Ocean, far from the pirates' traditional hunting ground.
"Whichever way you go you're going to run into pirate hotspots somewhere down the line," said Johnson, the director of U.K.-based EOS Risk Management.
Insurance companies have also taken note of the pirates' increased range:
"Until recently, insurers regarded vessels as being relatively safe if they kept a reasonable distance from the Somali coast," said Smith, the manager at Lloyd's Market Association. Writing in the February-March issue of Cargo Security International, he said the situation had now changed.
The latest pirate attacks come at a particularly challenging time for the shipping industry.
Dubai-based DP World, one of the world's biggest port operators, warned last month that a falloff in global trade that began late last year "shows little sign of easing" because of the global recession.
Drewry Shipping Consultants Ltd. recently predicted cargo container shipments globally will drop 4.5 percent this year following decades of constant growth.
___
Associated Press Writers Adam Schreck in Manama, Bahrain, and Sean Yoong in Kuala Lumpur, Malaysia, contributed to this report.
As a ragtag group of gunmen face off against the U.S. Navy near the coast of Somalia, industry-watchers say shipping companies already smarting from the global downturn are forced to pony up extra cash for steeper premiums to cover multimillion dollar ransoms or take the long way around African continent in the hope of dodging hijackers.
"The pirates were the only people who had a good year in 2008," said Crispian Cuss, a security consultant with the Dubai-based Olive Group.
The Gulf of Aden, which connects the Indian Ocean to the Red Sea and the Suez Canal, is one of the busiest and most dangerous waterways in the world. As pirates have become more aggressive, the cost of insuring ships has gone up. Some companies are spending more time training their crews, others are avoiding the area altogether — taking long trips around the Africa's southern tip that can potentially add millions to the cost of each journey.
While the coast of Somalia has been a problem for years, it was flagged in May as an area of particular concern by Lloyd's Market Association, and premiums have been rising — at least tenfold, according to some media reports. Neil Smith, the senior manager for underwriting for Lloyd's Market Association, has said the exact figures are commercially sensitive in a highly competitive industry.
Large ships generally carry three separate types of insurance. Marine — or hull — insurance covers physical risks, such as grounding or damage from heavy seas. A second type of policy, protection and indemnity, covers crew issues, while war risk insurance covers acts of war, insurgency, and terrorism.
Although war risk policies typically cover hijackings and piracy, insurers often charge extra for ships that venture into high risk areas such as the Gulf of Aden. Others, including Chicago-based Aon Corp. and London's International Security Solutions Ltd., have recently launched new plans specifically tailored to cover losses incurred by piracy — for example by including ransoms and cargo delays under the same policy.
The other option available to ship operators, taking the long way around Africa's Cape of Good Hope instead of the short cut through the Suez Canal, is also expensive.
Routing a tanker from Saudi Arabia to the United States through the Cape of Good Hope, for example, would add 2,700 miles to the voyage and boost annual fuel costs by about $3.5 million, according to the U.S. Department of Transportation's Maritime Administration. In addition, it said using that route would mean the ship could make only five round trips a year instead of six, cutting delivery capacity by 26 percent.
European economies stand to absorb most of any extra expense. The Maritime Administration says more than 80 percent of trade moving through the gulf is with Europe.
While some shipping companies, such the world's largest, Maersk, have decided to take their oil tankers around the Cape of Good Hope, others have been reluctant to shoulder the extra expense, according to Graeme-Gibbon Brooks, the managing director of Dryad Maritime Intelligence Service, based in the English port city of Southampton.
"We have had a couple of phone calls from people saying: 'It might well be safer to go around the Cape of Good Hope, but our competitors are not doing it,'" Brooks said. "The problem with any diversion, be it through the south of the cape or elsewhere, is that it's going to have a commercial impact which will ultimately be borne by the consumer."
But one analyst said the global downturn may be making the southern route more attractive.
"Because there are so many vessels plying the seas right now, it makes sense to take the leisurely way around Africa. ... You're removing capacity from the industry and helping to put upward pressure on freight rates," said Jim Wilson, the Middle East correspondent for Fairplay International Shipping Weekly magazine.
As a result, demand for fuel on the West coast of Africa has surged as more ships coming from the east need to refuel after circling the cape, he said. At the same time, Egypt's revenues from Suez traffic are down sharply from last year.
The pirate attacks have begun to spook some mariners. Noel Choong, head of the International Maritime Bureau's piracy reporting center in Malaysia, noted that the crew of one ship recently refused to travel from Mombasa, Kenya, to South Africa for fear of being attacked.
Still, as security consultant David Johnson noted, taking the long way around to avoid the Somali coast doesn't guarantee safety from pirates. The Saudi supertanker Sirius Star was captured by pirates six months ago while deep in the Indian Ocean, far from the pirates' traditional hunting ground.
"Whichever way you go you're going to run into pirate hotspots somewhere down the line," said Johnson, the director of U.K.-based EOS Risk Management.
Insurance companies have also taken note of the pirates' increased range:
"Until recently, insurers regarded vessels as being relatively safe if they kept a reasonable distance from the Somali coast," said Smith, the manager at Lloyd's Market Association. Writing in the February-March issue of Cargo Security International, he said the situation had now changed.
The latest pirate attacks come at a particularly challenging time for the shipping industry.
Dubai-based DP World, one of the world's biggest port operators, warned last month that a falloff in global trade that began late last year "shows little sign of easing" because of the global recession.
Drewry Shipping Consultants Ltd. recently predicted cargo container shipments globally will drop 4.5 percent this year following decades of constant growth.
___
Associated Press Writers Adam Schreck in Manama, Bahrain, and Sean Yoong in Kuala Lumpur, Malaysia, contributed to this report.
Monday, March 30, 2009
SunTrust Insurance Head Wants Channel Change
By Matt Ackermann
March 26, 2009
Steven Turtz, the new president of SunTrust Insurance Services Inc., said he was hired to "significantly" expand the SunTrust Banks Inc. unit by increasing distribution within the bank."This is a business that is ready to explode," Turtz said in an interview last week. "We have critical mass and we have proven that insurance products can be delivered through SunTrust. Now, we just have to take it to the next level."Turtz, who succeeded David Sweigart, said there are a lot of ways to expand distribution through the Atlanta company's bank and wealth management channels.SunTrust Insurance currently offers its products and services almost exclusively to the bank's high-net-worth customers; if it can offer insurance products to all of the bank's customers, the revenue payoff can be considerable, he said."SunTrust Insurance was built as a boutique business to handle one segment of customers, but I really believe I was brought in to increase distribution to all customers," he said."There are distribution channels and customers that SunTrust Insurance is just not taking advantage of, including the retail channel," Turtz said. "I think we are in a perfect storm, because currently there are a lot of banking customers that are worried about their portfolios and their assets. We can present another product and another solution that just isn't discussed very often. We haven't taken advantage of all the customers that SunTrust provides banking to."Turtz, who started his new job last week after a stint with Comerica Inc., said he expects SunTrust Insurance's revenue to increase by 30% to 40% in the next 24 months and that he expects to double business in the next three years."Quite frankly, we are heading in the right direction and we have certainly made strides in the right direction," he said. "We have the people in place to help make this a mainstream product."In the past two years, SunTrust "didn't expand distribution" in insurance, he said."They filled a good space with SunTrust's wealthy clients, but since then they haven't taken advantage of their other channels. They became stagnant, and basically that is the reason I am here."Turtz said he plans to add staff to increase sales, including hiring from other banks. "There are a lot of quality people out there today because of this environment we are working in," he said. "My goal continues to be to find ways to grow and expand, and that requires people from both a sales and marketing perspective. Taking this organization to the next level means bringing on professional from wire houses and banks."SunTrust has steadily increased its insurance revenue over the past 10 years. According to data from Michael White Associates, a Radnor, Pa., company that tracks the investment and insurance industry, SunTrust ranked 33rd nationally in insurance brokerage income as of Sept. 30, with $12.2 million. Comerica ranked 51st, with $7.7 million."SunTrust has potential to grow, but it gets more difficult to get larger in terms of dollar volume as you keep climbing," Michael White, the company's president, said in an interview. "There is less room for growth at SunTrust than there was at Comerica. SunTrust is not a name you immediately think of in terms of their insurance business."Turtz spent two and a half years at Comerica. Before joining Comerica he worked at Highland Capital and Wells Fargo. He accepted the position at SunTrust "to work at a company with a real commitment to insurance," he said. It "is just a much, much bigger and broader business base and a company that has insurance entrenched in its financial planning model."That is not to say Comerica neglected the insurance line, but it was "more of a commercial bank," focused on its business customers, Turtz said. "The size and scale was just not as large. We were spending time building" the insurance business "on the retail and business side rather than thinking of it as a component of a wealth management platform.""In this environment, it is important to understand taking a consultative approach to selling products," he said. "Two years ago, customers were very concerned with returns. Now they are interested in products that are insured."Mr. White said Comerica, which was No. 72 in insurance brokerage income in March 2007, has "really been making good steady progress."
March 26, 2009
Steven Turtz, the new president of SunTrust Insurance Services Inc., said he was hired to "significantly" expand the SunTrust Banks Inc. unit by increasing distribution within the bank."This is a business that is ready to explode," Turtz said in an interview last week. "We have critical mass and we have proven that insurance products can be delivered through SunTrust. Now, we just have to take it to the next level."Turtz, who succeeded David Sweigart, said there are a lot of ways to expand distribution through the Atlanta company's bank and wealth management channels.SunTrust Insurance currently offers its products and services almost exclusively to the bank's high-net-worth customers; if it can offer insurance products to all of the bank's customers, the revenue payoff can be considerable, he said."SunTrust Insurance was built as a boutique business to handle one segment of customers, but I really believe I was brought in to increase distribution to all customers," he said."There are distribution channels and customers that SunTrust Insurance is just not taking advantage of, including the retail channel," Turtz said. "I think we are in a perfect storm, because currently there are a lot of banking customers that are worried about their portfolios and their assets. We can present another product and another solution that just isn't discussed very often. We haven't taken advantage of all the customers that SunTrust provides banking to."Turtz, who started his new job last week after a stint with Comerica Inc., said he expects SunTrust Insurance's revenue to increase by 30% to 40% in the next 24 months and that he expects to double business in the next three years."Quite frankly, we are heading in the right direction and we have certainly made strides in the right direction," he said. "We have the people in place to help make this a mainstream product."In the past two years, SunTrust "didn't expand distribution" in insurance, he said."They filled a good space with SunTrust's wealthy clients, but since then they haven't taken advantage of their other channels. They became stagnant, and basically that is the reason I am here."Turtz said he plans to add staff to increase sales, including hiring from other banks. "There are a lot of quality people out there today because of this environment we are working in," he said. "My goal continues to be to find ways to grow and expand, and that requires people from both a sales and marketing perspective. Taking this organization to the next level means bringing on professional from wire houses and banks."SunTrust has steadily increased its insurance revenue over the past 10 years. According to data from Michael White Associates, a Radnor, Pa., company that tracks the investment and insurance industry, SunTrust ranked 33rd nationally in insurance brokerage income as of Sept. 30, with $12.2 million. Comerica ranked 51st, with $7.7 million."SunTrust has potential to grow, but it gets more difficult to get larger in terms of dollar volume as you keep climbing," Michael White, the company's president, said in an interview. "There is less room for growth at SunTrust than there was at Comerica. SunTrust is not a name you immediately think of in terms of their insurance business."Turtz spent two and a half years at Comerica. Before joining Comerica he worked at Highland Capital and Wells Fargo. He accepted the position at SunTrust "to work at a company with a real commitment to insurance," he said. It "is just a much, much bigger and broader business base and a company that has insurance entrenched in its financial planning model."That is not to say Comerica neglected the insurance line, but it was "more of a commercial bank," focused on its business customers, Turtz said. "The size and scale was just not as large. We were spending time building" the insurance business "on the retail and business side rather than thinking of it as a component of a wealth management platform.""In this environment, it is important to understand taking a consultative approach to selling products," he said. "Two years ago, customers were very concerned with returns. Now they are interested in products that are insured."Mr. White said Comerica, which was No. 72 in insurance brokerage income in March 2007, has "really been making good steady progress."
Health Insurance Data Mistakenly Put Online
La Plata Patients Affected by Court Error Patients at a La Plata medical office are among about 250 people whose health insurance information was erroneously made public online by the U.S. District Court of Maryland.
The information was included in public documents through the federal court system's searchable online database, said a lawyer involved in the case. The breach was first reported Sunday by the Washington Examiner. The information has since been blocked from public view.
Some of the Washington area residents affected are patients at the Crain Highway medical offices where Abdul Fadul practices. Fadul, who is listed as an internist and cardiologist, and one of his partners, Ali Al-Attar, are under federal investigation on suspicion of health insurance fraud, according to court documents. Al-Attar, an internist, does not appear to practice in La Plata. Both doctors operate offices in Falls Church and Oxon Hill.
Al-Attar's attorney, Bruce Marcus, said that names, birthdays and health-care policy numbers were listed online for about 250 people. Social Security numbers were listed for about 50. Marcus said he did not know how many of those affected are patients at the La Plata clinic. Calls to the clinic and to Fadul's attorney, Paul Kemp, were not returned.
"The disclosure was done through government action, so they will have to do whatever is necessary to ensure that there is no untoward use of this private information," Marcus said. Calls to the court were not returned.
Federal officials raided the doctors' offices this month after an employee alerted them to suspicious billing methods. The doctors are accused of billing health insurance companies for more than $2 million worth of services they did not provide, according to court documents.
Corporations, universities and health providers have mistakenly posted private information online, exposing people to the risk of identity theft, according to the Electronic Privacy Information Center, a Washington-based research group. But Lillie Coney, the center's associate director, said she had never heard of a similar incident involving medical information obtained through online court documents.
"When a court posts medical information, it punishes patients who had nothing to do with the prosecution or the crime allegedly committed in first place," Coney said.
Such information is especially sensitive, she said, because a privacy breach could reveal a patient's medical conditions. The center has pushed for tighter restrictions regarding publicly accessible online court records, especially as it relates to people incidental to an investigation.
"It wouldn't have been enough just to black out the names, because patients can be identified by much more than just their name and Social Security number," Coney said. "And in a small community, there's an even greater ability to identify innocent people."
The information was included in public documents through the federal court system's searchable online database, said a lawyer involved in the case. The breach was first reported Sunday by the Washington Examiner. The information has since been blocked from public view.
Some of the Washington area residents affected are patients at the Crain Highway medical offices where Abdul Fadul practices. Fadul, who is listed as an internist and cardiologist, and one of his partners, Ali Al-Attar, are under federal investigation on suspicion of health insurance fraud, according to court documents. Al-Attar, an internist, does not appear to practice in La Plata. Both doctors operate offices in Falls Church and Oxon Hill.
Al-Attar's attorney, Bruce Marcus, said that names, birthdays and health-care policy numbers were listed online for about 250 people. Social Security numbers were listed for about 50. Marcus said he did not know how many of those affected are patients at the La Plata clinic. Calls to the clinic and to Fadul's attorney, Paul Kemp, were not returned.
"The disclosure was done through government action, so they will have to do whatever is necessary to ensure that there is no untoward use of this private information," Marcus said. Calls to the court were not returned.
Federal officials raided the doctors' offices this month after an employee alerted them to suspicious billing methods. The doctors are accused of billing health insurance companies for more than $2 million worth of services they did not provide, according to court documents.
Corporations, universities and health providers have mistakenly posted private information online, exposing people to the risk of identity theft, according to the Electronic Privacy Information Center, a Washington-based research group. But Lillie Coney, the center's associate director, said she had never heard of a similar incident involving medical information obtained through online court documents.
"When a court posts medical information, it punishes patients who had nothing to do with the prosecution or the crime allegedly committed in first place," Coney said.
Such information is especially sensitive, she said, because a privacy breach could reveal a patient's medical conditions. The center has pushed for tighter restrictions regarding publicly accessible online court records, especially as it relates to people incidental to an investigation.
"It wouldn't have been enough just to black out the names, because patients can be identified by much more than just their name and Social Security number," Coney said. "And in a small community, there's an even greater ability to identify innocent people."
Monday, March 23, 2009
Hannaford to Partner With Insurance Companies
SCARBOROUGH, Maine — As the nation’s health care costs continue to rise, Hannaford Bros.’ customers may get discounts on their insurance premiums under a new initiative in the works. The retailer plans to link its new myHannaford online shopping tool to health insurance companies’ customer reward initiatives, SN has learned.
Under a pilot program slated to kick off in the second quarter, several yet-to-be-named insurance companies will reward customers who buy healthy foods at Hannaford by giving them free gift cards for products that earn Guiding Stars, according to Julie Greene, Hannaford’s healthy living director. Discounts on monthly insurance premiums are also being discussed.
As proof that they’re buying healthy foods, customers would print out their shopping history via myHannaford and send it to their insurance company. Available via a link on the Hannaford.com website, myHannaford provides side-by-side comparisons of foods’ nutritional value, along with their Guiding Stars rating and price.
The insurance plan comes at a time when Safeway has said it plans to reward employees with premium reductions this year if their FoodFlex reports show that they’re buying healthy foods. FoodFlex is a personalized online food and nutrition tool that delivers a nutritional analysis of food purchases made with loyalty cards.
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© 2009 Penton Media Inc.
Under a pilot program slated to kick off in the second quarter, several yet-to-be-named insurance companies will reward customers who buy healthy foods at Hannaford by giving them free gift cards for products that earn Guiding Stars, according to Julie Greene, Hannaford’s healthy living director. Discounts on monthly insurance premiums are also being discussed.
As proof that they’re buying healthy foods, customers would print out their shopping history via myHannaford and send it to their insurance company. Available via a link on the Hannaford.com website, myHannaford provides side-by-side comparisons of foods’ nutritional value, along with their Guiding Stars rating and price.
The insurance plan comes at a time when Safeway has said it plans to reward employees with premium reductions this year if their FoodFlex reports show that they’re buying healthy foods. FoodFlex is a personalized online food and nutrition tool that delivers a nutritional analysis of food purchases made with loyalty cards.
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© 2009 Penton Media Inc.
Ping An’s Chairman Ma Didn’t Take a Salary in 2008
Feb. 24 (Bloomberg) -- Ping An Insurance (Group) Co., China’s second-largest insurer, said Chief Executive Officer Peter Ma will forgo his salary for 2008 after the company lost $2.3 billion on its investment in Fortis.
Ma, who earned 66.16 million yuan ($9.7 million) in 2007, made the decision after the financial crisis “affected company performance,” Ping An’s Shenzhen-based spokesman Sheng Ruisheng said in a telephone interview today.
Ping An has forecast a “significant” drop in annual profit because of the decline in the value of its stake in Belgium’s Fortis, bailed out by three European governments last year. Ma, who earned 33 times more than his counterpart at larger China Life Insurance Co. in 2007, joins executives at companies from Citigroup Inc. to Sany Heavy Industry Co. who have taken pay cuts as the financial crisis erodes earnings.
“That was the company’s response to the public’s skepticism over its high compensation and management abilities” following the Fortis losses, said Olive Xia, an analyst at Core Pacific Yamaichi in Shanghai. “It can help restore investor confidence, but will have little effect on company profit.”
Ping An’s net income may have dropped by 30 percent from 2007 to 13 billion yuan last year, said Xia. The company, scheduled to release 2008 financial results April 10, has fallen 58 percent in Hong Kong trading since the start of last year.
Pay Cuts
Ma’s compensation compares with the 1.99 million yuan made by Yang Chao, chairman of China Life, the nation’s biggest insurer, in 2007, and 1.156 million yuan PICC Property & Casualty Co. paid Chairman Wu Yan for the same year.
Sheng declined to say whether Ma, 53, received the money and is returning it or didn’t get paid last year, as well as whether other Ping An senior executives or board members agreed to compensation cuts.
Ma, who has been with Ping An since 1988 when the company was set up and has been chairman since 1994, gave 20 million yuan from the 66.16 million yuan to Beijing-based charity China Soong Ching Ling Foundation, the company said. His income after tax and the donation was 25.794 million yuan.
Citigroup Chief Executive Officer Vikram Pandit said Feb. 11 that he will take a salary of $1 and no bonus until the bank, which has accepted $45 billion in government bailout money, returns to profitability.
Sany Heavy, China’s biggest supplier of concrete-making equipment, said Feb. 5 it plans to cut Chairman Liang Wengen’s annual salary to 15 cents and slash the pay of board members by as much as 90 percent in 2009 because of the financial crisis.
Fortis Stake
Ping An in November 2007 paid 1.81 billion euros for a 4.9 percent stake in Fortis, which became a casualty of the global credit crunch after pouring 24.2 billion euros ($31 billion) into the acquisition of ABN Amro Holding NV assets in 2008 just as the U.S. subprime-mortgage market collapsed.
The Chinese insurer voted against a state-organized breakup of Fortis, once Belgium’s biggest financial services company, on Feb. 11, saying asset sales driven by the Belgian government “severely impaired” shareholders’ interests. Ping An reported a third-quarter loss after a 15.7 billion yuan impairment charge on the Fortis investment.
Ping An Chief Investment Officer John Pearce left the company two months ago.
To contact the reporter for this story: Zhang Dingmin in Beijing at Dzhang14@bloomberg.net Last Updated: February 24, 2009 00:36 EST
Ma, who earned 66.16 million yuan ($9.7 million) in 2007, made the decision after the financial crisis “affected company performance,” Ping An’s Shenzhen-based spokesman Sheng Ruisheng said in a telephone interview today.
Ping An has forecast a “significant” drop in annual profit because of the decline in the value of its stake in Belgium’s Fortis, bailed out by three European governments last year. Ma, who earned 33 times more than his counterpart at larger China Life Insurance Co. in 2007, joins executives at companies from Citigroup Inc. to Sany Heavy Industry Co. who have taken pay cuts as the financial crisis erodes earnings.
“That was the company’s response to the public’s skepticism over its high compensation and management abilities” following the Fortis losses, said Olive Xia, an analyst at Core Pacific Yamaichi in Shanghai. “It can help restore investor confidence, but will have little effect on company profit.”
Ping An’s net income may have dropped by 30 percent from 2007 to 13 billion yuan last year, said Xia. The company, scheduled to release 2008 financial results April 10, has fallen 58 percent in Hong Kong trading since the start of last year.
Pay Cuts
Ma’s compensation compares with the 1.99 million yuan made by Yang Chao, chairman of China Life, the nation’s biggest insurer, in 2007, and 1.156 million yuan PICC Property & Casualty Co. paid Chairman Wu Yan for the same year.
Sheng declined to say whether Ma, 53, received the money and is returning it or didn’t get paid last year, as well as whether other Ping An senior executives or board members agreed to compensation cuts.
Ma, who has been with Ping An since 1988 when the company was set up and has been chairman since 1994, gave 20 million yuan from the 66.16 million yuan to Beijing-based charity China Soong Ching Ling Foundation, the company said. His income after tax and the donation was 25.794 million yuan.
Citigroup Chief Executive Officer Vikram Pandit said Feb. 11 that he will take a salary of $1 and no bonus until the bank, which has accepted $45 billion in government bailout money, returns to profitability.
Sany Heavy, China’s biggest supplier of concrete-making equipment, said Feb. 5 it plans to cut Chairman Liang Wengen’s annual salary to 15 cents and slash the pay of board members by as much as 90 percent in 2009 because of the financial crisis.
Fortis Stake
Ping An in November 2007 paid 1.81 billion euros for a 4.9 percent stake in Fortis, which became a casualty of the global credit crunch after pouring 24.2 billion euros ($31 billion) into the acquisition of ABN Amro Holding NV assets in 2008 just as the U.S. subprime-mortgage market collapsed.
The Chinese insurer voted against a state-organized breakup of Fortis, once Belgium’s biggest financial services company, on Feb. 11, saying asset sales driven by the Belgian government “severely impaired” shareholders’ interests. Ping An reported a third-quarter loss after a 15.7 billion yuan impairment charge on the Fortis investment.
Ping An Chief Investment Officer John Pearce left the company two months ago.
To contact the reporter for this story: Zhang Dingmin in Beijing at Dzhang14@bloomberg.net Last Updated: February 24, 2009 00:36 EST
Rivals Bid for A.I.G. Insurance Unit, Report Says
The American International Group, which is reportedly negotiating for tens of billions of dollars in additional assistance amid mounting losses, has received offers from MetLife and Axa for its American Life Insurance unit, Bloomberg News reported, citing three people familiar with the situation.
A sale of a life-insurance unit, which is present in more than 50 countries, would be the biggest step yet in the company’s dismantling, the news service said.
According to Bloomberg News, MetLife made a preliminary bid of $11.2 billion for the unit, but the price could come down to about $8 billion because of the unit’s financial condition. Axa has tabled a rival offer, which excludes the unit’s lucrative Japanese operations.
If A.I.G doesn’t get the right price, it may shelves the sale or issue shares, Bloomberg News said.
Go to Article from Bloomberg News »
A sale of a life-insurance unit, which is present in more than 50 countries, would be the biggest step yet in the company’s dismantling, the news service said.
According to Bloomberg News, MetLife made a preliminary bid of $11.2 billion for the unit, but the price could come down to about $8 billion because of the unit’s financial condition. Axa has tabled a rival offer, which excludes the unit’s lucrative Japanese operations.
If A.I.G doesn’t get the right price, it may shelves the sale or issue shares, Bloomberg News said.
Go to Article from Bloomberg News »
Monday, March 16, 2009
Rivals Bid for A.I.G. Insurance Unit, Report Says
The American International Group, which is reportedly negotiating for tens of billions of dollars in additional assistance amid mounting losses, has received offers from MetLife and Axa for its American Life Insurance unit, Bloomberg News reported, citing three people familiar with the situation.
A sale of a life-insurance unit, which is present in more than 50 countries, would be the biggest step yet in the company’s dismantling, the news service said.
According to Bloomberg News, MetLife made a preliminary bid of $11.2 billion for the unit, but the price could come down to about $8 billion because of the unit’s financial condition. Axa has tabled a rival offer, which excludes the unit’s lucrative Japanese operations.
If A.I.G doesn’t get the right price, it may shelves the sale or issue shares, Bloomberg News said.
A sale of a life-insurance unit, which is present in more than 50 countries, would be the biggest step yet in the company’s dismantling, the news service said.
According to Bloomberg News, MetLife made a preliminary bid of $11.2 billion for the unit, but the price could come down to about $8 billion because of the unit’s financial condition. Axa has tabled a rival offer, which excludes the unit’s lucrative Japanese operations.
If A.I.G doesn’t get the right price, it may shelves the sale or issue shares, Bloomberg News said.
Tuesday, March 10, 2009
AIG Receives Bids For Life Insurance Unit: Report
LONDON -- American International Group Inc. has received bids from MetLife Inc. and Axa for its American Life Insurance Co. unit, according to a Bloomberg report citing people familiar with the matter. MetLife made a preliminary offer of $11.2 billion, though the price may drop to around $8 billion because of the unit's worsening condition the report said. The Axa bid, meanwhile, excluded operations in Japan, it added. If it doesn't find a deal at the right price, AIG may shelve the sale or issue shares to the public. AIG said Monday that Monday that it's evaluating "potential new alternatives" with the Federal Reserve Bank of New York to tackle the insurers problems.
Copyright © 2009 MarketWatch, Inc.
Copyright © 2009 MarketWatch, Inc.
Thursday, February 19, 2009
Insurance Commissioner OKs State Farm's Exit From Florida
By RUSSELL RAY The Tampa Tribune
Published: February 13, 2009
Updated: 02/13/2009 02:32 pm
Florida Insurance Commissioner Kevin McCarty today approved State Farm's exit from Florida under a plan that would keep state-run Citizens Property Insurance from swelling.
McCarty approved the company's plan to drop some 800,000 homeowners policies with several conditions.
"Our goal is keep as many homes as possible in the private sector at or below the rates that are currently being charged by State Farm," McCarty said during a conference call with reporters.
State Farm has 21 days to agree to McCarty's conditions or request an appeal.
Under McCarty's plan, the company must:
• Give up its Certificate of Authority within 30 days.
• "Facilitate the orderly transition of policies" to other private insurers and shall not place any policies into state-run Citizens Property Insurance Corp.
• Issue pro-rated refunds "of premium to any policyholder seeking to voluntarily cancel or non-renew a policy and will not short-rate the return premium for any policy in any line, whether it be automobile, boat or property insurance coverage."
• Consider "all offers to buy or assume all or part of its business."
McCarty said State Farm's plan to withdraw from the property insurance business in Florida would have been "hazardous" to the State Farm policyholders and Florida taxpayers.
State Farm's plan called for dumping all of its customers into state-backed Citizens, which has nearly 1.1 million policies and is already overexposed and underfunded, McCarty said.
"We're not allowing them to warehouse these policies in Citizens," he said.
McCarty's plan would require the insurance giant to consider all offers from private insurers. Right now, State Farm agents are prohibited from writing policies for other insurers except for Citizens.
State law allows State Farm agents to offer clients "multi-line discounts" if they keep the auto insurance policy with State Farm and place the homeowners policy with Citizens.
"We are not going to allow them to hold their agents captive and not allow them to broker with other companies," McCarty said.
Requiring State Farm to consider all offers means State Farm agents "will now be free to help Floridians find the property insurance coverage that best suits their needs," said Florida Chief Financial Officer Alex Sink.
McCarty said he is confident that Florida's private insurers can absorb the bulk of policies State Farm plans to drop over two years.
"I would not be approving their withdrawal plan if I did not believe there was private sector capacity to take these policies," he said.
McCarty disagreed with critics who maintain that many of Florida's private insurers are thinly capitalized and untested.
"These are well-capitalized companies," he said. "Many of them enjoy AM Best ratings that are better and more financially sound than State Farm."
McCarty said there are 15 private insurers ready to assume State Farm's policies. He declined to name the companies, saying they are negotiating the transfer of State Farm policies.
Lisa Miller, a lobbyist representing Florida insurers, said some domestic insurance companies are financially stronger than State Farm.
One of her clients, for example, has been in business for 10 years, she said.
In the future, the bulk of Florida's homeowners polices will be carried by a growing number of smaller insurers, said Miller, a former deputy and lobbyist for the state's Office of Insurance Regulation.
"There's two philosophies," Miller said. "There's the philosophy that 30 companies should have 3 percent of the market and the philosophy that four companies should have 25 percent each. I think the economic times are supporting the former."
In a statement, State Farm said it needs time to study McCarty's plan before making any decision.
"It is our sincere hope that we can work with the Office of Insurance Regulation to establish a way for State Farm agents to service policies directly out of State Farm Florida into OIR-approved companies," the company said.
State Farm submitted its plan to drop 1.2 million policies to regulators late last month, saying it was losing $20 million a month and would run out of money to pay claims in 2011.
Published: February 13, 2009
Updated: 02/13/2009 02:32 pm
Florida Insurance Commissioner Kevin McCarty today approved State Farm's exit from Florida under a plan that would keep state-run Citizens Property Insurance from swelling.
McCarty approved the company's plan to drop some 800,000 homeowners policies with several conditions.
"Our goal is keep as many homes as possible in the private sector at or below the rates that are currently being charged by State Farm," McCarty said during a conference call with reporters.
State Farm has 21 days to agree to McCarty's conditions or request an appeal.
Under McCarty's plan, the company must:
• Give up its Certificate of Authority within 30 days.
• "Facilitate the orderly transition of policies" to other private insurers and shall not place any policies into state-run Citizens Property Insurance Corp.
• Issue pro-rated refunds "of premium to any policyholder seeking to voluntarily cancel or non-renew a policy and will not short-rate the return premium for any policy in any line, whether it be automobile, boat or property insurance coverage."
• Consider "all offers to buy or assume all or part of its business."
McCarty said State Farm's plan to withdraw from the property insurance business in Florida would have been "hazardous" to the State Farm policyholders and Florida taxpayers.
State Farm's plan called for dumping all of its customers into state-backed Citizens, which has nearly 1.1 million policies and is already overexposed and underfunded, McCarty said.
"We're not allowing them to warehouse these policies in Citizens," he said.
McCarty's plan would require the insurance giant to consider all offers from private insurers. Right now, State Farm agents are prohibited from writing policies for other insurers except for Citizens.
State law allows State Farm agents to offer clients "multi-line discounts" if they keep the auto insurance policy with State Farm and place the homeowners policy with Citizens.
"We are not going to allow them to hold their agents captive and not allow them to broker with other companies," McCarty said.
Requiring State Farm to consider all offers means State Farm agents "will now be free to help Floridians find the property insurance coverage that best suits their needs," said Florida Chief Financial Officer Alex Sink.
McCarty said he is confident that Florida's private insurers can absorb the bulk of policies State Farm plans to drop over two years.
"I would not be approving their withdrawal plan if I did not believe there was private sector capacity to take these policies," he said.
McCarty disagreed with critics who maintain that many of Florida's private insurers are thinly capitalized and untested.
"These are well-capitalized companies," he said. "Many of them enjoy AM Best ratings that are better and more financially sound than State Farm."
McCarty said there are 15 private insurers ready to assume State Farm's policies. He declined to name the companies, saying they are negotiating the transfer of State Farm policies.
Lisa Miller, a lobbyist representing Florida insurers, said some domestic insurance companies are financially stronger than State Farm.
One of her clients, for example, has been in business for 10 years, she said.
In the future, the bulk of Florida's homeowners polices will be carried by a growing number of smaller insurers, said Miller, a former deputy and lobbyist for the state's Office of Insurance Regulation.
"There's two philosophies," Miller said. "There's the philosophy that 30 companies should have 3 percent of the market and the philosophy that four companies should have 25 percent each. I think the economic times are supporting the former."
In a statement, State Farm said it needs time to study McCarty's plan before making any decision.
"It is our sincere hope that we can work with the Office of Insurance Regulation to establish a way for State Farm agents to service policies directly out of State Farm Florida into OIR-approved companies," the company said.
State Farm submitted its plan to drop 1.2 million policies to regulators late last month, saying it was losing $20 million a month and would run out of money to pay claims in 2011.
Thursday, February 12, 2009
CNP Owners Back Cash Bid for Natixis Insurance Unit, Echos Says
By David Whitehouse
Nov. 10 (Bloomberg) -- CNP Assurances SA, France's largest life insurer, has the support of its shareholders for a cash bid for the insurance unit of Natixis SA, Les Echos reported, citing an unidentified person.
State-owned Caisse des Depots et Consignations, which is CNP's largest investor, the French postal service's banking unit La Banque Postale and mutual bank Groupe Caisse d'Epargne are willing to contribute to the bid in line with their CNP stakes, the newspaper said. Natixis hopes to get between 800 million euros ($1.03 billion) and 1 billion euros for its insurance arm, Les Echos said.
To contact the reporter on this story: David Whitehouse in Paris at dwhitehouse1@bloomberg.net. Last Updated: November 10, 2008 01:16 EST
Nov. 10 (Bloomberg) -- CNP Assurances SA, France's largest life insurer, has the support of its shareholders for a cash bid for the insurance unit of Natixis SA, Les Echos reported, citing an unidentified person.
State-owned Caisse des Depots et Consignations, which is CNP's largest investor, the French postal service's banking unit La Banque Postale and mutual bank Groupe Caisse d'Epargne are willing to contribute to the bid in line with their CNP stakes, the newspaper said. Natixis hopes to get between 800 million euros ($1.03 billion) and 1 billion euros for its insurance arm, Les Echos said.
To contact the reporter on this story: David Whitehouse in Paris at dwhitehouse1@bloomberg.net. Last Updated: November 10, 2008 01:16 EST
Wednesday, February 4, 2009
Electronic Signatures in Insurance Field
"Now that the transaction begins and ends electronically, we can fully leverage our electronic forms presentation, and processing," explains Mike Keller, Vice President Life Marketing with Farmers Insurance. "We no longer have to revert back to paper every time a signature is needed. Today, we are realizing the benefits of more accurate and efficient policy processing as well as an enhanced customer experience" To read full press release
Interlink Electronics has pioneered the use of electronic signatures in the insurance industry, and we are responsible for providing many of the top life and property casualty companies in the world with electronic signature technology. Today, the insurance industry looks to straight-through processing in order to reduce costs and increase revenues.
With deployments to over 75,000 insurance agents worldwide, our electronic signature technology has been tried-and-tested by your industry peers. Our eSign Anywhere™ Platform enables you to capture electronic signatures on a variety of documents regardless of where and when the signing occurs:
Empower your in-field agents to capture legally-binding electronic signatures in the comfort of their clients' home. Read more
Give your customers the flexibility to sign online with either a click-through signature or with their touch-screen smartphones. Read more
Adopt end-to-end electronic processes for all internal approvals and eliminate the need to print-and-sign across your entire organization. Read more
By giving you the ability to standardize on one electronic signature platform, Interlink enables you to maximize you technology investment enterprise-wide.
¹ Weber, Craig: "An E-Signature Update for US Insurers", Celent LLC December 2007 http://www.celent.com/
² Weber, Craig: "An E-Signature Update for US Insurers", Celent LLC December 2007 http://www.celent.com/
Interlink Electronics has pioneered the use of electronic signatures in the insurance industry, and we are responsible for providing many of the top life and property casualty companies in the world with electronic signature technology. Today, the insurance industry looks to straight-through processing in order to reduce costs and increase revenues.
With deployments to over 75,000 insurance agents worldwide, our electronic signature technology has been tried-and-tested by your industry peers. Our eSign Anywhere™ Platform enables you to capture electronic signatures on a variety of documents regardless of where and when the signing occurs:
Empower your in-field agents to capture legally-binding electronic signatures in the comfort of their clients' home. Read more
Give your customers the flexibility to sign online with either a click-through signature or with their touch-screen smartphones. Read more
Adopt end-to-end electronic processes for all internal approvals and eliminate the need to print-and-sign across your entire organization. Read more
By giving you the ability to standardize on one electronic signature platform, Interlink enables you to maximize you technology investment enterprise-wide.
¹ Weber, Craig: "An E-Signature Update for US Insurers", Celent LLC December 2007 http://www.celent.com/
² Weber, Craig: "An E-Signature Update for US Insurers", Celent LLC December 2007 http://www.celent.com/
Medical malpractice insurance costs drop along with claims
Medical malpractice insurance has become a soft market that benefits Florida doctors seeking lower rates.
Rates in the primary medical malpractice insurance market fell 8.6 percent in 2007, according to a study released in late October by the Florida Office of Insurance Regulation. That’s a welcome relief from the early part of the decade, when rates shot up by double digits in consecutive years.
A big factor is the declining numbers of closed medical malpractice claims.
Statewide, 3,553 medical malpractice claims were closed in 2007, down from 3,811 in 2006. The 2007 claims led to $523.6 million in indemnity payments and $174.7 million in insurance company fees to defense counsel. The indemnity payments declined 1.4 percent, while defense attorneys collected 5.2 percent more in fees.
The frequency of medical malpractice claims for the number of doctors in Florida is at a historic low, said Matt Gracey, CEO of Delray Beach-based Danna-Gracey, which helps doctors find medical malpractice insurance.
“That’s a reason rates are dropping fairly quickly,” he said of the declining number of claims. “We’ve been in a soft market for 18 months, and it should continue to be softer for the next two to three years.”
Claims are down because doctors are practicing better medicine, said Josh Salman, chief operating officer of Dania Beach-based Healthcare Underwriters Group, the 11th-largest medical malpractice insurer in Florida, with $10.3 million in 2007 premiums. He said tort reform in medical malpractice cases also played a role.
But medical malpractice plaintiff attorney Stuart Grossman, a partner at Grossman Roth in Miami, said the drastic drop in claims over one year is too big to realistically attribute to better medicine. He said the $500,000 cap on non-economic damages instituted by the Florida Legislature in 2003 was the real reason fewer claims are being filed.
“There are plenty of cases, but lawyers are more selective,” Grossman said. “They limited the amount you can collect on, and costs to prepare cases are the same or rising. Sometimes, you can recover no more than a few hundred thousand [dollars], no matter how good the case is.”
Salman said Healthcare Underwriters Group is getting more aggressive in defending cases, rather than settling. That, and the threat of an uninsured doctor losing a multimillion-dollar lawsuit, has driven more doctors to purchase insurance, he said.
Lower medical malpractice insurance rates will help recruit more doctors to Florida, which has a mounting physician shortage as older doctors approach retirement age, Gracey said. But, it will be hard to get doctors in Florida who dropped coverage to pick it back up because it can be such a huge expense.
Even with the rate declines in 2007, Florida has some of the highest rates in the nation, he noted.
By the numbersStatewide, 3,553 medical malpractice claims were closed in 2007, down from 3,811 in 2006. The 2007 claims led to $523.6 million in indemnity payments and $174.7 million in insurance company fees to defense counsel.Source: Florida Office of Insurance Regulation
bbandell@bizjournals.com
Rates in the primary medical malpractice insurance market fell 8.6 percent in 2007, according to a study released in late October by the Florida Office of Insurance Regulation. That’s a welcome relief from the early part of the decade, when rates shot up by double digits in consecutive years.
A big factor is the declining numbers of closed medical malpractice claims.
Statewide, 3,553 medical malpractice claims were closed in 2007, down from 3,811 in 2006. The 2007 claims led to $523.6 million in indemnity payments and $174.7 million in insurance company fees to defense counsel. The indemnity payments declined 1.4 percent, while defense attorneys collected 5.2 percent more in fees.
The frequency of medical malpractice claims for the number of doctors in Florida is at a historic low, said Matt Gracey, CEO of Delray Beach-based Danna-Gracey, which helps doctors find medical malpractice insurance.
“That’s a reason rates are dropping fairly quickly,” he said of the declining number of claims. “We’ve been in a soft market for 18 months, and it should continue to be softer for the next two to three years.”
Claims are down because doctors are practicing better medicine, said Josh Salman, chief operating officer of Dania Beach-based Healthcare Underwriters Group, the 11th-largest medical malpractice insurer in Florida, with $10.3 million in 2007 premiums. He said tort reform in medical malpractice cases also played a role.
But medical malpractice plaintiff attorney Stuart Grossman, a partner at Grossman Roth in Miami, said the drastic drop in claims over one year is too big to realistically attribute to better medicine. He said the $500,000 cap on non-economic damages instituted by the Florida Legislature in 2003 was the real reason fewer claims are being filed.
“There are plenty of cases, but lawyers are more selective,” Grossman said. “They limited the amount you can collect on, and costs to prepare cases are the same or rising. Sometimes, you can recover no more than a few hundred thousand [dollars], no matter how good the case is.”
Salman said Healthcare Underwriters Group is getting more aggressive in defending cases, rather than settling. That, and the threat of an uninsured doctor losing a multimillion-dollar lawsuit, has driven more doctors to purchase insurance, he said.
Lower medical malpractice insurance rates will help recruit more doctors to Florida, which has a mounting physician shortage as older doctors approach retirement age, Gracey said. But, it will be hard to get doctors in Florida who dropped coverage to pick it back up because it can be such a huge expense.
Even with the rate declines in 2007, Florida has some of the highest rates in the nation, he noted.
By the numbersStatewide, 3,553 medical malpractice claims were closed in 2007, down from 3,811 in 2006. The 2007 claims led to $523.6 million in indemnity payments and $174.7 million in insurance company fees to defense counsel.Source: Florida Office of Insurance Regulation
bbandell@bizjournals.com
CNP Owners Back Cash Bid for Natixis Insurance Unit, Echos Says
By David Whitehouse
Nov. 10 (Bloomberg) -- CNP Assurances SA, France's largest life insurer, has the support of its shareholders for a cash bid for the insurance unit of Natixis SA, Les Echos reported, citing an unidentified person.
State-owned Caisse des Depots et Consignations, which is CNP's largest investor, the French postal service's banking unit La Banque Postale and mutual bank Groupe Caisse d'Epargne are willing to contribute to the bid in line with their CNP stakes, the newspaper said. Natixis hopes to get between 800 million euros ($1.03 billion) and 1 billion euros for its insurance arm, Les Echos said.
To contact the reporter on this story: David Whitehouse in Paris at dwhitehouse1@bloomberg.net. Last Updated: November 10, 2008 01:16 EST
Nov. 10 (Bloomberg) -- CNP Assurances SA, France's largest life insurer, has the support of its shareholders for a cash bid for the insurance unit of Natixis SA, Les Echos reported, citing an unidentified person.
State-owned Caisse des Depots et Consignations, which is CNP's largest investor, the French postal service's banking unit La Banque Postale and mutual bank Groupe Caisse d'Epargne are willing to contribute to the bid in line with their CNP stakes, the newspaper said. Natixis hopes to get between 800 million euros ($1.03 billion) and 1 billion euros for its insurance arm, Les Echos said.
To contact the reporter on this story: David Whitehouse in Paris at dwhitehouse1@bloomberg.net. Last Updated: November 10, 2008 01:16 EST
Monday, January 26, 2009
BoB Likely To Foray Into Life Insurance Biz In 6-7 Months
(RTTNews) - Bank of Baroda or BoB said its insurance venture with the UK-based Legal and General group is likely to start business in the next six-to-seven months, reported the PTI. The Chairman and Managing Director of BoB M D Mallaya reportedly said the bank is in the process of filing initial regulatory clearance application and would obtain all other necessary approvals by the first quarter of the next fiscal.
Mallaya said the three-way lift venture was formed in November 2007 with an initial paid-up capital of Rs.200 crore. BoB would hold 44% share in the venture, followed by Andhra Bank with 30% and the remaining stake is to be held by the foreign partner. The two banks have over four crore customers and together have a network of about 4,000 branches across the country.
The UK partner will recruit over 5,000 professionals in India in the next five years. Legal and General Group, having a market value of about GBP 8 billion, employs 8,000 people in the UK.
As of now, there are 21 players in the Indian life insurance sector.
For comments and feedback: contact editorial@rttnews.com
Mallaya said the three-way lift venture was formed in November 2007 with an initial paid-up capital of Rs.200 crore. BoB would hold 44% share in the venture, followed by Andhra Bank with 30% and the remaining stake is to be held by the foreign partner. The two banks have over four crore customers and together have a network of about 4,000 branches across the country.
The UK partner will recruit over 5,000 professionals in India in the next five years. Legal and General Group, having a market value of about GBP 8 billion, employs 8,000 people in the UK.
As of now, there are 21 players in the Indian life insurance sector.
For comments and feedback: contact editorial@rttnews.com
Coastal insurance crisis first up for Goodwin
Wayne Goodwin, North Carolina's new insurance commissioner, says he's got a lot of work to do, but first up will be addressing the coastal insurance crisis.
Goodwin, a Democrat and chief assistant in the commissioner's office, defeated Republican challenger John Odom.
Goodwin said he feels deadline pressure to address the insurance market on the state's coastal property. The government-created insurance plan -- the Beach Plan -- was intended as a safety net for coastal property owners, but it has become the dominant form of insurance. It has only a fraction of the money it would need to cover damage from a major hurricane.
"I've described it as a ticking time bomb, and it is," Goodwin said.
Goodwin says he wants to have a set of recommendations ready to address the plan in time for the next hurricane season.
GOP winner grateful
Republican Labor Commissioner Cherie Berry said voters had enough confidence in her to give her a third term despite a sweeping Democratic tide.
"I was very grateful that the citizens had confidence in what we were doing in the Labor Department and were gracious enough to allow me to serve a third term," Berry said.
Berry's win over Democratic challenger Mary Fant Donnan was by a slim margin. Berry said that was likely because of the large number of voters who voted straight Democrat.
"The message I tried to put out there is, I have the experience to do this job. Worker safety and health care have always been my top priority," Berry said.
Berry and Agriculture Commissioner Steve Troxler will be the only Republicans on the Council of State.
Berry said she's thankful Troxler is still on because she'll have enough support to have her ideas debated.
A powerful moment
Ray Warren was a young Republican lawyer from Matthews who was swept into a seat in the state House as part of the Reagan landslide of 1984.
Warren eventually became House minority leader and, in 1996, outpolled all North Carolina Republicans in his losing bid for a seat on the state Supreme Court. He announced he was gay in 1998 and left the Republican Party a year later.
Now, in the latest chapter of a long odyssey, he's a tax assessor's attorney in suburban Washington. Here are his observations about the election:
"Election night in Washington was surreal. My partner and I watched the returns at Nellie's, a nominally gay sports bar packed with a racially diverse gay and straight crowd. Each time a state fell into the blue column, the bar -- and bars up and down the U Street corridor -- erupted in cheers.
"There were hundreds in the bar, men and women of all races. When CNN announced that Obama was elected at 11 o'clock, pandemonium broke out. We jumped, shouted and hugged perfect strangers. It was like the end of World War II or some other great unifying event.
"A bit later, when Obama gave his speech in Chicago, I, like many others, was in tears. All the years of Jesse Helms, hate and division had been defeated. Not only the nation, but my home state and native state (Virginia and North Carolina) had been part of the redemption.
"It was an unexpected and powerful emotional moment that overwhelmed me. Seeing my tears, a young black woman silently reached over and took my arm as if to say, 'It will be OK.' I was struck by the immense irony of that act of simple kindness. On the most important night of the nation's history to African-Americans, a young black woman was comforting me, an old white Southern man, overcome with the emotion of the moment.
"As we left to catch a cab back to Virginia, the street was alive with impromptu celebrations. Horns honked, people danced in the street and there were shouts of joy. A friend texted me to say that he and hundreds were gathered in front of the White House shouting, 'Yes we can.' And for once, it was true. We can."
Dole not done yet
Elizabeth Dole is about to leave the U.S. Senate, but she says she's not done with public service.
Dole, the Salisbury Republican who lost her re-election bid Tuesday, told The Associated Press last week that she has not focused on her future yet. Dole said she has spent the week with family and friends, and working on new job leads for members of her staff.
But Dole, who once ran the American Red Cross, said she has no plans to retire from public service.
(Jim Morrill of The Charlotte Observer)
Goodwin, a Democrat and chief assistant in the commissioner's office, defeated Republican challenger John Odom.
Goodwin said he feels deadline pressure to address the insurance market on the state's coastal property. The government-created insurance plan -- the Beach Plan -- was intended as a safety net for coastal property owners, but it has become the dominant form of insurance. It has only a fraction of the money it would need to cover damage from a major hurricane.
"I've described it as a ticking time bomb, and it is," Goodwin said.
Goodwin says he wants to have a set of recommendations ready to address the plan in time for the next hurricane season.
GOP winner grateful
Republican Labor Commissioner Cherie Berry said voters had enough confidence in her to give her a third term despite a sweeping Democratic tide.
"I was very grateful that the citizens had confidence in what we were doing in the Labor Department and were gracious enough to allow me to serve a third term," Berry said.
Berry's win over Democratic challenger Mary Fant Donnan was by a slim margin. Berry said that was likely because of the large number of voters who voted straight Democrat.
"The message I tried to put out there is, I have the experience to do this job. Worker safety and health care have always been my top priority," Berry said.
Berry and Agriculture Commissioner Steve Troxler will be the only Republicans on the Council of State.
Berry said she's thankful Troxler is still on because she'll have enough support to have her ideas debated.
A powerful moment
Ray Warren was a young Republican lawyer from Matthews who was swept into a seat in the state House as part of the Reagan landslide of 1984.
Warren eventually became House minority leader and, in 1996, outpolled all North Carolina Republicans in his losing bid for a seat on the state Supreme Court. He announced he was gay in 1998 and left the Republican Party a year later.
Now, in the latest chapter of a long odyssey, he's a tax assessor's attorney in suburban Washington. Here are his observations about the election:
"Election night in Washington was surreal. My partner and I watched the returns at Nellie's, a nominally gay sports bar packed with a racially diverse gay and straight crowd. Each time a state fell into the blue column, the bar -- and bars up and down the U Street corridor -- erupted in cheers.
"There were hundreds in the bar, men and women of all races. When CNN announced that Obama was elected at 11 o'clock, pandemonium broke out. We jumped, shouted and hugged perfect strangers. It was like the end of World War II or some other great unifying event.
"A bit later, when Obama gave his speech in Chicago, I, like many others, was in tears. All the years of Jesse Helms, hate and division had been defeated. Not only the nation, but my home state and native state (Virginia and North Carolina) had been part of the redemption.
"It was an unexpected and powerful emotional moment that overwhelmed me. Seeing my tears, a young black woman silently reached over and took my arm as if to say, 'It will be OK.' I was struck by the immense irony of that act of simple kindness. On the most important night of the nation's history to African-Americans, a young black woman was comforting me, an old white Southern man, overcome with the emotion of the moment.
"As we left to catch a cab back to Virginia, the street was alive with impromptu celebrations. Horns honked, people danced in the street and there were shouts of joy. A friend texted me to say that he and hundreds were gathered in front of the White House shouting, 'Yes we can.' And for once, it was true. We can."
Dole not done yet
Elizabeth Dole is about to leave the U.S. Senate, but she says she's not done with public service.
Dole, the Salisbury Republican who lost her re-election bid Tuesday, told The Associated Press last week that she has not focused on her future yet. Dole said she has spent the week with family and friends, and working on new job leads for members of her staff.
But Dole, who once ran the American Red Cross, said she has no plans to retire from public service.
(Jim Morrill of The Charlotte Observer)
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