Business Insurance back issues from May 2005:
NAIC establishes repository for producers' digital fingerprints.(Industry News)(National Assn. of Insurance Commissioners)(Brief Article)
May 01, 2005 ... KANSAS CITY, Mo.-The National Assn. of Insurance Commissioners earlier this month launched a repository for licensed insurance producers' digital fingerprints. Five states are participating in the pilot project-Alaska, California, Idaho, New York and Pennsylvania. Each of those ...
Unjust desserts in these digital times.(First Word)(finger found in a frozen custard chocolate product)
May 01, 2005; ... Byline: Rodd Zolkos "You want a toe? I can get you a toe, believe me.'' Those of you familiar with the Coen Brothers classic motion picture "The Big Lebowski'' will probably recognize the line. For those who aren't, it was spoken by John Goodman's brilliantly ...
Data sharing takes hold in health care.(Cover Focus: Information Technology)
May 01, 2005; ... Byline: Roseanne White Geisel Health plans say their efforts to evaluate the performance of individual physicians will receive a tremendous boost from a national broad-based initiative to standardize quality measures and the methodology for analyzing them. That ...
Briefs.(Industry News)(Brief Article)
May 01, 2005 ... Ronald J. Rintala has been appointed global operations officer for the ACE Group of Cos., responsible for a range of operational areas, including workflow management and general business efficiencies across the organization. He will report directly to Evan G. Greenberg, president and chief ...
Cisco unveils network systems for insurance.(Industry News)(Brief Article)
May 01, 2005 ... SAN JOSE, Calif.-Cisco Systems Inc. has unveiled a package of converged communications network systems aimed specifically at the needs of the insurance industry. The Transforming Insurance Solutions package, based on Cisco's voice communications, wireless and security ...
All Systems Go; Automating claims processing systems can speed up processing and boost the bottom line.(Cover Focus: Information Technology)
May 01, 2005; ... Byline: Rupal Parekh For insurance companies looking to distinguish themselves within the sea of firms in the industry, modernizing claims operations is a wise place to start. Using the latest in information technology to drive claims automation, organizations can do ...
XL Capital launches LossLink, database of financial losses.(Industry News)(Brief Article)
May 01, 2005 ... HAMILTON, Bermuda-XL Capital Ltd. has launched a searchable database of financial losses experienced by industries around the world. Developed by XL's insurance operations, LossLink contains more than 2,000 entries profiling significant losses among various industries in more ...
Chief reinsurance officer, a post whose time has come.(Perspective)
May 01, 2005; ... Byline: Paul Walther In the parlance of the insurance-buying community, it may not be too uncommon to hear the term "chief risk officer,'' or "CRO,'' being applied to the executive charged with the evaluation and management of a company's loss or liability exposures. ...
Capella University to accept course credit from CPCU.(Industry News)(Brief Article)
May 01, 2005 ... MALVERN, Pa.-The American Institute for CPCU and Capella University have signed an agreement under which Capella will accept credit for completion of courses and examinations in the AICPCU's Chartered Property Casualty Underwriter program. Under the agreement, credits earned in ...
Mergers & acquisitions on the rise.(Industry News)(in insurance industry)(Brief Article)
May 01, 2005 ... The number of mergers and acquisitions in the insurance industry increased in 2004, rising for the first time over the prior year's total since 2001, according to a study by Conning Research and Consulting Inc. The number of 2004 mergers was driven by activity in the health and ...
CFOs voice support for disclosure standards.(Industry News)(The Group of North American Insurance Enterprises)(Brief Article)
May 01, 2005 ... NEW YORK-A group of U.S. life and property/casualty insurance and reinsurance companies has endorsed efforts by the International Assn. of Insurance Supervisors to develop disclosure standards, including standards related to companies' investment performance and risk assessment. ...
Seven given top ranking for diversity.(Industry News)(Brief Article)
May 01, 2005 ... Seven insurance industry firms this year made their way onto the Top 50 Companies for Diversity 2005 list, which is compiled annually by DiversityInc magazine. They are: Northbrook, Ill.-based Allstate Insurance Co.; Chicago-based Health Care Service Corp.; New York-based New ...
Big I recognizes Rep. Baker as its legislator of the year.(Industry News)(Richard Baker)(Brief Article)
May 01, 2005 ... WASHINGTON-The Independent Insurance Agents & Brokers of America has presented Rep. Richard Baker, R-La., with the organization's Gerald Solomon-IIABA Legislator of the Year Award for 2004. The presentation was made last month, during the 29th annual Big I National Legislative ...
Softening market offers real opportunities.(Last Word)
May 01, 2005; ... Byline: John W. Wicher It's all about margins. Both brokerage and insurer investor calls have been in high season recently. For those of us in the merger and acquisition business, this is a great opportunity to hear the views of executive management about their ...
Lloyd's not cavalier about support for equine research.(Industry News)(Brief Article)
May 01, 2005 ... LEXINGTON, Ky.-Lloyd's of London is celebrating 20 years of supporting the Department of Veterinary Science at the University of Kentucky, a period during which Lloyd's brokers and their Kentucky agents have given more than $640,000 to subsidize the department's research and science. ...
How strong are insurers as the cycle turns? Leaders stress underwriting discipline as cash flows fall.(Feature)
May 01, 2005; ... Byline: Rodd Zolkos Less than two years after many in the insurance industry predicted there would be widespread adherence to underwriting discipline and insurers would refuse to succumb to pressures to engage in market share underwriting any time soon, a market turn is ...
The Quote.(Industry News)
May 01, 2005 ... `If I was a decision maker making a decision between build proprietary vs. buy off the shelf, there has to be some project-stopping reason to ...
Business needs must drive IT.(Cover Focus: Information Technology)
May 01, 2005; ... Byline: Rodd Zolkos Information technology investments can provide a competitive advantage for insurers and reinsurers, but to truly succeed, those investments must be driven by the company's broader business strategy. Many companies in the industry have a long way ...
Claims concerns requiring CRO oversight.(Perspective)(chief risk officer)(Brief Article)
May 01, 2005 ... * Procedures for the timely submission and recovery of losses; * The accurate documentation and historical records for all contracts and reinsurers; * The current database of intermediary and reinsurer contacts, past and present; * Follow-up communications ...
Monteleone moves from The Hartford to law firm.(Perspective)(Joseph P. Monteleone)(Brief Article)
May 01, 2005 ... Byline: Mr. Monteleone NEW YORK-A well-established figure in insurance industry legal circles is hoping his move from insurer to law firm will permit him to continue to focus on the favorite aspects of his former role while allowing him to once again become closely involved with ...
Check out insurers' financial red flags.(Spotlight: RIMS 2005 Conference Review)
May 02, 2005; ... Byline: RODD ZOLKOS PHILADELPHIA-With an insurance policy only as good as the insurer's ability and willingness to pay when a claim is made, evaluating insurers' financial stability is a critical element of any insurance purchase. But the analysis of regulators and ...
Train crash in Japan claims at least 100.( )(The Tokio Marine & Nichido Fire Insurance Co. Ltd)(Brief Article)
May 02, 2005; ... Byline: Sarah Veysey and Michael Bradford AMAGASAKI, Japan-Liability insurance coverage to respond to the fatal derailment of a Japanese commuter train was written in the Japanese market, sources said. Authorities are still trying to determine why the West Japan ...
Plaintiff's mindset key to winning coverage disputes.(Spotlight: RIMS 2005 Conference Review)
May 02, 2005; ... Byline: MARK A. HOFMANN PHILADELPHIA-Risk managers need to change from a defendant's mindset to a plaintiff's mindset when they are involved in coverage disputes, policyholder attorneys say. While large corporations often have more courtroom experience as the target ...
Fiduciary risks can be tackled despite uncertainty.(Spotlight: RIMS 2005 Conference Review)
May 02, 2005; ... Byline: DAVE LENCKUS PHILADELPHIA-Risk managers can act now to mitigate their board directors' fiduciary liability exposures related to employee savings plans despite the uncertainty surrounding the issue, a panel of experts said. Although courts and lawmakers have ...
Broadened oversight must still respect rights.(Editorial)(Editorial)
May 02, 2005 ... WE SUPPORT EFFORTS to strengthen regulatory oversight, but states should analyze them carefully to avoid knee-jerk reactions that could cause more problems than they solve. A preliminary proposal by New York Acting Superintendent of Insurance Howard Mills to seek broader ...
United deal is making the best of a tragedy.(United Airlines enters into deal with Pension Benefit Guaranty Corp)(Editorial)
May 02, 2005 ... READING THROUGH a proposed agreement between United Airlines and the Pension Benefit Guaranty Corp. in which the PBGC would take over United's massively underfunded pension plans and then receive United securities potentially worth $1.5 billion, we are convinced the settlement is a ...
Accident-year loss ratios for 2004 decline in California; State to probe whether insurers pass along savings.(Workers' Compensation Insurance Rating Bureau of California)
May 02, 2005; ... Byline: ROBERTO CENICEROS SAN FRANCISCO-Insurer loss ratios in California dropped to 45%, on average, for accident year 2004, according to a projection released last week by the Workers' Compensation Insurance Rating Bureau of California. Loss ratios have fallen ...
World Updates; Munich Re, Converium receive subpoenas.(Reinsurers Munich Reinsurance Co)(Converium Holding Ltd)
May 02, 2005 ... Reinsurers Munich Reinsurance Co. and Converium Holding Ltd. said last week they had received subpoenas from New York Attorney General Eliot Spitzer and the U.S. Securities & Exchange Commission about their reinsurance contracts with New York-based bond insurer MBIA Inc. Munich, ...
Future scenarios key to consider for smart buys; Panelists review tips for evaluating insurers in a shifting environment.(Spotlight: RIMS 2005 Conference Review)(Panel Discussion)
May 02, 2005; ... Byline: MARK A. HOFMANN PHILADELPHIA-A changing marketplace means that buying insurance isn't always the biggest part of a risk manager's job. In fact, "the smallest part of our job in my company is buying insurance,'' said Amy E. Wagner, vp-risk management for ...
Spencer gets funds to establish scholarship honoring 9/11 victim.(News)
May 02, 2005; ... Byline: REGIS COCCIA PHILADELPHIA-The Spencer Educational Foundation Inc. raised nearly $200,000 during the Risk & Insurance Management Society Inc. Annual Conference & Exhibition, the foundation's outgoing chairman said. Also announced during RIMS was a donation of ...
Contingent losses require careful management; Supplier losses can lead to thorny business interruption claim disputes.(Spotlight: RIMS 2005 Conference Review)
May 02, 2005; ... Byline: GLORIA GONZALEZ PHILADELPHIA-Risk managers need to pay careful attention to their contingent business interruption practices and policies to ensure they have adequate coverage when they need it the most. Contingent business interruption insurance is triggered ...
Latin American risk management expands.(Spotlight: RIMS 2005 Conference Review)
May 02, 2005; ... Byline: GLORIA GONZALEZ PHILADELPHIA-When Monterrey, Mexico-based Grupo IMSA began expanding its operations into the United States and other countries, its officials came face to face with one of the key risk management challenges for companies based in Latin America. ...
Pension proposal does little to promote defined benefit plans.(Perspectives)
May 02, 2005; ... Byline: William J. Miner Q: What impact will the Bush administration's proposed pension funding reform have on my company's defined benefit pension programs? A: The new year in Washington began with a buzz surrounding defined benefit pension funding reform. ...
AOL outlines successes of ergonomic strategy.(Spotlight: RIMS 2005 Conference Review)
May 02, 2005; ... Byline: SARAH VEYSEY PHILADELPHIA-Ensuring that employees are aware of ergonomic issues and encouraging them to address those issue are key ingredients in a successful ergonomics policy, said Nancy Perkins, senior manager, risk strategies at America Online Inc. By ...
Insured catastrophe losses rose during first quarter, PCS says.(Property Claim Services reports)(Brief Article)
May 02, 2005; ... Byline: JUDY GREENWALD NEW YORK-U.S. property/casualty insurers are expected to pay businesses and homeowners about $2.14 billion for insured property loss claims from eight catastrophes in the first quarter, compared with $1.04 billion for the comparable period a year ago, ...
London market must unite to offer contract certainty; Market execs offer plan for clarity.(Market Reform Group offers plan for regulatory compliance)
May 02, 2005; ... Byline: SARAH VEYSEY LONDON-London market underwriters, brokers and insurance buyers must work together to meet a 2006 deadline to achieve contract certainty, market executives say. Last week, the joint Market Reform Group, comprising Lloyd's of London and the London ...
Willis reserves $20 million more for settlements, cuts 500 jobs.(Willis Group Holdings Ltd.)(Brief Article)
May 02, 2005; ... Byline: SARAH VEYSEY LONDON-Willis Group Holdings Ltd., which earlier this month paid $51 million to end probes into its business practices, said last week that it has cut 500 jobs and has set aside $20 million to resolve further potential legal claims. The ...
States question AIG's accounting of comp premiums; Some risks booked as GL business.(News)
May 02, 2005; ... Byline: ROBERTO CENICEROS NEW YORK-Probes into American International Group Inc. widened last week as insurance commissioners in several states said that they would look in to whether the insurer illegally booked workers compensation premiums as general liability business. ...
Asbestos bill bogs down in markup efforts; After a contentious hearing and a slow start, work to resume May 12.( )
May 02, 2005; ... Byline: MARK A. HOFMANN WASHINGTON-Following an unsuccessful markup bid last week, the Senate Judiciary Committee will wait until next week to resume consideration of a bill that would create a $140 billion no-fault trust fund to replace the litigation-based system for ...
D&O insurers to pay Saftey-Kleen fraud suit settlement costs; Judge imposes award on execs.(News)
May 02, 2005; ... Byline: DAVE LENCKUS COLUMBIA, S.C.-Directors and officers liability insurance will cover a $36 million settlement in the securities fraud litigation against bankrupt hazardous waste operator Safety-Kleen Corp. However, insurers will not be on the hook for the $200 ...
Gallagher resolves lawsuit with alternative energy firm.(Arthur J. Gallagher & Co)
May 02, 2005; ... Byline: Sally Roberts ITASCA, Ill.-Reflected in the first-quarter 2005 results it reported last week is Arthur J. Gallagher & Co.'s resolution of one other legal matter in addition to its setting up of a $35 million reserve for potential settlements with various state attorneys ...
Drug chain trying another dose of PBM business to compete.(Rite Aid Corp business strategy)
May 02, 2005; ... Byline: JOANNE WOJCIK CAMP HILL, Pa.-By re-entering the prescription benefit management business to retaliate against mandatory mail order, Rite Aid Corp. could stimulate competition in the PBM market and offer employers a viable alternative, industry experts say. ...
Lloyd's members revive court battle; Names say market leaders were guilty of "misfeance in public office".(Lloyd's of London faces misfeance charge)
May 02, 2005; ... Byline: CAROLYN ALDRED LONDON-Judgment will be handed down soon in the latest chapter of a long-running legal dispute between Lloyd's of London and individual investors. A group of 84 such investors-known as "names''-applied to London's High Court last month to ...
Gallagher earmarks $35 million; In absence of charges, brokerage sets aside funds to settle state probes.(Arthur J. Gallagher & Co)
May 02, 2005; ... Byline: SALLY ROBERTS ITASCA, Ill.-Arthur J. Gallagher & Co.'s announcement last week that it has set aside $35 million to settle investigations related to its use of contingent commissions could be the last significant hit announced by a brokerage on the issue, some observers ...
Canadian pensionsAE funding levels reach record low levels.( )(Brief Article)
May 02, 2005; ... Byline: GLORIA GONZALEZ TORONTO-The financial health of Canadian pension plans continues to deteriorate, reaching its lowest level in the first quarter of 2005, according to a pension index released by Mercer Human Resource Consulting. The index shows the ratio of ...
MG Rover pension plans seek protection; Two defined benefit plans would be among the first to apply to U.K. fund.(Independent Trustee Services Ltd)
May 02, 2005; ... Byline: SARAH VEYSEY LONDON-The trustee of two defined benefit pension plans of failed auto manufacturer MG Rover Group Ltd. said it will seek to enter the plans into the U.K.'s newly formed Pension Protection Fund. Independent Trustee Services Ltd., a unit of ...
Errors & omissions.(News)(Correction Notice)
May 02, 2005 ... Due to a production error, a chart illustrating commercial insurance rate decreases that appeared in the April ...
Hines Symposium to address industry's steps to rebuild trust.( )
May 02, 2005 ... CHICAGO-In the aftermath of insurance industry investigations and settlements, many insurance buyers have questions about the practices of brokers and insurers. Those issues will form the basis of the 2005 Harold H. Hines Jr. Memorial Symposium in Chicago. This year's symposium, ...
UnitedHealth to track drug side effects.( )
May 02, 2005; ... Byline: Joanne Wojcik MINNETONKA, Minn.-In an effort to help improve patient safety, UnitedHealth Group is creating a prescription drug registry, using claims data from its more than 10 million members, to expedite the discovery of harmful side effects that may not be detected ...
California broker disclosure bill defeated; Stringent measure pushed by insurance department fails in committee vote.(News)
May 02, 2005; ... Byline: JUDY GREENWALD SACRAMENTO, Calif.-A California bill that would have gone further than proposed legislation in other states in regulating agents and brokers failed to get out of legislative committee last week. The proposal's defeat "suggests what we've seen ...
Late News; Bill would remove Roth 401(k) option.(Insurance industry news)
May 02, 2005 ... A portion of a federal law that allows employers to offer a new type of tax-favored 401(k) plan would be repealed under pension legislation introduced in the House of Representatives. The measure, offered by Reps. Ben Cardin, D-Md., and Rob Portman, R-Ohio, would eliminate Roth 401(k) ...
China poses unique opportunities, risks.(Spotlight: RIMS 2005 Conference Review)
May 02, 2005; ... Byline: Rupal Parekh PHILADELPHIA-While China can be a land of opportunity for companies looking to expand operations, certain unique risks can potentially plague a firm that decides to establish operations there. Though the country offers growing companies a number ...
Cat coverage alternatives flooding the market; Buyers advised to analyze exposures to obtain best risk transfer deals.(Spotlight: RIMS 2005 Conference Review)
May 02, 2005; ... Byline: MICHAEL BRADFORD PHILADELPHIA-Property owners looking for alternatives for covering their catastrophe exposures have to do some legwork to determine the appropriate way to cover those risks. Insurance buyers can shop a diverse market of products that includes ...
Spitzer's tactics on unethical acts questionable.(Taking Stock)
May 02, 2005; ... Byline: Myron M. Picoult If Rip Van Winkle, an aficionado of the property/casualty insurance industry who fell asleep about two years ago, were to suddenly awaken, I suspect he would exclaim, "What the hell happened?'' I have been unflagging in my belief that the ...
Topics target international risk managers.(Spotlight: RIMS 2005 Conference Review)
May 02, 2005; ... Byline: Gloria Gonzalez PHILADELPHIA-In an effort to reach out to its international membership, the Risk & Insurance Management Society Inc. held several sessions designed specifically for risk managers from Latin America, Japan, China and Africa during its annual conference, ...
Buyers want better cover for directors; Settlements spur search for personal asset protection.(Spotlight: RIMS 2005 Conference Review)
May 02, 2005; ... Byline: DAVE LENCKUS PHILADELPHIA-Securities class action lawsuit settlements in which Enron Corp. and WorldCom Inc. officials agreed to contribute a portion of their personal assets have triggered a search for better protection for board members across corporate America. ...
Between the Lines; Chairman of the board game.(Berkshire Hathaway Inc annual meets)
May 02, 2005; ... Byline: Compiled by Joanne Wojcik When you play the new Berkshire Hathaway Diamond Edition Monopoly Game, you'd expect payday to be a little more lucrative, given the fact that the company's stock trades at more than $80,000 a share. But USAopoly, which licenses ...
Comings & Goings.(News)(Appointments)
May 02, 2005 ... Brokers: West Point, Ga.-based J. Smith Lanier & Co. has named D. Gaines Lanier chairman. Mr. Lanier will continue as chief executive officer. Gary Ivey, who has been chief operating officer of Lanier since 2000, also will serve as president. Steve Hearn ...
Lloyd's sees interest in standalone terror coverage.(Risk & Insurance Management Society Inc.'s conference focusses on TRIA)
May 02, 2005; ... Byline: SARAH VEYSEY PHILADELPHIA-The uncertainty about whether the Terrorism Risk Insurance Act will be renewed at the end of the year is prompting interest in standalone terrorism cover, according to a panel of Lloyd's of London underwriters. The group of ...
Errors & omissions.(News)(Correction Notice)
May 02, 2005 ... A chart in the April 25 issue omitted information identifying commercial ...
Florida passes law to bolster regulatory interventions.(Consumer protection in the making)(Brief Article)
May 02, 2005; ... Byline: Meg Fletcher TALLAHASSEE, Fla.-Florida legislators are sending the governor a measure that will strengthen the state insurance regulator's authority to crack down on unauthorized insurance businesses. Previously, the Office of Insurance Regulation could issue ...
Broker survey reveals drop in property/casualty rates.(Survey reports)(Brief Article)
May 02, 2005; ... Byline: MARK A. HOFMANN ***** Correction: Due to a production error, a chart illustrating commercial insurance rate decreases that appeared in the April 25 edition of Business Insurance contained incomplete information. The corrected graph can be seen on page 34 of ...
United, PBGC reach deal on takeover of pension plans.(Pension Benefit Guaranty Corp)(United Airlines)
May 02, 2005; ... Byline: JERRY GEISEL WASHINGTON-A proposed agreement between United Airlines and the Pension Benefit Guaranty Corp. to allow United to shed all four of its massively underfunded plans is in the best interest of the airline and the federal pension insurance agency, benefit ...
Risk managers must speak out.(Risk & Insurance Management Society conference analyses investigation effefcts)
May 02, 2005; ... Byline: Paul Winston During the annual Risk & Insurance Management Society conference last month in Philadelphia, it was apparent there still is a fair amount of uncertainty over what changes will result from investigations into the insurance industry. Buyers may be ...
Canadian pensions' funding levels reach record low levels.( )(Brief Article)
May 02, 2005; ... Byline: GLORIA GONZALEZ TORONTO-The financial health of Canadian pension plans continues to deteriorate, reaching its lowest level in the first quarter of 2005, according to a pension index released by Mercer Human Resource Consulting. The index shows the ratio of ...