All articles by Charles Davis
Charles Davis
Conservatism is paying off
Thanks to prudent risk management Canadas life insurance industry is faring far better than its US counterpart in the face of financial market turmoil With the added benefit of a strong currency this places Canadas insurers in a sound position to pursue global ambitions
Nationwide Insurance reaches out to African American consumers
Widely recognised as an innovator when it comes to reaching underserved ethnic markets, US composite insurer Nationwide Insurance is set to take its advertising to a new level. The insurer recently announced that Carol H Williams Advertising (CHWA) a national agency focusing on ethnic advertising is now its African American agency of record The agency will help Nationwide enhance its reach to African American consumers with print, broadcast and on-line advertising campaigns, and provide insight on how Nationwide's life, property and car insurance services can better serve the African American community.
Taking advantage of change
Insurers must face the reality that customer loyalty is on the decline, highlights a study by Capgemini But while some insurers may see this as a threat, the changing environment also presents growth opportunities to those that adopt an analytical approach to customer behaviour, reports Charles Davis Major shifts in world insurance markets could present huge growth opportunities for insurers willing to change with the times, emphasises consultancy Capgemini in its World Insurance Report 2008, an international study of more than 11,000 insurance customers and industry executives.
Small insurers survive and thrive
Big US life insurers have taken full advantage of their size and the economies of scale it brings to aggressively increase their market shares Despite this, many smaller life insurers have stood their ground and proved themselves capable of challenging their giant rivals Charles Davis reports Size may not be all its cracked up to be in the life insurance business after all, according to a new study by consultancy Conning Research and Consulting
The workplace market beckons
Economic uncertainty is driving increasing demand from US employees for enhanced benefits from their employers
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US advisers shun variable annuities
Owners of variable annuities (VA) in the US have endured twofold issues of late: their investment-account balances have taken a hit, as have the financial-strength ratings on the insurers that issued their annuities That may explain why advisers are more reluctant than ever to recommend annuities to their clients, according to a study conducted by Spectrem Group for Ameritas Advisor Services, a unit of insurer Ameritas Life. Spectrem found that even before the equity market meltdown, 70 percent of advisers were concerned about locking their clients into annuities and would prefer other long-term retirement products.
Long-term care riders gain momentum
A long-term care (LTC) rider married to an annuity product can help overcome middle-class fears of full-blown LTC policy costs, resulting in a product that appeals to a broader sector of the market than ever before.
Prudential’s online term life drive
Better known for its focus on the affluent market, Prudential Financial has teamed up with banks to harness the online channel to reach the mass market with a simple term life product, MyTerm
The fall of the mighty AIG
Though AIG is the most spectacular casualty among US insurers, the travails of many of its peers leave little doubt that the industry is in need of a review of its risk management capabilities and regulatory structure. Would that it were, for behind the AIG saga lies many of the nettlesome issues that plague the financial services industry at large namely the murkiness of risk and the reciprocal trust that fuels credit markets, a trust that has dissolved along with the markets The AIG bailout is a stark reminder that the US insurance industry has no structure of self-regulation
Efficiency holds the key to success
In the intensely competitive US life insurance market, cost containment has become vital Despite this, two studies conducted by Deloitte have revealed that many insurers are falling short of efficiency levels that can be attained by harnessing technology more effectively Charles Davis reports Despite the focus on internal cost reduction in the US life sectors, benchmarking studies from professional services firm Deloitte identified much more to be done, particularly in the areas of operations and IT