All articles by Charles Davis
Charles Davis
Subprime takes a heavy toll
First-quarter 2008 results for US life insurers told the tale of the battered economy, with dour executive after executive blaming the investment losses tied to the volatility in the credit and equity markets triggered by the subprime mortgage crisis American International Group (AIG), Nationwide Financial, MetLife, Prudential Financial, Hartford Financial and Lincoln National all were among the marquee names reporting lower profits, citing a veritable witches brew of adverse economic conditions that have come together to drag down earnings in what only last year was a high-flying financial sector.
Insurers turn to STP to curb costs
Though straight through processing has long played a vital role in many financial service sectors, life insurers have been slow to harness its significant cost cutting benefits This is now changing as technology vendors hone in on the processing needs of the life insurers
US bancassurance divide closing
A new look at the interaction between US banks and life insurers has found that stronger marketing relationships have developed over the past five years However, there are some lingering barriers that must be breached to maximise bank distribution of life insurance products
Wells Fargo furthers insurance goals
Pursuing an ambitious growth strategy in the insurance market, US bank Wells Fargo has announced an acquisition which will provide it with an entry into premium financing This adds to an existing line up that includes life insurance, general insurance and health insurance
US insurers caught in subprime mortgage industry crossfire
US insurers caught in subprime mortgage industry crossfire As the US financial industry begins to assess the damage wrought by the subprime retail mortgage industrys endless unravelling, insurers can hope that a relative lack of exposure buoys confidence in a jittery market.
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Retirement product has big flaws
Simplicity and a seemingly logical approach to long-term investment have enabled target-dated funds to become a major contender for US retirement savings However, a study reveals that target-dated funds inability to offer income guarantees is a potential threat to retirement income
US life insurers plot a new strategy to counter pressure from the life settlements industry
US life insurers plot a new strategy to counter pressure from the life settlements industry The rampant growth of the US life settlements market has US insurers mulling a response in the form of policy loans on life insurance contracts.
Private retirement plans falling short
The majority of younger Americans will reach the end of their working careers ill-prepared for retirement, a study undertaken by the US governments General Accounting Office has revealed The solution may, however, come as an even bigger blow to the private retirement planning industry
US mutuals take the marketing gap
Amid US financial market turmoil US mutual life insurers have stood out as pillars of security, an attribute New York Life and Massachusetts Mutual are exploiting to the full in hard-hitting marketing campaigns Even as AIGs spectacular collapse began to grab headlines, executives at New York Life knew that they had an opportunity to calm the waters and distinguish the well-performing insurer from the contagion on Wall Street.
Facing a life expectancy time bomb
Facing a life expectancy time bomb The thriving US life settlements market is attracting a growing number of investors eager to cash in on what they perceive to be easy profits However, a life settlements expert has cautioned that even minor miscalculations of life expectancy could prove financially disastrous