All articles by LII editorial
LII editorial
Complacency takes a heavy toll
Financial markets are in turmoil sparked by the collapse of a housing boom in the US built largely on the shaky foundation of subprime mortgage lending A wealth of evidence indicates that more robust risk management would have spared many financial institutions from the pain they are now enduring. Addressing the European Parliament on the financial crisis sparked by the US subprime mortgage fiasco, commissioner for internal market and services Charlie McCreevy emphasised: In the light of events over the past year it has been incredible to see how little understanding senior managers of financial institutions had of the risk they were taking on board.
Automating mortality management
Life insurers are starting to consider using mortality management technology systems as a strategy to improve profitability, reveals a study unveiled at industry body ACORD LOMAs Insurance Systems Forum held in Las Vegas in May The study was conducted by Transamerica Reinsurance, a US-based unit of Netherlands insurer AEGON, and MajescoMastek, a US-based unit of Mastek, an Indian IT company focused on the development of insurance industry software and technology solutions development. While insurers historically have not invested in technology tools and processes to manage mortality expenses, that could be changing as insurers recognise the potential to increase profits and reduce costs, said Harold Apple, senior vice president of VectorMastek, a unit of MajescoMastek.
Allianz shakes up Australian life insurance market
Allianz shakes up Australian life insurance market In a move it described as shaking up the Australian life insurance markets status quo, European insurer Allianzs Australian unit has slashed the cost of cover and greatly simplified the application process
IDBI Fortis launches in India
Almost two years in the making, Indias newest life insurer IDBI Fortis Life Insurance (IDBI Fortis) has commenced business operations Formation of IDBI Fortis dates back to July 2006 when negotiations commenced between Belgo-Netherlands bancassurer Fortis, public sector bank the Industrial Development Bank of India (IDBI) and Indian private sector bank Federal Bank Regulatory approval for the formation of IDBI Fortis, Indias 12th private sector life insurer, was received in December 2007.
New product combines life and health insurance
New product combines life and health insurance Life Investors Insurance Company of America (Life Investors), a unit of Netherlands insurer AEGON, and US insurer Madison National Life Insurance have joined forces to launch a product that combines all the key features of health, life and disability insurance
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Transamerica talks up Europe
Transamerica talks up Europe Transamerica Reinsurance, the second-largest life reinsurer in the US in terms of new business assumed in 2006 and a significant player in Latin America and Asia, has set its sights on replicating its success in the European market, which it entered in late 2006 This has been an important year of building our European base, introducing companies to our value-added business model and developing relationships, said Christian Mounis, president of the reinsurers European unit, Transamerica Reinsurance Europe (TRE).
Green light for auto-enrolment
In a significant move that will benefit UK insurers the European Commission (EC), the executive branch of the European Union (EU), has approved the British governments plan to permit automatic enrolment of workers into insurance-based workplace personal pension (WPP) as part of pension reforms due for implementation in 2012 The ECs approval followed an approach from the UKs Department for Work and Pensions in which it requested clarity on whether the automatic enrolment into a contract-based WPP scheme was compatible with the EUs Distance Marketing Directive and the Unfair Commercial Practices Directive.
Managing costs pays off in the US
Managing costs pays off in the US US companies managing health insurance programmes actively and effectively are scoring handsomely, reports professional service company Towers Perrin For the first time in over a decade we are seeing a number of companies keeping cost growth near the consumer price index for medical services, which currently stands at about 4 percent, said Dave Guilmette, MD of Towers Perrins health and welfare practice.
US regulatory revolution looms
While the debate on the proposed optional federal charter (OFC) for the US insurance industry rages on, federal involvement in the industry is set to take a significant step forward with congressman Paul Kanjorskis introduction in April of the Insurance Information Act of 2008 (IIA) The IIA would create a federal Office of Insurance Information that would represent the US internationally on insurance issues and coordinate with state insurance regulators on national concerns.
Health insurance takes the lead in Saudi Arabia
Health insurance takes the lead in Saudi Arabia Saudi Arabias insurance industry put on a strong showing in 2006, lifting total premium income 35 percent compared with 2005 to SAR6.9 billion ($1.84 billion), according to the Saudi Arabian Monetary Agencys (SAMA) annual survey report published in August