All articles by LII editorial
LII editorial
New life insurance distributor Futurity First is established
Even in the most competitive of markets, there is always room for an innovative new player This is the philosophy behind Futurity First, a new US life insurance distribution company to be headquartered in Hartford, Connecticut According to Futurity First, it plans to distinguish itself by focusing on the middle-income and small business markets and by providing its customers with the same level of product quality, advice, professionalism and service that the high net worth market has enjoyed for years
Comparing apples and pears
No European insurer escaped the ravages of declines in equity and bond values during the first half of 2008, but notable was a significant variation in net profit declines with a number of UK insurers such as Aviva and Prudential reporting losses while many Continental insurers net profits remained positive. However, accounting classification of assets and the accounting treatment with regard to impairment of securities under International Financial Reporting Standards (IFRS) rules must be taken into account when making comparisons, stressed rating agency Moodys Moodys explained that assets classified as available for sale (AFS) would see changes in valuation taken through shareholders equity while those classified as trading assets see changes in fair value recorded directly through the profit and loss account (P&L).
Conseco takes a pummelling
Troubled US composite insurer Conseco has reached a multi-million dollar settlement with 40 US states following an investigation of its long-term care insurance business co-ordinated by regulatory body the National Association of Insurance Commissioners and led by the Pennsylvania Insurance Department (PID) The investigation revealed what the PID termed a pattern of consumer harm relating to poor claims handling According to the terms of the settlement Conseco will pay a $2.3 million penalty to participating states, at least $4 million in restitution costs to harmed policyholders and invest $26 million in system upgrades and improved claims administration
Male life expectancy in the UK is grossly underestimated
Male life expectancy in the UK is grossly underestimated A new model for forecasting UK mortality rates, formulated by a group of academics headed by David Blake, director of the Pensions Institute at Cass Business School, has revealed that British men could live significantly longer than currently predicted According to the model, which is based on an analysis of mortality data for 65-year-old males, males reaching 65 in 2050 would on average live for another 26 years, six years more than currently predicted (on the basis of Office for National Statistics data), with to 90 percent statistical confidence an upper bound of likely life expectancy of 32 years, which is 12 years more than at present
Ending indexed annuity confusion
Since their introduction by the US life insurance industry in the mid-1990s, indexed annuities have been the subject of a regulatory conundrum: should they be treated as an insurance product or as a security?
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SNS Reaal bulks up in the Netherlands’ pensions market
SNS Reaal bulks up in the Netherlands pensions market The Netherlands bancassurer SNS Reaal ended 2006 with a 6 percent share of the Dutch life insurance market Announced in November, the latest acquisition will see SNS Reaal pay between 1.45 billion ($2.15 billion) and 1.54 billion for Swiss Lifes Netherlands unit, Zwitserleven Netherlands, and Belgian unit, Swiss Life Belgium (SLB)
Ohio legislators target STOLI
The US state of Ohios House of Representatives has unanimously passed a bill, HB 404, that if approved by the Ohio Senate will deal a body blow to stranger-originated life insurance (STOLI) in the state The essence of HB 404 is to protect consumers, usually wealthy senior citizens, from speculators who offer them a cash payment and agree to pay the premiums in exchange for receipt of the death benefits after the insured die. The key feature of HB 404 is that it would deter STOLI by establishing a strictly limited five-year moratorium on the sale of life insurance policies that have the characteristics of STOLI
UK pilots generic advice project
UK pilots generic advice project A pilot project that will assess the feasibility of providing generic financial advice (GFA) across three channels the telephone, the internet and face-to-face has been launched in the UK
ERGO boosts Indian presence
The lure of Indias rapidly growing life insurance industry has attracted another foreign entrant, ERGO Insurance Group, the 91.7 percent owned primary insurance unit of German reinsurer Munich Re A joint venture (JV) with Indian conglomerate Hero Group, ERGO will have a 26 percent stake in the company to be named HERO ERGO Life Insurance (HELI) A fairly lengthy process of complying with the requirements of Indias Insurance Regulatory and Development Authority (IRDA) lies ahead and the new insurer is anticipated to begin operations in the second quarter of 2009
US fixed annuity sales rocket ahead
US fixed annuity sales rocket ahead Fixed annuity sales continued to surge in the third quarter of 2008, driven by favourable factors annuity market analyst Jeremy Alexander believes are still firmly in place The fixed annuity-sales boom is also notable for the rapid growth of the bank sales channel and increased market share of foreign insurers.