All articles by LII editorial
LII editorial
Opportunities squandered in UK pension market
Opportunities squandered in UK pension market Despite increasing slightly over the past few years, contributions to defined contribution (DC) pension schemes in the UK still fall short of supporting decent pensions for the majority of people, warns Tony Pugh, UK head of defined contribution pension services at human resources consultancy Mercer
Insurers plan to implement Solvency II on the cheap
Most large European insurers are not planning on splurging vast sums on implementing the European Unions Solvency II regulatory requirements governing capital adequacy for the insurance industry, reveals a study by management consulting and technology services company Accenture Accenture found that during the period before Solvency II comes into force in 2012, one-quarter of insurers surveyed expect to spend more than 25 million ($37 million) on attaining compliance, one-third between 5 million and 25 million and the remainder, about 40 percent, less than 5 million.
US insurers become big online advertising spenders
US insurers become big online advertising spenders The US insurance industry is turning increasingly to the internet as a marketing platform and will this year spend $980 million on online advertising, up 36 percent compared with the $720 million it spent in 2006, according to internet research company eMarketer
A new insurance approach to longevity risk
In a claimed world first, UK pension scheme buyout specialist Pension Corporation has launched a longevity insurance product designed to protect defined benefit pension funds and their sponsors against the cost of pensioners living longer than expected The product is offered by Pension Corporations Pension Insurance Corporation (PIC) unit which has the capacity to underwrite up to £20 billion ($39.5 billion) of pension liabilities The policy offered by PIC will reimburse pension funds for the cost of any future pension payments that arise from pensioners living longer than expected
Axa’s Ambition 2012 hopes dashed
Reporting its third-quarter 2008 results, French insurer Axa reassured investors that despite market turmoil its financial position was sound and that there were no plans to raise additional capital.
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US health insurance industry consolidation forges ahead
US health insurance industry consolidation forges ahead Consolidation of the US health insurance industry has taken another step forward with the announcement that US insurer Cigna is to acquire Great-West Life & Annuitys health care division in a $1.5 billion cash deal
Conseco dumps costly problem
In a unique approach to a costly problem, US insurer Conseco is to hive off its long-term care (LTC) insurance unit Conseco Senior Health Insurance Company (CSHI) into an independent trust, the Senior Health Care Oversight Trust The strategy will enable Conseco to rid itself of a unit consisting of 142,000 LTC policies in run-off that has over the past 11 years absorbed $915 million to maintain a minimum level of regulatory capital and strengthen claim reserves. This unique structure aligns the interests of the independent trust, management and regulators with the policyholders, said Conseco CEO Jim Prieur.
Americans’ healthcare pain
The amount the average American family spends on employer-sponsored health care insurance per year is edging closer to one months salary, reveals a study by Aon Consulting, a unit of risk management and insurance brokerage Aon Corporation According to Aon the median annual household income in the US is about $48,000, ($4,000 per month) while the median annual contribution for family healthcare coverage is $3,120, up 15 percent compared with 2007 and 22 percent compared with 2006. Indicative of the increased burden on employees, Aon noted that organisations sponsoring health plans have experienced annual healthcare cost increases of about 10 percent since 2006.
More action in Australian industry
More action in Australian industry The pace of change in Australias private medical insurance industry quickened in August with the announcement by private health insurer MBF Australia that, subject to policyholder approval, it plans to demutualise and seek a listing on the Australian Securities Exchange
On the hunt for lost customers
On the hunt for lost customers For life insurers, hunting down former customers was once a futile exercise Today, thanks to advances made in database analysis technology, the task has been greatly simplified and for those insurers that harness the technology there are potentially rich rewards