All articles by LII editorial
LII editorial
US insurers’ strong voice on stability oversight council
With President Barak Obamas nomination of Roy Woodall to the Financial Stability Oversight Council (FSOC), the US insurance industry is set to have a loud voice in what appears destined to become one of the most influential bodies in the country The FSOC was established under the Dodd-Frank Act of 2010 and is charged with identifying threats to the financial stability of the US and promoting market discipline
Bank of America exits US life insurance industry
Bringing to an end its direct involvement in insurance, Bank of America is to sell its wholly-owned subsidiary Balboa Life Insurance Company to mutual financial services company Securian Financial Group for an undisclosed sum
UK insurers turn to a new tough-times model
Indicative of the problems facing the UK life industry, it enjoyed the last period of robust growth in terms of new business more than a decade ago
Axa to get new partner in India
Ending its five-year partnership with French insurer Axa, Indian conglomerate Bharti Enterprises is to sell its 74% stakes in their life and general insurance joint ventures (JV) to Reliance Industries (RI) and its subsidiary Reliance Industrial Infrastructure (RII) for an undisclosed sum
Dutch life industry hammered onto the ropes
Many Dutch life insurers made the headlines for all the wrong reasons during the global financial crisis The Netherlands life industry is now faced by a barrage of daunting challenges ranging from a drastic loss of market share to plummeting margins that threaten its very existence in its current form. In November 2009, Aviva took the first step in the process of reducing its exposure to the Netherlands when it completed an initial public offer of its then wholly-owned Dutch unit, composite insurer Delta Lloyd
Subscribe to our Newsletter
Get industry leading news, data and analysis delivered to your inbox
Direct credit could save UK insurers a packet
While the Association of British Insurers reports insurers paid out in excess of £84bn ($135bn) for insurance claims around £231m each day Bacs data shows only £25.6bn of this was paid through Bacs Direct Credit
Sun Life takes claims submission mobile
Harnessing the benefits of modern technology, Sun Life Financial is to offer a free app to group retirement and savings plan members which enables them to use their smartphone to submit medical and dental benefit claims. According to the Canadian insurer, the new app will enable payment to be made to members in as little as 24 hours and will also enable users to check their plan balances and recent contributions. Taking the mobile app a step further, Sun Life will offer mobile access and three interactive financial planning tools which, the insurer notes, “take everyday spending situations and show how easy it is to turn small expenses into substantial savings”.
Risk takes on a new meaning
Claiming top position is a risk that has in some respects escalated since the financial crisis: the burden of regulation that is being placed on the insurance industry by regulatory reform at international and local levels. This revelation comes from a wide-ranging study Insurance Banana Skins 2011, conducted by London-based non-profit organisation the Centre for the Study of Financial Innovation (CSFI) in conjunction with professional services firm PricewaterhouseCoopers.
UK risk transfer market to grow by £20bn by 2012
Defined benefit pension scheme risk transfers continue to be a bright-spot in the UK life market with actuarial firm Hymans Robertson (HR) reporting that the number of deals awaiting finalisation are at by far the highest levels since before credit crisis.
New lease of life for failed US life insurer
Mutual insurer Shenandoah Life, placed into receivership by the US state of Virginias State Corporation Commission in February 2009, has received a new lease of life