All articles by LII editorial
LII editorial
IFRS takes another step towards uniform insurance standards
Uniform accounting standards for insurance contracts have taken another step towards becoming a reality with publication by the International Accounting Standards Board (IASB) of Insurance Contracts, an exposure draft of improvements for comment.
Insurers plan big spend on distribution upgrades
Insurers are waking up to the need to adapt marketing strategies to keep pace with the rapid changes phenomena such as social media and mobile technology are bringing about, reveals a study by management consulting and technology services provider Accenture Based on a survey of executives at 125 life and general insurers in 24 countries in North and Latin America, Asia, Europe and Africa, Accenture found that, on average, they plan to invest $84m over the next three years to improve their multi-channel distribution strategies
Reform spells big trouble ahead for many smaller US health insurers, warns Weiss Ratings
Hailed by US President Barackas the answer to the countrys health insurance problems, the new Patient Protection and Affordable Care Act could spell disaster for some small health insurers, warns rating agency Weiss Ratings president Martin D Weiss. Sweeping changes mandated by health care reform, such as the removal of certain limits and mandated coverage for pre-existing conditions, will inevitably force health insurers to spend more on medical care,” said Weiss
AIG to approach shareholders to fund settlement
Shareholders American International Group (AIG), which is almost 80% owned by the US government, may soon be asked to cough up more money following its settlement of a $725m securities class action with Ohio attorney general Richard Cordray. Under the settlement, AIG has agreed to make an initial payment of $175m after entry of a court order granting preliminary approval of the settlement with the remaining $550m to be funded by AIG through one or more ordinary share offerings If AIG does not fund the $550m before court approval of the settlement, the plaintiffs may terminate the agreement, elect to acquire shares of AIG with a market value of $550m or extend the period for AIG to complete a share offering.
Not all insurers’ websites are created equal
How effectively they make use of that presence differs significantly from one insurer to another, emphasises Customer Respect Group (CRG), an international research and consulting firm focused on the way in which companies treat online customers. In a research report CRG identified a number of key trends in American consumers use of the online channel as it impacts life insurers
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Standard Life Investments extends global reach
UK insurer Standard Life has added momentum to its globalisation strategy in the asset management industry with the formation of a reciprocal alliance with Japanese trust bank, Chuo Mitsui Asset Trust and Banking
Aon, Hewitt deal sets consolidation pace
Aon Corporation, the worlds largest insurance broker is to buy US human resource (HR) and consulting company Hewitt Associates for $4.9bn, roughly half of its market capitalisation The deal is the largest in Aons history and significantly eclipses its previous largest deal, the acquisition of reinsurance broking company Benfield for $1.4bn in 2008. Aon CEO Greg Case said: “As we continue to grow our business, this merger will give us a broader portfolio of innovative products and services focused on what we believe are two of the most important topics in the global economy today risk and people.”
Another top-level shake-up at AIG
Highlighting a clash of wills between himself and AIG CEO Robert Benmosche, Golub wrote in a letter to the AIG board: “Bob Benmosche has informed the board that he believes our working relationship as chairman and CEO to be ineffective and unsustainable
Consumer ignorance weighs heavy on Australian life market
It may come as a blow to Australian life insurers that pride themselves on setting the highest ethical standards, but unfortunately few Australian consumers trust them This unpleasant reality was revealed by Australian internet-based insurance broker Lifebroker in its latest Life Insurance Report According to Lifebroker, 67% of consumers surveyed for the report said they believe insurers will use loopholes to avoid payouts
New York State Attorney General goes to war against US life insurers
In another potentially damaging blow to the US life insurance industrys image, New York State Attorney General Andrew M Cuomo has launched a fraud investigation into “practices that appear to have denied grieving military families and others ofms”. According to Cuomo, he is investigating how military families and others were misled into putting benefits into insurer-controlled, low-yield, potentially risky accounts which reapedms of secret profits for the insurers.