All articles by LII editorial
LII editorial
Equitable Life saga drawing to a controversial end
The decade-long Equitable Life Assurance Society (ELAS) saga that has its origin in bad risk management and regulatory shortcomings is finally nearing an end Policyholders of the 240-year old UK mutual insurer who suffered losses following its near collapse nine years ago are to be compensated, Mark Hoban, financial secretary to the Treasury, announced on 22 July.
Pension Insurance Corporation comes to Alitalia scheme’s aid
UK defined benefit risk transfer specialist insurer Pension Insurance Corporation (PIC) has come to the rescue of members of the Alitalia Italian Airlines Pension and Assurance Scheme which is currently subject to assessment by the Pension Protection Fund
Retirement savings take a tumble in the UK
Tough economic conditions are taking a heavy toll on the savings of people in the UK over the age of 50, reveals life insurer LVs annual State of Retirement Report Britains over-50s have already seen their pension pots damaged by the economic crisis, and now many appear to be diverting still more money away from retirement saving to deal with immediate pressures,” said Ray Chinn, the insurers head of pensions Specifically, LV found that 21% of those have decreased their retirement savings by an average of £324 a month ($490), or £3,800 a year, more than double the £137 average reduction in retirement savings made by 20% of over-50s in 2009
Aviva and Santander strengthen UK ties
Aviva and banking group Santander have entered into an exclusive five-year life insurance distribution agreement in the UK, building on an existing general insurance distribution agreement Under the agreement, Santander will sell, under dual AvivaSantander brands, decreasing and level term life insurance with or without critical illness and income protection insurance products through its 1,300 branches and via telephone and online channels
US individual life activity takes an unseasonal dip
According to MIB, activity for individually underwritten life insurance in June 2010 declined by 3.9% in June year-on-year, the largest drop in application volume since March 2009
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Fraud crackdown in US
In a crackdown on health insurance fraud, 94 people have been charged by the US Department of Justice (DoJ) for participation in schemes to defraud the Medicare programme of $251m According to the DoJ, the accused participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and often never provided
US worksite sales shine in a weak market
Voluntary worksite purchases of insurance by American workers edged ahead in 2009, rising 3.3% compared with 2008 to $5.4bn, reports worksite insurance research firm Eastbridge The increase came against the background of a 15% fall in individual life insurance sales in 2009 as reported by research and consulting organisation LIMRA. Indicating workers increased realisation of the need to protect income, growth in workplace sales was led by critical illness insurance which jumped by 87.9%
Scrapping compulsory retirement in UK could have unforeseen results
Regimented retirement appears set to become a thing of the past in the UK with the launch by the government of a consultation process looking at scrapping the default retirement age (DRA), currently 65 For example, with no fixed retirement date, the insurer believes this could ultimately lead to an increase in cost for employers which could lead some to consider removing cover altogether for their employees.
Vienna Insurance Group enters Montenegro
Extending its reach further in Central and Eastern Europe, composite insurer Vienna Insurance Group (VIG) has established a new life insurer in Montenegro, Wiener Stdtische zivotno osiguranje Podgorica The Austrian insurer is now awaiting approval of its licence application which is expected to be granted in the third quarter of 2010. One of the smallest countries in CEE, Montenegro became part of the Federal Republic of Yugoslavia together with Serbia in 1992
US health insurance costs continue to soar
Health reform or not, health insurance costs in the US are continuing to rise at an alarming pace, according to the Council of Insurance Agents & Brokers (CIAB). Of the benefits consultants responding to the CIAB survey, 86% said prices increased for small accounts, those with 50 or fewer employees, with more than half the increases falling in the 11% to 20% range.