All articles by LII editorial
LII editorial
Direct sales channels hit their mark in the US
Though sales of life insurance through direct channels in the US has been around for a long time, little detail about their significance has been available This has been changed by a study undertaken by research and consulting organisation LIMRA International which reveals that direct channels account for one out of every five individual policies sold. For the first time, we have been able to quantify the amount of individual life insurance sold through direct channels, like the internet, direct mail and telephone, said Ron Neyer, a senior analyst at LIMRAs distribution research unit
UK pensions body lures reluctant savers
Despite missing out on employer contributions, nearly 7m people in the UK eligible to join a defined contribution (DC) pension scheme have failed to do so, a shortcoming workplace pension scheme body the National Association of Pension Funds (NAPF) is attempting to remedy Spearheading the NAPFs efforts is its Pension Quality Mark (PQM), a programme launched in September 2009 that aims to encourage workers to join the DC scheme offered to them by providing a clear signal that the scheme is a good one
Californian insurers square up to commissioner Poizner over Iran
Californias insurance commissioner Steve Poizner has left no doubt about his dislike of Irans political regime, backing it with an order to insurers licensed in California to sell shareholdings in 50 international companies he has identified as propping up Irans energy, nuclear, and defence sectors (see LII 245). Taking a first step to oppose the commissioner, five national and state trade associations representing Californias life, health and property and casualty insurance industry have filed a petition with the California Office of Administrative Law opposing what they claim is a move by Poizner that exceeds his legal authority.
Pru’s mega Asia deal comes with risk
Deals dont come much bigger than UK insurer Prudentials $35.5bn acquisition of American International Groups (AIG) Asian subsidiary AIA Group But the acquisition also comes with significant execution and integration risks cautions Hong Kong-based Sally Yim, a senior analyst with rating agency Moodys. The merger will involve two very large multinational operations, and it will therefore demand a considerable amount of management time to secure the efficiency of a group with operations in Asia, the UK, and the US, said Yim.
New York regulator fines Axa Equitable $1.9m for mis-selling
Joining a growing number of insurers to fall foul of regulators for mis-selling, Axa Equitable has paid a $1.9m fine to the New York State Insurance Department (NYSID) According to the NYSID, the violations occurred between 1 January 2001 and 30 June 2006 and involved inaccurate or incomplete disclosures to consumers buying replacement annuity contracts and life insurance policies
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Canadians remain firmly on savings route
A tough economy is not deterring Canadian employers and employees from contributing to group defined contribution (DC) retirement and similar plans, reveals a study sponsored by Canadian insurer Great-West Life. Specifically, employers contributed 4.6% of salaries to their pension plans in 2009, up from 4.5% in 2008, while employees contributed 4.3% of salaries, up from 3.9%.
Europeans regain appetite for risk
This was reflected in inflows into undertakings for collective investments in transferable securities (UCITS) which excluding money market funds reflected net inflows of 165bn ($252bn) compared with net outflows of 420bn in 2008
Bonanza year for Standard Life Investments
For UK insurer Standard Lifes investment division Standard Life Investments (SLI), 2009 proved to be a winning one in all respects, including new business and that all-important ingredient, investment performance.
No quick fix for US life insurers
After sustaining a total statutory net loss of $50bn in 2008, the US life insurance industry turned the corner in 2009, generating statutory net income of about $10bn in the first three quarters of 2009, according to Moodys Investors Service
Technology giants power predictive analytics
Two of the most significant players in the global technology market, US-based Accenture and SAS Institute have joined forces to develop what they term the “next-generation” of predictive analytics solutions