All articles by LII editorial
LII editorial
UK equity release market’s untapped potential
After holding relatively stable in the first quarter of 2009, the UK’s equity release market became another victim to the weak economic conditions in the second quarter, with new business down 15.5 percent from the £275.7 million ($470 million) released in the first quarter of 2008 to £232.9 million.
Axa Equitable Life turns 150
Axa Equitable Life, the US unit of French insurer Axa Group, reached an important milestone in on 26 June 2009 with the marking of the 150th anniversary of its founding.
Turning security into a money-spinner
A study on digital security in the life insurance market concludes that companies have the potential for significant value creation through more strategic emphasis on security initiatives.The 18-month study, undertaken jointly by technology vendor Computer Science Corporation (CSC) with the American Council of Life Insurers (ACLI), explores how carriers can better target their security investments to support growth and efficiency initiatives while also meeting compliance requirements.The study builds on research CSC conducted in 2008 to examine the impact of what it calls digital trust, which refers to the trust information technology fosters by improving the security and reliability of electronic transactions
US banks ride high on annuity sales
US banks enjoyed solid growth in the annuities market in the first quarter of 2009, with income earned on sales up 12.4 percent to a record $734.5 million, compared with the fourth quarter of 2008, reports consultancy Michael White Associates (MWA). Annuity commissions increased by a similar 12.1 percent to $655.2 million.
Deloitte sees big changes ahead
While some life insurers are merely hoping to ride out the global recession, many sense the imperative to expand their international footprint.
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Greenberg agrees to $15m SEC settlement
A four-and-a-half-year investigation conducted by the Securities and Exchange Commission (SEC) has culminated in the US regulator charging former American International Group (AIG) chairman and CEO Maurice “Hank” Greenberg and former vice-chairman and CFO Howard Smith for involvement in improper accounting transactions.
Partial victory for SEC opponents
Opponents of the US Securities and Exchange Commission’s (SEC) controversial Rule 151A have hailed a ruling by the US District Of Columbia Circuit Court of Appeals as a partial victory. Under Rule 151A adopted earlier this year, the SEC will assume regulation of fixed indexed annuities (FIA) in January 2011.
Aetna and UnitedHealth emerge as big winners in US Defense Department contract shake-up
The US Department of Defense (DoD) has created a major upset in the US health insurance industry with its decision to change suppliers of benefits to nearly six million active and retired service men and women and their families.Major losers in the change are Humana and Health Net while big winners are Aetna and UnitedHealth.The DoDs decision forms part of its revision of contracts awarded under the TRICARE programme covering the DoDs Military Health Systems (MHS) south and north regions in the US.In essence, TRICARE is the civilian care component of the MHS and has been in existence in various forms since 1956 to cover services supplied by non-military medical health care professionals and facilities.For Humana, the DoDs decision will mean the loss of the TRICARE South Region to rival health insurer UnitedHealth This development is due to be implemented on 1 April 2010 and will see some 3 million members shift from Humana to UnitedHealth.Indicative of the blow to Humana, the five-year contract awarded UnitedHealth has a gross value of $21.8 billion comprising $20.3 billion in government-forecasted health care costs and $1.5 billion for management support and services.Including TRICARE, Humana currently has 10.4 million medical members while UnitedHealth has some 70 million.Humana noted that it cannot yet determine a reasonable estimate of the financial impact of the DoDs decision.From a membership perspective the blow to Health Net is even more severe Also effective 1 April 2010, Health Net will see 2.8 million of its current 6.6 million members transferred to Aetna, a far larger insurer currently boasting membership of some 37 million.Humana is not taking the DoDs decision lying down and has reacted by filing a protest with the Government Accountability Office.
US writers up fees, reduce benefits
Hammered by onerous guarantee commitments on variable annuities, US insurers have acted to significantly reduce risk exposure on new products. This is highlighted by a study conducted by Symetra Life, which included products from 10 of the largest VA providers.
Industry tackles tough road to recovery
Against the background of plunging new life and savings business, industry body the Insurance Industry Working Group has published a bold strategy which, if accepted, would see industry players, the government and regulators join forces to forces to strengthen the UK insurance industry at home and internationally With first-half 2009 results steadily coming in from UK insurers, a clear picture of the heavy toll economic recession is taking on new life and pensions business is emerging.