All articles by LII editorial
LII editorial
Millions of British policyholders in need of advice
Over 10 million people in the UK could have the wrong life and other protection insurance, reveals a study undertaken by Barclays Financial Planning (BFP), a unit of Barclays Bank specialising in life insurance, pensions and investment products BFP based its estimate on a total of 25.6 million protection policyholders of which 42 percent 10.75 million have had one or more specific life changes since taking out or last updating their cover Life changes specified by BFP are purchasing a house, changing jobs, having a child, getting married, getting divorced or purchasing a second home.
Reform at last of UK PPI market
With the backing of the UKs Competition Commission (CC), proponents of reform of the countrys payment protection insurance (PPI) market have scored a major victory Following a lengthy evaluation of the market which culminated in the publication of a consultation paper in November 2008 (see LII 230), the CC has announced sweeping changes to the PPI market that will come into force in 2010 A ban on the sale of single premium PPI policies;
Life settlement fraud case grinds on
An investigation by the US Federal Bureau of Investigation now running into its fifth year had another in a series of sequels in early January when four men were charged in a Florida court for their alleged role in a life insurance fraud in which more than 28,000 victims lost a total of $837 million In a statement the US Department of Justice (DOJ) said two of the defendants, Steven Steiner and Joel Steinger, were founding principals of Mutual Benefits Corporation (MBC), a Florida-based company that sold viatical and life settlement investments through an international network of sales agents. The other two defendants, Florida-based attorneys Anthony Livoti and Michael McNerney, had close working relationships with MBC which was shut down by federal regulators in May 2004.
NAIC dashes US life insurers’ hopes
A request by the American Council of Life Insurers (ACLI) to relax US life insurers capital and surplus requirements has been rejected by the National Association of Insurance Commissioners (NAIC) executive committee A surprise decision, it followed positive recommendation by the NAICs surplus working group for six of the ACLIs nine proposals The six proposals related to reserving requirements, reinsurance collateral and accounting procedures.
American consumer trust evaporates
Financial markets have taken a beating recently and so too has US consumer perceptions of insurers, financial advisers and other financial services companies, reveals a survey by US public relations agency Cohn & Wolfe The survey found that consumer trust in the financial services industry has dropped significantly when compared with a similar survey conducted by Cohn & Wolfe 18 months ago In the earlier survey, 67 percent of respondents said they had trust in the industry, while in the latest survey four out of 10 respondents said their trust had deteriorated.
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Conseco concedes errors
Conseco and the Florida Office of Insurance Regulation (FOIR) have agreed to enter into discussions to resolve a particularly unpleasant situation the US life insurer finds itself in Discussions relate to serious accusations leveled against Conseco Life by the FOIR in December 2008 The FOIRs accusations relate to the insurers Lifetrend universal life product and include mismanagement and withholding information from the FOIR which has threatened Conseco with suspension or revocation of its licence to operate in the state.
No end in sight for saga of Equitable Life
Policyholders who suffered financial loss following the near collapse of the UKs oldest mutual insurer Equitable Life Assurance Society (ELAS) in 2001 gained cold comfort from the British governments response to Parliamentary Ombudsman Ann Abrahams damming report on regulatory incompetence This is the start of yet another chapter in the fight for compensation, rather than a conclusion, said independent policy adviser Ros Altmann. At the heart of the issue is a demand for compensation of policyholders who suffered losses, much of the blame for which has been laid at the door of UK financial regulators.
Property meltdown takes a heavy toll
The collapse of the US residential mortgage market has taken a heavy toll on a multitude of insurers, not least Genworth Financial which found itself hit as an investor and mortgage insurer Now, busy with a radical restructuring, Genworth faces at least another year of extremely testing market conditions Genworth Financial is on a path of intense restructuring, the inevitable result of a stream of bad financial news delivered in 2008 by the US eighth largest life insurer ranked in terms of 2007 revenue and assets.
Gloomy times ahead for AllianceBernstein
An indication of the toll taken by investment market turmoil on asset management companies has been provided by results released by AllianceBernstein, a US-based asset manager in which French insurer Axa holds a 62.4 percent stake
ING comes to terms with reality
Dutch bancassurer ING Group is to make sweeping changes to its organisational structure in an attempt to slash costs and adapt to what it terms the new business environment ING will be led into this era of change by its chairman Jan Hommen, who will assume the additional role of CEO from Michel Tilmant who stepped down with immediate effect on 26 January. Revelation of changes at ING accompanied the announcement of its preliminary, unaudited fourth quarter results which were mauled by the worst quarter for equity and credit markets in over half a century