All articles by LII editorial
LII editorial
Optional federal chartering would save billions of dollars
Optional federal chartering would save billions of dollars US insurers and insurance industry bodies lobbying for approval of legislation that would permit insurers to choose between existing state regulation or a new optional federal charter (OFC) have received a significant boost from a study authored by Laureen Regan, associate professor with Temple Universitys Fox School of Business and Management
China Life faces strong headwinds
His comments accompanied the release of China Lifes 2007 annual results, which revealed a sharp fall in market share and vulnerability to a weak equity market
McCreevy pulls no punches
Its blame time in the worlds financial markets and to date few have done a more thorough job than Charlie McCreevy, the European commissioner for internal market and services. Addressing a plenary session of the European Parliament in Brussels on 22 September, McCreevy systematically chastised role players in the current financial market fiasco and left no doubt that a new regulatory approach lies ahead. Unsurprisingly, it was US banks that were first to come under attack from McCreevy for their pivotal role in creating a global financial crisis described by the European Central Bank governing council member Miguel ngel Fernndez Ordez as the worst since the 1929.
UK mortgage providers take the gap
When it comes to life insurance, home mortgage providers customers represent an ideal cross-selling opportunity, and in the UK it is one often taken advantage of at a high cost to customers, indicates a study undertaken by Post Office Life Insurance (POLI), a unit of the countrys postal service utility Indeed, in some instances the study found that customers could pay up to £1,971 ($3,900) too much in total over a 25-year period for term life cover bought via their mortgage provider. The extra £1,971 was based on the difference in the cost of £100,000 cover for a non-smoking male aged 40 next birthday over 25 years available from POLI (total cost £4,119) and from mortgage provider Natwest (total cost £6,090)
State regulators hit back at critics
Fighting a tough battle against proponents of an charter under which US insurers would be able choose between current state-only regulation and federal regulation, the National Association of Insurance Commissioners (NAIC) has come out strongly in defence of its role in the American International Group (AIG) debacle. Some insurance lobbyists hope to politicise and mislead policymakers by suggesting AIGs problems are a result of state insurance supervision, and could have been averted by federal oversight, the NAICs president and Kansas Insurance Commissioner, Sandy Praeger wrote in a letter to the US House Committee on Oversight and Government Reform.
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UK Post Office dangles a big cashback incentive on life products
UK Post Office dangles a big cashback incentive on life products Reflecting the competitiveness of the UKs life insurance market, the Post Office Life Insurance, a unit of the countrys Royal Mail postal service, has hung out a £100 ($205) cashback lure to prospective buyers of its new level term and decreasing term life insurance products
Beleaguered Scottish Re jettisons international unit
As part of its strategy to dispose of non-core assets, Bermuda-registered life reinsurer Scottish Re has agreed to sell its International Life Reinsurance (ILR) unit to US insurer Pacific Lifes parent company Pacific LifeCorp for $71.2 million, subject to a potential downward adjustment The disposal comes at a time when Scottish Res market capitalisation has slumped to a mere $5.5 million and its counterparty credit rating slashed to CCC- by rating agency Standard & Poors. Scottish Res ILR unit, which is to be renamed Pacific Life Re, provides life and annuity reinsurance in the UK, Ireland and Asia and has offices in London, Singapore and Japan.
UK pension schemes seek performance
UK pension schemes seek performance Despite volatility in world investment markets, UK executives responsible for final salary pension schemes still favour a significant exposure to return-seeking assets, consultancy Watson Wyatt has concluded following a recent investment seminar it hosted
Axa Asia-Pacific has ambitious goals for Australasian units
At its annual strategy conference held in late November 2007, Axa Asia-Pacific (AAP), a 53 percent-owned subsidiary of French insurer Axa, unveiled Ambition 2012, a bold set of expansion targets it has set itself for its units in Australia and New Zealand between 2008 and 2012 Among key targets during the five-year period are the doubling of both the enterprise value and new business volumes of both units, and the lowering of the Australian units cost-income ratio by 25 percent and that of the New Zealand unit by 15 percent These targets represent a significant stretch for our Australian and New Zealand businesses and achieving them will drive strong growth over the next five years, said AAPs group chief executive, Andrew Penn.
Old Mutual’s lucky break in China
The door to Chinas asset management market has been opened for UK insurer Old Mutual in an unusual manner: a Chinese regulatory requirement that has compelled Belgo-Netherlands bancassurer Fortis to sell its stake in one of two Chinese joint ventures (JV). For Fortis, the choice was to sell its 49 percent stake in Fortis Haitong or its 49 percent stake in ABN AMRO TEDA Fund Management (AATEDA), company shares it inherited as part of its recent acquisition of a portion of the Netherlands bank ABN Amro. Fortis decision was to sell its AATEDA stake to Old Mutual, a choice Lex Kloosterman, a member of Fortis Groups executive committee, said was supported by AATEDAs other JV partner, Chinese conglomerate Tianjin TEDA Investment Holding Company.