All articles by LII editorial
LII editorial
Retail distribution reform is vital for UK insurers
The UKs life insurance industry could self-destruct in the next five years if it does not back the core aim of the Financial Services Authoritys (FSA) Retail Distribution Review (RDR) of putting the consumer first, warns Mike Kellard, CEO of French insurer Axas UK unit, Axa & Winterthur Wealth Management Kellard was delivering the keynote speech at a conference in late January, Rethinking Life Insurance 2008 Generating and Preserving Value The FSA published an RDR discussion paper in June 2007 in which it called on insurance industry players to comment on its proposals for sweeping changes to the structure of retail financial product distribution
Credit rating agencies feel the heat
As the financial cost of the US subprime mortgage meltdown continues to mount, credit rating agencies are shouldering a hefty chunk of the blame The US residential mortgage-backed structured securities fiasco and its knock-on effect in other debt security sectors could eventually result in total investment losses of $945 billion, predicts the International Monetary Fund
Landmark court victory for Marsh & McLennan
Landmark court victory for Marsh & McLennan A New York federal judge, Garrett E Brown, has dismissed a multi-district class action brought by three dozen commercial lines clients against US insurance broker Marsh & McLennan Companies (Marsh) and dozens of other insurance brokers and carriers about 20 other industry participants alleging that the brokers conspired to allocate clients, fix prices and restrain trade
Regulators haul UnitedHealth over the coals
As one chapter of controversy closes for UnitedHealth Group, the USs second-largest health insurer, another chapter opens, so it seems. And the latest chapter could prove to be UnitedHealths most costly yet as it faces down the California Department of Insurance (CDI) and the California Department of Managed Health Care (DMHC) and a potential fine of up to $1.3 billion Collaborating for the first time, the CDI and the DMHC have brought a joint action against UnitedHealth in response to consumer and provider complaints alleging handling violations by its PacifiCare unit it acquired in July 2005 for $8.1 billion The CDI regulates provider preferred organisations, in essence alliances between healthcare providers and insurers
Business as usual for AIG Africa
Business as usual for AIG Africa Shrugging off negative publicity surrounding its parent groups financial woes, AIG Africa has enjoyed yet another successful year Indeed, far from stagnating, expanding its three existing operations and moves into new African markets are high on the agenda, the companys newly appointed CEO Peter Flint tells LII.
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CEA sees room for improvement in Solvency II
CEA sees room for improvement in Solvency II European insurance industry body the Comit Europen des Assurances (CEA) has released what it termed high-level comments on the European Commissions draft Directive on Solvency II for European insurers, published in July
Hartford Life’s new structure for growth
Hartford Life, The Harford Financial Services Groups life insurance unit, is undergoing a major revamp aimed at enhancing its ability to harness US and global growth opportunities Central to the strategy of the US fourth largest life insurer is creation of four market groups: individual, employer, institutional and international With this new structure in place, we can better align all of our resources financial, talent, product development and distribution around our most important assets, our customers, said Hartford Lifes president and CEO, John C Walters.
UK consumers demand choice
Consumers in the UK demand choice when it comes to insurance products, reveals a survey conducted by not-for-profit trade body the Association of Independent Financial Advisers (AIFA) According to the AIFA, 96 percent of respondents said they expected an independent financial adviser (IFA) to be able to select a product from the whole of the market, while only 4 percent would expect to be offered a product from a shortlist of companies The survey was conducted by the AIFA as part of its response to the Retail Distribution Review (RDR) published by the Financial Services Authority (FSA) in June 2007
UK insurers lethargic about Solvency II
Complacency appears to pervade the UK insurance industrys approach to the Solvency II European insurance capital adequacy directive, suggests a study undertaken by business advisory firm Deloitte Indicatively, Deloitte found that of insurers surveyed, 70 percent do not yet have a programme in place to equip themselves for the Solvency II directive which is due to be implemented in 2012 Commenting, Deloitte insurance partner Rick Lester said: Many insurers have been busy complying with other regulations such as the introduction of Individual Capital Assessments and MiFID Markets in Financial Instruments Directive and may not yet have turned their attention to Solvency II
Supplementary benefits hold huge potential
Supplementary benefits hold huge potential A survey by consulting organisation LIMRA International has revealed a potential bonanza awaiting insurers in the US worksite marketing channel