Wednesday, December 28, 2005

 

Fines by NASD Up 21% in 2005

The brokerage industry's chief regulatory group said Tuesday it collected a record $125.4 million in disciplinary fines this year, 21% more than in 2004, for violations including abuses in sales of mutual funds and variable annuities.

The Washington-based NASD also said it filed 1,412 enforcement actions in 2005, up 1% from the previous year, and barred or suspended 737 people from the securities industry, down 12%. It closed 9,150 arbitration cases and 1,700 mediation cases...

LA Times: Fines by NASD Up 21% in 2005

Permalink posted by markw @ 12:50 PM
 

Insurers ramp up efforts to sell long-term-care insurance

Insurers are ramping up efforts to sell long-term-care insurance, offering new products and forging alliances with employers to make the policies more widely available in the workplace.

Congress helped boost those efforts last week when it passed new rules that tighten eligibility for Medicaid coverage of nursing-home costs. That means more middle-class Americans will likely be on their own later in life when it comes to paying for long-term-care needs, which can run into the tens of thousands of dollars for even a relatively short period.

Insurers are hoping to ignite consumer interest with a slew of new products.

WSJ: Insurers push policies for long-term care

Permalink posted by markw @ 12:49 PM
 

Annuity can't be rolled over to 401(k)

Q: Seven years ago I inherited $50,000 from my granddad. I wanted to save this money for retirement, and a financial planner persuaded me to buy a retirement variable annuity.

I've made some money, but several financial books I've read have convinced me that the annuity was probably not the best investment for my inheritance.

I recently received a call from the planner who sold me the annuity. She says it has matured and that we should meet to arrange a tax-free exchange to a better retirement annuity offered by the same insurance company...

N&O: Annuity can't be rolled over to 401(k)

Permalink posted by markw @ 12:49 PM
 

Swiss Re completes securisation of life insurance policies worth $370M

Swiss Re said that following its first transaction in January this year, it has successfully completed another securitisation of future profits from a portfolio of US life insurance policies worth 370 mln usd. The Swiss reinsurer said that of the 370 mln usd in proceeds, 45 mln usd will go into a reserve fund and 325 mln usd will be paid as a ceding commission to the group.

One of Swiss Res strategic objectives is to increase the amount of insurance risk [made] available to capital market investors...

Forbes: Swiss Re completes securisation of life insurance policies worth 370 mln usd

Permalink posted by markw @ 12:49 PM

Tuesday, December 27, 2005

 

Death-defying execs find insurance costly

The daredevil employee in the executive suite next to you might be anxious for the next skydive or a climb up K2. But she's paying for her adventurous spirit with higher life insurance premiums.

Three-fourths of all Americans have a life insurance policy of some kind and two-thirds have individual life insurance that didn't come from an employer's policy...

MSNBC: Death-defying execs find insurance costly

Permalink posted by markw @ 11:54 AM
 

When to start buying life insurance?

Dear Dave,

What's the minimum age at which you recommend buying life insurance? I'm 27-years old and married, no kids and we're doing pretty well with our debt-reduction. Currently, we only have $10,000 in debt remaining and this includes some student loans and a mortgage.

Sheldon in Salt Lake City

Worldnet: When to start buying life insurance?

Permalink posted by markw @ 11:54 AM
 

Annuities Can Offer `Spendthrift' Protection

People buy fixed annuities outside qualified retirement plans for a variety of reasons. They include: Tax Deferral - Most buy annuities because they are guided by their advisers to do so in order to build up compound interest in their account and not pay current income tax on the growth. For them, this tax benefit is paramount...

The Ledger: Annuities Can Offer `Spendthrift' Protection

Permalink posted by markw @ 11:54 AM
 

Variable Annuities offer Cornucopia of Options

One type of insurance charges you more when you need it less.

Another pays your beneficiary a minimum guaranteed return on your premium, even if you don't qualify for life insurance.

If you own a variable annuity with the typical return-of-premium death benefit, you have the first type of insurance. If you want the second, you may find it in ... a variable annuity...

The Register-Guard: Variable Annuities offer Cornucopia of Options

Permalink posted by markw @ 11:53 AM
 

Why ETFs Produce Lower Tax Bills Than Mutual Funds

Q. You wrote recently that exchange-traded funds tend to trigger lower annual tax bills than index-style mutual funds owning the same stocks. Why is that?

A.: It has to do with the way each type of investment is bought and sold.

When you buy mutual fund shares, the fund company uses your money to buy more shares of the stocks the fund owns. And when you sell your fund shares, those stocks are sold...

BlackEnterprise: Why ETFs Produce Lower Tax Bills Than Mutual Funds

Permalink posted by markw @ 11:53 AM

Thursday, December 22, 2005

 

Industry Will Have To Keep Pushing On Key Issues Into 2006

As with any business whose fortunes are so tightly linked to federal tax policy, the life insurance industry will have its work cut out for it in Washington in 2006. That’s because the industry faces a daunting task—namely, asking policymakers to digest an outsized legislative agenda while dealing with extremely cloudy political skies.

Industry Will Have To Keep Pushing On Key Issues Into 2006
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 12:30 PM
 

Nationwide Financial(R) Ready for Roth 401(k)

Beginning January 1, 2006, companies will be able to offer their employees a Roth 401(k) option within their existing retirement plan. Nationwide Financial Services, Inc. (NYSE: NFS - News) has created a series of educational materials for investment professionals to use when working with their plan sponsors that help explain the Roth 401(k) and provide guidelines to identify whether the savings option would be a good fit within their organization.

Nationwide Financial(R) Ready for Roth 401(k)
Source: Yahoo! Finance

Permalink posted by armandn @ 12:29 PM
 

Financial Advisors Will Be Facing Profound Changes in Their Industry in 2006, According to Impact Technologies Group

2006 will be a year of sharp changes for financial advisors and their clients, according to Impact Technologies Group, Inc. (Impact), a provider of financial sales software for the banking, capital markets and insurance industries. The company's industry trends forecast for 2006 predicts that federal tax reform, changes to the estate tax laws, and the first wave of baby boomers retiring will result in an unusually busy year for advisors and wealth planners.

Financial Advisors Will Be Facing Profound Changes in Their Industry in 2006, According to Impact Technologies Group
Source: Insurance News Net

Permalink posted by armandn @ 12:27 PM
 

Saving for Retirement High on Americans' New Year's Resolutions Lists

Financial resolutions will figure highly on the lists that many Americans put together at New Year's, according to a recent survey conducted by Delaware Investments. Many said that their primary financial goal is to save for retirement - and yet, only a small percentage said they planned to add to or open tax-deferred accounts created for that purpose.

Saving for Retirement High on Americans' New Year's Resolutions Lists
Source: PR Newswire

Permalink posted by armandn @ 10:06 AM

Wednesday, December 21, 2005

 

Key Legislation For Life Industry Advances

Pension reform legislation passed by the House last week contains provisions potentially very beneficial to the industry, experts say.

In a note to investors, Colin Devine, a life insurance industry analyst, says issues in Congress critical to the life insurance industry include proposals to create an optional federal charter for life insurance companies and repeal of the estate tax.

Key Legislation For Life Industry Advances
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 12:35 PM
 

Redefining Work: Many Baby Boomers Are Choosing To Stay On The Job -- But On Their Terms

The new year marks the 60th birthday for the first of the baby boomers, heralding a dramatic transformation of the labor market. With more than a third of the work force age 45 and older, many employers are bracing themselves to lose 25 percent to 45 percent of their workers in the next decade.

Redefining Work: Many Baby Boomers Are Choosing To Stay On The Job -- But On Their Terms
Source: Insurance News Net

Permalink posted by armandn @ 12:33 PM
 

Aging is a Family Occupation - Dr. Carolyn Baum

As the White House Conference on Aging convened this week in Washington,
DC, delegates were faced with a stark reality: The American population is
aging rapidly. The policy challenges they discussed are critical and
difficult. No one knows that better than American families. They are faced
with the daily effects of aging parents and relatives. Yet many people tend to
see only the problems caused by aging and overlook the opportunities. There
may be constant changes as we age, but many of those changes can be managed,
limited, and compensated for.

Aging is a Family Occupation - Dr. Carolyn Baum
Source: PR Newswire

Permalink posted by armandn @ 7:48 AM

Tuesday, December 20, 2005

 

Morningstar Expands Services for Individuals and Advisers

Morningstar Inc. is blazing a trail in the market for retirement savings distribution.

In January, Chicago-based Morningstar will begin testing a program that will help advisers monitor and manage their clients' money as they shift from saving for retirement to spending in retirement.

Morningstar Expands Services for Individuals and Advisers
Source: Investment News (subscription required)

Permalink posted by armandn @ 12:43 PM
 

Conseco May Add LTC-Life Hybrid Product

A Midwestern insurer that was struggling 2 years ago is starting to make what looks like a strong comeback.

Andrew Kligerman and other securities analysts at UBS Securities L.L.C., New York, give that assessment in a comment on a recent “field trip” to Conseco’s Carmel, Ind., headquarters.

Conseco May Add LTC-Life Hybrid Product
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 12:41 PM
 

Funds Continue to Cut Fees

Many mutual funds are lowering their fees, a practice that began as a maneuver to try and regain investors' trust following the trading scandals of 2003, The Wall Street Journal reports. The number of mutual funds that lowered their management fees exceeded 850 last year, up from 239 in 2003, a study by Lipper reveals. The study forecasts that by the end of this year, the number of funds to lower their fees will hit 700.

Funds Continue to Cut Fees
Source: Financial-Planning.com

Permalink posted by armandn @ 12:39 PM
 

Consumers Underinsured for Major Life, Work Events, Trusted Choice Survey Shows

At least 32 million U.S. households own insurance policies that aren't right for them, a new national survey conducted by Trusted Choice® finds.

Trusted Choice® agencies are insurance and financial services firms that offer consumers a broad selection of insurance policies and financial services products, customized insurance coverages as well as advocacy support. These firms are committed to providing excellent customer service.

Consumers Underinsured for Major Life, Work Events, Trusted Choice Survey Shows
Source: Insurance News Net

Permalink posted by armandn @ 12:38 PM

Monday, December 19, 2005

 

Setting Up A Pool For Critical Illness

People save for retirement, college expenses and even take out long-term-care insurance. But rarely do they set aside a segregated pool of assets to pay expenses in the event of a serious illness.

A recent survey by MetLife Inc. found that more than 40 percent of those surveyed had less than $1,000 put aside for medical expenses.

"They need to, unfortunately, recognize that there's a significant likelihood that they will be diagnosed with a serious illness in their lifetime," said Randy Stram, a vice president at MetLife who concentrates on critical-illness insurance.

Almost half of respondents in the MetLife survey said they would either borrow against retirement savings or use a home-equity line of credit to pay the expenses. A quarter said they would have to borrow from friends or family members.

Setting Up A Pool For Critical Illness
Source: Boston.com

Permalink posted by armandn @ 6:31 AM
 

Allstate Said to Mull Sale of Life/Annuity Unit

Life insurers' need for scale to compete with recently merged companies, and the failure of some to meet earnings targets, continue to fuel speculation that more deals are imminent, according to industry analysts.

The latest prominent insurer being mentioned as a sale possibility is Allstate Financial Services LLC, the life insurance and annuity division of Northbrook, Ill.-based Allstate Corp.

Allstate Said to Mull Sale of Life/Annuity Unit
Source: Investment News (subscription required)

Permalink posted by armandn @ 6:27 AM
 

Do You Need Long-Term Care Insurance? Look At The Facts

Now that 2005 is winding down and the holidays are upon us, I think it's time to face the facts and address a subject none of us want to think about: long-term care insurance.

Do You Need Long-Term Care Insurance?  Look At The Facts
Source: Nevada Appeal

Permalink posted by armandn @ 6:25 AM
 

Boomers Faced With Defining Retirement For Themselves

Catherine Stamper entered a towering building that housed the Chicago Burlington and Quincy offices in downtown St. Louis for an unpleasant meeting one September day in 1927. Yet it was an appointment that would insure her having consistent financial support for the remainder of her life.

The 53-year-old widow had lost her husband one month earlier to a cerebral hemorrhage and found herself beneficiary of some new program her husband, a railroad detective, had been part of through his employer. It was called a pension and was intended to insure him and his wife a steady income even after he stopped working or to offer help to his dependants upon his death.

Boomers Faced With Defining Retirement For Themselves
Source: Insurance News Net

Permalink posted by armandn @ 6:24 AM
 

JP-Lincoln shareholder vote awaits regulators' OK

Officials with Jefferson-Pilot Corp. and Lincoln National Corp. are preparing to announce a schedule for shareholder votes on their proposed merger, pending approvals from a variety of state and federal regulators.

Lincoln National filed a preliminary registration statement with the Securities and Exchange Commission Dec. 8 outlining its plan to issue more than 113 million shares of common stock to Jefferson-Pilot shareholders as part of the $7.5 billion merger between the two companies announced Oct. 11.

JP-Lincoln shareholder vote awaits regulators' OK
Source: Biz Journal

Permalink posted by armandn @ 6:21 AM

Friday, December 16, 2005

 

Greenberg Blasts Spitzer Tactic

In some of his sharpest comments to date, the ousted chairman of American International Group Inc., Maurice R. "Hank" Greenberg, said in an interview yesterday that New York state's attorney general was being "irresponsible" in what he said amounted to trying his case in the press.

Greenberg Blasts Spitzer Tactic
Source: WSJ Online (subscription required)

Permalink posted by armandn @ 8:51 AM
 

Fitch Watches For Life M&A Activity

Consolidation in the North American life insurance industry should help keep the industry stable in 2006.

Julie Burke, a managing director in the Chicago office of Fitch Ratings, gave that assessment during a recent teleconference.

Mergers and acquisitions tend to create larger, more diverse, more adaptable companies, Burke said.

Fitch Watches For Life M&A Activity
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 8:47 AM
 

Bank VA Sales Overtake Bank FA Sales

In September, for the first time in 5 years, bank and savings institution sales of variable annuities exceeded sales of fixed annuities.

Bank sales of variable annuities reached $1.9 billion in September, up from $1.4 billion in September 2004, while bank FA sales fell to $1.6 billion, from $2.2 billion, according to Kenneth Kehrer Associates, Princeton, N.J.

Bank VA Sales Overtake Bank FA Sales
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 8:45 AM
 

Survey Finds Boomers Burdened With Family, Including Aging Parents

As the oldest of the nation’s 75 million baby boomers approach the age of 60 on January 1, a Pew Research Center survey released last week finds many are looking ahead to their own retirement while balancing a full plate of family responsibilities – either raising minor children or providing financial and other forms of support to adult children or to aging parents.

Survey Finds Boomers Burdened With Family, Including Aging Parents
Source: Senior Journal

Permalink posted by armandn @ 8:43 AM
 

Union Central Life Insurance merger approved

Ohio Department of Insurance has approved Union Central Life Insurance Co.'s creation of a mutual holding company and the merger of its mutual holding company with Ameritas Acacia Mutual Holding Co. (The Ameritas Acacia Cos.).

Union Central Life Insurance merger approved
Source: Biz Journals

Permalink posted by armandn @ 8:42 AM

Thursday, December 15, 2005

 

Federal Survey Reports Life Expectancy Hits New High

U.S. life expectancy set a new record in 2003, but nearly half of all Americans between the ages of 55 and 64 face major cardiovascular risks, a new survey from the National Center for Health Statistics finds.

According to the center — a branch of the federal Centers for Disease Control and Prevention in Atlanta — a child born in 2003 can expect to live to live to 77.6 years, compared with 77.3 years in 2002 and 75.4 years in 1990. Men who reached age 65 by 2002 can expect to live to an average of 82, while for women, the average was 85, the report found.

Federal Survey Reports Life Expectancy Hits New High
Source: A.M. Best (subscription required)

Permalink posted by armandn @ 12:40 PM
 

Regulators, Industry, Give and Take on Hot NAIC Issues

You can't always get what you want, but if you try sometimes, you just might find an acceptable model law.

That seemed to be the theme at the National Association of Insurance Commissioners' Winter National Meeting in Chicago, where issues ranging from insurer receivership to creation of a claims database either changed form, were delayed or were just plain taken off the radar screen.

One example of compromise that earned kudos from the insurance industry was the NAIC's decision to postpone a vote on creating a fingerprint repository. The database, whose purpose is to capture the prints of agents, producers and insurance company executives in one central location, is at the heart of the pending Authorization for Criminal Background Check Model Act.

Regulators, Industry, Give and Take on Hot NAIC Issues
Source: A.M. Best (subscription required)

Permalink posted by armandn @ 12:38 PM
 

Major Expansion of Living Benefits Well Underway

The Diversified Services Group, Inc. (DSG) announced the release of the 6th Annual Study of Retirement Income Products, Issues and Market Trends. The report includes the findings from two separate, but complementary, research efforts: a survey of 43 major variable annuity companies and a series of in-depth interviews with selected executives focused on the retirement income market opportunity.

Major Expansion of Living Benefits Well Underway
Source: Insurance News Net

Permalink posted by armandn @ 12:36 PM
 

ING Among Top-Ranked Service Providers to 401(k) Plans

ING announced today it has been recognized with five awards across the micro-and small-plan markets by PLANSPONSOR magazine's Annual Defined Contribution Survey of plan sponsors. The survey results were published in the magazine's November issue. ING earned three awards from micro-plan clients including timeliness of participant reporting, range of investment options and responsiveness. In the small-plan market, ING was awarded for turnaround time for loans/withdrawals and range of investment options.

ING Among Top-Ranked Service Providers to 401(k) Plans
Source: PR Newswire

Permalink posted by armandn @ 12:34 PM
 

Allstate Survey Offers Advice on Keeping Retirement Resolutions

Allstate Corporation has done some background work that could help you make as well as keep those resolutions.

The Northbrook, Ill. based insurer announced results of it's fifth annual "Retirement Reality Check" survey. The Allstate survey measures Americans attitudes about saving for retirement and provides some no nonsense strategies that can make you more successful in keeping those resolutions.

Allstate Survey Offers Advice on Keeping Retirement Resolutions
Source: Insurance Journal

Permalink posted by armandn @ 12:26 PM

Wednesday, December 14, 2005

 

Why Big Insurers Are Staying Away From This Year's Hot Investment Product

One of the insurance industry's hottest products is coming under fire -- from insurance companies.

Sales of equity-indexed annuities have soared, hauling in $23 billion in 2004 and an additional $21 billion in the first nine months of this year, according to annuity tracker Advantage Compendium. These products aim to capture part of the stock market's gain, while guaranteeing that investors will at least break even or earn a modest return. That mix of upside potential and downside protection has proven especially popular with seniors.

Why Big Insurers Are Staying Away From This Year's Hot Investment Product
Source: Wall Street Journal (subscription required)

Permalink posted by armandn @ 7:24 AM
 

It Pays to Know Your ABCs When Buying Mutual Funds

Time for a multiple-choice quiz.

Say you invest $10,000 in The Growth Fund of America, one of the most popular stock mutual funds in the country, and the fund returns an average of 8 percent a year compounded before all sales charges and expenses.

After 20 years, you will have: (a) $40,780 (b) $40,746 or (c) $39,860?

It Pays to Know Your ABCs When Buying Mutual Funds
Source: Sun-Sentinel.com

Permalink posted by armandn @ 7:21 AM
 

Why The 3Q Decrease In Index Annuity Sales?

In the first 9 months of 2005, indexed annuities continued making impressive sales gains and claimed an increased share of overall fixed annuity sales compared to the same year-earlier period. But 3rd quarter 2005 data shows indexed annuity sales actually fell from the prior quarter and the same quarter last year.

Why The 3Q Decrease In Index Annuity Sales?
Source: Insurance News Net

Permalink posted by armandn @ 7:20 AM
 

Phoenix Upbeat About '06 Earnings Growth

The Phoenix Cos., plugging away in its turnaround, forecast double-digit earnings growth for 2006 and said Tuesday it's considering a securities deal that could boost its performance.

Hartford-based Phoenix also said return on equity may not be any higher in 2006 than this year, and acknowledged that its annuity and asset management businesses still need improvement.

Dona D. Young, Phoenix's chairman, president and chief executive, told an investor conference in New York that the company has completed the "refocusing and restructuring phase of our turnaround" but that "much remains to be done" to realize Phoenix's full potential.

Phoenix Upbeat About '06 Earnings Growth
Source: Hartford Courant

Permalink posted by armandn @ 7:18 AM
 

India Ready to Open Financial Services Market

India is willing to open its financial services market to overseas competition in return for greater access to developed markets for its service providers and people, Commerce Minister Kamal Nath said.

"Let them give us more access in transnational movement of services and transnational movement of people,'' Nath said in an interview yesterday about demands by the U.S. and the European Union for more access to India's banking and insurance markets. ``India is willing to move forward in a balanced way.''

India Ready to Open Financial Services Market
Source: Bloomberg

Permalink posted by armandn @ 7:17 AM
 

Baby Boomers Turning 60 Usher in Major Business, Social Changes; Redefine Retirement

The first of America's 78 million baby boomers, who turn 60 in January, will bring sweeping changes to business, careers and lifestyles. New Directions, a career/life transition firm for senior executives, is witnessing these changes first hand. Individuals they work closely with are redefining the very notion of retirement.

Baby Boomers Turning 60 Usher in Major Business, Social Changes; Redefine Retirement
Source: Insurance News Net

Permalink posted by armandn @ 7:15 AM
 

'Barely Boomers' Present Financial Services Industry With Unique Challenge

These individuals, who at ages 40 to 45 represent the youngest of the Baby Boom generation, have more sophisticated financial needs than their older brethren. A higher percentage of affluent Barely Boomers, for example, hold hedge funds, private equity and futures investments than the other Baby Boomer segments for each asset class, according to a new Spectrem Perspective(TM) report, "The Barely Boomers: How They Will Impact Future Financial Services," released today.

'Barely Boomers' Present Financial Services Industry With Unique Challenge
Source: Insurance News Net

Permalink posted by armandn @ 7:13 AM

Tuesday, December 13, 2005

 

Compromise sought in regulating fee advisers

Brokers who act as investment advisers should be regulated as legal fiduciaries, according to some proponents of uniform regulation.

In addition, the consumer organization that follows investor issues is suggesting that an independent regulatory body similar to the Public Company Accounting Oversight Board in Washington should be created to regulate investment advisers.

Compromise sought in regulating fee advisers
Source: Investment News (subscription required)

Permalink posted by armandn @ 1:01 PM
 

Fortune Magazine Names Aflac a Top Company for Women

After receiving numerous honors throughout 2005 as an employer of choice, Aflac ends the year with yet another accolade in this category. Fortune magazine named the leading insurer as one of the Top 50 Employers for Women, making it one of the most applauded companies recognized by the prestigious publication within the last 12 months. The announcement was published in the Career Opportunities feature section of
the magazine on December 12.

Fortune Magazine Names Aflac a Top Company for Women
Source: PR Newswire

Permalink posted by armandn @ 12:59 PM
 

Judges Grill SEC over Hedge Fund Rule

Judges on the U.S. Court of Appeals in Washington on Friday took lawyers for the Securities and Exchange Commission to task over some language included in the regulator's controversial hedge fund registration rule and it might be good news for the plaintiff. Phillip Goldstein, managing partner of the New York hedge fund Opportunity Partners, is suing to have the rule overturned. Goldstein claims the SEC is overstepping its jurisdictional boundaries by making it mandatory that hedge funds register like any other investment adviser. He also believes that the SEC misunderstood a law that places hedge funds under exemption in regards to registering and furthermore claims that the SEC made procedural mistakes when adopting the rule.

Judges Grill SEC over Hedge Fund Rule
Source: Financial-Planning.com

Permalink posted by armandn @ 12:57 PM
 

What should the federal government's role be in the financing of long-term care?

Half of all Americans who reach age 65 will need long-term care services. Most people who need long-term care services are women, because women live longer. People 80 and older are particularly likely to need long-term care services at some point in their lives. Long-term care is a vital service, and it is time we figured out a way to finance it adequately and deliver it more effectively. As the son of a mother with Alzheimer's disease, I know how difficult the work of long-term care can be, how physically demanding and how emotionally draining it is.

What should the federal government's role be in the financing of long-term care?
Source: Insurance News Net

Permalink posted by armandn @ 12:55 PM
 

Retirement planning critical for working women

There is some good news for women when it comes to aging:

On average, women are going to live six years longer than men.

But experts caution longer lives mean women, many of whom work fewer years and earn less than men, need to carefully plan ahead for retirement.

According to figures from the Centers for Disease Control and Prevention, the current life

Retirement planning critical for working women
Source: Biz Journals

Permalink posted by armandn @ 12:52 PM

Monday, December 12, 2005

 

China wants domestic insurers to list offshore

China wants its domestic insurance companies to list their shares offshore, said Wu Dingfu, chairman of the China Insurance Regulatory Commission. Wu also told a business conference that Beijing hopes foreign insurance companies will invest in China's liability, pension and agricultural insurance - areas that he described as the weak links of the local market.

'We want to see Chinese insurers go global, and we will encourage them to have overseas IPOs,' he said...

Forbes: China wants domestic insurers to list offshore - regulator

Permalink posted by markw @ 7:13 AM
 

Independents prefer indexed annuities

The most popular product among independent producers was an equity index annuity offered by Allianz Life Insurance Co. of North America in Minneapolis...

Investment News: Independents prefer indexed annuities (Subscription required)

Permalink posted by markw @ 7:11 AM
 

Hartford Financial Issues Outlook

Financial services and insurance company Hartford Financial Services Group Inc. on Monday issued a profit outlook for 2006 that brackets consensus estimates, but said an expense accrual may cause 2005 results to come in lower its projected range. The company also said management is recommending that the board boost common dividends for 2006 to about $500 million, up from about $350 million in 2005...

MSN: Hartford Financial Issues Outlook

Permalink posted by markw @ 7:10 AM
 

Annuity ''Living Benefits'' Provide Unique Value to Retirement-Minded Americans

The biggest change to variable annuity contracts in the last few years is the widespread availability of "living benefit" guarantees, which provide principal protection regardless of market performance -- a feature that cannot be obtained easily or inexpensively through alternative means. Today, more than 85 percent of all variable annuity contracts sold offer one or more living benefit guarantees...

BusinessWire: http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20051212005297&newsLang=en

Permalink posted by markw @ 7:06 AM

Friday, December 09, 2005

 

FSA To Review Effectiveness Of Mortgage, Insurance Regs

The Financial Services Authority plans to review the effectiveness of recently introduced rules on mortgages, insurance and advice. The advice rules, called the depolarization regime, require firms that provide independent advice on mutual funds and other investments, to let customers pay for the advice through a fee or through commission.

Compliance Reporter: FSA To Review Effectiveness Of Mortgage, Insurance Regs

Permalink posted by markw @ 8:52 AM
 

Coastal Property Owners Losing Insurance Coverage

Some Massachusetts residents who own coastal property will be losing their insurance coverage beginning in February. The state's second-largest commercial insurer of coastal properties is dropping coverage to 6,500 policyholders in southeastern Massachusetts and Cape Cod. Hingham Mutual Group said company reinsurance payments are rising by as much as 20 percent as a result of Gulf Coast hurricane damage...

NBC News 10: Coastal Property Owners Losing Insurance Coverage

Permalink posted by markw @ 8:39 AM
 

Insurance co. denies claim on stolen Wizard of Oz slippers

An insurance company said it won't pay a $1 million claim on one of the pairs of ruby slippers worn by Judy Garland in The Wizard of Oz. The slippers were stolen from the Judy Garland Museum in Grand Rapids in August. They're one of four pairs of slippers Garland wore in the 1939 movie.

AP: Insurance company denies claim on stolen Wizard of Oz slippers

Permalink posted by markw @ 8:36 AM
 

Terrorism Insurance and the P&C Industry

An article published by Standard Poor's Ratings Services stated that if Congress fails to renew or extend the Terrorism Risk Insurance Act (TRIA), the commercial lines property/casualty insurance sector will be placed on negative outlook...

Insurance Journal: Insurer Downgrades Possible Without Terrorism Insurance Renewal

Permalink posted by markw @ 8:35 AM
 

Broker launches open-source insurance

A US brokerage is offering insurance against the possibility of being sued for using non-commercial software. R J Kiln & Co, an international insurance group, is underwriting the policies which indemnify the user for up to $10m...

VNUnet: Broker launches open-source insurance

Permalink posted by markw @ 8:33 AM

Thursday, December 08, 2005

 

Sun Life Financial Launches New Program to Help Financial Consultants Educate Clients

Responding to the requests of financial consultants, Sun Life Financial has launched a CD-ROM to arm producers with the tools to educate their clients on the features and benefits of equity indexed annuities (EIA) as well as the importance of retirement planning.

Sun Life Financial Launches New Program to Help Financial Consultants Educate Clients
Source: Yahoo! Finance

Permalink posted by armandn @ 6:34 AM
 

No easy answer on whether retirees should hold life insurance

To keep or not to keep? That is the question many retirees face. Should they keep their life insurance policy or not? Unfortunately, experts say there are no easy answers.

"I'm afraid that the only meaningful answer is: 'It depends,'" says John Olsen, co-author of "The Annuity Advisor" and principal of Olsen Financial Group in Kirkwood, Mo. "Retirees are individuals, having individual situations and goals. Some retirees need life insurance. Others won't need any life insurance. And some may not need the life insurance they already own."

No easy answer on whether retirees should hold life insurance
Source: CBS MarketWatch

Permalink posted by armandn @ 6:32 AM
 

The Hartford Recognized by J.D. Power and Associates for Customer Service Excellence

The Hartford Financial Services Group, Inc., one of the nation's leading providers of investment and insurance products, announced today that it has been recognized for call center customer satisfaction excellence under the highly regarded J.D. Power and Associates Certified Call Center Program.

Through its direct Personal Lines business, which partners with the AARP organization to provide auto, home and other personal insurance products to AARP members, The Hartford handled over 10,000,000 customer calls, e-mails and faxes during 2004 from its sales and service centers based in Southington, Conn., Allentown, Pa., Santee, Calif. and Oklahoma City.

The Hartford Recognized by J.D. Power and Associates for Customer Service
Excellence
Source: PR Newswire

Permalink posted by armandn @ 6:31 AM
 

Nationwide's New Web Site Focuses on Customer Life Stages

Nationwide introduced a new look and feel for its main consumer web site, nationwide.com. The re-design represents the first phase of a multi-year overhaul, the company reports.

The prominent feature of the homepage plays off the company's 'life comes at you fast' advertising slogan - allowing visitors to see how Nationwide can help customers prepare for various stages in life and the financial challenges that come with them.

Nationwide's New Web Site Focuses on Customer Life Stages
Source: Insurance Networking News

Permalink posted by armandn @ 6:30 AM
 

Lawsuits To Cost Travelers $67 Million

The St. Paul Travelers Cos. is expected to pay $67.5 million for a previously announced settlement of shareholder litigation stemming from the firm's April 2004 merger, court documents show.

The company said in a federal filing Nov. 22 that it had agreed to settle the 15 lawsuits, proposed as class actions, but would not disclose the amount of the settlement.

Lawsuits To Cost Travelers $67 Million
Source: Hartford Courant

Permalink posted by armandn @ 6:28 AM

Wednesday, December 07, 2005

 

Life Reinsurance Market: A Tempered Perspective

This article is intended as an update to A.M. Best Co.'s Aug. 23, 2004, special report – “Consolidation Drives Capacity Crunch in North American Life Reinsurance Market.”

Over the past several years, the life reinsurance market has experienced a number of industry-transforming events, the most significant being the continued consolidation whereby the number of players has reduced to the point where the top five have a 75% market share.

Life Reinsurance Market: A Tempered Perspective
Source: A.M. Best (subscription required)

Permalink posted by armandn @ 11:00 AM
 

Equity Funds Remain Popular; Lifestyle, Lifecycle Funds Grow; 401k Plans

Equity funds remain popular; lifestyle, lifecycle funds grow; 401K PLANS
EACH YEAR, THE INVESTMENT COMPANY INSTITUTE AND THE Employee Benefit Research Institute pour over information gleaned from 16.3 million 401(k) participants in some 46,000 plans with $ 926 billion in assets. This represents about 45 percent of all 401(k) plan assets in the country.

The latest findings, released in late September, are:

* Consistent participation in 401(k) plans remains essential to successful saving; the average account balance today is $ 91,040.
* Equity investing remains popular in 401(k) plans at about 67 percent of assets, including equity holdings in balanced funds.

* Investment preferences are shifting to simpler options, namely lifestyle and lifecycle funds, which are included in the study's balanced-fund category.

* Loans are widely available, but are taken by only 19 percent of participants.

Equity Funds Remain Popular; Lifestyle, Lifecycle Funds Grow; 401k Plans
Source: Insurance News Net

Permalink posted by armandn @ 10:58 AM
 

Online-Only High-Yield Savings Accounts Have a Disruptive Impact on Customer Asset Loyalty; Pure Online Banking Customers Are Less Loyal to Financial

comScore Networks today released an analysis that revealed an increase in the number of non-loyal customers within the pure online segment of the banking industry. The study found the ease of use of the Internet for conducting financial transactions and the increased competition in the pure online space have fragmented the marketplace.

Online-Only High-Yield Savings Accounts Have a Disruptive Impact on Customer Asset Loyalty; Pure Online Banking Customers Are Less Loyal to Financial Institutions
Source: Insurance News Net

Permalink posted by armandn @ 10:57 AM
 

MIB Group's Policy Locator Service(TM) Helps Consumers Find Missing Life Insurance Policies

A lost or missing life insurance policy can create major problems when handling the affairs of a decedent. Hidden policy benefits may exist, but looking beyond the decedent's personal papers to the industry at large can be a daunting task. The Policy Locator Service(TM), provided by e-Services Corporation, a wholly-owned subsidiary of the MIB Group, Inc. may help the surviving spouse, next of kin or the decedent's legal representative track down unknown or lost life insurance policies.

MIB Group's Policy Locator Service(TM) Helps Consumers Find Missing Life Insurance Policies

Permalink posted by armandn @ 10:55 AM
 

John Hancock Financial Network Reports Recruiting Gains

John Hancock Financial Network* (JHFN) reported a 26 percent increase in recruiting results for the first half of 2005 compared to the same time period in 2004 and compared to a one percent increase for the time period in the industry overall.(1) JHFN also said that productivity of newly appointed financed representatives was up nearly 25 percent, measured by commissions, over the same time period.

John Hancock Financial Network Reports Recruiting Gains
Source: Yahoo! Finance

Permalink posted by armandn @ 10:54 AM

Tuesday, December 06, 2005

 

The Move To Brand Index Annuities As Securities

If the National Association of Securities Dealers expected lockstep adherence to its August 2005 advisory notice on broker-dealer sales of index annuities, the self-regulatory agency was wrong.

The Move To Brand Index Annuities As Securities
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 11:23 AM
 

Insurers Try To Keep Fingers On Fingerprints

The American Council of Life Insurers fears that the National Association of Insurance Commissioners is tightening its grip on an insurance producer fingerprint database project.

Insurers Try To Keep Fingers On Fingerprints
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 11:20 AM
 

Look Beyond The Traditional Annuity For Your Old Age

We can all expect to live for 20 years after retiring. Colin Langton advises on maximising your pension

There is a very good chance that your retirement will last 20 years so you need to make the right decisions when you retire. Many people assume that buying a traditional annuity with their personal pension or retirement annuity contract is the only option.

Look Beyond The Traditional Annuity For Your Old Age
Source: Insurance News Net

Permalink posted by armandn @ 11:18 AM
 

ING Employee Benefits Develops New Voluntary Disability Income Product

ING today announced a new disability income insurance product. Premier Disability Income insurance is designed to be utilized in the voluntary/worksite marketing arena. Disability income insurance is a benefit that provides enrolled employees with a partial income replacement should they become disabled and unable to work.

ING Employee Benefits Develops New Voluntary Disability Income Product
Source: Yahoo! Finance

Permalink posted by armandn @ 11:10 AM

Monday, December 05, 2005

 

Group Out to Raise Retirement Industry Profile

Members of the financial services industry, recognizing that millions of workers are about to shift from accumulating trillions of dollars of retirement assets to spending them, have formed the Retirement Income Industry Association to address the issues raised by the transition.

The organization, which will be based in Washington and which is expected to bring together firms from across the financial services landscape, is designed to raise the profile of retirement income planning and to create an open dialogue to help drive innovation.

Group Out to Raise Retirement Industry Profile
Source: Investment News (subscription required)

Permalink posted by armandn @ 9:57 AM
 

Small businesses offering more retirement options

Financial services firms are pushing retirement-planning services to small businesses, an area that has long lagged behind big companies in providing for their employees.

Financial firms, including Charles Schwab & Co., Fidelity Investments and Wachovia Corp., are cutting fees and simplifying procedures to attract more small businesses to set up employee-retirement accounts, ranging from Simple IRAs to 401(k)s. For employees, such moves mean retirement benefits are increasingly common at small businesses, a segment where retirement plans have long been a rarity.

Small businesses offering more retirement options
Source: Florida Sun-Sentinel

Permalink posted by armandn @ 9:53 AM
 

John Hancock Study Leads to Refined Underwriting Guidelines and Increased LTCI Approvals

John Hancock Life Insurance Company's Long Term Care Insurance (LTCI) department, following an extensive study of its cognitive screening results, has moderated its cognitive scoring guidelines.

The study compared all John Hancock LTCI claims with a primary or secondary diagnosis of cognition, underwritten since 1999, with the results of nearly 300,000 underwriting assessments completed during the period. The review showed John Hancock had applied scoring criteria conservatively and now is able to approve applications of those individuals who score in the lowest positive range but are not cognitively impaired.

John Hancock Study Leads to Refined Underwriting Guidelines and Increased LTCI Approvals
Source: PR Newswire

Permalink posted by armandn @ 9:51 AM
 

Manulife launches tool to help Canadian advisors pick universal life investment accounts

Manulife Financial has launched an asset allocation tool to help advisors across Canada choose universal life Simplicity Portfolio accounts that correspond to their client's personal risk profile.

This new tool will help advisors choose universal life investment
accounts based on their client's risk tolerance. A recent survey conducted
among advisors by Rogers Media, sponsored by Manulife Financial, found about half of advisors (49 per cent) are comfortable selecting and recommending investments within a universal life insurance policy and 40 per cent of those surveyed are interested in a sales process that would automatically recommend appropriate universal life accounts based on the client's risk profile.

Manulife launches tool to help Canadian advisors pick universal life investment accounts
Source: CNW Group

Permalink posted by armandn @ 9:48 AM
 

MassMutual Enhances Universal Life Portfolio With Two New Products

Massachusetts Mutual Life Insurance Company (MassMutual) introduced today two product portfolio enhancements, UL Guard(SM) (individual life) and SUL Guard(SM) (second-to-die life). Both products offer clients the ability to have a guaranteed death benefit, affordable premiums and the option to accumulate cash value.

MassMutual Enhances Universal Life Portfolio With Two New Products
Source: PR Newswire

Permalink posted by armandn @ 9:46 AM

Friday, December 02, 2005

 

Insurers Push for LTC Partnerships, but Reconciliation May Have to Wait

Life and health insurers continue to lobby an upcoming conference on House and Senate spending reconciliation bills to keep provisions expanding long-term care "partnership" programs, even as some observers note the odds that Congress will complete its conference reports by year end have grown increasingly slim.

Included in deficit-reduction packages moved last month by both the House and Senate, the provisions would reverse a decade-old federal prohibition on expansion of the programs as part of a spate of measures seeking to contain rapidly spiraling Medicaid costs. But program details vary significantly between the Senate and House plans, with most insurance industry groups expressing clear preference for the latter.

Insurers Push for LTC Partnerships, but Reconciliation May Have to Wait
Source: A.M. Best (subscription required)

Permalink posted by armandn @ 11:51 AM
 

AIG and Fired Chief Greenberg Cross Paths Again -- In China

American International Group Chief Executive Martin Sullivan made the rounds at a gathering of multinational CEOs a month ago, meeting Chinese officials -- some for the first time -- whom he must cultivate to build up the insurance giant's business here.

But across the room, a different American magnate was holding court, with a large group of Chinese officials he had known for decades. When they saw him, they warmly greeted their old friend -- AIG's longtime former chief, Maurice "Hank" Greenberg.

AIG and Fired Chief Greenberg Cross Paths Again -- In China
Source: Wall Street Journal (subscription required)

Permalink posted by armandn @ 11:48 AM
 

Insurers urged to assess climate change risks

--State treasurers and controllers from around the country urged major insurance companies Thursday to analyze and disclose their financial risk from climate change, warning that higher rates and loss of coverage are inevitable.

The officials, who oversee more than $800 billion in investments in the companies, said they are worried about escalating losses from hurricanes and other extreme weather. They say few insurers have examined the risks they face from climate change.

Insurers urged to assess climate change risks
Source: Boston.com

Permalink posted by armandn @ 11:43 AM
 

Your retirement Money: Changes Ahead

Along with all the other reforms debated or legislated this year - Social Security reform, bankruptcy reform, tax reform – add pension reform to the mix.

Among the major proposed changes by lawmakers are boosting employee participation rates and contributions to 401(k)s and imposing on companies tougher standards for the funding and transparency of their defined-benefit pension plans.

Your retirement Money: Changes Ahead
Source: CNN/Money

Permalink posted by armandn @ 11:41 AM
 

Manulife Investments receives marketing honour at 2005 Canadian Investment Awards

Manulife Investments was named winner of a 2005 Canadian Investment Marketing Award for its program to support its Simplicity(TM) product, at the 11th Annual Canadian Investment Awards announced in Toronto.

The marketing campaign for Simplicity, a sophisticated asset allocation
wrap program available for either mutual fund or segregated funds, was
recognized for its innovative approach to help advisors market both segregated
and mutual funds.

Manulife Investments receives marketing honour at 2005 Canadian Investment Awards
Source: CNW Group

Permalink posted by armandn @ 11:40 AM
 

MetLife Introduces Inflation Protection Feature for Its Guaranteed Immediate Income Program, a Fixed Income Annuity

To help individuals protect their purchasing power throughout retirement, Metropolitan Life Insurance Company (MetLife) announced today the introduction of an Inflation Protection feature, available under MetLife's Guaranteed Income Program(SM). Based on the Consumer Price Index for All Urban Consumers (CPI-U), this is a true inflation-adjusted immediate income annuity that can be offered in conjunction with a defined contribution plan, an IRA annuity or an annuity distribution option in an employer-sponsored pension plan.

MetLife Introduces Inflation Protection Feature for Its Guaranteed Immediate Income Program, a Fixed Income Annuity
Source: Yahoo! Finance

Permalink posted by armandn @ 11:38 AM

Thursday, December 01, 2005

 

Rider Shields Variable Life Assets

A unit of the Ameritas Acacia Companies is offering annuity-style asset protection for holders of variable universal life insurance policies.

The company, Ameritas Variable Life Insurance Company, Lincoln, Neb., is marketing 2 VUL asset-protection riders with its Overture Ovation! VUL policies.

Rider Shields Variable Life Assets
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 7:21 AM
 

Phoenix Withdrawal Benefit Can Protect Spouse

The Phoenix Companies Inc. has introduced a deferred variable annuity with a living benefit rider that can guarantee income for a surviving husband or wife.

Phoenix, Hartford, says the company's new Lifetime Guaranteed Minimum Withdrawal Benefit for 2 rider is the only deferred VA income guarantee rider that can switch benefits to a surviving spouse.

Phoenix Withdrawal Benefit Can Protect Spouse
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 7:19 AM
 

A New Approach to Savings Plans

Would Americans save more if the federal government streamlined the plethora of tax breaks for saving, each with its own eligibility rules?

President Bush, his tax-reform commission, some influential members of Congress, and a bevy of economists and tax experts think so. They are pushing to streamline the dozens of tax breaks that are intended to get Americans to save for retirement, health care and their children's education.

A New Approach to Savings Plans
Source: Wall Street Journal (subscription required)

Permalink posted by armandn @ 7:17 AM
 

ING Considering More Outsourcing

ING Group is considering moving some work to India but says if it does, no major impact is expected on jobs in Hartford.

Bloomberg News, citing Dow Jones Newswires, said Wednesday that the Dutch financial services company may shift some functions from U.S. units.

ING Considering More Outsourcing
Source: Hartford Courant

Permalink posted by armandn @ 7:16 AM
 

Rich Retirement Revisited

Agree with it or not, there's no denying that President George W. Bush's bid to partially privatize Social Security went over like a lead balloon earlier this year. The reason is simple: Americans are feeling more insecure about their retirement prospects than they have since before World War II.

Rich Retirement Revisited
Source: Forbes

Permalink posted by armandn @ 7:14 AM
 

John Hancock Long Term Care Insurance Selected by Southern Farm Bureau as LTCI Provider

John Hancock Long Term Care Insurance announced it has been selected as Southern Farm Bureau (SFB)'s provider of long term care insurance (LTCI). Through the agreement, approximately 4,300 SFB agents, located in 10 southeastern states will offer Hancock's Custom Care portfolio of LTCI products.

John Hancock Long Term Care Insurance Selected by Southern Farm Bureau as LTCI Provider
Source: PR Newswire

Permalink posted by armandn @ 7:13 AM
 

Beacon's Fixed Annuity Premium Study Reports Third Quarter's Best-Selling Products

MasterDex, an Allianz Life indexed annuity, was the quarter's top-selling product in the Beacon Research Fixed Annuity Premium Study for the fifth consecutive period. Three book value products -- New York Life's LifeStages/MainStay Single Premium Fixed Annuity(1), John Hancock's GPA Plus and Genworth Financial's Capital Provider Advantage -- were numbers two, three, and four, respectively. The ING US Secure Index annuity took fifth place. Third quarter sales were reported for some 182 products by 47 participating insurance companies.

Study Reports Third Quarter's Best-Selling Products
Source: Yahoo! Finance

Permalink posted by armandn @ 7:07 AM

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