All articles by LII editorial
LII editorial
Dai-ichi stakes its claim in Australia
Dai-ichi Mutual, Japans third largest life insurer, has bought a 29.7 percent stake in Australian life insurer TOWER Australia Group (TAG) from UK investment company Guinness Peat Group for A$376 million ($336 million) Of the total stake 14.9 percent has been acquired unconditionally, 5 percent is subject to regulatory approval and 9.8 percent subject to regulatory and shareholder approval. The deal with Dai-ichi brings with it a business cooperation agreement that TAGs chairman Rob Thomas said would result in the transfer of significant additional expertise to TAG
Delta Lloyd goes the extra mile
Ending a dispute dating back to 2006 Delta Lloyd Group (DLG), the Netherlands unit of UK insurer Aviva, has reached an agreement with Dutch consumer organisations Verliespolis and Woekerpolis on compensation for some 200,000 aggrieved unit linked policyholders which they represent The action by the consumer organisations was sparked by a finding by Netherlands regulator the Autoriteit Financile Markten in 2006 that information provided to consumers about certain Dutch insurance products, DLGs included, was inadequate and that a substantial portion of premiums were being absorbed by commissions and other costs. In March 2008 the Netherlands Financial Services Ombudsman made a recommendation on compensation for aggrieved policyholders that costs be limited to a maximum of 3.5 percent for a unit-linked policy without guarantees and a maximum of 4.5 percent for a policy with a guarantee of at least 3 percent on the net fund return.
Americans raid pension savings
Amid media comments such as swipe your way to the poorhouse, ReservePlus debit cards that enable people to borrow from their 401k pension savings are being actively marketed by Reserve Solutions, a unit of The Reserve, an asset management company that lays claim to having created the first money market fund in 1970.
UnitedHealthcare’s admission policy faces stiff opposition
The New York Insurance Department (NYID) has issued a request to health insurer UnitedHealthcare (United) to delay implementation of what New York State Superintendent of Insurance Eric R Dinallo termed a controversial new policy requiring hospitals to provide notice within 24 hours after a patient has been admitted According to the request issued on 30 November 2007, United will impose a penalty of up to 50 percent of normal payment if a hospital fails to notify United within 24 hours after a patients admission
A potent package from LV=
UK mutual life insurer LV has launched what it terms a revolutionary product providing home mortgage payments and living expenses protection Chris McFarlane, head of protection at LV, explained that the product is unique in that it provides mortgage protection for up to 25 years compared with 12 to 24 months in the case of most mortgage payment protection products. In addition to mortgage protection, LVs product offers cover against accident and sickness and, if required, unemployment
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Resolution tug of war heats up
Its a hotly debated question as Edinburgh-based Standard Life and Pearl Group, a UK closed life insurance fund manager, play a fast-changing game of offer and counter-offer for Resolution
Banks ride high on fixed annuities
Banks are doing a roaring trade and increasing their significance in the US fixed annuity market, reveals data compiled by independent research organisation Beacon Research Indicative of consumers quest for certainty in the current economic climate, fixed annuity sales via banks in the second quarter of 2008 soared 81.1 percent compared with the second quarter of 2007 to $7 billion, or almost a third of total sales of $24.6 billion. Second-quarter bank channel sales, which were 25.8 percent up compared with the first quarter, brought total sales via banks during the first half of 2008 to $12.6 billion, up 79.9 percent compared with the first half of 2007.
Buyout market could disappoint
Three years ago Legal & General and Prudential were the only insurers vying for the business of UK companies wanting to remove their defined benefit (DB) pension scheme liabilities Today there are more than a dozen insurers in the UK buyout market all lured by the prospect of major growth in a DB pensions market worth about £1 trillion ($2 trillion) Not all share their optimism, the most sobering view on the buyout markets prospects coming from Aon Consulting, a unit of insurance broker and risk management service provider Aon.
US industry bodies lock horns over STOLI
US industry bodies lock horns over STOLI US life settlement industry body the Life Insurance Settlement Association (LISA) has issued a strong condemnation of the American Council of Life Insurers (ACLI) stance on stranger-originated life insurance (STOLI)
UK payment protection reform ahead
Payment protection insurance has always been an easy-sell, highly profitable product for UK credit providers Too easy, believes the UKs Competition Commission which has proposed radical reforms that will open up the PPI market to currently marginalised alternate product providers Rocked by controversy, the UKs Payment Protection Insurance (PPI) market has seen hefty fines handed down by regulatory body the Financial Services Authority for inappropriate sales methods