All articles by LII editorial
LII editorial
Prestigious award for Zurich Financial’s CEO
Credited with the financial turnaround of Swiss composite insurer Zurich Financial Services (Zurich), James J Schiro, its CEO, has become the 13th recipient of the Insurance Leader of the Year award presented by the New York-based St Johns Universitys School of Risk Management, Insurance and Actuarial Sciences Speaking at the award ceremony, the schools executive director, Ellen Thrower, explained that the award recognises outstanding individuals whose leadership in insurance sets them apart from their peers This years distinguished honoree, Jim Schiro, truly exemplifies the kind of leadership this award was created to recognise, said Thrower
Targeting the bottom of the pyramid
Once shunned by life insurers, the billions of people who make up the worlds poor are increasingly being recognised as a viable and profitable marketing opportunity Though major product and distribution innovation is required, many insurers are proving themselves up to the challenge In his book The Fortune at the Bottom of the Pyramid, CK Prahalad, professor of corporate strategy at the University of Michigan, urged private enterprise to consider the potential market that the four billion people in the world who earn less than $2 per day represent
Storebrand’s landmark Nordic deal
In a cash deal valued at almost two-thirds more than its current shareholders equity, Norwegian insurer Storebrand Livsforsikring (Storebrand) is to acquire a number of Swedish bank Svenska Handelsbankens (Handelsbanken) life insurance and pensions units for NOK15.3 billion ($2.32 billion)
Another big profit shocker from AIG
Another quarter and more blood-letting from US insurer American International Group (AIG) which has reported a net loss of $5.36 billion for the three months to 30 June The third consecutive quarter of losses, the latest results brought net losses for the first half of 2008 to $13.16 billion and total net losses since the fourth quarter of 2007 to $18.45 billion AIG chairman and CEO Robert Willumstad said: Our second-quarter results were adversely affected by the severe conditions in the housing and credit markets and a very difficult investment environment.
Norwich Union adds a new dimension to equity release
In a variation on the theme of home equity release, UK insurer Norwich Union (NU) has launched a service that assists homeowners to realise a portion of the value of their homes by downsizing to a smaller property The service is available to people over 55 years old and is the subject of a six-month pilot programme in the West Midlands region The rationale for the service is to provide an alternative to equity release products that permit people to borrow against the value of their home without having to move
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A $3 trillion market in search of service
Excluding Japan, Asias investment management industry has an estimated $3 trillion in assets under management A significant market, yet one in which institutions do not have access to the level of asset management service and investment expertise enjoyed by institutions in the US, Europe and Japan, indicates a study by research and consulting firm Greenwich Associates Greenwich drew its conclusion from interviews with nearly 80 of the largest institutional investors in 11 Asian countries as part of its annual survey of insurers, pension funds, banks and other institutions relating to their choice of investment managers.
UK insurers advance down the customer satisfaction road
UK insurers are generally getting more things right than wrong in their relationship with customers, according to the Association of British Insurers (ABI) in its Customer Impact Survey Nevertheless, the industry bodys 2008 survey reveals room for improvement in certain areas The ABI survey is designed to provide insight into progress being made by insurers in the implementation of the Customer Impact Scheme launched in March 2006 with the objective of improving outcomes for customers
Resolution and Friends Provident come closer to tying the knot
Resolution and Friends Provident come closer to tying the knot Barring a last-minute counter-bid, the merger of the UKs largest specialist manager of in-force closed life insurance funds, Resolution Life, and 175-year-old insurer Friends Provident is set to occur in late November
ING and Axa reshuffle in Mexico
This is no better illustrated than by a deal that will see Netherlands bancassurer ING sell significant parts of its Mexican business, Seguros ING, to French insurer Axa for 1 billion ($1.48 billion) Viewed as non-core by ING, the parts of Seguros ING to be acquired by Axa include its life and health insurance lines, its health maintenance organisation and property, casualty and vehicle general insurance lines
US uninsured numbers rising
The median household income in the US increased from $47,845 in 2005 to $48,201 in 2006, leaving the average American family 0.7 percent better off in real terms, according to a report published by the US Census Bureau However, despite this improvement in income, the number of people without health insurance coverage rose from 44.8 million in 2005 to 47 million in 2006 As a proportion of the total population, this represented an increase from 15.3 percent to 15.8 percent.