All articles by LII editorial
LII editorial
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
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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