Insurance Newscast: Health Insurers Adapt to Changing Environment: February 22, 2012

INSURANCE NEWS MAJOR HEADLINES (Sponsored By)

Health Insurers Adapting to Changing Environment
OLDWICK, N.J.--(BUSINESS WIRE)--In 2011, health insurers faced numerous challenges related to the implementation of the Patient Protection and Affordable Care Act, new regulations and formidable economic conditions. Even with the emergence of these requirements and environmental difficulties, most carriers fared well and operating results remained strong due to a continued trend of low utilization. For 2012 and beyond, A.M. Best Co. expects margins may compress as health insurers are confronted with the full-year impact from the new rate-reasonableness requirement, and as utilization slowly rises.

India Ships Will Lose Insurance Due To Iran Sanctions, May Look To China
NEW DELHI/SINGAPORE, Feb 21 (Reuters) - Indian shipping firms will find it difficult to obtain replacement insurance coverage to continue importing Iranian crude oil after new European Union sanctions come into effect, industry sources said.

IIABNY: Independent Agents’ Opinion of Insurance Companies Unchanged
(DeWitt, New York, Feb. 21, 2012) — Independent insurance agents’ satisfaction with their insurance company partners has changed little in the last year, according to the results of a survey conducted by the Independent Insurance Agents & Brokers of New York. The state’s oldest insurance producer trade organization said that the ratings for personal insurance companies were flat compared to those in 2011, while the ratings for commercial insurance companies rose slightly.

Willis: Insurance Industry Response to Reputational Risk is Inadequate
London, UK, February 21, 2012 — A staggering 95 percent of major corporations have suffered at least one major reputational crisis in the last 20 years, but of these events, less than 10 percent are insurable, said Phil Ellis from Willis Group Holdings (NYSE: WSH), the global insurance broker. Speaking at a seminar on emerging risks in London this week, the CEO of Willis Global Solutions Consulting Group called for the insurance industry to innovate rapidly to address the glaring gap that exists for reputational risk cover.

A.M. Best Granted Approval to Establish in the Dubai International Financial Centre
LONDON--(BUSINESS WIRE)--A.M. Best is pleased to announce that it has obtained the necessary approvals to establish within the Dubai International Financial Centre in Dubai, UAE. The new office will operate as A.M. Best MENA, South & Central Asia, servicing clients throughout the region and developing new relationships to grow its insurance ratings franchise. Rating analytics will continue to be performed by teams based in London and Hong Kong.

Americans' Financial Optimism Hits Two-Year High
BLOOMINGTON, Ill., Feb. 21, 2012 /PRNewswire/ -- Americans are regaining confidence in their financial security. The COUNTRY Financial Security Index® increased for the third straight month. Higher savings rates and more positivity about debt repayment pushed the reading up one point to 65.8, the highest level since December 2009.

ING Study: Target Date Fund Investors More Confident About Reaching Their Retirement Goals
NEW YORK, Feb. 21, 2012 /PRNewswire/ -- A new study(1) from ING U.S. found that workplace retirement plan investors who used target date funds felt more secure about reaching their retirement goals and managing their portfolios than those who did not. Nearly three-quarters (71%) of target date investors indicated that target date funds made them feel more confident that they were making sound investment decisions.

New Study: Americans Pay More For Weather Catastrophes As Insurers Increasingly Shift Costs To Consumers And Taxpayers
The Consumer Federation of American (CFA) today released a new study with insurance industry data that found that insurance companies have significantly and methodically decreased their financial responsibility for weather catastrophes like hurricanes, tornados and floods in recent years, shifting much of the risk and costs for these events to consumers and taxpayers. The report is being released as insurers in eleven states have requested large homeowners’ insurance rate increases of 18 percent or more.

Response Of The Insurance Information Institute To Consumer Federation Catastrophe Insurance Study Ignores Huge Cost-Shift By Insurers To Taxpayers And Consumers
In a February 17, 2012 news release, the Insurance Information Institute (III) ignored the main findings of CFA’s recent study, which presents data demonstrating that insurers have significantly and methodically decreased their financial responsibility for weather catastrophes like hurricanes, tornados and floods in recent years, shifting much of the risk and costs for these events to consumers and taxpayers.[1]

Insight: Laws Leave Cruise-Ship Victims At Sea
(Reuters) - When Walter Henry Alderfer learned last month about the Costa Concordia shipwreck off Italy, it brought back bad memories.

Home Value Protection Insurance Expands Into Oklahoma
OKLAHOMA CITY--(BUSINESS WIRE)--Home Value Protection, the only insurance policy in the U.S. that protects homeowners from the devastating impact of declining home prices, becomes available to Oklahoma homeowners this week. With this policy, homeowners can shelter their investment in their home — the largest financial asset of most families — from the downward plunge in home prices that has plagued homeowners nationally.

When the Insurance Company Knocks You Down, One Personal Injury Law Firm is There to Pick You Up
LOS ANGELES, Feb. 20, 2012 /PRNewswire/ -- Stories abound of personal injury cases in which the insurance companies stooped to unthinkable levels to deny someone's rightful claim. Fortunately, there are also stories of average men and women who, finding themselves up against the insurance companies' dirty tricks, have gotten the help they need from top personal injury attorneys in Los Angeles.

Amalgamated Life Now Licensed in All 50 States and the District of Columbia
Amalgamated Life Insurance Company, a leading provider of life and health insurance, announced today that it recently became licensed in Florida and therefore, is now licensed in all 50 states and the District of Columbia to market its comprehensive suite of insurance products. For the well-respected provider of choice, this means the ability to meet the needs of more multi-state organizations, as well as those businesses, unions and funds in Florida where Amalgamated Life previously was not licensed.

Maritime Program Group Launches New Motor Truck Cargo Program
Maritime Program Group (MPG) announced the launch of their new exclusive Motor Truck Cargo program with North American Specialty Insurance Company (a SwissRe Company - A+ rated by A.M. Best). The new program is available in all states and focuses on smaller risks with 1-15 units, but has the ability to consider risks of all sizes.

HEALTHCARE/EMPLOYEE BENEFIT PLANS (Sponsored By)

Healthcare Solutions Team Partners with USCA to Provide Affordable Insurance for Members
LOMBARD, Ill., Feb. 21, 2012 /PRNewswire/ -- Healthcare Solutions Team (HST) announced that it has entered into an agreement to provide affordable insurance plans for the United States Chef Association (USCA), the only nationwide chef trade association.

Guardian Makes New Hire, Strengthens Voluntary Market Impact
NEW YORK, February 21, 2012 — The Guardian Life Insurance Company of America (Guardian), one of the nation’s largest mutual life insurers and a leading provider of employee benefits, announced that Michael Martocci has joined the Group Benefits management team as 2nd Vice President, Worksite Markets. This appointment follows several enhancements to Guardian’s worksite offerings which will further position the voluntary business for accelerated growth.

LEGAL/COMPLIANCE/REGULATION (Sponsored By)

Dallas Insurance Attorney Marc Fanning Offers Strategies for Battling Insurance Fraud
DALLAS, Feb. 20, 2012 /PRNewswire/ -- Noted insurance attorney Marc H. Fanning of Dallas will discuss the latest tips and strategies for identifying and preventing insurance fraud during a presentation scheduled for later this month at the 14th annual Texas Department of Insurance Fraud Conference.

AIA Statement On Korus Implementation
WASHINGTON, D.C., February 21, 2012 – David F. Snyder, vice president and associate general counsel at the American Insurance Association (AIA), today issued a statement on the United States Trade Representative’s (USTR) announcement regarding the March 15 implementation date of the U.S.-Korea Free Trade Agreement (KORUS). U.S. and Korean negotiators have just completed their review of each nation’s respective laws and regulations as necessary for KORUS to enter into force. In addition to the favorable tariff-related measures that will go into effect, enhanced regulatory transparency and access to Korea’s $580 billion services market will also become effective on March 15.

Willis Re Release an Own Risk and Solvency Assessment (ORSA) Under Solvency II Report: “What Is It, and Why Is It Good For You?”
London, UK, February 21, 2012 – Willis Re, the reinsurance arm of Willis Group Holdings (NYSE:WSH), the global insurance broker, have released a report discussing the function and contents of the Own Risk and Solvency Assessment (ORSA) under Solvency II. Sometimes described by its advocates as “the beating heart of Solvency II”, the ORSA is one of the most significant innovations introduced by the new European regulatory regime, but even after the latest guidelines issued by the European Insurance and Occupational Pensions Authority (EIOPA) in December, it apparently remains a challenge for many insurers of all sizes.

PERSONNEL ANNOUNCEMENTS (Sponsored By)

Locke Lord's New London Team in Place and Poised to Grow; Partners Elected to Leadership Positions on Executive Committee and Firm's Board of Directors
LONDON, Feb. 20, 2012 /PRNewswire-USNewswire/ -- Locke Lord, an international law firm with 650 lawyers, has opened a new and expanded London office with a well-respected team who bring added depth and breadth to the Firm's core practices. Among the lawyers on board in the first phase of expansion are Roger Abrahams as Head of the London Office; Stephen Finch who has been elected to Locke Lord's global Executive Committee, expanded to reflect the importance and growth of the Firm's UK presence; and Paula Howard who has been elected to Locke Lord's Board of Directors.

Jay M. Sheehan Joins Preferred Concepts to Lead Professional Liability Unit
NEW YORK--(BUSINESS WIRE)--Preferred Concepts, LLC (www.preferredconcepts.com), a leading national program administrator and specialty insurance broker, announces the addition of Jay M. Sheehan who will serve as Senior Vice President of Preferred Advantage, the firms’ specialty brokerage division.

Transamerica Employee Benefits Expands National Sales Leadership
LITTLE ROCK, Ark.--(BUSINESS WIRE)--Transamerica Employee Benefits (TEB) today announced the recent hiring of Scott Borden, Richard Kendrick and Dan Loveless as regional vice presidents of sales. They will report to Brad Ridnour, senior vice president and national sales director.

Kristi Ann Matus to Head Aetna’s Government Services Organization
HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE: AET) today announced the hiring of Kristi Ann Matus as executive vice president and head of Aetna Government Services, a newly-formed business unit comprised of Aetna’s Medicare, Medicaid, Public & Labor and Federal Employee Health Benefit Plan businesses. Matus joins Aetna from USAA, where she was executive vice president and chief financial officer. Matus will report to Mark T. Bertolini, Aetna chairman, CEO and president, and will serve on the company’s Executive Committee.

Richard Aneser Named Chief Marketing Officer of Lincoln Financial Distributors
PHILADELPHIA, February 21, 2012 – Lincoln Financial Distributors (LFD), the wholesale distribution subsidiary of Lincoln Financial Group (NYSE:LNC), today announced that Richard Aneser has joined the organization as Chief Marketing Officer, effective immediately. In this newly-created position, Aneser will play a critical role in driving business results through strategic marketing for Lincoln’s diversified portfolio of insurance and retirement products offered through financial advisors, institutions, insurance brokerages and consultants in the United States. He will report directly to LFD’s President and CEO Will Fuller.

INSURANCE TECHNOLOGY

RLI Selects Guidewire Solution for Claims Management
SAN MATEO, Calif.--(BUSINESS WIRE)--Guidewire Software, Inc. (NYSE: GWRE), a provider of core system software to Property/Casualty insurers, today announced that RLI Corp., a specialty property and casualty insurance company, has selected Guidewire ClaimCenter® as its new claims management system. RLI will implement ClaimCenter to support the management of its commercial and personal lines throughout all 50 United States. Guidewire Services and Guidewire PartnerConnect™ affiliate member, HCL Technologies will assist with the implementation project, working closely with RLI.

COUNTRY Financial Selects MajescoMastek’s STG Billing to Replace Legacy System and Streamline Billing Processes
NEW YORK--(BUSINESS WIRE)--MajescoMastek, the U.S. subsidiary of global technology solutions provider Mastek Limited (NSE: MASTEK), today announced that COUNTRY Financial, a Fortune 1000 insurance and financial services company based in Bloomington, Ill., has selected MajescoMastek’s STG Billing as the billing component for its core systems legacy replacement and modernization initiative. STG Billing will be used to streamline the billing processes for COUNTRY Financial’s portfolio of personal lines products which includes auto, home and agribusiness. COUNTRY Financial will also leverage MajescoMastek’s Insurance Content Manager (ICM), a toolkit designed for business users to maintain their own content for business rules, security access control and other configurable data.

Co-operative Insurance Companies Selects iPartners’ Insurance Scorecard
ATLANTA--(BUSINESS WIRE)--iPartners, the leading provider of Software as a Service (SaaS) business analytics solutions to the property & casualty (P&C) insurance industry, today announced that Vermont based Co-operative Insurance Companies (Co-op) has chosen iPartners’ Insurance Scorecard. The solution coupled with iPartners’ Software as a Service (SaaS) model provides a rapid and cost-effective delivery which will enable Co-op to achieve quick-to-value “in production” business intelligence (BI) and robust reporting capabilities.

Sapiens' Announces a New Release of the IDIT™ Software Suite
REHOVOT, Israel, February 21, 2012 /PRNewswire/ -- Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a global provider of innovative insurance software solutions, announces today the general availability of IDIT™ Software Suite Version 9. The new software release delivers numerous functional and technological benefits, enabling general insurance companies to improve product development and sales capabilities with features such as enhanced intermediary management, enhanced scheduling management of interfaces, enhanced workflow setup, and a wealth of additional features and technology enhancements.

Prolexic Unveils New DDoS Mitigation Service at the 2012 RSA Conference
HOLLYWOOD, FL — (February 21, 2012) — Prolexic Technologies, the global leader in Distributed Denial of Service (DDoS) mitigation services, today announced that it will introduce PLXconnect, a new Routed Mitigation Service, at the 2012 RSA Conference (Moscone Center, San Francisco, CA) on February 27, 2012.

INSURANCE MERGERS/ACQUISITIONS/CAPITALIZATION

Principal Global Investors Approved to Invest in Domestic Chinese Markets
DES MOINES, Iowa--(BUSINESS WIRE)--Principal Global Investors, LLC, a leading global asset manager and a member of the Principal Financial Group® (NYSE:PFG), announces it has been awarded the designation of Qualified Foreign Institutional Investor (QFII) by the China Securities Regulatory Commission. The designation allows the firm to invest in the local China A-share markets.

Kingsway Announces Acquisition of Specialty Insurance Business
TORONTO, Feb. 21, 2012 /PRNewswire/ - (TSX: KFS) (NYSE: KFS) Kingsway Financial Services Inc. ("Kingsway" or the "Company") and its subsidiary, 1347 Capital LLC, today announced that the Company has signed a definitive agreement to acquire the tangible and intangible assets and liabilities of a profitable specialty insurance business in a highly structured transaction for total consideration consisting of cash at closing, future contingent payments and common equity in the newly formed entity. Kingsway expects the business to be immediately accretive to operating earnings and cash flow.

Daily Quote:

"Nothing gives one person so much advantage over another as to remain cool and unruffled under all circumstances." -- Thomas Jefferson
""Opportunities multiply as they are seized." -- Sun Tzu
""Everything you want is just outside your comfort zone." - Robert Allen
"Most people never run far enough on their first wind, to find out if they've got a second. Give your dreams all you've got and you'll be amazed at the energy that comes out of you." -– William James
"Strength does not come from physical capacity. It comes from an indomitable will." - Mahatma Gandhi