European Systemic Risk Board : Insurance Glossary

The ESRB will be responsible for macro-prudential oversight of the EU’s financial system to prevent or lessen systemic risks, avoid situations of widespread financial distress, and ensure that the financial sector contributes to the development of the real economy and to growth.  Its objectives will be to tackle the fragmentation problem due to nationally based risk analysis, improve early warning mechanisms and translate risk assessments into action by the competent authorities.

Appointment : Duncan Szeto is Presidential Life’s new chief actuary

Presidential Life has named Duncan Szeto as the new chief actuary of its operating subsidiary, Presidential Life Insurance Company. Mr Szeto replaces Jerrold Scher. He joined Presidential Life in 2007 as vice president of financial modeling.

Prior to joining Presidential Life, Mr Szeto served in various actuarial roles at MetLife, Inviva and Prudential Financial. He also has several years of actuarial consulting and audit firm experience.

Donald Barnes, vice chairman of the board, CEO and president of Presidential Life, said: “Duncan’s actuarial expertise and leadership skills will be a valuable asset to the insurance company in 2010 and beyond.

“I am confident that Duncan will further complement the work of our leadership team in executing against our three-year strategic plan, particularly in our efforts to diversify our product portfolio, along with prudently managing our investment portfolio and strengthening our balance sheet.”

Source : Insurance News Net

Car insurance : What to Look For in an Auto Insurance Company

Auto insurance companies cover you and your passengers in the event of an accident. But it is up to you to decide the level of cover you will get. Will the damages to your property be covered by the company? Will all the passengers be covered or only your family? What if your child was driving your car?  What questions should you ask your auto insurance company when it comes to auto insurance?

Liability insurance or third party insurance is generally the lowest form of insurance offered by an auto insurance company. This is the basic insurance, if you are involved in an accident, and it is proven to be your fault, the auto insurance company will pay damages to the other party. The cover offered by the auto insurance company is usually set beforehand. These are the maximum amounts the auto insurance company will pay in case of an accident. You need to confirm with your auto insurance company what they will cover and what the limits are. You might be offered a very low premium by some auto insurance company only to realize that your cover is minimal and unrealistic.

An auto insurance company will also offer you a comprehensive insurance. In simple terms it means that if you are responsible for a collision, the insurance company will pay for the repair of the vehicle.

But it is not so simple; an auto insurance company will almost always have the final say on what amount will be paid out, so if it is cheaper to give you market value for the car, then they will. You must make sure that the insurance company is not in control of the market value of the car.

As with the third party insurance, the auto insurance company will almost certainly limit the amount that will be paid out, but in general terms, a comprehensive insurance will have higher limits.

A recreation vehicle needs its own insurance, a Recreation vehicle insurance is not the same as auto insurance. You should not assume that because your car is comprehensively insured, so is your recreation vehicle.

Medical (MedPay), Persona Injury protection (PIP) and no fault cover insurance will cover you and your passengers’ medical expenses in the event of a collision. The no fault cover means that the auto insurance company will pay regardless of who is at fault. This gives you the peace of mind that, at the very least, your family and friends are covered. PIP is often a minimum requirement in some countries; ask your auto insurance company what the requirements are.

Uninsured/Underinsured motorists’ coverage, also sometimes a minimum requirement will cover you if the person at fault is not insured or is underinsured. You must ask your auto insurance company what you will be charged in case of such a situation. Normally the auto insurance company should not charge you some extra premiums.

Most countries will require a certain level of cover, from full comprehensive car insurance to third party auto insurance. In most cases it is up to you, the driver, to ensure that your auto insurance company offers you the minimum required. In most cases the insurance company is under no obligation to instruct you of the requirements.

But of course, a good auto insurance company will, (should?), try its outmost to advise you on the best deal for you.

Life Insurance / Security Mutual : Life products expand

Security Mutual Life Insurance Company of New York has added features to its two Whole Life products making them more efficient as personal financing tools. The new features are particularly useful to life insurance planners who embrace the Infinite Banking, Be Your Own Banker and Bank on Yourself concepts. Planners can now combine a new Flexible Paid Up Additions Rider (PUAR) with a new Level Term Rider to create higher early cash values, which in turn can be accessed through favorable policy loan provisions. Security Mutual’s illustration software allows the life insurance planner to illustrate loans and the repayment schedules.

“Whole life sales are up at Security Mutual in part because of the strong cash value guarantees that come with whole life products,” according to George Kozol, Security Mutual’s Senior Marketing Officer. “Many consumers and business owners are attracted to the loan provisions that come with whole life products. Consumers can use life insurance loans to finance major items, such as auto purchases, college educations and weddings for their children and business owners can turn to life insurance loans to finance equipment purchases and to expand facilities.”

The cash value guarantees that come with whole life products make these financing options possible. “Life insurance advisors who subscribe to Infinite Banking, Be Your Own Banker and Bank on Yourself favor whole life products over other cash value products, such as Indexed or Variable Life, because of the guaranteed cash values and favorable loan provisions that come with Whole Life products,” said Kozol.

About Security Mutual Life Insurance Company of New York: Security Mutual’s mission is based on the same values upon which the company was founded in 1886—to provide sound, equitable and competitive financial protection against the financial hazards resulting from disability, retirement or premature death. Today Security Mutual is one of the leading mutual life insurance companies in the United States, with more than $2 billion in assets and more than $30 billion of life insurance in force. The company’s sound financials, high-quality asset portfolio and competitive position have been recognized by A.M. Best Company, the largest and longest established company devoted to issuing financial strength ratings about insurance organizations. Security Mutual is rated “A- (Excellent)”; (fourth highest on a 15-step rating scale) by A.M. Best.

A medium-sized company, Security Mutual enjoys the advantages of flexibility and responsiveness, both in the development of new products and in its relationships with its clients and field associates. The company employs more than 300 employees at its home office in Binghamton, New York, and distributes its products through a network of more than 5,000 independent agents located throughout the United States. Security Mutual is licensed in all 50 states, as well as in the District of Columbia, Puerto Rico and the U.S. Virgin Islands.

Source : Newswire

Analysis : AON Benfield’s report on global natural perils in August

Aon Benfield, the world’s premier reinsurance intermediary and capital advisor, today releases its latest Monthly Cat Recap report, which provides an analysis of global natural perils in August.

Published by the Impact Forecasting team, Aon Benfield’s catastrophe model development center of excellence, the report reveals that the month was dominated by historic floods in Pakistan destroying over 1.25 million homes, a massive landslide in China that killed at least 1,467 people and tropical storm activity in the Atlantic and the Western Pacific.

In the Americas, Hurricane Frank developed off the southern Mexico coastline and brought heavy rains and gusty winds, impacting at least 30,000 people, while Hurricane Earl developed in the Atlantic Ocean and affected parts of the northern Leeward Islands while glancing Puerto Rico. At least 187,000 people lost electricity and another 60,000 people were without water.

An active rainy season triggered widespread flooding and landslides in Nicaragua, leading to the deaths of at least 37 people and affecting 4,300 homes.  Also, over 25,000 wildfires blazed across parts of Bolivia during the month, which were ignited by residents who burned large tracts of land to increase areas of cultivation. The fires charred more than 1.5 million hectares (3.7 million acres) of land and forced the closure of 28 of the nation’s 39 airports due to reduced visibility.

In Europe, wildfires and peat bog fires continued to burn across parts of Russia during the first half of the month as the death toll reached 52. The fires damaged at least 3,000 homes, buildings and vehicles as economists noted that total economic losses could reach RUB448 billion (USD15 billion). Also, widespread flooding affected parts of Central Europe when at least 15 people were killed in the Czech Republic, Poland, Germany and Lithuania after consecutive days of heavy rainfall and strong thunderstorms.

In Asia, monsoonal rains continued to fall in Pakistan which led to additional flash flooding and landslides. At least 1,677 people were killed as an additional 2,605 were injured. In what was described as the worst flooding in Pakistan’s history, at least 1.25 million homes were damaged or destroyed and over 6.9 million hectares (17 million acres) of crop lands were submerged. Preliminary economic loss and reconstruction costs could approach PKR1.73 trillion (USD20 billion).  Monsoonal rains also destroyed at least 3,000 homes in Indonesia, 10,000 homes in Indian-held Kashmir and triggered a large mudslide in northern India killing 18 children.

In China, heavy rains across several sections of the country led to fresh rounds of flash flooding and landslides. Floods during the month in Gansu, Sichuan, Shaanxi and Yunnan provinces left at least 829 people dead along with damage to nearly 800,000 homes and over four million hectares (9.8 million acres) of cropland. Total economic losses were estimated at CNY108 billion (USD16.02 billion). The torrential rains also led to a series of massive landslides in northwest China’s Gansu Province that left at least 1,467 people dead, 2,000 injured and another 298 missing.

Tropical Storm Dianmu crossed the Philippines before making a final landfall in South Korea, destroying at least 3,000 homes and more than 159,000 hectares (393,000 acres) of farmland, while Tropical Storm Mindulle hit Vietnam, killing at least 10 people and injuring 64 more.

Steve Jakubowski, President of Impact Forecasting, said: “The historic floods in Pakistan and the continued flooding and landslides in China show the devastating consequences of an active monsoon season. We are also beginning to see the forecasted heightened tropical activity in the Atlantic Ocean, which will continue to be an area of focus as we approach the most active portion of the Atlantic hurricane season. With an active 2010 in terms of natural catastrophes, insurers and reinsurers need to continue to rely on catastrophe modeling to further enhance their understanding of natural catastrophe risks.”

Source : Aon Press Release

Life Insurance : online comparison for life insurance choice

The life insurance industry has gotten more competitive than ever before. There are all sorts of policies to choose from, and you can get a policy that suits your needs. To get the best deal, get quotes from as many different insurance companies as possible.

Thanks to the internet, you can easily access different quotes in little time from the comfort of your home or office. Always take the time to compare the features of each quote before making your final decision. Do not feel obligated to settle for any insurance company just because they have given you a quote. Insurance companies will ask for details such as your age, gender, height, health status, level of income and other such. Always provide only accurate information because this is what determines the kind of quote you get. It is only by comparing life insurance quotes from different insurance companies that you can know what the best deal is. It takes only a little of your time and rewards you with an appropriate plan for your needs.

Source : Official Wire

Life Insurance / Study : Working Parents with Minor Children Have More Life Insurance Coverage on Dad than on Mom

A MetLife study has found that a gender gap in life insurance coverage exists between working, married men and women with children under the age of 18. According to findings released today from MetLife’s 8^th Annual Study of Employee Benefits Trends, married men with minor children have, on average, five times their annual household income in life insurance coverage – if they have coverage at all. However, married women with minor children have, on average, only three times their annual household income in coverage. This gender gap is noteworthy as both men and women express equal concern about the financial impact of their pre-mature death on their families – six out of ten fathers and mothers say they are very concerned.

“Life insurance can help provide a family with substantial peace of mind. It is important to not only have coverage, but to make sure that coverage amounts are adequate. That is why it’s concerning to see the income of working mothers is not as adequately protected as that of their male counterparts,” says Bill Raczko, senior vice president, U.S. Business, MetLife.

“Many people overlook some important expenses that life insurance can help cover. For example, the death of a working parent may not only terminate an income source but also a family’s source of health insurance, tuition assistance, and other financial benefits. It can be helpful to consult with a life insurance professional to get the right amount of insurance, but the study found that only half as many mothers as fathers consult with anyone about their personal financial matters,” adds Steven Weisbart, Ph.D., CLU, senior vice president and chief economist, Insurance Information Institute.

Employers Can Help

Working, married women with children under the age of 18 are almost half as likely as working fathers to say their employers’ benefits communications effectively educate them on their options – 26% of mothers compared to 48% of fathers.

“Employers can improve their group life insurance benefits programs through three things: evaluation, enhancement, and employee education,” adds Raczko. “Year after year, MetLife’s Annual Employee Benefits Trends Study shows a strong correlation between effective benefits communications, improved benefits satisfaction and improved job satisfaction.”

The study also found that only 38% of married women with dependent children, compared to 56% of their male counterparts, are currently very satisfied with their workplace benefits.

Tips to Consider

Raczko offers the following tips for individuals to consider when evaluating their life insurance needs:

• Start at the Workplace: Many employers offer a group life program. Even if employees have to pay some or all of the premium themselves, obtaining coverage in the workplace has the advantages of group rates, limited or no medical underwriting, convenient payroll deduction and ease of enrollment.
• Supplement: Many employers allow their employees to purchase supplemental life insurance coverage at competitive group rates during the fall open enrollment season and often at additional times of the year. In addition to purchasing life insurance at work, individuals should also consider working with a financial advisor that can help them further understand the importance of both group and individual life insurance as part of their overall financial plan. MetLife’s Life Insurance Needs Calculator (www.metlife.com/straightstory) makes it easy for individuals to learn about the right amount of life insurance for their family’s needs based on their personal situations.
• Discuss with Your Spouse/Partner: Individuals should not only consider their own coverage needs, but also those of their spouse/partner.

Methodology

The 8th Annual MetLife Study of Employee Benefits Trends was conducted during the fourth quarter of 2009 and was fielded by GfK Custom Research North America. The employee sample comprised 1,305 interviews with full-time employees age 21 and over, at companies with a minimum of two employees, including 382 married men and women with children under the age of 18.

Source : Insurance News Net

Allianz appoints claims handling centre manager, Mark Carlyon-Smith

Allianz announced the appointment of Mark Carlyon-Smith as manager for the Company’s Woking claims handling centre.

Mark joined Allianz in 1990 and has held a variety of roles working in both personal injury and motor claims departments, most recently as claims manager for schemes business.

In his new role, Mark will be setting, monitoring and delivering the centre’s business plan and budget and delivering cost-effective and competitive claims settlements.

Mark said: “I am looking forward to continuing the strong customer focus within this centre and the department as a whole. We aim to be responsive to every customer and give them an effective and fair service – it is important to maintain the strong reputation that Allianz has built up.”

Health : French diet guru Montignac dies at 66

Michel Montignac, author of worldwide bestsellers on weight loss in the 1980s and 1990s, has died aged 66, French officials said Thursday.

Montignac, who died last weekend, developed a crash diet based on never eating “bad” carbohydrates at the same time as fats after suffering from obesity himself as a child and battling persistent weight gain.

After testing the principle of disassociating the two on himself, losing 30 pounds (13.6 kilogrammes) in less than three months, he wrote “Dine Out and Lose Weight” in 1986, a book that shot to the top of the best-seller list in France where it sold half a million copies.

The following year he released his most well-known book “Eat Yourself Slim and Stay Slim”, which sold millions of copies in 40 countries, according to his website.

His weight-loss recipe classifies carbohydrate-rich foods according to a glycemic index (GI), based on their effect on blood glucose levels after meals. “Bad” high-GI carbs may not be taken together with fats as Montignac believed these combinations would lead to fats in the food being stored as body fat.

France’s latest diet guru is Pierre Dukan, whose slimming plan that kicks off with a “protein only” attack phase is selling by the armload in bookshops.

Paris, Aug 26, 2010 (AFP)

The top 20 hotspots for home theft insurance claims revealed

People in London are the most likely in the UK to make a claim for theft on their home insurance policy, despite a Manchester postcode taking the top spot for the area where the highest proportion of theft claims are made, research from moneysupermarket.com found.

Chorlton-Cum-Hardy, Manchester, tops the postcode chart
London claims half of the top 20 postcodes

Britain’s number one comparison site analysed over 1.1 million home insurance enquiries made on the site in 2009 and found London held ten of the top 20 postcode districts most likely to have made a claim for theft, an increase of 100 per cent on the previous year. Close behind are Manchester, Leeds and Bristol, each of which have two postcode districts in the top 20. The research revealed Chorlton-Cum-Hardy, the suburban area of the city of Manchester (M21) takes the top spot overall in the UK, while Blackheath (SE3) and Hammersmith (W6) are the most ‘at-risk’ postcode districts in London for theft-related insurance claims. Other postcode districts with a high chance of claiming for theft and burglary include Finsbury Park in London (N4) as well as the affluent suburb of Roundhay in Leeds (LS8).*

Julie Owens, head of home insurance at moneysupermarket.com said: “Home is where the heart is and there’s no denying that having it burgled is an emotional and frightening experience. Major cities, like London and Manchester, and affluent areas are a target for criminals and the research highlights a broad mix of areas across the north and south of the UK so it is clear that no matter where you live, there is always a risk your home could become a victim of theft and it is therefore vital you have adequate home insurance cover in place, something many people still do not do.

“Properties classified as being in a ‘high-risk’ area – whether that be for crime, or something like flooding or subsidence for example, could affect the price of your insurance premiums. Unfortunately there is no escaping this and to make matters more complicated, there are no hard and fast rules which apply. Most insurers have a blanket approach when it comes to assessing postcode districts for home insurance premiums. This really needs to change; if houses are evaluated on a case by case basis it would mean homeowners received quotes at the best possible prices for their individual circumstances.

“With recent statistics reporting that last summer insurers handled almost 80,000 domestic burglary claims paying out £84 million,** homeowners need to be extra vigilant when it comes to security. You never know when an opportunistic thief may strike, so it’s crucial you ensure home contents insurance is fully up to date, and is at a high enough level to cover all belongings sufficiently.”

The 20 UK postcode districts most likely to claim for theft on their home insurance:

Results based on 1.13 million home insurance quotes on moneysupermarket.com for twelve months (full year 2009)
Percentage related to households affected by theft or burglary in that postcode district

moneysupermarket.com’s top tips to keep your home safe from thieves

Keep all items of value away from windows and out of sight from opportunistic thieves
Ensure you lock all windows and doors before leaving the house
Regularly check the state of your locks, and where necessary replace older, weaker ones with new locks. Five-lever mortise locks are recommended for external doors while windows should ideally have two bolt locks.
Don’t leave high value items lying around the house, lock them away safely
Install a good home security system
When leaving the house for a lengthy period of time, put a timer on your light switches to give the impression that you are at home.
If you are away, remember to cancel newspaper and milk deliveries and ask someone you can trust to open and close the curtains and collect mail.
Don’t leave keys in obvious places such as under a doormat. Also beware of ‘hook n crook’ thefts – where keys are left so close to a door that a burglar can simply hook them through a letterbox and open the door.
Install security lighting – illuminate your visitors for their safety as well as your own. Unwelcome visitors are less likely to loiter if they’re ‘in the spotlight’.

Health / Study : Inequalities in early deaths rising in Britain

Inequalities in early deaths between different parts of Britain have nearly surpassed those seen shortly before the economic crash of 1929 and the ensuing depression, a new study said Friday.

“Inequalities continued to rise steadily during the first decade of the 21st century… and could become worse,” warned the study, published in the British Medical Journal’s online edition.

The study said the divide had “persisted over many years and recent government efforts to reduce them have not had any great impact as yet. “The gap in health inequalities has widened over the past 10 years, reflecting widening inequality in wealth and income,” it added.

Researchers from the universities of Sheffield and Bristol built on previous studies of socioeconomic differences in mortality, using updated population estimates and a new more, accurate way of measuring poverty.

They analysed mortality data for England, Wales and Scotland using statistics for the entire population aged under 75 from 1990 to 2007 and the whole population under 65 from 1921-39, 1950-53, 1959-63, 1969-73 and 1981-2007.

The study found that “geographical inequalities in age-sex standardised rates of mortality below age 75 have increased every two years from 1990-1 to 2006-7 without exception.”

The poorest people were 1.6 times more likely to die prematurely than the most affluent people in 1990-1. But by 2006-7, the worst off people were twice as likely to die before the richest. And despite a small reduction in inequalities around 2001, the trend was short-lived and inequalities for people up to 75 years old are now the highest ever reported since at least 1990.

“Although life expectancy for all people is increasing, the gap between the best and worst districts is continuing to increase,” the researchers concluded. “The economic crash of 2008 might precede even greater inequalities in mortality between areas in Britain.”

Paris, July 23, 2010 (AFP)

AIDS / Vienna conference : Activists lobby for ‘Robin Hood’ levy to raise funds

A “Robin Hood” tax of just a fraction of a percent on financial transactions could smash the funding crisis gripping the war on AIDS, activists said at the world AIDS forum here on Wednesday.

“Robin Hood taxes are the answer to the question that everyone at this conference has been asking, which is: ‘How can we keep financing a great scale-up in services against HIV/AIDS?’,” Khalil Elouardighi of Coalition PLUS, a group of anti-AIDS organisations, told journalists.

A micro-tax of just 0.005 percent on all financial transactions would raise some 33 billion dollars (25.75 billion euros) per year worldwide, he said. “It acts like an invisible micro withdrawal. Knowing that 97 percent of transactions are of a speculative nature, there will be no consequence on the real economy,” noted Philippe Douste-Blazy, UN under secretary general for innovative financing for development.

The time was right to push for the tax, ahead of a summit on Millennium Development Goals in September and a G20 meeting in November, campaigners said. “It is up to us to explain to the heads of state that they do not have any other solution because we know that it only depends on political will,” said Douste-Blazy, a former French foreign minister.

The tax was technically feasible but the key was now to make sure the money was used for development, rather than to reimburse state debt or rescue banks, he said.

His own organisation, UNITAID, has blazed the trail with a small tax on airline tickets, implemented by France and 11 other countries, that has provided drugs to prevent HIV infections from mothers to their babies. “Global commitments, particularly around HIV, are really first in line when it comes to what the right beneficiaries would be for that financial transaction tax,” Asia Russell of the US advocacy group HealthGAP noted.

The Robin Hood tax would not make countries any less subject to aid contributions however, warned Christoph Benn of the Global Fund to fight AIDS, Tuberculosis and Malaria. “We are not taking away any pressure from governments to provide additional resources from their development budgets: that is a given, that is our first request, that they increase their contributions.”

The Global Fund is seeking 17 billion dollars in pledges from 2011 to 2013.

Funding by rich economies for poor countries fighting HIV/AIDS fell back slightly last year, to 7.6 billion dollars after 7.7 billion dollars in 2008, as a result of the economic recession, according to an analysis issued in Vienna by the Kaiser Family Foundation and UNAIDS.

The decline brought to a close six successive years of double digit increases. In 2002 funding for anti-HIV drugs and other initiatives was a mere 1.2 billion.

The report said that for poorer countries — “low- and middle-income” economies — 23.6 billion dollars was needed from all sources for 2009. The gap in funding last year was 7.7 billion dollars.

For 2010, 25 billion dollars has to be mustered for fighting AIDS in poorer countries, according to a previous UNAIDS estimate. So far, there is a funding shortfall of 11.3 billion, according to an analysis published this month in the US journal Science.

The 18th International AIDS Conference ends on Friday after six days.

Vienna, July 21, 2010 (AFP)

A new guaranteed income option for the at-retirement market at Aegon

Following its recent announcements to focus on the UK at-retirement market as a key strategic priority, Aegon today announces the launch of a secure income option on its Investment Control bond.

The secure income option on the Investment Control bond provides customers with the security of a guaranteed income of 5% of their original investment over 20 years, no matter what happens to investment performance. It also provides the potential for capital growth. Each year on the bond anniversary, if the value of the bond grows to more than the original investment, the growth is locked in and returned to the customer at the end of the term. The growth is taxed at the customer’s marginal rate.

In addition, the Investment Control with secure income option allows customers to cover their own life and up to three other people, by offering a valuable inheritance benefit of the highest of 100.1% of the cash-in value, the original investment less any income taken, or the highest recorded fund value (recorded on the anniversary) less any income taken. In order to help reduce any future inheritance tax liability, the bond can also be placed in trust.

David Aaron, Individual Marketing Communications Manager at Aegon said: ‘The UK at retirement market is core to the future business strategy of Aegon. With the new secure income option on our Investment Control bond we are meeting the needs of our customers who are looking for security and peace of mind with their investment. Recent market volatility is likely to make investors even more cautious, especially those approaching or in retirement, and therefore make them even more likely to look for products offering guaranteed levels of income.’

Retirement funds : Nearly half of baby boomers are likely to run short of money after 10 years

If you’re a baby boomer, the odds are high you’ll exhaust your retirement savings after 10 or 20 years of retirement, according to the latest Retirement Readiness Rating report released last week by the Employee Benefit Research Institute.

Nearly half of older boomers _ those now aged 56 to 62 _ and some 44 percent of younger boomers_aged 46 to 55 now_are at risk of not having sufficient income to pay for basic retirement expenses and uninsured medical expenses, according to the study.

The study, which assumed that boomers would retire at age 65, also found that lower-income retirees are most likely to run out of money after 10 and certainly 20 years of retirement, while higher-income retirees are least likely to run out of money.

To wit: 41 percent of those in those lowest income quartile are likely to run short of money after 10 years of retirement, and 57 percent after 20 years. Meanwhile, just 5 percent of those in the highest income quartile will run out of money after 10 years, and 13 percent after 20 years.

So, what to make of this study?

In reality, most Americans don’t run out of money; they run out of lifestyle. As they age and spend down their assets, they typically reduce their living standard. “For the most part, people do not completely run out of money when our software says they will,” said Stephen L. Deschenes, senior vice president and general manager for the annuities division of Sun Life Financial’s U.S. operation. “They do not run full-speed like Wile E. Coyote off the cliff and only then realize that they are out of terra firma. Rather, they take action either to spend less or work more or some combination to forestall running out,” he said.

Other research finds a high likelihood that Americans will be forced to spend less. After factoring in health-care and long-term-care costs, the National Retirement Risk Index, produced by Boston College’s Center for Retirement Research, finds that some 65 percent of American households are at risk of not having enough money to maintain their living standard in retirement, according to the index.

A point to consider about the retirement readiness study: It assumes boomers will retire at age 65. That’s not likely to happen. Most boomers, assuming good health, likely will work past age 65, according to Sun Life Financial’s Unretirement Index.

work longer, economic crisis,

There was also a sharp rise in workers who said they will need to work longer than planned because of the economic crisis, according to Sun Life. Sixty-five percent said they will have to work more than one year longer, compared to 54 percent in the last index. And 27 percent said they will have to work more than five years longer, compared to 24 percent in the last index.

Why are they working longer? To earn enough money to live well and maintain their standard of living, according to Sun Life.

But the bottom line from all these studies: Saving more and perhaps reducing your standard of living now might be the only way to be reasonably certain you’ll enjoy any standard of living later on.

According to the Employee Benefit Research Institute, to improve the chances of being one of the nine in 10 households that maintains its standard of living in retirement, younger boomers in the lowest income quartiles will have to save, on top of what they already save, an additional 25 percent of compensation every year, while those in the in the third income quartile will have to save an additional 15 percent per year. Those in the highest income quartile catch a break and don’t have to save any more than they already do.

The story is a little better for older boomers, but not much. Those in the lowest income quartile have to save an additional 25 percent per year, while those in the second income quartile need only save 15 percent more and those in the third income quartile need save just under 5 percent more. As with early boomers, late boomers in the highest income quartile catch a break again. They don’t have to up their savings to have a 90 percent probability of maintain their standard of living in retirement.

Justice : AIG to pay 725 million dollars to settle US fraud lawsuit

US insurance giant AIG has agreed to pay 725 million dollars to settle allegations of market fraud brought by three Ohio pension funds, the state’s attorney general said Friday.

“The settlement resolves allegations of AIG’s wide-ranging fraud from October 1999 to April 2005 involving anti-competitive market division, accounting violations and stock price manipulation,” the office of attorney general Richard Cordray said in a statement.

Cordray declared the class-action settlement a victory for the “teachers, firefighters, police officers, and public employees,” who were “harmed by AIG’s misconduct.”

The company was accused of accounting fraud designed to boost AIG’s reserves to cover claims, a bid-rigging scheme with insurance brokers and executives ordering traders to inflate AIG’s stock price.

Cordray said it was the 10th-largest securities class-action settlement in US history. It is the latest blow to the beleaguered firm, which needed nearly 70 billion dollars in government bailouts to stay afloat after the subprime mortgage crisis.

Earlier this week Harvey Golub resigned as chairman of the board, amid rumors about discord among top executives at the firm.

If the fine wins court approval it will mean AIG investors are entitled to slightly more than one billion dollars in compensation, including settlements with AIG partners General Re — owned by billionaire Warren Buffett — PricewaterhouseCoopers and former AIG chief executive Maurice “Hank” Greenberg, the statement said.

AIG will have to pay 175 million dollars of the settlement within 10 days of court approval. A further 550 million dollars must be paid from the proceeds of one or more stock offerings.

Shares in AIG fell 4.65 percent on Friday, amid a wider stock market sell-off. In after-hours trading they pared some of the losses.

It is the latest in a string of settlements agreed by the firm.

In 2008 AIG and four of its former senior executives agreed to pay 115 million dollars to settle fraud claims from the Teachers’ Retirement System of Louisiana.

In 2006 AIG agreed to pay 1.6 billion dollars to settle a probe into allegations that it used misleading accounting to inflate its results.

That settlement, reached between the insurance giant and New York state Attorney General Eliot Spitzer, the Securities and Exchange Commission and the New York State Insurance Department, was at the time one of the largest corporate penalties ever.

Washington, July 16, 2010 (AFP)

Health : Experts urge US government to restrict drug Avandia

A majority of members of a key advisory committee recommended Wednesday that the US government allow diabetes drug Avandia to stay on the market with greater restrictions on its sale.

A majority of the panel’s members agreed that the drug does increase the risk of heart problems, but only 12 members of the 33-member expert panel voted to remove GlaxoSmithKline’s one-time blockbuster medication from the market.

A bloc of 20 members voted that the drug should stay on the market, with 17 urging greater restrictions such as revisions to the label, special warnings for at-risk patients or requirements for additional physician and patient education. One expert abstained from the vote.

The vote came at the end of a second day of hearings about the side-effects associated with the drug, which generated some 1.2 billion dollars in 2009 for Britain’s largest pharmaceutical firm.

Avandia has long been associated with an increased risk of heart attack and stroke, and a 2007 Food and Drug Administration study linking the medication to serious health concerns prompted authorities to slap a warning on it.

The panel voting Wednesday was convened at the FDA’s request, but can offer only an advisory opinion that the US regulatory agency is not bound to follow. “We look at the (vote) numbers but it’s not the only thing that the FDA is taking into account,” FDA spokeswoman Karen Riley told AFP.

Earlier Wednesday, the panel voted on a series of propositions about Avandia, including whether it was linked to heart problems and whether it was more likely to produce cardiovascular ailments than other similar drugs on the market.

Nineteen members of the panel endorsed a finding that the drug, which helps diabetics control their blood sugar, does increase the risk of heart attack or stroke in users.

Washington, July 14, 2010 (AFP)

AIG names Steve Miller chairman, Golub Harvey resigns

American International Group Inc named director Robert “Steve” Miller as its new chairman, after Harvey Golub resigned amid tensions with Chief Executive Robert Benmosche.

Benmosche told the board that he “believes our working relationship as Chairman and CEO to be ineffective and unsustainable,” Golub wrote in a letter to AIG director George Miles. “At this point, I view asking the board to choose between us would be an abdication of my responsibility to lead,” Golub said. “Consequently, I’m resigning for the simple reason I believe it is easier to replace a chairman than a CEO.”

Miller, 68, was elected to the board in June last year. Miller is chairman of MidOcean Partners. He retired as executive chairman of Delphi Corp in 2009.

Separately, AIG decided it will proceed with a plan to take its Asian life insurance business public later this year, the Wall Street Journal reported.

AIG’s board was scheduled to meet on Wednesday to consider the future of the unit, American International Assurance, and a public float was seen as the most likely outcome, sources told Reuters previously. The Journal said AIG directors discussed the next steps for a Hong Kong listing of the unit.

AIG declined to comment on the Journal report.

Health insurance : Health secretary Kathleen Sebelius urges insurers to plug gap

Health Secretary Kathleen Sebelius, who has bashed insurers over rate increases, is seeking their help in making medical coverage accessible for more patients in the years before major reforms take effect.

Sebelius, in an interview with Reuters, said she is pushing companies to help people gain insurance in the gap between now and 2014. That is when the healthcare law President Barack Obama signed in March mandates extensive changes. Sebelius struck a cooperative tone after publicly chastising insurers for high rate hikes and after repeatedly calling them to the White House for highly publicized talks.

A more congenial relationship with insurers could help keep the major overhaul of the healthcare system on track and loosen strained relations between Democrats and big business ahead of the November midterm elections.

The goal in the next few years is to “stabilize the private sector to not only encourage those who have insurance today to keep it, but to hopefully bring additional folks back into the market,” Sebelius said earlier this week. She talked with Reuters after speaking at a discussion on drug development.

Health insurers, which include WellPoint Inc, UnitedHealth Group Inc, Cigna Corp and Aetna Inc, fought the healthcare law, which hits the industry with tighter regulation, higher taxes and caps on profits.

Now, the Obama administration is promising to keep a close eye on rates but also seeking to work with insurers to make the law successful. Sebelius, a former insurance commissioner and governor of Kansas, said her approach is gaining traction. She said one insurer recently reached out to small businesses and signed up 500 new customers from companies that had not been aware they were eligible for tax credits. “That’s exactly the kind of strategy I’m hoping will take hold,” she said.

Sebelius said she has argued to insurers in recent weeks that practices that shut out patients or businesses with high rates are harmful to consumers as well as the companies. “Some of those strategies I think are not particularly good business models. If they lose more and more market share as we move toward 2014, it’s not really good for them,” she said.

Roughly 46 million people in the United States lacked health insurance in 2008, according to the U.S. Census Bureau. Experts say many have lost coverage since then in the economic recession. The new healthcare law includes measures aimed at “stopping the erosion of the private market” before 2014, Sebelius said.

Employers can get financial help to keep early retirees covered, and small businesses can receive tax credits to defray insurance costs, she said. People denied coverage for serious medical problems can enroll in high-risk insurance pools set up as a temporary option.

Broader changes in 2014 are expected to extend coverage to more than 30 million Americans.

In past months Sebelius attacked big premium increases, and Obama warned companies not to impose unjustifiable rate hikes, adding to friction between the administration and industry. Sebelius said she now hopes insurers will work with the administration. “I’m optimistic there is a real potential to do some important work over the next couple years in a collaborative fashion,” she said.

Insurers said despite past opposition they are now committed to making the healthcare law successful. “We are totally focused on implementation and making the legislation work,” Karen Ignagni, head of the industry group America’s Health Insurance Plans, told reporters.

Companies are aiming to boost coverage during the transition period but are pressing for more efforts to control rising medical costs that push premiums higher, said Robert Zirkelbach, a spokesman for the industry group.

State insurance commissioners also are advocating a gradual shift to a requirement that companies spend more of each dollar in premiums for the benefit of patients, he said. Otherwise, they worry insurers will leave the individual market.

“It’s important that new requirements be structured in a way that doesn’t cause significant disruption for people purchasing coverage on their own, particularly in the years leading up to 2014,” Zirkelbach said.

Europe imposes caps on banker bonuses, insurance companies could be concerned

The European Parliament sounded the death knell for unrestricted bonuses for some bankers and traders in Europe on Wednesday when it approved limits due to come into force in January.

The action was a response to public outrage in the face of bonuses widely seen as excessive during the global financial crisis. But the banking industry has warned that the restrictions could hurt Europe’s competitiveness to the benefit of rival financial centres from Wall Street to Hong Kong.

Pascal Canfin, a Green MP from France, said that the caps on bonuses imposed by the European Parliament were “the most ambitious in the world” and would end “extravagant bonuses synonymous with extravagant risks.”

The new EU rules will mean a far lower proportion of cash in the bonus, which would be much less payable upfront. Remaining sums would be “contingent” on subsequent company performance as well as directly linked to salaries.

From January 2011, 60 percent of bonuses should be variable and for future payment only, with at least 40 percent of such revenue locked away for three years, according to the legislative text.
Cash payments are capped at up to 30 percent of the total bonus.

The European Parliament voted 594-24 in favour of the legislation, which followed a deal between EU members states and lawmakers on June 30. “Financial experts agree that a high-risk, short-term bonus culture, combined with a lack of capital, were at the heart of the global financial  crisis in 2008,” said British Labour European MP Arlene McCarthy. “Despite claims by the banks that they have learned lessons, they have actually increased salaries and bonuses as a proportion of revenues,” she said. “When governments are cutting budgets and people suffer reduced services and support, we cannot accept a banking culture that puts pay and perks above sustaining capital and credit for Europe’s economic recovery.”

But the banking community has warned that the measures could reduce the competitiveness of the European financial sector. “We believe the agreement goes too far, because at the international level, there are already some principles” in the form of recommendations made by the Financial Stability Board, Guido Ravoet, secretary-general of the European Banking Federation, said recently. “We believe that this is not up to public authorities to put in place figures, percentages,” said Ravoet, who advocates self-regulation by banks. “If the recommendations aren’t followed at the international level, financial centres like New York, Singapore and Hong Kong will benefit.”

The EU move follows a series of national initiatives targeting financial sector pay.

In Britain, a newly-introduced 50-percent tax rate already applies to all bank employee bonuses above 25,000 pounds (30,000 euros, 37,800 dollars). Chief executives at Britain’s five biggest banks — Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Standard Chartered — said in March they had spurned bonuses for last year worth millions of pounds.

Top managers at Dutch banks and insurance companies may also soon become liable to pay back “unreasonable” bonuses under legal amendments proposed by the government.

Across the Atlantic, US authorities last month issued new banking guidelines — though no specific caps — aimed at countering excessive pay and bonus practices.

Strasbourg, July 7, 2010 (AFP)

CEIOPS elected a new Vice-Chair and his Managing Board members

The Committee of Insurance and Occupational Pensions Supervisors (CEIOPS) held elections last friday to appoint two new Managing Board members and is pleased to announce that the following persons have been elected: Bill Galvin (United Kingdom, TPR) and Damian Jaworski (Poland, KNF).

On the same occasion, Joanne Kellermann (Netherlands, DNB) was elected as CEIOPS Vice-Chair for the remaining duration of her mandate.

Following these elections, the composition of CEIOPS Managing Board is now as follows:
- Gabriel Bernardino, Chair (Portugal, ISP)
- Joanne Kellermann , Vice-Chair (Netherlands, DNB)
- Bill Galvin (United Kingdom, TPR)
- Damian Jaworski (Poland, KNF)
- Flavia Mazzarella (Italy, ISVAP)
- Kaido Tropp (Estonia, FSA)

CEIOPS Managing Board is responsible, among other things, for implementing the resolutions taken by insurance and occupational pensions supervisors; preparing the budget for each accounting year; delivering the Annual Report and reporting to the EU political institutions.

Health insurance : Premiums for uninsured americans won’t be cheap

President Barack Obama’s new health coverage for uninsured Americans with health problems won’t be cheap, premiums averaging $300 to $600 a month in the largest states, according to a government website that went live Thursday.

From cheaper to most expensive, premiums will range from a $140 a month to as much as $900, Richard Popper, deputy director of a new insurance office at the federal Health and Human Services department, said Wednesday. The range is so wide because premiums will be keyed to standard individual health insurance rates in each state, which can differ dramatically because of medical costs and the scope of coverage. Also, older people will pay more. “There are going to be meaningful premiums that are going to be required to stay in this plan … in the hundreds of dollars,” said Popper, with the Office of Consumer Information and Insurance Oversight.

Estimates on HealthCare.gov show premiums for a 50-year-old in Florida will be $552 to $675 a month; in New York the cost will average from $400 to $600; in Texas it’s $491 to $600, and in Pennsylvania $283 on average. In many states, consumers can start enrolling immediately. Despite the cost, consumer advocates are urging uninsured people with health problems to sign up soon, because they cannot be turned away for medical reasons. Family members may be able to help with premiums, which are competitive with rates paid by people who buy their coverage directly from an insurance company.

The Pre-Existing Condition Insurance Plan will start taking applications in every state by the end of the month. Coverage will be available as early as August 1.

Consumers can go to the website to find out about the program, as well as other coverage options in their state, including government plans such as Medicaid, and private insurance. Starting this fall, the site will feature easy price and coverage comparisons among private plans. The new health care law called for the site, as a way to offer Americans one-stop shopping for coverage.

Twenty-nine states and Washington, D.C., will administer their own plans for people with pre-existing conditions. The federal government will run the program in the remaining 21 states.

The coverage is a stopgap for vulnerable people locked out of the private insurance market because of medical problems. It’s intended to remain available until 2014, when core health care overhaul provisions take effect. At that time, insurers will be barred from turning away people in poor health, low- and middle-income households will get subsidized coverage, and most Americans will for the first time be required to carry health insurance.

To qualify for the pre-existing condition plan, people must be uninsured for at least six months and have been turned down for coverage by a private insurer because of a medical problem. U.S. citizens and legal residents are eligible.

The biggest question hanging over the program is whether the $5 billion allocated will be enough. Millions of people meet the basic qualifications for coverage, and technical experts who advise Congress and the administration have warned the funds could be exhausted as early as the end of 2011.

HHS officials sidestepped questions about what would happen if the money runs out. One option is for the government to limit enrollment.
Popper estimated about 200,000 people would be enrolled in the program at any one time, but other HHS experts estimated that 375,000 would sign up this year, and the Congressional Budget Office says the total could reach 700,000 in 2013.

All of the UK’s major credit card providers treat any form of gambling activity on a credit card as a cash withdrawal

moneysupermarket.com, Britain’s number one comparison site, has conducted analysis into the wide range of transactions treated as a cash withdrawal by credit card providers.

The analysis shows that all of the UK’s major credit card providers treat any form of gambling activity on a credit card as a cash withdrawal. This means that when using their card for gambling, credit card users may face higher APRs than they expect. Consumers may find themselves charged around 11 per cent higher than their advertised APR when using their credit card as cash.
There are even more scenarios where consumers may be caught out. Transactions including purchasing foreign currency, electronic money transfers, postal orders and the purchase of traveller’s cheques may also be treated as cash withdrawals, so will come with a hefty interest rate.

Kevin Mountford, head of banking at moneysupermarket.com said: “Credit card users have to be careful how and where they use their card. The vast majority of consumers are aware that withdrawing cash on a credit card can be a costly exercise and should be avoided. However, many people do not understand where else their provider will treat purchases as cash withdrawals and can be fooled into making a pricey mistake.

“The growth of online gambling makes it more likely that people will use their credit cards when placing a bet. Our analysis show this might narrow your odds significantly, as the cost of using a credit card for online gambling can almost double the standard APR you are charged elsewhere.

“In addition to this any form of money transfer or travel money purchase will be charged on your credit card in the same way as a cash withdrawal. Credit card users should be careful to ensure they don’t expose themselves to higher charges by knowing exactly when and where their credit card transactions will be more expensive.”

Nearly 1.5 million homeowners are putting their homes at risk with inadequate cover

Nearly 1.5 million homeowners are putting their homes at risk with inadequate cover according to a new survey by Britain’s number one comparison site, moneysupermarket.com.

–> 250,000 homeowners have no insurance at all for their homes
–> London and the South-East are least protected areas

One in 16 UK homeowners (6 per cent) admit they are missing out on some form of insurance and only have either buildings or contents insurance – not both – this doubles to one in eight (12 per cent) of younger homeowners aged between 18-34.

Half a million homeowners admit to only covering contents, while 750,000 have buildings insurance only; a quarter of a million homeowners admit to having no cover at all**. The survey also reveals that 11 per cent of homeowners in London and the South East are putting themselves at risk of costly payouts.

Julie Owens, head of home insurance at moneysupermarket.com said: “Inadequate cover is a serious problem for many homeowners, and is a very dangerous position to be in.

“Homeowners seem to be taking the ‘either/or’ approach by foregoing some part of their home insurance, but having both buildings and contents cover is important and not as costly as many may think. Common incidents such as accidental damage, burglary or loss of possessions away from the home can lead to very expensive bills without contents insurance to protect you, and most mortgage providers will insist you have buildings cover before they lend to you.

“Those quarter of a million homeowners with no cover at all are taking a huge unnecessary risk, problems such as subsidence, burst pipes, personal liability and even boiler breakdown in some cases could land you with a bill well into the thousands of pounds.

“Giving yourself peace of mind by having appropriate buildings and contents insurance is well worth it and doesn’t have to cost a lot. I would recommend shopping around for the best deal to suit your needs, buildings and contents insurance is available from as little as £169 a year. (See table below)

“As well as shopping around, opting to pay for the cost of your home insurance by month is a good way of keeping your initial outlay for home cover down, splitting the cost in to smaller payment amounts can also make things easier and there are some home insurance providers who do not charge an APR for opting to pay in monthly instalments.”

Groupama Optima Trade Plus : Tradesman policy is first to cover part-time workers and offer them fairer premiums

In a first for the insurance sector, Groupama Insurances is offering Tradesman cover for part-time workers at a reduced per capita rating through its Optima Trade Plus policy. This, combined with Groupama’s variable commission option creates a powerful combination for brokers targeting the UK’s sole traders, partnerships and small limited companies. The development comes as the ONS recently revealed an upturn in part-time positions as businesses have cut back on full-time workers to reduce costs during the recession.

At the same time, Groupama has increased the maximum number of employees to 12 for Contracting trades and 20 for Professional trades without referral and can now cover contract works for speculative builders. In addition, brokers can take advantage of a new online premium negotiation facility for preferred contracting and professional trades, helping them to secure business on the spot.

Malcolm Smith, Commercial Lines Director for Groupama Insurances said: “Firms with less than 9 employees represent 89% of all UK businesses. It’s a substantial sector of our economy yet it’s also the most vulnerable and many are struggling to meet their costs. These developments to Optima Trade Plus are as a direct result of broker feedback and will provide fairer premiums to these businesses whilst providing brokers with a real competitive edge.

The part-time cover is particularly suitable for firms such as cleaning businesses who have a high proportion staff working 10-15 hours a week. This, along with variable commission and the online negotiation facility offers brokers much more flexibility over the premium they can offer their small business customers.” The part-time cover is available for employees working less than 16 hours in one week and calculated on a per capita basis but at a lower rate than full time employees. Optima Trade Plus per capita rated policies cover public liability, employers’ liability, tools, trade contents, contract works, business interruption and personal accident.

Malcolm Smith concludes: “These changes are a further example of Groupama Insurances innovating and responding quickly to market dynamics and the needs identified by our brokers. Optima Trade Plus is already a highly popular product and these latest enhancements will keep it front of mind for brokers targeting the millions of businesses in this important segment of the UK’s SME community.”

Aviva has launched a specialist media insurance, which covers the industry’s specific insurance needs

Recognising that the media industry is one of the fastest growing sectors in the UK Aviva has launched a specialist media insurance, which covers the industry’s specific insurance needs.

A range of businesses, including on and offline publishers, marketing and advertising companies, photographers, broadcasters and local media, can now benefit from tailored protection against the many risks faced by those working within the media.

Aviva’s new media product provides specialist protection for expensive recording, editing and broadcasting equipment should it break down or be damaged. It also provides the right breadth of business interruption cover on the understanding of how disruptive loosing such sophisticated equipment can be, especially part way through a job.
The cover also includes important options such as legal protection and essential liability, tailored to the client’s needs using a combination of Aviva’s self employed office package and the bespoke media policy. This provides solutions for larger media businesses including property damage, business interruption, theft, employers, public and products liability and commercial legal protection.

Likely claims within the media industry may include accidental damage to recording or photography equipment, the loss of important images and copy, theft of valuable property and equipment and the costs to re-shoot material after an accident or loss of footage.
For production companies, particularly those dealing with film, video, post production and animation, Aviva offers a range of specialist media covers such as multimedia, producers and post producers indemnity.

Keith Sully, commercial underwriting manager, Aviva, says: “We have put together our media cover to meet the many and varied requirements of this specialised industry.”
“The media industry relies heavily on technology, with the evolution of multimedia technologies changing the landscape in this sector beyond recognition over the last 20 years.
“As an industry particularly dependent on specialised equipment it is essential to have an insurance policy that meets those specific needs. However, it is also important to remember that many businesses will need additional areas of protection such as: business interruption, professional indemnity or even directors and officers cover.”

Aviva’s protection service gets quicker and slicker

Aviva, the UK’s largest insurer, has reduced the average time it takes to accept a protection application by 40% from 11 days to 6.5 through service improvements. As a result the time taken for advisers to start a policy has reduced by over 50%, meaning customers get their cover and advisers are paid faster.

A further effect of the efficiencies introduced by Aviva mean that more proposals received through advisers and business partners now turn into policies.
Aviva has improved service by making changes across the end to end journey. These include:
- Improved underwriting which sees more applications accepted at point of sale
- Dedicated teams for large cases and business protection and a pre sales free phone underwriting helpline*
- Improved adviser information including preferred contact method
- Update to advisers in less than two days when information is missing from an application.

Peter Chadborn, Partner of CBK (Colchester), said: “Improved service levels are always welcome, particularly when they relate to underwriting because inefficient processes can reflect badly on our judgement when recommending where to place business. I am pleased to see a pre sales underwriting helpline because this can help us manage our client’s expectations.”
Richard Verdin, director of protection, at Aviva, said: “The protection market is often seen to be measured only on price, however advisers constantly tell us the importance of service when choosing a provider. At Aviva we have made significant improvements to offer a slicker, faster more efficient service. This is not only a win for customers who are satisfied by a quick service, but also a win for the adviser who has quickly delivered peace of mind for their customer.”

It’s official! Lazy and untidy men are one of the biggest sources of irritation for Britain’s women

A poll of a thousand people by online car insurance company swiftcover.com found that:
47% of women get impatient with untidy partners compared with just 25% of men
30% of women get impatient with partners that do not help out around the house, compared with only 10% of men
And while an equal number of men and women (37%) admit to being more impatient than three years ago, swiftcover.com found that 55% of women say their impatience has made them anxious, stressed or tearful, compared with just 33% of men. Coping strategies also differ between the sexes. swiftcover.com found:
33% of women admit feeling impatient has caused them to comfort eat, as opposed to just 18% of men
17% of men say impatience has led them to drink too much, compared with 14% of women
16% women say they intend to talk more to solve issues that make them impatient, compared to only 13% of men
12% of women have resolved to be nicer to other people, compared with just 9% of men
7% of women plan to take up meditation or yoga to tackle their impatience, whilst only 3% of men say they would do the same

Tina Shortle, marketing director of swiftcover.com, says: “It’s clear that many of us are getting more impatient than we used to, but it’s interesting to see that it has a greater impact on women. That’s why swiftcover.com has developed a series of de-stress tips to help people chill out more – whether you are male or female.”
Laugh in the face of impatience: 7% of women told swiftcover.com they intended to take up yoga, but why not combine the Eastern exercise with a good laugh? Check out www.laughteryoga.co.uk – yoga and meditation are proven ways to de-stress, helping to lower the heart rate, improve sleep and increase a sense of calm and well being.

Eat yourself calm: swiftcover.com’s survey discovered that feelings of impatience have lead more than a quarter of all people (28%) to comfort eat. However, a poor diet can actually help increase stress rather than alleviate it. Good nutrition and cutting back on junk food and caffeine will help you feel better and increase your energy levels.

Mess=Stress: Cleaning up and de-cluttering your house and work space will make you feel more relaxed and more able to work and function effectively – especially if your partner helps!
Work it out: 18% of people surveyed are planning to take up exercise, which is a great physical and physiological release from stress. It can be easy to incorporate into everyday life, for example cycling to the shops will help you get fit and can also be quicker than going by car, and exercising releases endorphins which make you feel better and more energetic.

Choose a chill out tune: Music can help boost energy and calm us down when we are feeling stressed. Listening to music can accompany your daily activities meaning it doesn’t take any time away from your day, but can help improve it.
Sleep it off: Feeling stressed and impatient led to problems sleeping for 36% of those surveyed by car insurance company swiftcover.com, and feeling over-tired can increase that stressful feeling. To break the cycle eating healthily, as well as exercising and reading can help bring on the ZZZs.

Sex it up: A study from Arizona State University found that people who had had sex the previous night were in a better mood and less stressed the next day!
Look into my eyes: Self-hypnosis can be a great stress management tool. Hypnosis helps get you into a deeply relaxed frame of mind and it can also be used to help you make lifestyle choices, like eating healthier or overcoming negative habits. For more info visit: http://stress.about.com/od/lowstresslifestyle/ht/Howtoselfhyp.htm
Eat Chocolate (but not too much): An Australian study discovered that the fat and sugar in chocolate can help combat stress and anxiety. http://timesofindia.indiatimes.com/life/health-fitness/health/Chocolates-can-reduce-stress/articleshow/5266992.cms
Use your iPhone: Now you don’t even need a stress ball to keep calm as a new iPhone app allows you to shake your stress out on your phone or iPod. Check out http://appshopper.com/medical/antistress for details.

Aviva UK Health launches new group critical illness product

Aviva UK Health today announced that it is enhancing its group risk proposition with a new group critical illness product. This addition and its ability to offer health and wellbeing products means that Aviva now offers one of the widest breadth of product offerings amongst the top four group risk providers.

The group critical illness market has experienced the fastest annual premium income growth out of all group risk products over the past few years. Aviva’s competitively priced product has been introduced in direct response to an increased customer demand for lower cost employee benefits to include as part of a flexible benefits scheme. The product can also be purchased on a voluntary or company paid basis.

Customers can choose from two levels of cover. Either a standard list of illnesses and procedures, or alternatively they can opt for an extended list. Benefit is paid up to five times the employee’s salary, subject to a maximum of £500,000 (gross).

To reduce administration and simplify the application process a pre-existing condition exclusion applies to the product. This removes the need for full medical underwriting.

Steve Bridger, head of group risk, Aviva UK Health said: “As a business, we’re committed to the group risk market and our recent product and service enhancements mean that we now offer some of the most competitive group income protection and group life terms in the market. Our entry to the group CI market is a natural move which will give intermediaries a wider choice of provider.

“The addition of group critical illness means that we believe we now offer the widest choice of products amongst the key group risk providers. With this range of services also comes a breadth of knowledge and we’re already applying best practice learnings across business areas.

“For example, we’re using clinical knowledge from our specialist private health insurance claims teams to assist our group income protection business. Similarly, tele-interviewing was an approach we took from our individual income protection business and applied it to group risk. We recognise that employers need an integrated service that responds to their individual business needs and I believe that this expert knowledge and broad choice of products means that Aviva is now best placed to offer exactly this.”

Aviva’s group critical illness is designed to pay employees a cash lump sum on diagnosis of a pre-defined list of critical illnesses or after the employee has undergone one of a list of surgical procedures and then survives for at least 14 days. The money can then be used however the employee sees fit, for example to help cover a mortgage or bills, to help pay for treatment or make adjustments to their home.

Allstate and Perewitz will unveil the bike at the 2010 Chicago International Motorcycle Show

Allstate Insurance Company announced today it will be giving away a custom motorcycle designed by legendary bike builder Dave Perewitz during its “Allstate Pro Street Sweepstakes.”

Allstate and Perewitz will unveil the bike at the 2010 Chicago International Motorcycle Show on Feb. 19. The Pro Street style bike – known for its stretched frame, low to the ground body and wide rear tire – will feature a custom paint job, the very element that has made Perewitz an industry icon.

“Lots of pride and hard work goes into every bike I create,” said Perewitz. “And thanks to the folks at Allstate, one lucky person will be able to enjoy this custom bike creation.”

Allstate has also invited Perewitz to join the Allstate Mobile Garage Tour at major rallies across the country. He will work with the insurer to help promote motorcycle safety awareness through the company’s “Once is Never Enough” (ONE) program.

“Allstate is proud of our commitment to motorcycle safety awareness, and this giveaway represents a way for us to reward a consumer and get our safety message across to everyone on the road at the same time,” said Lisa Cochrane, vice president of marketing for Allstate.

The sweepstakes will run from Feb. 19, 2010 through Feb. 28, 2011, and participants can register for the sweepstakes online at AllstateGarage.com or by visiting the Allstate Garage Tour at some of the biggest motorcycle rallies in the country, including:

Daytona Bike Week, Daytona Beach, Fla.: Feb. 26-March 7
Laughlin River Run, Laughlin, Nev.: April 21-24
Laconia Motorcycle Week, Laconia, N. H.: June 12-20
Sturgis Rally, Sturgis, S. D.: Aug. 9-15
Biketoberfest, Daytona Beach, Fla: Oct. 14-17
Lone Star Rally, Galveston, Texas: Nov. 4-7
ONE was created to encourage everyone on the road to always look left, right and then left again for riders before crossing an intersection – the most common site for motorcycle-related crashes. Fatality Analysis Reporting System statistics from 2004 to 2008 showed that 44 percent of motorcycle fatalities resulted from intersection crashes.

For complete details about the Allstate Pro Street Sweeps or to find out more about the Mobile Garage Tour, please visit AllstateGarage.com.

MetLife introduce Tiered SolutionSM, a graded automatic inflation protection rider

As part of continuing efforts to help consumers find long-term care (LTC) insurance solutions that best meet their diverse needs, MetLife today announced that it has introduced Tiered SolutionSM, a graded automatic inflation protection rider available with MetLife LTC LifeStage AdvantageSM.

“According to the MetLife Mature Market Institute, the average annual rate for a home health aide is $27,000 and the average annual semi-private nursing home rate is more than $72,000, and these costs will likely continue to climb,” said Jodi Anatole, vice president, Long Term Care Product Management for MetLife. “MetLife’s Tiered Solution rider is an innovative, more affordable alternative to traditional automatic compound inflation riders that helps address purchasers’ concerns over the likely rising cost of care.”

For example, when purchased before age 61, MetLife’s Tiered Solution rider automatically provides a 5% increase in the total benefit and the monthly benefit amount. Beginning at age 61, the total benefit and the monthly benefit amount increases by 3%. These increases are compounded annually up to age 76 with no rise in premium as a result of the benefit increases provided by this rider. This graduated approach provides consumers with a lower cost alternative to traditional automatic compound inflation riders.

Tiered Solution is currently available in 31 states.

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