Jan. 9 (Bloomberg) -- American International Group Inc., the insurer rescued by the U.S. government, will probably sell its Canadian life insurance unit in the next few days, with the Desjardins Group among potential bidders, said a consultant who has advised AIG.
The sale “could be today, but I would suggest in the next 10 days or so,” said Byren Innes, a senior vice president with Toronto-based NewLink Group Inc., a management consulting firm. “The sale was expected to close by the end of December, but it’s dragged on a little bit.”
AIG, once the world’s biggest insurer by assets, is selling businesses to repay a $60 billion loan that’s part of the U.S. government’s rescue package. The units on the auction block include a jet-leasing company and life insurance divisions from the U.S. to Japan.
Potential buyers include Desjardins, Canada’s biggest credit union, Innes said today. Montreal-based Desjardins offers individual and group life and health insurance and runs brokerage and lending operations, primarily in the French-speaking province of Quebec. The AIG purchase would add to the firm’s distribution network outside Quebec.
AIG sells products including life and health insurance in Canada, according to its Web site. Peter McCarthy, chief executive officer of the Toronto-based AIG Life Insurance Co. of Canada, didn’t return a call seeking comment.
Desjardins spokeswoman Isabelle Truchon declined to comment, as did David Monfried, an AIG spokesman in New York.
To contact the reporters on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net; Zachary R. Mider in New York at zmider1@bloomberg.net.
Showing posts with label insurance company. Show all posts
Showing posts with label insurance company. Show all posts
Saturday, 10 January 2009
Thursday, 8 January 2009
Sixteen insurance companies registered with IBSL
The Insurance Board of Sri Lanka (IBSL) said that sixteen companies have been registered with the IBSL in terms of Regulation of Insurance Industry Act No 43 of 2000. Eleven companies are involved with both Life and General policies three with only General policies and another two with only life policies.
The companies are ABC Insurance Company, Allianz Insurance, Allianz Life Insurance Lanka, Amana Takaful, Asian Alliance Insurance, Ceylinco Insurance, Ceylinco Takaful Company, Co-Operative Insurance Company, Eagle Insurance, Hayleys AIG Insurance, HNB Assurance, Janashakthi Insurance, Life Insurance Corporation, Seemasahitha Sanasa Rakshana Samagama,Sri Lanka Insurance Corporation and Union Assurance.
There are also 54 registered broker companies and a larger number of agents in the country. Four companies have not registered for 2008 and the IBSL has refused to renew the registration of only one company for 2008 who has not fulfilled the requirements as per the regulations.
Director General IBSL L.S.A. Serasinghe told the Daily News Business that the premiums under the relevant companies should be paid only to those registered companies, Insurance broking companies and Insurance agents registered with an insurance company.
Asked whether there are any irregularities in the industry due to the current financial crisis taking place globally, she said, there is no impact on the insurance industry so far and the IBSL will keep the public informed through the media on all activities taking place as an annual event so that people would be well aware about how they should act.
On the question whether the demand for the new insurance policies has declined, she said that it is too early to comment as business activities have not picked up yet in the new year.
The companies are ABC Insurance Company, Allianz Insurance, Allianz Life Insurance Lanka, Amana Takaful, Asian Alliance Insurance, Ceylinco Insurance, Ceylinco Takaful Company, Co-Operative Insurance Company, Eagle Insurance, Hayleys AIG Insurance, HNB Assurance, Janashakthi Insurance, Life Insurance Corporation, Seemasahitha Sanasa Rakshana Samagama,Sri Lanka Insurance Corporation and Union Assurance.
There are also 54 registered broker companies and a larger number of agents in the country. Four companies have not registered for 2008 and the IBSL has refused to renew the registration of only one company for 2008 who has not fulfilled the requirements as per the regulations.
Director General IBSL L.S.A. Serasinghe told the Daily News Business that the premiums under the relevant companies should be paid only to those registered companies, Insurance broking companies and Insurance agents registered with an insurance company.
Asked whether there are any irregularities in the industry due to the current financial crisis taking place globally, she said, there is no impact on the insurance industry so far and the IBSL will keep the public informed through the media on all activities taking place as an annual event so that people would be well aware about how they should act.
On the question whether the demand for the new insurance policies has declined, she said that it is too early to comment as business activities have not picked up yet in the new year.
Tuesday, 6 January 2009
6 Tips to Save on Insurance Costs
More than other age groups, people over the age of 65 are reluctant to consider changes in their insurance needs, according to a national survey of homeowners by Trusted Choice and the Independent Insurance Agents & Brokers of America.
Overall, nearly 24 percent of Americans have made changes to their auto, home, life, or health insurance coverage in the past year in order to reduce costs; 18 percent have considered such changes in the past few months; and 33 percent would consider insurance cutbacks in 2009. The overwhelming reason for the reductions is the sorry state of the economy.
Compared with those overall responses, however, older consumers were less likely across the board to make reductions. Only 9 percent of respondents ages 65 and older had made insurance reductions in the past year; 12 percent had considered them recently; and only 10 percent said they would consider them in 2009.
According to the 2007 survey of consumer household expenditures by the U.S. Labor Department, average after-tax income of households led by people ages 65 and higher was about $39,180. Of this amount, health insurance spending averaged $2,770, car insurance cost $975, and $329 was spent on life insurance and other types of personal insurance.
There was no breakout for home insurance, but even without that expense, average insurance payments were about $4,700, or more than 10 percent of after-tax income. By comparison, annual household spending on food—including food at home and meals away from home—was only $4,515.
So, while older consumers might be reluctant to reduce their spending on insurance, they should think about whether some wise trims can be made without sacrificing their key insurance safeguards. Here are tips for where to look for auto, home, life, and health insurance savings:
1) Many seniors have older vehicles and do not need expensive low-dollar deductibles for collision and comprehensive coverage. Consider selecting higher deductibles. However, do not scrimp on liability protection or uninsured motorist coverage. More people are dropping their car insurance because of the tough economy, so you need to make sure you're covered should you be in an accident with an uninsured driver.
2) Some insurers have responded to last summer's $4 gasoline by expanding their reduced-driving discounts to better serve people who have cut back on their driving. If you do not drive many miles, you may qualify.
3) When you rent a car, odds are you do not need rental-car insurance and can rely on your existing car insurance policy to protect you. You will, however, be on the hook for the deductible payment should you be in an accident that is your fault.
4) Inflation protection is a must-keep feature of home insurance, but like millions of seniors who have downsized, you may have reduced your possessions. Review whether you still need special riders on jewelry, furs, computers, and other items.
5) Life insurance is designed to help loved ones, providing them money to replace the income lost by your death and helping to conserve assets in your estate should you have enough wealth to trigger estate taxes. As we age, the protective objectives of life insurance diminish and you may not need as large a policy.
6) Substitute generics for brand-name drugs. The U.S. Food and Drug Administration has a tool to identify generic equivalents of brand-name prescription drugs. Use it and see if you can save money.
Overall, nearly 24 percent of Americans have made changes to their auto, home, life, or health insurance coverage in the past year in order to reduce costs; 18 percent have considered such changes in the past few months; and 33 percent would consider insurance cutbacks in 2009. The overwhelming reason for the reductions is the sorry state of the economy.
Compared with those overall responses, however, older consumers were less likely across the board to make reductions. Only 9 percent of respondents ages 65 and older had made insurance reductions in the past year; 12 percent had considered them recently; and only 10 percent said they would consider them in 2009.
According to the 2007 survey of consumer household expenditures by the U.S. Labor Department, average after-tax income of households led by people ages 65 and higher was about $39,180. Of this amount, health insurance spending averaged $2,770, car insurance cost $975, and $329 was spent on life insurance and other types of personal insurance.
There was no breakout for home insurance, but even without that expense, average insurance payments were about $4,700, or more than 10 percent of after-tax income. By comparison, annual household spending on food—including food at home and meals away from home—was only $4,515.
So, while older consumers might be reluctant to reduce their spending on insurance, they should think about whether some wise trims can be made without sacrificing their key insurance safeguards. Here are tips for where to look for auto, home, life, and health insurance savings:
1) Many seniors have older vehicles and do not need expensive low-dollar deductibles for collision and comprehensive coverage. Consider selecting higher deductibles. However, do not scrimp on liability protection or uninsured motorist coverage. More people are dropping their car insurance because of the tough economy, so you need to make sure you're covered should you be in an accident with an uninsured driver.
2) Some insurers have responded to last summer's $4 gasoline by expanding their reduced-driving discounts to better serve people who have cut back on their driving. If you do not drive many miles, you may qualify.
3) When you rent a car, odds are you do not need rental-car insurance and can rely on your existing car insurance policy to protect you. You will, however, be on the hook for the deductible payment should you be in an accident that is your fault.
4) Inflation protection is a must-keep feature of home insurance, but like millions of seniors who have downsized, you may have reduced your possessions. Review whether you still need special riders on jewelry, furs, computers, and other items.
5) Life insurance is designed to help loved ones, providing them money to replace the income lost by your death and helping to conserve assets in your estate should you have enough wealth to trigger estate taxes. As we age, the protective objectives of life insurance diminish and you may not need as large a policy.
6) Substitute generics for brand-name drugs. The U.S. Food and Drug Administration has a tool to identify generic equivalents of brand-name prescription drugs. Use it and see if you can save money.
Flawed Deposit Insurance Programs Need Reform, Banking Expert Says
Government insurance programs that safeguard bank deposits should be reformed to ease taxpayers’ undue stake in propping up the nation’s banking system, according to research by a University of Illinois finance professor.
George Pennacchi says the Federal Deposit Insurance Corp., created during the Great Depression to halt bank runs, is supposed to protect savings through premiums paid by banks, but is effectively subsidized by the U.S. Treasury, putting tax dollars at too much risk.
“We have a system where when things get bad, taxpayers end up being forced to pay for bank failures, not just the FDIC,” Pennacchi said.
Proof that deposit insurance has grown overly generous has surfaced amid a global economic meltdown, he said, with investment firms such as Goldman Sachs and insurance giant Hartford Financial becoming banks to get access to insured deposits.
“One of the reasons why that’s so, and I think this has been a long-standing problem, is that government has tended to subsidize deposit insurance, sort of through a back door,” Pennacchi said. “The savings and loan crisis is an example. Instead of premiums paid by thrifts covering the losses, about $124 billion came from taxpayers.”
He proposes reforms in a research paper that will be presented this month at an economic conference sponsored by the American Enterprise Institute, a conservative-leaning, Washington-based think tank that seeks to influence public policy.
One reform, Pennacchi said, is veering away from an approach that provides nearly unlimited government financial backing when large institutions such as Bear Sterns are on the brink of failure. The government, he says, deems some banks “too big to fail,” with so many connections to other financial markets that failure could net a disastrous domino effect.
But he says the problem can be addressed without leaving taxpayers on the hook. He proposes a central clearinghouse requiring banks to put up collateral in derivative trading that would cover potential losses if one of the parties fails.
“That would get rid of the too-big-to-fail problem and is done all the time with exchange-traded derivatives,” Pennacchi said. “If you trade on the Chicago Mercantile Exchange, there’s a clearinghouse that requires both parties to put up collateral, so if one of them fails it doesn’t cause a loss for their trading partners.”
He says the FDIC should also reform premiums for deposit insurance that have historically been artificially low, covering only average losses and heightening risks of a taxpayer bailout in the event of widespread bank failures.
A move toward rates charged for similar, private-market insurance, such as credit-default swaps, would likely yield significant premium increases, roughly doubling current rates, Pennacchi said.
“But I think that’s the minimum that needs to be charged to protect taxpayers and prevent the government safety net from expanding even more,” he said.
Pennacchi also advocates either abandoning a dedicated deposit insurance fund, managing the program through the treasury instead, or creating a swap market that would level out banks’ premiums.
He says banks could lock in deposit insurance costs through a premium swap market, rather than paying higher premiums when bank failures rise and receiving rebates on premiums when failures are low. The swap market would be similar to interest rate swaps, transferring risk to investors outside of the banking industry.
“If there’s any reform that would be easy to do it would be to create this premium swap, which would lead to more stability for banks because they wouldn’t face high premiums in bad years when they’re least able to pay,” Pennacchi said.
His research will appear in a book that will be published this year by the American Enterprise Institute. The book will focus on government guarantee programs ranging from the FDIC to crop and terrorism insurance.
George Pennacchi says the Federal Deposit Insurance Corp., created during the Great Depression to halt bank runs, is supposed to protect savings through premiums paid by banks, but is effectively subsidized by the U.S. Treasury, putting tax dollars at too much risk.
“We have a system where when things get bad, taxpayers end up being forced to pay for bank failures, not just the FDIC,” Pennacchi said.
Proof that deposit insurance has grown overly generous has surfaced amid a global economic meltdown, he said, with investment firms such as Goldman Sachs and insurance giant Hartford Financial becoming banks to get access to insured deposits.
“One of the reasons why that’s so, and I think this has been a long-standing problem, is that government has tended to subsidize deposit insurance, sort of through a back door,” Pennacchi said. “The savings and loan crisis is an example. Instead of premiums paid by thrifts covering the losses, about $124 billion came from taxpayers.”
He proposes reforms in a research paper that will be presented this month at an economic conference sponsored by the American Enterprise Institute, a conservative-leaning, Washington-based think tank that seeks to influence public policy.
One reform, Pennacchi said, is veering away from an approach that provides nearly unlimited government financial backing when large institutions such as Bear Sterns are on the brink of failure. The government, he says, deems some banks “too big to fail,” with so many connections to other financial markets that failure could net a disastrous domino effect.
But he says the problem can be addressed without leaving taxpayers on the hook. He proposes a central clearinghouse requiring banks to put up collateral in derivative trading that would cover potential losses if one of the parties fails.
“That would get rid of the too-big-to-fail problem and is done all the time with exchange-traded derivatives,” Pennacchi said. “If you trade on the Chicago Mercantile Exchange, there’s a clearinghouse that requires both parties to put up collateral, so if one of them fails it doesn’t cause a loss for their trading partners.”
He says the FDIC should also reform premiums for deposit insurance that have historically been artificially low, covering only average losses and heightening risks of a taxpayer bailout in the event of widespread bank failures.
A move toward rates charged for similar, private-market insurance, such as credit-default swaps, would likely yield significant premium increases, roughly doubling current rates, Pennacchi said.
“But I think that’s the minimum that needs to be charged to protect taxpayers and prevent the government safety net from expanding even more,” he said.
Pennacchi also advocates either abandoning a dedicated deposit insurance fund, managing the program through the treasury instead, or creating a swap market that would level out banks’ premiums.
He says banks could lock in deposit insurance costs through a premium swap market, rather than paying higher premiums when bank failures rise and receiving rebates on premiums when failures are low. The swap market would be similar to interest rate swaps, transferring risk to investors outside of the banking industry.
“If there’s any reform that would be easy to do it would be to create this premium swap, which would lead to more stability for banks because they wouldn’t face high premiums in bad years when they’re least able to pay,” Pennacchi said.
His research will appear in a book that will be published this year by the American Enterprise Institute. The book will focus on government guarantee programs ranging from the FDIC to crop and terrorism insurance.
ASU study: Fewer Alabamians with health insurance
MONTGOMERY, AL (WSFA) - As the economy dips further into recession a new study shows that Alabamians are losing their health insurance.
Alabama State University's Center for Leadership and Public Policy says a recent survey finds that fewer Alabamians had health insurance in 2008 than in 2007.
The study, which surveyed 403 random Alabama residents over a six-week period in late 2008, found that 80% of households had insurance in 2008, down from 83% the previous year.
Those who didn't have insurance said the main reasons were 1.) no employment or 2.) they just couldn't afford it.
ASU's study reveals that of those that were insured 50% of households said their employer was the source of their insurance while another 25% said insurance came through a family member's employer. The remaining 25% said they purchased their own insurance.
The drop in coverage is affecting those who are younger and have smaller incomes. ASU's study found that 56% of respondents with no health insurance were under the age of 41 and had incomes of less than $25,000.
The study included a breakdown of uninsured Alabamians by race. Of those who said they were not insured 48% were Caucasian and 42% were African-American.
ASU says it has a confidence level in the study of 95% and a confidence intertal of plus or minus 4.9%.
Saturday, 3 January 2009
Ferarri crash pictures - insurance FAQ
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The mystery deepened Monday in the case of the puzzling crash last week of a $1-million Ferrari Enzo on Pacific Coast Highway in Malibu.
Sheriff's detectives said Monday that they believe a gun's magazine discovered near the wreckage is connected to the crash, and they plan to interview an unnamed person who they believe was in the car with Swedish game machine entrepreneur Stefan Eriksson.
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