Best's Review Identifies New Life Insurance Trend.

OLDWICK, N.J. -- Although universal life policies with guaranteed death benefits predominate the market, Best's Review reveals a new product lineup trend that is shaking up the life industry.

In addition to new life insurance trends, the February issue investigates who will pay when the Superfund runs dry. It also evaluates the competition between formerly merged Pennsylvania health insurers Highmark Inc. and Capital BlueCross.

Best's Review is published by A.M. Best Co. for insurance professionals, including home office executives, agents, brokers and others who are affiliated with the industry, including bankers, lawyers and educators.

From Jackson National Life Insurance Co.--known for its fixed products--launching its first variable universal life product in March 2003 to Hartford Life Insurance Co.--renowned as a carrier of variable annuities and variable life--becoming an active player in universal and whole life products, the question emerges: Why are so many life insurers incorporating new, uncharacteristic products?

The answer, for most, is that they are trying both to anticipate the direction of the market and to bulk up their product lines to be prepared for any new market direction. In short, they are looking to build a portfolio for all seasons.

Beyond life insurance, Best's Review delves into the emergent dilemma of the Superfund depletion. The Superfund program oversees the cleanup of toxic waste sites and finances--through a trust fund--those cleanups where the parties potentially responsible have gone out of business or no longer exist. However, the trust fund was paid for by a tax on oil and chemical companies, and that tax has since expired. Following the tax expiration, the Superfund has had to rely on more general tax fund dollars.

Toxic cleanups are no cheap proposition, either. Fifty-two percent of the Superfund appropriation in Fiscal Year 2004 went to pay for the cleanup of only nine sites. The question lingers: Just who will pay when the Superfund runs dry?

Finally this month, Best's Review gauges the progress of Highmark and Capital BlueCross, just three years after their separation. At the close of a 36-year union, the Pennsylvania Blues operations split to take different paths, and both, as it turns out, appear to be doing just fine. Whether the two companies, which were once one profitable health insurance enterprise, continue to thrive independently remains to be seen.

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