Common denominators: faster ways to underwrite individual life policies will help insurers reach more producers and different customers. (Life/Health: Selling).Speed wins business. That hasn't has·n't Contraction of has not. hasn't has not hasn't have always been the case in the life insurance industry; but it is certainly becoming more so now. Over the last couple of years, reinsurers and direct writers have rethought the way they sell insurance. Some now are poised to change the life sale from a ponderous pon·der·ous adj. 1. Having great weight. 2. Unwieldy from weight or bulk. 3. Lacking grace or fluency; labored and dull: a ponderous speech. See Synonyms at heavy. and expensive process to one that is Thster, cheaper and able to reach more prospects, including those in middle-income mid·dle-in·come adj. Of or relating to people or groups whose income falls in the middle of the range for an overall population. America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. that the industry has not contacted for two decades. Insurers have wanted to underwrite To insure; to sell an issue of stocks and bonds or to guarantee the purchase of unsold stocks and bonds after a public issue. The word underwrite has two meanings. faster for many years, but not until the recent expansion of online databases and the propagation The transmission (spreading) of signals from one place to another. of quick computers have they been able to give it a try. The early results are that the industry can use new underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. tools to sell competitively priced policies in a fraction of the time and through largely untapped channels. One example is the "Safeco Safeco Corporation (NYSE: SAF) is a major American national insurance company. It has naming rights to the Seattle Mariners' baseball stadium, Safeco Field. Safeco was founded in Seattle, Washington in 1923 by Hawthorne K. Now" program offered by Seattle-based Safeco Life & Investments Co. In 15 online minutes, an adviser can bind a term life policy with the exact same pricing and commission as a regularly underwritten Safeco product. The process ends with either an electronic funds transfer See EFT. (application, communications) electronic funds transfer - (EFT, EFTS, - system) Transfer of money initiated through electronic terminal, automated teller machine, computer, telephone, or magnetic tape. or a credit-card charge, and the client signs the application during an ensuing en·sue intr.v. en·sued, en·su·ing, en·sues 1. To follow as a consequence or result. See Synonyms at follow. 2. To take place subsequently. insurance exam. The online application is "short and sweet," said Jennifer Jennifer became a common first name for females in English-speaking countries during the 20th century. The name Jennifer is a Cornish variant of Guinevere, deriving ultimately from Proto-Celtic *windo-seibaro- "white ghost", via Brythonic *wino-hibirā (cf. Davies Da·vies , Arthur Bowen 1862-1928. American painter who was the chief organizer of the revolutionary Armory Show in 1913. , vice president of individual life. One question asks whether the applicant has been hospitalized during the past 90 days. The other asks if the applicant has had a major disease in the past two years. If both answers are "no," Safeco will immediately authorize To empower another with the legal right to perform an action. The Constitution authorizes Congress to regulate interstate commerce. authorize v. to officially empower someone to act. (See: authority) up to $250,000 of temporary insurance coverage while the longer underwriting process takes place. If the subsequent underwriting turns up a medical condition, the company will make a counter offer, but Davies said only 4% to 5% of the business so far has proved to be substandard substandard, adj below an acceptable level of performance. , and Safeco has declined to write only 3% to 4% of the applications. Safeco has test-piloted the system for about a year and has processed about 1,500 applications. In May, the company took the system "prime-time." "We're we're Contraction of we are. we're we are a distribution channel-focused company," said Davies. "We work through several channels, and some producers are not comfortable with the long application, so we decided to make the process as transactional as possible." Safeco has used telephone applications for five years, and more than 75% of its applications last year came in that way. The company has a big presence in the bank channel through its annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. sales, and it sells property and casualty insurance through independent agents. Davies said the faster underwriting process will "absolutely" help it and other insurers going to speedy underwriting sell to middle-income Americans. "We're now reaching distributors who were scared to death of life insurance and its complications, especially the multiline A cable, channel or bus that contains two or more transmission paths (wires or optical fibers). writers and those in banks," she said. "But if you ask people to buy life insurance, it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have amazing a·maze v. a·mazed, a·maz·ing, a·maz·es v.tr. 1. To affect with great wonder; astonish. See Synonyms at surprise. 2. Obsolete To bewilder; perplex. v.intr. how many say yes. One of the biggest hurdles has been that no one was asking them." Mare and Different Data Better technology is only half the battle, of course. Without alternative underwriting tools, insurers would be setting themselves up for writing bad risks. Speedier underwriting now depends on quick access to several databases that contain information about an applicant's prescription-drug history and motor-vehicle record. Insurers now also have faster and easier access to the database of the Westwood Westwood. 1 Residential town (1990 pop. 12,557), Norfolk co., E Mass., in the greater Boston area; settled 1640, inc. 1897. It has several early 18th-century buildings. 2 Residential borough (1990 pop. 10,446), Bergen co., NE N.J. , Mass.-based Medical Information Bureau, long a provider of information to underwriters. Reinsurers are looking into using income, credit history, education level and ZIP codes zip code System of postal-zone codes (zip stands for “zone improvement plan”) introduced in the U.S. in 1963 to improve mail delivery and exploit electronic reading and sorting capabilities. as indicators of mortality. Another innovation is the scripted personal-history interview underwriters conduct using software developed explicitly for the purpose. If the applicant provides an answer that calls for more investigation, the software provides a drop-down menu See pull-down menu. drop-down menu - pull-down menu of drill-down questions. The tools provide fast ways to screen applicants, said Rich Bergstrom Berg·strom , Sune Karl 1916-2004. Swedish biochemist and physician. He shared a 1982 Nobel Prize for research into the chemical structure of prostaglandins. , principal and consulting actuary actuary One who calculates insurance risks and premiums. Actuaries compute the probability of the occurrence of such events as birth, marriage, illness, accidents, and death. at the Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. office of Milliman USA, and Anna Hart, a colleague who is principal of A.R. Hart Consulting, Eastland, Texas Eastland is a city in Eastland County, Texas, United States. The population was 3,769 at the 2000 census. It is the county seat of Eastland CountyGR6. Geography Eastland is located at (32.398715, -98. . The approach differs from the model for selling insurance online because the agent and underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. are immediately involved, they pointed out. "Not everyone qualifies for the best price, and people don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. like to be surprised on the back end," said Hart. "Then it's harder to sell because the process didn't did·n't Contraction of did not. didn't did not didn't do involve the agent up front." Hart said that Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of is ahead of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in point-of-sale point of sale n. pl. points of sale A business or place where a product or service can be purchased. Also called point of purchase. point underwriting; insurers there can approve a policy right away online. Brokers using laptops there are selling a lot of corporate-owned life insurance Corporate-owned life insurance (COLI) is life insurance on employees' lives that is owned by the employer corporation. COLI was originally purchased on the lives of key employees and executives by a company to hedge against the financial cost of losing key employees to through point-of-sale underwriting, she added. Bergstrom said use of prescription-drug databases is especially good for quick-issue products with lower face amounts. An insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. ought to have contact with at least three or four of the big database companies. "It's a way to screen out applicants based on medications they have taken, a quick way to identify risks less than standard," said Bergstrom. "It's also a way to validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data things they say on their applications, or to help find the right doctor when ordering an attending-physician statement." Motor-vehicle databases are more problematic since there are 50--one for each state. Bergstrom said insurers must navigate (1) "Surfing the Web." To move from page to page on the Web. (2) To move through the menu structure in a software application. more restrictions, a process that can take three to five days. But he said there is value. A drunken-driving conviction "would clearly indicate a nonstandard non·stan·dard adj. 1. Varying from or not adhering to the standard: nonstandard lengths of board. 2. risk," and other offenses could identify reckless reckless adj. in both negligence and criminal cases, careless to the point of being heedless of the consequences ("grossly" negligent). Most commonly this refers to the traffic misdemeanor "reckless driving. drivers, he said. Traditional underwriting would probably help a well-qualified applicant, but Bergstrom said alternative underwriting could possibly provide a better value. "If you used the traditional approach, the mortality of a preferred would be better than a standard, but there's a cost to find out whether the applicant fits into that class, he said. "So the mortality level used could be higher, but the underwriting costs may be less." Bergstrom said the added risks for insurers commonly lie with applicants who smoke but say they don't. Insurers also worry about people with AIDS The People With AIDS (PWA) Self-Empowerment Movement was a movement of those diagnosed with AIDS and grew out of San Francisco. The PWA Self-Empowerment Movement believes that those diagnosed as having AIDS should "take charge of their own life, illness, and care, and to minimize , but that group is not nearly as large as the tobacco-use market, he said. Bergstrom and Hart said saliva saliva Thick, colourless fluid constantly present in the mouth, composed of water, mucus, proteins, mineral salts, and amylase, an enzyme that breaks down starches. One to two litres are produced daily by the salivary glands. testing can be considered a form of alternative underwriting that helps detect use of illegal drugs and tobacco, and HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. . Results can be available within two days. One of the positives of alternative underwriting is its ability to expand the marketplace. Bergstrom estimated that in five years, 15% of new policies and 7.5% of new face amounts will be written through speedier underwriting, and the buyers will be people who otherwise would not have been asked to buy individual life insurance. Newer underwriting tools are likely to emerge along the way. For example, by testing Napoleon's hair, scientists determined that he had been poisoned This article is about something other than the meaning of the word poison. For the meaning of the word, see Poison. Poisoned is a free peer-to-peer computer program for Mac OS X. . Hair samples can reveal much about applicants, including whether they have smoked or taken illegal drugs, said Bergstrom. Genetic "expression" is another new area. "We know certain genes are 'turned on' with tobacco usage," he said." 'Turned on' means that a catalyst has made a gene pop into a different state. The change can be triggered by the environment, diet or lifestyle choices." Genetic expression is different from genetic testing Genetic Testing Definition A genetic test examines the genetic information contained inside a person's cells, called DNA, to determine if that person has or will develop a certain disease or could pass a disease to his or her offspring. in that scientists study how genes look and why they look different under different circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . This kind of testing does not determine whether a person is predisposed pre·dis·pose v. pre·dis·posed, pre·dis·pos·ing, pre·dis·pos·es v.tr. 1. a. To make (someone) inclined to something in advance: to cancer or other diseases, Bergstrom said. Climbing Aboard Like Safeco, Hartford Hartford, city (1990 pop. 139,739), state capital, Hartford co., central Conn., on the west bank of the Connecticut River; settled as Newtown 1635–36 on the site of a Dutch trading post (1633; abandoned 1654), inc. 1784. Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Group has test-piloted an expedited-issue program and has begun to implement it. The program, "Intent to Buy," is designed for the bank or broker-dealer Broker-Dealer A person or firm in the business of buying and selling securities operating as both a broker and dealer depending on the transaction. Notes: Technically, a broker is only an agent who executes orders on behalf of clients, whereas a dealer acts as a principal firm represented by financial professionals who sell to wealthy clients or the "emerging affluent"--younger prospects with children and incomes of $100,000 or more. The Simsbury Simsbury, town (1990 pop. 22,023), Hartford co., N Conn.; inc. 1670. Although the town is mainly residential, it produces ordnance, machinery, and chemicals. The Westminster School, the Ethel Walker School, and the International Skating Center are located in the town. , Conn.-based insurer shifts the job of taking a long application to its telephone interviewers, who are qualified medical personnel. Financial professionals need only begin the process by filing a short request for application by mail, fax or Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . Some 85% of prospects qualify for "simplified issue," meaning there is no need for blood tests and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. paramedic par·a·med·ic n. A person who is trained to give emergency medical treatment or assist medical professionals. paramedic exams, said Rick Maholchic, director of national-account marketing in the individual life division. Hartford typically issues policies within eight working days. Hartford launched the pilot in March 2001 and now uses it with 14 regional and national Wall Street firms and with five banks. So far this year, Hartford's application count is up 60% over the same period last year in firms using the new system, Maholchic said. The growing interest allows the company to leverage its wholesaling and underwriting resources and reduce costs, he said. Part of the reason Hartford can simplify underwriting on policies with big face amounts is that the net amount at risk per policy is relatively low. The product used with simplified sales is the Stag Accumulator A hardware register used to hold the results or partial results of arithmetic and logical operations. (processor) accumulator - In a central processing unit, a register in which intermediate results are stored. VUL VUL Variable Universal Life VUL Vulnerability (unit) VUL Vulgar , a variable universal life policy designed for high cash values. Maholchic said buyers are people who are maxing Out contributions to their 401(k) plans and are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. another tax-deferred tax-de·ferred adj. 1. Of or relating to an investment that is not liable to taxation until income is withdrawn or an appointed date is reached. 2. vehicle to supplement retirement income in addition to adding insurance. Moreover, clients fitting this profile are at low mortality risk since they have high incomes and see doctors, he said. Reinsurers Are Interested, Too Transamerica Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Co. is ready to test-market Test´-mark`et v. t. 1. to market (a product) in a limited area for a period of time to determine the probable demand. an alternative risk-assessment system aimed at helping distributors reach the middle-income market. The Charlotte, N.C.-based company expects its pilot program to begin in October October: see month. with a life insurer, a bank and a third distributor yet to be decided, possibly a personal-lines property/ casualty insurer. The company decided last November November: see month. to begin work with a business partner, Primary Knowledge Inc., Irvine Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif., to develop an alternative underwriting process for a term life product, said Pat Kelleher, chief financial officer, who is also in charge of business development. The goal a "nearly instant automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. underwriting and policy-issuance process," with real-time processing Noun 1. real-time processing - data processing fast enough to keep up with an outside process real-time operation data processing - (computer science) a series of operations on data by a computer in order to retrieve or transform or classify information and electronic policy issuance, he said. The new process will focus on credit history as a way of determining household income, accidental accidental /ac·ci·den·tal/ (ak?si-den´t'l) 1. occurring by chance, unexpectedly, or unintentionally. 2. nonessential; not innate or intrinsic. death underwriting through motor-vehicle records and medical underwriting medical underwriting Managed care The process of determining the medical needs of an individual or group before providing coverage. See Health insurance. for older prospects through data about prescription-drug usage and doctors' medical reports, said Kelleher. He expects interest from direct writers that want to expand into the middle-income market and from companies that want to explore distribution alternatives. "Over the first year or two, we'll see growth in this type of approach by a small number of carriers, those leading in innovation and willing to try new things," he said. "To the extent they're successful, other companies will follow." Transamerica Re has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. 10 to 12 specialists off and on to work on the alternative underwriting project from each of several parts of the company: business development, risk management, medical and underwriting. Kelleher said he is aware of only one other reinsurance company to make a significant investment in this area-Swiss Reinsurance Co. Swiss Re Swiss Re is the world’s largest reinsurer, now that it has acquired GE Insurance Solutions (Ligi 2006). Founded in 1863, Swiss Re now operates in more than 30 countries. General Electric owns 8.9% of the firm. calls its project "eReassure." The "e" stands for electronic, while Reassure re·as·sure tr.v. re·as·sured, re·as·sur·ing, re·as·sures 1. To restore confidence to. 2. To assure again. 3. To reinsure. America Life Insurance Co. is the name of a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. that is working on it, said Chris Stroup, chief executive officer of Swiss Re Life and Health North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Stroup said the project's goal is to create a turnkey See turnkey system. offering in which Swiss Re handles the underwriting, issue and administration of policies, and it assumes the vast majority of the risk. Most face amounts early in the program would fall between $250,000 and $500,000 per policy, Stroup said. Swiss Re started thinking about eReassure in the summer of 2000 after acquiring Midland Life Insurance Co., Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. , which sells individual life insurance and annuities through brokerage general agents. Swiss Re became serious about the project in April 2001 and expects to have "a couple of important clients" by the end of the year, said Stroup. Two technology companies are partnering with Swiss Re on administration and the Web interface for the initial underwriting. Stroup expects that the system will allow conditional policies to be issued in as little as 15 minutes. The company intends to verify (1) To prove the correctness of data. (2) In data entry operations, to compare the keystrokes of a second operator with the data entered by the first operator to ensure that the data were typed in accurately. See validate. answers on the short questionnaire with MIB (1) (Management Information Base) The hierarchical database used by the simple network management protocol (SNMP) to describe the particular device being monitored. MIB objects are identified using ASN.1 syntax. See SNMP, RMON, OID and ASN.1. data, credit-card and motor-vehicle information, and prescription-drug histories as they become available. A fuller, more traditional underwriting process would be required if the initial underwriting turns up contradictions, but even that could be completed in a short time, Stroup said. Insurers that are likely to be interested in eReassure are those that see it as a way for their existing distribution partners to access the middle-income market, Stroup said. "It certainly will be attractive to those who sell annuity products through banks and other outlets, as well as banks and non-bank financial-services organizations that aren't insurance companies and have tremendous customer bases," Stroup said. As a source of new revenue for Swiss Re, however, the alternative underwriting project is not likely to be significant in its first five years. "When you consider Swiss Re's global resources and its $2 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. of life insurance in force, it is inconceivable that this channel could be able to generate material amounts of revenue," Stroup said. But Swiss Re is making the investment due to the longer-term potential, just as the company is making investments in other markets with potential, such as launching businesses in India and China, he said.
Total Life Issued, Top Writers--2001
Total life insurance includes ordinary life, group life, credit life and
industrial life.
($ Thousands)
%
Rank Group AMB# Issued Change
1 Metropolitan Life & 70192 $202,619,457 15.2
Affiliated
2 CNA Insurance Group 70110 152,782,278 72.3
3 UnumProvident Corp 69743 140,237,513 41.5
4 American International 70342 122,127,193 8.5
Group
5 Prudential of America 70189 103,519,217 -6.3
Group
6 Hartford Life Inc 70116 96,528,938 -10.2
7 Northwestern Mutual Group 69515 88,686,060 7.3
8 Citigroup 70128 87,151,311 4.2
9 State Farm Group 70126 85,618,394 11.8
10 ING Group 70153 77,956,024 -1.4
11 Aegon USA Inc 69707 76,336,827 -36.9
12 Fortis Inc 70135 74,405,806 -1.8
13 Zurich Insurance Group 70130 72,239,582 14.2
14 New York Life Group 69714 72,039,705 8.0
15 GE Financial Assurance 69555 69,619,521 -45.9
Group
16 Allstate Financial 70106 68,235,940 -13.0
17 John Hancock Financial 70170 59,229,764 47.8
Srvcs Group
18 Minnesota Mutual Group 69763 56,267,148 62.7
19 Protective Life Corp 69728 46,578,847 -18.5
20 StanCorp Financial 70398 45,462,697 20.2
Group Inc
21 Aetna Inc 70202 45,366,959 -10.3
22 Guardian Life 69685 42,298,662 9.2
23 Legal & General 69539 41,028,833 -6.9
America Inc
24 Business Men's 06175 39,911,377 11.1
Assurance Co
25 MassMutual Financial 69702 38,830,897 4.3
Group
Top 25 Life Writers $2,005,078,950 4.1
Total Life Industry $2,928,620,112 1.3
Source: A.M. Best Co. data, as of June 17, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Group Life Issued, Top Writers--2001
Group life insurance is most often issued to a group of employees, but
it may be issued to any group, provided that it is not formed for the
purpose of buying insurance.
($ Thousands)
%
Rank Group AMB# Issued Change
1 Metropolitan Life & 70192 $142,822,104 18.9
Affiliated
2 UnumProvident Corp 69743 130,325,115 42.0
3 CNA Insurance Group 70110 124,608,738 385.8
4 Hartford Life Inc 70116 82,443,384 48.0
5 Prudential of America 70189 76,275,766 2.9
Group
6 StanCorp Financial 70398 45,395,813 21.4
Group Inc
7 Aetna inc 70202 45,307,771 -10.3
8 Minnesota Mutual Group 69763 44,014,578 87.3
9 ING Group 70153 34,159,552 31.7
10 American International 70342 28,670,682 30.5
Group
11 John Hancock Financial 70170 27,575,411 462.4
Srvcs Group
12 Fortis Inc 70135 25,426,279 2.4
13 Sun Life of Canada Group 69740 23,717,088 -5.9
14 Reliance Standard 69825 20,293,156 65.5
Life Group
15 Guardian Life 69685 20,092,016 20.6
16 Jefferson-Pilot Corp 70156 17,491,672 -17.4
17 Canada Life Assurance 69653 17,423,097 88.9
Group
18 Cigna Corp 70173 15,879,818 -59.2
19 Government Personnel 06470 14,834,690 999.9
Mutual
20 GE Financial Assurance 69555 11,072,695 -8.4
Group
21 UnitedHealth Inc 69973 10,090,262 53.3
22 Allstate Financial 70106 9,747,052 16.3
23 New York Life Group 69714 9,424,911 -18.4
24 Health Care Service Corp 69584 9,411,449 1.0
25 Liberty Life Assurance 06627 9,392,749 -12.9
of Boston
Top 25 Life Writers $995,895,848 34.8
Total Life Industry $1,149,709,673 24.5
Source: A.M. Best Co. data, as of June 17, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Total Life In Force, Top Writers--2001
Total life insurance includes ordinary life, group life, credit life and
industrial life.
($ Thousands)
%
Rank Group AMB# In Force Change
1 Metropolitan Life & 70192 $2,739,510,531 6.5
Affiliated
2 Prudential of America 70189 1,387,374,817 11.9
Group
3 Swiss Reinsurance Group 70176 1,225,212,577 46.4
4 ING Group 70153 1,073,383,656 10.8
5 Aegon USA Inc 69707 916,912,839 1.2
6 American International 70342 778,747,042 5.7
Group
7 Hartford Life Inc 70116 711,913,203 8.1
8 Lincoln National Corp 70351 705,606,805 -0.2
9 GE Financial Assurance 69555 694,323,968 27.0
Group
10 Northwestern Mutual Group 69515 691,012,520 9.0
11 CNA Insurance Group 70110 653,100,371 3.3
12 UnumProvident Corp 69743 620,653,366 9.4
13 New York Life Group 69714 603,151,099 16.8
14 Cigna Corp 70173 582,704,513 -1.5
15 Citigroup 70128 520,328,474 5.9
16 State Farm Group 70126 480,264,719 10.7
17 Allstate Financial 70106 446,796,378 7.2
18 Zurich Insurance Group 70130 435,017,513 10.1
19 Aetna Inc 70202 428,554,583 8.0
20 Employers Re Group 70214 428,378,852 11.1
21 Munich American 06746 387,966,945 25.2
Reassurance Co
22 MassMutual Financial 69702 327,704,653 8.6
Group
23 John Hancock Financial 70170 310,578,405 -9.3
Srvcs Group
24 Equitable Group 70194 307,823,509 -0.1
25 Minnesota Mutual Group 69763 296,657,729 21.2
Top 25 Life Writers $17,753,679,067 10.0
Total Life Industry $25,297,843,772 8.1
Source: A.M. Best Co. data, as of June 17, 2002. For Custom data, please
call (908) 439-2200, ext. 5383.
Group Life In Force, Top Writers--2001
Group life insurance is most often issued to a group of employees, but
it may be issued to any group, provided that it is not formed for the
purpose of buying insurance.
($ Thousands)
%
Rank Group AMB# In Force Change
1 Metropolitan Life & 70192 $1,491,190,889 4.2
Affiliated
2 Prudential of America 70189 925,537,837 20.6
Group
3 UnumProvident Corp 69743 568,392,064 10.2
4 Cigna Corp 70173 467,362,283 -0.1
5 Aetna Inc 70202 423,575,621 8.3
6 Hartford Life Inc 70116 366,301,736 9.8
7 ING Group 70153 262,033,938 12.2
8 American International 70342 234,164,410 8.6
Group
9 Minnesota Mutual Group 69763 224,880,412 27.3
10 Swiss Reinsurance Group 70176 145,183,393 155.8
11 StanCorp Financial 70398 142,542,886 16.6
Group Inc
12 New York Life Group 69714 142,518,949 66.2
13 CNA Insurance Group 70110 141,430,140 78.5
14 Health Care Service Corp 69584 112,745,194 0.3
15 Fortis Inc 70135 108,938,500 -3.7
16 Zurich Insurance Group 70130 99,977,971 5.5
17 Sun Life of Canada Group 69740 97,401,961 13.1
18 John Hancock Financial 70170 84,981,841 -38.4
Srvcs Group
19 Mutual of Omaha Group 70203 80,683,736 13.2
20 Guardian Life 69685 80,101,185 -1.7
21 Reliance Standard 69825 78,216,800 12.0
Life Group
22 Great-West Life Group 70366 77,039,769 -22.1
23 WellPoint Health 70064 72,198,112 2.9
Networks Inc
24 Principal Life 06150 70,477,331 -15.1
Insurance Co
25 GE Financial Assurance 69555 67,192,150 19.1
Group
Top 25 Life Writers $6,565,069,108 10.3
Total Life Industry $7,798,614,165 7.8
Source: A.M. Best Co. data, as of June 17, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Ordinary Life Issued, Top Life Writers--2001
Ordinary life insurance may be kept in force for a person's whole life
and pays a benefit upon the person's death. Premiums for the policy are
paid continuously as long as the insured lives.
($ Thousands)
%
Rank Group AMB# Issued Change
1 Northwestern Mutual Group 69515 $88,686,060 7.3
2 State Farm Group 70126 84,955,773 12.1
3 American International Group 70342 82,622,942 5.4
4 Citigroup 70128 79,613,025 8.3
5 Zurich Insurance Group 70130 63,858,284 10.4
6 New York Life Group 69714 62,614,794 13.5
7 Aegon USA Inc 69707 62,378,774 -39.9
8 Metropolitan Life & Affiliated 70192 59,797,353 7.1
9 GE Financial Assurance Group 69555 58,488,177 -49.8
10 Allstate Financial 70106 56,089,632 -17.1
11 ING Group 70153 43,796,472 -17.6
12 Legal & General America Inc 69539 41,020,649 -6.9
13 Business Men's Assurance Co 06175 39,822,456 21.1
14 Protective Life Corp 69728 39,026,733 -21.2
15 Lincoln National Corp 70351 33,174,225 -10.4
16 Sammons Financial Group 69731 33,058,355 12.0
17 John Hancock Financial Srvcs 70170 31,654,353 -10.0
Group
18 MassMutual Financial Group 69702 30,114,960 0.1
19 CNA Insurance Group 70110 28,173,540 -55.3
20 Prudential of America Group 70189 27,000,268 -25.0
21 Torchmark Corp 70265 23,994,157 3.7
22 Guardian Life 69685 22,206,646 0.6
23 Equitable Group 70194 19,242,632 -6.1
24 MONY Group 70198 18,497,654 14.4
25 Nationwide Group 70350 17,537,159 -20.8
Top 25 Life Writers $1,147,425,073 -10.5
Total Life Industry $1,617,333,566 -9.8
Source: A.M. Best Co. data, as of June 17, 2002. For custom data, please
call (908) 439 2200, ext 5383.
Term Life Issued, Top Life Writers--2001
Term life insurance provides protection for a specified period of time.
It pays a benefit only if the insured's death occurs during the coverage
period.
($ Thousands)
%
Rank Group AMB# Issued Change
1 Citigroup 70128 $72,266,732 7.8
2 State Farm Group 70126 69,561,918 11.9
3 Northwestern Mutual Group 69515 60,378,150 14.7
4 American International Group 70342 57,205,725 8.4
5 Zurich Insurance Group 70130 56,754,575 11.2
6 Legal & General America Inc 69539 40,742,837 -6.2
7 Business Men's Assurance Co 06175 39,739,095 21.1
8 Allstate Financial 70106 39,393,078 -27.2
9 Aegon USA Inc 69707 37,833,180 -46.3
10 New York Life Group 69714 36,417,732 13.8
11 Sammons Financial Group 69731 30,211,479 14.1
12 CNA Insurance Group 70110 26,356,959 -47.9
13 Metropolitan Life & Affiliated 70192 22,271,819 9.3
14 Protective Life Corp 69728 20,605,838 -29.8
15 Lincoln National Corp 70351 20,312,376 -6.6
16 John Hancock Financial Srvcs 70170 19,071,665 -11.9
Group
17 MassMutual Financial Group 69702 18,643,828 57.1
18 ING Group 70153 17,312,692 -27.3
19 USAA Life Group 70364 16,506,302 -4.3
20 Prudential of America Group 70189 15,861,498 -22.1
21 MONY Group 70198 13,378,577 20.0
22 Aflac Inc Group 69824 12,890,911 -14.3
23 Southern Farm Bureau Group 70169 12,580,400 138.9
24 Torchmark Corp 70265 11,977,030 -5.5
25 Old Mutual US Life Holdings 70403 11,258,915 49.7
Top 25 Total $779,533,311 -4.2
Total Industry $1,017,024,347 -3.6
Source: A.M. Best Co. data, as of June 17, 2002. For custom data, please
call (908) 439-2200 ext. 5383.
Ordinary Life in Force, Top Life Writers--2001
Ordinary life insurance may be kept in force for a person's whole life
and pays a benefit upon the person's death. Premiums for the policy are
paid continuously as long as the insured lives.
($ Thousands)
%
Rank Group AMB# In Force Change
1 Metropolitan Life & Affiliated 70192 $1,239,984,780 10.1
2 Swiss Reinsurance Group 70176 1,079,189,884 38.4
3 Aegon USA Inc 69707 843,563,782 4.2
4 ING Group 70153 810,148,442 10.4
5 Northwestern Mutual Group 69515 690,319,957 9.0
6 Lincoln National Corp 70351 681,524,036 0.5
7 GE Financial Assurance Group 69555 624,731,403 28.7
8 American International Group 70342 516,943,142 4.7
9 CNA Insurance Group 70110 511,670,231 -7.5
10 Citigroup 70128 502,033,010 9.7
11 State Farm Group 70126 466,542,066 11.0
12 New York Life Group 69714 460,632,150 7.0
13 Prudential of America Group 70189 456,896,000 -2.1
14 Allstate Financial 70106 414,144,517 7.4
15 Employers Re Group 70214 412,902,552 12.8
16 Munich American Reassurance Co 06746 382,614,549 25.5
17 Hartford Life Inc 70116 345,611,467 6.4
18 Zurich Insurance Group 70130 331,024,266 11.6
19 Equitable Group 70194 307,148,770 -0.1
20 MassMutual Financial Group 69702 278,628,757 6.2
21 Manulife Financial 69542 247,468,176 0.1
22 John Hancock Financial Srvcs 70170 225,588,402 10.3
Group
23 Allianz Insurance Group 70187 212,719,509 14.6
24 Protective Life Corp 69728 194,196,208 21.2
25 Sammons Financial Group 69731 182,327,671 11.7
Top 25 Life Writers $12,418,553,727 10.1
Total Life Industry $17,200,111,302 8.6
Source: A.M. Best Co. data, as of June 17, 2002. For custom data, please
call (908) 439-2200, ext. 5283.
Term Life In Force, Top Life Writers--2001
Term life insurance provides protection for a specified period of time.
It pays a benefit only if the insured's death occurs during the coverage
period.
($ Thousands)
%
Rank Group AMB# In Force Change
1 Swiss Reinsurance Group 70176 $988,942,185 46.0
2 Metropolitan Life & Affiliated 70192 780,475,388 13.0
3 Aegon USA Inc 69707 596,254,370 6.2
4 ING Group 70153 565,207,220 57.4
5 Lincoln National Corp 70351 532,719,355 -1.7
6 Citigroup 70128 458,722,960 9.4
7 CNA Insurance Group 70110 413,182,618 58.0
8 Employers Re Group 70214 358,123,974 4.6
9 Northwestern Mutual Group 69515 338,643,200 12.2
10 Munich American Reassurance Co 06746 304,118,507 26.5
11 State Farm Group 70126 290,367,861 15.5
12 American International Group 70342 268,317,805 9.4
13 Allstate Financial 70106 260,639,644 8.0
14 Zurich Insurance Group 70130 238,616,051 16.3
15 Allianz Insurance Group 70187 194,795,169 16.0
16 Prudential of America Group 70189 180,596,405 -0.8
17 New York Life Group 69714 176,902,351 8.9
18 GE Financial Assurance Group 69555 168,915,803 75.1
19 American United Life Group 70399 168,107,375 5.4
20 Manulife Financial 69542 142,011,852 1.0
21 Business Men's Assurance Co 06175 134,995,319 24.4
22 Legal & General America Inc 69539 126,515,949 36.9
23 Sammons Financial Group 69731 124,777,994 19.3
24 Berkshire Hathaway Group 70158 118,523,061 5.6
25 Equitable Group 70194 110,623,149 -3.6
Top 25 Total $8,041,095,565 18.6
Total Industry $10,186,895,262 15.2
Source: A.M. Best Co. data, as of June 17, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Credit Life Issued, Top Writers--2001
Credit life insurance is a group life insurance contract whereby a
creditor is protected if the insured dies before the indebtedness is
paid in full.
($ Thousands)
%
Rank Group AMB# Issued Change
1 Fortis Inc 70135 $43,509,393 -3.0
2 Cuna Mutual Group 70262 21,627,417 -17.0
3 Household Insurance Group 69620 12,051,238 24.2
4 American International Group 70342 10,833,569 -11.3
5 American National Group 70166 8,078,527 1.6
6 Citigroup 70128 7,533,913 -22.2
7 Protective Life Corp 69728 7,419,447 -0.3
8 American Modern Insurance 70206 5,405,797 125.8
Group
9 Aegon USA Inc 69707 5,355,352 -8.9
10 Minnesota Mutual Group 69763 3,603,359 -5.1
11 Life of the South Group 69913 3,030,813 8.4
12 BankAmerica Group 70380 2,645,831 -72.6
13 Combined Specialty A&H Group 70178 2,419,792 -4.3
14 Allstate Financial 70106 2,399,256 2.5
15 Service Life & Casualty 07992 2,212,422 -8.4
Insurance Co
16 Zurich Insurance Group 70130 2,016,392 3.4
17 Central States H&L Group 70363 1,822,320 6.5
18 JMIC Life Group 69852 1,737,307 7.5
19 American United Life Group 70399 1,728,081 -6.7
20 Centurion Life Insurance Co 06276 1,358,033 -16.7
21 Guarantee Trust Group 69541 1,306,062 4.3
22 Enterprise Life Insurance Co 08919 1,015,678 38.4
23 Individual Assurance Group 69964 762,232 38.3
24 Southern Pioneer Group 70023 695,772 5.8
25 Amerco 70367 656,013 -22.7
Top 25 Life Writers $151,224,016 -7.0
Total Life Industry $161,576,691 -7.7
Source: A.M. Best Co. data, as of June 17, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Credit Life In Force, Top Writers--2001
Credit life insurance is a group life insurance contract whereby a
creditor is protected if the insured dies before the indebtedness is
paid in full.
($ Thousands)
%
Rank Group AMB# In Force Change
1 Fortis Inc 70135 $45,017,030 -13.8
2 Cuna Mutual Group 70262 39,837,032 -7.5
3 American International Group 70342 25,763,848 2.4
4 Citigroup 70128 16,673,711 -45.6
5 Household Insurance Group 69620 15,943,216 26.7
6 Protective Life Corp 69728 11,590,302 7.8
7 Combined Specialty A&H Group 70178 11,249,691 -11.4
8 Aegon USA Inc 69707 8,487,599 -7.8
9 Minnesota Mutual Group 69763 7,479,537 0.2
10 American National Group 70166 7,345,001 0.9
11 Employers Re Group 70214 5,687,140 -36.0
12 Allstate Financial 70106 5,647,939 8.2
13 Central States H&L Group 70363 5,243,965 0.6
14 Metropolitan Life & Affiliated 70192 5,122,649 -58.3
15 Service Life & Casualty 07992 4,205,811 7.9
Insurance Co
16 Zurich Insurance Group 70130 4,015,276 1.1
17 JMIC Life Group 69852 3,887,573 4.3
18 Centurion Life Insurance Co 06276 3,112,731 -8.9
19 Life of the South Group 69913 3,045,110 5.1
20 American Road Insurance Group 70200 2,921,614 -10.6
21 American United Ufe Group 70399 2,601,944 -8.5
22 Guardian Life 69685 2,375,675 0.8
23 GE Financial Assurance Group 69555 2,292,992 -50.7
24 BankAmerica Group 70380 2,198,044 -41.8
25 Guarantee Trust Group 69541 2,116,924 -1.4
Top 25 Life Writers $243,862,354 -12.8
Total Life Industry $283,006,227 -12.5
Source: A.M. Best Co. data, as of June 17, 2002. For custom data, please
call (908)439-2200, ext. 5383.
RELATED ARTICLE: Reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. : Doctor Statements Replaceable, But Not Medical Tests Reinsurance Group of America Inc., a subsidiary of MetLife Inc., sees value in new online underwriting tools, but not at the expense of blood and body-fluid testing. "The ability to replace blood and urine urine, clear, amber-colored fluid formed by the kidneys that carries metabolic wastes out of the body (see urinary system). As the blood circulates it collects excretory products from the tissues and these substances are separated from the blood by the kidneys and tests is difficult, if not impossible," said Alan Hobbs, vice president of automated underwriting solutions at the Chesterfield Chesterfield, city (1991 pop. 73,352) and district, Derbyshire, central England. An important industrial center, Chesterfield produces mining equipment, railroad cars, metal products, glass, and pottery. , Mo.-based reinsurer. "If our client companies want to replace those tests with something else, we tell them what the tradeoffs are in mortality results. We tell them there will be additional claims and higher mortality costs. Then we let them decide what is important." Some insurers in special markets decide that speed underwriting is important, Hobbs said. They include companies in the brokerage market that compete on lowest price. At banks, however, price is "not the overriding (programming) overriding - Redefining in a child class a method or function member defined in a parent class. Not to be confused with "overloading". concern." But speed is often a concern for the industry as a whole, and Hobbs said attending-physician statements from doctors cause both delays and difficulties. "Insurers want to get around the [attending-physician statements] log jam log jam Noun Chiefly US & Canad 1. a blockage caused by the crowding together of logs floating in a river 2. ," he said. "Often, it takes a number of days, if not a number of weeks, to obtain the [attending-physician statements]. Blood tests do not take that many days, so it's not been as much of a focus." For RGA RGA Reinsurance Group of America RGA Return Goods Authorization RGA Republican Governors Association RGA Residual Gas Analyzer RGA Royal Garrison Artillery RGA Restricted Growth Association (UK) RGA Rate Gyro Assembly , the online tools are a good substitute for the attending-physician statements. Prescription-drug databases and motor-vehicle records are more available now to go along with Medical Information Bureau data to verify the accuracy of information provided by clients. Those tools, combined with personal interviews using drop-down software to further probe suspicious answers to scripted questions, provide underwriting results equal in quality to those developed with attending physician statements, Hobbs said. To put these new tools to work, RGA has embodied em·bod·y tr.v. em·bod·ied, em·bod·y·ing, em·bod·ies 1. To give a bodily form to; incarnate. 2. To represent in bodily or material form: its underwriting knowledge in software it can sell to client companies, a project it began several years ago. Hobbs said that a Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. carrier has been using the software since the beginning of the year and a large carrier in the United States has recently begun to use it. He said a couple of European companies It may never be fully completed or, depending on its its nature, it may be that it can never be completed. However, new and revised entries in the list are always welcome. This is a list of companies from the countries in the European Union. have implemented it, and RGA is close to signing a few deals in Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. . "We are actively marketing it, and we expect a half dozen companies to be using it by the end of the year," he said. Besides enhancing underwriting speed, the software offers a solution to direct writers that have had trouble filling underwriting positions, Hobbs said. "It's part of the reason we've done this," he said. "This will help them manage and underwrite business that comes into their doors and allows them to not have to add staff and to handle the work with fewer underwriters. We believe long term there's a vital role for experienced underwriters to deal with complicated, sophisticated cases, but there are a huge amount of cases submitted each day in which the applicant is healthy and is not buying large face amounts. A simple automated tool with underwriting rules can make the decision." The software also allows producers to do more of what they do best: sell. Stock brokers have proven to be very good at selling equities, and therefore variable insurance products. Banks are better at simpler, nonequity transactions. Hobbs is among those who believe faster underwriting can help insurers reach more middle-income Americans. Smaller face amounts and lower premiums than in the affluent market have made doing business in this individual market difficult for insurers, since costs for sales, underwriting and administration are largely fixed. "So reducing costs through these new tools will help," he said. "What remains to be seen is whether insurers can reduce the sales cost." |
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