Out with the new.Trying something for the first time can be scary, and insurers are known for their caution. Yet, sometimes a bold soul steps forward and introduces a concept or a product or a process that is so good that other insurers adapt it, or at least wish they could, and that is how progress is born. "The perception that the insurance industry is slow to change has a portion of reality, and a part that isn't true," said Eric Speer, leader of the Tillinghast Americas region for Towers Perrin Towers Perrin is a global professional services firm. It was established 1 March 1934 as Towers, Perrin, Forster & Crosby. The umbrella name of Towers Perrin was adopted in 1987. . "Insurers have not kept up to speed with other 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. in regard to business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . In key processes, such as 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. and marketing, the industry has not embraced technology to the degree that others have. But there has been significant innovation in other areas, including product design and the use of the capital markets." For example, "new annuity product designs such as guaranteed benefits are a very innovative response to a set of issues that consumers and distributors had with that product," he said. "And insurers are moving aggressively into securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. , such as securitization of Triple X reserves." For our cover story this month, "Something New Under the Sun" (page 14), we've identified seven insurers who tried something for the first time and discovered it could work. Their contributions to the industry include products, modeling, underwriting techniques and more. Going forward, if insurers are to drive more innovation, they "have to increase their sophistication so·phis·ti·cate v. so·phis·ti·cat·ed, so·phis·ti·cat·ing, so·phis·ti·cates v.tr. 1. To cause to become less natural, especially to make less naive and more worldly. 2. in risk modeling, software and computing powers so they can understand, model and aggregate risks better," Speer said. "They need to focus on enterprise risk, and that should cause innovation." Year In, Year Out As part of Best's Review's annual looking-ahead-to-next-year coverage, we're trying something new ourselves. Beginning on page 29, "Business as Never Before" describes seven 2004 court cases that had either a decision or significant developments that will affect the way insurers do business. But if you're 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. the Top 10 Insurance News Stories of 2004, you'll tend them in The last Word. Sally Whitney is editor. You may reach her at (908) 439-2200, Ext. 5340, by writing to A.M. Best Co., Ambest Road, Oldwick, NJ 08858, or by e-mail at sally.whitney@ambest.com. The e-mail actress for Best's Review is bestreview@ambest.com. |
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