Tuesday, May 26, 2009
Publishment of Zanjoy.com
A great web site has been published about Insurance, business and Banking by Mr. Reaz Mahmud Shezan. You will find various types of business news, insurance news, stock news, banking news, financial news as well as all types of money related news. Tale a visit on this Web site : http://zanjoy.com/
Sunday, May 24, 2009
Buildings Insurance Claims Crisis - Sewage is the New Subsidence
Buildings Insurance is in the proverbial again with what could potentially turn out to be the biggest claim reason since the subsidence crisis of the 1980's and 90's.
The reason? Sewage - or more precisely the sewer mains pipes that lead from every property in the UK to the main street sewage system.
In the 1950's through to the 1970's a certain type of sewage pipe called a 'Pitch Fibre pipe' was widely used in new and existing construction work as a replacement for clay pipes which were three times as expensive and required specialist installation. Published figures from the time suggest that "if laid correctly, and not subject to adverse ground conditions, pitch fibre pipes can be expected to have a design life of up to 40 years". If poorly installed, it was suggested that the life expectancy of a pitch fibre pipe would be significantly shorter.
All Pitch Fibre Pipes laid for sewerage in the UK have now reached or passed their design life expectancy.
Pitch Fibre Pipes were made from wood fibre impregnated with coal tar, and have performed adequately when dealing with normal waste water. It soon became apparent that Pitch Fibre pipes were susceptible to the delamination of their inner surface, ruining the structural integrity of the pipes. Pitch Fibre pipes have been found to react badly when subjected to large quantities of hot water, and to oils and fats, which can soften the tar and cause deformation and leaks. It was also discovered that under normal conditions, they were susceptible to collapse under applied loading, sooner than pipes made of more rigid materials. The use of pressure washing drains has also exacerbated the problem of deterioration.
a pitch fibre sewer pipe collapse
Pitch Fibre Pipes (incredibly) were British Standard approved (BS2760), although this was withdrawn on 15 June 1987.
Home Insurance claims Nemesis
The use of pitch fibre pipes was very widespread through the UK and up to 50,000 properties are now suffering problems relating to pitch fibre pipes every year and making claims on home buildings insurance policies. The number of Pitch fibre claims is rising dramatically each year so much so that, like subsidence, many Home Insurance companies are refusing to cover claims under buildings insurance for sewer collapse associated with pitch fibre. Many others will claim 'normal wear and tear' and refuse to pay a claim. Howerver following advice from the UK's Insurance Ombudsman’s , some Home Insurance Companies are now paying for these drains to be repaired.
Would you know if you had Pitch Fibre Sewers? Probably not until you have a blockage or leakage.
Insurance Blogger is warning the large number of people who compare home insurance premiums on the Internet and change provider each year, to check very carefully if the new policy covers Pitch Fibre Collapse.
The cost of replacement of pitch fibre piping with modern materials can be anything from £2000 to £10000 or more depending upon the length and complexity of the run and the surface materials.
You may be jointly liable for damage to pitch fibre sewage pipes that are not even on your property if your sewers join to neighbours, so it is oimportant when purchasing home insurance that pitch fibre is covered, otherwise you may be presented with a large unwarranted bill.
As the pitch fibre pipe systems gradually deteriorate, those responsible for the sewers find themselves frequently paying out for repairs. Check your pipes and home buildings insurance today!
The reason? Sewage - or more precisely the sewer mains pipes that lead from every property in the UK to the main street sewage system.
In the 1950's through to the 1970's a certain type of sewage pipe called a 'Pitch Fibre pipe' was widely used in new and existing construction work as a replacement for clay pipes which were three times as expensive and required specialist installation. Published figures from the time suggest that "if laid correctly, and not subject to adverse ground conditions, pitch fibre pipes can be expected to have a design life of up to 40 years". If poorly installed, it was suggested that the life expectancy of a pitch fibre pipe would be significantly shorter.
All Pitch Fibre Pipes laid for sewerage in the UK have now reached or passed their design life expectancy.
Pitch Fibre Pipes were made from wood fibre impregnated with coal tar, and have performed adequately when dealing with normal waste water. It soon became apparent that Pitch Fibre pipes were susceptible to the delamination of their inner surface, ruining the structural integrity of the pipes. Pitch Fibre pipes have been found to react badly when subjected to large quantities of hot water, and to oils and fats, which can soften the tar and cause deformation and leaks. It was also discovered that under normal conditions, they were susceptible to collapse under applied loading, sooner than pipes made of more rigid materials. The use of pressure washing drains has also exacerbated the problem of deterioration.
a pitch fibre sewer pipe collapse
Pitch Fibre Pipes (incredibly) were British Standard approved (BS2760), although this was withdrawn on 15 June 1987.
Home Insurance claims Nemesis
The use of pitch fibre pipes was very widespread through the UK and up to 50,000 properties are now suffering problems relating to pitch fibre pipes every year and making claims on home buildings insurance policies. The number of Pitch fibre claims is rising dramatically each year so much so that, like subsidence, many Home Insurance companies are refusing to cover claims under buildings insurance for sewer collapse associated with pitch fibre. Many others will claim 'normal wear and tear' and refuse to pay a claim. Howerver following advice from the UK's Insurance Ombudsman’s , some Home Insurance Companies are now paying for these drains to be repaired.
Would you know if you had Pitch Fibre Sewers? Probably not until you have a blockage or leakage.
Insurance Blogger is warning the large number of people who compare home insurance premiums on the Internet and change provider each year, to check very carefully if the new policy covers Pitch Fibre Collapse.
The cost of replacement of pitch fibre piping with modern materials can be anything from £2000 to £10000 or more depending upon the length and complexity of the run and the surface materials.
You may be jointly liable for damage to pitch fibre sewage pipes that are not even on your property if your sewers join to neighbours, so it is oimportant when purchasing home insurance that pitch fibre is covered, otherwise you may be presented with a large unwarranted bill.
As the pitch fibre pipe systems gradually deteriorate, those responsible for the sewers find themselves frequently paying out for repairs. Check your pipes and home buildings insurance today!
12800 UK homes repossesed in the first quarter of 2009
Despite the UK government saying they eould help keep people in their homes there were over 12000 repossessions in the UK in first quarter of 2009.
There were 12,800 repossessions through the courts by first-charge on the property mortgage lenders and banks, in the first quarter of this year, according to the Council of Mortgage Lenders (CML).
This compares with 10,400 in the fourth quarter of last year, and 8,500 in the first quarter of 2008. Insuranceblogger is disgusted that the people who created the credit crunch crisis for those poor repossessed are so quick to resort to the courts!
Although repossessions are still rising, the CML now thinks its earlier 75,000 repossessions forecast looks pessimistic for the year as a whole, and expects to revise the figure downwards in its next housing market forecast update later this summer.
The number of mortgages in arrears continued to rise both months in arrears and as a percentage of the total outstanding mortgage value.
The number of existing mortgages has declined from around 11.7 million to around 11.1 million.
According to a suit from the CML -
"The key message continues to be: talk to your lender as soon as you identify difficulties emerging, and take advice from an independent money adviser if you have other debt issues as well as your mortgage. Lenders do not want to repossess if a realistic alternative solution can be found."
Hmm - have a look at this, especially if you are being threatened by debt collectors
Courts, bailiffs, debt collectors and repossesions can be avoided with mortgage protection insurance which will keep a roof over your head even if you lose your job!. Act now before its too late!
There were 12,800 repossessions through the courts by first-charge on the property mortgage lenders and banks, in the first quarter of this year, according to the Council of Mortgage Lenders (CML).
This compares with 10,400 in the fourth quarter of last year, and 8,500 in the first quarter of 2008. Insuranceblogger is disgusted that the people who created the credit crunch crisis for those poor repossessed are so quick to resort to the courts!
Although repossessions are still rising, the CML now thinks its earlier 75,000 repossessions forecast looks pessimistic for the year as a whole, and expects to revise the figure downwards in its next housing market forecast update later this summer.
The number of mortgages in arrears continued to rise both months in arrears and as a percentage of the total outstanding mortgage value.
The number of existing mortgages has declined from around 11.7 million to around 11.1 million.
According to a suit from the CML -
"The key message continues to be: talk to your lender as soon as you identify difficulties emerging, and take advice from an independent money adviser if you have other debt issues as well as your mortgage. Lenders do not want to repossess if a realistic alternative solution can be found."
Hmm - have a look at this, especially if you are being threatened by debt collectors
Courts, bailiffs, debt collectors and repossesions can be avoided with mortgage protection insurance which will keep a roof over your head even if you lose your job!. Act now before its too late!
Government Loans for First Time buyers
Those self serving suits from around Threadneedle Street who we saw exposed in Channel 4's excellent documentary on non-executive banking directors, have been racking their brains recently on how to get the first time buyer market moving.
Laughing into their cafe crappe they must be rubbing their hands in glee that the public furore has shifted onto their erstwhile employers - the MP's of Westminster or as Sky TV would have us call it 'The Rotten Government'
So on the back of the Speaker Bashing, the Government in the guise of Lloyds TSB has today launched a new first time buyer mortgage product called- ‘Lend a Hand’ (who thought of that?) - offering 95% loan to value (LTV)
‘Lend a Hand’ or 'Cop for Your Kids' as it is soon to be known, which is obviously aimed at the middle classes with kids still at home, offers first time buyers a 95% loan to value (LTV) mortgage by taking a legal charge on a savings account belonging to their parents, grandparents, rich friends or anyone else willing to cough up the dough to get the kids a place to live.
The new product is a fixed rate mortgage at 4.39% for 3 years, and is nearly £100 a month less than the industry average 90% mortgage rate at 5.98%.
Hmm - isn't the base rate currently 0.5%?
Lloyds are still looking for a 25% deposit but they are allowing this to be made up through a combination of a minimum 5% deposit by the first time buyers and the remainder from the parents or backers savings account.
For example,on a £100,000 property, a 95% LTV mortgage of £95,000 is provided by Lloyds TSB at a three-year fixed rate of 4.39% with a £995 fee. £5,000 is provided by the first-time buyer as a deposit for the property, £20,000 is provided by parents, grandparents or friends and held in the Lloyds TSB ‘Lend a Hand’ savings account earning a fixed rate of 3.5% for 42 months.
Why couldn't they offer the rate Tax-free like an ISA if they really want to encourage people to get involved ?
So what are the multiples of salary limits and can the first time buyer really afford the mortgage repayments?
Furthermore Insurance Blogger is amazed that the Government thinks that there are lots of people have got £20 grand to spare during the current credit crisis and recession, plus a possible further five thousand on top if they really want their kids out the house?
At least Lloyds TSB isn't allowed to sell mortgage payment protection insurance at the point of mortgage sale any more! Granny's pension wouldn't stretch to that!
Laughing into their cafe crappe they must be rubbing their hands in glee that the public furore has shifted onto their erstwhile employers - the MP's of Westminster or as Sky TV would have us call it 'The Rotten Government'
So on the back of the Speaker Bashing, the Government in the guise of Lloyds TSB has today launched a new first time buyer mortgage product called- ‘Lend a Hand’ (who thought of that?) - offering 95% loan to value (LTV)
‘Lend a Hand’ or 'Cop for Your Kids' as it is soon to be known, which is obviously aimed at the middle classes with kids still at home, offers first time buyers a 95% loan to value (LTV) mortgage by taking a legal charge on a savings account belonging to their parents, grandparents, rich friends or anyone else willing to cough up the dough to get the kids a place to live.
The new product is a fixed rate mortgage at 4.39% for 3 years, and is nearly £100 a month less than the industry average 90% mortgage rate at 5.98%.
Hmm - isn't the base rate currently 0.5%?
Lloyds are still looking for a 25% deposit but they are allowing this to be made up through a combination of a minimum 5% deposit by the first time buyers and the remainder from the parents or backers savings account.
For example,on a £100,000 property, a 95% LTV mortgage of £95,000 is provided by Lloyds TSB at a three-year fixed rate of 4.39% with a £995 fee. £5,000 is provided by the first-time buyer as a deposit for the property, £20,000 is provided by parents, grandparents or friends and held in the Lloyds TSB ‘Lend a Hand’ savings account earning a fixed rate of 3.5% for 42 months.
Why couldn't they offer the rate Tax-free like an ISA if they really want to encourage people to get involved ?
So what are the multiples of salary limits and can the first time buyer really afford the mortgage repayments?
Furthermore Insurance Blogger is amazed that the Government thinks that there are lots of people have got £20 grand to spare during the current credit crisis and recession, plus a possible further five thousand on top if they really want their kids out the house?
At least Lloyds TSB isn't allowed to sell mortgage payment protection insurance at the point of mortgage sale any more! Granny's pension wouldn't stretch to that!
Saturday, May 23, 2009
AIG sells US auto insurance unit for $1.9 bln
NEW YORK (AFP) — American International Group, the insurance giant surviving on US government aid, said Thursday it had sold its US auto insurance business to Zurich Financial Services for 1.9 billion dollars.
AIG said in a statement that Swiss-based Zurich had agreed to buy 21st Century Insurance Group, the units comprising AIG's US personal auto insurance business.
ZFS unit Farmers Group will acquire 21st Century by paying AIG 1.5 billion dollars in cash and 400 million dollars in euro-denominated capital notes backed by ZFS's main operating unit, Zurich Insurance Company.
Farmers Group also will assume 21st Century's outstanding debt of 100 million dollars, AIG said.
The Wilmington, Delaware-based 21st Century includes the former AIG Direct business and Agency Auto business. The company operates in 49 states and the capital city of Washington.
In 2008, 21st Century reported total premiums of 3.6 billion dollars, including 2.7 billion dollars in direct sales and 900 million dollars through independent agents.
The transaction excludes AIG's Private Client Group, which provides property and casualty insurance to wealthy clients, AIG said.
The deal is "subject to satisfaction of certain conditions, including approvals by appropriate regulatory authorities," the bailed-out US insurer said.
The government has pumped 180 billion dollars into AIG to keep it afloat, the largest single recipient of federal bailout money, giving the US Treasury effective control of what had been the world's largest insurer.
AIG said in a statement that Swiss-based Zurich had agreed to buy 21st Century Insurance Group, the units comprising AIG's US personal auto insurance business.
ZFS unit Farmers Group will acquire 21st Century by paying AIG 1.5 billion dollars in cash and 400 million dollars in euro-denominated capital notes backed by ZFS's main operating unit, Zurich Insurance Company.
Farmers Group also will assume 21st Century's outstanding debt of 100 million dollars, AIG said.
The Wilmington, Delaware-based 21st Century includes the former AIG Direct business and Agency Auto business. The company operates in 49 states and the capital city of Washington.
In 2008, 21st Century reported total premiums of 3.6 billion dollars, including 2.7 billion dollars in direct sales and 900 million dollars through independent agents.
The transaction excludes AIG's Private Client Group, which provides property and casualty insurance to wealthy clients, AIG said.
The deal is "subject to satisfaction of certain conditions, including approvals by appropriate regulatory authorities," the bailed-out US insurer said.
The government has pumped 180 billion dollars into AIG to keep it afloat, the largest single recipient of federal bailout money, giving the US Treasury effective control of what had been the world's largest insurer.
Aflac Announces New Integrated Marketing Campaign
COLUMBUS, Ga., /PRNewswire/ -- Aflac today announced it is launching a new integrated marketing campaign. The marketing effort positions Aflac products as essential components of Americans' financial security plans during uncertain economic times.
The multi-faceted campaign combines a new tagline, We've Got You Under Our Wing,(SM) with a forward-thinking print and online advertising campaign, a blockbuster movie tie-in and social networking component.
The We've Got You Under Our Wing tagline will debut in an attention-grabbing marketing effort called "Get the Aflacts." The campaign, featuring a clever twist on the company's name, gives people not just the facts, but the Aflacts.
The campaign focuses on the way Aflac differs from major medical insurance and how the company provides cash benefits that policyholders may use however they choose when an illness or accident occurs. For example:
• Aflac is insurance for daily living. Major medical insurance payments are paid directly to doctors and hospitals, but Aflac payments are directed to you.
• Aflac benefit checks may be used to help pay the mortgage, the car payment, or any other bills when you are sick or hurt.
• Your Aflac policy belongs to you, not to your company. If you lose or leave your job, your coverage can go with you at no increase in cost.
"We're giving people facts, not fluff," said Jeff Charney, Aflac senior vice president and chief marketing officer. "We are telling Americans we understand their needs and will be here when they need us most. In short, we've got them under our wing."
The new tagline will be featured in three new Aflac television commercials this year - commercials that will build on the familiarity and likeability of the iconic Aflac Duck. One of the commercials is being produced with the Academy-Award winning Pixar Animation Studio and features characters from the soon-to-be released film, UP.
"We're excited about our expanded presence on Facebook - and particularly about the fact that everything on our page will be presented from 'a duck's eye view,'" Charney said. "We believe that people will enjoy seeing the world from his perspective."
In addition to the new marketing campaign, Aflac has added new products and revised existing ones to make them available to more businesses, individuals and age groups. "We are making room for more people under our wing," Charney said.
About Aflac
For more than 50 years, Aflac products have given policyholders the opportunity to direct cash where it is needed most when a life-interrupting medical event causes financial challenges. Aflac is the number one provider of guaranteed-renewable insurance in the United States and the number one insurance company in terms of individual insurance policies in force in Japan. Our insurance products provide protection to more than 40 million people worldwide. Aflac has been recognized by Ethisphere magazine as one of the World's Most Ethical Companies for three consecutive years and was also named by the Reputation Institute as the Most Respected Company in the Global Insurance Industry in 2008. In 2009 Fortune magazine recognized Aflac as one of the 100 Best Companies to Work For in America for the eleventh consecutive year. Aflac appears on Hispanic Enterprise magazine's list of the 50 Best Companies for Supplier Diversity and on Black Enterprise magazine's list of the 40 Best Companies for Diversity. Aflac was also named by Forbes magazine as America's Best-Managed Company in the insurance category. Aflac Incorporated is a Fortune 500 company listed on the New York Stock Exchange under the symbol AFL (NYSE: AFL - News). To find out more about Aflac, visit www.aflac.com.
The multi-faceted campaign combines a new tagline, We've Got You Under Our Wing,(SM) with a forward-thinking print and online advertising campaign, a blockbuster movie tie-in and social networking component.
The We've Got You Under Our Wing tagline will debut in an attention-grabbing marketing effort called "Get the Aflacts." The campaign, featuring a clever twist on the company's name, gives people not just the facts, but the Aflacts.
The campaign focuses on the way Aflac differs from major medical insurance and how the company provides cash benefits that policyholders may use however they choose when an illness or accident occurs. For example:
• Aflac is insurance for daily living. Major medical insurance payments are paid directly to doctors and hospitals, but Aflac payments are directed to you.
• Aflac benefit checks may be used to help pay the mortgage, the car payment, or any other bills when you are sick or hurt.
• Your Aflac policy belongs to you, not to your company. If you lose or leave your job, your coverage can go with you at no increase in cost.
"We're giving people facts, not fluff," said Jeff Charney, Aflac senior vice president and chief marketing officer. "We are telling Americans we understand their needs and will be here when they need us most. In short, we've got them under our wing."
The new tagline will be featured in three new Aflac television commercials this year - commercials that will build on the familiarity and likeability of the iconic Aflac Duck. One of the commercials is being produced with the Academy-Award winning Pixar Animation Studio and features characters from the soon-to-be released film, UP.
"We're excited about our expanded presence on Facebook - and particularly about the fact that everything on our page will be presented from 'a duck's eye view,'" Charney said. "We believe that people will enjoy seeing the world from his perspective."
In addition to the new marketing campaign, Aflac has added new products and revised existing ones to make them available to more businesses, individuals and age groups. "We are making room for more people under our wing," Charney said.
About Aflac
For more than 50 years, Aflac products have given policyholders the opportunity to direct cash where it is needed most when a life-interrupting medical event causes financial challenges. Aflac is the number one provider of guaranteed-renewable insurance in the United States and the number one insurance company in terms of individual insurance policies in force in Japan. Our insurance products provide protection to more than 40 million people worldwide. Aflac has been recognized by Ethisphere magazine as one of the World's Most Ethical Companies for three consecutive years and was also named by the Reputation Institute as the Most Respected Company in the Global Insurance Industry in 2008. In 2009 Fortune magazine recognized Aflac as one of the 100 Best Companies to Work For in America for the eleventh consecutive year. Aflac appears on Hispanic Enterprise magazine's list of the 50 Best Companies for Supplier Diversity and on Black Enterprise magazine's list of the 40 Best Companies for Diversity. Aflac was also named by Forbes magazine as America's Best-Managed Company in the insurance category. Aflac Incorporated is a Fortune 500 company listed on the New York Stock Exchange under the symbol AFL (NYSE: AFL - News). To find out more about Aflac, visit www.aflac.com.
European Stocks Retreat on Bank Capital Concerns, Swine Flu
April 28 (Bloomberg) -- European stocks retreated on concern that banks may need to raise additional capital and the outbreak of swine flu will hinder an economic recovery.
BNP Paribas SA and Credit Suisse Group AG dropped more than 3 percent after the Wall Street Journal reported that Bank of America Corp. and Citigroup Inc. may require more cash following the completion of government stress tests. BHP Billiton Ltd. and ArcelorMittal slipped as investors speculated the spread of swine flu will hurt demand for metals and U.S. Steel Corp. reported a loss. Daimler AG led a sell off in carmakers after posting its first back-to-back losses in at least 10 years.
The Dow Jones Stoxx 600 Index lost 1.5 percent to 193.57, extending its 2009 decline to 2.4 percent. The gauge has rebounded 23 percent since March 9 on optimism that government plans to fix the banking system will help to pull the global economy out of recession.
“It’s very important to remember that we are still in a bear market and still have quite a lot of problems ahead of us,” said Philippe Gijsels, a senior structured equity strategist at Fortis Global Markets in Brussels. “Most of the banks have to pass the stress test because otherwise it will create a lot of anxiety,” he said in a Bloomberg Television interview.
National benchmark indexes declined in all 18 western European markets as the World Health Organization raised its global pandemic alert after the pig-flu virus was confirmed in the U.K., Mexico, the U.S., Canada and Spain. Germany’s DAX lost 1.9 percent, while France’s CAC 40 and the U.K.’s FTSE 100 slipped 1.7 percent.
Consumer Confidence
Stocks pared losses after an index of U.S. consumer confidence jumped by the most since 2005, adding to signs that the recession may be easing.
France’s BNP Paribas dropped 3.9 percent to 36.77 euros, while Credit Suisse, Switzerland’s biggest bank by market value, sank 3.2 percent to 42.76 Swiss francs.
Early results of the government’s examination of the 19 largest U.S. banks show Bank of America and Citigroup may need additional capital, the Journal reported. Both companies plan to mount a detailed rebuttal of the Federal Reserve’s preliminary report following the tests, the newspaper said.
‘Wait and See’
The Financial Times reported today that Britain’s largest banks may be required to hold more capital than the industry average to help guard against future financial crises under a plan that Chancellor of the Exchequer Alistair Darling is expected to announce next month.
“It’s a little bit of wait and see for the banks,” said Gary Baker, head of equity strategy for Europe, Africa and the Middle East at Bank of America-Merrill Lynch. “There have been very good news from banks in terms of first-quarter earnings but that capital position is still one that is hovering over everyone.”
Bank of America spokesman Robert Stickler declined to comment on the report, saying the process allows banks to respond to the government’s comments. Citigroup spokesman Jon Diat also declined to comment on the stress test, and said the bank’s capital base is “strong.”
Deutsche Bank AG slid 6.9 percent to 40.26 euros even after Germany’s largest lender posted a first-quarter profit of 1.19 billion euros ($1.55 billion), compared with a loss of 131 million euros a year earlier. Chief Executive Officer Josef Ackermann also agreed to extend his contract by three years.
The shares erased more than half the gain of the past week on concern about possible writedowns and as earnings from asset management and transaction banking missed analysts’ estimates.
BHP, Rio Tinto
BHP Billiton, the world’s largest mining company, fell 2.2 percent to 1,359 pence. Rio Tinto Group, the third-largest, decreased 6.3 percent to 2,518 pence.
Copper led industrial metals in London lower on concern the swine flu outbreak may hamper efforts to revive the global economy and hurt demand for industrial metals.
ArcelorMittal, the world’s biggest steelmaker, dropped 6.1 percent to 18.67 euros after U.S. Steel reported a first-quarter net loss that was more than twice analysts’ estimates and cut its dividend as prices plunged.
Automakers Sink
Daimler dropped 3.7 percent to 26.38 euros. The world’s second-largest maker of luxury cars reported a first-quarter net loss of 1.3 billion euros, wider than the 790 million-euro median estimate in a Bloomberg survey.
Renault SA and PSA Peugeot Citroen, France’s biggest automakers, retreated 5.2 percent to 21.74 euros and 5.2 percent to 16.54 euros respectively.
Air Liquide SA fell 5.6 percent to 62.10 euros. The world’s biggest maker of industrial gases cut its forecast for full-year sales and net income after first-quarter revenue declined. Sales and earnings this year will be close to 2008 levels, Air Liquide said. The company had earlier predicted growth in both measures.
WPP Plc retreated 3.9 percent to 424.25 pence. The world’s largest advertising company said it will be “difficult” to maintain operating margins at the levels achieved in 2008. WPP also said first-quarter sales excluding acquisitions and currency swings fell 5.8 percent as clients cut spending amid the global economic slowdown.
Sandvik AB, the world’s largest maker of metal-cutting tools, dropped 15 percent to 57.25 kronor after posting an unexpected first-quarter loss and saying orders plunged 39 percent, missing analysts’ estimates.
BNP Paribas SA and Credit Suisse Group AG dropped more than 3 percent after the Wall Street Journal reported that Bank of America Corp. and Citigroup Inc. may require more cash following the completion of government stress tests. BHP Billiton Ltd. and ArcelorMittal slipped as investors speculated the spread of swine flu will hurt demand for metals and U.S. Steel Corp. reported a loss. Daimler AG led a sell off in carmakers after posting its first back-to-back losses in at least 10 years.
The Dow Jones Stoxx 600 Index lost 1.5 percent to 193.57, extending its 2009 decline to 2.4 percent. The gauge has rebounded 23 percent since March 9 on optimism that government plans to fix the banking system will help to pull the global economy out of recession.
“It’s very important to remember that we are still in a bear market and still have quite a lot of problems ahead of us,” said Philippe Gijsels, a senior structured equity strategist at Fortis Global Markets in Brussels. “Most of the banks have to pass the stress test because otherwise it will create a lot of anxiety,” he said in a Bloomberg Television interview.
National benchmark indexes declined in all 18 western European markets as the World Health Organization raised its global pandemic alert after the pig-flu virus was confirmed in the U.K., Mexico, the U.S., Canada and Spain. Germany’s DAX lost 1.9 percent, while France’s CAC 40 and the U.K.’s FTSE 100 slipped 1.7 percent.
Consumer Confidence
Stocks pared losses after an index of U.S. consumer confidence jumped by the most since 2005, adding to signs that the recession may be easing.
France’s BNP Paribas dropped 3.9 percent to 36.77 euros, while Credit Suisse, Switzerland’s biggest bank by market value, sank 3.2 percent to 42.76 Swiss francs.
Early results of the government’s examination of the 19 largest U.S. banks show Bank of America and Citigroup may need additional capital, the Journal reported. Both companies plan to mount a detailed rebuttal of the Federal Reserve’s preliminary report following the tests, the newspaper said.
‘Wait and See’
The Financial Times reported today that Britain’s largest banks may be required to hold more capital than the industry average to help guard against future financial crises under a plan that Chancellor of the Exchequer Alistair Darling is expected to announce next month.
“It’s a little bit of wait and see for the banks,” said Gary Baker, head of equity strategy for Europe, Africa and the Middle East at Bank of America-Merrill Lynch. “There have been very good news from banks in terms of first-quarter earnings but that capital position is still one that is hovering over everyone.”
Bank of America spokesman Robert Stickler declined to comment on the report, saying the process allows banks to respond to the government’s comments. Citigroup spokesman Jon Diat also declined to comment on the stress test, and said the bank’s capital base is “strong.”
Deutsche Bank AG slid 6.9 percent to 40.26 euros even after Germany’s largest lender posted a first-quarter profit of 1.19 billion euros ($1.55 billion), compared with a loss of 131 million euros a year earlier. Chief Executive Officer Josef Ackermann also agreed to extend his contract by three years.
The shares erased more than half the gain of the past week on concern about possible writedowns and as earnings from asset management and transaction banking missed analysts’ estimates.
BHP, Rio Tinto
BHP Billiton, the world’s largest mining company, fell 2.2 percent to 1,359 pence. Rio Tinto Group, the third-largest, decreased 6.3 percent to 2,518 pence.
Copper led industrial metals in London lower on concern the swine flu outbreak may hamper efforts to revive the global economy and hurt demand for industrial metals.
ArcelorMittal, the world’s biggest steelmaker, dropped 6.1 percent to 18.67 euros after U.S. Steel reported a first-quarter net loss that was more than twice analysts’ estimates and cut its dividend as prices plunged.
Automakers Sink
Daimler dropped 3.7 percent to 26.38 euros. The world’s second-largest maker of luxury cars reported a first-quarter net loss of 1.3 billion euros, wider than the 790 million-euro median estimate in a Bloomberg survey.
Renault SA and PSA Peugeot Citroen, France’s biggest automakers, retreated 5.2 percent to 21.74 euros and 5.2 percent to 16.54 euros respectively.
Air Liquide SA fell 5.6 percent to 62.10 euros. The world’s biggest maker of industrial gases cut its forecast for full-year sales and net income after first-quarter revenue declined. Sales and earnings this year will be close to 2008 levels, Air Liquide said. The company had earlier predicted growth in both measures.
WPP Plc retreated 3.9 percent to 424.25 pence. The world’s largest advertising company said it will be “difficult” to maintain operating margins at the levels achieved in 2008. WPP also said first-quarter sales excluding acquisitions and currency swings fell 5.8 percent as clients cut spending amid the global economic slowdown.
Sandvik AB, the world’s largest maker of metal-cutting tools, dropped 15 percent to 57.25 kronor after posting an unexpected first-quarter loss and saying orders plunged 39 percent, missing analysts’ estimates.
Foreign Insurers Fight Proposals To Tax Offshore Activity
WASHINGTON (Dow Jones)--Foreign insurers are stepping up their fight against legislation that would tax offshore related-party transactions.
They will release a study Friday claiming that proposals in Congress would increase U.S. premiums across business lines by an average of 2%. That translates to an added $10 billion to $12 billion per year paid by Americans for insurance coverage, according to the analysis from the Brattle Group consulting firm.
The price increase would be higher for certain types of insurance that carry greater risk. Product liability insurance premiums could rise by as much as 6%, and earthquake insurance premiums by 5%, according to the study.
Particularly hard hit, the report says, would be business property owners in Florida, Louisiana and coastal areas where primary insurers are more likely to rely on reinsurance to spread risk.
The study was paid for by a coalition of foreign insurers fighting the legislation, including Bermuda-based reinsurers and some large European players, including Munich Re and Zurich Financial Services AG (ZURN.VX).
U.S.-based insurers, including W.R. Berkley Corp. (WRB) and Chubb Corp. (CB), have appealed to Congress to close what they say is a loophole that allows foreign insurers to avoid tax on U.S. business by shifting it to affiliates offshore.
Legislation from Rep. Richard Neal, D-Mass., targets the U.S. units of foreign insurers that write policies in the U.S. and then "cede" these premiums to offshore affiliates.
In an example of a reinsurance transaction, a U.S. subsidiary writes a $2,000 premium and cedes $1,000 to a Bermuda-based affiliate. The U.S. unit would receive $300 as a "ceding commission." But the net premium ceded of $700 could be deducted from taxable income in the U.S.
Reinsurance, even between related parties, is a common tool used by insurers to spread risk and to take advantage of efficiencies in management and administration.
But Neal and other critics in Congress say much of the offshore reinsurance is driven by the desire to dodge U.S. taxes. His bill would establish a benchmark based on an industry average of reinsurance with nonaffiliated companies, and tax all premiums that are transferred to offshore affiliates in excess of that threshold. Senate Finance Committee Chairman Max Baucus, D-Mont., is weighing a similar proposal.
"My bill would simply put an end to the unfair advantage these foreign entities have over American companies. There is a reason most of them have moved to Bermuda - and it's not for the tropical weather," Neal said.
Neal is expected to introduce a modified version of his bill shortly. Some insurance industry officials said they believe Neal will narrow the scope of the bill to carve out certain transactions involving reinsurance of third parties.
"We've urged them to narrow the scope. The target should be direct-written business that is then reinsured to an offshore affiliate," said William R. Berkley, chairman and chief executive of W.R. Berkley, in an interview.
The Brattle Group study said that 87% of all offshore affiliate reinsurance, or $23.9 billion of $27.4 billion, would be classified as "excess" under the Neal bill, and thus subject to the tax.
Rather than pay the taxes on those premiums, firms would replace some of the affiliate reinsurance with nonaffiliate reinsurance or capital, the firm found. But as much as $21.5 billion, or 20% of the reinsurance supply, would be lost, the study said.
"There is just not enough capacity in the U.S. market to reinsure all the risk we have," said J. David Cummins, a professor at Temple University's Fox School of Business and a co-author of the study. "We have so much property and so much exposure that we need to diversify globally."
But Berkley said the bill would not lead to a drop in overall availability of reinsurance. "All of these people have capital sitting in Bermuda - they're not going to stop doing business," he said. "This is a very competitive marketplace."
They will release a study Friday claiming that proposals in Congress would increase U.S. premiums across business lines by an average of 2%. That translates to an added $10 billion to $12 billion per year paid by Americans for insurance coverage, according to the analysis from the Brattle Group consulting firm.
The price increase would be higher for certain types of insurance that carry greater risk. Product liability insurance premiums could rise by as much as 6%, and earthquake insurance premiums by 5%, according to the study.
Particularly hard hit, the report says, would be business property owners in Florida, Louisiana and coastal areas where primary insurers are more likely to rely on reinsurance to spread risk.
The study was paid for by a coalition of foreign insurers fighting the legislation, including Bermuda-based reinsurers and some large European players, including Munich Re and Zurich Financial Services AG (ZURN.VX).
U.S.-based insurers, including W.R. Berkley Corp. (WRB) and Chubb Corp. (CB), have appealed to Congress to close what they say is a loophole that allows foreign insurers to avoid tax on U.S. business by shifting it to affiliates offshore.
Legislation from Rep. Richard Neal, D-Mass., targets the U.S. units of foreign insurers that write policies in the U.S. and then "cede" these premiums to offshore affiliates.
In an example of a reinsurance transaction, a U.S. subsidiary writes a $2,000 premium and cedes $1,000 to a Bermuda-based affiliate. The U.S. unit would receive $300 as a "ceding commission." But the net premium ceded of $700 could be deducted from taxable income in the U.S.
Reinsurance, even between related parties, is a common tool used by insurers to spread risk and to take advantage of efficiencies in management and administration.
But Neal and other critics in Congress say much of the offshore reinsurance is driven by the desire to dodge U.S. taxes. His bill would establish a benchmark based on an industry average of reinsurance with nonaffiliated companies, and tax all premiums that are transferred to offshore affiliates in excess of that threshold. Senate Finance Committee Chairman Max Baucus, D-Mont., is weighing a similar proposal.
"My bill would simply put an end to the unfair advantage these foreign entities have over American companies. There is a reason most of them have moved to Bermuda - and it's not for the tropical weather," Neal said.
Neal is expected to introduce a modified version of his bill shortly. Some insurance industry officials said they believe Neal will narrow the scope of the bill to carve out certain transactions involving reinsurance of third parties.
"We've urged them to narrow the scope. The target should be direct-written business that is then reinsured to an offshore affiliate," said William R. Berkley, chairman and chief executive of W.R. Berkley, in an interview.
The Brattle Group study said that 87% of all offshore affiliate reinsurance, or $23.9 billion of $27.4 billion, would be classified as "excess" under the Neal bill, and thus subject to the tax.
Rather than pay the taxes on those premiums, firms would replace some of the affiliate reinsurance with nonaffiliate reinsurance or capital, the firm found. But as much as $21.5 billion, or 20% of the reinsurance supply, would be lost, the study said.
"There is just not enough capacity in the U.S. market to reinsure all the risk we have," said J. David Cummins, a professor at Temple University's Fox School of Business and a co-author of the study. "We have so much property and so much exposure that we need to diversify globally."
But Berkley said the bill would not lead to a drop in overall availability of reinsurance. "All of these people have capital sitting in Bermuda - they're not going to stop doing business," he said. "This is a very competitive marketplace."
Aflac Teams 'Up' With Disney-Pixar
COLUMBUS, Ga., May 6 /PRNewswire/ -- Aflac today announced that the Georgia based insurance company has teamed "Up" with Disney-Pixar to produce a television commercial utilizing their unique brand of animation. The ad will feature movie characters from "Up", Disney-Pixar's first ever 3-D film, and the Aflac Duck demonstrating how Aflac policies help protect you when injury or illness threatens to derail your dreams.
Aflac also created a new "Up" - themed paint scheme, featuring Disney-Pixar characters, for the Aflac 99 Ford Fusion that will be driven by Carl Edwards at the Southern 500 NASCAR race at Darlington Raceway. The race will be nationally televised on the FOX Network on May 9, 2009, where the new ad will debut.
"We are pleased to have partnered with Disney-Pixar to create our first new ad using the tagline 'We've Got You Under Our Wing,'" said Aflac Senior Vice President and Chief Marketing Officer Jeff Charney. "This commercial reminds all of us about the importance of having a financial plan for life's unexpected events."
ABOUT THE MOVIE
From Disney-Pixar comes UP, a comedy adventure about 78-year-old balloon salesman Carl Fredricksen, who finally fulfills his lifelong dream of a great adventure when he ties thousands of balloons to his house and flies away to the wilds of South America. But he discovers all too late that his biggest nightmare has stowed away on the trip: an overly optimistic 8-year-old Wilderness Explorer named Russell. From the Academy Award®-nominated director Pete Docter ("monsters, Inc."), Disney-Pixar's UP invites you on a hilarious journey into a lost world, with the least likely duo on Earth. Opening nationwide on May 29, 2009, UP will be presented in Disney Digital 3-D(TM) in select theaters.
Aflac also created a new "Up" - themed paint scheme, featuring Disney-Pixar characters, for the Aflac 99 Ford Fusion that will be driven by Carl Edwards at the Southern 500 NASCAR race at Darlington Raceway. The race will be nationally televised on the FOX Network on May 9, 2009, where the new ad will debut.
"We are pleased to have partnered with Disney-Pixar to create our first new ad using the tagline 'We've Got You Under Our Wing,'" said Aflac Senior Vice President and Chief Marketing Officer Jeff Charney. "This commercial reminds all of us about the importance of having a financial plan for life's unexpected events."
ABOUT THE MOVIE
From Disney-Pixar comes UP, a comedy adventure about 78-year-old balloon salesman Carl Fredricksen, who finally fulfills his lifelong dream of a great adventure when he ties thousands of balloons to his house and flies away to the wilds of South America. But he discovers all too late that his biggest nightmare has stowed away on the trip: an overly optimistic 8-year-old Wilderness Explorer named Russell. From the Academy Award®-nominated director Pete Docter ("monsters, Inc."), Disney-Pixar's UP invites you on a hilarious journey into a lost world, with the least likely duo on Earth. Opening nationwide on May 29, 2009, UP will be presented in Disney Digital 3-D(TM) in select theaters.
Insuring climate change still possible
LONDON (Reuters) - Insuring the effects of climate change is still possible anywhere in the world "at the right price" despite increasing natural catastrophes such as hurricanes, reinsurance group Munich Re said on Wednesday.
Natural catastrophes resulting in insurance losses of more than $500 million more than doubled in 2008 from 1980, the group said. Most of these can be wholly or partly attributed to the effects of climate change.
In 2008, it is estimated that Hurricane Ike in the U.S. state of Florida resulted in $11.5 billion of insurance losses.
"So far, nowhere in the world is uninsurable," said Georg Daschner, member of the board of management at Munich Re. "It is a question of getting the right price and whether people are prepared to pay that price."
Daschner said the company was getting "close to its limits" in Florida, but is seeking ways of passing on its risk exposure to the capital market.
"At the right price there is always a way of insuring. The question is whether the consumer wants to pay that price," he added.
Munich Re provides cover for insurance companies and tries to cushion heavy losses by assessing the risks of climate change and investing strategically, for example in renewable energy.
The company was unable to put an exact figure on how much climate change is likely to cost insurers as its effects worsen, but said it currently deals with risks worth "billions and billions of dollars."
"We don't expect any big tipping points in risk insurance over the next 20 years. There will be a steady, slow change. We can manage this as we renew contracts every year and we can adapt them to new findings on climate change," Professor Peter Hoppe, Head of Munich Re's Geo Risks Research unit, said.
Munich Re said companies are becoming more aware of the effects of climate change on where they locate their businesses and use Munich Re to assess such risks.
"They are thinking about what will happen in the future, not looking for insurance particularly. Picking the right location is the best way of risk prevention. We can contribute to that as we give risk a price tag," Andreas Siebert, head of Geospatial Solutions at Munich Re, said.
(Reporting by Nina Chestney; Editing by Rupert Winchester)
Natural catastrophes resulting in insurance losses of more than $500 million more than doubled in 2008 from 1980, the group said. Most of these can be wholly or partly attributed to the effects of climate change.
In 2008, it is estimated that Hurricane Ike in the U.S. state of Florida resulted in $11.5 billion of insurance losses.
"So far, nowhere in the world is uninsurable," said Georg Daschner, member of the board of management at Munich Re. "It is a question of getting the right price and whether people are prepared to pay that price."
Daschner said the company was getting "close to its limits" in Florida, but is seeking ways of passing on its risk exposure to the capital market.
"At the right price there is always a way of insuring. The question is whether the consumer wants to pay that price," he added.
Munich Re provides cover for insurance companies and tries to cushion heavy losses by assessing the risks of climate change and investing strategically, for example in renewable energy.
The company was unable to put an exact figure on how much climate change is likely to cost insurers as its effects worsen, but said it currently deals with risks worth "billions and billions of dollars."
"We don't expect any big tipping points in risk insurance over the next 20 years. There will be a steady, slow change. We can manage this as we renew contracts every year and we can adapt them to new findings on climate change," Professor Peter Hoppe, Head of Munich Re's Geo Risks Research unit, said.
Munich Re said companies are becoming more aware of the effects of climate change on where they locate their businesses and use Munich Re to assess such risks.
"They are thinking about what will happen in the future, not looking for insurance particularly. Picking the right location is the best way of risk prevention. We can contribute to that as we give risk a price tag," Andreas Siebert, head of Geospatial Solutions at Munich Re, said.
(Reporting by Nina Chestney; Editing by Rupert Winchester)
Obama to propose estate tax changes, closing domestic loopholes to raise about $60 billion over 10 yrs
The Obama administration on Monday will propose raising nearly $60 billion over 10 years through changes to the estate tax law and closing certain domestic tax loopholes, an administration official said.
Funds raised will go to beef up a health care reserve fund, a $634 billion pot of money President Barack Obama wants to use to revamp the health care system and expand insurance to tens of millions of Americans who lack it.
The White House wants to raise $24 billion over 10 years by tightening rules related to the estate tax, a levy on an inherited part of an estate if the value exceeds an exclusion limit set by law.
Currently, the first $3.5 million for an individual, or $7 million for a couple, are exempted.
The changes to the estate tax are related to how assets are valued, said the official, who was not authorized to be quoted.
Other proposals include denying tax deductions for firms with punitive damage claims, the official said.
Later on Monday, the administration will provide details on a series of tax proposals unveiled last week, said to raise $210 billion over a decade, to tighten rules related to overseas investments.
Funds raised will go to beef up a health care reserve fund, a $634 billion pot of money President Barack Obama wants to use to revamp the health care system and expand insurance to tens of millions of Americans who lack it.
The White House wants to raise $24 billion over 10 years by tightening rules related to the estate tax, a levy on an inherited part of an estate if the value exceeds an exclusion limit set by law.
Currently, the first $3.5 million for an individual, or $7 million for a couple, are exempted.
The changes to the estate tax are related to how assets are valued, said the official, who was not authorized to be quoted.
Other proposals include denying tax deductions for firms with punitive damage claims, the official said.
Later on Monday, the administration will provide details on a series of tax proposals unveiled last week, said to raise $210 billion over a decade, to tighten rules related to overseas investments.
Friday, May 22, 2009
The Collectible Insurance Agency
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If you have kept it, the collectible insurance agency can help you.
We all have things in the attic that we don’t want to throw out and if it is valuable, the collectible insurance agency is a company you want to do business with. This insurance agency has been around for over 40 years. It has helped collectors and their hobbies for all that time. One of the best things about this insurance company is the fact that they want to help and are there just about any hour of the day.
If you want to talk to the owner of this company, he is there for you and you can count on his service. The back round concept of the company is not only to serve the needs of any collector in it’s reach, but to help the hobbies they serve in each and every way. This insurance company goes the extra yard and if something is stolen, they work hand and hand with the police to recover that property. Owner, Dan Walker, is a collector himself.
So he knows exactly what is at stake and what all these items mean to a person.
How does it shake out with this insurance agency?
When you ask how it works, the answer is pretty obvious and pretty simple. After filling out the application with all the pertinent information, you give a ball park figure on the item you want to be insured, then you buy insurance for that item. It can’t be any more straight forward than that. Coverage is for most types of collectibles. There is insurance for stamps, guns, knives and many other items.
If you have kept it, the collectible insurance agency can help you.
We all have things in the attic that we don’t want to throw out and if it is valuable, the collectible insurance agency is a company you want to do business with. This insurance agency has been around for over 40 years. It has helped collectors and their hobbies for all that time. One of the best things about this insurance company is the fact that they want to help and are there just about any hour of the day.
If you want to talk to the owner of this company, he is there for you and you can count on his service. The back round concept of the company is not only to serve the needs of any collector in it’s reach, but to help the hobbies they serve in each and every way. This insurance company goes the extra yard and if something is stolen, they work hand and hand with the police to recover that property. Owner, Dan Walker, is a collector himself.
So he knows exactly what is at stake and what all these items mean to a person.
How does it shake out with this insurance agency?
When you ask how it works, the answer is pretty obvious and pretty simple. After filling out the application with all the pertinent information, you give a ball park figure on the item you want to be insured, then you buy insurance for that item. It can’t be any more straight forward than that. Coverage is for most types of collectibles. There is insurance for stamps, guns, knives and many other items.
What is Pet Insurance?
Pet insurance is health insurance for animals. Pet Insurance operates just like health insurance for humans, with premiums payments, and deductibles, and various coverage plans. Plans are based on the pet’s age, species, pre-existing conditions, and in some cases, whether they are indoor or outdoor pets. Most companies begin their coverage for pets when the pet is between 6 or 8 weeks old. Depending on the company, the policy may be extend the lifetime of the animal, or it may expire after your pet has reached a certain age.
There are many downfalls of pet insurance: the deductibles will most likely be high, you will be required to co-pay the vet bills, and there may be potential yearly caps that prohibit you from receiving financial benefits once your bills have exceeded the set yearly amount. Pet insurance can cost anywhere between $2000 and $6000 during the life of your animal. If you are considering this kind of insurance, it would be wise to purchase it while the pet is still young; as the animal ages, it becomes increasingly difficult to find a company who will insure it.
What to Ask Before Purchasing Pet Insurance Plans
There are some specific questions that it would be wise to ask before selecting a pet insurance policy.
-Does the insurance company use a network or provider list? If your veterinarian is not on this list, you may want to consider the added expenses that may accompany this (increased driving time, etc.)
-What are the exclusions? Does your pet have pre-existing conditions that will not be covered by the policy? Are routine preventive treatments excluded?
-What are the deductibles or co-payments? How much will you be required to pay out of your own pocket before the company steps in?
There are many downfalls of pet insurance: the deductibles will most likely be high, you will be required to co-pay the vet bills, and there may be potential yearly caps that prohibit you from receiving financial benefits once your bills have exceeded the set yearly amount. Pet insurance can cost anywhere between $2000 and $6000 during the life of your animal. If you are considering this kind of insurance, it would be wise to purchase it while the pet is still young; as the animal ages, it becomes increasingly difficult to find a company who will insure it.
What to Ask Before Purchasing Pet Insurance Plans
There are some specific questions that it would be wise to ask before selecting a pet insurance policy.
-Does the insurance company use a network or provider list? If your veterinarian is not on this list, you may want to consider the added expenses that may accompany this (increased driving time, etc.)
-What are the exclusions? Does your pet have pre-existing conditions that will not be covered by the policy? Are routine preventive treatments excluded?
-What are the deductibles or co-payments? How much will you be required to pay out of your own pocket before the company steps in?
Two candles for “The Life Insurance Blog”
When we launched it on 30 April 2007, this is what we said…
“The Life Insurance Blog has been created to demystify life insurance for consumers by providing insight and advice as well as generating debate and conversation about all things to do with life insurance.
Whilst life insurance is a serious business and something we all need at some point in our lives, it is essentially a simple commodity.”
(I mean, hey, you get a lump of money when you die… how simple is that?)
We also said
“This blog isn’t going to be your top entertainment site on the web BUT if you’re thinking of buying life insurance there are some things you’ll want to know.”
“When it comes to life insurance Pinnacle Life is for the consumer. We’re not here to sell you a product or extras that you may not need. We’re about cutting through the insurance mumbo jumbo, getting the price down and cutting out any middlemen that don’t add value.”
We greatly appreciate the feedback received over the past 2 years. Mostly its “keep doing what we’re doing”. So a warm thank you to all our readers for reading and contributing and to those that have bought policies from Pinnacle Life… ‘cos at the end of the day this blog’s not for us… it’s for you :-)
“The Life Insurance Blog has been created to demystify life insurance for consumers by providing insight and advice as well as generating debate and conversation about all things to do with life insurance.
Whilst life insurance is a serious business and something we all need at some point in our lives, it is essentially a simple commodity.”
(I mean, hey, you get a lump of money when you die… how simple is that?)
We also said
“This blog isn’t going to be your top entertainment site on the web BUT if you’re thinking of buying life insurance there are some things you’ll want to know.”
“When it comes to life insurance Pinnacle Life is for the consumer. We’re not here to sell you a product or extras that you may not need. We’re about cutting through the insurance mumbo jumbo, getting the price down and cutting out any middlemen that don’t add value.”
We greatly appreciate the feedback received over the past 2 years. Mostly its “keep doing what we’re doing”. So a warm thank you to all our readers for reading and contributing and to those that have bought policies from Pinnacle Life… ‘cos at the end of the day this blog’s not for us… it’s for you :-)
Public Health Insurance Would Be Too Good and We'd Like It Too Much
A common thread is emerging in the right wing response to healthcare reform. Its opponents aren't claiming that public healthcare will be bad. Rather, they are terrified that the new system will be so good that no citizen would buy expensive private insurance--or vote for politicians who wanted to take public insurance away.
The Obama team is sending clear signals that healthcare reform is a core economic issue, and the health insurance industry is becoming increasingly anxious by the future administration's determination to bring healthcare costs under control. Some Americans are seeing their healthcare premiums rising at four times the rate of inflation, if they have insurance at all. Healthcare reform is a pocketbook issue for all of us, according to the Obama team.
In tough economic times it might be tempting to postpone healthcare reforms, but Obama is adamant that delay would be a false economy.
In the American Prospect, Joanne Kenen and Sarah Axeen support claims about the high cost of doing nothing:
A recent report by the New America Foundation's health-policy program estimates that the cost of doing nothing about health care, including poor health and shorter lifespan of the uninsured, is well above $200 billion a year and rising. That's enough to cover the uninsured and still have some left over for other public-health needs.
If healthcare costs continue to rise at their current rates, it will cost $24,000/yr to insure a family of four by 2016, an 84% increase from today. At these rates, half of American households would have to spend at least 45% percent of their income to be insured.
In the Nation, Willa Thompson describes how a bicycle crash made her appreciate the connection between healthcare and politics. Thompson was 21 years old when she suffered major injuries after a collision with a truck. Luckily, she was covered by her parents' medical insurance until she turned 22. She later realized that if she had been just a few months older when the accident happened, she wouldn't have been able to pay for her medical care.
We all agree that something needs to be done. Let's briefly review the options that have been proposed so far. Obama wants to provide healthcare for all by requiring private insurance companies to cover everyone and creating a public health insurance plan to compete with private insurers. The second part of his plan is the public option that Republican opponents are so scared of.
The Obama team is sending clear signals that healthcare reform is a core economic issue, and the health insurance industry is becoming increasingly anxious by the future administration's determination to bring healthcare costs under control. Some Americans are seeing their healthcare premiums rising at four times the rate of inflation, if they have insurance at all. Healthcare reform is a pocketbook issue for all of us, according to the Obama team.
In tough economic times it might be tempting to postpone healthcare reforms, but Obama is adamant that delay would be a false economy.
In the American Prospect, Joanne Kenen and Sarah Axeen support claims about the high cost of doing nothing:
A recent report by the New America Foundation's health-policy program estimates that the cost of doing nothing about health care, including poor health and shorter lifespan of the uninsured, is well above $200 billion a year and rising. That's enough to cover the uninsured and still have some left over for other public-health needs.
If healthcare costs continue to rise at their current rates, it will cost $24,000/yr to insure a family of four by 2016, an 84% increase from today. At these rates, half of American households would have to spend at least 45% percent of their income to be insured.
In the Nation, Willa Thompson describes how a bicycle crash made her appreciate the connection between healthcare and politics. Thompson was 21 years old when she suffered major injuries after a collision with a truck. Luckily, she was covered by her parents' medical insurance until she turned 22. She later realized that if she had been just a few months older when the accident happened, she wouldn't have been able to pay for her medical care.
We all agree that something needs to be done. Let's briefly review the options that have been proposed so far. Obama wants to provide healthcare for all by requiring private insurance companies to cover everyone and creating a public health insurance plan to compete with private insurers. The second part of his plan is the public option that Republican opponents are so scared of.
Car Insurance For Teenagers - How to Get Discounts For It!
Firstly, even though you have been with the same insurance company for a long time, do not assume that they are the only company offering good policies in terms of price and coverage. There is a possibility that there are better companies out there in the market; therefore, you should always try researching around before thinking of renewing your policy with your current company. Other companies might be able to offer better price and this is definitely a strong factor for you to switch to another company.
If you teenage child is a high scorer in school, remember to mention this when you are purchasing car insurance for teenagers. Many insurance companies reward good grades with lower rates. This is because students with better grades seem to make fewer claims compare to students who get C’s and below. Enrolling your teenage child into advanced driving courses is also a wise move to reduce the rates. Your teenager’s driving skills will be significantly improved once they graduated from these courses. Hence, this helps lower their risk as well as their rates.
Adding security and safety devices to your teen’s car will also help tremendously in lowering their rates. For example, you can try installing devices like alarm system into their cars and you will notice a big difference in their rates. This not only helps you to get more affordable car insurance for teenagers, they will also help you to ensure your child is more protected when he or she drives.
Apart from that, it is also possible to get reasonable rates for your car insurance for teenagers if you add your teenager name under your policy. It is very common that your rates might double or even triple when you add a teenager under your policy, but you will get more savings compare to buying a single policy for your teenage child. When your teenage child proves to be a responsible driver over time, the rates will gradually decrease as well.
Want to learn more? Then you should visit my site right now to know more about cheap car insurance. You are welcome to read other articles about car insurance for teenagers - We have helped numerous drivers to save huge amount of money per year by showing them the right ways to get cheap auto insurance Visit the website now so that you can benefit from the tips as well! You will be guaranteed with lots of informative and great tips!
If you teenage child is a high scorer in school, remember to mention this when you are purchasing car insurance for teenagers. Many insurance companies reward good grades with lower rates. This is because students with better grades seem to make fewer claims compare to students who get C’s and below. Enrolling your teenage child into advanced driving courses is also a wise move to reduce the rates. Your teenager’s driving skills will be significantly improved once they graduated from these courses. Hence, this helps lower their risk as well as their rates.
Adding security and safety devices to your teen’s car will also help tremendously in lowering their rates. For example, you can try installing devices like alarm system into their cars and you will notice a big difference in their rates. This not only helps you to get more affordable car insurance for teenagers, they will also help you to ensure your child is more protected when he or she drives.
Apart from that, it is also possible to get reasonable rates for your car insurance for teenagers if you add your teenager name under your policy. It is very common that your rates might double or even triple when you add a teenager under your policy, but you will get more savings compare to buying a single policy for your teenage child. When your teenage child proves to be a responsible driver over time, the rates will gradually decrease as well.
Want to learn more? Then you should visit my site right now to know more about cheap car insurance. You are welcome to read other articles about car insurance for teenagers - We have helped numerous drivers to save huge amount of money per year by showing them the right ways to get cheap auto insurance Visit the website now so that you can benefit from the tips as well! You will be guaranteed with lots of informative and great tips!
Thursday, May 21, 2009
Insurance 3-Steps for the Single, 20-Something, College Graduate
Watching our children grow up and become adults is one of the greatest parts of parenting. My oldest daughter graduated from Oregon State University with honors last month. I was in awe of the results of my labor, I doubt our children have any idea how proud we really are when they achieve the greatness we dreamed possible!
I have written several Blogs about insurance for our older teenagers and young adults. The best advice I can offer is that you continue to insure your child until they are defined by the financial aide office as "independent." This is usually when they become married, enlist in the military, graduate from college or turn 26.
I now have 2-adult children who qualify as independent and both have very different insurance needs. The important thing my college graduate, 20-something, single children need to do is consider these three important insurance issues:
point Protect and Build a Solid Insurance Credit Score:
* Understand how to have a strong and positive credit score and make every effort to keep it clean. Remember to start repaying the student loans as soon as possible. More people have negative damage on their credit scores due to student loan defaults then you can imagine.
* Purchase the appropriate insurance products and keep coverage without lapse continuously. When possible develop customer loyalty with one company.
* Build a solid and positive banking relationship.
point Manage Risks and Liabilities:
* Identify where you have risks exposure, such as Renters Insurance for any of your personal property. The college graduate is entering the building stage of their future; a catastrophic loss of personal property can be intensely devastating in this stage. Starting a renter's policy now, will build an underwriting record and protect from having to start all over during this critical time of life.
* Identify personal liability exposures, including professionally. The college graduate will either continue with education or enter the work force. Examine the career and professional liability exposures. Will your career involve other people's children? Will you be traveling? Will you be sitting in an office? Talk with an Insurance expert or attorney and consider the type of liability insurance needed for this stage of life.
* Health and Medical insurance, most college graduates will no longer qualify to be covered under their parent's health insurance policy. People in their 20's often feel there is no chance a catastrophic medical illness or injury could ever happen to them. This is an important time to maintain health insurance, it's also a time to make it part of living life, it will cost a certain amount of money to have health insurance weather we continue under the current medical insurance methods we have today, or end up with a government program supported by higher taxes--we will pay for health insurance one way or another and paying for it even when we are young is part of having what we need when we need it.
The college graduate may be accepting their first career position in the profession they chose. It's an exciting time; there are bills to pay and things to buy! It's easy to want as much of those pay checks as can be had, many young people accept their first professional positions and decline the employer provided benefits, which is a huge mistake! It's better to establish a pattern of investment with the first pay check, you can't miss something you never had.
point Consider Insurance Products as Investments:
* Take advantage of employer provided benefits such as health insurance, and medical health savings plans. Some companies offer a wide range of credit union memberships, insurance agent relationships and investment opportunities. Take advantage of the services offered through your employer.
* Consider life insurance products due to the very low premiums and minimal health screening requirements.
* Most importantly is for the college graduate, 20-something to take the time to learn about and understand insurance, how it works and what types of insurance covers what part of life. The hope is that no one ever needs to make a claim--but, it sure is nice when it's there at a time when it's needed the most!
Halloween Insurance Tips: Are You Inviting Trick-or-Treater's?
The Trick-or-Treater's will be knocking on your door tomorrow night! It's your responsibility as the homeowner and insurance policy owner, to prevent losses. Halloween is a huge liability exposure. By decorating, turning your porch light on, and handing out treats homeowners invite some of the most common, and most expensive liability claims.
To make it simple, any injury that any person might suffer while their feet are on you property can be considered your liability. Take a few moments and consider these important issue before inviting the neighborhood to knock on your front door:
* If you trip over the garden-hose everytime you walk to the front door, than don't assume the little monsters own't nearly break an arm when they trip over something on the way to your door. Be sure to move any obstacles from the sidewalk, driveway, and entry of your home.
* Use only outdoor approved lighting and don't place any lit candles outside of your home.
* Be sure the area is well lit, and keep your lights on all night. Remember no matter how great the candy was at your house, Tricksters are still interested in causing problems. The best targets are dark homes where no witnesses will see the mischief!
* Eggs are very difficult to clean off the side of your house, and even worse when they hit the hood of your car. If possible park you car in a garage Halloween night!
* Be sure your pets are safely kept inside the house on Halloween. Not only are they at great risk of being frightened or hurt, but a dog bite claim is not what most of us expect when we're handing out candy.
* You might be able to save some money on your child dental costs, in many cities local dentist will pay by the pound for candy turned into to their office. But, that's a downer to me so I prefer to Eat It All Up!
* Most of all, be sure the treats you hand out are safe and individually wrapped.
National Interstate Insurance Celebrates 20-Year Anniversary
National Interstate Corporation, headquartered in Richfield, Ohio, and its principal operating subsidiary, National Interstate Insurance Company, are celebrating 20 years of service in the transportation insurance industry.
National Interstate has enjoyed significant growth since its inception in 1989, and offers a broad array of programs including traditional insurance and innovative captive solutions. The company also provides personal lines products for specialty vehicle owners, as well as transportation and general commercial insurance in Hawaii and Alaska.
National Interstate specializes in passenger transportation insurance in the U.S., but it has also expanded its offerings to include over 30 specialty products. The company insures everything from school buses, motor coaches, trucks, limousines and non-emergency medical transportation to all types of recreational vehicles and commercial vehicles used by small business owners.
Additionally, it has become the leading writer of transportation captive insurance programs, which now represents over half of its gross premiums written, according to National Interstate's announcement.
"We attribute our success in alternative risk transfer programs to the partnership philosophy it fosters. Captives give commercial insurance buyers an alternative to traditional insurance allowing them to share risk and reward with other operators. Captive customers enjoy many long-term benefits including controlling their insurance costs, sharing risk management and best practices, and having direct access to our senior management," said Dave Michelson, president and chief executive officer of National Interstate Corporation.
In conjunction with its product and market expansions, National Interstate has built its team of insurance professionals to over 350 employees. The National Interstate group of companies also has offices in Hawaii, Pennsylvania and the U.S. Virgin Islands.
National Interstate offers its products through a network of agents and brokers in all states and the District of Columbia. The company is an independently operated subsidiary of Great American Insurance Company, a property-casualty subsidiary of American Financial Group Inc.
Source: National Interstate Corporation, www.natl.com
National Interstate has enjoyed significant growth since its inception in 1989, and offers a broad array of programs including traditional insurance and innovative captive solutions. The company also provides personal lines products for specialty vehicle owners, as well as transportation and general commercial insurance in Hawaii and Alaska.
National Interstate specializes in passenger transportation insurance in the U.S., but it has also expanded its offerings to include over 30 specialty products. The company insures everything from school buses, motor coaches, trucks, limousines and non-emergency medical transportation to all types of recreational vehicles and commercial vehicles used by small business owners.
Additionally, it has become the leading writer of transportation captive insurance programs, which now represents over half of its gross premiums written, according to National Interstate's announcement.
"We attribute our success in alternative risk transfer programs to the partnership philosophy it fosters. Captives give commercial insurance buyers an alternative to traditional insurance allowing them to share risk and reward with other operators. Captive customers enjoy many long-term benefits including controlling their insurance costs, sharing risk management and best practices, and having direct access to our senior management," said Dave Michelson, president and chief executive officer of National Interstate Corporation.
In conjunction with its product and market expansions, National Interstate has built its team of insurance professionals to over 350 employees. The National Interstate group of companies also has offices in Hawaii, Pennsylvania and the U.S. Virgin Islands.
National Interstate offers its products through a network of agents and brokers in all states and the District of Columbia. The company is an independently operated subsidiary of Great American Insurance Company, a property-casualty subsidiary of American Financial Group Inc.
Source: National Interstate Corporation, www.natl.com
Garinger, Kohler Join Retail Insurance Broker Signature Select
Signature Select LLC, a retail insurance broker subsidiary of The IMA Financial Group Inc., hired Deena Garinger as account manager/account executive for its Denver employee benefits practice, and Howard Kohler as a Denver business development executive focused on property and casualty insurance lines.
Garinger has more than 12 years of employee benefits insurance industry experience including account management, sales, and set-up of new insurance accounts for self-insured employee benefits plans. She gained in-depth experience working with employers of various sizes while at CIGNA HealthCare.
Kohler was chosen to establish Signature Select's property and casualty sales presence in the Denver marketplace because of his strong brokerage experience and his background as a risk manager on the client side. He has nearly a decade of experience as an insurance agent and as an in-house risk manager for a Metro area retirement community.
IMA is a diversified financial services company specializing in insurance, asset and risk management with 450 employees and offices in six markets across the nation. Signature Select launched its Denver presence in 2009 to provide personal insurance services and business insurance solutions for small to mid-sized organizations.
About Signature Select LLC: Signature Select LLC - (www.signatureselect.com) - is a subsidiary of The IMA Financial Group providing personal and business insurance services for small- to mid-sized organizations. Signature Select has a presence in Dallas, Denver, Kansas City, Topeka and Wichita and is seeking licensure in all 50 states.
Garinger has more than 12 years of employee benefits insurance industry experience including account management, sales, and set-up of new insurance accounts for self-insured employee benefits plans. She gained in-depth experience working with employers of various sizes while at CIGNA HealthCare.
Kohler was chosen to establish Signature Select's property and casualty sales presence in the Denver marketplace because of his strong brokerage experience and his background as a risk manager on the client side. He has nearly a decade of experience as an insurance agent and as an in-house risk manager for a Metro area retirement community.
IMA is a diversified financial services company specializing in insurance, asset and risk management with 450 employees and offices in six markets across the nation. Signature Select launched its Denver presence in 2009 to provide personal insurance services and business insurance solutions for small to mid-sized organizations.
About Signature Select LLC: Signature Select LLC - (www.signatureselect.com) - is a subsidiary of The IMA Financial Group providing personal and business insurance services for small- to mid-sized organizations. Signature Select has a presence in Dallas, Denver, Kansas City, Topeka and Wichita and is seeking licensure in all 50 states.
Wednesday, May 20, 2009
Americas Insurance to Underwrite New Policies in Louisiana
Americas Insurance Co., which took on nearly 1,000 homeowner policies that had been covered by Louisiana's insurer of last resort, said it is entering the voluntary homeowners' market.
The company said it expects to underwrite new policies in most Louisiana parishes.
Louisiana Citizens Property Insurance Corp. has been working to reduce the number of policies it holds as the state's so-called insurer of last resort. Americas is among the private companies that have helped Citizens reduce its load.
Insurance Commissioner Jim Donelon said having more companies compete for business in Louisiana is a good thing. He said for many residents, homeowners' rates remain expensive, but he said there's been a "noticeable flattening of rates" since the devastating 2005 hurricanes.
The company said it expects to underwrite new policies in most Louisiana parishes.
Louisiana Citizens Property Insurance Corp. has been working to reduce the number of policies it holds as the state's so-called insurer of last resort. Americas is among the private companies that have helped Citizens reduce its load.
Insurance Commissioner Jim Donelon said having more companies compete for business in Louisiana is a good thing. He said for many residents, homeowners' rates remain expensive, but he said there's been a "noticeable flattening of rates" since the devastating 2005 hurricanes.
Missouri Insurance Agents Honored With Trusted Choice Award
Trusted Choice has awarded the inaugural Dan Fulwider Award for Community Involvement to Kevin and Kathy Flynn of K. Flynn Insurance Agency in Troy, Mo., the Independent Insurance Agents and Brokers of America announced.
In the spirit of and to honor Dan Fulwider who recently passed away after a valiant fight with cancer, the award recognizes Trusted Choice member agents for going above and beyond in volunteering time and enthusiasm to causes close to their heart.
"Dan Fulwider was the Government Affairs Coordinator and Membership Liaison for the Independent Insurance Agents of Iowa, and a huge supporter of Trusted Choice," said Brett Nilsson, Big "I" chairman. "Dan was a warm and caring young man, whose dedication to his community and the causes he believed in inspired all who knew him. Dan's recent passing is mourned by all who knew him and the Big 'I' family."
One of Fulwider's great passions was basketball, and he served as Assistant Boys Basketball Coach of the Saydel Eagles for three years. He did this as an unpaid volunteer simply because he loved the game and players. He was also a member of the Iowa High School Athletic Association Coaches organization, the National Eagle Scout Association and the Iowa State Alumni Association, and was active in his church.
As the recipient of the Dan Fulwider Award for Community Involvement, the Flynns receive a $2,500 contribution for the charity of their choice and were recognized at the 2009 Big "I" Legislative Conference & Convention. The charity they selected is the Muscular Dystrophy Association (MDA).
Sadly, Kevin and Kathy lost three sons, Kolby, Karey, and Korey, to Muscular Dystrophy while growing their business, raising their three other children (Kelly, Kasey and Kelsey) and volunteering for many community service projects. The Flynn family is a committed supporter of MDA and raises money to help find a cure for the disease. The K. Flynn Insurance Agency holds an annual golf tournament with all proceeds donated to the cause. The Flynn's daughter, Kelly Fowler, sponsors the local DECA organization which recently held their 4th annual 5K run/walk to raise money for the MDA.
Nilsson presented the award, along with a check for the Muscular Dystrophy Association for $2,500 at the 2009 Big "I" Legislative Conference & Convention. Dan's parents, Big "I" immediate past Chairman Bob Fulwider and his wife Jan, joined Nilsson on stage for the presentation.
"The Flynns started K Flynn Insurance in 1982 and as their family and agency grew, they felt it was important to give back to the community that supported their business and their family," says Robert Rusbuldt, Big "I" president & CEO. "They have never been too busy to help out with local organizations, schools and families. The Flynns are truly inspirational role models to others."
Trusted Choice is the consumer marketing identity for over 10,400 independent insurance agencies, brokerage firms, their branch locations and 53 leading insurance companies.
Source: Trusted Choice, www.TrustedChoice.com; IIABA, www.independentagent.com
In the spirit of and to honor Dan Fulwider who recently passed away after a valiant fight with cancer, the award recognizes Trusted Choice member agents for going above and beyond in volunteering time and enthusiasm to causes close to their heart.
"Dan Fulwider was the Government Affairs Coordinator and Membership Liaison for the Independent Insurance Agents of Iowa, and a huge supporter of Trusted Choice," said Brett Nilsson, Big "I" chairman. "Dan was a warm and caring young man, whose dedication to his community and the causes he believed in inspired all who knew him. Dan's recent passing is mourned by all who knew him and the Big 'I' family."
One of Fulwider's great passions was basketball, and he served as Assistant Boys Basketball Coach of the Saydel Eagles for three years. He did this as an unpaid volunteer simply because he loved the game and players. He was also a member of the Iowa High School Athletic Association Coaches organization, the National Eagle Scout Association and the Iowa State Alumni Association, and was active in his church.
As the recipient of the Dan Fulwider Award for Community Involvement, the Flynns receive a $2,500 contribution for the charity of their choice and were recognized at the 2009 Big "I" Legislative Conference & Convention. The charity they selected is the Muscular Dystrophy Association (MDA).
Sadly, Kevin and Kathy lost three sons, Kolby, Karey, and Korey, to Muscular Dystrophy while growing their business, raising their three other children (Kelly, Kasey and Kelsey) and volunteering for many community service projects. The Flynn family is a committed supporter of MDA and raises money to help find a cure for the disease. The K. Flynn Insurance Agency holds an annual golf tournament with all proceeds donated to the cause. The Flynn's daughter, Kelly Fowler, sponsors the local DECA organization which recently held their 4th annual 5K run/walk to raise money for the MDA.
Nilsson presented the award, along with a check for the Muscular Dystrophy Association for $2,500 at the 2009 Big "I" Legislative Conference & Convention. Dan's parents, Big "I" immediate past Chairman Bob Fulwider and his wife Jan, joined Nilsson on stage for the presentation.
"The Flynns started K Flynn Insurance in 1982 and as their family and agency grew, they felt it was important to give back to the community that supported their business and their family," says Robert Rusbuldt, Big "I" president & CEO. "They have never been too busy to help out with local organizations, schools and families. The Flynns are truly inspirational role models to others."
Trusted Choice is the consumer marketing identity for over 10,400 independent insurance agencies, brokerage firms, their branch locations and 53 leading insurance companies.
Source: Trusted Choice, www.TrustedChoice.com; IIABA, www.independentagent.com
National Interstate Insurance Celebrates 20-Year Anniversary
National Interstate Corporation, headquartered in Richfield, Ohio, and its principal operating subsidiary, National Interstate Insurance Company, are celebrating 20 years of service in the transportation insurance industry.
National Interstate has enjoyed significant growth since its inception in 1989, and offers a broad array of programs including traditional insurance and innovative captive solutions. The company also provides personal lines products for specialty vehicle owners, as well as transportation and general commercial insurance in Hawaii and Alaska.
National Interstate specializes in passenger transportation insurance in the U.S., but it has also expanded its offerings to include over 30 specialty products. The company insures everything from school buses, motor coaches, trucks, limousines and non-emergency medical transportation to all types of recreational vehicles and commercial vehicles used by small business owners.
Additionally, it has become the leading writer of transportation captive insurance programs, which now represents over half of its gross premiums written, according to National Interstate's announcement.
"We attribute our success in alternative risk transfer programs to the partnership philosophy it fosters. Captives give commercial insurance buyers an alternative to traditional insurance allowing them to share risk and reward with other operators. Captive customers enjoy many long-term benefits including controlling their insurance costs, sharing risk management and best practices, and having direct access to our senior management," said Dave Michelson, president and chief executive officer of National Interstate Corporation.
In conjunction with its product and market expansions, National Interstate has built its team of insurance professionals to over 350 employees. The National Interstate group of companies also has offices in Hawaii, Pennsylvania and the U.S. Virgin Islands.
National Interstate offers its products through a network of agents and brokers in all states and the District of Columbia. The company is an independently operated subsidiary of Great American Insurance Company, a property-casualty subsidiary of American Financial Group Inc.
Source: National Interstate Corporation, www.natl.com
National Interstate has enjoyed significant growth since its inception in 1989, and offers a broad array of programs including traditional insurance and innovative captive solutions. The company also provides personal lines products for specialty vehicle owners, as well as transportation and general commercial insurance in Hawaii and Alaska.
National Interstate specializes in passenger transportation insurance in the U.S., but it has also expanded its offerings to include over 30 specialty products. The company insures everything from school buses, motor coaches, trucks, limousines and non-emergency medical transportation to all types of recreational vehicles and commercial vehicles used by small business owners.
Additionally, it has become the leading writer of transportation captive insurance programs, which now represents over half of its gross premiums written, according to National Interstate's announcement.
"We attribute our success in alternative risk transfer programs to the partnership philosophy it fosters. Captives give commercial insurance buyers an alternative to traditional insurance allowing them to share risk and reward with other operators. Captive customers enjoy many long-term benefits including controlling their insurance costs, sharing risk management and best practices, and having direct access to our senior management," said Dave Michelson, president and chief executive officer of National Interstate Corporation.
In conjunction with its product and market expansions, National Interstate has built its team of insurance professionals to over 350 employees. The National Interstate group of companies also has offices in Hawaii, Pennsylvania and the U.S. Virgin Islands.
National Interstate offers its products through a network of agents and brokers in all states and the District of Columbia. The company is an independently operated subsidiary of Great American Insurance Company, a property-casualty subsidiary of American Financial Group Inc.
Source: National Interstate Corporation, www.natl.com
President of Grange Insurance to Retire
Columbus, Ohio-based Grange Insurance announced that Phil Urban, president and CEO, will retire in February 2010. Urban will remain with the company in his current position through the transition to a replacement.
Urban joined Grange in 1999. Since that time, the company's geographic footprint has more than doubled, and revenues have grown from $716 million to $1.35 billion, with more than $2 billion in assets. Urban introduced the company's Ease of Doing Business (EODB) concept, a guiding force in the company's push to enhance products, partnerships and technology.
Urban worked to positively influence the communities where Grange operates, a company and a personal philosophy for him. His leadership led to the building of the Grange Insurance Audubon Center, which is slated to open this summer in downtown Columbus.
He has also overseen the physical expansion of Grange in Columbus with the building of a 240,000 square-foot addition to its corporate headquarters. Other community leadership roles for Urban over the past 10 years include serving as treasurer of the Downtown Development Commission, chair of the United Way Leading Edge campaign, chairman for Experience Columbus and secretary-treasurer of the Columbus Zoo.
Grange Mutual Casualty board chairman Michael V. Parrott said Grange will be looking at internal and external candidates in its search for Urban's replacement.
Source: Grange Insurance, www.grangeinsurance.com
Urban joined Grange in 1999. Since that time, the company's geographic footprint has more than doubled, and revenues have grown from $716 million to $1.35 billion, with more than $2 billion in assets. Urban introduced the company's Ease of Doing Business (EODB) concept, a guiding force in the company's push to enhance products, partnerships and technology.
Urban worked to positively influence the communities where Grange operates, a company and a personal philosophy for him. His leadership led to the building of the Grange Insurance Audubon Center, which is slated to open this summer in downtown Columbus.
He has also overseen the physical expansion of Grange in Columbus with the building of a 240,000 square-foot addition to its corporate headquarters. Other community leadership roles for Urban over the past 10 years include serving as treasurer of the Downtown Development Commission, chair of the United Way Leading Edge campaign, chairman for Experience Columbus and secretary-treasurer of the Columbus Zoo.
Grange Mutual Casualty board chairman Michael V. Parrott said Grange will be looking at internal and external candidates in its search for Urban's replacement.
Source: Grange Insurance, www.grangeinsurance.com
Insurance Industry Plays Significant Role in California's Economy
The insurance industry plays a significant role in California's economy, employing hundreds of thousands of workers, investing billions of dollars in state and local governments and paying the fourth largest amount in taxes to the state's General Fund, according to a 2009 report released today by insurers.
The report, "The Insurance Industry's Impact on California's Economy 2009," demonstrates that:
Insurers doing business in California employ 244,000 Californians.
Insurers invest $723 billion in California's economy, including $29.2 billion in state and municipal bonds. Insurers' bond investments finance the construction of schools, roads, water and sewer systems, low-cost housing and other projects that support the state's economy.
Insurance companies will generate $2.1 billion in premium taxes this fiscal year, the fourth largest source of revenue for the state's General Fund. California's premium tax rate is the highest among the ten largest states.
Health plans spend more than $79 billion on medical care for their California members.
Insurers have invested $14.3 billion through the California Organized Investment Network (COIN), which encourages sound investments by insurers in underserved communities. Another $1.4 billion has been invested by insurers in low-income communities through the IMPACT Community Capital program.
The report was published by trade associations representing all lines of insurance -- life, auto, homeowners, health, commercial and workers' compensation. The sponsoring organizations' leaders are Brad Wenger, president of the Association of California Life and Health Insurance Companies (ACLHIC); Sam Sorich, president of the Association of California Insurance Companies (ACIC); Rex Frazier, president of the Personal Insurance Federation of California (PIFC); Ken Gibson, vice president of the American Insurance Association (AIA); Charles Bacchi, interim president and CEO of the California Association of Health Plans (CAHP); and John Mangan, regional vice president of the American Council of Life Insurers (ACLI).
The report, "The Insurance Industry's Impact on California's Economy 2009," demonstrates that:
Insurers doing business in California employ 244,000 Californians.
Insurers invest $723 billion in California's economy, including $29.2 billion in state and municipal bonds. Insurers' bond investments finance the construction of schools, roads, water and sewer systems, low-cost housing and other projects that support the state's economy.
Insurance companies will generate $2.1 billion in premium taxes this fiscal year, the fourth largest source of revenue for the state's General Fund. California's premium tax rate is the highest among the ten largest states.
Health plans spend more than $79 billion on medical care for their California members.
Insurers have invested $14.3 billion through the California Organized Investment Network (COIN), which encourages sound investments by insurers in underserved communities. Another $1.4 billion has been invested by insurers in low-income communities through the IMPACT Community Capital program.
The report was published by trade associations representing all lines of insurance -- life, auto, homeowners, health, commercial and workers' compensation. The sponsoring organizations' leaders are Brad Wenger, president of the Association of California Life and Health Insurance Companies (ACLHIC); Sam Sorich, president of the Association of California Insurance Companies (ACIC); Rex Frazier, president of the Personal Insurance Federation of California (PIFC); Ken Gibson, vice president of the American Insurance Association (AIA); Charles Bacchi, interim president and CEO of the California Association of Health Plans (CAHP); and John Mangan, regional vice president of the American Council of Life Insurers (ACLI).
Young Insurance Agents' Service Project to Kick Off Texas Conference
A first-ever Young Agents Community Service Project, which benefits St. Peter - St. Joseph Children's Home, kicks off the Independent Insurance Agents of Texas (IIAT) 112th Annual Conference & Trade Show on June 3. A reception hosted by IIAT Young Agents will follow the service project.
The conference runs June 3-5 in San Antonio and features a 200-booth trade show.
"There is no better place to meet colleagues and company personnel, or discover the latest developments in the insurance industry than this annual conference," said Garry Kaufman, IIAT President.
Workshops begin on June 4, with sessions on Agency Valuation in Today's Economy from industry expert Bill Schoeffler; How to Insure Condominiums with IIAT's director of professional liability, David Surles, featuring IIAT's newest publication, Best Practices of Insuring Condominiums in Texas; and Profiles of Success: Hiring the Ideal Producer and CSR in Texas with ZERORISK HR's Mike Poskey and IIAT's Colleen O'Sullivan, presenting validated benchmark study results of the top producers and CSRs.
New this year is the combined Awards Luncheon where IIAT's highest honor, the Drex Foreman Award will be presented along with the Paige Eiland Political Action Award, the André Juneau Young Agent of the Year Award and the ACSR of the Year Award. The luncheon will be followed by the installation of new officers at the IIAT Business Meeting.
The June 4 keynote address, State of the Industry: Economic Update, from Insurance Information Institute President, Robert Hartwig, PhD, will use Webcast technology so all IIAT members will have live access to the presentation.
The June 5 General Session features a Company Managers Panel where representatives will discuss the impact of 2009 legislation and the market response to declining premiums. In addition, The Passing Zone will present a heart-pounding session demonstrating teamwork and dexterity all while wearing tights and wielding chain saws.
Friday afternoon sessions include Will Outsourcing Work for Your Agency? - a panel discussion of the advantages and disadvantages of outsourcing back office processing and non-customer service functions; Sales Strategies for Uncertain Times with Bill Schoeffler; and Serving Personal Lines Customers With Deregulated Forms, an agent panel discussion of the challenges of dealing with multiple forms and company procedures.
Source: IIAT, www.iiat.org
The conference runs June 3-5 in San Antonio and features a 200-booth trade show.
"There is no better place to meet colleagues and company personnel, or discover the latest developments in the insurance industry than this annual conference," said Garry Kaufman, IIAT President.
Workshops begin on June 4, with sessions on Agency Valuation in Today's Economy from industry expert Bill Schoeffler; How to Insure Condominiums with IIAT's director of professional liability, David Surles, featuring IIAT's newest publication, Best Practices of Insuring Condominiums in Texas; and Profiles of Success: Hiring the Ideal Producer and CSR in Texas with ZERORISK HR's Mike Poskey and IIAT's Colleen O'Sullivan, presenting validated benchmark study results of the top producers and CSRs.
New this year is the combined Awards Luncheon where IIAT's highest honor, the Drex Foreman Award will be presented along with the Paige Eiland Political Action Award, the André Juneau Young Agent of the Year Award and the ACSR of the Year Award. The luncheon will be followed by the installation of new officers at the IIAT Business Meeting.
The June 4 keynote address, State of the Industry: Economic Update, from Insurance Information Institute President, Robert Hartwig, PhD, will use Webcast technology so all IIAT members will have live access to the presentation.
The June 5 General Session features a Company Managers Panel where representatives will discuss the impact of 2009 legislation and the market response to declining premiums. In addition, The Passing Zone will present a heart-pounding session demonstrating teamwork and dexterity all while wearing tights and wielding chain saws.
Friday afternoon sessions include Will Outsourcing Work for Your Agency? - a panel discussion of the advantages and disadvantages of outsourcing back office processing and non-customer service functions; Sales Strategies for Uncertain Times with Bill Schoeffler; and Serving Personal Lines Customers With Deregulated Forms, an agent panel discussion of the challenges of dealing with multiple forms and company procedures.
Source: IIAT, www.iiat.org
Insurance Industry Plays Cutial Role in California's Economy
The insurance industry plays a significant role in California's economy, employing hundreds of thousands of workers, investing billions of dollars in state and local governments and paying the fourth largest amount in taxes to the state's General Fund, according to a 2009 report released today by insurers.
The report, "The Insurance Industry's Impact on California's Economy 2009," demonstrates that:
Insurers doing business in California employ 244,000 Californians.
Insurers invest $723 billion in California's economy, including $29.2 billion in state and municipal bonds. Insurers' bond investments finance the construction of schools, roads, water and sewer systems, low-cost housing and other projects that support the state's economy.
Insurance companies will generate $2.1 billion in premium taxes this fiscal year, the fourth largest source of revenue for the state's General Fund. California's premium tax rate is the highest among the ten largest states.
Health plans spend more than $79 billion on medical care for their California members.
Insurers have invested $14.3 billion through the California Organized Investment Network (COIN), which encourages sound investments by insurers in underserved communities. Another $1.4 billion has been invested by insurers in low-income communities through the IMPACT Community Capital program.
The report was published by trade associations representing all lines of insurance -- life, auto, homeowners, health, commercial and workers' compensation. The sponsoring organizations' leaders are Brad Wenger, president of the Association of California Life and Health Insurance Companies (ACLHIC); Sam Sorich, president of the Association of California Insurance Companies (ACIC); Rex Frazier, president of the Personal Insurance Federation of California (PIFC); Ken Gibson, vice president of the American Insurance Association (AIA); Charles Bacchi, interim president and CEO of the California Association of Health Plans (CAHP); and John Mangan, regional vice president of the American Council of Life Insurers (ACLI).
The report, "The Insurance Industry's Impact on California's Economy 2009," demonstrates that:
Insurers doing business in California employ 244,000 Californians.
Insurers invest $723 billion in California's economy, including $29.2 billion in state and municipal bonds. Insurers' bond investments finance the construction of schools, roads, water and sewer systems, low-cost housing and other projects that support the state's economy.
Insurance companies will generate $2.1 billion in premium taxes this fiscal year, the fourth largest source of revenue for the state's General Fund. California's premium tax rate is the highest among the ten largest states.
Health plans spend more than $79 billion on medical care for their California members.
Insurers have invested $14.3 billion through the California Organized Investment Network (COIN), which encourages sound investments by insurers in underserved communities. Another $1.4 billion has been invested by insurers in low-income communities through the IMPACT Community Capital program.
The report was published by trade associations representing all lines of insurance -- life, auto, homeowners, health, commercial and workers' compensation. The sponsoring organizations' leaders are Brad Wenger, president of the Association of California Life and Health Insurance Companies (ACLHIC); Sam Sorich, president of the Association of California Insurance Companies (ACIC); Rex Frazier, president of the Personal Insurance Federation of California (PIFC); Ken Gibson, vice president of the American Insurance Association (AIA); Charles Bacchi, interim president and CEO of the California Association of Health Plans (CAHP); and John Mangan, regional vice president of the American Council of Life Insurers (ACLI).
Home Insurance claims Nemesis
The use of pitch fibre pipes was very widespread through the UK and up to 50,000 properties are now suffering problems relating to pitch fibre pipes every year and making claims on home buildings insurance policies. The number of Pitch fibre claims is rising dramatically each year so much so that, like subsidence, many Home Insurance companies are refusing to cover claims under buildings insurance for sewer collapse associated with pitch fibre. Many others will claim 'normal wear and tear' and refuse to pay a claim. Howerver following advice from the UK's Insurance Ombudsman’s , some Home Insurance Companies are now paying for these drains to be repaired.
Would you know if you had Pitch Fibre Sewers? Probably not until you have a blockage or leakage.
Insurance Blogger is warning the large number of people who compare home insurance premiums on the Internet and change provider each year, to check very carefully if the new policy covers Pitch Fibre Collapse.
The cost of replacement of pitch fibre piping with modern materials can be anything from £2000 to £10000 or more depending upon the length and complexity of the run and the surface materials.
You may be jointly liable for damage to pitch fibre sewage pipes that are not even on your property if your sewers join to neighbours, so it is oimportant when purchasing home insurance that pitch fibre is covered, otherwise you may be presented with a large unwarranted bill.
As the pitch fibre pipe systems gradually deteriorate, those responsible for the sewers find themselves frequently paying out for repairs. Check your pipes and home buildings insurance today!
Would you know if you had Pitch Fibre Sewers? Probably not until you have a blockage or leakage.
Insurance Blogger is warning the large number of people who compare home insurance premiums on the Internet and change provider each year, to check very carefully if the new policy covers Pitch Fibre Collapse.
The cost of replacement of pitch fibre piping with modern materials can be anything from £2000 to £10000 or more depending upon the length and complexity of the run and the surface materials.
You may be jointly liable for damage to pitch fibre sewage pipes that are not even on your property if your sewers join to neighbours, so it is oimportant when purchasing home insurance that pitch fibre is covered, otherwise you may be presented with a large unwarranted bill.
As the pitch fibre pipe systems gradually deteriorate, those responsible for the sewers find themselves frequently paying out for repairs. Check your pipes and home buildings insurance today!
What a bunch of Bankers! UK Banks challenge PPI ruling
Feelings are running high this morning in the Payment Protection Market and the consumer pressure groups with news that Barclays and Lloyds TSB are challenging the Competition Commission's ruling to ban the sale of Payment Protection Insurance at the time of sale of a loan mortgage or credit.
Insurance Blogger thinks this is outrageous after years of expenditure on the investigations by the FSA and Competition Commission and others, and the subsequent fines for misselling, that any institution, let alone a largely Government owned institution Lloyds Bank, should have the right to challenge any such decision!
Payment protection insurance lobbyist Sara-Ann Burgess from specialist payment protection insurance company, Burgesses confirms our viewpoint. She said "These institutions are without morals and intent on putting profit ahead of consumers' interests."
"This latest move is a bid by the banks to continue making billions of pounds in profits in order to prop up other failing business areas.
"We all know PPI mis-selling is rife amongst High Street lenders and their resultant profits are obscene. These delaying tactics, lodged to stop the ban going ahead in October 2010, only serve to prove just how shameless these firms are and the extent they will go to protect their 'cash cows'."
The UK Protection Insurance sector takes over £5 billion in premiums every year and around 90% of the premiums goes in profit to Banks and Building Societies.
In 2006, the Competition Commission reported the 12 largest distributors made profits of GBP1.4bn - before the recession kicked in and demand for unemployment insurance protection and income protection insurance policies grew.
After a lengthy investigation into anti-competitive practices, the Commission announced in January a series of measures to lower prices and widen choice in the PPI sector.
These included:
axing single premium PPI and replacing with monthly payments.
a seven day ban on selling cover alongside credit.
a requirement to offer PPI separately to credit.
The Financial Ombudsman Service predicted some 30,000 payment protection insurance mis-selling complaints would be received by the end of March this year and confirmed the majority of them can be traced back to High Street lenders.
It upholds at least 90% of cases and in the case of one lender, 100%.
Sara-Ann Burgess concludes: "How can you on the one hand say banks are working to restore confidence and then on the other have two major players challenging decisions in order to maintain gigantic market shares and prevent freedom of choice? Actions are certainly speaking louder than words. These lenders are damaging the financial well-being of consumers and will continue to do so. What's equally insulting is the fact that Lloyds is paid for by taxpayers and our money is being used to ensure we continue to be ripped off."
Insurance Blogger couldn't agree more! The banks created the current recession by the misselling of mortgages and piggybacked missold mortgage payment protection insurance, and now they are trying to retain their ill gotten share of a market that wouldn't exist if they had done their job properly in the first place.
BancAssurance is a French joke - Keep your noses out of Insurance - Bankers!
For those of you still in a job, we wholeheartedly recommend Burgesses Unemployment Insurance
Insurance Blogger thinks this is outrageous after years of expenditure on the investigations by the FSA and Competition Commission and others, and the subsequent fines for misselling, that any institution, let alone a largely Government owned institution Lloyds Bank, should have the right to challenge any such decision!
Payment protection insurance lobbyist Sara-Ann Burgess from specialist payment protection insurance company, Burgesses confirms our viewpoint. She said "These institutions are without morals and intent on putting profit ahead of consumers' interests."
"This latest move is a bid by the banks to continue making billions of pounds in profits in order to prop up other failing business areas.
"We all know PPI mis-selling is rife amongst High Street lenders and their resultant profits are obscene. These delaying tactics, lodged to stop the ban going ahead in October 2010, only serve to prove just how shameless these firms are and the extent they will go to protect their 'cash cows'."
The UK Protection Insurance sector takes over £5 billion in premiums every year and around 90% of the premiums goes in profit to Banks and Building Societies.
In 2006, the Competition Commission reported the 12 largest distributors made profits of GBP1.4bn - before the recession kicked in and demand for unemployment insurance protection and income protection insurance policies grew.
After a lengthy investigation into anti-competitive practices, the Commission announced in January a series of measures to lower prices and widen choice in the PPI sector.
These included:
axing single premium PPI and replacing with monthly payments.
a seven day ban on selling cover alongside credit.
a requirement to offer PPI separately to credit.
The Financial Ombudsman Service predicted some 30,000 payment protection insurance mis-selling complaints would be received by the end of March this year and confirmed the majority of them can be traced back to High Street lenders.
It upholds at least 90% of cases and in the case of one lender, 100%.
Sara-Ann Burgess concludes: "How can you on the one hand say banks are working to restore confidence and then on the other have two major players challenging decisions in order to maintain gigantic market shares and prevent freedom of choice? Actions are certainly speaking louder than words. These lenders are damaging the financial well-being of consumers and will continue to do so. What's equally insulting is the fact that Lloyds is paid for by taxpayers and our money is being used to ensure we continue to be ripped off."
Insurance Blogger couldn't agree more! The banks created the current recession by the misselling of mortgages and piggybacked missold mortgage payment protection insurance, and now they are trying to retain their ill gotten share of a market that wouldn't exist if they had done their job properly in the first place.
BancAssurance is a French joke - Keep your noses out of Insurance - Bankers!
For those of you still in a job, we wholeheartedly recommend Burgesses Unemployment Insurance
Does Sickness Insurance cover 'swine flu'?
A lot of questions are being asked in the insurance world this week regarding the impact of the H1N1 virus to insurance claims.
With the World Health organisation now classifying the virus at five out of six on the scale of pandemia, it only needs one more country to confirm inter human transmission for it to become the first Flu pandemic since 1968.
So what will be the impact on the Insurance World?
Insuranceblogger doesn't beleive that we are going to see a doomsday viral situation much hyped by films like 28 Days later or Survivors, so the impact on on the life insurance fund will be negligable. In the developed world the largest risk to human life appears to be from the associated pnuemonia, which unless extremely aggressive is unlikely to kill more people than the average seasonal flu.
Like in 1968, the largest impact will be on the loss of business if large sections of the workforce are forced to take a couple of weeks off. It is also possible that businesses will be forced to close by the Government in a bid to stop transmission if there are sporadic outbreaks that can be controlled by quarantine and restrictive movement measures may be imposed by local authorities. If this becomes a fundamental risk, commercial insurance business interruption cover will not be in place.
If this situation occurs some sort of Government led compensation fund will need to be set up for the business interruption excess, or we could see more businesses going to the wall! Just what the doctor ordered in the middle of a recession!
On a personal level the millions of us who have personal sickness insurance in the form of ASU or protection products will be keen to know whether they are covered for the H1N1 virus.
We spoke to Simon Burgess, the managing director of Burgesses Insurance the UK's leading provider of Sickness and Unemployment Insurance. He assured us that it has been confirmed by all his underwriters that all Burgesses clients are definitely covered in the event of contracting this variant of the flu.
With the World Health organisation now classifying the virus at five out of six on the scale of pandemia, it only needs one more country to confirm inter human transmission for it to become the first Flu pandemic since 1968.
So what will be the impact on the Insurance World?
Insuranceblogger doesn't beleive that we are going to see a doomsday viral situation much hyped by films like 28 Days later or Survivors, so the impact on on the life insurance fund will be negligable. In the developed world the largest risk to human life appears to be from the associated pnuemonia, which unless extremely aggressive is unlikely to kill more people than the average seasonal flu.
Like in 1968, the largest impact will be on the loss of business if large sections of the workforce are forced to take a couple of weeks off. It is also possible that businesses will be forced to close by the Government in a bid to stop transmission if there are sporadic outbreaks that can be controlled by quarantine and restrictive movement measures may be imposed by local authorities. If this becomes a fundamental risk, commercial insurance business interruption cover will not be in place.
If this situation occurs some sort of Government led compensation fund will need to be set up for the business interruption excess, or we could see more businesses going to the wall! Just what the doctor ordered in the middle of a recession!
On a personal level the millions of us who have personal sickness insurance in the form of ASU or protection products will be keen to know whether they are covered for the H1N1 virus.
We spoke to Simon Burgess, the managing director of Burgesses Insurance the UK's leading provider of Sickness and Unemployment Insurance. He assured us that it has been confirmed by all his underwriters that all Burgesses clients are definitely covered in the event of contracting this variant of the flu.
12800 UK homes repossesed in the first quarter of 2009
Despite the UK government saying they eould help keep people in their homes there were over 12000 repossessions in the UK in first quarter of 2009.
There were 12,800 repossessions through the courts by first-charge on the property mortgage lenders and banks, in the first quarter of this year, according to the Council of Mortgage Lenders (CML).
This compares with 10,400 in the fourth quarter of last year, and 8,500 in the first quarter of 2008. Insuranceblogger is disgusted that the people who created the credit crunch crisis for those poor repossessed are so quick to resort to the courts!
Although repossessions are still rising, the CML now thinks its earlier 75,000 repossessions forecast looks pessimistic for the year as a whole, and expects to revise the figure downwards in its next housing market forecast update later this summer.
The number of mortgages in arrears continued to rise both months in arrears and as a percentage of the total outstanding mortgage value.
The number of existing mortgages has declined from around 11.7 million to around 11.1 million.
According to a suit from the CML -
"The key message continues to be: talk to your lender as soon as you identify difficulties emerging, and take advice from an independent money adviser if you have other debt issues as well as your mortgage. Lenders do not want to repossess if a realistic alternative solution can be found."
There were 12,800 repossessions through the courts by first-charge on the property mortgage lenders and banks, in the first quarter of this year, according to the Council of Mortgage Lenders (CML).
This compares with 10,400 in the fourth quarter of last year, and 8,500 in the first quarter of 2008. Insuranceblogger is disgusted that the people who created the credit crunch crisis for those poor repossessed are so quick to resort to the courts!
Although repossessions are still rising, the CML now thinks its earlier 75,000 repossessions forecast looks pessimistic for the year as a whole, and expects to revise the figure downwards in its next housing market forecast update later this summer.
The number of mortgages in arrears continued to rise both months in arrears and as a percentage of the total outstanding mortgage value.
The number of existing mortgages has declined from around 11.7 million to around 11.1 million.
According to a suit from the CML -
"The key message continues to be: talk to your lender as soon as you identify difficulties emerging, and take advice from an independent money adviser if you have other debt issues as well as your mortgage. Lenders do not want to repossess if a realistic alternative solution can be found."
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