Insurance World

Why car insurance costs rise 5%????

noreply@blogger.com (Insurance World) — Wed, 27 Feb 2008 16:07:00 +0000

Car insurance is costing drivers 5% more on average than a year ago, figures have shown.And it is motorists aged 40-50 who have endured the biggest increases, statistics from Sainsbury Car Insurance found.While the average insurance premium has gone up 5.24% in the last 12 months, the average rise for drivers aged 40-50 is 7%.The average premium for all motorists is now £497.26, while under 25s have seen the averaged rise 6.59% to £1,255.99.Those aged over 65 have seen their insurance rising the least - up 4.14% to £353.53 on average, while those aged 50-65 now have the lowest premiums - paying an average of £332.80.Sainsbury's Car Insurance manager Joanne Mallon said: "There are a number of factors leading to higher premiums, including a rise in the cost of personal injury claims and also repairs."However, given that nearly 70% of us admit to some form of potentially dangerous activity while driving, such as eating or using mobile phones, by cutting out these practices we can reduce the chances of being involved in an accident."

Massachusetts Drivers to Get New Choice for Car Insurance as Progressive Prepares to Offer Coverage Starting May 1

noreply@blogger.com (Insurance World) — Wed, 27 Feb 2008 16:05:00 +0000

MAYFIELD VILLAGE, Ohio, Feb 25, 2008 (BUSINESS WIRE) -- Massachusetts drivers could soon save even more on car insurance when Progressive begins offering coverage in the Commonwealth. Progressive today filed private passenger auto rates with the Massachusetts Division of Insurance. If the filing is accepted, Massachusetts drivers will be able to buy car insurance on progressive.com starting May 1. Progressive's filed rates are an average of 18 percent lower than the average rates paid by Massachusetts drivers in 2007. "We're excited about offering Massachusetts drivers the potential to save money and the opportunity to have an insurance company known for its innovative products and responsive 24/7 claims and customer service," said Cathy Wilton-Bransch, Massachusetts product manager, Progressive. "We appreciate the work the Division has done to create a regulatory environment that allows companies to compete for customers. We hope that come May 1, drivers will check out progressive.com and see what we have to offer." Wilton-Bransch said because the company wanted to enter Massachusetts quickly under the new managed competition system, it decided to phase in its buying options over time, starting online. Eventually, consumers will also be able to shop by phone and through local independent agents. "As the country's largest writer of car insurance through independent agents, we know how important agents are and the huge value they provide to their customers," said Wilton-Bransch. "We're now laying the foundation for our agency business and expect to have an auto product available through agents in the second quarter of next year." Progressive already sells Commercial Auto insurance to Massachusetts business owners through independent agents. Progressive is known as an innovator thanks to a series of car insurance industry "firsts," including being the first major auto insurer to have a Web site, the first to offer comparison rates, and the first to introduce 24/7 claims service. In 2007, Progressive became the first auto insurance company to offer Pet Injury Coverage. It is included at no extra charge with Collision coverage and pays up to $500 for veterinary bills for dogs and cats injured in car accidents. Progressive plans to offer Massachusetts drivers most of the same coverage options and policy features it offers in other states. It will also offer many of its standard discounts including a Paperless discount, an Electronic Funds Transfer discount and a Distant Student discount.

When to buy car rental insurance

noreply@blogger.com (Insurance World) — Wed, 27 Feb 2008 15:19:00 +0000

Q: Does it make sense to purchase insurance when I rent a car, or am I already covered? A: With so many options at the car rental counter, it may be tempting to buy whatever insurance protection is available to safeguard your trip. But many travelers don't realize they're more than likely duplicating coverage they already have. Not only does a driver's insurance policy protect against theft or damages to a rental vehicle, but often so does a major credit card used to pay the rental fee. The best thing to do is to call your insurance agent and credit card company in advance. Just because you've used a gold or platinum card in the past, don't assume that it still offers the same protection plans—the cards' insurance benefits can change. "More often, these prestigious cards are starting to change the advantages they offer to their cardholders, and often times the cardholders are unaware," said Carolyn Gorman, vice president of the Insurance Information Institute in New York. "You could be driving uninsured and not even know it, until you get into a bad accident and have no insurance to cover you. It's a dangerous, scary thing." If you're not insured through a policy or credit card, the long list of available options can seem intimidating, with dozens of plans that can add as much as an additional $40 a day. "This is just a classic way for these companies to make more money," said Greg Daugherty, an executive editor at Consumer Reports magazine. "This is usually money that people are spending unnecessarily." Car rental agreements vary from company to company, but these are a few plans most state laws require them to offer: — The collision damage waiver, also known as optional vehicle protection or loss damage waiver, can cost as much as $19 per day. This is not technically an insurance product, but instead shifts liability for collision damage from the person renting the car to the car rental company. This also covers for "loss of use," or time a damaged car can't be rented because it is being repaired. Waivers, however, can become void if the accident was caused by driving illegally or on unpaved roads. — Liability insurance, which provides protection for up to $1 million, costs between $7 and $14 a day. A driver would already have this coverage under their own car insurance. — Personal accident insurance covers medical and ambulance bills for the driver and passengers in the event of an accident. Opting for this would cost an additional $1 to $5 daily, but health insurance or personal injury protection under auto insurance would already pay for those types of bills. — Personal effects coverage is not always included in regular insurance plans. This protects against theft of items in the vehicle, such as laptops, golf clubs or cash. The coverage generally costs between $1 and $4 a day. It may be more cost effective, however, to purchase a floating policy under home or renters insurance, so that valuable items are fully protected at home as well as on vacation. For those who don't own a car but are frequent car renters or borrowers, another option for avoiding repetitive insurance fees is non-owner liability policies. These can cost anywhere from $200 to $500 a year. There are also limits or special insurance requirements for driving outside of the U.S. The most important thing to do, said Gorman, is plan ahead. "The worst is when you are standing at the counter, with a line behind you, and you feel pressured to buy it all because you don't have a sense of what kind of coverage you need and what you don't," she said. "That's when you make bad decisions in a haste."

Verdict out on insurance reform

noreply@blogger.com (Insurance World) — Wed, 27 Feb 2008 15:17:00 +0000

One year after Gov. Charlie Crist signed insurance reform into law, experts are debating whether homeowners got the rate relief the bill was intended to provide. As the economy worsens, some Florida residents are taking risks by buying less insurance than they need -- to save money. "I wish I saw a bright future out there," Tampa attorney Chip Merlin said. "Except for those people who can afford good insurance, it's become evident that many people are reducing their insurance, hoping a catastrophe won't happen. It's essentially playing Russian roulette with your savings. "For the last two years it's been the perfect time to be in the insurance business in Florida because rates have been through the roof and there have been no catastrophes." Homeowners must go forward, but where can they go? State Farm (which recently announced it has stopped writing new policies), Citizens Property and Universal Property & Casualty rank 1-2-3 in the region, including Sarasota, Charlotte, DeSoto and Hardee counties, based on the number of active policies, and are the only firms ranked in the top 10 in each county. Nationwide and lesser-known American Strategic are ranked 4-5 in the region. Shaken faith After the 2004 and 2005 hurricane seasons, when Florida insurance companies paid out billions in claims, the companies regrouped. Many requested new rates that would cover anticipated future losses, but they were not allowed to make up for past losses. Some found ways to reduce their exposure to claims by canceling policies of high-risk customers. Some companies -- such as Allstate and Nationwide -- ceased selling homeowners policies here. Homeowners' ire forced a special legislative session in Tallahassee, and when Crist signed insurance reform legislation into law in January 2007, the state's goal was straightforward -- reduce property insurance rates and increase homeowners' shaken faith in the insurance industry. Insurance Commissioner Kevin McCarty hailed the new law, saying it would bring badly needed rate relief to Floridians. Summoned Large companies differed in how they responded. State Farm and the state Office of Insurance Regulation agreed on a 9-percent decrease in homeowners insurance rates. But after Allstate requested a 41-percent increase, its company executives were summoned to appear before the Senate Select Committee on Property Insurance Accountability Feb. 4 in Tallahassee, to answer lawmakers' questions. An Allstate executive blamed weather patterns for the high rates. "Many scientists believe that we are in a period of increased sea surface temperature, which they believe will cause an increased likelihood of hurricane formation," Allstate Floridian Chairman and CEO Joe Richardson told the committee. "Prudent business judgment dictates that this increased risk of hurricane formation should be taken into consideration in determining the appropriate rate for the risk being insured." State lawmakers were frustrated because insurance executives sidestepped their questions. State Sen. Mike Bennett, R-Bradenton, who represents residents of Charlotte, Sarasota, DeSoto, Lee and Manatee counties, is a member of the committee. "It is awfully confusing, and even being part of the committee it is still confusing because of these rate filings; it's kind of like a voodoo game; you're really not sure what you're looking at," Bennett said, according to WTSP Channel 10. 'Hand over fist' Merlin, who represents policyholders with claims and disputes, pointed to Allstate and American Strategic as firms that approached the new legislation differently. American Strategic is "a small company that started in Florida and is growing," Merlin said. The firm requested a 20.9-percent combined reduction in its rates. The St. Petersburg company, which increased its market share for homeowners policies in Sarasota, Charlotte, DeSoto and Hardee counties from 3.4 percent in 2004 to 5.1 percent in 2007, is looking to expand into four other states. "They have done an excellent job of being up front (with rate decreases)," Merlin said. "While larger companies are leaving, American Strategic is making money hand over fist." John Auer, CEO of American Strategic and three other insurance companies, said several factors fell into place for the company when Crist signed the new law. "We don't retain a lot of the hurricane risk," he said. "We buy reinsurance to take that risk. Our trends on losses other than catastrophes (fire and water) have been good. It enables you to lower rates." Auer testified at the same Senate hearings as Richardson, the Allstate Floridian CEO. "They don't really want to write catastrophic risk business here," Auer said of Allstate. "I think that's pretty obvious. We do very good at managing and insuring catastrophic risk. Our companies decided that what we have is what we want, and we will write enough new business to keep it there." More leverage The new law promised lower rates but it also increased the state's leverage against companies that hope to maintain higher rates. "We have a stronger insurance commissioner," said Bill Newton, executive director of Florida Consumer Action Network, a Tampa-based organization that is active on insurance issues. "(Companies have) to get approval now before they can raise rates and they did not have to before." The bill had numerous provisions. Chief among them, the state catastrophe fund -- a pool of inexpensive "reinsurance" that insurance companies buy to improve their financial viability in the event of hurricanes or other natural disasters -- was increased from $16 billion to $28 billion. In return, insurance companies were required to pass along their savings to homeowners, by proposing two rate rollbacks in 2007. Each company's mandatory reduction was to be approved by the OIR. The legislation also requires insurance company executives to take an oath of truth, with penalties of perjury, for rate filings. "If the House bill works, it will be a blueprint for the nation and drop rates elsewhere," OIR spokesman Tom Zutell said recently. Unkept promises Crist, for one, is not entirely happy with the result. "In spite of steps taken to lower the cost of insurance, it appears some insurance companies have failed to pass those savings along to customers as the law requires them to do," he said in a Jan. 10 statement. Merlin agrees. "A year ago insurance companies said they can't afford to sell insurance because (reinsurance) is too high, there is too much risk," he said. "But their promises were not kept." Newton said insurance reform has worked -- somewhat. "It depends on what company you are with," he said. "A lot of companies have lower rates. State Farm went down 9 percent and we would have liked it to have been more. But at least it's not a 41-percent increase like Allstate is seeking." The Associated Press contributed to this report.

Insurance bills public hearing to be Wednesday

noreply@blogger.com (Insurance World) — Wed, 27 Feb 2008 15:17:00 +0000

The bills are Senate Bill 3, which would allow captive insurance companies to sell automotive coverage along with homeowners policies; and Senate Bill 5, which would overhaul the beach pool and offer tax incentives for people who renovate their homes to make the structures more resistant to storms. Captive insurance essentially allows businesses, condo associations or governments to self-insure as a group. The beach pool, or Alabama Insurance Underwriting Association, is the insurer of last resort for property owners on the coast. The association was established by regulations created by the Alabama Department of Insurance but is not in state law. Coastal insurance has surfaced as a major issue since several carriers increased rates, dropped coverage or did not renew policies following devastating hurricanes in 2004 and 2005.

Saving Money on Home Insurance: An Agent's Advice

noreply@blogger.com (Insurance World) — Wed, 27 Feb 2008 14:48:00 +0000

Most home insurance agents gain new customers daily from these scenarios:-A new home owner purchasing their first home.-A home owner who got a significant rate increase on their home insurance renewal.-A home owner who has had a "falling out" with with their current insurance agent or insurance company.-A home owner who has received a cancellation notice from their current insurance company due to claims history or other factors. All of these prospective customers ask the question: "How can I save money on my home insurance?"

Home Insurance agents have compiled this list of tips to save money on home insurance:

1. Shop Around. While this is time consuming, it's usually well worth the consumer's time to make some calls and inquiries. The public is usually not aware of individual insurance companies "growth strategy". Company A might be raising rates to lower exposure in a market, while Company "B" may be looking to grow in a certain market. 2. Give the agent full disclosure of your circumstances. If your home is equipped with a monitored security alarm, tell the agent. You may have a hail or fire resistant roof, be sure to disclose this. Remember, this is your home, you know it well, the agent does not. If you have prior claims (customarily in the past three years), now is the time to disclose them to the agent. Better to get a true and accurate quote than a "suprise" premium when the policy is issued. 3. Ask the agent coverage questions. A good example of this is "What Insurance Form is this policy written on?" Be prepared for the agent to give you a minature education on insurance. Usually, each state uses an approved form, promulgated (defined) by that states Department of insurance. For example, Homeowner Form "A" may be an "Actual Cash Value" policy, while Form "B" may be a "Replacement Cost" policy. No home owner wants to find out during a claim "What is covered and what is NOT covered". 4. Compare similar coverages and policies when comparing rates. Don't fall into the trap of getting $150,000 dwelling quote from Company "X" and a $175,000 quote from Company "Z". The public often refers to this type of shopping as "comparing apples to apples". It's a good approach, most insurance shopper should use it. 5. Inquire about Multi-Policy Discounts. Most insurance companies are likely to give you a better rate if you bring your auto insurance or life insurance business over to them. Compare the "Whole Package price" to see if moving all of your insurance to one carrier is financially justified. 6. Take a higher deductible. Sharing the burden of a potential claim is normally a great way to lower home insurance costs. Considering a 1% deductible over a $500 deductible might make fiscal sense. Insurance companies are stressing the use of insurance more for true catasthophes versus minor "upkeep" on homes. Insurance was always meant to be for major losses. If you are a habitual claimaint, you may find yourself being "non-renewed" by your insurance company and in this event, it will be more difficult to acquire new home insurance. 7. Keep your credit history clean. Many insurance companies are now using credit algorithms to determine the "likelihood and severity" of possible claim. While maintaining a good credit history is often times out of the home owner's control (due to mitigating circumstances), know that credit reports and loss history are usually major factors in getting the best rate on home insurance.

Be headstrong at work

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 03:06:00 +0000

It’s time to Be Headstrong in the office. That was the message released from the Alzheimer’s Society, who have teamed up with healthcare benefits provider HSA to release their top work place tips for reducing the risk of dementia. ‘Be Headstrong’ is the focus of Alzheimer’s Awareness Week 2007 (1 – 7 July), which will promote simple life changes that might protect against dementia while quashing some common myths. And, as a long-standing supporter of the Alzheimer’s cause, HSA is working with the Society to help promote these best practice guidelines in the workplace. The top tips are: Take the stairs rather than the lift Join the work social or sports club Avoid lunches that are high in salt or saturated fat Don’t smoke Get some fresh air – take a walk at lunchtime, or even better, walk or cycle to work. Neil Hunt, chief executive of the Alzheimer’s Society says, ‘Evidence shows that many people are worried about developing dementia in their old age but don’t realise they can reduce their risk by making simple changes. You spend most of your time at work so its a great place to start making important changes to your lifestyle.’ A new booklet ‘Be Headstrong’ which tells people how they can reduce their risks is available from today from local branches of the Alzheimer’s Society or from challengedementia.org.uk.

Younger adults open their minds to private medical insurance

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 03:05:00 +0000

Higher expectations of healthcare in the UK are leading to an increasing acceptance of private medical insurance (PMI), especially within the 18-24 market, BUPA's national Health of the Nation survey reveals. The major annual survey of the general public's attitudes and behaviours regarding health and lifestyle, found that the proportion of those who don't believe in private healthcare has fallen seven percent since 2000 to 26 percent among this age group. Clean hospitals, no waiting lists and faster access to specialists are all high on the list of reasons for the increasing warmth in attitude towards private healthcare. Sixty-eight percent of those interviewed believe that with PMI you can get quicker and better healthcare, more than one in three (38%) of those without PMI say that they would consider paying for private care and nearly three quarters (74%) of all PMI holders surveyed would recommend it to friends and family. The first rise in demand for PMI in five years confirmed by independent market analyst Laing and Buisson further strengthens BUPA's findings. Stephen Flanagan, commercial director of BUPA UK membership, says: "Attitudes to personal healthcare are changing with the younger generation seemingly taking the lead with regards to being more responsible for their health and wellbeing rather than leaving it to chance. "BUPA is responding to this demand by increasing its presence in the positive health territory. We now offer a number of products and services that help encourage individual health and wellbeing. These initiatives sit perfectly alongside PMI and afford extra peace of mind for members." Top ten reasons for taking out PMI: Clean hospitals 65% No waiting lists/less pain 60% No waiting lists/faster recovery 59% Faster access to specialists 58% Able to see same consultant 55% Better quality treatment/advice 54% See specialist at time to suit me 49% Able to choose location to suit me 48% No waiting lists/faster return to work 47% Hospital more comfortable 43%

Guide to making dental care affordable

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 03:04:00 +0000

HSA has updated the popular “Guide to making dental care affordable” booklet, produced in association with the British Dental Health Foundation. This independent guide is designed to enable individuals and families gain a better understanding of the myriad of payment options available for UK dentistry and to help them choose the best solution for their budget and dental requirements. The guide has sections detailing many of the funding options available in the UK for consumers. This includes the new NHS banding system, health cash plans, dental insurance as well as pay as you go. The guide is simple and easy to understand and not biased towards any one provider. It includes pros and cons for each funding option, together with facts and figures for the dental market in the UK. For further information, visit has.co.uk.

Foreign drivers risking a car insurance claim?

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 03:03:00 +0000

According to the Daily Mail, police officers are warning that immigrants from eastern Europe may not be fully aware of drink driving restrictions in the UK. "We are seeing an increase in the number of foreign nationals being arrested for drink driving and speeding," said Chief Inspector Rick Dowell, head of Dorset Police's traffic unit. In addition, some immigrants have trouble reading road signs, which may also put their car insurance premiums at risk, while others may not be familiar with enforced drink driving legislation, especially those from Baltic states. He stated that officers feel that much of this may be rectified with education. In response to the findings, the force is considering the option of introducing a driver awareness course for new arrivals from eastern Europe. Meanwhile Cambridgeshire Police have prepared guidelines for migrant workers outlining the UK's stance on drink driving.

Families in future healthcare plight

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 03:02:00 +0000

Latest research released by Healthplan provider HSA reveals a worrying picture for the future health of the UK. The annual benchmark survey has found that the nation is losing its faith in our National Health Service with only a third of respondents thinking the NHS will always be a part of the UK healthcare system, and a further 59% are concerned they may not be able to afford the cost of health in the future. These are just a few of the findings of HSA’s “Is the UK looking at a healthy future?” report which is now in its second year. The independent survey looks at the future of UK healthcare from three key perspectives - employee, employer and the UK at large, in an attempt to predict what the future health of our nation holds. Abby Bowman, a spokesperson for HSA explains: “The National Health Service has been an integral part of our culture since 1948, and it is a service towards which many of us feel fiercely loyal. However, it seems that we are no longer convinced that it will always be around to support us. Perhaps it is time for the government to compensate those that purchase their own private healthcare, and who are effectively helping to take the strain off the NHS, by offering them reduced tax or National Insurance. In fact, HSA’s research also shows that 46% of people would be more likely to purchase private healthcare if it meant that their NI contributions were reduced.” When asked how people would budget for healthcare in the future - just under half of respondents would consider purchasing some sort of healthplan or set up a savings account specifically for healthcare When asked how people would budget for healthcare in the future - 48% of people would either not plan to budget, would not be able to or didn’t know what they’d do, 4% would take out a loan or use a credit card to fund their healthcare 28% of respondents are concerned that a lack of NHS funding will mean that most people will not have access to vital services Only 3% of those surveyed did not have any concerns about the future health of the nation

PruHealth and Sainsbury’s partner to encourage healthy eating

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 03:01:00 +0000

PruHealth, the innovative private medical insurer, announced today it has partnered with leading supermarket Sainsbury’s in a move that could see PruHealth PMI customers rewarded for buying fresh fruit and vegetables at Sainsbury’s. The deal will provide PruHealth policyholders, both individual and corporate, with the opportunity to earn PruHealth Vitality Points when buying fresh fruit and vegetables at Sainsbury’s. For every £2 spent on your weekly fruit and vegetable shop you could earn PruHealth Vitality points which will then be accrued over the course of a year and offset against your premiums the following year, assuming no claims have been made. Points will be earned according to monetary spend, so for every £2 spent on fresh fruit and vegetables, policyholders will receive 1 Vitality point. Individual policyholders will be capped at 10 points per week. The maximum number of points an individual policyholder can accrue over the course of a year is 520. Family policyholders will be limited to 20 points per week per family policy. A family can accrue a maximum of 1040 points over the course of a year. PruHealth customers will simply have to give PruHealth their Nectar card number and opt in to receive the benefits. Then when they go into a Sainsbury’s store or online and purchase fresh fruit and vegetables from the fresh fruit and vegetable aisles they could earn Vitality points. All members over 18 on a policy can register a Nectar card and the total spend each week will be used to calculate the points earned by the policy. Shaun Matisonn, PruHealth Chief Executive, said: “We are delighted to have teamed up with Sainsbury’s, which has such a large national footprint. This is the first time in the UK that a health insurer has provided a retail benefit on your everyday grocery shopping. We are adding another element to our Vitality concept by allowing policyholders to collect Vitality points by buying fruit and vegetables at Sainsbury’s, essentially rewarding them for what they are already doing. This partnership demonstrates both companies’ commitment to improving health in the UK.” Leigh Rengger, Head of Loyalty at Sainsbury’s, said: “We are always looking at opportunities to encourage our customers to lead healthier lifestyles. This scheme rewards customers for eating healthily which could potentially reduce their PruHealth insurance premiums and is an innovative tie-up that enhances our pledge to get people to eat their five a day.” Sainsbury’s joins PruHealth’s existing Vitality partners which include Boots (group customers will have access to health screens from 31 October 2007), Virgin Active, Cannons, LA Fitness, Nuffield Proactive Health and Allen Carr’s Easyway. Vitality gives people the opportunity to be rewarded with lower premiums, depending on the claims they have made, for making positive lifestyle changes or simply maintaining a healthy lifestyle, in conjunction with PruHealth’s Vitality Programme.

PruHealth partner with Boots to make health checks accessible in-store

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:59:00 +0000

PruHealth announced today a new screening partnership with high-street chemist Boots to make it easier for SME and Corporate members, and Boots PMI customers to undertake health checks once a year within selected larger Boots stores. This service offering is a continuation of PruHealth’s pioneering Vitality model that helps its members become healthier by reducing the financial barriers to entry and rewarding members for participation. The Vitality model’s core components consist of education, nutrition, exercise, cessation of smoking and screening and this new benefit will allow customers to accrue more “Vitality points” which could lead to cashback rewards on renewal for group employees or the reduction of PMI premiums for Boots PMI customers. The service comes less than six months after PruHealth partnered with Boots to provide affordable health insurance to Boots customers. PruHealth research shows that less than half of the population (49 per cent) know their blood pressure. In addition, only 29 per cent know their cholesterol levels (this drops to less than 10 per cent for under 25’s). A high street health check provides an excellent and accessible way of discovering this information, which could make the difference between recognising the early signs of heart disease or not. The health checks will be available in selected larger Boots stores and will consist of a lifestyle assessment, BMI check, cholesterol and blood pressure measurement and a non-smokers declaration, all to be carried out by the Boots Pharmacy Team. A Boots pharmacist will then provide customers with advice on lifestyle changes they could make to help improve their cardiovascular health, and discuss the actions they could take to work towards their health goals – this could include making an appointment to see their GP where results need following up. Where appropriate, the pharmacist will also calculate the percentage risk for the customer of developing cardiovascular disease in the future, and advise them accordingly. PruHealth Group members will only pay £25 for the health check. However they could have the check for free if their employer chooses to subsidise this fee or has the Personal Health Fund screening option within their policy. Boots Health Insurance customers will have the check for free once per year. Director of Business Development and Partnerships at PruHealth, Nick Read, said: “It is great to link up with Boots, and to be able to offer affordable health checks for our group scheme and Boots PMI members.. Offering access to these services makes it easier for people to take control of their own health and wellbeing and could help them earn rewards at renewal. Once again this demonstrates our commitment to making a healthy lifestyle accessible for our members.” Some of PruHealth’s existing Vitality partners include Virgin Active, Cannons, LA Fitness, Nuffield Proactive Health and Allen Carr’s Easyway.

Make life easier...with BUPA

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:57:00 +0000

BUPA Group Risk has introduced a new approach to forward underwriting to make it easier for clients and intermediaries to switch business to BUPA. Normally increases in benefit for those over the free cover level have to be underwritten when a scheme switches, but with this innovative new approach the number of cases where underwriting is required will be dramatically reduced. Previously, advisers had to be careful to avoid creating problems, as part of a scheme switch, for highly paid members in particular. Where individuals are over the free cover limit 'forward underwriting' tends to apply. In other words, they are underwritten for a higher amount of benefit than they require in an effort to avoid the need to re-underwrite every year. However, when a scheme is switched from one insurer to another, this underwriting status tends to be jeopardised. Lee Lovett, head of sales at BUPA Group Risk, explains: "Although it is pretty much standard practice for insurers who have won schemes to accept previous underwriting decisions up to the existing sum assured, anyone to whom a 'forward underwrite' agreement had previously applied would effectively lose this entitlement - a valuable entitlement that would have saved them having to answer further medical questions or attending medical examinations for a number of years. "Having to be medically underwritten again when their benefit increases could lead in the short term to worse terms being applied than would have been in operation under their old insurer." Lovett adds: "Even if the members are accepted at normal rates by the new insurer, they often still face the hassle of attending medicals, and perhaps other tests as well, sooner than they would have needed to if the scheme hadn't been switched." BUPA will now take on anyone who was accepted at normal terms by their previous insurer and offer the same forward underwriting entitlement as would have applied had BUPA done the underwriting in the first place. This is based on the last sum assured underwritten by the previous insurer. For example, under its group income protection policy, BUPA will normally allow future increases without underwriting of up to £20,000 over a five-year period. If a scheme member with a benefit of £70,000 has been accepted at normal terms by a previous insurer and the scheme then switches to BUPA, no underwriting will be required in the five years following the switch unless the member's benefit exceeds £90,000 per annum. "It is usually the people at the head of companies who are affected by medical underwriting under group schemes," says Lovett. "They also tend to be the ones who decide whether a scheme stays with one insurer or moves to another. We believe this innovation will make it easier for them and their advisers to choose BUPA."

Over 3.4 million parents have no life cover

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:56:00 +0000

Sainsbury’s Bank estimates that over 3.4 million parents don’t have life insurance despite the inherent costs associated with looking after children, which the bank urges parents not to underestimate. Research from the Bank indicates that during the school summer holidays alone, parents intended to spend, on average, around £507.80 each, or collectively £5.29 billion on keeping their kids entertained. The Bank is urging all parents to regularly review their protection needs, in particular life insurance which does not need to be expensive with Life Insurance through Sainsbury’s starting from as little as £5 a month. Claire Moyles, Life Insurance Manager, Sainsbury’s said: “It’s so easy to underestimate how expensive it is to look after a child. Kids depend on Mum and Dad for everything, not just during the holidays, but throughout their whole childhood. Parents need to consider how their families would cope financially should something happen to them. Life insurance can help provide peace of mind knowing that your dependants could receive a cash lump sum if you were to die during the term of the plan." For this year’s summer holidays the biggest expense for keeping children entertained was estimated to be travel at an average of £158.30 per family, followed by shopping trips (£90.60) and special days out (£76.40).

Over 3.4 million parents have no life cover

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:56:00 +0000

Women's safe driving 'likely to go unnoticed'

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:55:00 +0000

A study conducted by charity Brake and breakdown service Green Flag found that almost half of respondents believed that men were more dangerous behind the wheel than women, while 42 per cent saw little difference between males and females, the Telegraph reports. Some eight per cent of respondents said they saw female drivers as being more likely to jeopardise their women's car insurance by being a menace on the roads. Statistics compiled by the Home Office last year showed that 97 per cent of motorists who were found to have a conviction for dangerous driving were male, highlighting that most motorists are unaware that female drivers make up a tiny portion of convictions. A Brake spokesman told the publication: "It's all about perception. People think that women are as bad drivers as men, which is not what the statistics say." In addition, a study by moneysupermarket.com recently showed that female drivers were half as likely to drive without women's car insurance cover as men.

Legal & General calls in Samaritans

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:53:00 +0000

Legal & General, UK protection provider, has turned to Samaritans for specialist training and advice on how to handle potentially difficult or sensitive calls with customers who are making a protection claim. The training is designed to equip claims handlers and those in operational support with the skills needed to offer a compassionate and efficient service. Stuart Johnson, Legal & General’s Senior Operations Manager for Claims and Underwriting said: “People who are claiming on their own policy or on behalf of a relative who has recently passed away, will be going through a very tough time and their emotions will be running high. Our staff need training to know how to deal with people in this situation in a way that allows us to offer a friendly and professional service. These customers have enough to cope with already and they just want us to deal with the claim in a timely and efficient manner.” Samaritans’ External Training Officer, Steve Tollerton, said: “Working with Legal & General was a fabulous experience. The level of enthusiasm and participation was excellent. It says a lot about the organisation and those attending the course that everyone was so keen to help all customers including those who may be emotional and upset.” Legal & General also offers its customers a confidential 24 hour medical and bereavement helpline through Capita Assistance. This service is for customers and their families at any point, not just at the time of a claim. Qualified counsellors are on hand to offer practical advice on medical and health care, information on social services and state benefits, details of self-help groups and advice on legal matters linked to bereavement. The helpline is available on 0870 1628 168. Anyone interested in Samaritans’ training in the workplace should visit samaritans.org/training.

Post Office launches over 50s life cover

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:52:00 +0000

The Post Office today announces its launch into the life market with its new Over 50s Life Cover, available now. The over 50s plan builds on the Post Office’s existing range of financial services and offers affordable and comprehensive peace of mind to people who want to avoid passing on funeral costs or outstanding debts to their family. Acceptance is guaranteed for everyone that applies. Only three simple questions need to be answered to receive a quote, with no medical questions or checks needed. Customers can choose how much cover they want with premiums starting at just £7 a month up to a maximum of £50. Post Office Over 50s Life Cover offers higher sums assured than the leading products currently on the market and will pay out the full sum assured after just 12 months. And customers can choose a free gift - a Freeview box, digital camera or box of wine - after their third monthly payment has been collected. Post Office director of insurance Phil Ashkuri said: “This is the first of a suite of products the Post Office is launching into the life market. Our Over 50s cover is easy to understand and apply for, with guaranteed acceptance. We also offer our customers more comprehensive cover than some of the leading plans on the market by paying out the full sum assured after just 12 months.”

Protection insurance that rewards you for being healthy

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:51:00 +0000

Today sees the launch of PruProtect, a new protection product set to revolutionise the protection industry. PruProtect is brought to the UK market through a joint venture between Prudential UK and South African insurer, Discovery. PruProtect’s suite of products offers customers Life Cover, Income Protection and severity based Serious Illness Cover. It follows the success of PruHealth by using the innovative Vitality points system which is designed to encourage people to take control of their own health and wellbeing and to give them the potential to manage their premiums throughout the course of their contract. By recognising people’s efforts to look after themselves, PruProtect is able to offer a more comprehensive set of benefits than traditional providers at a very competitive price. For example, its severity based approach to Serious Illness Cover breaks the mould of traditional ‘all-or-nothing’ Critical Illness policies and takes on today’s key challenge of engaging consumers in the UK protection market. By making significant efforts to keep healthy such as going to the gym, stopping smoking or attending a health screening, policyholders can earn points to potentially reduce their premiums year-on-year. PruProtect with Vitality includes the following benefits: Choice of gym membership deals at Cannons, LA Fitness or Virgin Active Free fitness assessments at Cannons, LA Fitness or Virgin Active Subsidised full health screenings with the Diagnostic Clinic and Nuffield Big discounts at Champney’s health resorts Discounted smoking cessation courses with Allen Carr’s Easyway to Stop Smoking Discounted Fitbug pedometer to count steps Along with the benefits of Vitality, PruProtect’s Serious Illness Cover works on a severity basis rather than the current ‘all-or–nothing’ approach adopted by Critical Illness providers. Using a severity based product means that under PruProtect the claim is proportionate to the severity of the illness and the likely financial detriment that may result. This means policyholders are covered for more conditions than with many traditional Critical Illness policies and could receive money at an earlier stage; the payout will reflect their needs at that time. This means the payout may be less than under a traditional Critical Illness policy, but if their condition worsens they could then receive further payouts at set stages. Or, if their health recovers, the policy continues as normal and they are able to claim again if needed - unlike a traditional Critical Illness policy which would cease. Shaun Matisonn, CEO, PruProtection, said: “PruProtect encourages individuals to take charge of their health and wellbeing and rewards them for doing so. Through Vitality, PruProtect supports people when they are well, but is also better able to look after them financially when they are not. Our aim is to start tackling the negative image of protection insurance products in the UK by launching a company that people can interact with and which reflects their lifestyle. Our Vitality scheme means that PruProtect customers will be able to help manage their premium levels as well as giving them the potential to receive other benefits such as discounted gym membership and health screens. PruProtect will initially only be available through financial advisers. For further details on PruProtect and the Vitality scheme please speak to a financial adviser or visit pruprotect.co.uk.

moneysupermarket.com: launch of PruProtect

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:48:00 +0000

Commenting on the launch of PruProtect, Emma Walker, head of protection at moneysupermarket.com, said: “This is a novel move for the protection market and actively encourages consumers to lead a healthy lifestyle. The vitality points system allows consumers access to lower premiums if they are prepared to go to the gym regularly, stop smoking and attend health screenings. If a policyholder’s efforts are significant enough, they could see a 2.25 per cent decrease in their premiums over the year. “In order to benefit from reduced premiums, consumers should think carefully whether they will actively take steps to improve their health. If not, it might be better to opt for a traditional protection product. A good adviser can highlight appropriate policies and can help consumers compare products so they are able to arrange protection for their specific needs. “Policyholders are also covered for severity-based serious illness cover, which works differently to most critical illness policies. “It is important consumers understand exactly what they are buying. People should view income protection, critical illness, life insurance, private medical insurance and mortgage payment protection insurance as a basket of goods, choosing which are most relevant for them at any given moment.” moneysupermarket.com has the following tips when looking for protection: Don’t always be lured by the lowest priced premium. Look at policy coverage and extras within the cover to make sure you are getting the best value for money Make sure your answers are correct and give all of your relevant personal information and medical history, or a subsequent claim might be rejected Always review cover at life-changing events such as a change of job, having children, a change in marital status, increased debt or moving house When replacing a policy, always seek advice and compare like for like, as the premium may be cheaper but the coverage might not be as comprehensive. Never cancel anything until the new cover is in place If the premium is too big for your budget, consider getting some initial CIC that you can add to later.

Low-cost car insurance expands

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:46:00 +0000

California's Low Cost Automobile Insurance Program just about doubled the number of counties this week where eligible uninsured motorists can get the minimum legal coverage for less than $400 a year. Amador, Calaveras and Tuolumne counties are among the 20 counties added to the list, bringing the total to 42. San Joaquin County motorists have been able to purchase the low-cost insurance for $292 annually since June 2006. Only 16 mostly small, rural counties, including Alpine, do not have the program, and state Insurance Commissioner Steve Poizner anticipates the insurance will be extended to them in the next several months. "Hopefully, it will be an option statewide by the end of the year," Department of Insurance spokesman Jason Kimbrough said. "Expanding affordable options among all lines of insurance is a priority for Commissioner Poizner. So this expansion is a great step. "This is real insurance underwritten by legitimate, licensed insurance companies. And as the program grows statewide and becomes better known, we'll see the number of uninsured motorists decrease at a greater rate," Kimbrough said. Insurers are required to notify the state Department of Motor Vehicles when a driver has a lapse in auto insurance coverage. The DMV is then required to notify the motorist about possible vehicle registration suspension if there is no proof of insurance provided within 30 to 45 days, depending on the circumstances. From Nov. 15 through July 31, the DMV mailed 54,921 "intent to suspend" letters to San Joaquin County motorists. There were 576,081 registered vehicles in the county as of Dec. 31. The state created the low-cost plan as a pilot program in 1999, starting with vehicle owners in Los Angeles and San Francisco counties. It was a way to provide low-income, good drivers with affordable liability insurance offered through California-certified insurance companies. Today, there are nearly 35,000 policies in force, and Kimbrough said 80 percent of those represent people who did not have auto insurance previously. Ninety-eight policies have been written in San Joaquin County as of July 31, he said. Statewide, there are 3.4 million uninsured motorists who continue to place a burden on the insured-motorist population. "One of the greatest misconceptions is that people think the low-cost automobile insurance program is a subsidy. That's not the case at all," Kimbrough said. "The insurance industry helps fund the California Automobile Assigned Risk Plan (which administers the program) and the premium does cover the anticipated costs," he said. Doug Heller, executive director of the Santa Monica-based Foundation for Consumer and Taxpayer Rights, which has advocated for the low-cost program since before its inception, took note of the small number of policyholders compared with the large number of uninsured. "The problem with the program is not the program. It's the awareness factor. Those 98 people in Stockton, they are better off for it, and anyone they're driving near is better off for it. But they probably had to work to figure out how to get insured," Heller said. First they have to hear about the program, then they have to make a phone call and get a list of insurance agents authorized by the state to sell the insurance. Then they have to find an agent on the list willing to sell the insurance, Heller said. "Insurance agents don't make a lot of money on this product, so they're not real interested in pushing it," he said. But the program has value to agents as a way to introduce a segment of low-income consumers to the insurance market, and the coverage has value despite the low numbers, Heller said. "One person insured is better than none, because there is no cost to consumers or taxpayers. Let's recognize that any accident caused by one of those 98 people in Stockton is an accident that otherwise would be paid for out of the uninsured-motorist premiums that people pay," he said.

After 2 years of ban, Connecticut drivers still chat on cell phones

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:43:00 +0000

It's hard to believe it has been two years that you've been ignoring the statewide ban on hand-held cell phones while driving. Time flies for scofflaws. OK, so maybe you bought one of the hands-free devices, but how often do you actually use it? Dave Olenoski climbed out of his pickup truck outside the post office in downtown Shelton on Friday morning wearing a hands-free earpiece, which he's used since shortly after the law took effect two years ago. He said it's hard to avoid using mobile phones. "You can't do away with cell phones completely in this day and age," the 51-year-old Shelton contractor said. Enforcement of the law this year is on track to more than triple the number of drivers caught in 2006, according to statistics compiled by the state Judicial Branch. More than 16,000 drivers had cases adjudicated in Superior Courts throughout the state between Jan. 1 and June 30 of this year. Still, tens of thousands, maybe hundreds of thousands, of drivers continue to ignore the law or pretend it doesn't exist. A recent poll, conducted by a leading maker of hands-free communications equipment, found that only 2 percent of drivers in New York, New Jersey and Connecticut have been caught violating the law, while at any given time 30 percent or more may be using hand-held phones. Even motorists with hands-free technology often don't use it, the poll indicates. Connecticut lawmakers — whose regular drives to the Capitol provide field research on the issue as they witness the misbehavior of fellow motorists — seem flummoxed by the general disregard of the prohibition against drivers using hand-held communications devices. They don't know whether to leave the current $100 fine in place, raise it to negatively reinforce bad-driver habits, or even reduce it on the theory that police would step up enforcement if motorists faced lower fines. "We are seeing more and more drivers violating the law," Rep. Richard Roy, D-Milford, said last week. Roy, whose multiyear effort to ban hand-held devices finally won approval in the spring of 2005, said Connecticut's roadside signage program should be improved along with enforcement. "We're continuing our efforts at education," Roy said. "I am coming up with some locations where we can put signs that would help tell the motoring public that we do have this law." While the state Department of Transportation has installed signs at the borders announcing the cell-phone regulations, Roy thinks more must be done. "What I would like to do is put them on the exits at the rest stops," Roy said. "People are going slower at that point and more people would be able to read them without buzzing by." Roy said his latest encounter with a distracted driver occurred recently on Interstate 91 as he drove to the Capitol. "A guy on a phone zipped by me and I saw him on the phone and he pulled back in front of me — I was in the middle lane — and all of a sudden he realized he was getting close to the guy in front of him and he started to go into the left lane, not seeing a guy coming up in the left-hand lane," Roy recalled. "He ended up fishtailing a bit. He straightened out, but it was so unnecessary. If he had been paying attention to what he was doing, we would have all been safer." Roy said that police officials have told him that if the $100 fines were reduced, there would be greater enforcement. "They could even set up checks like they do for seat belts," Roy said. "As one officer said, the seatbelt is a $37 fine. He said, 'I have no problem giving out a $37 fine. If the cell phone were $50, I'd have no problem handing out a $50 fine.' " Earlier this year, Rep. Thomas J. Drew, D-Fairfield, led an effort to increase the penalties, but it failed. "If you raise it to $250, like we were looking at, you're taking food off someone's table," Roy said. "I don't think law enforcement feels that $250 is commensurate with what the infraction is." Last month, Milford police conducted a two-week blitz on drivers using hand-held cell phones, netting about 400 infractions. Under the legislation, first-time offenders can avoid the fine by purchasing hands-free equipment and submitting the receipts to state prosecutors within 30 days. The state Department of Motor Vehicles reported last week that there are 2,426,278 valid drivers licenses; 2,177,567 registered passenger vehicles and a total of 2,997,050 vehicles, including trucks and buses. The total number of mobile phones is harder to gauge because of the various competing companies and technologies. While the state Judicial Branch reported that more than 9,800 people statewide were caught for violating the law during calendar-year 2006, this year, between Jan. 1 and June 30, 16,231 cases were brought to court, indicating a sharp increase in enforcement. Of the 16,231 drivers cited, 8,585 were let off the hook after producing evidence that they purchased hands-free devices. Those found guilty during the first six months of this year totaled 6,833, including 27 bus drivers and 16 drivers under the age of 18, who are prohibited from using any communications devices. Drew said last week that he's not sure which direction lawmakers should proceed, but something must be done to curb dangerous behavior on state roads. "The people are really just blatantly ignoring it and eventually someone's going to be very seriously hurt," Drew said. " We have to continue doing what we can to eliminate that unnecessary risk." He said many fellow lawmakers were opposed to raising the fine. "Whatever causes people to drive more safely and use hands-free devices, I support," Drew said. "I'm not sure how to actually do that. The key is to get the cooperation and support of the police." Sen. Gayle S. Slossberg, D-Milford, another lawmaker who logs thousands of miles a year driving to and from the Capitol, said last week that highway dangers go beyond hand-held phones. "People are on the phone or eating or playing with their radio tuners," Slossberg said. "There are a lot of distracted drivers." She agrees with Roy that more education would help, too. "We have a lot of out-of-state drivers and if you drive behind them they're always on their phones," Slossberg said. "Even though we have some postings that say this is the law in the state of Connecticut, it's just not being enforced." A recent poll conducted for Parrot Inc., which makes Bluetooth equipment, found that Connecticut drivers are more aware of the law than those who live in New York and New Jersey, which have similar laws. Connecticut drivers say they use cell phones about 30 percent of the time when driving. The three-state July survey of 900 drivers found that more than 70 percent of tri-state drivers who use a cell phone while behind the wheel have hands-free equipment, but still use their hand-held equipment almost 40 percent of the time. The poll — of people 18 and over who own cell phones — also found that women drivers and men and woman between the ages of 18 and 34 are most likely to use hand-held equipment on the road. Rep. Chris Caruso, D-Bridgeport, didn't own a cell phone until his recent challenge for the Democratic mayoral nomination necessitated it. He bought a hands-free Bluetooth device. "I don't like the Bluetooth," he said last week. Caruso said he has less concern about hand-held cell phone use on highways than he does along the hectic streets of his hometown. "In Bridgeport, the law is totally ignored," Caruso said. "People are driving through intersections, running stop signs, you name it." Like many drivers, Olenoski, the Shelton contractor, said he's not surprised that when he sees erratic behavior on streets and highways, it turns out that the driver was using a hand-held phone. "You know, you're driving behind someone who's swerving, who almost loses control and when you pass them you see they're holding a cell phone," Olenoski said. "Keeping the cell phone to minimal use is a good thing."

10 simple tips to save on car insurance

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:40:00 +0000

In response to two industry research studies this week on car insurance premium levels, James Harrison, chief executive of Insurancewide.com has issued the following advice to insurance seekers: Shop around for car insurance quotes before signing on the dotted line for your new car. Look for a competitive premium and a relevant (not just cheap) policy that covers you for the things that matter to you. Don’t just consider the price alone as quality of the insurance is also very important especially when it comes to making a claim. Be sure to compare policies on a like for like basis. Consider the excesses and exclusions carefully. A cheaper policy may be hiding a high excess and limited cover. Some insurers no longer include ‘Driving Others Cars’ as standard while others do not include a courtesy car. Read the policy carefully to ensure you have cover for all eventualities. Car insurers often offer better discounts if you choose to buy your car insurance policy online. Respect the rules of the road. Drive carefully, avoid claims and convictions and you will build up your no-claims bonus. In return, insurers will reward you with lower premiums. Keeping your car secure will help to drive down your car insurance premiums. If you have access to a garage, make the effort to use it rather than parking your car on the roadside. Alarms and immobilisers will act as a deterrent to thieves. Always remove detachable stereos and valuable items from the vehicle. Pay your premium in full each year if you can afford to. This way you will avoid the high APR’s that many insurers charge for monthly instalments. Inform your insurer if your annual mileage is low. If you use your car to commute to work, expect more expensive premiums. Younger drivers should avoid buying expensive high performance cars. Instead they should invest in a smaller cheaper car to start with. This way they can build up their no-claims discount and benefit from cheaper premiums later on. Never twist the truth when getting a quote for your car insurance. Insurers can refuse to settle a claim if the information you have initially provided them with is found to be untrue. Keep your insurer informed of any changes in your driver profile. You are obliged to inform your insurer of any convictions, changes of address or modifications to your vehicle – all of which can affect the premium you pay.

ND Leads Nation in Low Car Insurance Rates

noreply@blogger.com (Insurance World) — Fri, 05 Oct 2007 02:39:00 +0000

North Dakotans have the lowest average auto insurance premiums in the country.Acting Insurance Commissioner Rebecca Ternes says the National Association of Insurance Commissioners report shows North Dakota`s rates are the lowest for the second year in a row." I think it`s a combination of things," says Ternes. "Certainly we don`t have traffic, we don`t have congestion, like a lot states do all the time. That helps us an awful lot but we`ve had a very good couple of years with regards to major storms and we haven`t had the huge hailstorms which in the past have gone through larger communities, so there haven`t been as many claims, that certainly helps the industry." Ternes says another reason for low car insurance rates is because it`s a competitive market in North Dakota.