Sunday 28 October 2012

MetLife, the largest life insurer in the United States

MetLife, Inc. is the parent company of the Metropolitan Life Insurance, commonly known as MetLife. The company was incorporated on March 24, 1868. Most travel companies in the form of private organizations together, but eventually went public in 2000.

MetLife is the largest life insurer in the United States, with more than U.S. $ 3.3 trillion of life insurance funds under management. As well as being a leading company in the products and services of savings, pensions, and other good for small businesses up to large institutions, MetLife including 90 of the 100 biggest companies of Fortune magazine's corporate world.

The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, USA. Some of the Executive and the Council remains based in MetLife MetLife Building, although the building was sold in 2005.

As reported by the site wikipedia, the history of the company of Metropolitan Life Insurance (MetLife) began in 1963, when a group of businessmen from New York City to raise $ 100,000 to set up a joint National Union Life and Limb Insurance. The company provides insurance in the event of the Civil War, where many sailors and soldiers to defect because of his war injuries, accidents and diseases.

The 20th century
In 1998, the board of directors authorized demutualization. And in 2000, the Metropolitan Life Insurance (MetLife) launched the seventh-largest IPO ever held in the United States.

MetLife was the first insurance company to establish financial holding company with a nationally chartered bank, in 2001. Leveraging unparalleled distribution channels, MetLife entered the retail-banking arena with the launch of MetLife Bank.

On March 8, 2010, Met Life announced the acquisition of the life insurance business of international leaders, American Life Insurance Company (Alico) from American International Group (AIG). MetLife will pay about $ 15 billion, including $ 6.8 billion in cash and the remainder in equity securities. On 3 November 2010, MetLife completed the acquisition of American Life Insurance Company for $ 16.2 billion.

Thursday 6 September 2012

Strategies in the World's Insurance Business

In the last 10 years there are very wide competition at the level of knowledge, product innovation and strategy in insurance business. Creation of new values ​​in the insurance business began to unfold with the rise of consumer insurance and the development of the insurance market itself,such as:

1. Knowledge in risk management's insurance is rapidly increased. They began to make calculations of the premiums they pay to the frequency and intensity ( severity ) of the risks that they face. This realization encourage contracts with insurance deductibles and low premium sand also the spread of captive insurance.

2. The more saturated the world's insurance market, especially in America and Europe, along with the stagnation of market developments with implications for the low level of price premium. The level of insurance premiums in the United States since 1988 actually increased when calculated with inflation in the same period. While Europe experienced market saturation due to higher life insurance policy ownership per head and the number of insurance companies in the market (about 5000 companies for 18 western European countries).

3. Financial institutions such as pension funds, Insurance, Reinsurance, Investment Bank and Asset Management began to realize that in fact they compete in similar fields. Business characteristics of these institutions has been thinned, so that they appear as new competitors in the insurance business. This fact was used by the insured to undertakehedging and transfer the risk it has with other forms of more innovative.
All three of the above forced companies engaged in the business of insurance "gasped" to find new strategies to remain "survive".

These strategies includes:

1. Mergers and acquisitions. Surely this is an old story in any business.But for the insurance world, it became a phenomenon most evident at the end of the second millennium. Mergers and acquisitions's phenomenon to the fore because of the saturated market and increasing competition. Other than that this is done to stabilize the loss portfolio companies and beneficial in increasing the market share instantly.

2. Improve the core competence of the divested business. Swiss Re sold to Allianz insurance company losses and acquired life reinsurance company in the UK.
Increase marketing efficiency. The purpose of this strategy is to get closer to the service and market relations.

3. Expansion into the Capital Market. Mid '90an characterized by the emergence of derivative products from insurance business was sold to the capital markets as catastrophic bonds in 1994 and followed with a variety of bonds and other derivations to gain additional capital from investors. With products this derivation, insurers / reinsurers to its medium accountabil-dependents because the risk is actually the investor. This investment strategy arising from intense competition and high combined ratio ( loss ratio plus expense ratio management) anywhere in the world as well as the market began to weaken. As a result, profit from underwriting income is no longer expected to be the spearhead of the insurance business as it did 10 years ago. Actually, insurance companies have changed the focus of the business due to trends like that. From a business that only underwrite the risk and benefit for their underwriting to move business to accumulate funds from the public and make a profit through the investment of premiums collected.That causes world class reinsurers are now starting to acquire investment in the bank.

Thursday 12 July 2012

U.S Supreme Court Has Approved Health Insurance Act

U.S. Supreme Court gave President Barack Obama a major victory, the legislation established health insurance with sound controversial 5 to 4.

A law called the "individual mandate" that requires Americans to buy health insurance or be fined.
The Obama administration argues that the "individual mandate" is valid in the U.S. constitution because all Americans will require health care at some point in their lives, and there is no practical alternative except insurance.

Twenty-six states filed a lawsuit against the reform law, arguing people can not be forced to buy insurance, a product that they may not want or need.

Health insurance legislation that has been the most contentious issue in the 2012 presidential election campaign. Republican presidential candidate Mitt Romney has vowed to overturn legislation that if he is elected in November.

Friday 8 June 2012

Part II: How Insurance Company in the U.S Choose a Reinsurance Company

This post is related to " How Insurance Company in the U.S Choose a Reinsurance Company"

Of particular interest is the six of the top fifteen factors closely associated with interpersonal relationships, proving that when the market is already have a very complex interpersonal relationships remains an important factor because company's ranking in the U.S. is very important because it will affect the position of the enterprise in the capital markets which will lead to financial performance.

The sixth factor relates to whether the underwriters of the reinsurance company has sufficient authority or is it still too often to seek approval from his superiors.

The order of the sixteenth to thirty are factors about the ability of a reinsurance company to produce products that may be required by the insurance company. This includes innovative new programs (no. 17) and provide solutions that are not common (no. 24).

On the role of the reinsurance broker, there is only 19% of insurance companies will always use a broker in placing their reinsurance, 25% would rather do it myself and it turned out almost 30% of insurance companies in the U.S. do not have a preference whether to always use a broker or not getting anything at all for their business.

Amid conditions where reinsurance brokers merged and consolidated, they showed increased role in the American market. But an increasing number of reinsurance premium is not channeled through the broker lacks the increasing role of brokers as providers advises to insurance companies. More insurance companies require broker reinsurance market because they know very well, not because of their ability to give advice on how to run an insurance company (one of the functions is a trend of brokers in the USA).

One of the most desirable condition by insurance companies in the United States is a condition in which a reinsurance company willing and able to understand the philosophy of underwriting, claims and goals of their company.And this may be acquired if the approach taken by the re-insurer conducted in a approach as a valuable partner and not as a seller and a buyer.

Friday 6 April 2012

Weather Insurance for Small Companies

Japan has introduced a new type of insurance in the form of weather insurance. This type of insurance is to anticipate a decline in profits due to the cool summer climates (cool summer). Target sales of this type of insurance is a small company engaged in the service such as rental homes (huts) that are used by tourists on holiday edge beach, restaurant manager, swimming pool, ice cream industry and other small businesses whose sales concentrated in the summer.

How it works as follows: The number of days in the summer in August determined only for 10 days. Summer day is defined as a day where the temperature is more than 30 0 C. When the days of summer numbered less than 10, then asuradur indemnify in accordance with the deficit because of the small number of summer days. For example, such compensation is determined $ 5,000 per day, if the number of summer days in August was 6, then the amount of damages amounted to $ 20,000 as compensation for deficiency 4 days of summer.

Application closing risks should be completed before entering the period of insurance in August. Determination of the sum insured are free, but the overall limit of indemnity specified maximum profit margin incurred in August of the year with gains in August of the previous year. While it has been designed also some kind of insurance to cover the risk of a fall in profits due to abnormal weather conditions, such as warm winter, heavy rain or sunshine insufficiency.

Wednesday 21 March 2012

Part I: How Insurance Company in the U.S Choose A Reinsurance Company

The factors which affects the insurance companies in the United States for choosing the reinsurance companies are as follow:

- The reinsurance is financially secure
- Trustworthy
- Easy to work with
- Open to negotiation
- Consistency of underwriting decisions
- Competitive Price
- Always give choices
- Good grades according to the Rating Agencies
- Providing genuine concern
- There's collateral claims settlement
- Authority underwriter
- Underwriters are easily to be contacted
- Consistency prices
- Speed ​​in the handling of documents
- Low interaction cost
- Superior in business Casualty
- Have programs that are creative and innovative
- It has a large capacity for business Casualty
- Have the capacity to provide Integrated Products
- Having a good quality of claims settlement
- Having a skilled and flexible staff
- It has a large capacity to the Property Catastrophe
- Having the ability facultative high
- Having the ability to do all the courses
- Providing solutions that are not public
- It has a capacity of multi-line
- Can provide a turn-key products
- It has the capability of modeling
- It has a high capacity for business property
- Having a reliable actuarial
- Respected by brokers
- It has a large capacity for business property
- Having actuarial data well
- It has the ability of dynamic financial analysis

More details are to be updated on to the next post.

Wednesday 1 February 2012

How to Achieve an Effective Completion Claim In 10 minutes

The most important step in dealing with property claims is the first contact with the insured customer. If this stage is going well then the next process will give a satisfactory result for the adjuster and the insured.

The following are suggestions a few effective ways to complete the claim in 10 minutes. Even though it looks simple and basic, yet often overlooked, but can prevent the problems that occur in a settlement of claims.

1. Calm the insured customer
Loss suffered is something painful to the insured because of all the effort, money and pride in their hard work disappear in a moment. Therefore we have to empathize with the suffering of the insured; say that we understand their current situation and will try to help as best we can. Emphasize also that we need their cooperation.

2. Explain the claims settlement procedure
Insured customer is generally do not pay attention to the claims handling procedures, so we have to explain the following reasons why the move is necessary to do. It is very important to explain to them the risks, limits and items that are guaranteed by the policy. Thus, the insured will know what they can expect from the settlement of claims.
Rupture process into several parts to be easily understood by the insured who are panicking. For example, what to do before, during and after the inspection, as well as what to do after the claim is paid.
Explain that the task is to determine the adjuster guarantees and examine the value of the loss, not for repair the damaged items.

3. Find out what's going on
We should ask questions that are specific to avoid unnecessary conversation, for example, do not ask "Where is the leak occur?" but ask "In what room leak happened?" and we will get an accurate answer.

4. Find out what items were damaged
Tell the difference between the insured items home ( dwelling ), content (content ), and equipment and other structures as it will simplify and speed up the data collection items that were damaged. Say that inventory loss is their duty in accordance with the provisions stated in the policy. Besides, they will be more familiar with the belongings of their own from the adjuster.

5. Is there a third party involved
Ask the insured if the loss is caused by the mistakes of others. By asking this information then sub-rogation process can begin immediately because it usually takes a relatively long time and sometimes have to wait disposition of the insured.

6. Let the customer know what they need to do next
Tell the insured obligations in the handling of claims in order to reduce the false presumption of the insured against the insurer and the insured to avoid the possibility of saying "I was never told".

Firstly, the insured should be reminded to take steps necessary to prevent further damage, for example, cover the steps necessary to prevent further damage, such as closing a pipeline leak .

Secondly, the insured must try to reduce the damage, such as moving things from a puddle of water, separating the damaged goods are not damaged.

Thirdly, the insured must allow inspection of the goods suffered losses and had to maintain the condition of the goods until the adjuster conduct research.

Fourthly, the insured must prove all aspects of filing claims.

Lastly, insured must support the efforts of sub-rogation.

If the insured complained that he had too much to do, then answer that we understand but it is important that the resolution process can run faster and smoother.

7. Tell the insured customer to give an estimate and calculate
Have all the receipts or estimattion include a description of the goods were damaged, where the goods are placed, what has been done on these items (repair or cleaning) and how the price was calculated (time purchases, materials, price per unit). These data are very helpful in verifying the age and value.

8.Give them your name and phone number
Insured would feel better if there was someone who was always willing to help.It's not enough to just know the insured's Customer Service telephone number.We should tell the name and phone number so they can call when needed.

9.Give a bit of time for Estimated Time of Completion
Should we loosen the estimated completion time of a claim in order to avoid disappointment insured when we have time to complete the unfulfilled promise.

Besides, do not make the commitment before we can ascertain the cause of the loss, bail and detail loss.

10.Take note everything in detail for proofs for all the details that have been made
We should note the date and time of all conversations and the names of the people we spoke to. Write down what they say and what we tell them because we can not possibly expect the insured will want to write the conversation. And also, recording what we do can be used as support in the event of a dispute.

Thursday 12 January 2012

Tips on How You Should Consider Purchasing a Life Insurance

To consider purchasing life insurance, these are the following tips for you:

1. Understand why you need it, especially with regard to the policies set by the insurance company.
2. Before buying, do a lot of research by looking for information about life insurance from other people who do understands.
3. Ask your friends to recommend a life insurance agent that they trust, and do have the ability to help and serve customers.
4. Buy when you're healthy in financial condition. The sooner you buy, the better. That is when you are still healthy, young age, and you have not used the money to pay other bills burdensome.