April 2009 News

Get TARP, it pays?
One of the more interesting developments to watch in the aftermath of the news that the U.S. Treasury Department could broaden its Troubled Asset Relief Program to incorporate select life insurers will be how MetLife Inc. chooses to play its hand.

The exact status of MetLife with respect to TARP participation is a matter for debate. There's been no indication provided either internally or externally that the company, which became a bank holding company by way of its 2001 acquisition of Grand Bank NA, did not apply for TARP funds. But at the same time, the company has gone out of its way to avoid commenting on its status when the matter has surfaced over the course of the last six months to such an extent that World Series of Poker contestants would be envious. (Read more!)

Insurance Sales Fall Most in Half Century Amid Slump
U.S. property and casualty insurers posted the biggest sales decline in half a century last year as corporations and individuals scaled back purchases, an industry group said today.

Sales dropped 1.4 percent to $434.6 million in 2008, the Property Casualty Insurers Association of America said in an e- mailed statement. (Read more!)

Market Barometer Report: P&C Rates Continue To Stabilize But Hazards Abound
According to Richard Kerr, Founder and CEO of MarketScout, "The trend towards rate moderation is continuing. Underwriters received a better net rate for each risk they wrote in March but their gross premiums probably decreased due to the impact of the current recession on almost all types of exposures, such as payrolls, gross receipts and property values. The moderation in rate reductions will yield more premiums but declining exposures will more than offset the improved rate." (Read more!)

P/C insurer growth to slow in coming years
Property/casualty insurer growth likely will be stunted in the next few years as companies deal with long-term trends in addition to global economic conditions, according to an article Friday by Standard & Poor's Corp. (Read more!)

2 women accused of staging bogus funerals to collect insurance
Federal agents arrested two women Wednesday -- including one who worked at a mortuary -- on charges of staging phony funerals to collect an estimated $1 million in life insurance and other payments.

The women bought insurance policies on fictitious people and, after the policies matured, arranged for bogus death certificates and burials or cremations for their nonexistent corpses, according to a federal grand jury indictment. (Read more!)

Market Updates

MarketScout Adds Aviation Specialist to Insurance Exchange
MarketScout announced the addition of JLT Aerospace to the MarketScout Insurance Exchange as the Aviation MarketSpecialist on April 8, 2009. JLT is a leading risk management adviser and insurance and reinsurance broker with great expertise in the aviation arena. With these extensive resources, JLT Aerospace offers an unprecedented level of expertise and accessibility to MarketScout.com users.
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CPCU Society’s Columbus Chapter Helps Future Insurance Professionals
The Columbus Chapter of the C.P.C.U. Society (Chartered Property Casualty Underwriters) recently increased their annual contribution to the Scholarship fund of the Loman Foundation. The Columbus Chapter of the C.P.C.U. Society will be giving three scholarships this Spring to deserving C.P.C.U. students to help offset the costs of their study materials.
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Express Scripts to buy WellPoint prescription unit
Express Scripts Inc. will buy health insurer WellPoint Inc.'s NextRx prescription business for $4.68 billion in a significant expansion for the large U.S. pharmacy benefit manager.
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