Aviva USA granted patent for fixed indexed life insurance

Aviva USA has been granted US patent for 'maximization of a hedged investment budget for an index-linked insurance product' by the US Patent and Trademark Office.The patent involves Aviva's risk management processes related to the minimum guarantees on its indexed universal life insurance products.Thomas Godlasky, CEO of Aviva North America, said: "The granting of this patent underscores Aviva's commitment to innovation in the area of product development.

"It is truly a testament to the outstanding work being done by Aviva's product development team. As a company, our primary focus is on providing the best products and services to our customers, and the innovation behind this patent exemplifies that commitment."

news source : http://www.insurance-business-review.com/

The 5 Basic Forms Of Life Insurance

If you're like I used to be, you can get confused with all the different life insurance policies. Trying to understand what is what can be difficult at times. Here's an easy to understand look at the 5 different types of life insurance and what they are.

Annual Renewable Term Policy

Without a doubt, this is the most typical form of life insurance sold. With its level death benefit it is generally used to satisfy any outstanding bills and debts in the unfortunate event of your passing away. This life policy is relatively inexpensive for younger people. As you get older the more expensive the policy costs. Annual renewable term life is the purest form of lifeinsurance available.

Decreasing Term Life Policy

A decreasing term life policy decreases each year that the policy is in force. Why would you need a policy like this? It's mainly used to pay off a mortgage in the event of your death. Every other type of lifeinsurance other than decreasing term has a level death benefit.

5-Year and 10-Year Term Life Policies

5-year, or 10-year term life policies are for people who need level protection for a set number of years only. They are generally very inexpensive and are non-renewable.

15-Year and 20, 25, and 30-Year Term Life Policies

More of these term policies combined are sold than any other type of term life insurance. You can choose the length of term life coverage you need and pay a set level premium for that number of years.

These policies work very well with families with children. For example: you have a child that is 5 years old and you want to be sure that your spouse and child are taken care of in the event of your death. Your family will need to have sufficient cash on hand to not only meet the day to day needs of life, but to also have enough for your child's education. This can be a substantial amount of money.

A 15 or 20-year term life policy would fill this need perfectly. The premiums for this type of policy are also very affordable.

Whole Life Policies

This category also includes universal life, variable universal life, and variable whole life insurance policies. These life insurance policies will cost you much more per month with their premiums, but they also help you accumulate cash over a longer period of time. You can think of these types of policies as lifeinsurance with a savings account attached.

Premiums on whole life are set at the time you purchase the policy. Your age and health will determine the amount of your premium. As you pay your premiums you're also building cash value in your policy. Although the returns are not as high as you can get with other investments, you also have the lifeinsurance benefit in the event of your death.

Variable life, and variable universal life policies, can give you an even higher rate of return due to their returns being based on various investments.

news source : http://www.bestsyndication.com/

Citi offers $250m to hedge fund investors

Citigroup is coming under pressure to bail out investors in one of its troubled hedge funds, in another embarrassment for a company already among the biggest losers from the credit crisis.

The company has begun quietly asking private clients to accept a $250m compensation package, in return for dropping legal claims against the company. Banks which have sunk an estimated $1.6bn into the fund are also examining their legal options.

The problems stem from Citigroup's Falcon Strategies hedge fund, an investment vehicle that traded mortgage bonds, government debt and a range of credit derivatives, which began experiencing big losses when the credit markets ran into difficulties last summer. Thousands of Citigroup clients – advised to invest in the fund by brokers at its Smith Barney wealth management division – face being wiped out.

And three big regional banks, including Wachovia, one of the largest in the US, have also been forced to write off large parts of their investments, after putting some internal lifeinsurance money into Falcon. Wachovia posted a $315m loss on life insurance assets, largely as a result of its $1bn exposure to Falcon. Fifth Third of Cincinnati is suing the investment advisers which suggested it sink $612m into Falcon and which, it alleges, failed to pull the money back out again when the first signs of trouble emerged.

Citigroup is not involved in Fifth Third's lawsuit but it does face a class action from private clients. The action is being led by Robert Zeff, a Smith Barney client in Florida, who put $500,000 into the Falcon fund. He says the fund was marketed to clients as "an extremely low-risk investment".

news source : http://www.independent.co.uk/

Bank-owned life insurance at record levels

Bank-owned life insurance hit $120.4 billion in assets in 2007, up 15.9% from the previous year, according to Michael White Associates LLC. BOLI is a form of life insurance policy bought by banks on its directors or officers. The bank is the beneficiary of the policy and all premiums are tax-free, as is the capital appreciation in the contract, allowing the banks to fund employee benefits on a tax free basis.

Large top-tier bank holding companies — those with more than $500 million in assets — reported holding $117.5 billion in BOLI assets, up 16.4% from the previous year’s figure of $101 billion. Stand-alone institutions without a bank holding company reported $2.5 billion in BOLI holdings, down slightly from $2.9 billion in 2006. Bank holding companies with assets between $1 billion and $10 billion had the highest incidence of BOLI ownership, with 315 out of 375 holding companies reporting BOLI assets. “Overall, it’s a good tax-advantaged product for the banks in terms of non-interest income and a way to cover certain liabilities for providing benefits to employees,” said Michael D. White, president of the eponymous firm in Radnor, Pa.

news source : http://www.investmentnews.com/

Insurance carriers gear up for VA product season

As the weather heats up in May, so does the competition among insurance carriers that are releasing new features for their variable annuities. Offerings this season include enhanced riders as well as glitzy subaccount choices, or the investments within variable annuities, from Metropolitan LifeInsurance Co. of New York, Nationwide Financial Services Inc. of Columbus, Ohio, and Toronto-based Sun Life Assurance Company of Canada, along with others.

"Right now, it's a situation where folks are trying to get a sliver of the competitive angle, primarily in withdrawal benefits," said Richard Byrne, vice president of product management at Massachusetts Mutual LifeInsurance Co. of Springfield. "The arms race in the living-benefits world is crazy."

A key month on insurers' product development calendar, May marks a time when insurance companies update VA prospectuses to include their most recent annual financial statements. Because re-registration with the Securities and Exchange Commission is costly, carriers tend to time product changes so they can be incorporated in the updated prospectus.

Afterward, the companies devote their summers to training their wholesalers on the new features, promoting the product to advisers and gearing up for the selling season in September.

"This is a big effort with client seminars, ads. We're constantly developing products in the pipeline," said Mary M. Fay, senior vice president and general manager of Sun Life's annuities division.

news source : http://www.investmentnews.com/

Insurance carriers gear up for VA product season

As the weather heats up in May, so does the competition among insurance carriers that are releasing new features for their variable annuities.

Offerings this season include enhanced riders as well as glitzy subaccount choices, or the investments within variable annuities, from Metropolitan LifeInsurance Co. of New York, Nationwide Financial Services Inc. of Columbus, Ohio, and Toronto-based Sun Life Assurance Company of Canada, along with others.

"Right now, it's a situation where folks are trying to get a sliver of the competitive angle, primarily in withdrawal benefits," said Richard Byrne, vice president of product management at Massachusetts Mutual LifeInsurance Co. of Springfield. "The arms race in the living-benefits world is crazy."

A key month on insurers' product development calendar, May marks a time when insurance companies update VA prospectuses to include their most recent annual financial statements. Because re-registration with the Securities and Exchange Commission is costly, carriers tend to time product changes so they can be incorporated in the updated prospectus.

Afterward, the companies devote their summers to training their wholesalers on the new features, promoting the product to advisers and gearing up for the selling season in September.

"This is a big effort with client seminars, ads and [public relations]. We're constantly developing products in the pipeline," said Mary M. Fay, senior vice president and general manager of Sun Life's annuities division.

news source : http://www.investmentnews.com/

ICICI Prudential garners 68% growth in new biz premium

JAIPUR: ICICI Prudential Life Insurance firm has garnered retail new business premium of Rs 6,684 crore till March 31, registering a growth of 68 per cent over the last year, a top official said. The company had raised retail new business premium of Rs 6,684 crore for the fiscal ended March 31, company's Sr Vice President Poonam Bhardwaj told a reporters here today, adding that ICICI Prudential has underwritten nearly 3 million retail policies during the period.

Durimg the period, ICICI Prudential Life's capital stands at Rs 37.72 billion. ICICI Prudential Life has one of the largest distribution networks among private life insurers in India. It has over 952 branches in addition to 1,004 micro-offices and an advisor base of 291,000 in the country, she said, adding in Rajasthan alone there were 187 micro-offices for rural people.

news source : http://economictimes.indiatimes.com/

Borrowers urged to get life insurance

Mortgage borrowers have been encouraged by an expert to get life insurance to cover their repayments. Writing on financial advice website Fool.co.uk, Jane Baker has said that such cover can "often go hand-in-hand" with taking out a home loan, as it is important that borrowers ensure they are protected "if the worst happens".

The expert went on to explain that reviewing life insurance when moving home is also important. "Many of you may already be in the habit of putting life insurance on your shopping list when you buy your first home," she wrote on the website. "But what about increasing your cover when you move to a larger property later on? A shortfall in your cover could be a costly mistake."

Recent research by Unbiased.co.uk claimed that a fifth of people who visit an independent financial adviser do so for help on mortgage of property buying issues. It was found that, along with retirement planning and investments, mortgages were one of the most popular reasons for people to seek advice.

news source : http://www.earth.co.uk/

CBC Approves Cathay Life to Underwrite Policies in Greenbacks

Taipei, May 12, 2008 (CENS)--The Taiwan-based Central Bank of China (CBC) recently approved Cathay Life Insurance Co. to underwrite conventional insurance policies in greenbacks, the first instance of such practice in Taiwan. Cathay Life said it was first approved by the Cabinet-level Financial Supervisory Commission in March before being approved by CBC. The insurer promises to kick off sales of the newly designed policies as soon as possible.

Originally, Cathay Life set the designated annual interest rate for the greenback-denominated policies at 3.5%, which has been slashed to 3% in the wake of the drop in interest rate for U.S. dollars. The designated annual interest rate is used to regulate the level of insurance premiums to be paid by consumers, where higher the designated interest rate, the lower the payable premiums, and vice versa.

At present, the designated annual interest rates set by domestic insurers are between 2.5% and 2.75%. Originally, domestic life insurers believed such annual interest rates for greenback-based policies would reach between 3.5% and 4%, leading to a 10% to 30% reduction in premiums for such policies. As the interest rates on the greenback-based policies have plummeted, consumers have to pay more to take out insurance than expected. The recent depreciation of the greenback has diluted the popularity of U.S.-dollar-based insurance policies; but Cathay Life argues that it`s the right time to take out greenback-based policies as consumers would pay relatively less N.T. dollars in premiums.

Cathay Life said that the U.S.-dollar insurance policies fits the need of consumers in terms of effective financial management, especially considering that the insurer is targeting people planning to move overseas, those who want to go abroad for study, and those aiming to buy overseas property. Taking out greenback-based policies can be viewed as a way to hold foreign-currency assets.

Recently Cathay Life has begun recruiting salespeople to market these U.S.-dollar insurance policies, with another four domestic life insurers, including Shin Kong Life Insurance Co., Fubon Life Assurance Co., Prudential Life Insurance Co. and Nan Shan Life Insurance Co., also having applied for approval for such business from the FSC and CBC.

news source : http://news.cens.com/

Prime Life Insurance to commence service from June

Prime Life Insurance Company Limited has obtained operating license from Beema Samiti, the regulator of the insurance sector in Nepal, to conduct life insurance business in Nepal.

The Company is promoted by Nepal’s leading and highly prominent business groups having widely diversified business interests and expertise. Laxmi Bank Limited, a leading commercial bank in Nepal, is one of the promoters with a significant stake.

The Company will commence its operations from 1st week of June, 2008 and has plans to offer life insurance products bundled with innovation and superior customer services.

news source : http://www.nepalnews.com/

Trichy tops in Rural Postal Life Insurance

The central region of Tamil Nadu postal circle headquartered at Trichy bagged the numero uno position in the country by selling Rs 1,017 crore worth of Rural Postal LifeInsurance (RPLI) in 2007-08, surpassing the target of Rs 690 crore by 47 per cent. The Vijayawada region followed by garnering a business of worth Rs 650 crore.

Addressing the media here, SP Rajalingam, post master general, central region-Trichy, said the region had, since the launch of RPLI in 1995-96, sold 830,000 policies for a sum assured of Rs 3,557 crore.

Trichy also recorded an increase in international money transfer service during the year by enabling 416,000 transactions over previous year's 169,000 transactions. The region covers 24 head post offices, 64 sub offices and 2,839 branch offices.

news source : http://www.business-standard.com/

Bill targets insurance predators

OKLAHOMA CITY -- The Oklahoma Senate has given final approval to a bill aimed at protecting citizens from predatory investors who profit from lifeinsurance policies. The bill, by Sen. Sean Burrage, was approved on Thursday and now goes to Gov. Brad Henry. Burrage said there is a growing national trend where unsavory investors provide a financial incentive for a senior citizen to purchase a lifeinsurance policy and agree to sign over ownership of the benefits after a set amount of time has expired.

The practice is called "stranger-originated life insurance" (STOLI) and is designed to provide investors with profits from the deaths of senior citizens. "Today, we took a step in the right direction to better protect Oklahoma senior citizens from financial predators," Burrage said. "Outlawing these types of transactions will make fiscal predators think twice about trying to strike a quick pay day in Oklahoma." "These moneymaking plots pervert the purpose of life insurance and prey on people in a time crisis. We have a responsibility to protect the benefits of our senior citizens and their families," he said.

news source : http://www.tulsaworld.com/

Consumer Smarts: Life insurance can buy peace of mind

Buying life insurance is about as thrilling as getting a root canal. Who wants to dwell on what might happen should you die too soon? File this task in the dreaded-but-necessary category of things you need to do in life, but don't ignore it, especially if family members rely on you for financial support. Life insurance can provide you with incredible peace of mind knowing your debts, expenses and survivors will be taken care of in the event of your untimely death.

Q: What should I know about buying life insurance?

A: Decide what you want, how much you need and what you can afford to pay. Shop around and compare rates; with rates for term life dropping significantly in the past decade, it's a competitive market. Get at least several quotes, and check the financial strength of the company. Read your policy carefully and never buy one you don't understand. Don't cancel or let your old coverage expire until your new policy takes effect. In Washington, the law gives you a 10-day "free look period" when you buy life insurance. If you change your mind and return the insurance policy during those 10 days, the company must give you back your premium within 30 days. Just be sure to get a dated receipt from the post office or the agent. One of the biggest mistakes consumers make is buying life insurance when they don't need it, and not buying it when they do need it, said Robert Hunter, director of insurance for Consumer Federation of America.

"The only time you absolutely have to buy life insurance is when you have a dependent relying on your income stream," Hunter said. You don't need life insurance if you're single, unless you have a sibling or parent depending on you financially. If you're married without children, consider whether each of you would be OK alone if the other person dies. If the answer is yes, you still don't need it, he said. If the answer is no, then you may need it. Most people should buy life insurance when they have a child, he said. There are two basic types of insurance: term and cash value (permanent). Term pays the face amount of the policy if you die during a specific period, usually one to 30 years.

Cash value -- such as whole life, variable life and universal life -- provides lifelong protection with a savings component; it builds up cash value on a tax-deferred basis. You usually can cash in or borrow against the policy. According to Consumer Reports, cash-value insurance can provide both estate-planning and tax advantages for well-to-do people over 60. But most 20- to 50-year-olds should stick to a term-life policy because it's the simplest, least expensive way to protect yourself.

news source : http://seattlepi.nwsource.com/

Life biz may turn slack

And there are indications the red-hot business may just cool down a tad further this year. "We believe the life insurance industry is potentially headed for a slowdown," A recent Deutsche Bank report said, adding, "Weaker equity markets are primarily responsible for the slowdown, but the sheer extent has taken us by surprise." A look at the year-end figures of life insurance business tracked by the Insurance Regulatory and Development Authority (Irda) in 2006-07 and collated by DNA Money shows that the scorching pace of growth witnessed earlier was tempered in 2007-08, with significant changes in market shares between LIC and private players.

The state-run Life Insurance Corp (LIC), for example, grew premium collections by a mere 6% in 2007-08. What is really surprising, tough, is that this sluggish growth came after LIC grew a whooping 118% a year before! A break-up of the un-audited data shows that LIC registered a de-growth in its individual non-single premium plans and group single premium plans during the year, although its portfolio mix in the respective years remained almost the same. As a conscious strategy, LIC grew its single premium plans by 21.3% during the year. In the private sector, the picture is slightly different. For one thing, all segments registered growth. While single premium income grew 28%, individual non-single premiums grew 86.82%.

In the group category, group single premiums grew by 28%, whereas group non-single premiums recorded a 69% growth. As of March 31, the first premium income with private life insurers stood at Rs 33,806 crore. The figures with Irda also reveal the see-saw battle between LIC and the private players when it comes to market share. In 2006-07, the life insurance industry grew 110%. LIC grew 118% in the year, and increased its market share to 74.2%, driven mainly by a massive 136% growth in single premium policies. The private sector on the other hand, had 25.8% market share.

news source : http://sify.com/

Adviser to discuss benefits of life-insurance policies

Just how good of an investment is life insurance? Bob Arms of Marotta Wealth Management Inc. in Charlottesville will discuss the differences and benefits of permanent and term lifeinsurance from 7 to 8:30 p.m. Wednesday at the Tuckahoe Library on Starling Drive in western Henrico County. The talk is presented by the National Association of Personal Financial Advisors Consumer Education Foundation, a nonprofit group.

Arms will discuss the pros and cons of both types of policies. His talk will center on how individuals can look at the two types of policies, their the returns and costs, and then make the best decision. The key, he said, is to analyze life insurance as a piece of property and an investment tool, rather than something that remains stagnant. Life-insurance benefits can be looked at as either life benefits or death benefits. The important thing is figuring out which is best for each individual, he said.

Arms said he will make his presentation as an adviser and has "absolutely nothing to sell." He has sold life insurance for nearly 30 years, and each type of policy has its benefits.

news source : http://www.inrich.com/

Instant Overview of the Ukrainian Non-Life Insurance Market for 2008

DUBLIN,Ireland-(BUSINESS WIRE)-Research and Markets has announced the addition of "Snapshots Ukraine Non-Life Insurance 2008" to their offering. Snapdata's Snapshots Ukraine Non-Life Insurance 2008 provides 2007 year-end market size data, with 2008 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the Ukrainian non-life insurance market and covers property, financial risk investments, road freight transport, private compulsory, personal, and general liability insurance. Market value is based on gross premium income. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Ukraine Non-Life Insurance 2008 forms part of Snapdata's Financial Services industry coverage.

news source : http://www.businesswire.com/

Indian prostitutes receive life insurance

Around 250 sex workers in India's eastern city of Kolkata have, for the first time received life insurance cover from a State-owned corporation. They believe this to be a step forward in their long standing crusade aimed at legalising their profession to help bring them into the mainstream and fight poverty and discrimination. "The policy from the Life Insurance Corporation of India may not change much in our life, but this small step is a giant leap forward in our struggle for legal recognition of sex work," Bharati Dey of the Indomitable Women’s Coordination Committee in Kolkata, formerly Calcutta, said.

The committee that campaigns for safe sex and to make prostitution legal has 65,000 sex workers as members in eastern Bengal province of which Kolkata is the capital. "We live in no-man’s land and this is the first time that a government company has recognised us as professionals", declared 45-year old Dey from the city’s Sonagachi red light district, one of Asia’s largest. Although illegal, prostitution is a thriving business across India with an estimated two million female sex workers, the majority forced into it by poverty. Mamata Nandy, 35, a sex worker and a proud policy holder, said recognition by a company like the Life Insurance Corporation would also strengthen the fight against AIDS which in India is transmitted primarily through prostitutes.

According to UNAIDS, India has some 5.7 million people infected with the AIDS virus HIV, the highest such number compared with any place else. The insurance policies, which are now expected to include to sex workers outside Kolkata, are not the only advance for women in the world’s oldest profession. In the western port city of Mumbai, a bank run by sex workers was established some years ago to help free them from exploitative brothel owners who maltreated them and kept them in wretched conditions. Started by a handful of sex workers in Kamathipura, Mumbai’s red light district, it now has hundreds of clients.

news source : http://www.telegraph.co.uk/

SBI may partner Insurance Australia Group for non-life insurance JV

MUMBAI: State Bank of India (SBI) will announce its non-life insurance joint venture (JV) in June. The bank has shortlisted its potential partner, and is now finalising terms of the JV agreement. SBI was earlier in advanced talks with Insurance Australia Group (IAG) for its JV partnership. Sources said that the foreign partner would pay a premium for its 26% stake. However, the premium may not result in a gain, with the bank looking at pumping in funds into the proposed venture.

“Considering the distribution network and the strength of the SBI brand, we expect a substantial premium,” said a senior official. The broad contours of bank’s business plans are being formulated by SBI deputy managing director (corporate strategy and new business) Deepak Chawla. When formed, this would be SBI’s third major foreign JV. The bank has partnered French insurer Cardif, a part of the BNP Paribas group for life insurance. Like all other foreign insurers, Cardif holds 26% in SBI Life, the maximum permissible in any insurance business. When contacted, IAG chief representative in India Matt Harris said that he was not in a position to comment either on IAG’s plans or on the timing of its entry into the non-life business in India. He, however, did confirm that the company was interested in the Indian market.

IAG is an international general insurance group with operations in Australia, New Zealand, Asia and the UK. The group underwrites around $7.4 billion of insurance premium each year and insures around $990 billion worth of property and employs around 16,000 people. According to sources, SBI is in talks with an Australian insurer for the proposed venture. The only other leading non-life Australian insurer is QBE, which has already entered into a partnership with the Rahejas. SBI’s entry into non-life is expected to change the game in the general insurance business. Today, motor and health insurance accounts for 65% of non-life insurance in India. SBI’s 13,000 branch network and its portfolio of auto loans and credit cards puts the bank in a strong position to cross-sell auto and health insurance.

Another advantage that the bank has is the distribution network of SBI Life Insurance — the third-largest life insurance company in the private sector. SBI Life’s insurance agents are among the most productive in the country. According to existing guidelines, an agent of a life insurance company can sell non-life insurance as well.

news source : http://economictimes.indiatimes.com/