OHIO CASUALTY LAYS OFF 260:
Insurer Ohio Casualty Corp. announced that its 2004 fourth-quarter profit was $27.7 million, down 5 percent from last year's $29.1 million. Meanwhile, the Fairfield, Ohio-based company boasted that a company-wide efficiency initiative resulted in a layoff of 260 employees around the country and would save $5.5 million. Other highlights of Ohio Casualty's quarterly report a 2.8-point improvement in its combined ratio to 104.7 percent. Net income before realized gains and losses were $25.2 million, versus net income before realized gains and losses of $17.1 million. Results for the year included net income of $75.8 million, or $1.24 per diluted share, versus a net loss of $0.9 million, or 1 cent per diluted share, last year. For the year, Ohio Casualty's combined ratio improved by 6.7 points to 106.1 percent, and net income before realized gains and losses of $52.5 million versus a net loss before realized gains and losses of $30.3 million. An additional 150 to 250 positions are expected to be reduced company-wide before the end of second quarter of 2004.
FIREMAN'S FUND RECEIVES HIGH MARKS FOR ITS PRIVACY PRACTICES:
The Consumer Federation of California (CFC), a leading nonprofit consumer advocacy group, has awarded Fireman's Fund Insurance Company an A- for its privacy policy, the highest grade assigned to any property and casualty insurer doing business in California. Northern Calif.-based Fireman's Fund, a provider of homeowners insurance in the state and commercial insurance to middle market businesses, was among only eight companies to receive an A- or better. Following a survey of 55 financial institutions, the CFC gave two thirds of the companies low or failing grades, including many major property and casualty companies. Using the privacy provisions of Gramm-Leach-Bliley (GLB) as a baseline, the survey examined the controls voluntarily afforded to consumers regarding sharing of non-public personal information. Institutions were then graded according the level of control consumers have over their own financial information. Factors contributing to a higher grade were: 1) not sharing consumer information with affiliated businesses and non-affiliated third parties; and 2) if such sharing occurs, voluntarily providing consumers with the means to limit that sharing. "This study is independent validation of Fireman's Fund's commitment to protect the privacy of our customers, our agents and our employees," said Bill Paukovitz, chief privacy & security officer of Fireman's Fund. "Fireman's Fund does not share personal information with non-affiliated companies for marketing purposes. We believe that privacy is an inherent consumer right. We respect those rights and will do whatever we can to protect our customers from identity theft, from the sharing and selling of protected data, and from deceptive marketing practices." Four of the eight high-scoring companies were insurers. A total of 12 insurance companies were surveyed and received grades ranging from A- to F. To read the full report of the 2004 Financial Privacy Report Card, please visit: http://www.consumerfedofca.org/edufund.html.
IICF-CAPP PRESENTS 5th ANNUAL INSURANCE EDUCATIONAL FORUM:
The Insurance Industry Charitable Foundation— Child Abuse Prevention Program (IICF-CAPP), in partnership with the Mt. Diablo CPCU Chapter, will present their 5th Annual Insurance Educational Forum on April 8 at the Dean Lesher Regional Center for the Arts in Walnut Creek, Calif. The event will help raise money for IICF-CAPP to benefit local nonprofit organizations whose mission is to prevent child abuse and neglect in Contra Costa and Alameda Counties. The organizations hope to provide supportive programs that will help give stability and keep young people out of at-risk situations. The theme of the forum is "Forecasting the Future" and will feature several panelists. Joyce Sharaf of A.M. Best & Co. will discuss A.M. Best's view of the market. Robert Benvenuto, managing director of Gallagher Financial Products, will make a presentation titled "Art and Finite Insurance in the Real World." Mary-Lou Misrahy, executive vice president and chief operating officer of Employers Compensa-tion Insurance Co., will discuss the Calif. workers' comp dilemma, and Sandra Dickerson, CEO of Your People Profession-als, will make a presentation titled "PEO: Friend or Foe?" The Forum runs from 8:30 a.m. until noon. Attendees can earn three CE credits. For more information or for a registration form, visit the IICF Website: www.iicf.com or register on the Insurance Educational Association website at www.ieatraining.com.
MAJORITY OF CALIF. WILDFIRE CLAIMS RESOLVED, SAYS IINC:
A new insurer survey estimates that roughly three-quarters of claims stemming from the devastating October wildfires have been resolved. A poll by the Insurance Information Network of California of insurers representing more than 65 percent of the homeowners insurance market found that they have paid and completed 8,955 of the 11,841 residential fire claims for a total of more than $1.05 billion. More than 19,000 insurance claims were filed following the fires. "Fire survivors have done an outstanding job of working with their insurers to quickly file and resolve wildfire claims," said IINC executive director Candysse Miller. "And insurers, in turn, have responded. "The survey tallied homeowners and auto insurance claims paid through Dec. 31, 2003. Surveyed companies also completed 860 of 928 auto insurance claims resulting from the fires for a total of $5.01 million. With more than 3,500 homes lost to the firestorms, the majority of settled insurance claims are for so-called "partial losses," or household damage caused by smoke or even firefighting materials. Those who lost their homes may still face a long road to recovery as they work with architects, contractors and insurance representatives. Some neighborhoods have already taken extraordinary steps to work together to reduce rebuilding costs and speed the recovery process. For most of those who lost their homes, the new year marks a period when they must start setting a calendar of benchmark dates for decisions on rebuilding and completing insurance claims. Over the next several months, fire survivors may face deadlines for replacing possessions lost in the fire, and should keep in mind completion dates for additional living expenses set out in their policy contracts as they schedule their rebuilding effort. "Most fire survivors have already begun the process of rebuilding their lives by replacing lost possessions and planning their rebuilding process, however, they should consult with their insurance agent to confirm any upcoming deadlines for property replacement or additional living expense coverage," Miller said. Homeowners insurance policy contracts typically outline how much time policyholders have to replace damaged or destroyed property. If policyholders have replacement cost insurance, they may receive advance payments for the depreciated value for furniture, televisions, clothing and other household items. Once receipts have been provided to an insurer proving the items' replacement, the policyholder may receive additional funds to cover the expense. Insured fire survivors who have additional living expense coverage paying for temporary housing should also check their contracts and consult with their agents to confirm how long this coverage is available to them. This will also help them better plan a timeline for their rebuilding process. Insured losses from the 2003 firestorms are expected to reach $2.03 billion and result in more than 19,000 homeowners, auto and commercial insurance claims.
MINICO INC. LAUNCHES NEW COMMERCIAL INSURANCE TECHNOLOGY SYSTEM:
Phoenix, Ariz.-based MiniCo Inc. has announced the successful implementation of Renaissance, a new browser-based commercial insurance technology system designed to improve customer service throughout the organization's insurance division. Renaissance was designed and developed jointly with Systems Task Group headquartered in New York. With independent agents and insurance customers in mind, Renaissance addresses service, professionalism and customer care issues on every level from initial risk submission to policy issuance to subsequent service excellence. As "program administrator" for the Safeco Insurance Companies, MiniCo Inc. provides a self-storage specialty property and casualty insurance plan in America. MiniCo Inc. provides coverage and service to self-storage businesses through independent agents and brokers countrywide. The anticipated customer service improvements include shorter turnaround time for coverage proposals and premium quotations. Enhanced functionalities provide quotes, policies and appointments via e-mail with shorter processing time for endorsements, quicker response, faster action and customer service excellence. Announcing the system launch, Hardy Good, chairman and CEO of MiniCo Inc., drew attention to the importance of improved processes for all MiniCo customers, particularly independent insurance agents. "Our goal, implementing this new technology, is to make less work for agents, not more," said Good. "We are confident that independent agents will appreciate our more efficient, less time-consuming system." Rajendra Prasad, STG senior project manager noted, "Renaissance will go a long way toward building efficiencies and improving productivity at various levels of operations of MiniCo's multi-tiered business model."
CPIA SOCIETY ANNOUNCES NEW NAME AND LOGO:
The Certified Professional Insurance Agents (CPIA) Society, a national organization dedicated to providing sales training, networking and marketing innovation to insurance professionals, unveiled both a new name—American Insurance Marketing and Sales (AIMS) Society—and logo. The organization awards the Certified Professional Insurance Agent (CPIA) designation. "We've embraced a new name for the Society that clearly and succinctly reflects our focus on marketing and sales training," said AIMS Society President Michael Grace of Wright & Percy Insurance, Baton Rouge, La. "It also highlights our position as a resource to the entire insurance industry-agents, brokers, carrier personnel, and trade associations." Grace added, "The new acronym accurately mirrors the involvement of a broad range of professionals—agents, brokers and company professionals—in our education programs." The AIMS Society's Certified Professional Insurance Agent (CPIA) designation stands for professionalism, commitment to marketing and sales training and results, and a solid understanding of technical insurance knowledge. To earn the designation, candidates are required to successfully complete a series of three, six-hour seminars targeted to enhance the ability of producers, sales support staff, and company personnel to efficiently create and distribute effective programs. The designation requires a continuing education update every other year. The AIMS Society curriculum is approved for CE credit in most states. Founded in 1968 and based in Richmond, Va., the AIMS Society originally was known as the Fire Mark Society, an organization that recognized P/C agents for their sales excellence and professionalism.
