BestWeek: Insurers Resist Being Declared the Bad Guy in Health Reform

OLDWICK, N.J.--(BUSINESS WIRE)-- President Barack Obama, for a stretch of several days, appeared publicly to talk about reforming the health care system, according to an article in this week's issue of BestWeek U.S./Canada. Each time, he suggested that health insurers are raking in profits and that a government-run insurer needs to be established to keep them honest. More than ever, the pro-reform effort is re-framing its rhetoric to suggest this is a fight against the insurance industry. Instead of health care reform, Democrats are increasingly calling it health insurance reform. But the industry is answering back, reminding the public that it's in favor of major changes”and has been since before the congressional session began.

In BestWeek Europe, Hannover Re counted on organic growth, deft adjustments in its property/casualty portfolio and surging life reinsurance business to manage a 66.1% gain in first-half group net income, which rose to 419 million euros (355.1 million pounds). The reinsurer's operating profit rose 49.9% to 600.1 million euros. Hannover Re showed an operating profit of 294.2 million euros for the second quarter, up 90.4% from the second quarter of 2008.

Also in BestWeek U.S./Canada, while they keep close watch on what Washington has in mind for insurance issues, state regulators are playing a significant international role as well. Critics, however, say the fragmented nature of insurance regulation in the United States still leaves the United States outgunned in dealing with their counterparts in Europe and elsewhere. The National Association of Insurance Commissioners is participating in the Financial Sector Assessment Program, a joint World Bank/International Monetary Fund examination of financial and regulatory systems around the world. The NAIC holds a handful of seats on the executive committee of the International Association of Insurance Supervisors. Members and staff are working on efforts to integrate with the European Union's Solvency II process.

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Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.



A.M. Best Co.

Caroline Saucer, 908-439-2200, ext. 5774

caroline.saucer@ambest.com

Source: A.M. Best Co.