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BestWeek: AAA Life Group Drives Big 2008 Increase in U.S. Group Life Issued

 

Tuesday, Jul 28,2009, 10:28:50 AM   Click:

While the overall U.S. life/health industry saw a 3% decline in group life business issued in 2008, three companies saw big increases, including one standout that’s not a typical group life writer, according to a recent A.M. Best Co. Statistical Study. AAA Life had the biggest increase in the top 25, according to this week’s issue of BestWeek U.S./Canada. New business growth from its life insurance segment continues to remain very active as the group benefited from its multiple distribution platforms and strong marketing relationships with AAA partner clubs, said Andrew Edelsberg, vice president at A.M. Best.

And in BestWeek Europe, confronted by new forms of distribution, sluggish premium and a difficult economy, the U.K. motor insurance market faces growing uncertainty. The rise of aggregators has enabled consumers to search the Internet for the best prices, making it more difficult for underwriters to increase premiums. And problems in the wider economy have squeezed commercial customers, causing some businesses to reduce the size of their fleets and insurance spending.

Also in BestWeek U.S./Canada, it’s a mantra for those resisting President Barack Obama’s deadline for health care reform: Why the rush? As the debate began, the president announced a deadline for the House of Representatives and the Senate to pass health bills: The first floor votes were to happen before Congress leaves on its month-long August recess. For those unfamiliar with the rhythms of the Capitol, such a date might have seemed random and easily moved. Though Obama lost ground on that end-of-July deadline last week, with the Senate majority leader calling it a no-go, the news isn’t all bad. Three of five committees passed health reform bills. Members of the remaining two are still working. And several major health-sector groups and industry associations—often at odds with each other—have declared support for reform.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please visit www.ambest.com/sales/BestWeek, or e-mail your request to customer_service@ambest.com.

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