Allstate Insurance growth outlook

Allstate is looking to improve its home and auto insurance units by 2013. Executives at the massive insurance company spoke with investors the other day regarding the matter, saying that focusing on these units will help them recover from losses earlier this year.  Allstate’s auto insurance unit has been hemorrhaging clients for three consecutive years, a trend that executives expect to continue throughout 2011, only to see modest growth again in 2013. The renewed focus on these units comes after Allstate’s CEO, Tom Wilson, reported “inadequate returns.” As far as…

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Real time technology gives insurance agents a leg up

A new study shows that the number of independent insurance agents using real-time upload is going up. The study, IVANS’ 2011 Insurance Agents, Carriers & Technology Survey, shows that the number of agents using real-time upload from 2001 to 2009 has gone up by 16%. Furthermore, the study shows that technology plays a big role in trust levels agents have with their carriers. The findings suggest that more insurance companies are investing in agents to better connect with consumers. Agents use real-time uploads to keep consumers up to date on…

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Government looking for buyers

Several major businesses floundered in the wake of the global economic recession. Unable to recover in the early days of the economic downturn, many of these companies were allowed to fail. In the U.S., some of these companies received federal aid in the form of massive cash injections. The American International Group, an American insurance corporation, was one such company. AIG, however, mishandled the funds in one way or another, leading the government to seize the company. Now, The U.S. Treasury Department is selling shares of the company in the…

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Tensions mount between brokers and underwriters

The chief executive of Catlin Group spoke at a London conference earlier this week. The conference was sponsored by Insurance Day. In London, the brokers and the underwriters they work with have been in a dispute over payments and what some consider, ‘contingent commissions’.   Contingent commission is a term to describe payment to an insurance intermediary by the insurer or underwriter based on the profitability (or lower than average loss) of the business the intermediary placed with them. This practice was addressed in the U.S. several years ago; After a…

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Government eyeballs health insurance industry rate increases

Rising health insurance rates have become a major issue in the U.S. For months, legislators from several states have been struggling with insurance companies in an effort to lower rates and stop steep rate hikes. Insurers argue that they must raise their rates – some going so far as to raise their rates by 40% — in order to stay competitive in the market. The soaring cost of medical procedures and care is one of the major contributors to rate increases, according to insurers. The issue has gotten the attention…

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