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Seventy-five percent of all Americans have confidence in life insurance companies and the percentage jumps to almost 90 percent when looking at Americans who own individual life insurance, according to a new survey conducted by LIMRA.

In its most recent consumer sentiment survey, LIMRA found that consumers who have seen life insurance make a positive difference — either directly or indirectly — were more likely to feel confident in life insurers than those who had no experience. (chart)

“This study further confirms what I have believed throughout my career: life insurance provides the financial security that allows families peace of mind if the unthinkable happens,” said Robert Kerzner, president and CEO, LIMRA, LOMA and LL Global. continue

Blue Cross Blue Shield of Tennessee is looking into opening a retail “store” in the Nashville area that may focus on offering free health and wellness services and it won’t be selling health insurance, at least at first. The store would be part of Blue Cross’s effort to prepare for the new market created by the health exchanges envisioned by the health reform law, said Mary Danielson, a spokeswoman for the Tennessee Blues.

Under the federal Patient Protection & Affordable Care Act, individuals and small businesses with 100 or fewer employees can buy coverage through state-based health insurance exchanges set to be established in 2014, when the individual mandate to buy health insurance or pay a tax penalty, kicks in. These are to be online central shopping hubs for standardized plans. continue

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Consumers Union called on Blue Shield of California to drop its plan to hike premiums on some of its customers beginning March 1. Blue Shield announced late last year that it intends to raise premiums an average of 14.8 percent or up to an average of $979 per year for almost 56,000 individual and family plan members.

Consumers Union filed comments on Blue Shield’s rate plan with the Department of Managed Health Care (DMHC) that raise serious concerns about the insurer’s third double digit rate hike in the past three years. This latest rate hike is on top of last year’s average increase of 17.6 percent on these same health plans. The average increase in 2010 and 2011 combined was 37.5 percent. Blue Shield continues to raise rates despite having approximately $3.3 billion in surplus. Consumers Union’s comments are based in part on an actuarial analysis by AIS Risk Consultants.

“California cannot afford to have more uninsured and underinsured residents,” said Sondra Roberto, staff attorney for Consumers Union. “Blue Shield’s rate hike will force more than 30,000 Californians to drop their coverage. Many Blue Shield customers will not be able to find insurance elsewhere or will be forced to settle for high deductible health plans.”

In its comments to the DMHC, Consumers Union noted that Blue Shield’s rate filing appears to inflate its costs to justify this latest rate hike. Blue Shield projects that it will require premiums that are 96.3 percent higher than the actual historical claims costs for the plans. The insurer also projects an increase in administrative costs of 30.8 percent above the administrative costs included in its January 2011 pricing, with no explanation for the increase in its filing.

The nonprofit Blue Shield made news last year by pledging to cap its net income at 2 percent. This has resulted in the insurer issuing $475 million in premium credits based on revenue collected in 2010 and 2011. But these credits won’t go to customers who end up dropping their coverage as result of the premium hike.

“These credits are a step in the right direction for consumers, but offer no relief to consumers who will be forced drop their coverage because of this latest rate hike,” said Roberto. “Instead of inflating its costs on the front end and issuing credits at the end of the year, Blue Shield should base its rates on more reasonable cost projections.”

(c) 2012 Targeted News Service

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The U.S. Labor Department has tentatively approved Google Inc. to fund several employee benefit risks through its Hawaii-based captive insurance company.

Google filed its application to make the move in November. A department spokesman said the application has been approved, pending a more detailed plan for how the benefit risks will be funded.

The application, which was filed by George O’Donnell, senior vice president at Aon Hewitt, sought an exemption to the Employee Retirement Income Security Act and the IRS code that would allow Imi Assurance Inc. to engage in transactions related to the captive’s reinsurance of life, long-term disability and other benefits written by Prudential Insurance Co. of America. continue

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MetLife, Inc. (NYSE: MET) announced that it has, through a subsidiary, purchased EnV, a luxury multifamily property located in Chicago’sRiver North neighborhood. The company purchased the property from LYND Development Partners, the original builder of the tower.

“EnV is an excellent fit for MetLife’s real estate equity strategy of acquiring core properties in top-tier markets,” said Robert Merck, senior managing director and head of real estate investments for MetLife. “We manage each of our investments for the long-term, and we are pleased to add this best in class property to our portfolio.”

Lynd Development Partners, a subsidiary of LYND, which is a national real estate investment and management company based in San Antonio, Texas, launched the development of EnV in 2008.

“Even though we were in the midst of a tough recession, our research told us Chicago was underserved with a luxury rental product,” said A. David Lynd, president and chief operating officer of parent company LYND. When EnV was delivered to the market last summer, it commanded the highest rental rates in the city. A year and a half later, rental rates have continued to rise.

EnV was one of the first LEED-certified rental properties built in Chicago. The 249-unit, 29-story tower offers studio, one-and-two bedroom and penthouse apartments and also has 27,000 square feet of retail and restaurant space on the first three floors. The development is conveniently located directly across the street from the Merchandise Mart and adjacent to an “El” subway station. This past fall, EnV was named 2011 “High Rise of the Year” by Multifamily Executive.

Apartment features include bamboo floors, stainless steel appliances, built-in wine racks, all glass balconies and floor to ceiling windows throughout. Community features include full-service concierge services, a media room, juice and coffee bar and wireless Internet throughout the entire building. EnV also provides a special technology package called “The EnVironment” that allows residents to use smart phones for such activities as scheduling private training sessions, paying rent or submitting a work order. The rooftop has a pool terrace with chaise lounges, a 24-hour fitness center overlooking the city skyline and a catering kitchen.

With the success of EnV, LYND is currently weighing new multifamily development opportunities.

“There are a lot of good opportunities in markets where land and construction pricing is well below the peak and where yields are as attractive as we’ve seen for urban infill,” said LYND CEO and Chief Investment Officer Michael J. Lynd, Jr. “Rental demand in the U.S. overall is very strong, but we continue to be highly selective when choosing markets and sites.”

CBRE’sChicago office brokered the sale on behalf of the seller.

MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers in over 50 countries. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East.

Based in San Antonio, Texas, with corporate offices in Miami and Denver, LYND is a family-owned, national real estate company that develops, manages, finances and invests in multifamily, hospitality and commercial properties. With more than 30,000 residential units under management in 13 states, LYND is listed in the Multi Housing Council’s list of the “Top 50 Apartment Managers” in the United States.

(c) 2012 Telecommunications Weekly via VerticalNews.com

Property/casualty financial impairments continued their upward trend, increasing to 28 in 2011 from 21 in 2010, according to a newly released A.M. Best Special Report, Property/Casualty and Life/Health Impairment Review featured in this week’s BestWeek U.S./Canada.

The impairments of the past two years reflect the troubled U.S. economy and, in particular, the troubled real estate market, the report said. Similarly, the deteriorating workers’ compensation line of business has contributed substantially to that stressed market.

Overall, P/C financial impairments have been trending steadily upward since 2007: before the financial crisis. The 2011 P/C impairment results also represent an above-average financial impairment frequency for the industry. In contrast, only two life/health companies failed in 2011, down from seven in 2010. continue

Confidence, satisfaction among younger workers and those with defined benefit pension plans rebounded sharply in past two years

U.S. employees’ confidence in their ability to retire comfortably continued to rebound from post-recession lows last year. However, despite growing satisfaction with their financial situation and fewer employees reporting significant declines in retirement savings, many employees remain concerned and are taking steps to get their financial houses in order, according to a new survey by global professional services company Towers Watson (NYSE, NASDAQ: TW).

The Towers Watson survey found that the percentage of workers who said they were very or somewhat confident about having enough resources to live comfortably 15 years into retirement increased from 62% in 2010 to 68% last year. Workers, however, are less confident about living comfortably throughout retirement. Less than half (47%) of respondents said they were very or somewhat confident they will have enough resources to last 25 years into retirement. This compares with 40% who said there were very or somewhat confident in 2010. continue

Wisconsin will turn down $37 million from the federal government that had been awarded to help implement health care exchanges under President Barack Obama’s health care reform law, Gov. Scott Walker said Wednesday.

Walker announced in December that Wisconsin would not pursue implementing the exchange until the U.S. Supreme Court rules on the constitutionality of the law.

But he did not say whether the state would take the money. On Wednesday Walker said he was notifying the federal government that Wisconsin was turning down the Early Innovator Grant, saying it didn’t make sense to commit to reforms that could have a devastating economic impact.

“Stopping the encroachment of ObamaCare in our state, which has the potential to have a devastating impact on Wisconsin’s economy, is a top priority. Wisconsin has been a leader and innovator in health care reform for two decades, and we have achieved a high level of health insuranEce coverage without federal mandates,” Walker said in a statement.

The American Cancer Society called the Republican governor’s action a move backward.

“A robust, consumer-friendly health exchange designed specifically for Wisconsin would greatly expand access to care to those who need it most, while preserving what already works. It’s unfortunate the (Walker) administration is deciding to ignore this reality,” said Allison Miller, Wisconsin government relations director for the American Cancer Society.

The exchanges are designed to help consumers and small businesses compare health plans and increase competition by requiring insurers to offer more plans and provide more information.

While Wisconsin has been a leader in providing access to affordable quality health care to as many people as possible, “too many people in our state still find themselves unable to attain coverage, especially those touched by cancer,” Miller said in a news release.

State Rep. Sandy Pasch, D-Whitefish Bay, accused Walker of playing politics “with the health of our communities,”

“This brazen attempt to score short-sighted political points with extreme partisan interests by playing chicken with federal law will take Wisconsin’s health care decisions out of our hands and give them to the federal government. It is penny-wise, pound-foolish, and most certainly presents a missed opportunity for Wisconsin to control its own destiny in designing a quality, consumer-friendly exchange,” Pasch said in a statement.

 Robert Kraig, executive director of Citizen Action of Wisconsin, said Walker’s decision was a mistake because the exchanges could have provided consumers with more options for their health care. Kraig told the Milwaukee Journal Sentinel that he believes the state had spent about $1 million of the federal money. He said he was unsure if the state would need to repay that money if it is not moving forward with the exchange.

While Democrats say it’s important to prepare for the new federal health care law, Republicans say it could be struck down. The U.S. Supreme Court has scheduled several days of oral arguments for the end of March to consider whether the law is constitutional.

(c) 2012 The Associated Press. All rights reserved.

The state of Maryland has received a $28.3 million performance bonus for its efforts in enrolling children in federal health programs.

The money was given to the Department of Health and Mental Hygiene by the U.S. Centers for Medicare and Medicaid Services for fiscal year 2011.

The state has expanded coverage to more than 300,000 people since 2007 and almost half were children. continue

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As in other Republican-controlled states, Tennessee’s top officials are in a needless fret over whether to initiate planning for a state insurance exchange, the entities that states must have in place beginning in January 2014 to help uninsured citizens buy competitively priced, reasonably comprehensive health insurance.

Senate Speaker Ron Ramsey says he fears being seen as supporting “Obamacare” if he moves legislation to establish an exchange. Gov. Bill Haslam says he opposes the requirement for states to establish an exchange to promote transparent insurance competition. But he also fears losing millions in federal grants to help create an exchange, and possibly state control of the exchange, if the state doesn’t move forward and defaults to a federally established exchange.

Given the huge number of adult Tennesseans who stand to benefit greatly from the insurance reform, the heartless irony of their partisan remarks, and their misplaced fear of health care reform, is reprehensible, to say the least. continue