TexasSure, the vehicle insurance verification database designed to reduce the number of uninsured motorists, is now available to law enforcement statewide.
TexasSure is a secure database that matches the records of registered passenger vehicles with personal auto insurance policy information submitted by Texas insurance companies. The project was mandated by the Texas Legislature and is a collaborative effort of the Texas Department of Insurance (TDI), the Texas Department of Transportation (TxDOT), the Texas Department of Public Safety (DPS) and the Texas Department of Information Resources.
The statewide rollout follows a successful field test program by the DPS in the Austin area. TxDOT made the database available to tax assessor-collectors statewide in June.
"After a vehicle is pulled over, the TexasSure database is a fantastic tool that helps law enforcement identify those who are driving without insurance-or with an expired or phony insurance document," said DPS Lt. Louis Sanchez.
Source
Wednesday, November 26, 2008
Wednesday, November 19, 2008
Some child booster seats considered dangerous in auto crash
The Insurance Institute for Highway Safety on Wednesday named several child booster seats -- currently available on the U.S. market -- as potentially dangerous for young children in the event of a car crash.
In its first-ever review of child booster seats, the agency tested nearly 50 different child booster seats to see their effectiveness in protecting children in crashes.
The booster seats were placed inside late model vehicles, as instructed by the manufacturers, and then crash-tested to see the potential impact on the child dummies.
Source
In its first-ever review of child booster seats, the agency tested nearly 50 different child booster seats to see their effectiveness in protecting children in crashes.
The booster seats were placed inside late model vehicles, as instructed by the manufacturers, and then crash-tested to see the potential impact on the child dummies.
Source
Wednesday, November 12, 2008
Car insurance rates on the rise
The price of everything is going up these days. Now you can add one more thing to the list, car insurance.
Crumpled metal and shattered glass often the result of accidents we see on the roadways every day. We are all required to have insurance in Michigan to cover the cost, but the experts says rates are going up.
Bob Pierce, MI assoc. of Insurance Agents: "Everything is interrelated in today's economy, when prices go up in one arena they impact another"
Pierce says it's hard to say exactly how much prices are going up because there are so many different factors in insurance rates but he says the reason for the increase is simple.
Source
Crumpled metal and shattered glass often the result of accidents we see on the roadways every day. We are all required to have insurance in Michigan to cover the cost, but the experts says rates are going up.
Bob Pierce, MI assoc. of Insurance Agents: "Everything is interrelated in today's economy, when prices go up in one arena they impact another"
Pierce says it's hard to say exactly how much prices are going up because there are so many different factors in insurance rates but he says the reason for the increase is simple.
Source
Wednesday, November 5, 2008
Boston's 'Biggest Loser' Indicted in Insurance Fraud Case
A Suffolk County grand jury returned indictments against a Boston man in connection with allegedly attempting to defraud insurance companies by reinsuring expensive jewelry that had allegedly been stolen, and for allegedly defrauding his auto insurance company by presenting a false registration address.
Attorney General Martha Coakley's office said that David Fioravanti has been charged with motor vehicle insurance fraud, insurance fraud, larceny over $250, attempted larceny over $250, and making a false statement on a motor vehicle registration.
Fioravanti won $100,000 onf NBC's "The Biggest Loser" show in in 2004. He is due to be arraigned in Suffolk Superior Court Nov. 4.
During the course of the investigation, investigators said they discovered that Fioravanti also had motor vehicle insurance policies with Arbella Mutual Insurance Co. All of the auto insurance policies issued to Fioravanti listed his mother's address in Marshfield as the address where his car is registered. However, authorities learned that Fioravanti actually lives in Boston and they maintain that he fraudulently registered and insured his automobiles at the Marshfield address. Authorities allege Fioravanti did this in order to pay lower auto insurance premiums.
Source
Attorney General Martha Coakley's office said that David Fioravanti has been charged with motor vehicle insurance fraud, insurance fraud, larceny over $250, attempted larceny over $250, and making a false statement on a motor vehicle registration.
Fioravanti won $100,000 onf NBC's "The Biggest Loser" show in in 2004. He is due to be arraigned in Suffolk Superior Court Nov. 4.
During the course of the investigation, investigators said they discovered that Fioravanti also had motor vehicle insurance policies with Arbella Mutual Insurance Co. All of the auto insurance policies issued to Fioravanti listed his mother's address in Marshfield as the address where his car is registered. However, authorities learned that Fioravanti actually lives in Boston and they maintain that he fraudulently registered and insured his automobiles at the Marshfield address. Authorities allege Fioravanti did this in order to pay lower auto insurance premiums.
Source
Wednesday, October 29, 2008
Confie Seguros acquires auto insurance brokerage firm
Confie Seguros believes that this acquisition broadens its presence throughout California and places it on track to become the leading national insurance distribution company primarily focused on the needs of Hispanic consumers.
With the acquisition of West Coast, Confie Seguros said that it now has an annual run-rate of $75 million in revenues, well over 300,000 customers, $250 million in annual written premiums, and over 80 retail brokerage stores throughout California.
Mordy Rothberg, president of Confie Seguros, said: "We expect to integrate West Coast into our operations quickly so we can leverage our existing infrastructure to introduce complementary insurance products - such as life and homeowner's insurance - to serve all of our consumers' needs."
Source
With the acquisition of West Coast, Confie Seguros said that it now has an annual run-rate of $75 million in revenues, well over 300,000 customers, $250 million in annual written premiums, and over 80 retail brokerage stores throughout California.
Mordy Rothberg, president of Confie Seguros, said: "We expect to integrate West Coast into our operations quickly so we can leverage our existing infrastructure to introduce complementary insurance products - such as life and homeowner's insurance - to serve all of our consumers' needs."
Source
Wednesday, October 22, 2008
Do away with work-based insurance
THE editorial criticizing John McCain's healthcare plan for moving the country away from work-based insurance is misplaced. There is little logic to basing the cost of medical insurance premiums on employment status. Workplace insurance arose during World War II because wage controls allowed employers to compete for workers on the basis of benefits only.
Basing premiums on group affiliation makes sense only when there is a statistical relation between the composition of the group and the financial risk to the insurer. For example, older people pay more for life insurance because their heirs are more likely to make a claim in the coming year, and novice drivers pay more for auto insurance because they have more accidents. Unless you work in a hazardous environment, the number or average age of your co-workers has little bearing on your likely healthcare requirements.
Administrative cost advantages associated with group affiliation could be achieved by establishing healthcare purchasing groups independent of employment, benefiting the unemployed and self-employed as well as the company employee. The time for work-based insurance has long since come and gone.
Source
Basing premiums on group affiliation makes sense only when there is a statistical relation between the composition of the group and the financial risk to the insurer. For example, older people pay more for life insurance because their heirs are more likely to make a claim in the coming year, and novice drivers pay more for auto insurance because they have more accidents. Unless you work in a hazardous environment, the number or average age of your co-workers has little bearing on your likely healthcare requirements.
Administrative cost advantages associated with group affiliation could be achieved by establishing healthcare purchasing groups independent of employment, benefiting the unemployed and self-employed as well as the company employee. The time for work-based insurance has long since come and gone.
Source
Wednesday, October 15, 2008
Drivers Could Get Discounted Insurance by Gaming
Insurance company Allstate is exploring a new program that would reward the players of specialized video games with lower auto insurance rates.
The company will soon begin testing the effectiveness of the games in accident prevention through a study of 100,000 Pennsylvania drivers between the ages of 50 and 75. The likelihood of an auto accident is said to climb when drivers reach their mid-60s.
Developed by Posit Science, the computer games are "designed to reverse age-related cognitive decline and improve visual alertness," according to the report. In-game activities go beyond driving activities, with one, Jewel Diver, requiring players to follow the movement of a jewel and deduce where it is hidden after fish fill the screen.
With the help of Posit, Allstate will track the total amount of hours played and then compare the accident rates of gamers to non-gamers. Allstate suggests drivers play for at least 10 hours, and will decide next year if the program goes nationwide.
Source
The company will soon begin testing the effectiveness of the games in accident prevention through a study of 100,000 Pennsylvania drivers between the ages of 50 and 75. The likelihood of an auto accident is said to climb when drivers reach their mid-60s.
Developed by Posit Science, the computer games are "designed to reverse age-related cognitive decline and improve visual alertness," according to the report. In-game activities go beyond driving activities, with one, Jewel Diver, requiring players to follow the movement of a jewel and deduce where it is hidden after fish fill the screen.
With the help of Posit, Allstate will track the total amount of hours played and then compare the accident rates of gamers to non-gamers. Allstate suggests drivers play for at least 10 hours, and will decide next year if the program goes nationwide.
Source
Wednesday, October 8, 2008
Insurance chief cuts car rates
State insurance Commissioner Jim Long is leaving office with a bang, ordering a whopping 16.1 percent decrease in auto insurance premiums, The News & Observer's David Ranii reported .
Insurance companies in the state have asked for a 12.9 percent increase -- the largest jump they have sought since 1994. But Long ruled that amount wasn't justified by the data they submitted.
The order by Long, who isn't seeking re-election after 24 years in office, came after a monthlong hearing in which his staff squared off against the N.C. Rate Bureau, which represents insurers.
The Rate Bureau has not decided whether to appeal the order to the courts.
If Long's order stands, the Insurance Department estimates the savings for the state's motorists will exceed $1 billion.
Source
Insurance companies in the state have asked for a 12.9 percent increase -- the largest jump they have sought since 1994. But Long ruled that amount wasn't justified by the data they submitted.
The order by Long, who isn't seeking re-election after 24 years in office, came after a monthlong hearing in which his staff squared off against the N.C. Rate Bureau, which represents insurers.
The Rate Bureau has not decided whether to appeal the order to the courts.
If Long's order stands, the Insurance Department estimates the savings for the state's motorists will exceed $1 billion.
Source
Wednesday, October 1, 2008
So Many Potential Customers, So Little Follow-Up
For all the hundreds of millions of dollars companies spend on advertising their car insurance policies, they're not getting a very high conversion rate.
According to a new study from J.D. Power and Associates, auto insurance companies on average are successfully signing only 2% of all shoppers. For the most part, the companies lose prospective customers before even offering them a quote, says Jeremy Bowler, senior director of the insurance practice.
"It's a good thing the industry has a phenomenal policy retention rate," Bowler says.
The reasons that many people don't request a quote are varied, Bowler says. Some consumers are put off by a company's lack of bundling options (i.e., the ability to have home and auto insurance through one company), while others have received negative word of mouth about a company from friends or family. Or the process involved to get a quote may be too cumbersome. "Some companies are rooted to traditional sales processes," Bowler says. "That's sort of an inhibitor; you're making it hard to get a quote."
According to the survey of nearly 8,500 people, 36% of auto insurance customers have actively shopped for a new insurer in the past year. When asked about various companies, 38% of those shoppers did not recognize many of the country's 26 largest auto insurers, and an additional 39% don't care about the brands.
"What's left is a group of people who have strong feelings about certain companies, and some of those are negative," Bowler says. After eliminating the 6% of shoppers who said they would avoid certain insurance companies, the pool of prospective customers is down to 18% of auto insurance shoppers, he says.
Of those 18% who might be willing to switch, only 10% ask for a quote (and only half of them make the switch), Bowler says. With many insurance companies gathering most of their personal data through the quote process, insurance companies are leaving a lot of leads that are not followed up on, Bowler says. "[Insurance companies] spend all this money advertising to get people to come to the door, and they only follow up if the customer has filled out an application," he says. "Insurance companies have no way to measure how many more prospects escaped earlier in the shopping process--whether they were driven away by a cumbersome quote process, a non-responsive agency or misconceptions about price or service quality."
Source
According to a new study from J.D. Power and Associates, auto insurance companies on average are successfully signing only 2% of all shoppers. For the most part, the companies lose prospective customers before even offering them a quote, says Jeremy Bowler, senior director of the insurance practice.
"It's a good thing the industry has a phenomenal policy retention rate," Bowler says.
The reasons that many people don't request a quote are varied, Bowler says. Some consumers are put off by a company's lack of bundling options (i.e., the ability to have home and auto insurance through one company), while others have received negative word of mouth about a company from friends or family. Or the process involved to get a quote may be too cumbersome. "Some companies are rooted to traditional sales processes," Bowler says. "That's sort of an inhibitor; you're making it hard to get a quote."
According to the survey of nearly 8,500 people, 36% of auto insurance customers have actively shopped for a new insurer in the past year. When asked about various companies, 38% of those shoppers did not recognize many of the country's 26 largest auto insurers, and an additional 39% don't care about the brands.
"What's left is a group of people who have strong feelings about certain companies, and some of those are negative," Bowler says. After eliminating the 6% of shoppers who said they would avoid certain insurance companies, the pool of prospective customers is down to 18% of auto insurance shoppers, he says.
Of those 18% who might be willing to switch, only 10% ask for a quote (and only half of them make the switch), Bowler says. With many insurance companies gathering most of their personal data through the quote process, insurance companies are leaving a lot of leads that are not followed up on, Bowler says. "[Insurance companies] spend all this money advertising to get people to come to the door, and they only follow up if the customer has filled out an application," he says. "Insurance companies have no way to measure how many more prospects escaped earlier in the shopping process--whether they were driven away by a cumbersome quote process, a non-responsive agency or misconceptions about price or service quality."
Source
Thursday, September 25, 2008
AIG Fate Has Big Impact on This Side of the Hudson
Beleaguered American International Group Inc., the largest U.S. insurer, is also a big player in New Jersey.
The New York-based financial services giant is the top underwriter of commercial lines in New Jersey and ranks eighth in auto insurance based on premium dollars.
"If AIG goes under, that's going to send ripples throughout the New Jersey and New York region," said James Hughes, dean of Rutgers University's Edward J. Bloustein School of Planning and Public Policy.
The federal government announced an $85 billion bailout of AIG. It is one of the world's biggest financial services players, and a collapse would have had consequences for financial firms around the globe. AIG insures some of the largest assets in the world and does business in more than 100 countries.
More than a dozen AIG subsidiaries are licensed to operate in New Jersey, but the only one with headquarters in this state is auto insurer American International Insurance of New Jersey. By AIG's standards it is a comparatively small operation, covering 76,000 vehicles and generating $80 million in annual premiums.
The auto insurance unit is "well-capitalized," said Ed Rogan, a spokesman for the Department of Banking and Insurance, and AIG's holding company has not requested permission to access that capital. "We would not approve such a thing if in anyway it would impact consumers," Rogan said.
An AIG spokesman declined to comment.
An organization of state insurance regulators issued a statement to address AIG policyholders' concerns.
"If you have a policy with an AIG insurance company, they are solvent and have the capability to pay claims," Sandy Praeger, president of the National Association of Insurance Commissioners, said in the statement. "Our job is to ensure that they continue to have the ability to pay."
Insurance regulators in New York and Pennsylvania are working with the holding company to give it access to capital in subsidiaries domiciled in those states.
"The holding company is at issue right now," said Roger Schmelzer, president of the National Conference of Insurance Guaranty Funds in Indianapolis. "The holding company could go bankrupt, and for policyholders it would be business as usual."
AIG shares plunged 21 percent, to $3.75 a share.
Other insurers could benefit from AIG's woes. Warren-based Chubb Corp. rose $6.53, or 14 percent, to $55.05, and Newark's Prudential Financial Inc. climbed $6.64, or 9.2 percent, to $79.18.
Source
The New York-based financial services giant is the top underwriter of commercial lines in New Jersey and ranks eighth in auto insurance based on premium dollars.
"If AIG goes under, that's going to send ripples throughout the New Jersey and New York region," said James Hughes, dean of Rutgers University's Edward J. Bloustein School of Planning and Public Policy.
The federal government announced an $85 billion bailout of AIG. It is one of the world's biggest financial services players, and a collapse would have had consequences for financial firms around the globe. AIG insures some of the largest assets in the world and does business in more than 100 countries.
More than a dozen AIG subsidiaries are licensed to operate in New Jersey, but the only one with headquarters in this state is auto insurer American International Insurance of New Jersey. By AIG's standards it is a comparatively small operation, covering 76,000 vehicles and generating $80 million in annual premiums.
The auto insurance unit is "well-capitalized," said Ed Rogan, a spokesman for the Department of Banking and Insurance, and AIG's holding company has not requested permission to access that capital. "We would not approve such a thing if in anyway it would impact consumers," Rogan said.
An AIG spokesman declined to comment.
An organization of state insurance regulators issued a statement to address AIG policyholders' concerns.
"If you have a policy with an AIG insurance company, they are solvent and have the capability to pay claims," Sandy Praeger, president of the National Association of Insurance Commissioners, said in the statement. "Our job is to ensure that they continue to have the ability to pay."
Insurance regulators in New York and Pennsylvania are working with the holding company to give it access to capital in subsidiaries domiciled in those states.
"The holding company is at issue right now," said Roger Schmelzer, president of the National Conference of Insurance Guaranty Funds in Indianapolis. "The holding company could go bankrupt, and for policyholders it would be business as usual."
AIG shares plunged 21 percent, to $3.75 a share.
Other insurers could benefit from AIG's woes. Warren-based Chubb Corp. rose $6.53, or 14 percent, to $55.05, and Newark's Prudential Financial Inc. climbed $6.64, or 9.2 percent, to $79.18.
Source
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