Current articles drawn from a variety of insurance website and periodicals.
Sarbanes-Oxley
"SOX Act Losing Luster AS costs Spark Unrest"– Best Week – March 20, 2006 - Signs indicate support for the Sarbanes-Oxley Act is beginning to fracture, even as state insurance regulators and industry groups move closer to consensus on tougher internal standards for annual insurer audits.
"A Pox on SOX?" – Best Week – March 27, 2006 -As Sarbanes-Oxley deflates in D.C., the NAIC forges on.
“Tech Helps Insurers Tame SOX Beast”, National Underwriter, February 27, 2006 - In 2005, the vast majority of U.S. insurers were privately held and thus not subject to the requirements mandated by the Sarbanes-Oxley Act of 2002. However, private insurers must follow financial reporting rules set forth by the National Association of Insurance Commissioners.
“Nonpublic Firms Can Benefit From SOX”, National Underwriter, January 23, 2005 - While key portions of the Sarbanes-Oxley Act apply only to public companies, nonpublic companies adopting SOX-related practices also are benefiting from enhanced corporate compliance strategies. Rick managers and other senior executives can achieve reduced litigation exposure, fraud deterrence, more reliable financial data and improved corporate decision-making with such standards in place .
“Latest SOX Proposal Still Not Suited to Mutuals”, National Underwriter, January 16, 2006 - NAMIC's vigorous and principled opposition to the National Association of Insurance Commissioner's effort to extend Sarbanes-Oxley Act Section 404 content on internal control to nonpublic insurers has worked. Under a new proposal, most will be spared increased audit burdens while first-year compliance costs for nonpublic companies that are effected will be slashed by an estimated $220 million.
“The New Scrutiny”, Best Review , January 2006 - Enron. Worldcom. Global Crossing. What were once the names of profitable companies have become synonyms for accounting fraud. Lawmakers and regulators seeking to prevent other Enrons from happening have stepped up accounting and auditing standards for public companies under the Sarbanes-Oxley Act.
Technology
“Calling To The Outside”, Best Review , January 2006 - Insurers are deciding they don't have to do it all themselves. Some information technology projects require highly specialized skills, some can be executed more efficiently somewhere else, and sometimes outside advice can mean the difference between failure and success,
“Shifting IT Success Factors”, Best Review , January 2006 - Technology organizations approaches are becoming more complex and varied as they address evolving needs and use expanding alternatives. The Chief Executive Officer and Chief Information Officer are restructuring their technology organizations to better meet their current information technology challenges and future development needs, and to take full advantage of the variety of talent solutions that now are available.
Merger and Acquisition
Transaction Liability Insurance Can Move Stuck Deals Toward Closing – National Underwriter, March 13, 2006 - Whether they're considering their first acquisition or launching full-fledged shopping spree, many companies are becoming buyers, and risk managers and other insurance professionals are finding themselves being pulled into merger and acquisition process.
“Banks, Agents Seek Perfect Fit”, National Underwriter, February 6, 2006 - When the fit is right, selling your agency to a bank can be the perfect option for the agent who wants access to capital and new customers to expand the business dramatically. It also makes sense for the agent who's looking toward retirement.
Banks Keep Gobbling Up P-C Agencies”, National Underwriter, February 6, 2006 - A decade ago, the bank-insurance debate was in full swing, with the looming question: “How will banks impact the insurance distribution system?” Today, much of that debate has been settled.
Other Insurance News of Interest
“Whats In Store For Health Insurance?”, Advisor Today, March 2006 - This article outlines the many proposals and changes that Congress is reviewing in its 2006 legislative year and their impact to the healthcare industry and the consumer of health care coverage.
A Federal Role In Insurance Regulation”, Advisor Today, February 2006 - After more than a century of state insurance regulation, proposals that would add a federal role to the system are gaining momentum in Washington, D. C. These proposals consider whether states are doing a good enough job of regulating our industry in areas like agent licensing and speed-to-market for insurance products. But while many agree that insurance regulation needs improvement, there's no consensus on what a reformed system should look like.
“Talks Progress On Risk Retention Group Accounting” – National Underwriter – March 17, 2006 - Captive domicile officials appear to be reaching a meeting of the minds with state regulators over what sort of accounting format risk retention groups should use to report their financial condition.
Taming the Cells – Best Review – March 2006 - Spreadsheet nightmares come in many forms: After expending hundreds of hours reviewing spreadsheets, an error in one cell is found, or the error is missed and one cell rolls up into a costly problem for your company, or a host of other cell miseries occur.
Mutual Reporting Model Clears Hurdle – National Underwriter, March 13, 2006 - After two years of spirited debate, the National Association of Insurance Commissioners has given its first green light to a controversial set of new financial reporting requirements for nonpublic insurers patterned after the U.S. Sarbanes-Oxley Act.
