Direct Line Insurance to fire 2,000 employees because of sluggish insurance market

Direct Line Insurance to fire 2,000 employees because of sluggish insurance market

Direct Line Insurance

Reuters reports that in Britain Direct Line Insurance Group Plc (DLGD.L) a motor insurer, is planning to axe about 2,000 positions, joining fellow insurers looking to trim costs and boost profits in a sluggish and competitive market.

The company will said that the move would allow it to save a further 130 million pounds ($200 million) annually by 2014, targeting a cost-base of about 1 billion pounds in 2014.

Direct Line Insurance is Britain's biggest car insurer, they have about 15,000 employees, and has been cutting costs and avoiding high-risk drivers since 2010 to protect itself from stiff competition, and new regulation in the British motor insurance market.

Several insurers, including Aviva Plc (AV.L), AXA (AXAF.PA) and Standard Life (SL.L), have cut their workforce in recent months in an effort to reduce costs and prepare for new regulations that include higher capital requirements.

The company said the job cuts announced on Wednesday would include head office and support positions.

Insurance Claims for flood damage in Germany may reach $8 billion

Insurance Claims for flood damage in Germany may reach $8 billion

flood damage Germany insurance

The claims for flood damage in Germany may reach $8 billion or €6 billion the catastrophe modeling firm AIR Worldwide said. Germany suffered the worst flooding in a decade due to heavy heavy rainfall in late May and early June that drenched Germany, Austria and the Czech Republic. Other countries affected are Switzerland, Hungary, Slovakia and Poland. 

"Floodwaters hit Germany hardest," director of Air Worldwide in Germany Yorn Tatge said. "While the worst damage has already occurred, this flood event is ongoing." They also noted that the overall, non-insured damage to the economy would be much higher.

Germany on Wednesday agreed the financing of an 8-billion-euro fund to help repair damage, with both the federal government and states footing the bill.

Catastrophe modeling firms use computers to cross-reference data on insured values with geographical, construction and meteorological information.

This is the reason why flood insurance is really important. In the US, only 20% of American homes at risk for floods are covered by flood insurance. Most private insurers do not insure against the peril of flood due to the prevalence of adverse selection, which is the purchase of insurance by persons most affected by the specific peril of flood.



In traditional insurance, insurers use the economic law of large numbers to charge a relatively small fee to large numbers of people in order to pay the claims of the small numbers of claimants who have suffered a loss. Unfortunately, in flood insurance, the numbers of claimants is larger than the available number of persons interested in protecting their property from the peril, which means that most private insurers view the probability of generating a profit from providing flood insurance as being remote.

In certain flood-prone areas, the federal government requires flood insurance to secure mortgage loans backed by federal agencies such as the FHA and VA.

If you live in low lying areas, make sure that your home insurance have Flood Insurance Policy. Flood damage can happen to anyone.

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Obamacare unaffordable for low-wage workers

Obamacare unaffordable for low-wage workers

Obamacare raise premiums

The Affordable Care Act or Obamacare health care law may be unaffordable for many low-wage workers, which includes big chain restaurants, hotels, retail stores, and other businesses.

Yes, the law requires medium-sized and large employers to offer affordable coverage or they will be penalized. However, some policy experts say businesses can get off the hook while the employees could still face a federal requirement to get health insurance.

Still many are expected to remain uninsured and would rather risk being penalized because the law states that  workers with an offer of "affordable" workplace coverage are not entitled to new tax credits for private insurance, which could be a better deal for those on the lower income middle class.

Ron Pollack, president of Families USA (liberal advocacy group) said: "Some people may not gain the benefit of affordable employer coverage. It is an imperfection in the new law. The new law is a big step in the right direction, but it is not perfect, and it will require future improvements."

Andy Stern of the Service Employees International Union said: "The provision is an avoidance opportunity for big businesses."

The law requires businesses with 50 or more full-time workers to offer coverage that meets certain basic standards and costs no more than 9.5 percent of an employee's income. Failure to do so means fines for the employer.

For an employee making $21,000 a year, 9.5 percent of their income could mean premiums as high as $1,995 and the insurance would still be considered affordable.

Even a premium of $1,000 close to the current average for employee-only coverage could be unaffordable for someone stretching earnings in the low $20,000's.

With such a small income, "there is just not any left over for health insurance," said Shannon Demaree, head of actuarial services for the Lockton Benefit Group. "What the government is requiring employers to do isn't really something their low-paid employees want."

Based in Kansas City, Mo., Lockton is an insurance broker and benefits consultant that caters to many medium-sized businesses affected by the health care law. Actuaries like Demaree specialize in cost estimates.
Another thing to keep in mind: premiums wouldn't be the only expense for employees. For a basic plan, they could also face an annual deductible amounting to $3,000 or so, before insurance starts paying.

"If you make $20,000, are you really going to buy that?" asked Tracy Watts, health care reform leader at Mercer, a major benefits consulting firm.

And low-wage workers making more than about $15,900 won't be eligible for the law's Medicaid expansion, shutting down another possibility for getting covered.

It's not exactly the picture the administration has painted. The president portrays his health care law as economic relief for struggling workers.

"Let's make sure that everybody who is out there working hard and doing the right thing, that they're not going to go bankrupt because they get sick, that they're going to have health care they can count on," Obama said in a Chicago appearance last summer during the presidential campaign. "And we got that done."

Read more: http://news.yahoo.com/coverage-may-unaffordable-low-wage-workers-151922273.html

Dangers Texting While Driving

Dangers Texting While Driving

Dangers Texting While Driving

Courtesy of: OnlineSchools.com

Texting-while-driving can result to deadly consequences. Before an accident, drivers usually spend five seconds looking at their phone, which is enough time to cover more than the length of a football field going normal highway speeds, according to the Auto-Owners Insurance release.

According to a survey conducted by End Distracted Driving, 52 percent of drivers admit that they still text and drive today. This is true even though 93 percent of those same drivers agreed that texting and driving is dangerous.

The distraction involved in completing one text while driving is the equivalent of consuming four alcoholic beverages while driving.

There is a significant increase rate of accidents, injuries and deaths that have occurred because of texting and driving. Check out the infographic above, eliminating this practice will save lives and promote safe driving practice.

*Site to visit: Worldwide Insurance Database

Rate Shock in Insurance Premiums by 64-146%

Rate Shock in Insurance Premiums by 64-146%

Obamacare raise premiums Rate Shock

A news report warns of a Rate Shock on Insurance Premiums by 64-146% in California. The serious flaw of Obamacare is it has too much regulations and mandates that shoot up the cost of insurance for people who buy it on their own.

The impact of this problem will be felt when the law’s main provisions kick in on January 1, 2014, leading many to worry about health insurance “rate shock.”

However, Peter Lee, executive director of the California exchange claims that there won’t be rate shock in California. But critics and experts are doubful about his claims.

"If you’re a 25 year old male non-smoker, buying insurance for yourself, the cheapest plan on Obamacare’s exchanges is the catastrophic plan, which costs an average of $184 a month. (That’s the median monthly premium across California’s 19 insurance rating regions.)

The next cheapest plan, the “bronze” comprehensive plan, costs $205 a month. But in 2013, on eHealthInsurance.com (NASDAQ:EHTH), the average cost of the five cheapest plans was only $92. In other words, for the average 25-year-old male non-smoking Californian, Obamacare will drive premiums up by between 100 and 123 percent.

Under Obamacare, only people under the age of 30 can participate in the slightly cheaper catastrophic plan. So if you’re 40, your cheapest option is the bronze plan. In California, the median price of a bronze plan for a 40-year-old male non-smoker will be $261. But on eHealthInsurance, the average cost of the five cheapest plans was $121. That is, Obamacare will increase individual-market premiums by an average of 116 percent.

For both 25-year-olds and 40-year-olds, then, Californians under Obamacare who buy insurance for themselves will see their insurance premiums double."

check full story here: http://www.forbes.com/sites/theapothecary/2013/05/30/rate-shock-in-california-obamacare-to-increase-individual-insurance-premiums-by-64-146/

How to pay Health Insurance without bank accounts?

How to pay Health Insurance without bank accounts?

health Health Insurance insurance Obamacare

If you are a person who don't trust banks or don't want to deal with their unreasonable bank charges like overdrafts then you are in trouble, you can't pay your health insurance without a bank account.

Next January federal health law will require Americans to carry health insurance, but most health plans accepts credit cards for first month's premium then pay the succeeding monthly premiums with check or an electronic funds transfer from a checking account. To those who don't have bank accounts this will be a real problem.

I think the government should require the health insurance providers to implement a reasonable payment options for everyone.

You can read more about it here. http://www.npr.org/blogs/health/2013/05/17/184814772/latest-health-hurdle-buying-insurance-without-a-bank-account

Robert Hurdman's Financial Thinking

Robert Hurdman's Financial Thinking

We have found Robert Hurdman's Financial Thinking blog very useful. He talks about finances and savings and he gives valuable advice on money and investments. I personally don't know a lot about investing and the stock market so I'll be sure to bookmark his site so I can learn more. You can check him out at Financial Thinking.

What does Standard Home Insurance cover?

What does Standard Home Insurance cover?

damages home insurance insurance molds Standard Home Insurance

Unplanned home repairs can ruin your budget, especially if it is a major repair. It can break you financially. A standard home insurance policy will not cover mold damage or earthquake damage.

A Standard Home Insurance covers damage and loss of the structure of your home in the event of hail, hurricane, lightening or fire (structural components). Standard Home Insurance policies do not cover mold damage due to neglected maintenance, such as faucet or pipe that are leaking. In case of flood and earthquake, a separate policy is required. The location of the property is taken into account if it is prone to natural disasters. Other detached buildings on your property like garages or gazebo get the typical coverage of 10%.

The Personal Property coverage included in a standard home insurance policy covers your personal items (jewelry, cash, collections, clothing) and household contents (furniture) if they are stolen or destroyed by fire or hurricane. It will only cover to a certain extent like $5,000 for personal belongings. You will need to pay more to get additional coverage.

Automobile insurance policy will cover the loss of your car or damage to it, but will not cover personal belongings that are inside like briefcase, laptop, suitcase, purse, wallet, GPS, iPod, sunglasses etc.

Home insurance covers theft of your personal belongings from a vehicle, even if the crime occurs away from your property. Whether you are a homeowner, condo owner, or tenant, personal items will generally be covered under your property insurance policy.

The personal property that is temporarily away from your home is usually insured for up to 10% of the amount of your personal property insurance or $1,500 or whichever is greater.

Personal liability protects you or your covered family members if you injure another person or cause damage to someone else's property. It's also known as third-party insurance because it protects you if a third party files a claim against you. Personal liability insurance can be purchased as part of a package policy. Pets are also included in this portion of your policy protecting you against bodily harm or property damage that they may cause to others.

Simplified Homeowner Insurance Policies

Simplified Homeowner Insurance Policies

Homeowner Insurance Policies insurance insured

No more gibberish insurance talks and hiding conditions by using terms ordinary people are unfamiliar with, and that are usually in the middle of a thousand-word fine print.

Gov. Chris Christie signed a bill (S-2502) that requires insurance companies to provide a one page summary and description of the terms of policies to homeowners together with the fine print. It should explain what will it cover and will not cover.

This law is designed to avoid the confusion that happened after Hurricane Sandy, were many homeowners discovered the limited coverage of their property insurance, most of them did not include flood insurance.

The law still requires the Department of Banking and Insurance to establish first a timeline for implementing the requirement. They will issue a proposal for public comment before they can finalize it.

Health Insurance Importance

Health Insurance Importance

good health health Health Insurance Importance insurance

Our health is really important, take it for granted to save a few dollars, and the repercussions will hunt you in the future. It will cost you a lot and will surely drill holes in your pocket. Furthermore, if you cannot work due to your health, how will you earn for yourself and your family?

Just like money, we never really have a true idea of its value until we lose it.

Life is unpredictable. That's why health insurance is important, it's designed to protect us in case of emergency. It guarantees medical treatment based on your coverage.

Insurance can be expensive but it's worth it. A report by the New York-based Commonwealth Fund estimated that 84 million adults in the US have inadequate health care coverage. Families are foregoing care because they cannot afford it, even with the implementation of the AffordableCare Act in January 2014. The under-insured and uninsured will just be transferred to an inferior plan with huge out-of-pocket costs.

Investing in insurance now is like investing in your quality of life. Having good health and preventive care plan may help but there's really nothing better than knowing that you and your family are protected.

Obamacare supporters admit insurance premium will rise

Obamacare supporters admit insurance premium will rise

insurance premiums obama Obamacare Obamacare raise premiums

The federal health law that will take effect next year is expected to raise insurance premiums, especially for people who purchase their own insurance, expert said.

The law will mandate that plans increase their minimum benefits, and it will ban insurers from weeding out people already diagnosed with illnesses.

Health and Human Services Secretary Kathleen Sebelius said to reporters that "Some people purchasing new insurance policies for themselves this fall could see premiums rise because of requirements in the health-care law."


Her remarks come weeks before insurers are expected to begin releasing rates for plans that will start on Jan. 1, 2014, when key provisions of the health law kick in.

Some insurers have already begun signaling that they could dramatically increase prices for people buying policies in the individual market to compensate for restrictions on how they treat consumers, as well as new fees and requirements that they provide bigger benefits packages, reported by The Wall Street Journal last week.

The Society of Actuaries also issued a warning that the cost of medical claims in the new individual-insurance market could rise by an average of 32% per person over the first few years the law is in place.

ACE USA Expands Coverage to Address Growing Trend of Hospital and Physician Integration

ACE USA Expands Coverage to Address Growing Trend of Hospital and Physician Integration

ACE USA Expands Coverage to Address Growing Trend of Hospital and Physician Integration

ACE USA Medical Risk Group introduce a wide range of physician professional liability insurance products and coverage solutions in support of hospitals and healthcare facilities for their employed physicians, and their owned or affiliated medical groups. Product offerings include companion primary physician professional liability policies, fronting capabilities for primary physician professional liability policies, reinsurance of physician professional liability policies issued by healthcare facility captives, and uniquely structured integrated hospital and physician insurance program designs that may include separate or shared retentions and policy limits.

The physician professional liability insurance coverages are available for hospitals, healthcare facilities and Accountable Care Organizations (ACO) providing insurance or alternative risk financing solutions to their employed physicians, or owned or affiliated medical groups.

Product Highlights of the companion Primary Physicians Professional Liability policy* include:

• Separate limits of liability each physician and corporate entity
• Defense expense in addition to policy limits
• First dollar coverage (no deductible) or deductible options
• Individual tail coverage or group rolling tail coverage for departed physicians
• Consent to settle provision
• Professional Legal & Audit Defense Coverage
• Full claims capabilities to support companion primary physician primary policies

Benefits of an integrated or coordinated hospital / physician insurance program include:

• Common insurance or reinsurance partner for both the healthcare system and their employed, owned or affiliated physician groups
• Joint or coordinated defense provides greater control and cost containment of joint claims
• Coordinated risk management support services
• Integrating physician insurance into an integrated self-insurance or alternative risk financing mechanism may offer lower cost compared to traditional insurance
• Backed by the ACE Group’s financial strength and excellent reputation

*This coverage is currently not available for stand-alone medical groups that are not owned by or affiliated with an ACE insured hospital or healthcare system.

Baby Stuck in Hospital Because of Insurance Company

Baby Stuck in Hospital Because of Insurance Company

baby Baby Stuck in Hospital Because of Insurance Company insurance milk

A 3-month old baby boy in Nebraska was separated from his parents for 100 days because their insurance company refuses to pay for their baby to be moved.

The baby is in Presbyterian St. Luke’s Hospital in Denver, while his parents live in Lincoln, Nebraska, and have been forced to commute to see their son every other weekend.

Julius James Frack was born on December 30, 2012 weighing one pound, six ounces and was only 12 inches long.

Jennifer and David Frack weren't expecting the baby to arrive soon but had complication with her pregnancy while visiting family in Sydney, Nebraska, after Christmas.

Doctocs in Sydney said that the mom needed needed specialized care and arranged for her to be flown to Presbyterian St. Luke’s Hospital in Denver. Because Julius was so small, he was rushed to the hospital’s NICU.   

The mom healed in a few weeks and was allowed to go home but the baby was too fragile for long drive. Howerver, the parents need to go back to work. And since December, the parents has been spending too much money to drive back and forth from Lincoln to Denver every other weekend.

Fracks asked to have Julius moved since the commute is too much. Doctors told the parents that the baby needs to be transferred by helicopter and doctors at Presbyterian St. Luke’s Hospital helped them fill out paperwork but their insurance company denied the request.

The Fracks’ insurance company, Blue Cross and Blue Shield of Nebraska, released a statement that said, “In general, when our nurses and physician reviewers look at cases such as this, the decision to cover a service is based on whether a ‘medical necessity’ exists,” said Dr. David Filipi, Chief Medical Director, Blue Cross and Blue Shield of Nebrask

source: http://kdvr.com/2013/04/14/parents-separated-from-baby-for-100-days-over-insurance-decision/#ooid=9kOHB5YTqKX8XQn55UgtnqXYpYBIbLXu

Small Businesses would rather pay Penalty than offer Health Insurance

Small Businesses would rather pay Penalty than offer Health Insurance

Obamacare

The Wall Street Journal reports that a number of companies would rather pay government's penalty to break the law and it will be cheaper for them than following it.

Under the Obamacare provision that goes into effect next year, employers with 50 or more full-time workers will be required to provide coverage for employees who work an average of 30 or more hours a week in a given month. An alternative to that mandate is for business owners to pay a $2,000 penalty for each full-time worker over a 30-employee threshold.

Rick Levi owns Consolidated Management based in Des Moines, Iowa that runs cafeterias at schools, offices and jails in 10 states. The law would require him to offer insurance to all of his 102 full-time employees starting in January. Assuming all of them take the coverage, Mr. Levi says the cost of premiums could exceed $500,000 per year if every employee takes the insurance plan. The penalty will cost him around $144,000.

"I've never made a profit in any year of the company that has surpassed that amount," says Mr. Levi, 62 years old. "I don't make enough money."

He says it makes more sense to drop insurance entirely and pay a penalty of about $144,000.

Using Medicaid Dollars for Private Insurance

Using Medicaid Dollars for Private Insurance

Using Medicaid Dollars for Private Insurance

The Obama administration and Republican officials in several states are exploring ways to redirect federal money intended to expand Medicaid, the main public insurance program for the poor, and use it instead to buy private health insurance for Medicaid recipients. The approach could have important benefits for beneficiaries and for the future of health care reform. But the idea also carries big risks. Federal officials will need to enforce strict conditions before agreeing to any redirection of Medicaid dollars that were originally intended to enlarge the Medicaid rolls.

The Supreme Court ruled last year that the states could decide whether they want to expand their Medicaid programs to cover more of the uninsured; they can’t be required to do so, as the health reform law intended.

The law provides hugely attractive financial incentives for states to add more people. The federal government will pay 100 percent of the cost of caring for newly eligible enrollees for the first three years, tapering to 90 percent in later years. Even so, some state officials, mostly Republicans, are proposing that the very generous federal financing for expansion be used instead to pay the premiums of poor people on new electronic health care exchanges, created by the reform law, where people can shop for subsidized private insurance.

Private insurance obtained on the exchanges could help poor beneficiaries in several ways. They would be less vulnerable to disruptions every time their incomes fluctuated above or below the boundary line that determines whether they are poor enough to qualify for Medicaid, where they would see one array of doctors, or slightly better off and eligible for subsidized insurance on the exchanges, where they might see a completely different group of doctors. Providers would be paid the same amount whether treating a Medicaid recipient or a privately insured patient, potentially creating a wider network of doctors for Medicaid patients. And some poor residents of states resistant to expansion, who would otherwise be frozen out by a glitch in the reform law, could gain coverage through the exchanges.

But the main benefit would be political in that it could engage Republicans in the whole health reform effort, make it easier to carry out the law and reduce the appetite among Congressional Republicans to gut the law.

There are at least two big caveats. The switch would be likely to increase costs for the federal government, and ultimately state governments, because private insurance is almost always more costly than Medicaid. That could force a cutback in the number of people covered because the money won’t go as far. There is also a risk that poor people will end up with fewer benefits and higher cost-sharing on the exchanges despite regulations that should prohibit that.

Federal officials must be vigilant in ensuring that recipients on the exchanges receive the same services and same cost-sharing limits that they would under an expanded Medicaid program. State officials who don’t want to play by those rules would be better off using the generous federal dollars as originally intended — to expand their Medicaid programs to cover many more of their uninsured residents.

nytimes.com