Category: Insurance News


downfall_1Due to a budget shortfall, Lexington’s Urban County Government is dropping health insurance coverage for 556 employees of “outside agencies”. These are organizations that are connected with, but not directly run by, city government. In reference to 2008 spending, reducing employees of the 20 organizations from Lexington’s insurance plan would save the city $506,218 a year.

“The satellite agencies had been paying only their premiums,” said Susan Straub, spokeswoman for Mayor Jim Newberry. “… They were not funding the full cost of their health care.” View Full Article »

OVER 40,000 people have cancelled their private health insurance following pay cuts and insurance premium hikes.

Some 2pc of the 2.27m people with health insurance have stopped their payments because of the growing pressure on their incomes, an Oireachtas committee heard yesterday.

That leaves another 40,000 relying on the already-under- pressure public health system.

Younger people account for the highest proportion of those cancelling their insurance, according to Hibernian Aviva Health. It told TDs and senators that 74pc of those who left its company in the last 12 months were under the age of 40.

The number of those forced to cancel their private health insurance coverage is likely to increase “significantly” in 2010, according to managing director Jim Dowdall.

“Against the backdrop of last week’s Budget, where in excess of €1bn in cuts are to be made in the health budget, it is clear that the public system will be less able to cater for the current level of demand placed on it, never mind respond to a significant increase in demand as a result of a reduction in the number of people who will be able to access private health care,” he said.

The largest of the healthcare companies, Vhi Healthcare, told the Oireachtas Committee on Health it will generate losses of over €80m this year in meeting the needs of its customers.

The company has lost almost 120,000 to its competitors, and through cancellations. Yet, it will have more customers over the age of 60 than it did at the start of the year. In 2009, it will have lost €170m in meeting the healthcare needs of customers over the age of 60.

Chief executive of VHI Jimmy Tolan said these level of losses were “unsustainable” in a highly competitive marketplace.

“Our younger customers have to fund the healthcare costs of our older members if they remain with Vhi Healthcare but they do not have to fund these costs if they move to Quinn or Hibernian,” he said. “In 2009, our average healthcare costs per customer will be €900 which is almost double our competitors.”

Donal Clancy of Quinn Healthcare claimed the overall market was “shrinking” as affordability becomes an issue.

The levy on healthcare policies is a “stealth tax that supports the inefficiencies of VHI”, he said.

The primarily large workplaces spent an average of $8,376 per employee on health benefits, according to a survey released Wednesday.

The relatively modest increase followed four years of cost increases above 6 percent for employers who subsidized employee health insurance. Employers, expecting a 10.5 percent rise if they didn’t make changes, increased deductibles and other insurance terms to shift more costs to employees.

The numbers were charted by Mercer, a benefits and management consulting company, in its annual National Survey of Employer-Sponsored Health Plans.

Some other points:

About 4 in 10 Kansas City employers will raise deductibles, copays, coinsurance or out-of-pocket maximums for their employees in 2010, the survey found. Half said they will raise employees’ share of the premium contribution.

Nearly 1 in 3 of the companies said they were offering health savings or health reimbursement accounts this year and intended to do the same next year.

Preferred provider organizations remain the dominant health delivery system for Kansas City area employees, Mercer found. More than 6 in 10 of the covered employees are enrolled in PPO or point-of-service plans.

About 1 in 4 are in health maintenance organizations, about 1 in 10 in consumer-directed health plans, and only about 1 in 100 are in traditional indemnity plans.

Ottawa has completed a round of consultations with the insurance and banking industries about its decision to stop banks from marketing insurance on their websites, and is now crafting a plan for putting the rules in place.

According to a letter that the Insurance Bureau of Canada (IBC) sent its members, the Department of Finance sought input from the industries on how to implement its proposal. The government’s specific concerns illustrate the challenges it faces in applying the laws that govern bank branches in the online environment.

“How should the concept of a bank branch be translated into bank websites?” the letter asked. “Should there be a distinction between websites for the corporate bank group, retail banking site open to the general public, and secured bank website for existing customers only?”

Finance Minister Jim Flaherty dealt an unexpected blow to the banks in mid-October when he faxed their chief executive officers to notify them that he intended to stop them from marketing insurance products online. View Full Article »

Life Insurance For Children

life-insurance-for-kidsMany people are superstitious and find it extremely uncomfortable to talk about buying life insurance for children. They feel that by doing so they may be considered to be having one foot in the grave, or they may be having some illness, which may result in an early death. However, buying insurance is a necessity, a must item on everyone’s agenda.

It may release a flood of emotions. And if one buys insurance for a child, then it is all the more difficult. By buying life insurance for a child, they may feel that they are imagining something may happen to the child and hence financial protection and insurance are necessary. However it is important that this should be included in your financial plans. We know that the premiums become bigger as we grow older. Our health deteriorates as our systems weaken and fall prey to illnesses. But the premiums are relatively less when the person to be insured is younger. The insurance company has experience that younger the person is, further away is he from ill health or death, hence he can be charged a smaller premium as he has longer time to pay it. View Full Article »

Property-InsuranceImagine that a huge tropical storm struck your area. Your home and your car were insured, so they can be replaced. But did you have personal property insurance for your other important items?

This type of coverage is actually offered within your renters or homeowners insurance policy. What this does is cover all of the goods in your home that are not attached to it permanently. This would include objects like furniture, books, computers, clothing, and other appliances. For most carriers, you will be covered for up to forty percent of the value of your residence policy.
View Full Article »

travel-insuranceIf you’re looking to travel abroad in the near future or off on your annual holidays then Travel insurance is something you should probably be looking to purchase.

Travel Insurance covers a number of eventualities that could occur whilst you’re abroad Some of the areas generally covered by most Travel insurance policies are listed below

1. Loss, Damage and theft of personal effects whilst abroad this may include cash, jewellery, personal effects, luggage, clothing, cameras, cam-corders and a host of other personal effects you are travelling with.

2. Cover for Loss , damage or theft of Cash or travellers cheques

3. Personal Injury and accident cover , This is an important one , If you are unfortunate enough to be taken Ill or have an accident whilst abroad medical costs can quickly mount up. Most travel Insurance policies will include medical cost cover to a pre defined amount and you should be able to check the level of medical insurance cover provided by your insurer before purchasing your Travel insurance policy.

For obvious reasons some activities will carry a higher Travel insurance premium than others for example a Hang Gliding or Skiing holiday will probably carry a higher travel insurance price tag as insurers will deem these activities as a higher insurance risk that does not mean that Cheap Travel Insurance cannot be found for these activity style holidays. So it’s well worth taking a look online at what is available.

Travel insurance due to its short term nature is generally one of the cheaper insurance policies to buy and is a definite if you’re travelling abroad but you will want to check out the small print of any policy before you buy. Nowadays it’s quite quick and easy to compare a few policies online by using one of the many online insurance comparison sights where you should be able to find a number of travel insurers in one place on the web and compare prices to find the best deal for you. If you’re looking to travel soon then Why not spend 10 minutes looking at deals for Travel Insurance.

Car Insurance Online

The enormous advantages that the Internet has to offer have prompted car insurance companies to advertise their policies online. Initially, car insurance was available only through a car insurance agent. The process was tedious and time consuming and required immense paperwork and assessments. This factor alone has made a large number of people opt for online car insurance.
Car insurance companies now offer online services that have made it very easy for clients to acquire information they may need. Car insurance quotes and auto insurance claims can be obtained or filed at any time of the day. Online car insurance helps provide interactive and spontaneous customer care, rather than wait on the phone line for long periods of time. Insurance companies are using this medium to sell car insurance directly.
Opening online accounts with car insurance companies is also proving to be beneficial. In case clients misplace an insurance card it is possible to simply acquire a printout of the original copy. Car insurance online accounts with existing insurance providers puts an end to storing piles of insurance paperwork. Online car insurance even allows people to receive updates and file claims whenever needed.
Car insurance online sites have gone a step further by making the online experience easy and user friendly. Car insurance terminology and verbiage may be difficult to understand. Most car insurance online services are aiming at providing simple and understandable information. Online car insurance allows customers to learn about various types of auto insurance coverage, limits and deductibles.
Certain states even allow people to purchase a car insurance policy online. These methods are considered to be safe since most Web sites use secure connections. This prevents outsiders from attaining personal information about a prospective client. However, it is important to realize that car insurance online is at times only a part of the entire process. Car insurance online often complements and eases the car insurance procedure.

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