Assurant seeks buyer for health insurance, employee benefits
Assurant wants to sell its health insurance division and get out of that market by next year. The company has announced that it is seeking buyers for the unit together with its employee benefits business. In reporting its quarterly results Assurant showed that most of the business is doing well but the health insurance division has lost tens of millions of dollars. The company has confirmed that it will not participate in the open enrolment period for 2016. The focus for the business will be its mortgage insurance and personal property insurance divisions.
Wells Fargo to expand insurance division
Wells Fargo is seeking to grow its insurance business to recoup profits lost in its lending division from lower interest rates. The San Francisco based bank reduced the size of its insurance business a few years ago but the Wall Street Journal reports that it has been building it back up again in recent months. Revenue from the division is currently just 2 per cent of the bank’s total income but it is still one of the larger players in the sector compared to other US banks. It has 5,000 employees and places $9 billion in risk premiums annually.
Title insurers curbed by NY State
New rules have been imposed on New York state title insurers which should save homebuyers money. The superintendent of financial services is capping some fees and will require insurers to submit their rates to the regulator at least every three years. Officials believe it could save homebuyers as much as 20 per cent on title insurance closing costs.
Insurers prepare for Privacy Awareness Week
Next week there is a global effort to increase awareness of the growing issue of privacy. Insurers and other organisations will be joining the effort to highlight this year’s theme of “privacy matters at any age.” It creates an ideal marketing opportunity for insurance brokers to focus on cyberliability insurance and other aspects of keeping personal information safe. Studies show that high-profile hacking such as Sony, Anthem and Target has made businesses and individuals more aware of the risks online and the awareness week will offer tips and guidance to protect one of our most valuable assets. It runs from May 3-9.
