MetLife plans to sell insurance agents network
MetLife has confirmed reports that it is in talks to sell its insurance agents network. The insurer says that “pursuant to its plan to separate a substantial portion of its U.S. Retail segment, it is in discussions with MassMutual Financial Group regarding a possible transaction related to the MetLife Premier Client Group, its U.S. advisor force.”
The Wall Street Journal says that the sales force of around 4,000 agents has fallen from 14,000 many years ago, back in the days of door-to-door calls to collect premiums. It highlights the decline in the number of sales agents across the industry with 145,000 full-time US agents according to 2013 figures from Limra.
In MetLife’s statement it says that “There can be no assurance that an agreement will be reached or that a transaction will be consummated.”
Climate change is a bigger deal than estimated
The cost of climate change to the Canadian federal government is larger than previously estimated. The Insurance Bureau of Canada has responded to a report from the Parliamentary Budget Officer which says that natural disasters linked to climate change will cost the government $900 million each year over the next five years. That comes from $229 million to cover storm damage and $673 million for floods.
"Extreme weather events driven by climate change have increased in frequency and severity. Canada is not prepared for the increase in damage caused by climate change and primarily flood. As the only G7 country without a national flood program, Canadians, our governments and the insurance industry are dangerously exposed to severe weather risks," said Craig Stewart, Vice-President, Federal Affairs, IBC.
The Insurance Bureau has just completed research showing that 19 per cent of Canadian homes are at risk from flooding and it is calling for politicians to use a meeting of provincial leaders next week to consider a national strategy.
New insurance business targeting M&A market
A new insurance company is focusing on the mergers and acquisitions market. Vista Insurance Advisors has been founded by Atlanta, GA-based Breckenridge Insurance Group and will provide expert guidance to those involved in M&A deals. The new business will be led by New York-based chief executive Thomas Dowd who has previously held roles with
AIG, Lloyds and Crum & Forster. His team all have at least 30 years of experience in the market who will advise on issues including litigation buyout, cyber liability and representations & warranties.
