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AND THE WINNERS ARE – According to the most recent DALBAR study, the best life insurance consumer Web sites belong to Fidelity, TIAA-CREF and Prudential.  In the mutual fund category, there were 11 winners, among them Fidelity, Schwab, Vanguard, T. Rowe Price and Prudential.  There were nine winners in the brokerage category, including Fidelity (again!), Schwab, Merrill Lynch, E*Trade and American Express.  According to DALBAR president Louis Harvey, the year 2000 signaled "a change in the way institutions view their Web sites: less as a distribution channel and more as an efficient support channel for customers and prospects."  Sounds like a wise change in view to us...read on.

IN THE DRIVER'S SEAT – According to a new survey by Progressive Insurance, agents are still in the driver's seat when it comes to auto insurance.  An overwhelming majority of those surveyed (67.6%) bought their auto insurance from an agent with a local office.  About 21% purchased directly from an insurance company over the telephone, with just under 1% buying online.

FUTURE OF THE AMT – If anything close to President Bush's tax cut proposal becomes law, something like an additional 27 million people, primarily middle income, could be hammered by the alternative minimum tax.  As a result, lobbying groups have kicked off a campaign to have the AMT abolished, something the powerful congressional Joint Committee on Taxation is predicted to favor.

THE BEAR AND WHOLE LIFE – The growth of equity products and the Bull market of the last several years have sharply reduced the sale of traditional whole life insurance. Will the Bear market revive whole life sales?  Could be. See details at AdvisorToday.com

PEAK INVESTING – According to a recent study by Weiss Ratings, net inflows into variable annuity and variable life insurance separate accounts reached a record peak of $20.4 billion in the second quarter of 2000, just when market averages were near their highs or just beginning to decline.  "Unfortunately, right now, many investors are stuck with substantial losses, and even if the market recovers, it will take longer to recoup due to the additional fees associated with these funds," commented Martin Weiss.  While the third quarter flow of money dropped considerably to $15.9 billion, net inflows for the first nine months of 2000 totaled a record $52.2 billion, a 36.3% increase from the first nine months of 1999.
 

BYE BYE – The final auction of one-year Treasury bills was held on February 27, ending a popular interest-deferral option for investors.  While interest on the bills was paid up front, it wasn't taxed until the year the bills matured, enabling investors to defer the tax to the following year.  The remaining T-bill options, 3- and 6-month varieties, limit this interest-deferral option.

OFFICE MAX TO SELL INSURANCE – It seems that everyone sees selling insurance as retail nirvana. The latest to join the chase is OfficeMax, which will offer a suite of small business and professional insurance policies from ePolicy through OfficeMax.com and promote its insurance services at nearly 1,000 nationwide stores.

MINIMAL IMPACT? – A Bear Stearns life insurance analyst, Andrew Kligerman, is predicting that estate tax reform will have a minimal impact on the life insurance industry.  For one thing, he feels that a compromise resulting in an estate tax exemption of $5 million to $7 million is more likely than outright repeal of the estate tax.  Mr. Kligerman also believes that large life insurance policies will continue to be sold for succession planning, to create liquidity in an illiquid estate and as a wealth-creation tool.

BLENDED HEALTH CARE – The MedAmerica Association is billing its new health care as being capable of saving clients up to 60% on premiums.  The plan blends low contracted rates for minor medical expenses with a Major Medical fully insured plan for the major or catastrophic claims.  Sounds good but...

INSWEB SUSPENDS HEALTH QUOTES – InsWeb has temporarily suspended online health insurance quoting due to the decision by eHealthInsurance, formerly the company's exclusive provider of online health-insurance quotes, to unilaterally terminate the relationship.  eHealthInsurance has filed suit alleging InsWeb failed to perform its obligations under their agreement. Of course, InsWeb disagrees and believes they will soon find an alternative health outlet.

INSWEB AND ALLSTATE – Undaunted by the loss of their health insurance carrier, InsWeb continued to expand its P & C carrier base with a two-year agreement with Allstate to market its auto, homeowners, renters and condominium insurance products online. Customers who access Allstate through the InsWeb site will also have access to the sales and service of approximately 13,000 local Allstate agents. Allstate plans to migrate to providing instant, online quotes and sales on the InsWeb site sometime in 2002.