BANKS TO SELL 8% OF METLIFE – The two foreign banks (Banco Santander and Credit Suisse) that were in charge of marketing Met's IPO shares to investors outside of the U.S. are set to reap a handsome profit by selling their stake in MetLife. Their 60 million shares represent about 8% of the total outstanding stock in the company. The shares were acquired in a private placement at the time of the Met IPO and their value has risen from about $14.25 per share to about $31.

AETNA UPDATE – In the latest in a series of problems, Aetna admitted that it has been double-paying claims and covering some people who are no longer members. The exact dollar amount of damage was not released, but is said to be in the millions. Aetna previously said it had under priced its health plans, resulting in a larger share of unhealthy members. The company and the industry are struggling with high medical costs, lagging profits and bad PR.

RUMOR MILL – The rumor mill has it that investment bank Morgan Stanley has approached American Express to discuss a possible merger, a move that would combine Morgan Stanley's Discover credit card business with American Express' famous card brand.  Wall Street analysts, however, are skeptical that such a merger will take place.

SPEAKING OF ANALYSTS – In advance of Congressional hearings this week on the independence of Wall Street analysts, the Securities Industry Association issued 13 guidelines for analysts, including prohibitions on linking analyst pay to lucrative investment banking deals and on analysts trading against their recommendations (i.e., an analyst can't sell shares of a stock he's rated a "buy").
 

GREAT INDUSTRY NEWS SITE – If you haven't bookmarked http://www.knowledgedigest.com, you might want to do so. In our opinion, it is the best industry news site on the Net. The site is run by the Knowledge Services unit of MIB. No, it is not the "Men In Black," but if you want to learn more about the MIB (formerly Medical Information Bureau), see an interesting article by Bob Littell at http://www.mib.com/html/toon.html. 

PATIENTS' BILL OF RIGHTS – What is it with these "bill of rights" things?  We already have confusion as to the meaning of the "real" Bill of Rights...do we really need another one so we can argue over the meaning of it?  The Patients' Bill of Rights would, among other things, expand the ability of patients to sue health plans in state courts (read huge judgments) over injuries resulting from care denials. No doubt that some of this happens, but as Karen Ignagni, CEO of the American Association of Health Plans says, "The idea that going to court, entering a litigation lottery, is a good idea for the health care system defies credulity."  Considering the erosion in employer-sponsored health benefits (a recent study found that two-thirds of private-sector workers had health insurance through their employers in 1979; just over half did by 1998), it could be argued that attention would be better spent on addressing the growing problem of uninsured Americans.

$200 BILLION – According to Tillinghast - Towers Perrin, settlements to individuals exposed to asbestos and related expenses will ultimately reach $200 billion. Of that rather staggering number, insurers will have to fork over about $125 billion.  Most U.S. exposures to asbestos occurred prior to the 1970s, when OSHA implemented limits on asbestos exposure and use.  You would think that the claims would have trailed off by now, but "the number of plaintiff filings has increased dramatically, with 50,000 to 60,000 in the last year, compared to averages near 20,000 in the early to mid 1990s."  The complete article is available from Tracy Spencer at tracy@blisspr.com.  And just think, the "tobacco sweepstakes" are only now beginning, plus...see above and below!

LEGAL SERVICES LAWSUIT – Allstate has been slapped with a civil lawsuit claiming that policyholders were defrauded by the company's use of an online bidding system to select defense attorneys to represent them in auto-accident cases.  Allstate defends its use of LegalPath.com for the handling of routine court cases as a way to lower legal costs, resulting in savings for the company and lower rates for customers.

MANAGED CARE PERCEPTIONS – A recent Harris Interactive poll reports that, with the exception of the tobacco industry, no industry does a worse job in serving their customers than managed care and health insurance. In 1997, 51% of those polled felt that managed care companies did a good job serving their customers...today the number is down to 29%.

http://www.FinancialServices.com – If you have more than $235,000 laying around, you can be the proud owner of this domain name. In a recent auction, the owners turned down the high bid of that amount. The site has never been used, but is said to get 12,000 hits a month from people just "typing in" the name.  With all the dot.com failures, we think the owners need to "take the money and run."

insurance.ce.com has attracted thousands of professionals to its online career event in recent weeks.  Our participants, ACE USA, AIG, HUMANA, MARSH, PROGRESSIVE and PRUDENTIAL, still have many more positions to fill across all departments, from accounting to finance to sales and everything in between.

Why not take a look?  Apply for a specific job or post your resume and let employers find you.

ESTATE PLANNING CONUNDRUM – Two things were always certain...death and taxes.  Not so today.  In fact, estate taxes have suddenly and certainly become uncertain.  Will they need to be paid or not?  Who knows.  We assure you this: 
  * There will be expenses associated with death. 
  * The more money you have, the greater the expenses. 
  * The best way to protect yourself from financial uncertainty is with cash. 
  * The best investment reaches its peak cash value when it is needed most. 

Your wealthy clients still need life insurance. It can buy them certainty in an uncertain world for "pennies on the dollar."  And if they don't need it, their heirs will.  With repeal, the heirs of large estates lose the stepped-up tax basis.  They'll be able to add up to $1.3 million to the tax basis of inherited assets, but that's it except for surviving spouses, who can add on an additional $3 million.  Beyond that, heirs must use the decedent's tax basis for inherited assets.

CELL PHONE DANGER – Since most of us who use them have had "near-misses," we know using cell phones while driving can be dangerous. In fact, the American Automobile Association says that drivers are at a 34% higher risk of an accident when using a cell phone.  We also know that you are not about to give up the only productive thing you can do during a commute; however, we don't want to lose you as a subscriber.  Be a little safer with a FREE cell phone headset (you only pay S&H). Click here to check it out and tell your clients!

COBRA RIDER – Neat name for a new disability income rider from American Fidelity.  The "Cobra Rider" is designed to help pay the cost of health insurance incurred by a disabled person who is no longer employed and who has elected to continue their health insurance under COBRA provisions.
 

FEEL, FELT, FOUND – Here's a quick review of an old but effective method of defusing objections from Jack Falvey, a noted sale trainer.  If the customer feels something isn't right, be careful.  Don't make a quick comeback.  First, acknowledge that the customer isn't stupid.  Begin by saying, "I can understand how you feel."  Then give the customer credit for being in good company. "Others have felt the same way."  Name the others your customer might know.  Then, say, "Until they found...," and give your convincing response. For other thoughts from Jack, check out his site at http://www.MakingTheNumbers.com.

INSWEB LOSSES WIDEN – InsWeb, an Internet industry pioneer, said its net loss for the second quarter would be wider than estimates due to disappointing growth in its auto insurance offering.  However, they are doing a lot better than some of their dot.com brethren.  At least 493 substantial Internet companies around the world have shut down since January of 2000, and more than half of those have fallen this year.

INSURERS STILL WITHOUT INTERNET STRATEGY – According to Conning & Company, "the life insurance industry's allegiance to the agent 'face-to-face' sales approach has discouraged many life companies from designing consumer-focused Web sites - even though consumer-oriented Web sites can be useful for agents to increase sales."  The study, "Life Insurer Web Site Assessment: Opportunities Abound," is available for $575 at http://www.conning.com.

ANOTHER MISSED OPPORTUNITY? – While the Conning report focuses on public sites, we do not understand why all companies are not providing their agents with the American College/LUTC Virtual Sales Assistant (http://www.lutc.com) on their Extranets.  As a testament to its value, the service now has nearly 5,000 individual subscribers.  It is far and away the most comprehensive sales support tool in the industry, backed by two of the industry's most venerable education and training organizations and it is very affordable!  If you are a company sales or marketing person, see for yourself by e-mailing Kevin Leahy at kleahy@lutc.org or by calling Madeleine at 225-387-9845 for a complimentary trial subscription.

WAITED TOO LONG TO BUY LTC? – Golden Rule has a new product that could help pay for care and preserve the assets of those who are already receiving some type of long-term care. ImmediateCare is a medically underwritten, single premium immediate annuity that provides guaranteed monthly income for the life of the annuitant. Golden Rule is a creative health insurer and you might want to check out this "financial planning tool for situations where families need cash to pay for care but have insufficient or no LTC coverage in place."