GORILLA – The top two insurance brokerages will soon be one. BISYS, the largest insurance brokerage, has purchased its chief rival Ascensus for a reported $44 million. The move follows BISYS's recent purchase of Pictorial Publishers and the company continues to strengthen its already dominant position in the insurance brokerage arena.

INVESTMENT ADVISERS – Beginning with a pilot program in January 2001, investment advisers registered with the SEC must file electronically through the new Investment Adviser Registration Database (IARD).  A new web site has been launched by the SEC to help investment advisers prepare for electronic filings (http://www.sec.gov/IARD).  Under this pilot program, investment advisers will be able to make a single electronic filing that satisfies both SEC and state filing requirements.

WHO MAKES WHAT – Check out the Insurance Executive Salary Tool at Insure.com to view executive compensation for a particular insurance company, or to select salary ranges and see the executives who fall in that range. Here are the top 5 earners for 1999: 1. Arthur F. Ryan, Prudential ($7,189,931); 2. J. Harold Chandler, UNUMProvident ($5,853,648); 3. Wilson H. Taylor, CIGNA Corp. ($5,460,087); 4. James A. Mitchell, IDS Life ($4,145,542); 5. Seymour Sternberg, New York Life ($4,117,110).

YODELING – Swiss banking group UBS announced on Wednesday that it was planning to expand in the U.S. by buying PaineWebber in a deal valued at $10.8 billion.  PaineWebber shareholders will receive $73.50 a share (half in cash, half in UBS stock), almost a 50% premium over the value of PaineWebber shares at the close of trading on Tuesday.  In related news, Merrill Lynch is again rumored to be a takeover target for a European bank.

COLLECTIVE BARGAINING FOR DOCTORS – The House passed legislation that would grant an exemption from federal antitrust laws to allow independent physicians to band together to collectively bargain with insurance companies. The American Medical Association supported the bill and argued that the consolidation of insurance companies has left physicians powerless to advocate for themselves or their patients. "We need to give some relief to these doctors. They are really feeling the pinch," said Rep. John Conyers, D-Mich. The insurance and business communities are against the bill, fearing that doctors would use the power to force higher fees and thus raise insurance premiums. "What we're doing here is exempting one group of Americans to negotiate on whose behalf? Come on. On their own behalf," said Rep. John Boehner, R-Ohio.
 
FULL DISCLOSURE – The CFP Board is calling for planners to make full disclosure to clients of commissions, potential deferred sales charges, referral fees and fees for services.  In the past, planners have been required to tell clients only whether they were paid by commissions or fees for services.  CFPs have until August 30 to comment on the proposed changes which, unless modified, will take effect on January 1, 2001.

TOGETHER AGAIN? – After exclusive talks with ING were terminated, a number of other financial services firms were rumored to be interested in purchasing all or parts of Aetna.  According to a Wall Street Journal report, however, Dutch insurer ING has reemerged as the leading potential buyer of Aetna's financial services business in a possible $7.3 billion deal, which would then leave Aetna primarily as a health insurance company.

AMERICAN COLLEGE CHANGES – In an effort to keep pace with change, the American College is reducing the number of courses required to attain the CLU and ChFC designations from 10 to 8.  Also expect to see the courses make greater use of the Internet and be more "application" oriented.  Finally, LUTC and the American College are considering various ways they could help each other accomplish their missions...more on this after their August board meetings.

HUMAN GENOME – With blueprinting of the human genome a reality, the health insurance industry is trying to calm consumer fears that insurers won't pay for genetic testing or that results from the screening might be used to deny future coverage.  The scientific milestone is expected to eventually help transform medicine by allowing doctors to tailor drugs for each individual and to predict who might be at risk for certain diseases.  Looks like a conundrum to us...insurers may be forced to pay for the genetic testing, but not allowed to use the results in risk selection.

SETTLEMENT – States representing more than 86% of the American General policyholders who paid race-based insurance premiums have ratified a $7.5 million penalty and a $206 million restitution settlement negotiated by Florida Insurance Commissioner Bill Nelson.  Still needed is approval by a federal court judge in Tennessee of a related settlement of a class-action lawsuit against American General.  Meanwhile, Mr. Nelson is continuing his investigation of four other insurers:  United Insurance Company, Monumental Life, Liberty National Life and Life of Georgia.

INTERNATIONAL LEARNING – LOMA, which already offers its print-based educational programs in five languages in over 60 countries, will establish a global online learning environment to meet the educational needs for insurance and financial services professionals from all countries. This new global distance learning initiative will be in alliance with two online education providers - Life Instructors, unit of Fiserv, and The Global Institute for Financial and Educational Services, an international venture formed by InterContinental Marketing Systems. Courses for the U.S. and Canada will be available at http://www.lomalearn.com and throughout the world at http://www.globalEDegree.com.