MD BIG BROTHER – A Gallop Poll indicates that 88% of Americans are opposed to having their medical records stored in a national database. Such a plan, called for by the Health Insurance Portability and Accountability Act, would assign a "health identifier number" and create a database of medical records by number rather than by name.

REGULATORY UPDATE – According to National Underwriter, the NAIC has put out "a call to insurers and consumer advocates to help create a structure that would preserve state regulation."  The goal is to create a framework that would accomplish the dual purpose of streamlining regulation while preserving consumer rights.  The NAIC has also submitted proposed legislation to Congress that would grant state insurance regulators access to the FBI's National Crime Information Center database.  This came on the heels of a GAO report blaming a lack of state regulations and oversight for enabling Martin Frankel to bilk more than $200 million from insurance companies in five states.

QUIETLY RESPECTED – Northwestern Mutual is once again the world's most admired life and health insurance company. Fortune Magazine has had Northwestern Mutual as the "most admired" in this category for 17 consecutive years.

DROP IN UNINSUREDS? – According to the Census Bureau, the number of uninsured Americans declined last year for the first time since 1987. About 42.5 million people (15.5% of the population) had no health insurance in 1999 versus 44.2 in 1998. However, an Employee Benefit Research Institute (EBRI) review of seven different surveys shows estimates ranging from 19 million to 44 million uninsureds.  Reasons for decline: Robust economy, more employers providing coverage and the new government program for uninsured children.

WELLS FARGO – Feeling the heat from Citigroup's merger with Travelers and the merger of Chase Manhattan with investment banker J.P. Morgan, Wells Fargo has announced plans to dramatically increase its insurance and securities business...possibly through acquisition. Income from insurance and investments now accounts for only about 15% of Wells Fargo's earnings, but the company is targeting 25%.  Speaking of mergers, reports have Charles Schwab and Goldman Sachs holding talks about some type of business combination.
 

HMO SIZE COUNTS – According to Weiss Ratings, half of America's health maintenance organizations posted financial losses last year, but the nation's 34 largest HMOs made significant profits. Size obviously affects profitability.

MUTUAL HOLDING STILL HOLDING – Liberty Mutual will be converting to a mutual holding company despite concerns by many that such a corporate structure is inherently flawed. Conversion is expected by mid-2001, with the major benefits to the company being flexibility and better access to capital markets. Some criticize the mutual holding company structure because of a diluted accountability to shareholders and the potential for stock abuse by senior management. David Schiff, industry consultant, says "It (mutual holding company) is ideal for management, because they're not accountable to anybody, and they don't have to worry about being taken over."

MARK YOUR CALENDARS...IMPORTANT MEETINGS – Two of the best industry meetings are coming up.  The LIMRA Annual Conference is scheduled for October 23 - 24 in Atlanta. It is a "don't miss" for all home office executives.  The NAILBA Annual Meeting will be in Washington, DC from November 9 – 12 and it is a "don't miss" for all brokerage distribution companies and brokerage GAs.

ALLIANZ EYES FRANKLIN – According to Reuters, Allianz is talking takeover with asset managers Franklin Resources, Waddell & Reed, Nicholas Applegate, and Gabelli Asset Management in order to expand its U.S. investment market presence. Franklin runs the Templeton funds group, with $236 billion under management.  Allianz acquired U.S. bond fund manager PIMCO for $3.3 billion earlier this year.

ANOTHER SETTLEMENT – Without admitting wrongdoing, Aetna has agreed to pay $82.5 million to settle a class-action shareholder lawsuit in which the insurer was accused of misleading investors about its financial status.  Not to worry though...insurance is expected to pay most of the settlement amount.

WORLD'S OLDEST MUTUAL – Prudential of England is said to have the best chance of acquiring Britain's venerable Equitable Life. Call us sentimental, but we hated to see the Equitable (U.S.) have its name changed to AXA and it's too bad to see the "other" Equitable, the oldest mutual insurance company, suffering a similar fate.