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8/26/04 - JEANNE>
is working closely with USAA's Roseann Phonn on their homeowners insurance booklet
that will be used by their educational foundation. 7/29/04
-BOB> speaking at USAA's Executive Council in San Antonio. 7/27/04
- JEANNE> provided statistics to Paul Berry regarding distractions and driving
and Roseann Fohn on credit and CLUE. 7/24/04
- JEANNE> assisted Paul Berry on messaging regarding DVD players in cars.
7/24/04 - JEANNE>
worked with Paul Berry regarding the an MSNBC interview on the sales of insurance
products to military personnel in lieu of the recent scandal that has been covered
in the NY Times.
7/9/04
- JEANNE> is working with Ms. Fohn of USAA's Educational Foundation to review
its home insurance books.
5/25/04
- MADINE > Scott Mason, CLUE survey.
5/18/04
- CAROLYN> provided video to USAA to use in an upcoming VNR on preventing water
damage. She received this request from IBHS.
3/8/04
- LIBRARY> during the month of February, the library staff handled 3 article
requests. 11/12/03
- MADINE> Randall Mangum, homeowners insurance replacement coverage.
11/03
- BOB> will speak at Arizona I-Day meeting in Scottsdale on 11/20. USAA contact
is Victoria Conrad. 9/4/03
- BOB> worked with Paul Schettenberg to help create content for USAA web site
on flood insurance.
8/29/03
- MADINE> provided industry data - personal lines to John Gilleland.
7/26/03 - BOB> provided
USAA with info for Bob Davis (CEO) talk on financial state of the industry.
7/23/03
- MADINE> provided data to Randy Mangum for CEO presentation.
6/17/03
- BOB> Spoke to Fannie Mae's National Advisory Council on HO insurance, credit
and CLUE. Met President & CEO of USAA's Federal Savings Bank, Mark Wright
and follow-up with Fin Ser Fact book and letter.
3/27/03
- ALEJANDRA> was
contacted by Amy Farugia of USAA- she was meeting with the Lt. Governor of TX
and needed to verify rates for HO in TX and other mold-related information. 3/24/03
- DAPHNE/DIANE> sent to Wendi Strong 10 copies of the 2003 Fact Book and 2
copies of the Financial Services Fact Book for distribution to USAA executive
council members. 3/20/03
- MADINE> assisted Lesli Hicks, program administrator, loss prevention &
industry analysis, with auto insurance data. 3/14/03
- DOLORES> faxed to Don Schulze "shared market" auto stats from our
P/C Factbooks for the years 1990-2000.
3/3/03 - LORETTA>
Worked with Paul Berry of USAA regarding call from reporter Marissa Bucanon at
NBC Nightly News regarding exclusions for war in personal lines insurance. Gave
them some message points in case they spoke with her and offered to take the call.
2/4/03 - BOB> spoke
in San Antonio at USAA HQ on credit scoring. 1/27/03
- LORETTA> set up a meeting with Joe Treaster, New York Times, for Paul Berry.
He couldn’t get a meeting and I was able to set it up for him. Went with
him to the meeting and helped promote USAA.
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3/20/05
- USAA helps NPR reach American forces abroad. San Antonio Express-News
(Texas). Listening to National Public Radio is a big deal for Nicole Rothstein
Shampaine, who is stationed in Egypt with the State Department. These days, she
has San Antonio-based USAA to thank for it. "It means the world to me,"
she wrote in an e-mail interview. "I live on an isolated military base, and
NPR is my lifeline to developments back home in the U.S. and around the world.
... It's fair to say that I'd be pretty depressed if I were cut off from it. So
I really appreciate USAA's sponsorship of NPR Worldwide." The programming
has been available on the American Forces Radio and Television Service "for
a number of years," said Kevin Klose, president and chief executive officer
of NPR, but the cost has been borne almost entirely by NPR itself. "We have
had virtually no underwriting on the news streams that go to AFN," said Klose.
"We basically provide it free of charge to AFN. We have costs associated
with them which we were taking on as part of our mission." AFN - American
Forces Network - is an agency of the radio and television service. For the past
few months, USAA has been underwriting some of that programming.
2/9/05
- USAA LIFE INSURANCE COMPANY;
Americans underestimate cost, potential
need for long-term care, survey finds. Biotech Week. A new survey finds that
only one-quarter of U.S. adults believe they are likely to need long-term care,
despite predictions from independent organizations that half of the American population
is likely to need some form of this specialized and potentially costly health
care service. USAA Life Insurance Company (USAA), a diversified financial services
company for military members and their families, commissioned the survey to determine
how much consumers understand about the costs associated with long-term care.
"Long-term care is costly, and research shows that while more than half of
the population will likely need it, only 35% of adults have purchased, or considered
purchasing, long-term care insurance to help cover these costs," said Kristi
Matus, president of USAA Life Insurance Company. Long-term care insurance provides
coverage for care in a nursing facility, private home, adult day-care facility,
or assisted living arrangement.
1/11/05
- USAA Survey Finds Americans Underestimate Cost, Potential Need for Long-Term
Care; Questions to Ask Before Purchasing Long-Term Care Insurance. Business
Wire. A new survey finds that only one quarter of U.S. adults believe they are
likely to need long-term care, despite predictions from independent organizations
that half of the American population is likely to need some form of this specialized
and potentially costly health care service. USAA, a diversified financial services
company for military members and their families, commissioned the survey to determine
how much consumers understand about the costs associated with long-term care.
1/03/05 -
R.I. FIRM TOPS (NY) INSURANCE GIANTS. Nicole Bode. (New York) Daily News.
A customer service ranking of auto insurers in New York compiled by the state
Insurance Department put Amica Mutual Insurance Co. of Lincoln, Rhode Island,
in the top position. Other insurers with high rankings include USAA of San Antonio,
Texas, Preferred Mutual Insurance Co. of New Berlin, New York, and Atlantic Mutual
of New York City. Leucadia National Corp. of New York City scored the lowest ranking.
The survey was based on complaint ratios. In 2003 New York drivers spent over
$10 billion on auto insurance.
12/6/04
- Auto insurance firm cuts drivers' rates by an average of 10 percent in S.C.
The Post and Courier (Charleston, SC). United Services Automobile Association,
an insurer that caters mainly to former and active military personnel, is cutting
auto rates for most of its South Carolina drivers by an average of 10 percent.
The move, which USAA says will shave about $70 off premiums for 22,000 vehicle
owners in the state, comes as part of a broader strategy to be more competitive
nationwide by reducing rates in 48 states by an average of 8 percent. The San
Antonio-based insurer's rate cut bucks an industry-wide forecast that estimates
rates going up by 3.5 percent this year. The company says how much an individual
motorist's premium is lowered, if at all, depends on a number of factors. For
example, where someone resides may matter, as the company said the cuts will be
available to those "living on or near military installations in South Carolina."
Anyone in the middle of a policy period will have to wait until the term is over
to qualify for a reduction.
11/11/04
- USAA Cuts Auto Insurance Rates by 12 Percent in Texas; Reductions Attributed
to Legislative Reform and Operating Efficiencies. Business Wire. In December,
USAA will reduce auto insurance rates by an average of 12 percent for its Texas
members. The reduction follows a February 2004 rate cut of 4.5 percent. USAA is
the fifth largest auto insurer in Texas with more than 390,000 auto policy holders.
Henry Viccellio, president of USAA Property and Casualty Insurance Group, attributes
the lower rates to: USAA's operating costs that are lower than industry average
and Senate Bill 14, which encourages a more competitive insurance market. Viccellio
commends Insurance Commissioner Jose Montemayor, along with members of the state
administration and elected officials for their work to implement Senate Bill 14.
The legislature passed Senate Bill 14 last year. Elements of the law are now taking
effect. "As a member-owned association, we look for ways to pass savings
on to members," said Viccellio. "Senate Bill 14 allows USAA to offer
Texas members lower rates, broader coverage, and more choices." Viccellio
also noted that insurers can now compete and set rates based on the insured risk,
rather than reacting to the previous system of over-regulation. 9/11/04
- USAA's appeal on taxes declined ; Texas Supreme Court won't hear challenge
to rejection of claim. San Antonio Express-News (Texas). The Texas Supreme
Court appeared to scuttle insurance giant USAA's effort to win a $120 million
tax refund plus interest when the court declined Friday to hear an appeal of a
tax ruling against the company. USAA sued the state early in 2002, seeking the
return of taxes it said it overpaid. A state district judge later rejected the
claim, and USAA appealed to the state supreme court. Officials with the San Antonio-based
insurer were unavailable for comment Friday afternoon on the court's action. USAA's
case hinged on a 1907 provision in Texas law that said insurance companies, which
pay taxes on their gross premiums, are exempt from most other state taxes. The
law changed in 2001, requiring insurance companies to begin paying sales and use
taxes. USAA officials, however, said that the law didn't block it from pursuing
a refund. State Comptroller Carole Keeton Strayhorn fought USAA's suit, saying
the state could lose as much as $2 billion from its coffers if the company succeeded
and other insurers brought similar claims. "I am delighted with the Texas
Supreme Court's decision to deny hearing this frivolous lawsuit," Strayhorn
said in a press release. "This saves hard-working Texas taxpayers $2 billion.
As I said when this suit was filed, USAA's position was wrong on the law and showed
a callous disregard for Texas taxpayers to boot."
8/8/04
- (FLA.) INSURERS BALK OVER SINKHOLES. Jeff Harrington. The (St. Petersburg)
Times. Page N/A. This in-depth article centers on the problems that sinkholes
cause insurers and policyholders in Florida. Under Florida law, an insurer cannot
non-renew a policy because of sinkhole concerns after handling a sinkhole claim
on the property, unless it has paid out policy limits. Homeowners policies in
Florida must contain coverage for sinkholes. Some insurers are avoiding entire
neighborhoods or ZIP codes for fear of sinkholes, a practice state regulators
are investigating as possible illegal "redlining." Meanwhile, a number
of insurance companies have gone to court to argue they should pay only for structural
repair to cracked dwellings, not the more expensive costs of filling in or stabilizing
soil underneath. State Farm says it determines coverage on a case-by-case basis,
but it does screen applicants by asking whether homes have had any past sinkhole
damage. USAA briefly experimented last year with requiring homeowners in areas
near sinkholes to pay for soil tests on their property as a requirement for getting
insurance, but pulled back after Florida regulators warned that such expensive
tests could not be required as a condition for insurance.
6/26/04
- DRIVERS GETTING BREAK AS MANY INSURERS CUT RATES. Joseph Treaster. The
New York Times. Page C1. Some of the leading U.S. auto insurers, including State
Farm, USAA, and the Farmers Insurance Group, and dozens of smaller insurers have
begun reducing rates for drivers in many states. Robert Hartwig, chief economist
of the Insurance Information Institute, expects millions of drivers to see the
cost of auto insurance decline this year. Rather than granting general reductions
in premiums, many insurers, such as Allstate, Progressive and Geico, are offering
lower rates for customers with good driving records while raising premiums for
drivers who have a history of crashes or traffic tickets. Anthony Diodato, a supervisor
of analysts at A.M. Best, says that many insurers are taking a strategic approach
to rate reductions. The Insurance Information Institute expects the average cost
of auto insurance across the U.S. to increase by 3.5 percent this year, compared
with an average increase of 7.8 percent last year. Hartwig explains that it generally
takes at least a year for a general trend toward lower rates to be observed throughout
the insurance market. According to Hartwig, drivers in Florida, Massachusetts
and New York, states with relatively high rates of fraudulent claims, cannot expect
to see significant declines in the cost of auto insurance. 6/24/04
- USAA fires workers in information leak; Also, some former employees are sued
over WOAI story. San Antonio Express-News USAA CEO Bob Davis told 21,000 company
workers Wednesday morning that several existing employees at the insurance giant
were fired and some former employees sued for providing confidential information
to a local TV reporter earlier this year. The company declined to say how many
employees were terminated, but a spokeswoman characterized the number as "a
handful." Davis' remarks, made to USAA's nationwide work force, come two
months after the company filed a lawsuit against WOAI-TV, reporter Tanji Patton
and station owner Clear Channel Communications. The suit alleged that the station
improperly obtained information for a story about USAA's practice of outsourcing
information technology jobs to workers from India. USAA is now charging Patton
and the station with trying to obtain salary information on USAA employees, as
well as information on high-ranking military and government officials who have
insurance or financial services through the company.
6/12/04
- Auto insurance rates drop ; USAA lowers premiums 8.6 percent; State Farm
plans 2.2 percent cut. San Antonio Express-News (Texas). Travis E. Poling.
If you're a USAA or State Farm auto insurance customer, you could be in for a
pleasant surprise - lower rates from increased competition and better drivers.
And if you're a customer of another insurer, there is a chance that you could
pay a few bucks less in the future. San Antonio-based USAA cut premiums for Texas
drivers twice in recent months for a total reduction of 8.6 percent. And State
Farm, the largest auto insurance company in the state, has filed with the Texas
Department of Insurance to lower its auto rates by 2.2 percent beginning in August.
The rate decreases should make drivers like Paul Davila - a longtime USAA customer
- happy. Davila said lower rates are definitely in order. He hasn't heard the
news from the company, but said he has been paying too much since an accident
caused by another driver a few years ago. "If (the decrease) isn't much,
maybe I'll come back here," Davila said pointing back to the World Market
at The Forum shopping center, "and buy a couple of bottles of wine."
More companies could follow to remain competitive, industry observers said. 6/8/04
- USAA to Reduce Auto Insurance Rates by Average of 7 Percent; Fee for Extended
Billing Option Eliminated. In 2004, USAA has already reduced, or has plans
to reduce, automobile insurance rates by an average of 7 percent in almost all
states. As a result, USAA auto policyholders will save more than $900 million
in annual premiums over the next five years. USAA has approximately 3.6 million
auto policyholders in the United States, and is the country's seventh-largest
auto insurer. "USAA's mission is to provide the best products at the best
possible price for our members," said Henry Viccellio Jr., president of USAA
Property and Casualty Insurance Group. "By improving operational efficiencies
and establishing a range of insurance rates based on the individual risk, we're
able to pass on savings to members." USAA's move to lower rates bucks an
industry trend. According to an Insurance Information Institute (III) forecast
issued in March 2004, auto insurance rates are expected to increase an average
of 3.5 percent in 2004. III expects most consumers to see an increase of $29 per
vehicle, with a total average cost for auto insurance nationwide estimated at
$871 for 2004. III estimates are based on U.S. Bureau of Labor CPI data, National
Association of Insurance Commissioners data, company filings and trend projections.
6/2/04 -
TEXAS AUTO INSURANCE FIRMS MAY CURB PREMIUM RATES. Purva Patel. Houston
Chronicle. Page N/A. Some Texas drivers will see the cost of auto insurance decline
as the state’s insurers begin to reduce their rates. Progressive Insurance
lowered its premiums by approximately 2 percent in March after USAA cut rates
by an average of 4.5 percent throughout the state in February. State Farm Mutual
Automobile Insurance Company will reduce collision coverage by an average of 2.2
percent, pending approval by the Texas Department of Insurance of the company’s
new rates. The Insurance Information Institute says that the cost of auto insurance
is expected to increase by 3.5 percent in 2004, the smallest rate hike in four
years. The trend toward smaller increases is attributed to strong profits, fewer
claims, and increased enforcement efforts against fraud.
4/22/04
- INSURANCE SERVICE UNEVEN: RATES ASIDE, POLL FINDS AUTO POLICY CARRIERS VARY
IN QUALITY. Bruce Mohl. The Boston Globe. Page 1. A survey of Massachusetts
automobile insurance policyholders regarding their satisfaction with their carriers’
claims handling procedures found only a few companies rated highly. Amica Mutual,
USAA, Plymouth Rock, and Electric Insurance were rated superior by strong majorities
of their insureds, while Encompass and Firemen’s Fund, were rated superior
by less than 30 percent of their customers. The state’s largest insurer,
Commerce Insurance, was rated superior by only 46 percent of its insureds. For
all of the 18 companies in the survey, 52 percent of their customers rated them
superior on simplicity of claims procedures. The survey, done by Boston Consumers’
Checkbook, covered that organization’s 9,000 members, Massachusetts subscribers
to Consumer Reports, and other insureds.
4/22/04
- AUTO INSURERS CUT RATES -- FOR SOME. Christopher Oster. The Wall Street
Journal. Page D1. The average rates paid for auto insurance are beginning to decline
after four years of increases although not all drivers will see benefits from
the trend because of basic changes in the methods used to determine premiums.
To obtain substantial savings drivers must meet complex criteria, including a
strong credit report as well as a good driving record. State Farm Mutual Insurance
Co., the largest auto insurer in the U.S., has led the trend toward lower premiums
by reducing rates in 15 states, with drivers in Illinois and New York seeing declines
of 5.5 percent and 5 percent, respectively. USAA and Farmers have also announced
rate cuts. The reduction in auto insurance rates is attributed primarily to strong
profits reported by the nation’s insurers, which have raised rates by more
than 25 percent since 1999. The industry’s strong results also reflect a
decline in the number of auto accidents and an increase in the number of cars
per driver. Robert Hartwig, chief economist for the Insurance Information Institute,
emphasized that better drivers are going to see most of the rate reductions. Insurance
customers are expected to see a greater variety in price quotes and could save
hundreds of dollars a year by seeking quotes from eight or ten companies rather
than only three or four. The article includes a chart listing several strategies
that drivers can use to realize savings on auto insurance. 4/11/04
- PREMIUMS FOR HOMEOWNER’S INSURANCE, WHICH SOARED SKY HIGH IN RECENT
YEARS, ARE COMING BACK TO EARTH. Wayne Heilman. Colorado Springs Gazette.
Page N/A. While Colorado residents are seeing some relief from homeowners insurance
premium rises, the same cannot be said for most of the rest of the nation just
yet. State Farm and USAA, Colorado’s two largest homeowners insurers, have
announced rate increases that are under 1 percent in 2004, following double digit
increases for the previous two years. Robert Hartwig, chief economist for the
Insurance Information Institute, says that nationwide premium increases are likely
to slow, partially the result of earlier hikes that have helped insurers reduce
losses. Hartwig explains factors that contributed to these losses, including a
poor investment environment, which cut into insurers’ investment income. 3/31/04
- AUTO INSURANCE INCREASES MAY EASE. Jane Kim. The Wall Street Journal.
Page D2. Average auto insurance premiums are expected to reach $871 this year,
a 3.4 percent rise (the smallest increase in four years), compared with an 8.8
percent increase in 2002, and a 7.8 percent increase in 2003 according to the
Insurance Information Institute (I.I.I.). Robert Hartwig, chief economist at I.I.I.,
says that for the first time since 2000 major auto insurers are cutting their
rates by significant amounts. I.I.I. attributes the slowing increase to better
drivers and safer cars and crackdowns on insurance fraud, but notes that rising
medical costs are still a concern. The article notes that State Farm and USAA
are among insurers that have already announced rate cuts. A chart from the National
Association of Insurance Commissioners and I.I.I. shows average expenditures on
auto insurance 1995 to 2004 (2002-2004 estimated).
3/29/04
- USAA Names New Life Insurance Company President. Business Wire. USAA,
a diversified financial services provider, has named Kristi A. Matus president
of USAA Life Insurance Company. Matus assumed the position effective March 26
following the retirement of James M. Middleton, who was with USAA for 15 years,
including four years as president of USAA Life Insurance Company. As the new president
of USAA Life, Matus will be responsible for meeting the needs of 5 million USAA
members for quality life insurance, health insurance and annuity products and
services. She also will be responsible for USAA Life Insurance Company's $11 billion
investment portfolio. Under Middleton's four years of leadership, USAA Life Insurance
Company total assets grew nearly 29 percent and total net worth increased 37 percent.
In addition, the company earned the American Council of Life Insurers "Integrity
First" award for outstanding customer service, the Ward Group's "50
Benchmark Group" for outstanding financial results, number one ranking by
Worth magazine as the "Best Life Insurance Company," and outstanding
ratings from Moody's, S&P and A.M. Best. "Thanks to Jim's outstanding
leadership, USAA's Life Insurance Company is in a very strong position,"
said Bob Davis, chairman and CEO of USAA. "Under Kristi's leadership, our
Life Insurance Company will continue to offer the most competitive products in
the industry, along with exceptional member service."
3/9/04
- USAA REDUCES AUTO RATES. Omaha World Herald (Nebraska). USAA, a San Antonio,
Texas, insurance company for members of the U.S. military and their families,
said Monday it has reduced auto insurance rates by an average of 5.2 percent in
Nebraska and 19 other states. Henry Viccellio Jr., president of USAA's property
and casualty division, said USAA is passing on savings to its members that are
created by improved productivity and operating efficiencies. Rates for individual
members vary by recent driving history, USAA said. The reduction will save USAA's
16,000 Nebraska policyholders an average of $ 63 per year, based on an average
annual premium of about $ 1,200. USAA dropped its rates for Iowa members by about
6 percent in December.
2/23/04
- SINGLE FEDERAL INSURANCE REGULATOR? DOUBTFUL. Jeff Harrington. The (St.
Petersburg, Fla.) Times. Page N/A. USAA, the San Antonio, Texas based insurer,
is the only property and casualty insurer that writes homeowners and auto policies
in all 50 states and the District of Columbia. And the company, which is set up
to serve insurance needs of the U.S. military, their dependents and others with
family links to the armed services, is leading the charge for a single federal
charter for insurers and a national insurance regulator. But USAA executives concede
that forging a consensus for a single national regulatory and licensing system
is an uphill battle, particularly in an election year. USAA and any other insurer
that wants to make a pitch for a regulatory change of national scope need to convince
the National Association of Insurance Commissioners, a group made up of state
insurance officials who are not eager to give up their regulatory control. 12/16/03
- USAA TOPS LIST OF BEST COMPANIES TO WORK FOR IN PHOENIX. PR Newswire.
In just over two years of operations in Phoenix, USAA, a diversified financial
services company serving members of the US military and their families, has been
recognized as the "Best Company to Work for in the Valley of the Sun,"
by the Great Place To Work Institute and The Business Journal of Phoenix. "This
is a tremendous honor for our company and we are extremely proud to be recognized
amongst such a prestigious group of companies," said Bob Davis, USAA's chairman
and chief executive officer. "USAA has a noble mission enduring over 80 years.
We believe that serving the men and women of the U.S. military and their families
is a special privilege." Since opening its offices in June 2001, the USAA
Phoenix operation has grown to a workforce of about 1,700. In March 2004, USAA
will move into a new facility, named the Norterra Campus, at I-17 and Happy Valley
Road. 10/24/03
- ANOTHER CAR INSURER IN N.J. TO CUT RATES. Randy Diamond. The (Bergen
County, N.J.) Record. Page A3. United States Automobile Association, New Jersey’s
eighth largest auto insurer, has announced that it will reduce rates in the state
by an average 5 percent. The move follows State Farm Indemnity Co.’s decision
in September to cut rates by an average 4 percent. The reductions are attributed
to Gov. McGreevey’s recently-enacted auto insurance program, which requires
regulators to respond faster to insurers’ rate increase requests and allows
insurers more freedom in deciding who to cover, among other things.
6/23/03
- AGE HAS ITS REWARDS. Leonard Wiener. U.S.News & World Report. Page
32. One effect of longer life expectancy is lower life insurance premiums. New
actuarial tables, the first since 1980, show Americans living longer (a male aged
40 today is expected to live to the age of 78.4, compared with 74.1 in the old
actuarial table; a woman aged 40 today is expected to live to the age of 82, compared
with 78.3 in the old actuarial table). These changes translate into insurers charging
lower rates because they allow companies to keep less money in reserve to pay
claims. One of the first insurers to react to the new tables is USAA Life Insurance,
which has cut its new term policy premiums by from 10 to 30 percent. The article
notes that cheaper life insurance is not just the result of life expectancy. Other
factors include more competition and savvier shoppers. A Compulife Software chart
shows annual premiums for $250,000 of life insurance for a 40 year-old man and
woman in 1993, 1998 and 2003.
6/15/03
- RESPECTED INSURER NOT IMMUNE TO DIFFICULT TIMES; RUMORS THAT USAA'S NORFOLK
OFFICE WAS CLOSING WERE FALSE, BUT THE COMPANY HAS HAD TO ADJUST TO MARKET PRESSURES.
The Virginian-Pilot. TThe USAA name routinely shows up on Fortune magazine's annual
list of the most admired companies. Its bonds get top ratings from Standard &
Poor's and other credit-rating agencies. Its auto insurance is lauded by J.D.
Power & Associates, a firm that ranks companies by the quality of their goods
and services. Reputation and financial performance, however, haven't insulated
USAA from the shock waves that jolted the nation's property and casualty insurers:
the rising cost of claims and a sharp falloff in their investment income. Like
other providers of homeowners and auto insurance, USAA benefited during the 1990s
from rising stock prices, which produced a surge of investment income. With the
market's collapse, "that all went away," said Bill Putnam, a retired
rear admiral and general manager of USAA's mid-Atlantic regional office in Norfolk.
"That required companies like ourselves to take a rigorous look at revenues
and expenses," including personnel expenses and the way USAA paid claims,
Putnam said. The company responded by raising rates, closing some offices, and
becoming more selective in its underwriting of policies. The focus on greater
efficiency triggered fears among some USAA employees that the insurer might shut
its Norfolk office, which provided child care and other attractive benefits to
its work force of more than 1,000. USAA's operations in Norfolk are staying put,
said Putnam, a vice president who came to Norfolk in January from USAA's headquarters
in San Antonio, Texas. The company's financial resources, along with the loyalty
of its policyholders, have enabled USAA to weather the turbulence. However, the
company's drive to hold down costs and boost its efficiency hasn't slackened,
Putnam said. As part of its cost-cutting drive, USAA closed a smaller office in
the Washington suburb of Reston, Va., last year and brought those operations to
Norfolk. About 90 employees from the 500-person work force in Reston moved to
the Norfolk office. 5/29/03
- USAA OFFICER QUESTIONS EFFECTIVENESS OF STATE REGULATION.
BestWire
- The insurance industry engages in an "endless, pointless and brutally expensive"
debate with insurance departments over rates and forms, said an officer at USAA,
who is among those pushing for insurance companies to have the option to be federally
regulated. As companies such as his consider what's desirable about federal regulation,
Bradford Rich, executive vice president with USAA, said the worst of all possible
worlds exists with the current state regulatory system. State regulation is overly
complex, burdensome and in too many jurisdictions has caused market disruption,
an availability crisis and unwarranted subsidies by consumers, said Rich, who
is also general counsel and corporate secretary for USAA. His company provides
insurance and financial services to military personnel. He was speaking during
a debate held in Washington, D.C., on the question of whether an optional federal
charter is the future for insurance regulation.
5/29/03
- AMERICANS LIVING LONGER, ENJOYING LOWER LIFE INSURANCE RATES; USAS IS FIRST
INSURANCE COMPANY TO LOWER RATES BASED ON REVISED ACTUARIAL TABLES. PR Newswire.
USAA Life Insurance Company, a subsidiary of USAA, today announced new, lower
premiums for its term life insurance products for USAA members in 39 states and
the District of Columbia. The new rates, incorporating a decrease of 10 to 30
percent on average, are based on the life insurance industry's newly adopted actuarial
tables, which reflect an increased life expectancy for Americans. USAA Life is
the first insurer in the country to implement a lower rate schedule, as well as
a more efficient application process for term life insurance. "Because USAA
is committed to providing exceptional service, we worked to make lower-cost term
life insurance available to our members as soon as possible," said Jim Middleton,
president and CEO of USAA Life Insurance Company.
March
2003 -- WHERE COMPANIES RANK IN THEIR INDUSTRIES. No byline. Fortune. Page
89. This year's ranking of the most admired companies by industry includes two
insurance categories: property/casualty and life/health. The list of America's
ten most admired property/casualty insurance companies puts Berkshire Hathaway
in first place, American International Group in second and USAA in third. Rankings
were based on surveys of executives, directors and securities analysts.
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