BROKERS TO SET UP
GLOBAL DATA NETWORK
LONDON - The world's six biggest insurance brokers said Thursday they are setting up a global electronic information network for the industry.
World Insurance Network Ltd. will be equally owned by Alexander & Alexander Services Inc., Aon Corp., Johnson & Higgins, Marsh & McLennan Cos., Sedgwick Group PLC and Willis Corroon Group PLC.
The network will become operational in stages during 1996, in a bid for global insurance standards.
"By uniting computing and communications, it will enable the efficient exchange of information and electronic documents between industry participants, leading to an increase in productivity and enhanced client service," the companies said.
The network is open to all insurance brokers and companies.
Concert, a joint venture of British Telecommunications PLC and MCI Corp., has been chosen as the network technology partner.
HARTFORD, Conn. - An investment management subsidiary of Phoenix Home Life merged with Duff & Phelps Corp., an investment management, research and banking company.
Phoenix Duff & Phelps Corp., headquartered in Hartford, will operate out of main offices in Hartford and Chicago as well as Duff & Phelps offices in New York, Washington, Atlanta, Los Angeles, San Francisco, Cleveland and Montpelier, Vt.
Under terms of the merger, 100 percent of the capital stock of Phoenix Securities Group Inc. was converted into 26.4 million shares of Duff & Phelps Corp. common stock, which represents about 60 percent of the shares of Phoenix Duff & Phelps Corp. outstanding after the merger.
The new company will be involved in investment management, investment research, financial advisory and investment banking businesses.
TEXAS OFFICE: DON'T RAISE
HIGH-RISK DRIVERS' RATES
AUSTIN, Texas - The state's Office of Public Utility Counsel says high-risk motorists insured by the Texas Auto Insurance Plan Association shouldn't be hit with higher rates.
The insurance industry is seeking an increase of 47 percent in overall rates charged through the plan.
The association takes only drivers who have been rejected for coverage in the voluntary market, and assigns them to rate-regulated insurance companies. The insurers must charge rates set by the state insurance commissioner.
Public Counsel Rod Bordelon said, "We find that the current rates - together with allowable premium surcharges, which range from 15 percent to 100 percent depending on the driver - more than adequately cover the additional cost these drivers incur."
But Jerry Johns, president of the Southwestern Insurance Information Service, said the association was established as a market of last resort for drivers who couldn't obtain insurance elsewhere.
RHH GROUP EXPANDS
IN TRANSPORT SECTOR
CHICAGO - Rollins Hudig Hall Group Inc., the insurance brokerage and consulting arm of Aon Corp., has announced the purchase of William Frederick Prester & Co., operating under the name of Transportation Risk Management Services.
Terms were not disclosed.
TRMS specializes in providing insurance programs, risk management services, and safety products to the transportation industry. TRMS will operate as a division of RHH of Illinois Inc.
According to Bill Prester, who will be president of TRMS, the company will focus on forming long-term partnerships between motor carriers and their insurance providers through the development of customized programs designed to reduce clients' insurance costs.
WEST VIRGINIA CONTRACT
GOES TO BLUE CROSS
CHARLESTON, W.Va. - Mountain State Blue Cross-Blue Shield has won a $7.45 million contract to manage and process claims for the Public Employees Insurance Agency.
Mountain State President Greg Smith said that he had received a letter from the agency confirming the award. The agency pays about $288 million in claims annually.
The five-year contract combines processing and management. It may save the agency up to $12.5 million for at least the first two years, said agency Director Russell Brown.