Customer experience

Needham, Mass. — The insurance industry has relied upon the independent agency system as a main distribution channel for decades. However, new business concerns are threatening its success and even its existence, according to recent research from Needham, Mass.-based TowerGroup Inc.

Oakland, Calif. — Kaiser Permanente has received the "Recognizing Innovation in Multicultural Health Care Award" from the National Committee for Quality Assurance (NCQA) for its efforts to provide health plan members across the country with culturally and linguistically appropriate health care services.

Los Angeles — Annette Thompson, VP of marketing operations at the University of Farmers was awarded Learning Leader of the Year for her leadership, organizational commitment, vision and ability to deliver organizational results during the International Quality and Productivity Center Conference held at the Disney resort in Orlando, Fla.

Wellesley, Mass. — The U.S. division of Waterloo, Ontario-based Sun Life Financial Inc. has been awarded the LOMA Educational Achievement Award for the third consecutive year. Of more than 1,200 companies worldwide that were eligible for this award, Sun Life is one of only 15 to be recognized for its educational efforts. Sun Life was honored in both the global and regional (United States and Canada) categories.

Cincinnati — The Midland Co., a Cincinnati-based provider of specialty insurance products and services, today reported that it has signed a definitive merger agreement with German-based Munich Re, whereby Munich Re will acquire all of Midland's outstanding stock. Under the terms of the agreement, stockholders of Midland will receive $65 in cash per share. This represents a 13.5% premium above the Oct. 16, 2007 closing price of $57.27 and a 55% premium over Midland's share price at the start of 2007. The transaction is expected to be completed in the first half of 2008, subject to shareholder and regulatory approvals, as well as other customary closing conditions.

Chicago — The Blue Cross and Blue Shield Association (BCBSA), Chicago, and participating Blue Cross and Blue Shield (BCBS) companies joined with four U.S. physician groups, national employers and national consumer groups to examine a patient care model that places the patient and primary care practice at the center of care.

Hamilton, Bermuda — Reinsurance Holdings Ltd. announced Flagstone Underwriters Latin America Ltd. A.I. was successfully formed and licensed, and will conduct business from its offices in Puerto Rico.

Thousand Oaks, Calif. — For small-business owners who face pressure to provide their employees with affordable health insurance, one statewide provider has devised an online solution to address the situation. Blue Cross of California has released a new tool that makes it easier for small-business owners to navigate the health care arena and find the most affordable products for their employees with the launch of an online tool called Click4Biz.

Washington – Thanks in part to technology that automates the credit-verification process within 48 hours, an unlikely contender is entering the mortgage lending business. A division of Citigroup Inc. is piloting a program to offer mortgages to Washington-area residents with "limited credit histories" who "therefore often end up with high-cost or risky home loans." Setting aside $200 million for the program, the division, CitiMortgage, has partnered with Fannie Mae, Washington, D.C. and State Farm Mutual Automobile Insurance Co., Bloomington, Ill., which together agreed to buy $100 million worth of the loans. To qualify for the program, a person must be in the country legally and have alternate credit lines, such as rental payments, utility bills or a tithing record, that a lender can use to evaluate creditworthiness. Historically, gathering the paperwork to confirm these trade lines has been a laborious process that could take months, which often discouraged potential buyers and hurt their chances of closing a deal, reports The Washington Post. Neighborhood Housing Services, a sister organization of Washington, D.C.-based housing advocacy group NeighborWorks America, will use a system that automates the credit verification process and delivers results to CitiMortgage within 48 hours. The technology evaluates whatever information is available at the national credit bureaus as well as from other sources. To participate in the mortgage program, called R-Home, potential borrowers will first go through credit counseling. One of two District-based nonprofit groups, HomeFree-USA or Manna Mortgage, will work with potential borrowers, vet their qualifications and match them with a loan. If the best loan is with CitiMortgage, then CitiMortgage will fund that loan and sell it to Neighborhood Housing Services, reports the Post. The nonprofit group will then sell the loans to State Farm and Fannie Mae. Sources: The Washington Post, American Banker

New York — Switzerland-based Zurich Financial Services Group named Kevin Dunham as senior vice president and global relationship leader for the Western region of its Global Corporate in North America business unit. Dunham is based in Glendale, Calif., and will manage accounts primarily in the Southwest and Western United States."Kevin's range and depth of experience in all aspects of customer service and relationship management, specifically in this region, make him an ideal candidate for this role," says Mario Vitale, CEO of Zurich Global Corporate in North America. "His focus will be on developing and expanding relationships with our brokers and customers in order to provide them with a differentiated experience, and to deliver Zurich products and services."