Today’s News: Anthem Blue Cross Seeks Rate Hike, Vehicle Monitoring Raises Privacy Concerns and AIG Units for Sale Again

Posted in AIG , Health Insurance , Life Insurance , Life Insurance Companies

July 16th, 2010

Health insurance companies are seeking to once again raise rates, a vehicle monitoring system that could lower auto insurance rates raises concerns of privacy and AIG is looking to sell two more life insurance units to raise money.

Anthem Blue Cross Seeks Rate Hike

Earlier this year, Anthem Blue Cross proposed a 39 percent rate hike for its California customers, but after receiving a lot of criticism from everyone including President Barack Obama, the health insurance company temporarily suspended the increase. Now the company is proposing that the rates be increased again, but this time by 20 percent. It submitted filings on Wednesday to the state Department of Insurance and the Department of Managed Health Care and hopes to see the increase take effect for 600,000 Californians by Sept. 1 (San Francisco Chronicle).

Vehicle Monitoring Raises Privacy Concerns

Texas auto insurance company, MileMeter, has filed a lawsuit against Massachusetts-based Liberty Mutual Group Inc. for patent infringement with the use of a vehicle monitoring system that helps track cars for pay-as-you-drive (PAYD) services. MileMeter says that using a monitoring system infringes upon a customer’s right to privacy and could also result in an unfair increase in auto insurance rates. The company is the first in the United States to offer PAYD services without the use of such technology, but notes that it carries over 100 patents that include the technology it claims Liberty Mutual as taken (Market Watch).

AIG Units for Sale Again

Major life insurance provider AIG has placed two more of its units for sale in order to build income. Currently, it plans to sell two Asian life insurance units with the hopes that doing so will drum up about $5 billion for its remaining businesses. Also, the company, which is still trying to repay money it was granted to avoid bankruptcy, hopes that the money could help to reduce its deficit. So far, it has also sold its ALICO business to MetLife and hopes to retry its sale of AIA Group to Prudential PLC (Market Watch).

American International Group Inc. is putting two Asian life-insurance units back on the sales block, hoping to get roughly $5 billion for the businesses, The Wall Street Journal reported Thursday, citing unidentified people familiar with the matter.