I remember all too well when more than a decade ago Cigna encountered huge problems when it began moving its policyholders from numerous legacy claim-paying platforms to a new, unified system.
So when a group of disgruntled life-insurance policyholders demanded that it stop being mutually owned by its policyholders and sell shares on the stockmarket, it caused a big shock.
An insurance company takes in premiums upfront and pays out claims later on; it is, in effect, borrowing from its policyholders.
In fact, of the thousands upon thousands of insurance policies Allianz issued during those years, it claims that only 27 of its policyholders went unpaid and are eligible for remuneration.
A spokesman said that, unlike some of its rivals, it was giving an annual bonus to all its policyholders and that payouts remained competitive.
Just three weeks after it floated on the stock market, Standard Life admitted it has short-changed up to 10,000 of its policyholders.
It was a new offering only because it was converting from a mutual company, owned by its policyholders.
The conversion from a mutual company, which is owned by its policyholders, to one owned by shareholders will make it easier for Anthem to raise money for improvements and acquisitions.
The move follows a global trend for life insurers to abandon their mutual status -- in which a company is owned by its policyholders -- to become publicly traded companies, which can make it easier to raise money by selling shares.
January 2002: Equitable announces that its policyholders voted overwhelmingly in favour of the compromise deal.
The company will be allowed to renew about one-third of its policyholders through June 1999.
