UnumProvident
Encyclopedia
Unum is a Chattanooga, Tennessee
-based insurance company previously named UnumProvident, which was formed from the merger of two competing insurance companies, Unum of Portland, Maine
, and Provident Life and Accident Insurance Company of Chattanooga. It is currently the largest disability insurance
company worldwide. Unum provides employee benefits including disability insurance, critical illness insurance, long-term care insurance and life insurance
.
Current Unum Group executive officers are Thomas R. Watjen, President and Chief Executive Officer; Robert Best, Chief Operating Officer; Rick McKenney, Chief Financial Officer, and Chief Actuary; Liston Bishop III, Executive Vice President and General Counsel; Eileen Farrar, Senior Vice President Human Resources; Joseph R. Foley, Senior Vice President and Chief Marketing Officer; and Frank Williamson, Senior Vice President of Capital Management and Chief Investment Officer. Kevin P. McCarthy is President and Chief Executive Officer of Unum US. Randy Horn is President and Chief Executive Officer of Colonial Life. Jack McGarry is President and Chief Executive Officer of Unum UK.
Founded in 1887, Provident Life and Accident Insurance Company provided accident insurance for "uninsurable" workers in the sawmills and coal mines around Chattanooga. Provident went on to become a leader in individual disability insurance and "return-to-work" programs that helped disabled workers return to the workforce.
In 1997 Provident completed the acquisitions of rival insurer The Paul Revere Corporation and its subsidiaries. It also acquired GENEX Services, Inc., which provides disability case management, vocational rehabilitation and related services to corporations, third-party administrators, and insurance companies.
Unum and Provident merged in 1998, creating UnumProvident Corporation. Following a rebranding effort in 2006-2007, the company shortened its name to Unum in January 2007 and unveiled a new logo in April 2007.
(who later became Lieutenant Governor). Unum attempted to counter the accusations by noting that "only 2% of the policyholders who filed a claim with the company last year [2001] were found not to be disabled, an amount consistent with prior experience," and that court judgments in the prior year were in the company's favor 75% of the time.
In December 2004, the company and several states entered into a regulatory settlement agreement. The multistate review was completed in April 2008. In a press release, Maine Insurance Superintendent Mila Kofman said, "Not only is this an example of state insurance regulators working effectively to protect the nation's insurance consumers, it is also an example of an insurer reforming its practices and becoming a model for other insurers. The strong new processes and the resulting change in corporate culture - measured by a very low rate and in some cases a 0% error in claim determinations is remarkable."
Advising the United Kingdom government on claims since 1994, Unum has been involved with the UK's controversial Welfare Reform
Bill. Unum was investigated by the BBC in England and were described by critics as a 'rogue firm'.
In July 2010, Susan Ring, the CEO of Unum UK left her post and was replaced by Jack McGarry from Unum US.
Chattanooga, Tennessee
Chattanooga is the fourth-largest city in the US state of Tennessee , with a population of 169,887. It is the seat of Hamilton County...
-based insurance company previously named UnumProvident, which was formed from the merger of two competing insurance companies, Unum of Portland, Maine
Portland, Maine
Portland is the largest city in Maine and is the county seat of Cumberland County. The 2010 city population was 66,194, growing 3 percent since the census of 2000...
, and Provident Life and Accident Insurance Company of Chattanooga. It is currently the largest disability insurance
Disability insurance
Disability Insurance, often called DI or disability income insurance, is a form of insurance that insures the beneficiary's earned income against the risk that a disability will make working uncomfortable , painful , or impossible...
company worldwide. Unum provides employee benefits including disability insurance, critical illness insurance, long-term care insurance and life insurance
Life insurance
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...
.
Corporate
Corporate parent company Unum Group consists of three divisions: Unum US (headquartered in Chattanooga, TN), Unum UK (headquartered in Dorking, England), and Colonial Life (headquartered in Columbia, SC). Unum Group employs approximately 10,000 people and has significant operations in Chattanooga; Columbia; Dorking; Portland, Maine; Worcester, Massachusetts; and Glendale, California; and field offices in 38 major U.S. cities.Current Unum Group executive officers are Thomas R. Watjen, President and Chief Executive Officer; Robert Best, Chief Operating Officer; Rick McKenney, Chief Financial Officer, and Chief Actuary; Liston Bishop III, Executive Vice President and General Counsel; Eileen Farrar, Senior Vice President Human Resources; Joseph R. Foley, Senior Vice President and Chief Marketing Officer; and Frank Williamson, Senior Vice President of Capital Management and Chief Investment Officer. Kevin P. McCarthy is President and Chief Executive Officer of Unum US. Randy Horn is President and Chief Executive Officer of Colonial Life. Jack McGarry is President and Chief Executive Officer of Unum UK.
History
Unum’s predecessor, Union Mutual Life Insurance Company, was founded in 1848, making it one of the oldest continuously operating insurance companies in the United States. It was one of the first major U.S. mutual insurance companies to convert to public ownership, forming Unum Corporation in 1986. Unum’s strategy eventually evolved to have a clear focus on disability and special risk products. Through its subsidiaries, Unum became the leader in group disability insurance. Through its business unit, Colonial Life & Accident Insurance Company, it became a leader in voluntary insurance.Founded in 1887, Provident Life and Accident Insurance Company provided accident insurance for "uninsurable" workers in the sawmills and coal mines around Chattanooga. Provident went on to become a leader in individual disability insurance and "return-to-work" programs that helped disabled workers return to the workforce.
In 1997 Provident completed the acquisitions of rival insurer The Paul Revere Corporation and its subsidiaries. It also acquired GENEX Services, Inc., which provides disability case management, vocational rehabilitation and related services to corporations, third-party administrators, and insurance companies.
Unum and Provident merged in 1998, creating UnumProvident Corporation. Following a rebranding effort in 2006-2007, the company shortened its name to Unum in January 2007 and unveiled a new logo in April 2007.
Controversy
Unum became the focus of negative media attention in 2002, after several plaintiff's attorneys who had sued the company went to national television outlets claiming that the company had quotas for closing claims. CBS's 60 Minutes aired a very devastating article about Unum's alleged abuses. Among their accusations was a "Vulture Award" offering personal rewards to close claims. Due to its alleged unfair business practices, investigations, and fines, Unum was called an "outlaw company" by the former California Insurance Commissioner, John GaramendiJohn Garamendi
John Raymond Garamendi is the U.S. Representative for , serving since November 2009. He is a member of the Democratic Party. Garamendi was the California State Insurance Commissioner from 1991 to 1995, the U.S. Deputy Secretary of the Interior from 1995 to 1998, and the California State Insurance...
(who later became Lieutenant Governor). Unum attempted to counter the accusations by noting that "only 2% of the policyholders who filed a claim with the company last year [2001] were found not to be disabled, an amount consistent with prior experience," and that court judgments in the prior year were in the company's favor 75% of the time.
In December 2004, the company and several states entered into a regulatory settlement agreement. The multistate review was completed in April 2008. In a press release, Maine Insurance Superintendent Mila Kofman said, "Not only is this an example of state insurance regulators working effectively to protect the nation's insurance consumers, it is also an example of an insurer reforming its practices and becoming a model for other insurers. The strong new processes and the resulting change in corporate culture - measured by a very low rate and in some cases a 0% error in claim determinations is remarkable."
Advising the United Kingdom government on claims since 1994, Unum has been involved with the UK's controversial Welfare Reform
Welfare reform
Welfare reform refers to the process of reforming the framework of social security and welfare provisions, but what is considered reform is a matter of opinion. The term was used in the United States to support the Personal Responsibility and Work Opportunity Act...
Bill. Unum was investigated by the BBC in England and were described by critics as a 'rogue firm'.
In July 2010, Susan Ring, the CEO of Unum UK left her post and was replaced by Jack McGarry from Unum US.