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Earl Turns Haggard, More Storms on the Way? - While Hurricane Earl, the scariest news deadline of the previous moment, does minor damage, the rest of the hurricane season still poses risk to the U.S. coastline and the companies that insure the properties along it.
Join Our LinkedIn Group - Social media is great for us because so much can be added to a story when readers discuss it in an open forum. Exhibit A: debates on LinkedIn about our recent WorkersComp Forum stories.
This Week's WorkersComp Forum Update - Check out this week's WorkersComp Forum e-newsletter including: Attorney infiltration worse than thought; roll out the red carpet for carpel tunnel regs; and more.
California: Insurance commissioner announces grants to fight fraud - Insurance Commissioner Steve Poizner recently announced nearly $30 million in grants available to local district attorneys to find and prosecute comp fraud.
Denial letter doesn't revive expired claim for medical services - When an employer sends a denial letter after the statute of limitations for inactive matters has expired, the letter does not revive the running of a new statute of limitations.
Free fare makes pilot's ride to work compensable - An airline employee injured while traveling to or from work on a free or reduced cost flight may be acting within the course of employment.
Indiana: Carrier filings are available, will be updated - The Compensation Rating Bureau announced the new service of a rate guide report posted on the bureau's Web site.
OSHA chief concerned about training for oil spill workers - The head of OSHA is concerned that the thousands of workers taking part in the Gulf Coast oil spill recovery and cleanup operations aren't receiving the proper safety training.
OSHA seeks to revise existing safety standards - A new project by OSHA is aimed at eliminating outdated requirements and bringing existing standards into the 21st century.
Pension offset applies to maximum, not unadjusted, benefits - Workers' compensation benefits must be reduced to the statutory maximum before any pension offset is calculated.
Temp worker can't sue manufacturer for injuries - In determining whether a temporary employee is employed by an employment agency or the contracting company, Ohio courts focus on the day-to-day control of the worker rather than administrative matters.
Texas: Comp drug payments significantly higher than states in study - The cost per claim for prescription drugs used to treat injured workers in Texas was nearly 30 percent higher than in other states in a recent study.
2011 Power Broker® Application Available Now - Start applying and/or nominating now for the 2011 Power Broker® Awards. To nominate someone for the awards, or to put yourself in the running, please download the 2011 application here.
A Duty to Defend - World Trade Center cleanup pact ends decade of wrangling, but will plaintiffs hold out for federal two-in-the-bush?
A Grounded Approach to Assess Earthquake Risk - New technology can help avoid the rollercoaster of loss estimates each time a new version of an earthquake model is released.
A Hull of a Journey at Sea - The world's dwindling fleet of single-hull tankers, having plied the world's oceans for decades, faces its final chapter.
A Time to Tremble - The property/casualty insurance industry says it's prepared for a Chilean-sized earthquake in the United States. But one wonders when you look at performance in February's event in Chile.
Always Be Talking - Risk managers reveal what's really important, and how to extract what they need to execute their jobs.
Avoid Reserving Myopia - Many insurers have historically tended to take a rather narrow view of reserving. Far from being a "tick box" exercise, reserving, if done well, can draw from and inform other parts of your business and your overall strategy.
Behavioral Strategies for Disability Management Success - Dealing with possible psychological trauma and underlying behavioral issues with disability and workers' comp cases could be the key to preventing claims and getting workers back on the job.
Bobbin' on the Cloud - Two upstarts are injecting some fresh blood into a risk management information systems market that has been dominated for some time by just a few big vendors.
Broken Compensation? - It's that season again: incessant debate about how commercial insurance brokers are compensated, and why brokers should be allowed to take contingent commissions from commercial insurance underwriters.
Close Second Injury Funds - The second injury fund in workers' compensation is a once politically popular idea that turned into one of the most misshapen features of the workers' compensation system.
ERM or Audit? - Of late, I have been asked the same question repeatedly: Should the corporate audit function be part of the enterprise risk management function or does the ERM function encompass the corporate audit function?
Lessons Learned From Chile: The Risk Management Redux - Risk managers have lessons to learn about earthquake exposures out of Chile too.
Marine - Domestic oceanic shipping is under a U.S. Department of Justice investigation for antitrust violations, according to many U.S. carriers' SEC filings. Compounding the risks in this sector are puny revenues from retailers crimped by an ongoing economic slump and the difficulty in hedging currency exchange risks when so many countries regulate hedging in so many different ways. Click above to read more on this industry, or view the industry risk table to see the major players, their brokers and risk management strategies.
Marine Industry Risk Report Table 2010 - A listing of some of the nation's top marine companies, their risk managers, brokers, captives and risk management programs.
Mirror, Mirror on the Wall - Does your company's brand truly reflect your identity?
Reducing the Oil Tanker Risk - Comprehensive training and quality assurance systems are in place for the oil tanker industry. Here's a glimpse at what they are.
Roger and Out - After living and working in Bermuda for most of the past 35 years, I am being thrown out. Imagine that!
Screaming at the Green Screens - Risk management information systems, even with an expensive price tag, are not always easy to use.
Sporting a Slight Spring in their Step - Reinsurance buyers land in Monte Carlo with an upper hand in their contract negotiations with reinsurers.
Technology In-Depth Series (Part 1): Rewriting the Rules of Conduct - At long last, a new generation of risk management information systems has the end-user--the risk manager--in mind.
Terror Threat Level: 2010 - Terror threats in 2010 appear to be tending toward low-scale conventional affairs. For the year 2011, the threat could be further reduced, with the annual insured loss figure projected to drop.
Terrorism Risk Stays at Bay - Evolving threats create demand for coverage, but as the Obama administration considers scaling back Terrorism Risk Insurance Act subsidies, the future of the government-backed program may darken.
The Dashboard Revolution - To get the right risk and loss prevention data in the hands of operations managers and everyone else throughout the enterprise, provide that data with an easy, accessible technology.
The Fate of the WTC Reconstruction Project - The new World Trade Center site rises 28 stories, and occupancy is set for 2013. But will plans succeed, including other office buildings and the controversial WTC mosque.
This Week's R&I One® edition - In case you missed it, this week's R&I One®, featuring: Which insurers leaked the baseball financials?; ex-AIG chief Greenberg settles; and more.
Tossing Premium to the Wind - Insuring wind energy projects has little pricing precedent and loss history. Actuaries should just walk away.
Vive La Belle Epoque -
Wind Turbines are a Good Bet - Wind technology has come a long way and is now ready to be taken seriously by the insurance markets.
Wonders of the WorkersComp Forum - When's the last time you visited the workers' comp-dedicated section of our site?
Deal With the Chronic-Pain Dichotomy - It's no longer all right to just throw your hands in the air about drug costs and chronic pain. Not with today's pain management programs.
Will the Best Insurance Program Please Stand up - The much-ballyhooed annual college rankings from U.S. News & World Report came out, but how well do they reflect the quality of insurance and risk management undergraduate education?
'Dishonesty' about disability validates termination decision - When an employer has a valid reason for terminating an employee who has filed a workers' compensation claim, the discharge is not in retaliation.
ADAAA, EEOC Regs Will Change Analysis of Carpal Tunnel Cases - Employers may need to get used to the idea of providing accommodations for individuals with musculoskeletal injuries such as carpal tunnel syndrome.
Appeals Court Reinstates Bid-Rigging Claims - The brokerage community is concerned that the case continues to reflect poorly on all, while a legal expert said the court is hinting that a resolution is needed.
Court OKs 24-hour care for employee with brain injury - Employees have the burden of showing their current condition was caused by the work-related injury, especially when there is conflicting medical testimony.
Lawmakers introduce bill to address mine safety concerns - Democrats in the House are hoping legislation will clear the way for reforms to mine safety and health regulations.
Minnesota: Study finds no adverse employment impact from smoking bans - The passage of smoking bans in two large Minnesota cities did not have a negative economic impact on the hospitality industry, according to a study. In fact, researchers said the adoption of clean indoor air policies in Minneapolis and St. Paul may have actually contributed to higher employment.
Missouri: Referrals for workers' comp fraud, noncompliance nearly double in '10 - Referrals to Missouri's attorney general for workers' compensation violations have nearly doubled in the first half of 2010, officials announced.
Pennsylvania: Study finds comp costs, expenses grew steadily per claim - Workers' compensation costs per claim in Pennsylvania showed steady growth in costs and expenses, according to a report by the Workers Compensation Research Institute.
Smoking pot before feeding bears not prudent, but not fatal to claim - The employer's failure to present any evidence regarding the claimant's level of impairment due to marijuana usage undercuts its argument that the accident was caused by drug use.
Guzman, New and Improved - A landmark workers' compensation ruling in California has been modified.
Average comp pharmacy spending jumps 6.5 percent, report finds - The average amount spent on pharmaceuticals for injured workers increased by 6.5 percent in 2009, according to recently issued data.
California: Study reveals high level of attorney involvement in comp system - There is a high level of attorney involvement in California's workers' compensation system, according to recently published data.
Cigna targets obesity through workplace weight-loss challenge - Officials at Cigna are touting the success of a corporate wellness program that saw nearly one-third of its U.S. employees lose a collective 20,000 pounds over the course of 10 weeks.
Colorado Supreme Court discards benefits calculation rule - Benefits are not calculated based on the maximum rate in effect at the time of disablement. The maximum rate at the time of injury is based on the time of the accident.
Drug use doesn't strip workers' comp system of jurisdiction over claim - Although Arkansas law states that an accident that was "substantially occasioned by the use of drugs" is not a compensable injury, this rule does not take a case involving drug use outside the workers' compensation system. A worker cannot sue his employer in court merely because his accident involved drug use.
Minnesota: Paid workers' comp claims declined significantly since late '90s - The number of paid workers' compensation claims in Minnesota fell 38 percent relative to the number of employees from 1997 to 2008, according to a recently issued annual report from the Department of Labor and Industry.
Murky verdict nixes recovery of insurer's lien - In Indiana, a jury in a personal injury suit may hear evidence that the injured worker received workers' compensation benefits and may consider these payments in making a damages award.
Risk Taking With Budget Forecasting - In his latest Strategy column, David Wong advises how to get comfortable with what's known, and unknown, during this budgeting season. Read his article here.
Waiting on Surgical Relief From Back Pain - After a visit to the nth doctor, a neurosurgeon recommends surgery for a waitress's work-related back injury. Is the surgery compensable?
Katrina Left Physical Mark, not Business Continuity - Hurricane Katrina, like other massive catastrophes before it, failed to impress upon organizations the need to properly prepare for business interruption.
Colorado: Lawmakers urge feds to process nuclear WC benefits - A coalition of Colorado lawmakers is urging the federal government to eliminate barriers to workers' compensation benefits for nuclear facility employees.
Employers Tighten Belt on Wellness Programs - More companies are closely evaluating the effectiveness of their wellness programs and are focusing on lower-cost options.
Execs say health, safety programs offer competitive advantages - Employers that implement effective health and safety programs gain a significant competitive advantage in today's marketplace, according to a panel of experts.
First employer on hook for later surgery costs - An employer may be required to reimburse another employer for a workers' compensation claim when there is one injury with later complications.
Forecast Says 50 Degrees for Next Year: Part I - We explore techniques for getting enterprises comfortable with key variables that are uncertain and uncontrollable when it comes to budget forecasting.
Health, high work pressure play role in early retirement, study finds - Poor health is the most important reason why employees decide to take early retirement. However, according to a recent study, factors such as high work pressure and low job satisfaction also play a role.
Hot Summer for Benefits Brokers - Commercial insurance brokers snap up benefits firms to position themselves for coming changes in healthcare insurance.
Income boost sinks bid for permanent disability benefits - A claimant can rebut the presumption of no loss of wage-earning capacity when his postinjury earnings are higher than his preinjury earnings.
Independent BP Spill Fund Begins Operations - With the launch of the Gulf Coast Claims Facility, Crawford is in, Worley remains on the job, while Philadelphia-based ESIS is no longer on the account.
Modest Improvement in Individuals' Health Risks Could Save Billions - A 25 percent improvement in the health risks of Americans would yield savings of up to $945 billion over the next 10 years, according to a report.
New York: WC board publishes proposed treatment regs - The New York State Workers' Compensation Board published proposed regulations that would make the state's revised medical treatment guidelines mandatory for providers, employers, and insurance carriers in the workers' comp system.
Receptionist fails to prove injury occurred at work - Claimants in South Carolina must prove that their injuries were work-related. If they do not, their workers' compensation claim will be denied.
The Latest TPA Directory - Download our latest TPA directory (featured in our current issue). Access all of our other vendor directories here as well.
Truck driver injured while off route gets benefits - For workers' compensation cases, Arkansas courts recognize "the protection of an employer's property as a legitimate duty of an employee."
West Virginia: Officials launch volunteer fire department WC group - West Virginia officials recently formed a panel of experts to examine growing concerns about providing workers' compensation coverage to the state's 400 volunteer fire departments.
Why the Jury Is (Still) Out - What lessons does the Blagojevich trial hold for risk managers staring down a case that's gone to a civil jury?
Allegations of misdiagnosis, latent disability do not stop clock - In Mississippi, if no payment for compensation is made other than medical treatment or burial expenses, and the employee or her representative doesn't apply for benefits with the Workers' Compensation Commission within two years from the date of injury or death, the right to compensation is barred.
Brawl yields WC despite assertion that claimant was aggressor - Under Louisiana law, if an employer establishes that the injured worker was the initial aggressor in an unprovoked physical altercation, no compensation is payable unless excessive force was used in retaliation against the initial aggressor.
Breaking With Coming and Going Rule? - Is a car accident while transporting equipment to the jobsite compensable under the coming and going rule? You be the judge in this classic case.
California: Study shows temporary disability outcomes are improving - Temporary disability outcomes in California's workers' compensation system have continued to improve since the state enacted comprehensive legislative reforms in 2004.
Florida court trims lawn care services from award - Without evidence establishing a medical need for a yard to remain well-maintained or a medical consequence if the yard was not maintained, the claimant is not entitled to lawn care services as a workers' compensation benefit.
Injury during preemployment test doesn't entitle applicant to WC - If a claimant is injured while taking a required test before actually being hired, she is not entitled to workers' compensation benefits even if the employer ends up hiring her.
Loss Control Takes on the World - Our Loss Control columnist, Steve Hernandez of Chubb, lists the top five risks for SMBs doing business on the global stage.
OSHA, NIOSH to cooperate in updating permissible exposure limits - Officials from the leading workplace health and safety agencies recently pledged cooperation to update hazardous exposure limits and bolster other protections for employees.
Ohio: Board sets public employer rate-making guidelines - The Ohio Bureau of Workers' Compensation's board of directors recently modified two tables that impact experience-based rate adjustments for public employers.
Severe violator enforcement program takes effect, OSHA announces - A new program aimed at cracking down on repeat safety violators has gone into effect, according to OSHA.
Speculative link between mold, carpenter's death topples claim - Where the evidence establishes that the decedent's death was caused by a common mold found in most places and there is no definitive evidence of exactly when and where the mold entered the decedent's body, a connection to the workplace is purely speculative.
Top Five Risks for Small Global Players - Small and midsize companies are active in the global economy too, and they are just at risk for these five exposures as multinationals.
Why Is Hospital Care So Expensive? - Workers' compensation insurers grouse about all sorts of medical cost inflation, but they reserve their hottest ire for hospitals.
The Goldman Gag - The venerable bank moves to ban profanity from company e-mails. But implementation could create a rat's nest of risk.
'Big Five' Insurance Brokers Deliver Profits - Despite continuing price declines, the nation's largest commercial insurance brokers scratch out gains--some just barely--in the second quarter.
Accommodation request isn't reasonable when it violates CBA - An employee's request to be placed in a job she has not proven she can perform is not reasonable. If an accommodation request creates an undue hardship for the employer, such as where it would violate the contractual rights of other employees, the employer does not violate disability discrimination laws by denying it.
California: State Compensation Insurance Fund officials challenge mandatory furloughs as inapplicable - Employees of California's largest provider of workers' compensation insurance should not have been subject to state-ordered furloughs, according to a recent ruling.
Capacity to work, not actual earnings, bolster fraud conviction for bar owner - A workers' compensation recipient's false representations that he could not work or his failure to disclose that he was capable of working are sufficient to support a fraud conviction under Massachusetts law.
Michigan: Drug costs low due to fewer prescriptions, pharmacy prices - A Workers Compensation Research Institute report found that the cost per claim of prescription drugs used to treat injured workers in Michigan was the lowest among the 16 states studied.
Missouri: Labor Department concerned about increase in stress - Officials from the Missouri Department of Labor recently hosted a series of educational seminars to raise awareness about a growing problem -- work-related stress.
Periodic Breaks Essential in Establishing Healthy Work Environment - A majority of employees are choosing to work straight through the day without taking a break, according to a survey. Researchers said that while these individuals may score bonus points with their employers, they are also placing themselves at serious risk of injury and other health-related problems.
Personal nature of clash unravels family's claim for death benefits - Wyoming law excludes from the definition of "injury" any injury that occurs while the employee is engaged in recreational or social events that he is not required to attend and any injury that does not result from his normal job duties or special task.
Property/casualty returns to profitability despite decline in premiums - The property/casualty industry returned to profitability in 2010 despite continuing declines in written and earned premiums.
Tattoo artist's ability to come and go negates employee status - A claimant seeking benefits under the Virginia WCA has the burden of establishing that he is an employee as that term is defined by statute.
Unreasonable delay in paying disability benefits opens door for additional fees - Under New Jersey law, an award of attorney's fees is not severable from the 25 percent penalty for an unreasonable or negligent delay or refusal to pay temporary disability benefits. Therefore, when a judge awards the statutory penalty, he must also award reasonable attorney's fees.
Captive Industry Not Blinking at Economic Double-Whammy - Captive insurance issuances at the No. 1 domicile in the United States surge past the 900 mark, as use for the financial vehicles gets more diverse, sophisticated.
Long-term Blues for Three States - Arizona, West Virginia and Tennessee, according to an Aon study, are having a bear of a time managing their long-term healthcare loss costs.
Failure to link PTSD to single stressful event derails teacher's claim - In Louisiana, mental injuries resulting from work-related stress are not compensable unless they are caused by a sudden, unexpected and extraordinary event.
Groups cooperate to raise awareness of workers' comp issues - The International Association of Industrial Accident Boards and Commissions and the American College of Occupational and Environmental Medicine will raise awareness of issues in workers' comp that are diminishing the quality of medical care for injured workers and negatively impacting employers.
Labor chiefs support employee misclassification legislation - The heads of state labor agencies support proposed federal legislation that would crack down on employers who misclassify their employees to avoid paying workers' compensation and other taxes.
Medical evaluator's call to defense attorney results in removal from case - California law expressly prohibits ex parte communications between a panel-qualified medical evaluator and a party. When a prohibited communication occurs, the aggrieved party is entitled to a new evaluation from another panel-qualified medical evaluator, and the party that violated the law may be liable for costs.
Minnesota: Department looks at medical services and fees - The Minnesota Department of Labor and Industry is considering amending its rules governing workers' compensation medical services and fees, penalties, and certified managed care.
Disability for OD? - Is treatment related to an overdose on prescribed medications compensable? You be the judge in this classic case.
Judge Finds in Favor of Native American Risk Pool - Court awards $304,000 to Amerind against Brown & Brown. Is broker guilty of a quick "in-and-out," or was demand too weak for risk pool's TEIP program?
The Encryption Conniption (updated) - Insurers show a large appetite for underwriting network security risk, even as more and more lapses happen.
Arizona: Judge rules against state in use of workers' comp funds - Arizona lawmakers violated the law by taking money from the workers' compensation fund to shore up a budget shortfall, according to a recent ruling.
Company's control of itinerary, route make truck driver employee - The Mississippi Workers' Compensation Act limits awards of benefits to workers who are employees, specifically excluding independent contractors. Regardless of contractual status, if the company fully controls the details of the work, the worker is an employee.
Functional Capacity Evaluation Technology Evolves to Fight Fraud - Functional capacity evaluations have long been used by employers and insurers to determine the severity of an individual's injuries, assign a disability rating, and develop restrictions to ensure an injured employee's speedy return to the workplace. However, one expert said new technology may take the process even further and help root out a persistent problem in workers' compensation -- fraud.
Maryland: Comp commission takes next step for settlement agreement guidelines - The Workers' Compensation Commission has proposed legislation to establish guidelines for reviewing and approving proposed workers' compensation settlement agreements in compliance with the review thresholds established by the Centers for Medicare and Medicaid Services.
New York: World Trade Center rescue workers reach $712.5 million settlement with city - Attorneys for more than 10,000 workers who were injured or fell ill during rescue and recovery operations at the World Trade Center have reached a settlement with the City of New York and its captive insurance company.
Subordinate's assault on supervisor falls within workers' comp arena - The WCA provides the exclusive remedy for most workplace assaults, except where the employer "has committed, commanded, or expressly authorized an assault against an employee."
Test removes fraud investigators from scenario - Workers' comp insurers that suspect an employee may be committing fraud often hire a private investigator. Dr. Bradley A. Marcus, head of the Medical Rehabilitation & Kinematics Lab in San Diego, said this option can be very expensive, time consuming, and not achieve the desired outcome.
Washington state: Group collects signatures for vote on workers' comp reform - Voters in Washington state may be heading to the polls in November to decide the fate of a proposed measure to reform the state's workers' compensation system.
Responsibly Modest (updated) - Liberty Mutual takes some catastrophe hits and suffers in the commercial insurance space with everyone else, but still pulls off a modest earnings report victory.
Injury that occurs between smoking area, workstation merits workers' compensation - In Oklahoma, when a worker suffers an injury at work walking from an employer-designated smoking area to her workstation, that injury is within the scope of employment and the worker may recover benefits.
Late challenge to timeliness of petition allows claimant to proceed - In order to use the statute of limitations to bar a petition for benefits, the employer must advance the defense in its initial response.
Minding Dementia's Impact on Workers' Comp - In California, the NFL's dementia-related workers' compensation case is quickly unfolding, and it is one for all employers to watch.
Pain causing loss of earnings entitles claimant to benefits - A work-related aggravation of a nonwork-related preexisting condition is an "injury" within the meaning of the Pennsylvania Workers' Compensation Act.
Respiratory diseases in manufacturing must be addressed, researchers say - According to the National Institute for Occupational Safety and Health, respiratory diseases represent a serious threat to the health of manufacturing employees.
Survey finds risk management is low priority among small business owners - Risk management ranks relatively low among the priorities facing small business owners, and nearly half of small businesses are operating without a business continuity plan, according to a survey.
The Case of the Disabled Lingerie Salesman - Do a laborer's efforts to peddle purses on the side amount to fraud and cost him his disability payments?
What's Driving Employee Benefits - Preliminary survey results from Prudential indicate companies will continue to push for a larger employee share of the healthcare cost burden. The era of paternalism is over.
Bedbugs 'R' Us - Bedbugs were once the worry of hospitality risk managers. Now a spate of attacks in New York City have retailers flustered and fumigating.
Innovation in the Heart of Dixie - Alabama becomes the first U.S. state to transfer its catastrophe risk with parametric insurance.
Q2 Earnings: Net Income up at CNA, Down at Chubb, Travelers - Catastrophe losses slice into the profits at major P/C insurance companies.
ADA earns 'A' for accessibility - Experts, including industry vet Richard Pimentel, reflect on the 20th anniversary of the ADA and agree that more work is needed in the employment arena.
City skirts suit through return-to-work efforts, accommodation - An employer does not engage in illegal discrimination when it makes reasonable efforts to find an employee an alternative position because his current position endangers his health.
Failure to report subsequent injury doesn't amount to fraud - The panel found there was insufficient evidence to establish that the employee knowingly made false statements or representations for the purpose of influencing his workers' compensation claim.
Idaho: Settlement keeps orthopedists from conspiring to raise fees, deny care - The Department of Justice recently reached a settlement with the Idaho Orthopaedic Society and five orthopedists who allegedly conspired to gain more favorable fees and other contractual terms by agreeing to coordinate their actions.
Long Shifts Leave Nurses at High Risk of Health Problems, Study Finds - The common practice of successive 12-hour shifts for hospital nurses leaves many with serious sleep deprivation, a higher risk of health problems and higher odds of making patient errors, according to a study.
Louisiana court supersizes bus driver's benefits by including part-time wages - When there is ambiguity in the law, courts typically interpret it in favor of the party the law was designed to protect.
Massachusetts: Workers' comp prescription drug costs per claim lower than most states - The cost for prescription drugs used in the Massachusetts workers' compensation system is significantly lower than in many states, according to a study.
Ohio: Legislation to bar illegals from collecting comp clears Senate - The Ohio Senate approves a bill aimed at preventing illegal immigrants from collecting workers' compensation benefits.
Without express statutory provision, the Texas Office of Risk Management is off the hook for fees - A state agency's liability under the Texas Labor Code is limited to those damages authorized by the Texas Tort Claims Act.
2010 Teddy Awards: Last Day to Apply - It's here. The application/nomination form for the 2010 Teddy Awards, the premier recognition for workers' comp and disability management professionals.
A Federal Regulator Will Have to Wait - Despite progress in the Dodd-Frank Wall Street Reform Act, the reinsurance industry will not come under the scrutiny of a federal regulator for now.
An Industry's Baggage Unzipped - Occupational Safety and Health Administration data reveals a disparity in lost-time injury rates among airline companies and airports.
Aviation / Aerospace -
Aviation Industry Risk Report Table 2010 - A listing of some of the nation's top aviation companies, their risk managers, brokers, captives and risk management programs.
Bullet Proofing Your A-Team - Will directors go belly up with failing firms? How risk managers can bullet-proof their Side-A D&O coverage.
Cutting Costs in Exchange for Future Liabilities? -
D&O Market Reports - Want to know what are the latest issues affecting the directors' and officers' liability insurance market? Check out these reports from leading carriers and brokers.
Fighting for Control Over the Old Dollar Bill - Insurance carriers favor direct billing over agency billing as they chase every last drop of premium in a soft market, while agents have no incentive to manage the float with interest rates at record lows.
Governance Vs. Management - Consider these words spoken by a former CEO regarding the role of board of directors: "The responsibility of our board--a responsibility which I expect them to fulfill--is to ensure legal and ethical conduct by the company and everyone in the company."
Index of the 2010 Reinsurance Power Broker® Winners - An alphabetical list of this year's Reinsurance Power Broker® winners.
One Size Does Not Fit All - In the workers' compensation proposal process, improving communication and collaboration through smart use of networking technologies is essential to match buyers to the best markets.
Opinion Not Amused - Haunted by the sight of his fellow Americans, a man ponders the value of soda taxes, or at least more clothing.
Optimism Misplaced Yet Again - I had keenly anticipated this year's World Cup finals for more than two years. You may imagine my excitement, therefore, as the tournament finally began--and my disappointment when it became clear that the games would be unwatchable on my television set.
Passing Thoughts of Passenger 32A - A passenger in seat 32A in an air-conditioned airplane cabin pauses to dwell on his fellow men and women lugging heavy bags and pushing awkward drink carts in the baggage hold and cabin of Flight 982.
Planning for Those Disasters - In the last few months, we have been hearing more and more about cyberterrorism and the growing number of attacks on our nation's information technology infrastructure.
Property's a Pleasure - Property insurance underwriters await the big event, or events, that will turn the market. In the meantime, risk managers are getting what they need, and even what they want, at renewal in 2010.
Reinsurance: Analytics-Capital Markets -
Reinsurance: Casualty -
Reinsurance: Facultative -
Reinsurance: Property -
Reinsurance: Will Prices Be Right in 2010? - Record first quarter catastrophe losses could bring price hardening, but so far the primary carriers hold all the cards.
Risking the Consequences of Neglect - Risk and the tough economy: How the public sector and taxpayers are paying the price for budget cuts and the increase in risk.
Seven Ways Supervisors Scupper Workers' Comp - Supervisors are the employers' front line when dealing with workplace injuries, transitional duty and safety. And they are often the first ones to make the following seven workers' comp management mistakes.
Soft Markets: May They Last - This soft market has resulted in a more engaged, creative insurance transaction at a lower price. For buyers, that is a good thing.
The Makings of a Bipartisan - For many attendees at the annual conference of the Vermont Captive Insurance Association, it will be their first crack at meeting VCIA President Richard Smith.
The Mysterious Capacity Shedder - A major carrier moves to shed capacity at the beginning of the year, only to do an about-face and renew programs at lower rates.
The Skewing of Risk - I recently came upon a trove of injury data that leads me to think in a new way about worksite safety programs.
Training for Disasters to Avoid Trial and Error in the Field - A municipal leader provides insight into how he gained valuable emergency preparedness training, and where his peers in public service and the corporate world can do the same.
Warmed-Over Insurance - With the great debate swirling over the legitimacy of global warming theories, the value proposition for green insurance becomes part of the debate.
What Has This President Done for You Lately? - It's been a whirlwind first year for Vermont Captive Insurance Association President Richard Smith.
Reinsurance Power Broker® Winners - The winners of our 2010 Reinsurance Power Broker® contest have been announced.
Risk Management in Disarray - Washington D.C.'s Office of Risk Management is getting a scrubbing.
Claimant's attempt to obtain replacement massage chair falls flat - The fact that a treating doctor previously authorized the claimant to receive a massage chair does not necessarily mean the claimant will automatically receive a replacement chair.
Free living quarters offered as employment perk are wages - In South Carolina, a worker's AWW includes the actual pay he receives as well as "allowances of any character when they are a specified part of his employment contract."
Link in to the Latest Risk Debate - Join the Risk & Insurance® group on LinkedIn if you haven't already. There, you'll find valuable debate on our most popular articles.
Massachusetts: Department cancels missed appointment fees - The Department of Industrial Accidents will no longer impose a missed appointment fee for impartial workers' compensation medical examinations that are canceled more than 48 hours in advance of the scheduled date.
Medic must settle for eight weeks of temporary disability for soft tissue injury - Under Oklahoma law, if an employee sustains an injury to the cervical spine but does not undergo corrective surgery, her benefits are limited to eight weeks of temporary total disability compensation.
New York: Insurance officials debate proposed comp loss cost increase - The New York Compensation Insurance Rating Board is seeking a 7.7 percent increase in workers' compensation loss costs. If approved, the rate change would go into effect Oct. 1.
Rhode Island: Commission's findings lead to employee classification law - The Rhode Island Senate is hoping that recently approved legislation will crack down on the misclassification of employees, which officials estimate cost the state at least $12 million last year in lost workers' compensation premiums and other taxes.
Senate committee OKs grants to states for cell phone laws - The Senate Committee on Commerce, Science and Transportation approved legislation to offer financial aid to states that enact laws to combat distracted driving.
Washington state: Comp officials launch fraud-fighting blog - The Washington State Department of Labor and Industries recently launched a blog to highlight its work in combating workers' compensation and contractor fraud.
E-Commerce: What Will It Take? - The workers' comp industry is way behind healthcare when it comes to electronic transactions, perhaps missing out on $900 million in "found money."
Filling the Vacancy Vacuum - Empty buildings mean opportunity for a new class of hybrid insurance product.
California: WC medical expense payments surge to pre-reform levels - Workers' compensation medical expense payments in California have jumped significantly in recent years after a brief downturn following the enactment of comprehensive reforms in 2004.
Cost of Benefits of High-Risk Claims Jump After Workforce Reduction - The economic recession has led many employers to trim payroll in an effort to stay afloat. However, layoffs can have negative consequences for a company's health care and workers' compensation costs.
Duplicate billing a problem, OCI says - In a previous study, researchers from OCI found that more than 4 percent of all workers' compensation claims have a duplicate bill sent to a group health plan.
Failure to submit to independent medical exam justifies suspension of benefit payments - In Massachusetts, an employee who refuses to submit to an IME or in any way obstructs it may have his compensation suspended.
Issues collateral to WC claims fall under commission's jurisdiction - The North Carolina Industrial Commission has exclusive jurisdiction over workers' compensation claims and all ancillary matters.
Kansas: Officials tout 10 percent drop in injuries, decline in lost workdays - Workplaces in Kansas are getting safer according to a recent survey that found that nonfatal accidents in private industries dropped nearly 10 percent from 2007 to 2008. The report, produced by the Kansas Department of Labor in cooperation with the U.S. Bureau of Labor Statistics, also found a 6 percent drop in the number of accidents resulting in days away from work over the same time period.
D&O Coverage Affected by Supreme's Decision - The high court's decision on the Enron-Skilling case could impact how D&O insurers handle claims.
Futures as Risk Management Models: Part 2 - Learn from futures markets and foster efficiency and safe, fair and reliable risk management systems.
Portraits of Four Workers' Comp Experts - We spotlight some of the rising stars in the workers' comp world, in what will become a semi-regular quest to give recognition where recognition is due.
Vermont Licenses 17 New Captives - The leading U.S. domicile sees interest in captive formation in 2010 from the construction and financial services sectors, as well as from hospitals.
ACOEM releases guidelines for care of hip, groin injuries - The American College of Occupational and Environmental Medicine published new medical treatment guidelines for providing care to workers with injuries and disorders of the hip and groin. The guidance is the latest chapter in ACOEM's comprehensive Occupational Medicine Practice Guidelines.
Causation finding in workers' comp case has no impact on third-party suit - While workers' compensation adjudications may be given preclusive effect in some instances, the Utah Supreme Court declined to allow the third-party defendants to use the workers' compensation finding on the issue of causation to block the employee from relitigating that issue in her personal injury suit.
Professional drivers at risk of skin cancer from sun exposure - While professional drivers are faced with a variety of safety risks from vehicle accidents to back strain, many don't consider the effects of prolonged sun exposure while on the road.
Termination linked to advocating for injured workers doesn't violate policy - In Iowa, there is no public policy that protects from termination an at-will employee who advocates internally for the workers' compensation claim of a fellow employee.
Ex-N.Y. Commissioner Fears New Federal Insurance Intrusion - The insurance industry's effort at distancing itself from banks could pay off when it comes to Dodd-Frank, yet finance reform could lead to increased information-gathering requirements and other impacts.
DNA Testing: A Twist to University Risk Management (Updated) - New class assignments involving genetics could expose universities to privacy concerns, unintended actions over misreading of tests and accusations of coercion.
The 411 on Injury Reporting Delays - A new You Be The Judge: Does ignorance of a possible disability excuse a police officer's late notice?
Altering the Balance - Aon plunges further into the benefits administration outsourcing space with the purchase of Hewitt Associates Inc., reduces its dependence on brokering revenues.
Follow Us on Twitter - Risk & Insurance® is on and active at Twitter, making the social media site a great spot to stay updated on new content. Check us out at twitter.com/RiskInsurance
Group Says Most Back, Neck Problems Can Be Resolved Without Surgery - Back and neck pain are two of the most common musculoskeletal issues experience by employees in the United States. However, according to one expert, these conditions don't necessarily need to lead to costly surgery.
Impact of air quality on ability to return to work must be clarified - Once an employee presents sufficient evidence to trigger the presumption of compensability, the employer can rebut that presumption only by presenting evidence that is "specific and comprehensive enough to sever" the connection between the disability and the work-related event.
Maine: Officials approve largest reduction in workers' comp assessment since '93 - Officials in Maine recently approved the largest reduction in the workers' compensation assessment to employers since 1993.
Obesity linked to compensable injuries clears path for gastric bypass surgery - Where the claimant's substantial weight gain is attributed to a sedentary lifestyle linked to his compensable injuries, and the medical evidence establishes that the claimant's pain was exacerbated by his obesity, he may be entitled to reimbursement for gastric bypass surgery.
South Carolina: Officials approve decrease in comp loss costs by 9.8 percent - Employers in South Carolina will likely see their workers' compensation costs drop in the coming year under a measure approved by the Department of Insurance.
Wholesale Brokers on Fire (Updated) - New entrants and mergers point to fluidity and confidence in wholesale insurance brokerage.
Worker injured while supervising third party's construction project can sue - The Minnesota Workers' Compensation Act prohibits workers from obtaining benefits from their employers and initiating lawsuits against third parties for workplace injuries. However, the law does not prevent such suits when the worker is not working on the same project or performing the same work as the third party.
Tootsie's patron sues for $1.5 million, saying he was injured by employees(Nashville Business Journal) - A legendary Nashville honky tonk faces charges stemming from an incident in early June.
Novartis Reaches $152.5 million Sex-Bias Settlement (Bloomberg) - Allegations were that the company paid women less than it paid men.
Consulting Waves - Aon and Hewitt merge at a time when the benefits outsourcing space is heating up dramatically.
Consulting Waves - Aon and Hewitt merge at a time when the benefits outsourcing space is heating up dramatically.
Study: Pharmacy Costs in Workers' Comp Jump 6.5 Percent in 2009 - Average wholesale drug price increases and higher drug utilization rates fuel the pharmacy cost increase.
CMS memo clarifies prescription drug requirements for Medicare set-asides - The Centers for Medicare & Medicaid Services recently issued guidance to clarify prescription drug requirements pertaining to workers' compensation Medicare set-asides.
Death Benefits for a Berry Aneurysm? - Did a foreman's death arise out of his hurricane-related employment? You be the judge in this classic workers' comp case.
Employer's ability to reopen settled claim thwarted by time limit - While a settlement agreement may provide the employer a right to reopen the claim if the employee returns to work at the same or greater wages, that right is subject to the applicable four-year limitation period.
Finding the True Disconnect (Updated) - In the eyes of risk managers, there is a distinction between privately held and publicly traded commercial insurance brokers.
Long hours increase employees' risk of heart-related problems - Employees who work extended hours and overtime are at a greater risk of suffering from heart-related problems, according to a study.
Unvested nature of benefits opens door for new wage calculation - The value of an employee's health care benefits should not be included in the average weekly wage calculation unless the benefits have vested and have a real present-day value to the employee at the time of the injury.
WorkersComp Forum Update: July 15, 2010 -
Analysts Warn of Troubling Bank Loans in China (New York Times) - Billions in loans in China may be just as murky as those made in the U.S. in recent years, an analyst warns.
DAVID Corporation's NavRisk Software Solutions - DAVID Corporation's NavRisk software solutions automate processes on many levels for client IPMG
Finding the True Disconnect - In the eyes of risk managers there is a distinction between privately-held and publicly-traded commercial insurance brokers.
Insuring for Phanataphobia - The Phillie Phanatic gets sued by a fan in the stands but the Philadelphia Phillies aren't the only team that has to worry about the liability of their mascot.
The Coming Knowledge Gap - Educators urge the insurance industry to prepare for the loss of the baby boomers.
California: Injured workers satisfied with medical care, study finds - The majority of injured workers in California are pleased with their access to medical care, according to a study by the University of Washington in Seattle. Researchers found that four out of five injured employees reported being satisfied with their care, a level that has remained unchanged since a similar study was conducted in 2006.
Employer's efforts to blame accident on unique coughing condition fall short - Under Missouri law, an injury arises out of and in the course of employment if the accident is the prevailing factor in causing the injury, and the injury does not result from a hazard or risk unrelated to the employment.
Employers should refrain from cutting back on safety, ASSE warns - Businesses must continue to focus on workplace health and safety efforts despite the economic hardships they might be facing, according to the American Society of Safety Engineers.
Layoff Fears May Bring Injured Employees Back to Work Early - Many injured employees are speeding up their return to work because they are concerned about their job security, according to a recent study on the economic recession's impact on workers' compensation.
Maryland: Workers' comp medical costs per claim among lowest of states in study - Workers' compensation costs per claim for medical care of injured workers in Maryland were among the lowest of 16 states in a study. Researchers concluded that this was due in part to a lower fee schedule.
Oregon: Division releases new attorney's fees matrix - The Oregon Workers' Compensation Division recently published the new attorney's fees matrix under OAR 436-001-0410(1)(d) for attorney's fees awarded under ORS 656.385(1).
Undocumented status has no bearing on eligibility for LHWCA benefits - A violation of the Immigration Reform and Control Act of 1986 does not prevent an employee from obtaining benefits under the Longshore and Harbor Workers' Compensation Act.
Organic Chemistry at Insurance Broker Integro - Integro grows organically, but there's always room for a little help from M&A.
Colorado: Insurers must inform workers of claims process - Insurers are required by legislation to provide a brochure to injured workers at the time of an admission or denial.
Comp disability finding doesn't prove disability under ADA - A state workers' compensation judge's finding that an employee sustained a physical disability does not automatically bar an employer from challenging the employee's subsequent disability lawsuit under the Americans with Disabilities Act.
Create culture of safety through training - A lack of health and safety training is a significant driver of injuries among young employees.
Florida: Comp rates to decline by more than 4 percent, officials say - Employers in Florida will see their workers' compensation rates drop again in July under a recent filing by the National Council on Compensation Insurance.
Illinois: WC board defines fee schedule for geozip 607 - Illinois ambulatory surgical treatment centers in geozip 607 now have their own fee schedule.
Massachusetts Healthcare Reform Costs Revealed - Researchers point to cost increases in Massachusetts healthcare insurance premiums, and wonder if similarities are in store for national healthcare reform.
Massachusetts: Attorney general nixes insurers' request for increase - Workers' compensation rates in Massachusetts will decline by 2.4 percent later this year despite pleas from insurers for an increase.
NIOSH: Injury Rate Among Young Workers Significantly Higher - Teens can play a valuable role at a company, but health and safety experts urge employers to prevent injuries among this group.
OSHA releases data on exposure to toxic chemicals - OSHA is releasing 15 years of data detailing workplace exposure to toxic chemicals.
Strong connection with WC law sends case back to state court - Where a worker sues his employer, claiming he was wrongfully terminated in retaliation for filing a workers' compensation claim, that lawsuit is so intertwined with workers' compensation law that a state court must hear it.
HIV From Needlestick or Not? - Does an old needlestick injury entitle a nursing assistant to workers' comp? You be the judge in this classic comp case.
Turning the Claims Double Play - A special meeting held before major legal claims events brings together the right mix of people to deliver the results on some of your trickiest workers' comp claims.
Federalize Workers' Comp for Occupational Diseases - In his July Web-exclusive column, Peter Rousmaniere doesn't mince words: the workers' comp system doesn't work for occupational diseases. And it won't work in the present case of the BP oil spill clean-up.
Mercer: A New Source of Cash for Strapped Municipalities? - In the wake of a litigation settlement with Alaska pension funds, other municipalities with underfunded plans may find Mercer difficult to resist.
Previewing the Q2 Earnings Season - Insurance carrier earnings have held up despite persistent economic headwinds. But will the second quarter turn out to be when the insurers' numbers go south?
Answering Your Claims Questions - Two insurance claims veterans talk about top pressing issues on the industry, the latest claims technology, how the recession is, and is not, impacting their business, and more.
Business Interruption Lessons From Katrina for the Gulf Oil Spill - The BP oil spill disaster will result in plenty of business interruption insurance claims being filed in the Gulf. Should those claims go to court--and many do--here are lessons for policyholders learned in Hurricane Katrina loss.
California Comp Under the Pendulum - Workers' comp reform in California has come undone. So the private sector moves to pick up the pieces while the litigators litigate.
California: Provider networks cause spike in medical services - The percentage of medical services to injured workers delivered by network physicians in California jumped sharply after medical provider networks were introduced into the workers' compensation system in 2005.
Certifying Risk Management's Significance - There has never been a greater demand for risk manager jobs--but positioning yourself to earn a position in this race has never been more difficult. Hence a greater need for risk training and certification.
Deadline Today: 2010 Risk InnovatorTM Application - An award program for innovation and excellence in risk management, the Risk InnovatorTM Award is well under way for 2010. The deadline to apply is today, July 20.
Failure to reasonably investigate claim might prove costly - In order to receive penalty benefits in Iowa, an employee must first establish that there was a delay in the payment of benefits. The employer then has the opportunity to demonstrate that it had a reasonable excuse for the delay.
Federalize for Occupational Disease - For occupational illness--such as what will happen to workers in the BP oil-spill cleanup--the workers' comp system doesn't work. Federalization is the solution.
Flagged for Wrongful Death? - Is an employer liable for wrongful death for a post-shift accident that killed a highway flagger?
Increasing the Stakes of Using 'Nonemployee Workers' - Healthcare reform might lead employers to think that calling workers independent contractors is the way to go. But new federal and state initiatives could lead to problems, should employers fail to properly classify workers.
Lack of proof of mental incompetence stymies attempt to extend time - In Indiana, a worker has two years after the date of injury to file a claim for benefits unless he establishes that mental incompetence prevented him from timely filing the claim.
Oregon: Declining revenues continue to plague WCD - A sharp decline in revenues from premiums has had a significant impact on Oregon's workers' compensation system. Due to high unemployment resulting from the economic downturn, officials from the Workers' Compensation Division are exploring new cost-cutting measures to offset the shortfall.
Paying the Price of Impoverished Public Risk Management - The public sector is now slammed by the economic downturn, and cuts in services and layoffs are expanding the legal exposures that risk managers must manage.
The Crux of Hurricane Loss Prevention: Keep the Water out - Risk managers' and business owners' primary objective to prevent damage to their businesses during a hurricane is to keep water out of their buildings. It is that simple.
The E&Y Roundtable: Claims Wisdom - A panel of veteran risk managers comes clean about how to drag the industry's reticent sibling, the expensive claim, into the discussion.
Where There's Smoke: Part 2 - In part two of this two-part column, we cover current rulings on the decriminalization of medical marijuana and offer options for employers to consider.
Dodd-Frank Contains Weaker Federal Insurance Office Provision - The insurance industry won most of its objectives in the Dodd-Frank financial regulatory reform bill that now is headed back to the Senate for voting and then, possibly, to the president's desk.
Popping the Prescription Drug Solution - Data from employee prescription drug use could be essential for cutting costs on an employee healthcare benefits plan. But what's the best way for a self-insured employer to get this data?
Connecticut: Legislative session ends without creation of state comp insurer - Lawmakers in Connecticut adjourned their 2010 session without passing legislation to establish a state-sponsored workers' compensation insurance company.
Economic Factors Leave Workers' Comp Industry in 'Precarious Position' - The economic recession took a heavy toll on the workers' compensation industry in 2009, and the prognosis doesn't look much better in the year ahead, according to industry experts.
Employer dodges sanctions because 30th day falls on Saturday - In Nebraska, when the statutory period expires on a Saturday, Sunday, or a day when the Workers' Compensation Court is otherwise legally closed, payments made on the next business day are considered timely.
Emptying Whose Pockets for Product Liability? - Chinese drywall verdicts won't mean much if insurers can duck them or are only on the line for limited limits.
Florida: New disability trust fund assessment to be reduced - The Division of Workers' Compensation recently issued an order revising the Special Disability Trust Fund assessment.
Impact of healthcare reform - According to the National Council on Compensation Insurance, several factors related to national health care reform have a potential to impact the workers' comp industry.
Oklahoma: Overhaul of comp system complete, heads to governor - After months of wrangling, lawmakers in Oklahoma have sent a comprehensive workers' compensation reform package to the governor for approval.
Oregon: Commercial contractors must carry insurance - Beginning July 1, all commercial contractors in Oregon will be required to carry workers' compensation insurance.
Washington state: Department seeks to standardize 'hospitalization' - The Department of Labor and Industries is pursuing rulemaking to clarify the term "hospitalization" and to bring the department's rules in line with the Occupational Safety and Health Administration's interpretation of the word.
Lambeau Leaping Into an OCIP Lawsuit - Are contractors on an OCIP-insured project protected from a lawsuit from an injured work (who wasn't their employee)?
New York: New maximum weekly benefit rate to take effect - Beginning July 1, in accordance with New York State Workers' Compensation Law Section 2(16), the maximum weekly benefit rate for workers' compensation will be two-thirds of the state's average weekly wage for the previous calendar year as determined by the Department of Labor.
Ohio: Workers' comp bureau approves substance abuse prevention program - The Ohio Bureau of Workers' Compensation has adopted a new program aimed at preventing workplace injuries attributed to use and abuse of drugs and alcohol.
Rotating shift workers at an increased risk of irritable bowel syndrome - Employees who work rotating shifts face a significantly higher risk of developing irritable bowel syndrome and abdominal pain than individuals working a standard daytime schedule.
The Six Million Dollar Injured Worker - Implantable devices are being used more and more in workers' comp. But they are leading to increased costs and even changing the way doctors provide care to injured workers.
Why OSHA Isn't Pleased With BP - David Michaels, assistant secretary at OSHA, has had some tough words about safety during the Deepwater Horizon clean-up. Here's why.
Bermudian's Insurance Breakthrough - David Cash, Endurance Specialty's new CEO, talks about the direction of his firm, lessons he's learned on leadership.
Supremes Dodge Sex-Text Case Issues - In the recent Quon case, the Supreme Court shied away from the chance to set any real standard for employers on evaluating privacy concerns for electronic communications.
Employee Safety Fallout From BP Oil Spill Worsens - Chemical exposures and workplace conditions provide a toxic environment for workers responding to the oil spill in the Gulf. OSHA and lawmakers grow concerned with BP's response to safety issues.
The End of Self-Insurance Groups? - This story has the workers' comp social media sites all abuzz with discussion.
Agency Increases Penalties for Severe Violators - The Occupational Safety and Health Administration is launching a program to target employers who chronically place their workers at an increased risk of injury.
Bill would update chemical safety laws, require testing - Congress recently introduced legislation that would overhaul the chemical safety standards for the first time in more than 30 years.
California: Insurers say workers' comp legislation will drive up pharmacy costs - Legislation being debated in the California State Assembly could drive up workers' compensation pharmacy costs, according to a state insurance coalition.
Clock starts running when injury becomes apparent - The Louisiana Workers' Compensation Act gives workers one year after the date of injury to file a claim for benefits if the injury develops immediately.
Futures as Risk Management Models - Risk managers could do well to foster transparency and liquidity in their organizations, two qualities that typify healthy and vibrant futures markets.
Injury during on call towing job is in course of employment - The key issue in determining whether an employee is in the course of employment is whether the employee is injured while actually engaged in the furtherance of the employer's business or affairs.
Texas: Medical costs per claim stable after years of decreases, study finds - Medical costs per workers' compensation claim in Texas were stable in 2007 after several years of significant decreases, according to a study.
Wal-Mart employees get class action certified in medical care suit - Under the federal rules of civil procedure, a class action may be certified if several requirements are satisfied.
The World of Risk Management According to GARP - Financial risk managers need to be able to compile a "risk color book for management," not just crunch numbers. The best way to learn this is to start at the bottom.
Absolute immunity doesn't apply to examining doctor's independent medical exam reports - WCA hearings are the functional equivalent of judicial proceedings, and therefore, participants benefit from the same protections as participants in judicial trials.
High Times on a Sheep's Foot Roller - Does a worker's drug use let his employer off the hook for workers' comp benefits?
The Elephant in the Auditorium - Risk managers meeting in the United Kingdom talk more about the inadequacies of bank risk management and British insurance law and not so much about the BP gusher in the Gulf.
WORKERSCOMP ForumTM Update: June 17, 2010 -
The new insurance tax (YouTube) - The reinsurance industry is going all social media in its campaign against HR3424, the bill in Congress aimed at foreign insurers. This video makes the consumers' case for the usefulness and necessity of global reinsurers, and raises the dreaded T word--taxes--to pit consumers against the bill.
Are Self-Insurance Groups Safe? - Does the insolvency of New York self-insurance groups--to the tune of perhaps $600 million in deficit--have implications for self-insurance pools elsewhere?
Solar storms to erupt soon. What will be the impact on Earth? (SPACE.com) - The sun is headed into the peak of its solar storm activity, according to scientists meeting at the Space Weather Enterprise Forum. That doesn't bode well for a civilization dependent upon wireless networks, massive power grids and smart phones. Disturbances could be at their worst in 2013 (no, not 2012) and damages could total 20 times what Hurricane Katrina caused.
Hartford to pay $72.5 million settlement (AP) - About 21,000 people are going to split a $72.5 million settlement from The Hartford for its allegedly fraudulent auto, workers' comp and other injury claims payments. Supposedly the insurer was deducting as much as 15 percent off claims payments for "annuity costs" for its life insurance subsidiary.
Claims: Who Deserves Blame? - Does the insurance claims process get to be a bigger mess the greater the sums of money on the line? Or does it go more smoothly than can be expected?
Editor's Choice Stories: June 15, 2010 -
New Product Announcements: June 15, 2010 -
People on the Move: Brokers -
People on the Move: Insurance -
People on the Move: Trade Groups -
R&I One®: June 15, 2010 -
AIG's Greenberg on government bailout (Fox Business) - In case you missed Neil Cavuto interviewing Maurice "Hank" Greenberg on Fox News last week, check out the video. Hank takes a few swings at Elizabeth Warren, the TARP oversight chair who called AIG a "corporate Frankenstein." He also discusses how his successor fell down on the job. And are we mistaken or does he blame the lapse in AIG's risk management on Eliot Spitzer?
The tough match of young workers and insurance (New York Times) - According to this author in the New York Times, the insurance industry is in big trouble when it comes to recruiting millennials to replace its retiring baby boomers. There are two reasons why: the learning curve and promotion process in insurance take too long for the need-it-now youth of today. And technology and its limited use in the business aren't going to cut it for young folks.
California: DWC discusses ambulatory surgical center fees - The Division of Workers' Compensation held a stakeholder meeting May 27 to discuss drafting regulations regarding ambulatory surgical center fees.
Employee may seek comp benefits for neck injury during company outing - An employee who is injured in Ohio while engaging in horseplay may receive workers' compensation benefits if the horseplay was commonly carried on by employees with the knowledge and consent or acquiescence of the employer.
Fifth Circuit Passes on Climate-Change Case - Will the Supreme Court be asked to weigh in on another greenhouse gas case, Comer v. Murphy Oil?
Louisiana: Comp drugs costs 75 percent higher than study states - The cost per claim of prescription drugs used to treat injured workers in Louisiana was significantly higher than in most study states, according to a report by the Workers Compensation Research Institute.
Montana: Largest insurer approves 4 percent cut in premiums - The Montana State Fund recently adopted a 4 percent overall average decrease in workers' compensation premium rates.
Surveillance video, inaccurate medical history cast doubt on claim - When video surveillance contradicts the medical history provided by the injured worker, she has not met her burden of establishing that her current symptoms are causally related to an old work injury.
Union Officials Say Workplaces Still Too Dangerous, Enforcement Too Weak - Thousands of health and safety advocates and labor groups recently marked the 21st annual Workers Memorial Day with events to raise awareness about work-related injury and fatality risks. Many believe that much more can be done to protect the health and safety of the American workforce.
Is BP hiring ignorant claims-handlers with little dollar authority to pay claims? (Property Insurance Coverage Law Blog) - Rumor has it that, one, ESIS is handling the claims from the BP oil spill and that, two, it only hired one outside adjusting firm to assist it, Worley Catastrophe, but that, three, BP instructed them not to hire any adjusters who had experience working on the Exxon Valdez case. Chip Merlin is on it (who, mind you, is an insurance recovery attorney looking for clients to represent in the Gulf).
Philly insurer: Chicago owner offers better deal, for $228 million (PhillyDeals blog) - More details on the PMA-Old Republic deal from this Philadelphia Inquirer blogger who spoke with PMA boss Vincent Donnelly. The gist is that Blue Bell, Pa.-based PMA can do better for its shareholders by merging than by remaining alone.
Colorado: Lawmakers nix bill to restrict comp surveillance - A Colorado Senate committee voted to kill legislation aimed at restricting the use of surveillance by employers and insurers in workers' compensation fraud investigations.
Down and out With Public Risk Managers - Public-entity risk managers stare down into a fiscal abyss and see ... opportunity?
Employer's bid to dole out responsibility for worker's disability falls flat - In North Carolina, where doctors' opinions do not indicate how much of a worker's disability was caused by the workplace injury, apportionment is improper because it is too speculative.
Insurance Industry Serious About IT in 2010 - Carriers have improved their core systems, yet their underwriting systems still need improvement. Another top upcoming IT initiative: data conversion to new policy administration systems.
Oregon: Governor marks 20th anniversary of workers' comp reforms - Work-related injury and illness rates have fallen 50 percent and workers' compensation costs are down 60 percent since Oregon lawmakers reformed the workers' compensation system in 1990. Gov. Ted Kulongoski recently marked the 20th anniversary of the reform measures.
Stiff Back From Moving Stiff Corpse? - Did a mortuary have timely notice that a worker injured his back moving a corpse?
Trucker's failure to secure employer's consent to settlement ends further benefits - Under Indiana law, an employer's liability for an employee's workers' compensation benefits terminates if the employee settles a claim against a third party for the same injury without first obtaining the employer's consent to the settlement.
WORKERSCOMP ForumTM Update: June 10, 2010 -
Vermont's Captive Insurance Veteran Leaving for Florida Post - Peter Raymond is leaving for the Florida Hurricane Catastrophe Fund and will be succeeded by Sandy Bigglestone.
Editor's Choice Stories: June 8, 2010 -
Hurricane Futures Start Slow, Awaiting Atlantic Action - Users of the CME Hurricane Index futures market await first tropical storms of 2010 season to lay off risk.
IASA Selects Tech-Savvy President to Lead It - Social media strategist Craig S. Lowenthal is set to develop a coherent strategy for IASA.
New Product Announcements: June 8, 2010 -
People on the Move: Brokers -
People on the Move: Claims -
People on the Move: Insurance -
R&I One®: June 8, 2010 -
Alleged scheme to deny workers' comp doesn't give rise to RICO liability - A violation of the administrative duties of the Workers' Disability Compensation Act, even when fraudulent, does not amount to mail or wire fraud sufficient to give rise to RICO liability.
Are more comp medical data reporting standards on the way? - Under the health care reform law, the Health and Human Services secretary must solicit input from standard-setting organizations on the development of national reporting standards as they relate to health care services.
California: State comp fund not filing midyear rate increase - The California State Compensation Insurance Fund will hold the line on premiums and not file for a midyear rate increase. Instead, officials from the state's largest provider of workers' compensation said they will revise the fund's rating plan to provide underwriters greater flexibility to reward better-performing accounts.
Colorado: Division schedules hearings, makes proposed changes available - The Division of Workers' Compensation will hold public hearings prior to the adoption of proposed amendments to the Workers' Compensation Rules of Procedure, 7 C.C.R. 1101-3 Sections 8-47-107, 8-44-112 and 8-46-102.
Massachusetts: Senate passes bill to protect nurses - The Massachusetts Senate unanimously passed legislation to stiffen the penalties against individuals who assault nurses and other health care workers. The House of Representatives passed the bill in March.
NCCI Predicts Effects of Healthcare Reform on Workers' Comp - Lawmakers narrowly approved to overhaul the health care system in late March and have feverishly debated the short- and long-term impact the measure will have on employers. Workers' compensation experts and insurers, however, have been curiously silent on the topic of health care reform, choosing to cautiously size up the legislation before forecasting its potential effect on the industry.
Personal animosity defeats assertion that assault was work-related - The Kentucky Workers' Compensation Act does not authorize compensation for injuries that are "merely contemporaneous or coincident with the employment or collateral to it." Compensation will be awarded only where the employee establishes a direct causal connection between the employment and the injury.
Study recommends comp system for employees of war zone contractors - A hole in public policy is shortchanging soldiers and civilian workers who become casualties of today's war strategy that leans heavily on private contractors, according to a study by the University of Illinois.
Charlie Crist's veto ensures we'll face insurance woes (Orlando Sentinel) - A biting commentary on the recent veto of property insurance reform legislation in Florida by Gov. Charlie Crist. The author blasts the governor for using the veto to get elected as senator in November, while lamenting that the bill could have ensured that carriers have adequate reserves and minimized claims fraud.
A Ban on the Van - A man rendered paraplegic in a work injury got a modified van from his employer. Should he get a replacement?
Al-Qaida Threat Waning - The infamous terrorist group relies on local operatives who are less reliable, an expert says. But the "franchising" of terrorism remains worrisome.
Arizona: Hearing set for physicians and pharmaceutical fee schedule - The Industrial Commission proposed an updated fee schedule for medical and pharmacy to incorporate changes from the American Medical Association's 2009 edition of the CPT-4 and review the values of new and selected codes from surgery, radiology and special services.
Employment relationship with airline derails personal injury suit - Under Massachusetts law, an employer is entitled to immunity from personal liability when the injury occurs in the scope of employment.
Falls, machinery use lead to increased fatalities for older Americans - The risk of dying from injuries is increasing for individuals 65 years and older, according to a report from the Johns Hopkins Bloomberg School of Public Health's Center for Injury Research and Policy.
Fatal car accident after leaving work site falls outside scope of employment - An employer's act of occasionally assisting in arranging who drives to a work site is insufficient to place an employee's travel to and from work within the course of employment.
Managers see eye protection as foundation for safety culture - Building a stronger culture of safety in the workplace can start with better eye protection, according to two recent surveys.
Narcotics Spending Declines for Second Year - The cost of painkillers for workers' comp payers is down again, a study finds. Enforcement and generics are cited as reasons for the lower numbers.
Nebraska: First responders with mental injuries now eligible for comp - Emergency responders in Nebraska who suffer mental injuries as a result of their jobs will now qualify for workers' compensation benefits under legislation signed into law by Gov. Dave Heineman.
New York: Updated billing procedure brings fines - The Workers' Compensation Board has begun assessing procedural penalties to any parties or regulated entities who fail to comply with the state's workers' compensation statutory or regulatory provisions.
North Dakota: Workers' comp agency proposes 3.3 percent rate increase - North Dakota's Workforce Safety and Insurance agency recently proposed a 3.3 percent average increase in workers' compensation rates.
Treating Sleep Apnea in Truck Drivers Cuts Health Costs, Disability Rates - Providing effective treatment for commercial truck drivers with sleep apnea can lower health care costs and disability rates, according to a study.
WORKERSCOMP ForumTM Update: June 3, 2010 -
Where There's Smoke - In the first part in a two-part series, we cover the issues that decriminalization of medical marijuana creates for workers' compensation and how some states are beginning to deal with the topic.
Big setback for AIG in repaying taxpayers (DealBook) - Pru tried to drop its offer for AIA to $30.37 billion at the last minute on pressure from shareholders, but AIG rejected. So Pru backed out. Here, the Times reports that AIG chief executive, Robert H. Benmosche, wrote in a letter to his staff that the AIG ¿will have several options to consider regarding AIA--more than we did in March.¿ And those are ... ?
The power of three smart people (Celent Blog) - Craig Weber solves all insurance IT issues with one simple strategy: the Three Smart People theory. Any problem--no matter how complex or enterprisewide--can be broken down into small parts and digested and solved by three smart people locked in a room without bureaucrats, lawyers or marketing people (not to say any of those folks aren't smart).
How can big cities adapt to climate change? (Fast Company) - The New York City Panel on Climate Change, which includes science, government, legal, risk management and insurance experts, has released a report detailing how the city could survive despite climate change, which includes working with the insurance industry on new risk-transfer mechanisms.
A model plan for uniform global regulation of reinsurance (Metropolitan Corporate Counsel) - Interviewed here is Steven M. Goldman, former chair of the Reinsurance Task Force of the National Association of Insurance Commissioners (NAIC), where he helped design a framework for modernizing reinsurance regulation. Here he gives a pretty thorough update of what is currently in the works in Congress and what could be done to properly regulate global reinsurers.
2011 Power Broker® Application Available Now - To nominate someone for the 2011 Power Broker® Awards, or to put yourself in the running, please download the form here.
Prudential's bid for AIA wilts under heat of criticism (Guardian) - Prudential's $35 billion bid for AIA, the Asian arm of AIG, could run aground on the market uncertainties surrounding the Euro debt crisis. The Pru's next move is to convince investors that it can pull off the deal at $30 billion. But if it fails, expect trouble at the Pru shareholder vote on June 7.
A Conference Contrarian - Here's some advice: Shut up. Put a sock in it. Clam up.
A Tunnel of Errors - Hazel's treatment for carpal tunnel syndrome was a festival of misadventure.
Adding up Interest in Billing Systems - With the anemic recovery forcing insurers to look for cash wherever they can find it, billing will likely feature prominently at upcoming technology shows.
Alex LeBlanc - Senior Vice President, Market Leader Aon Consulting, Baltimore Turning Around the Skeptics When she first began to work with Alex LeBlanc, senior vice president of Aon Consulting in Baltimore, the former benefits director of a New Mexico utility said, "I couldn't wait to fire him." "I have a high level of disdain for consultants," she explained. LeBlanc changed that. "He doesn't waste my time," she said. "I don't get white papers and other crap I don't have time to look at. He gives me one page that says, 'Here's the impact. He helps us make sure we cover all bases from a cost perspective but based on the people impact. "And he takes my abuse," she said with tongue planted firmly in cheek. Kidding aside, she said that before she changed jobs at the end of last year, LeBlanc had analyzed her utility's healthcare delivery system and recommended plan and employee pricing changes that assured $1.1 million in savings for the utility. He also implemented a predictive modeling tool to help management with plan design and pricing issues. "He doesn't take a cookie-cutter approach," the vice president of human resources for a Southern health system said. "He individualizes his recommendations." Best of all, she said, he is on top of health insurance reform regulations, which are particularly important to her company.
An Easy Guide to TPAs with ESIS' Patterson - The leader of a leading insurance claims administrator talks TPA financial strength, compliance, RMIS and the paperless claims environment, among other things.
Annette Dowdle - Senior Vice President Hub International Gulf South Ltd., Metairie, La. Going Above and Beyond Annette Dowdle doesn't always do what she's contracted to do. Often, she does more, according to her clients. "When we originally started with her and her team, their rates did not include actually printing up benefits material for us," the human resources director of a large Louisiana religious organization said. "We're a big, scattered group of schools, agencies and churches. Some are large, with hundreds of employees; some have only two or three employees--and they print everything, distribute it to every location that handles benefits. "Communication--getting information out--was a big stumbling block for us. Now our benefits communication method is so much smoother. "A lot of our employees work for the benefits because their salaries are so low," she added, "and we have seen good renewals because Annette and her team have advised us so well. They understand that our position is to provide good benefits. But nobody's money is unlimited. "Annette helps us have good benefits and when she recommends changes it's so we can get the biggest bang for our buck." For another client whose goal was to save premium and still maintain good benefits, Dowdle saw that rate increases would soon outpace the company's generosity. She helped the company change its insurance funding structure from fully insured to self-funded, allowing the client to customize its benefits and save $300,000.
Benefits Power Broker® Finalists - The winners of the 2010 Benefits Power Broker® Awards have been announced, but that's not all. On top of the winners in each category, we've also identified eight finalists.
Benefits Power Broker® Winners - We've announced the 2010 Benefits Power Broker® Winners and Finalists. Read more here.
Benefits Responsibility Leader® -
Benefits: Disability -
Benefits: Healthcare -
Benefits: Retirement -
Benefits: Voluntary -
Biotech/Life Sciences - The recent decision by a federal court judge to reject patents on cancer-causing genes will have strong reverberations in this sector. Patent disputes in general form a risk context for many of these companies. Click above to read more on the industry, or view the industry risk table to see the major players, their brokers and risk management strategies.
Biotech/Life Sciences Industry Risk Report Table 2010 - A listing of some of the nation's top biotech and life sciences companies, their risk managers, brokers, captives and risk management programs.
Brian Heinke - Client Relationship Manager TrueNorth Inc., Denver Jumping In A good consultant doesn't wait for someone to throw a red flag. The economic downturn has forced a lot of people to make financial moves that they never would have considered just a few years ago--like taking out a loan from their 401(k) account. At an electricity company in the Western U.S., employees took loans from their 401(k)s at the rate of about one per month. But when the loans were paid back, the vendor didn't notify the electric company immediately, leading the company to continue taking deductions out of their employees' paychecks to refund the 401(k)s. This when people need every available penny to show up in their paychecks. "It was a bookkeeping nightmare," the HR director said. Enter Brian Heinke, client relationship manager of TrueNorth Inc. Without being prompted, Heinke dove in. He worked to straighten out miscommunication issues and saw that the money was repayed to the employees. The HR director said Heinke's help was vital to helping rectify the situation. Heinke's other clients can't seem to say enough about his knowledge of the retirement benefits industry. "He knows the business more than the people at the 401(k) vendor," an executive vice president at a consulting company said. Cheryl Hurley, HR director at Sooper Credit Union in Colorado, calls Heinke extremely responsive.
CAT Modeling: Maintain Your Control as They Evolve - The latest catastrophe models feature significant changes in how they handle earthquakes. We look at the practical effects of these changes, and describe how risk managers can best apply modeling results in their property insurance program.
Claims - With property season starting June 1, it's a fine time to learn some top property claims and loss-control tips from a commercial carrier best known for such things.
Claims: An Industry Bright Spot - The industry processes thousands of claims every day. It's only when there's a problem that you hear about it.
Claims: Time for a Revolution - The claims process is well-suited for lawyers, accountants and brokers but not for the people who matter most.
Contingent Commission Restrictions Lifted and No One Bats an Eye - The ban on contingent commissions has been lifted, but analysts say it's far from a transformational change.
Dan Leary - Senior Vice President, Lockton Cos. LLC St. Louis, Mo. Real Added Value To Dan Leary, education makes a difference, whether it's being given or received. His own decision to seek higher education significantly improved his value as a broker/partner. His ability to educate his clients benefits their bottom lines. "His approach is very proactive," the vice president of human resources for a Midwest property management company said. "He's really good about disseminating important information and that's where he differs from most brokers. He's never afraid to give me the facts--the good, the bad or the ugly." For instance, the company's emergency room utilization costs had gone through the roof, the human resources vice president said. "So Dan put together a campaign to educate our people. It costs a lot to go to the ER. He told them what other options they had and showed them the money that would be saved if they utilized them. "Lo and behold, the next quarter we saw a significant reduction," she said. "He entrenched himself in our business and it worked." The ability to entrench himself in his clients' businesses was exactly what Leary had in mind when he enrolled in the MBA program at Washington University in St. Louis several years ago. He wanted to strengthen his understanding of general business and finance, outside of insurance-specific matters, so he could become a more valued adviser.
Death Does Us Part - Employers begin to come to grips with the effects that end-of-life and caregiver issues have on their workforces, and start discussions on ways to support their employees during life's worst moments.
Dreading the Effects of Derivatives Reform? - The final financial services reform bill could hit one particular niche of the insurance industry the hardest.
Earthquake Outlook: Insurance Buyers Need Stable, Secure Carriers For 2010 and Beyond - Since the beginning of 2010, earthquakes have taken center stage globally. Massive, devastating quakes hit both Haiti and Chile, and the media coverage and relief efforts have been extensive.
Editor's Choice Stories: June 1, 2010 -
FINALIST: Jill Jacoby - Vice President Momentous Insurance Brokerage Van Nuys, Calif.
FINALIST: John M. Flaherty - Senior Vice President, Employee Benefits Longfellow Benefits Boston
FINALIST: Karin J. Landry - Managing Partner Spring Consulting Group LLC Boston
FINALIST: Peter Carpenter - Executive Vice President and Managing Director ClearPoint, an Alliant Company Seattle
FINALIST: Robert Gross - Vice President Aon Consulting Radnor, Pa.
FINALIST: Rodney Balbuena - Area Assistant Vice President Arthur J. Gallagher Glendale, Calif.
FINALIST: Teri Weber - Partner Spring Consulting Group LLC Boston
FINALIST: William (Bill) N. Lindsay III - President, Lockton Benefits, Denver Lockton Denver
Flagging Fraud - Spate of deals, partnerships shows how serious carriers are about fighting fraud. The industry is also getting help from an unlikely source: social media.
From the Publisher -
Garrett R. Sullivan - Senior Vice President Aon Consulting, New York Bulking Up the Program It was a tough year for voluntary benefits. With so many firms of all sizes fighting for their lives, voluntary benefits were often among the first casualties of austerity plans. In that environment, Sullivan stood out in the category in that he worked with a large client to increase both the offerings and most importantly the participation in its voluntary program. The client reported that it had something of a voluntary program in place but that was instituted directly by one of its underwriters and was not given much field support. As a result, participation was at a very low percentage of employees. That experience cast a bit of a pall over the whole idea of voluntary benefits for this client. There was also a significant cost factor, as reported by several clients. Part of the problem, Sullivan identified, was that the client had multiple locations, making field support a challenge for an outside organization. Communications and continuity of benefits and billing were complex. Sullivan's approach was to start with the client and get both management and employee input to expanding voluntary benefits. His logic was that a larger, more comprehensive program would be easier to place in the market. Some existing benefits were retained, others were kept and more were added. With the new plan, a consolidated account management software system was put in place. According to the client, about three quarters of all employees sat down with benefits managers and after the program introduction was complete, about a third of all employees enrolled.
Holly D'Angelillo - Senior Associate Mercer, Melville, N.Y. Unheard of Results In a year when cost controls at most insureds were under intense pressure, one client recommended D'Angelillo enthusiastically for her ability to secure no increase in premiums or other costs from 2008 to 2009. "Holly and everyone at Mercer, including Joe O'Connell, the partner who handles our account, really understood our business and were able to communicate that to the market," the client said. "We have one large main facility but then half of our staff are scattered around the country--really people in all 50 states. Given our complexity and the situation with healthcare costs, it is just unheard of for Holly to have gotten us no increase. Our employees were extremely happy." In another case, D'Angelillo consolidated a manufacturing client's two life and long-term disability plans into one carrier. She was able to achieve significant savings by eliminating duplication of benefits, such as overlap of the LTD elimination period with the short-term disability program. For a new client, D'Angelillo took a combined LTD and life program to the market after a through data-driven review and comparative case study. She was able to place the program, saving the client significant premium costs for better terms and won the business from the incumbent broker of almost two decades. On the other side of the equation, D'Angelillo was able to retain a long-standing client by going to bat with the carrier on a difficult LTD claim. That involved detailed work through the claim point by point supporting each with specific provisions in the contract.
Horizon for Healthcare Reform Liabilities Closer than Many Employers Think - Employers can't sit back and wait for healthcare reform to kick in. Now's the time to act to minimize liabilities, lower costs and increase efficiencies in your employee benefits plan under the new law.
Improving Productivity by Breaking Down Healthcare Barriers - Free routine checkups, free generic mail-order drugs, programs designed to improve wellness and chronic care outcomes, as well as lower costs among employees, helping SCA Americas to better compete in a global economy.
Index of the 2010 Benefits Power Broker® Winners - An alphabetical list of this year's 20 Power Broker® winners.
Jason Krouse - Vice President, Specialized Markets Univers Workplace Solutions, Emerson Reid, Hammonton, N.J. Winning in the Trenches Being a Power BrokerTM does not always mean bringing the heavy guns to bear. Sometimes it is winning many little battles in the trenches. And so it is with Krouse, who has created a specialty in helping clients with part-time employees. This expertise served him and his clients particularly well through the recession when the retail sector hired roughly half a million part-time employees. Traditionally the part-time cohort has been relatively young and healthy, more interested in convenience and pay than in voluntary benefits. With the upheaval in the workforce, more and more part-time employees are older and supporting households--thus more interested in benefit packages. Clients particularly laud Krouse for his ability to assemble programs from many different sources. "Jason has the unique ability to bring multiple partners to the table and get them to work as one team," one client reports. "He is a consummate professional and negotiator on behalf of his clients." He is able to do this, his advocates said, because he is able to work with carriers in a way that makes them comfortable with non-traditional situations. At the same time he is credited with gaining terms favorable for his clients, the kinds of terms usually reserved only for large traditional W-2 employers, not for 1099 employers. Winning the little battles in the trenches has also meant facilitating non-traditional communications methods, especially online benefits information.
John Kahle - Senior Vice President and Chief Wellness Officer Intercare Insurance Solutions, San Diego Breaking New Ground There's a first time for everything. For John Kahle's clients who are looking for new ways to provide affordable benefits, the first time, sometimes, is for them. One of Kahle's clients was having a difficult time establishing a fair and affordable medical benefit for employee dependents. While the monthly medical contributions for employee-only coverage were low and affordable, those for dependents were not. Kahle asked a national carrier to offer the client two levels of coverage--one for employees and one for dependents. Employees would retain their low-deductible, low-contribution plan, while dependents would have the option of a similar plan but with a higher deductible. The carrier agreed, but faced major information technology problems. Nothing like that had ever been done. But Kahle's vision prevailed, and today that carrier is developing a new information technology system to allow for dual levels of coverage for Kahle's client. Another client decided to explore moving from fully-insured medical benefits to a self-insurance program but was told her company was too small. "Self-insurance is for companies in the 4,000-employee range. We have 400 and what makes it tricky is we have 14 locations around the country," the chief financial officer of the company said. "So we became a guinea pig. John negotiated an expanding, graduated risk-corridor program and stop-loss insurance. "The corridors turned out to be our best friend," she said.
John L. Davis - Senior Sales Executive Arison Insurance Services, Lexington, Ky. The Year That Was It was quite a year for John L. Davis, who took one client from fully commercially insured to completely self-insured and who also initiated a carrier review in long-term-disability (LTD) for one client and managed a switch, all the while maintaining full service for his other clients. In his all-but-non-existent free time he managed to start a wellness program that the client anticipates will reduce its claims and enable better rates and terms. "We had been with our LTD carrier for many years," a client said. "John came to us and suggested that we could do better taking the program to the market. He was sure we could get comparable coverage at a lower price. We got the same coverage at half the premium." The client said that Davis has done so well in his specific areas of expertise that they have switched their entire benefits program--LTD, medical, dental, and life--to him. The wellness program, a recurring theme in this year's awards, is not yet fully implemented but the client lauds Davis for the advanced work he has done preparing the ground. "John has been very active in researching options. These programs require a lot of continuing support and he has brought in local groups to do just that." In another case, a parent company managing more than a dozen facilities had eight separate plans in place from five different underwriters. Administration was complex and participation was declining. Davis was able to consolidate the disparate placements to a single program with one carrier.
Joseph M. Russo - Senior Vice President, Chief Operating Officer, Employee Benefits HUB International, Wilmington, Mass. Surprising Percentages Voluntary benefits tend to be industry specific, so brokers often concentrate on a single sector of the economy, the size of an insured, or a geographic area. In contrast, Russo has clients that are local and worldwide in both manufacturing and services: one is a global manufacturer of industrial equipment, another is a regional general hospital. In line with the growing trend among Benefits Power BrokerTM winners, Russo ramped up his efforts in wellness over 2009: an online employee survey for each client yielded a detailed report with specific recommendations. Clients noted that a unique aspect of these recommendations is that instead of simply "scolding and preaching" as many wellness guides do, Russo's guidance builds from what employees themselves say they like and want to do. Especially in the area of voluntary benefits, clients said that this employee input has been instrumental in crafting features for programs. Several clients noted that the worker input to the report enabled them to add voluntary benefits that they would not have otherwise included and that are not generally available to individuals outside a plan. In the same vein, clients laud Russo for his communication skills. In one case, Russo and his team were able to meet in person with nine out of 10 employees, a percentage that surprised the client. For another client, Russo's greatest accomplishment in 2009 was reducing its workload. Russo has staff support in COBRA and ERISA, including legal expertise.
Karen R. Roberts - Senior Vice President, Aon Consulting Las Vegas Passionate about Wellness Think of Las Vegas and "healthy lifestyle" are not words that come readily to mind. Unless you are among the employees of companies for whom Karen Roberts has helped develop health benefits plans that brought innovative cost savings. "She is always extremely current on everything, a wonderful resource on changes in the workplace," the human resources director of a southern Nevada charity said. "And she knows how to integrate wellness." Indeed, wellness is Roberts' passion, said the vice president of benefits for a gaming company that operates casinos throughout the country. And it is in the gaming industry that Roberts has carved a niche for herself. "Because we have lower employee premiums in the gaming industry, it's important to keep our employees engaged in health awareness," the vice president said. "Karen has equipped me with plan design suggestions to help encourage that process." Part of that process included moving to consumer-directed health plans. Two out of three of his company's 25,000 employees are members of such plans. "She constantly helps me encourage health and wellness and accountability so people understand how the decisions they make about eating and exercise impacts their health and wellness," he said. "We're all desperately searching for ways to keep our healthcare costs down."
Karen Trumbull English - Partner Spring Consulting Group LLC, Boston Every Day She Writes the Book In the world of disability benefits, English wrote the book, literally. Last year the Disability Management Employer Coalition published its "Tools of the Trade," desk reference, which the organization calls "a complete technical guide for integrating absence, disability and productivity programs." As a group effort no one author is listed but clients report that English "facilitated the entire initiative. The work she did was just unbelievable." The vogue of brokers calling themselves consultants blurs the line between two equally important but distinct practices. In that blur, clients said that English stands out as a true consultant. They say she is indispensable for the strategic direction she provides to them, the market insight and especially the vast industry data and best practices that enable them to benchmark rates, terms and covenants. "She understands pricing and coverage," a client said. "Last year all that benchmarking was particularly helpful in our program to manage absence." Clients said English is also instrumental in providing them with the market intelligence and strategic planning to go to their brokers and underwriters with clear understanding and objectives. "We base our internal policies and practices on her best practices," a client said. "She has been instrumental in our recruiting and retention, as well as claims and renewals." For one client, English implemented a "day one" absence program that closely coordinates with the firm's benefit programs. In another case, she helped design the requirements for tracking absence with the client's existing vendor. For a third client, English participated in building a business case for outsourcing disability management.
Knockout! - Insureds have spoken, and they like FM Global's claims-paying prowess. Now, it's time for the insurer to reveal some of its secrets.
Leap Ahead of the Risks - Lots of people and organizations are talking about "emerging risks" these days; few with any consistency.
Legal Risks In-Depth Series (Part 2): Uncivil Actions - A reluctance on the part of the courts to expand liability outside the attorney-client relationship isn't likely to stem the onslaught of malpractice claims against law firms.
Letters to the Editor -
Making the Tough, and the Tough-Tough, Hurricane Planning Decisions - It is June 2010. That means that hurricane season is once again upon us for both the Atlantic and Northeast Pacific basins. If you have properties in these hurricane-prone regions, now is a good time to make sure your operations are prepared should a tropical storm head your way.
Michael R. Meredith - Executive Vice President, Employee Benefits Willis of Florida Inc., Naples, Fla. An Honest Rainmaker "Mike is one of the ultimate rainmakers in the business," one client stated. "He has the ability to create relationships and bring the right team from his standpoint to the table to provide the clients outstanding service and value. We are such believers in Mike's skill sets that we have made him one of the key brokers for our internal employees." In another case, Meredith was the point man for a comprehensive reassessment of a large client's voluntary benefit plans. That extended to the program's administration, enrollment, and communication and was done in conjunction with a review of the client's core benefits program. In the course of the reviews, Meredith worked closely on a regular basis with the client's senior executives. That became an essential link, as the assessment revealed that new plans would be necessary. Meredith led the development of those new plans, which included an employees' wellness program and disease-management systems. Through many C-level meetings, the clients credit Meredith with being a dispassionate advocate. His expertise in claims experience and cost projections were instrumental in the final form of the plans. The client could save a projected $9 million from behavioral improvements on top of $7 million from changes in plan terms. The behavioral changes do not take into account increases in productivity or opportunity costs arising out of lost-time situations. One hurdle was starting costs for the plans. Because of his understanding of the client's other programs, Meredith was able to compile half a million dollars in incremental savings.
Mike Barone - President and CEO Intercare Insurance Solutions, San Diego The Biggest Winner When market conditions turn quickly, benefits consultants must be nimble enough to react quickly and secure better terms during that flux. Barone and his staff got high marks for doing just that as the economy started to recover on the West Coast. One client cited them "for their innovative negotiations" with a major underwriter "using our aggregate health assessment data to get a reduced monthly premium for 2010." The carrier was able to underwrite the client's policy by using the data as guided by Barone and thus they had a more accurate picture of the health and disability profile of the insured. Not only did Barone and his staff quantify the risks for the underwriter that translated into lower premiums for the insured, they also secured a commitment for the carrier to help support the client's "wellness pot." That approach was highly unusual, because the conventional approach for this type of underwriting is for the carrier to compute rates based on the standard demographic, wage base, industry and location. Barone also works the other side of the table, helping clients to implement wellness programs that enable him to present more palatable risks to the market. In one case last year a client firm tried a "biggest loser" competition, styled after the popular television program. The participants lost much more than half a ton, a combined 1,300 pounds. The winner of the contest, a middle-aged man who was morbidly obese, lost almost 200 pounds. He has continued to lose weight after the completion of the competition under physician guidance.
Nancy Echols - Principal Mercer, Houston Cool Calculations Pay Off Things really heated up for Nancy Echols last year. As she was gearing up for a Jan. 1, 2010, contract renewal with a client that manufactures heating, ventilation and air conditioning products, she was challenged to provide the client with a competitively priced health benefits program with costs managed over three years. The reason was that her client was poised to secure a new three-year bargaining contract for a division of the company. Echols and her team prepared multiyear cost projections and concluded that the way healthcare costs were trending, action was needed to contain costs. What ensued were months of intensive work, including benchmarking and cost analyses. Cutting benefits was not an option if the plan was to remain competitive, and although the client wanted to establish on-site clinics, the clinics were ruled out as too expensive. In the end, Echols and her team recommended a plan that included a lower administrative fee capped for three years, a three-year network discount guarantee, inclusion of a high-performance network and a discount specific to her client with a local hospital. Overall cost avoidance is estimated at $8.5 million this year and the client was successful in obtaining a three-year bargaining agreement. "Nancy does what needs to be done for her clients," the senior vice president and director of human resources operations at another client company, said. She even hooked the client up with a call center not run by Mercer because it offered services more suited to the client.
Of Water Borne - The residue of prescription drugs is finding its way back into the human body through drinking water systems. The issue raises questions about liability and whether drug makers could eventually be on the hook.
Opinion: Nonadmitted Vs. Admitted--The Choice Is Clear - Even in the current deep soft market, shoppers of program insurance should steer clear of admitted carriers and stick with surplus-lines players that know what they're doing.
PPCP Resources - Pharmaceuticals and Personal Care Products (PPCPs)in our drinking water have many governmental and environmental folks concerned. But manufacturers of those chemicals also also a little concerned about their PPCP liability.
Paris Art Heist Paints a Poor Picture of Risk Management - The recent Paris art heist at the Museum of Modern Art highlights important differences in museum risk management and insurance.
Philip A. Peterson - Senior Vice President Aon Consulting, Glen Mills, Pa. Quick in the City Even a casual observer of big city politics can see that negotiations between administrators and their highly unionized workforces can often prove tenuous. By many accounts, trying to do business in this environment doesn't come without some battling--but, luckily for one major East Coast city, it had Philip A. Peterson in its corner when trying to redesign its pension plan. "We're a public employer with a strongly unionized workforce so change in our pension plans is something that has to be fought for," the director of labor relations for the city said. Many city governments are hurting financially, so making the right changes was of utmost importance--the right plan can be a solvent match for a long time to come; the wrong one can hurt the city for years. This particular city has got quite a reputation for the ferocity of its unions, so Peterson really had his work cut out for him. In an arbitration hearing with the city's unionized police, Peterson had to provide the city's response to a police department proposal--in just a matter of days, the director of labor relations said. In the end, Peterson's hybrid plan combining the old defined benefit plan and traditional 401(k) features won. The city's new plan for the police department will provide a model for the city as it goes into negotiations with its other unions like the firefighters union, which are ongoing this year.
Plugging the Line - Will a recent workers' comp opinion in California stem the claims tide against the NFL?
Property Insurance Claims-Handling Tips - Here is some good advice for risk managers as hurricane season looms. Knowing what to do before during and after a property loss can be crucial, whether those losses be caused by windstorm, fire or other perils.
Pushing for 'Prohibition' an Outdated Notion? - Rapprochement over commissions underscores RIMS leadership-membership rift.
R&I One®: June 1, 2010 -
Redefining Risk Management in the Supply Chain - Sourcing and supply chain organizations ought to focus on the three factors that are redefining the global economy and will continue to impact risk management in the future: speculation, faulty regulation and "me-tooism."
Reinsurance Power BrokerTM: Last Day to Apply - To nominate someone for the 2010 Reinsurance Power BrokerTM Awards, or to put yourself in the running, please download the 2010 application.
Respecting Your Benefits Responsibility to LGBT Employees - The Human Rights Campaign Foundation's Corporate Equality Index raises the bar on workplace equality for LGBT employees and their same-sex partners. Employee benefits managers, take notice.
Responsibility LeaderTM: Alex LeBlanc - Senior Vice President, Market Leader Aon Consulting, Baltimore Category: Healthcare Alex LeBlanc: A Veteran of a Certain Vintage You can picture the daily routine of Alex LeBlanc, senior vice president and market leader for Aon Consulting. Nearly every morning, he drives to his office at 500 East Pratt St. in downtown Baltimore, takes the elevator and emerges seconds later on the 7th floor, where he walks into his office and puts down his brief case. There, after plopping down in his chair, he boots up his computer and responds to e-mails. Then he begins to think about how to structure an employee health benefit program for clients ¿ unless he hasn't already done so overnight. A short while later, after setting aside the "big picture" concerns of how to best serve his clients, his mind turns to other responsibilities, like helping fellow professionals find positions elsewhere in the industry, and leading newcomers into the industry by hiring Early Career Development colleagues right out of college and putting them on a fast track. Pro-bono thoughts come frequently to him. In light of the economic downturn, for example, LeBlanc and his office mates elected to cancel their holiday party and instead donate the money they saved to the United Way of Maryland and the Johns Hopkins Ronald McDonald House. When funds were not available for a summer outing with employees and their families, LeBlanc and two co-workers funded a crab feast out of their own pockets. This is vintage LeBlanc ¿ on the one hand, a man who doesn't in the least mind dipping into his own pocket to help out, and on the other a tested leader capable of winning over the most hard-boiled of corporate benefits directors disdainful of outside consultants. Whether it's out-of-pocket expenses for colleagues in need, or delivering more than $1 million in savings by restructuring benefits programs, for LeBlanc, the actions represent two sides to the same responsibility coin. --By Cyril Tuohy
Responsibility LeaderTM: Robert L. Croy - Senior Vice President Lockton Financial Advisors, Kansas City, Mo. Category: Retirement The Long, Long, Long-Term Man Robert L. Croy, senior vice president with Lockton Financial Advisors LLC, would make any astronomer proud. That's because Croy not only goes "above and beyond," but way, way beyond. He has to, because that's what you do when you're in the retirement planning business. It's the kind of business in which you're trained to make other people's money last--and your own as well. By definition, that's a policy of responsibility. A past president of the Omaha Association of Life Underwriters, past chairman of the Nebraska State Committee of Employee Benefits, and past board member of the Kansas City Employee Benefit Professional Association, Croy is well connected when it comes to the retirement benefits industry. At every turn, Croy impresses upon clients, family, and even Generation Y, the importance of saving as much as possible and saving as early as possible. His policy is simple, really. It's to hammer home the importance of compound interest. Put aside the plethora of charitable causes to which Croy and his team at Lockton contribute for a minute, and think about the tens of thousands of salaried workers employed by Lockton clients. It's those workers who will one day turn around many years from now and be grateful for having put away money early, for themselves, their children and their children's children. And it's at that moment that Croy will have exerted his most profound and lasting influence. That's when Croy will have proved himself a leader with the ability to change the direction not only of the lives of those he knew, but the lives of those he will have barely known. --By Cyril Tuohy
Responsibility LeaderTM: Veronica Paredes - Senior Vice President, Client Service 401(k) Advisors, Aliso Viejo, Calif. Category: Retirement Each and Every Day Business journalists seem to be tripping over each other in their haste to bestow awards on Veronica Paredes. In the past three years, she has received awards from Institutional Investment News (Rising Star), 401kWire.com (Top 40) and Plansponsor Magazine (Most Successful Advisory Team of the Year). Now Risk & Insurance¿ has honored Paredes as a Power BrokerTM and a Responsibility LeaderTM for her work in finding creative ways for workers to save for retirement even when the markets are a wreck and jobs are hard to come by. As a successful and award-garnering benefits consultant who has yet to turn 40, Paredes is bound to attract attention. Yet, it seems to be others she is thinking of more often than not as she has participated in a local "Out of Darkness" suicide awareness walk, been a sponsor of Breast Cancer Awareness and ridden in an AIDS RIDE cycling event. Paredes also has made investing more attractive for clients' employees by creating a second level of customization for the portfolios of individuals within a company's retirement investing portfolio, not just the portfolio of the company plan overall. The way her CEO describes her, it is Paredes' intensity in her job and the empathy that she has for plan sponsors and participants that makes her such a standout in the industry. It is Paredes' self described passion for her job that comes through to us as authentic. After all, in keeping with that "higher purpose" we talked about elsewhere, we're talking in her work about giving hardworking people the tools they'll need to sustain them in retirement. "It is making a difference each and every day," is how her CEO describes her impact. --By Dan Reynolds
Responsibility LeaderTM: Annette Dowdle - Senior Vice President HUB International Gulf South Ltd., Metairie, La. Category: Healthcare Where Service Trumps Money For Annette Dowdle, senior vice president of HUB International Gulf South Ltd., service is more important than money. That's the way it has to be if Dowdle insists on following a policy of responsibility. When the insurance carrier of one of Dowdle's clients insisted the client offer short-term disability policies to minimum-wage employees who already had the coverage as an employer-paid benefit, Dowdle and her team worked to squelch the plan. The reasoning was simple. "Although revenue could have been generated from the sale of these products, helping this client maintain a happy and stable employee base was more important to us." That's the benefits business. It's less about maximizing profits and more about helping clients provide what is right for their employees and that's a responsibility Dowdle takes seriously--like the time she helped clients in the aftermath of Hurricane Katrina. Displaced by the storm, Dowdle and her team helped clients stay up to date and connected--even if it meant hand delivering benefits-related documents to displaced clients. Dowdle said she is also proud of the mentoring role she plays within the industry, having identified promising employees for more career training and giving advice to younger peers on how to break into the profession and rise to leadership positions. Doing the right thing also means Dowdle works with clients to help them steer clear of U.S. government penalties associated with tax and compliance issues around the Employee Retirement Income Security Act (ERISA), the Health Insurance Portability and Accountability Act of 1996 (HIPAA), and the Family Medical Leave Act (FMLA). A recipient of numerous HUB International awards for her work, Dowdle also serves on the boards of fund-raising organizations and on community advisory boards. --By Cyril Tuohy
Responsibility LeaderTM: Mike Barone - President and CEO Intercare Insurance Solutions, San Diego Category: Disability The Higher Purpose At a recent insurance conference, former Secretary of State Colin Powell reminded listeners to be mindful of the "higher purpose" in their work. Mike Barone, a Risk & Insurance® Responsibility LeaderTM in the healthcare category, is evidently one who doesn't need reminding. In the wellness programs he has created for his clients, Barone is effecting real, positive change in people's lives. A 29-year-old male who participated in one of Barone's health assessments cut his daily caloric intake from the 4,000 to 5,000 calorie range to the 1,700 to 2,000 calorie range. The life of another young man in the same company was probably saved when a blood withdrawal as part of a wellness program exam detected early stage thyroid cancer. The cancer was caught early enough to be successfully treated. Yet another client's life expectancy was vastly improved when Barone's company intervened with a carrier to gain approval of an insulin pump for this critically afflicted diabetic. The work Barone is doing has not gone unnoticed by other outlets, specifically the White House. On July 24, 2009, five case studies on value-based benefits were presented to a special advisor to the White House. Clients of Barone's comprised two of the five case studies. Barone's goal for his clients is to improve their overall health and not just function as a transactional agent for them. His investment in a chief medical officer in his company is the only such investment in San Diego. As befits a man of his thoughtfulness, Barone also steps outside of the corporate and business world to help his community in other ways. He sponsors and is actively involved with the La Jolla and Point Loma soccer teams. He also supports the San Diego Opera, the Monarch Schools and Center for Community Solutions. --By Dan Reynolds
Responsibility LeaderTM: Philip A. Peterson - Senior Vice President Aon Consulting, Glen Mills, Pa. Category: Retirement Blue Collar It's become a maxim for students of the game that insurance is a big driver of behavioral change. Old Ben Franklin wouldn't insure your house if it was made of wood, and so people built with brick. And in the increasingly acrimonious world of public and private sector budgets, the size of the pension burden is becoming more and more of a factor in company bankruptcies--see General Motors--and the abilities of many cities to stay afloat. Now enter Philip Peterson, a senior vice president with Aon Consulting who did battle in a major East Coast city, negotiating with powerful city unions to arrive at retirement benefit levels that wouldn't break the city budget. His solution involved increased cost-sharing on the part of city workers, a concept popular with taxpayers, and an increased vigilance on the part of the city on its workers' length of tenure. Peterson's goal wasn't just to cut, cut, cut. He maintained a program that kept quality benefits in place for thousands of workers all the while feeding the right tidbits to a local media that can only be described as voracious. The role played by increasingly burdensome public employee pension and other benefit programs is far from being resolved but Peterson is in the thick of the fight. The work he does to maintain economic equity in one big city is just the day job aspect of his public awareness. He serves as a board member of the Economy League of Southeastern Pennsylvania and the statewide Pennsylvania Economy League. But we're not done. He also co-chairs the governor's Early Learning Investment Commission and is a board member of the Partnership for America's Economic Success. --By Dan Reynolds
Risk for What's Right? - "Only buttons survived, silent witnesses to a heinous crime, they keep rising to the surface, the only markers of their grave, a deathly silence and a rising fog shroud the Katyn forest."
Risks of the Cyber-Hurricane - When we think of big, costly catastrophes, we typically think of hurricanes, earthquakes and acts of terrorism.
Robert L. Croy - Senior Vice President Lockton Financial Advisors, Kansas City, Mo. No More Fees, Thanks With the market struggling, JP Morgan wanted to charge extra fees to Cambridge Information Group but Robert Croy--Cambridge's retirement-benefits consultant--would have none of it, said Delores Snowden, HR director at Cambridge. Croy negotiated with the bank to make sure the plan did not get charged new fees--after all, retirement plans need to keep as much money as possible these days. In another instance, Croy needed to contact an ERISA attorney to help Cambridge solve a certain problem. Croy made sure the legal fee was waived. "He went to the ERISA attorney on their dime; that's not something I would expect him to do," Snowden said. Pinched for cash, more than 20 companies came to Croy with the idea of eliminating their 401(k) matches. But Croy enabled them to save the match by lowering it or changing it to a year-end match so the company could gauge the recession's impact on its business. Because of Croy, plenty of workers did not see their retirement plans significantly affected. Suzanne Rosenthal, vice president of HR at Taylor-Wharton International, has used Croy as a consultant several different times throughout her career--mostly when her company has big issues to tackle. Her latest partnering was in November 2009, when the company was going through a Chapter 11 reorganization. "(I always partner with Croy) when a corporation is going through a mass transition--an emergence from bankruptcy, a restructuring or acquisitions," Rosenthal said. "He just has this key ability to read my needs before I even know what they are."
The Changing Face of Employee Health Benefits - While employers grapple with how the new healthcare law will affect them, brokers scramble to find innovative ways to decrease costs without cutting benefits.
The Responsibility Leader® Designation - For brokers deserving of the Responsibility Leader® designation, their leadership extends beyond the professional communities they serve and into the personal communities where they live.
Todd Chambley - Senior Vice President Aon Consulting, Atlanta Always Accessible When one company acquires another, finding the employee-benefits structure that works for both the retained employees and the new ones can be one of the biggest challenges. And when the newly acquired company is just as large as the acquiring one, the benefits challenges are that much more pronounced. "The volume and complexity has, for me, been a little overwhelming," admits a bank vice president involved in the above acquisition. But with Aon Consulting Senior Vice President Todd Chambley on board during the acquisition just described, the process became much easier. He and his team did extensive analysis of the existing offerings as well as the numerous complex executive-benefits arrangements--such as split-dollar executive-benefit plans and corporate-owned life-insurance programs. Chambley consolidated the offerings and even helped communicate plan changes to employees. Chambley's ability to take complex, technical issues and explain them to nontechnical people at the bank proved to be extremely helpful, the vice president said. "He's multiple states away and works for a consultant but you wouldn't even know it--he's so good, he's like a co-worker," the vice president said. Another asset is Chambley's accessibility. "He makes himself available in extended hours. If I send an e-mail late in the evening, he responds," the vice president said. "Late evenings, early mornings, via BlackBerry, via home phone ... he never lets me down."
Tort Reform Writ Large - Medical-malpractice tort reform is working in Pennsylvania. Now, if only the state's lawmakers could manage their expenses and keep their mitts off of the state's public med-mal insurance fund.
Toxic Samples: Pollution Liability Claims - An overview of the current state of affairs in the liability insurance market for U.S. life sciences industry.
Veronica Paredes - Senior Vice President, Client Services 401(k) Advisors, Aliso Viejo, Calif. 'Like She Laid Awake at Night' A sign on Jim Johnson's door says it all. It says that if any Vanguard Health Systems employee--which includes workers at 16 hospitals in Texas and Arizona--has questions about their 401(k), just call Veronica Paredes, senior vice president of client services at 401(k) Advisors. Johnson, senior vice president of benefits at Nashville-based Vanguard Health Systems, said Paredes' customer service cannot be beat and she takes it personally when employees are uncertain about aspects of their plans. "It's like she laid awake at night waiting for someone to call her and ask questions," Johnson said. He noted that Paredes demanded to know any 401(k) question that came Johnson's way from employees, so she could better serve their needs in the future. Paredes led plenty of presentations directed at Vanguard employees, some even in Spanish for the company's considerable Spanish-speaking workforce. "She was the go-to face for our company," Johnson said. Paredes and her team did a request-for-proposal search for a plan sponsor in Northern California and, by lowering fees and improving investments, she helped lower the total plan cost by $600,000 per year. Mark Hickman, compensation manager at Vanguard, said he's new to the healthcare industry and having Paredes to rely on has been a blessing.
William "Flick" Fornia - Senior Vice President Aon Consulting, Denver Agility--It Isn't Just For Gymnasts Strapped for cash, the Denver Public School Retirement System put Aon Consulting Senior Vice President William Fornia (everyone calls him "Flick") to work to devise a way to keep its $3 billion pension program going. After he was four months into the project, the pension program was absorbed by the Colorado Public Employee Retirement System--an idea kicked around for years but always pushed aside, according to John MacPherson, chair of the funding study group and former chair of the funding study committee. In mid-stride, Fornia had to change his consulting approach. He began working on a study to help the school district make sure their employees got the best deal possible. The study analyzed potential changes and showed how the school district could maintain appropriate benefit levels and provide for reasonable employer/taxpayer funding requirements. The report he gave to the school district blew them away. "I don't have that many days that I don't look at that information," said MacPherson, who continues to use the study to iron out the details of the program. "It's just an incredibly thorough study, an incredibly applicable study and a forward-looking study. It just continues to have validity." Norm Ruggles, retired director of the school system, said that "without Flick we would have had to reduce benefits, no question about it."
Wooing the Young - From captive insurance trade groups to wholesale brokers, insurance woos a new demographic.
The impact of technological change on risk management (Computer Weekly) - Social media technologies aren't the only newfangled IT items risk managers, CIOs and CFOs should worry about. This article does a good job summing up the other biggies, like outsourced data management, data sharing with business partners and warehoused customer data. I guess that's one biggie: data.
AP Exclusive: Workers describe failures on oil rig (AP) - Associated Press got exclusive access to statements from workers who were on the Deepwater Horizon drilling rig when it blew up, as well as the moments and hours leading up to the accident. The accounts of the explosion and its aftermath are chilling, but just as fascinating and relevant are the stories that could determine who is to blame for the explosions.
Airline's safety violations clear path to pursue reimbursement - Where there is a factual question as to whether the lack of safety guards caused injury to the contractor's employee, the workers' compensation carrier for the contractor may pursue a claim for subrogation against the airline.
All You Don't Need Is Love - On my way out of work, I hug you good-bye. You hug me. Then I wipe out. Do I get workers' compensation benefits for the slip and fall?
Arizona: Lawmakers endorse privatization of state comp provider - An Arizona committee has endorsed legislation that would privatize the state's workers' compensation insurer.
Narrow scope of release in workers' comp case allows discrimination suit to proceed - Waiver language that is too narrow may leave the employer exposed to liability on issues it thought it had resolved.
New York: Study shows long-lasting lung damage from WTC dust - Rescue workers from the New York City Fire Department are experiencing long-lasting lung damage related to exposure to dust at the World Trade Center on 9/11.
OSHA to consider business concerns in finalizing MSD recordkeeping regs - The Occupational Safety and Health Administration is preparing to finalize regulations that will require employers to list work-related musculoskeletal disorders separately from other conditions on the agency's 300 Injury and Illness Log.
Reinsurers on Edge (updated) - Reinsurers, already booking record catastrophes losses in 2010, now face the unknown hit from Deepwater Horizon and the onset of hurricane season. Are downgrades in the offing?
Trip to vending machine breaks connection to employment - If the employee is not performing employment services at the time of the injury, the injury may not be compensable.
WORKERSCOMP ForumTM Update: May 27, 2010 -
U.S. Treasury: AIG risks reduced, recovery uncertain (Reuters) - A senior U.S. Treasury official testified on Wednesday that it is uncertain if the U.S. government will ever get a full payback on the bailout funds it gave AIG. The official did say, however, that Treasury would seek to sell its stake in AIG as soon as the insurer's rating gets back to single A status. It is estimated that AIG is now operating with about $132.3 billion of financial support, including $83.2 billion in loans and interests from the New York Fed.
Pacific Northwest faces higher risk of more frequent earthquakes: study (Vancouver Sun) - It appears that there is a one-in-three chance that a major quake will strike the Cascadia Subduction zone in the Pacific Northwest in the next 50 years. That's a bit better odds than previously thought, as it used to be assumed that a major quake happened once in every 500 years or so. (The last one occurred in 1700.) According to new research, though, the quake area is made up of at least four faults, not one big one.
Remaining Vigilant With Safety Initiatives as Economy Improves - Historic data indicates that new hires and inexperienced workers are more prone to injuries. Workers' comp experts advise employers to focus on safety the more the economy picks up.
Technology for the Worst of Times - Look to the latest technological innovations, workers' compensation professionals, to survive the choppy waters that the NCCI forecasted for our future.
Thomas Jefferson University Change Creates Workers' Compensation Success - When Thomas Jefferson University and Jefferson University Physicians shifted management of its workers' compensation program from human resources to risk management in 2005 as part of a larger business plan, this Philadelphia academic medical center quickly realized it had a tremendous opportunity to reduce costs, without reducing employee care.
Editor's Choice Stories: May 25, 2010 -
High Court Backs Big Oil - Would the Supreme Court have decided differently in this recent service-station franchisee dispute had the case come after the BP oil rig explosion?
Microinsurance Becoming Solid Investment for Global Insurance Industry (updated) - LeapFrog Investments has closed on a $137 million microinsurance fund, shining the spotlight on what's becoming a larger part of the insurance industry's global operations.
New Product Announcements: May 25, 2010 -
People on the Move: Insurance -
People on the Move: Law -
People on the Move: Risk Management -
R&I One®: May 25, 2010 -
'Frail' Property-Catastrophe Market Poised to Pop - Could an active hurricane season and increases in liabilities in state-run pools push the property-catastrophe insurance market over the edge?
U.S. Justice Department ends AIG probe (Financial Times) - It's official. The Department of Justice will not be making a criminal case against either AIG as a whole or any of its senior executives. The feds' attempt at a case stemmed from a Feb. 2008 AIG revelation that auditors had uncovered a "weakness" in the way it valued its financial products unit, the infamous division led by Joseph Cassano.
After nine bearish years, analyst finally likes Marsh (MarketWatch) - An insurance analyst at FBR Capital Markets is upbeat on global insurance broker Marsh, largely thanks to the work of MMC head Brian Duppereault. Following the Eliot Spitzer scandal, Marsh has had a tough time turning it around, lagging behind competitor Aon, according to the analyst, because of contingent commissions, a "disregard for expenses" and "incompetence" by the former management team.
California: Comp rates remain relatively unchanged in '09 - Workers' compensation rates in California saw little change in 2009, according to new data. However, the report by the Workers' Compensation Insurance Rating Bureau of California found that rising unemployment affected insurers' gross written premium, which was down significantly over 2008 numbers.
Colorado: Talks break down in Pinnacol separation plan - A plan to separate the Colorado-chartered, but independently run and funded workers' compensation insurance firm from the state's control is dead in the water.
Employer loses bid to show accident was caused by worker's intoxication - The presumption that an employee's injury was caused by his intoxication does not arise when he is not offered a drug test.
Failure to perform light duty after surgery doesn't amount to bad faith - A worker who was medically released for two weeks does not commit bad faith by failing to perform light duty when he was unaware that his physician issued an updated release directly to the employer.
Maine: Subcontractor predetermination act takes effect - Legislation intended to simplify the predetermination application process for construction subcontractors, L.D. 1815, "An Act To Clarify the Construction Subcontractor Status of the Maine Workers' Compensation Act of 1992" is now in effect.
Risk Managers: A Dying Breed? - Is the old-school risk manager, with his insurance-buying ways, a creature of the 20th century? Does he need to update his skill set, or disappear?
Shift Work Linked to Sleep Problems in Younger Employees, Study Finds - Working the night shift interferes with sleep, particularly for workers in their 30s and 40s, according to a recent study.
Drilling for answers (CFO) - You want to break down the BP oil disaster into three digestible, 30,000-foot-level, risk management lessons for CFOs? Lesson 1: Aggressive, ROI-driven companies discount risk and fail to properly test scenarios. Lesson 2: Complex projects and systems involving multiple players require the utmost in communication. Lesson 3: When mitigation measures aren't available, people tend to discount the risk to make themselves feel better.
National Restaurant Association, UnitedHealth team up on insurance for restaurant workers (Chicago Tribune) - Instead of wringing their hands and pleading with their benefits consultants for answers, here are employers crafting a viable response to the healthcare reforms. About 10 percent of America's uninsured individuals work in restaurants, so the National Restaurant Association has created a healthcare product in anticipation of mandatory coverage.
The Day the Musical Instruments Died - For many musicians, the losses from the Cumberland River floods in Nashville will not even be reimbursed. For the city and its businesses, total losses could reach $2 billion, with millions of dollars in business-interruption losses.
New Madrid: New take on a very old earthquake (Scripps Howard) - New research suggests that the famous New Madrid quakes of 1811-12 were not as strong as most people believe. This could have an impact upon the building codes in affected areas, and perhaps it could quiet some fears in the insurance industry about a future reoccurrence (there was some scary talk going around the industry a few years back of whole cities collapsing).
Sustainable risk management (Build2Sustain) - Insurance companies are in the business of risk, so when it comes to even a positive topic like green building, it's their job to focus on the risks. Here's a biggie underwriters ought to consider: the right of third-parties to challenge the LEED certification status of a building. This challenge would be out of the control of the building designers, builders and owners (and their insurers).
Is the city too generous? (Colorado Springs Independent) - It appears that the workers' comp self-insurance fund for the city of Colorado Springs is a bit underfunded--it contained $500,000 as of December 2008, while outstanding claims stood at $3.8 million. Same case with the city-owned utility's self-insurance fund--at the end of 2008, the fund contained $1.4 million with outstanding claims of $1.9 million. Now there are calls to reduce comp benefits to cope. Makes you wonder how many self-insuring municipalities and companies are in similar boats.
Clumsy or Comp Worthy? - An auto service technician is standing still and talking, but somehow manages to fall over. He's at work, but is the injury work related?
Conflicting testimony of back injury undermines worker's credibility - Workers' compensation hearing examiners are allowed considerable discretion in weighing and deciding the credibility of witnesses.
Congress to Curb OxyContin Abuse? - Federal lawmakers introduce new legislation against OxyContin, but workers' comp and pharma experts say the bill isn't the right solution to tackle off-label prescribing and drug abuse.
Florida drug costs significantly higher than other study states - The payment per claim for prescription drugs used to treat injured workers in Florida was nearly 40 percent higher than in most study states, according to the Workers Compensation Research Institute.
OSHA program targets hazardous government work sites - OSHA investigated hazardous federal work sites during FY 2009.
Untimely notice of work injury to employer sinks claim - To prove that the employer was given notice of an injury, the claimant must show that the employer knew or was informed of the injury and that it was work-related.
WORKERSCOMP ForumTM Update: May 20, 2010 -
Washington: DLI clarifies section of window cleaning standard - The Department of Labor and Industries has added language to the Window Cleaning Safety, Section 5.7.12.
Becker says reinsurers pushed by clients to make acquisitions (Bloomberg) - Three is the magic number for reinsurers. That is, $3 billion in equity. According to Marty Becker, CEO of the newly formed Alterra Capital Holdings (Max + Harbor Point), cedents and investors are the ones deciding what is the adequate size for a reinsurer. And small is out.
Deepwater Horizon: The Wrong Side of Hellfire (updated) - Deep water oil drilling platforms come under new scrutiny in wake of disaster.
Process Vs. Capabilities: Part 3 - What do monkey knife fights, SOX and Mr. Winston Wolfe have to do with risk management? They can help focus us on achieving the right balance between process and capabilities.
Lloyd's of London warns of 'perfect storm' threat to insurance market (Guardian) - Richard Ward, CEO of Lloyd's, today will be telling the gathering of insurance executives at the Insurance Day London Summit that this year is proving to be one of the worst for property/casualty insurers. One more large loss (following the latest, the BP oil platform explosion) could push the industry into the red for the year. Is this all posturing by underwriters to encourage a hard market, or are insurers really terrified of the impending hurricane season?
A Voice Silenced - Former Risk & Insurance® columnist Tom Slattery has passed, and the insurance trade press lost one of its most informed voices.
Editor's Choice Stories: May 18, 2010 -
New Product Announcements: May 18, 2010 -
People on the Move: Brokers -
People on the Move: Insurance -
People on the Move: Workers' Comp/Disability -
R&I One®: May 18, 2010 -
The Hartford Celebrates a Rich History on Its 200th Anniversary - The old-line carrier celebrates its bicentennial and is intertwined with the history of a developing nation.
Is Eliot Spitzer running for office or what? (Metropolis WSJ Blog) - "I've never said I would never consider running for office again," Eliot Spitzer has said, though he is all but ruling out 2010, perhaps. This blog post provides some of the latest links to interviews with the former attorney general and governor of New York about his intentions to attempt the role of the phoenix.
Borgata Risk Manager Lowers His Risk Exposure - A gaming risk management veteran heads for the nation's heartland, lower taxes and a future perceived as more secure.
Employer must pay worker's husband for prescribed attendant care - The Georgia Workers' Compensation Act does not prohibit an injured worker's spouse or other family members from providing attendant care services as long as the services are medically prescribed and are reasonably required.
New York: 13 self-insured groups win ruling against WC board - Thirteen workers' compensation self-insured groups recently won a two-year legal battle with the New York State Workers' Compensation Board over a series of assessments.
Ohio's high court finds 'deliberate intent' standard constitutional - The Ohio Supreme Court ruled the state law that imposes a "deliberate intent to cause injury" standard in an intentional tort action did not violate the Ohio Constitution.
Searching for the Best Workers' Comp Social Networking on the Web - Workers' comp professionals can tap into unprecedented networking and educational opportunities at the top social networking sites.
Washington state: Builders seek WC reform through ballot initiative - The Building Industry Association of Washington recently filed an initiative that would allow private insurers to enter the state's workers' compensation system.
What job conditions lead to stress? - These are examples of job conditions that could lead to increased stress for employees.
Work-Related Stress Poses Risks if Left Unchecked - Fears of layoffs and fallout from the economic recession have pushed the stress level in the workplace to its highest point in decades. As we close out the 18th annual Stress Awareness Month, workers' compensation and safety professionals are warning employers of the consequences of failing to address this problem.
FSA criticises brokers' anti-bribery and corruption standards (Insurance Age) - The British Financial Services Authority issued a report on current anti-bribery and corruption standards at 17 insurance brokerages. The firms did not score high marks for being careful enough. And one firm in particular received a formal warning last year for questionable third-party payments. What would be the findings if similar research was done in the United States?
Insurers shun California's request to stop investing in Iran-related companies (L.A. Times) - According to the California Department of Insurance, 296 insurers have failed to comply with Commissioner Steve Poizner's edict that they not invest in companies doing business in Iran. In 2008, insurers held $6 billion in investments in Iranian-involved corporations, out of $4 trillion worth of investments held by insurers total. Yet insurers are not budging.
Brokers Deliver Mixed Earnings Picture in First Quarter - Marsh, Willis and Arthur J. Gallagher post increases, while Aon and Brown & Brown suffer.
15 biggest job losers (Fortune) - Two insurance companies made the list of the 15 biggest job-cutters in the Fortune 500 last year: AIG and Berkshire Hathaway. The latter was ranked No. 6 with 24,083 jobs lost (though the major cuts appear to be at noninsurance companies). And AIG ranked No. 7 with 20,000 jobs lost.
Broader interpretation of disability under ADAAA propels case forward - The Americans with Disabilities Amendment Act took effect Jan. 1, 2009. Claims involving adverse employment actions that can be linked to an employee's actual or perceived disability will be assessed under the broader interpretation of the definition of disability.
Coming out Smelling Like Roses? - Oxygen-dependent and unable to work, a nurse blames a co-worker's perfume. What's your call in this classic case?
Employer faces fraud damages for 'active misrepresentations' - An employee's allegations that his employer made fraudulent misrepresentations concerning his workers' compensation claim do not arise out of and in the course of his employment, as the relief he seeks cannot be compensated by the Workers' Compensation Act.
Maryland: Insurers laud decision not to take money from state comp fund - The American Insurance Association praised lawmakers in Maryland for dropping a provision that would have transferred $20 million in surplus funds from the state's Injured Workers' Compensation Fund.
Meeting of the Weather Insurance Minds - Growth in the weather risk niche could be bolstered by connections with the insurance-linked securities space, along with expansion across national borders and industries.
OSHA to consider business concerns in finalizing MSD recordkeeping regs - The Occupational Safety and Health Administration is preparing to finalize regulations that will require employers to list work-related musculoskeletal disorders separately from other conditions on the agency's 300 Injury and Illness Log.
Oklahoma: House approves reform of comp system - The Oklahoma House of Representatives passed legislation to reform the state's workers' compensation system. The reform measures, approved in the Senate in March, now head to conference committee for further consideration before being sent back to both chambers for a final vote.
The Productivity Index - Measuring adjuster productivity and controlling caseload are huge issues for claims departments. Here Bill recalls a tool from his past that came in very handy.
WORKERSCOMP ForumTM Update: May 13, 2010 -
The workers' comp whistleblowers (Texas Tribune) - Attorney Cathy Lockhart had been investigating possible fraud on the part of medical providers as part of the Texas Division of Workers' Comp. She got fired for her efforts. Just how deep does the corruption go?
Editor's Choice Stories: May 11, 2010 -
New Product Announcements: May 11, 2010 -
People on the Move: Brokers -
People on the Move: Insurance -
People on the Move: Legal -
R&I One®: May 11, 2010 -
Slew of Major Carriers Report Strong Profitability in Quarter - Big-name carriers--AIG, Zurich, CNA, Hartford--report higher 1Q numbers as disciplined underwriting and diversification help them absorb CAT losses.
'Bear Stearns' risk management practices were robust & effective' (Here Is the City) - Warren Spector, co-chief operating officer and president of Bear Stearns from 2001 through August of 2007, testified last Wednesday before the Financial Crisis Inquiry Commission. Here find the transcript in which he makes the statement in the headline. It's getting hard to tell what lessons should come out of the financial debacle ... the risk management issues we've talked about for the last year, or the revisionist lessons now emerging?
Being a commercial insurance agent has its challenges in Oklahoma City (NewsOK) - Mike Ross, president and CEO of Insurica Insurance Management Network gives one of the clearest and simply compelling explanations for why commercial insurance brokerage is a pretty interesting gig. Mainly, it's the diversity of the clients.
Agency notifies 15,000 workplaces with highest injury, illness rates - The Occupational Safety and Health Administration recently sent a letter to approximately 15,000 workplaces with the highest number of injuries and illnesses resulting in days away from work, restricted work activities or job transfers, known as the DART rate.
Courier avoids dismissal by suggesting leave as reasonable accommodation - Limited leave periods may be reasonable where they enable employees to recover and perform their essential functions and where it does not cause undue hardship for the employer.
Describing Risk Managers' Attitude Toward ERM Not Easy - Conversations with risk managers at RIMS and three recent surveys point to very ambivalent attitudes and hesitant approaches to ERM.
Employee loses bid to increase medical mileage rate - In Florida, there is no legal authority that requires a JCC to adjust the amount of reimbursement for medically related travel expenses.
Majority of Physicians Say Employers Should Play Role in Workers' Health - Most doctors believe that employers should play a role in the health of their workers, especially those with chronic conditions such as diabetes and heart disease.
Nevada lawmaker introduced boost protections under OSHA state plans - Federal legislation introduced in the House of Representatives would strengthen protections offered under state Occupational Safety and Health Administration plans.
States pursue efforts to crack down on misclassification of employees - Officials in Connecticut and Vermont recently announced new measures and legislation aimed at cracking down on employers who misclassify workers as independent contractors to avoid paying workers' compensation and other taxes.
Success by agreement entitles construction worker to attorney's fees - In Pennsylvania, when a worker successfully prosecutes a claim, a workers' compensation judge must approve an award of attorney's fees if there is an agreement between the worker and the attorney and the agreement does not exceed 20 percent of the amount awarded.
AIG Posts First-Quarter Profit - Investment income boosts insurance giant's fortunes. Its Chartis unit reports $7.6 billion in net premiums written.
Leahy amendment would repeal antitrust exemption for insurers (California Healthline) - First it was on the table, then it was off the table, then back on, then back off ... and now, back on. We're talking about the repeal of the federal antitrust exemption for health insurance companies. Sen. Patrick Leahy, D-Vt., added it yesterday as an amendment to the financial services regulation bill. Perhaps it will have more luck passing there than it did as part of the healthcare reform law.
Swiss Re confident it can repay Buffett (Reuters) - Swiss Re hit some hard times last year and had to turn to rival Berkshire Hathaway for a convertible loan. Now perhaps things are looking up, as the world's second biggest reinsurer reported $12 billion in excess capital, adding that it is anticipating being able to pay off Buffett's loan and regain its former AA rating. Yet its CAT losses for the first quarter totalled $720 million (it usually averages $1 billion for a year), so keep your eye on the third quarter (and hurricane season) to see if Swiss Re can stick to the plan.
Doctor's testimony on full recovery doesn't require physical exam - In Pennsylvania, a medical expert's opinion that a worker has fully recovered can be based on sufficient evidence even if the expert has not personally physical examined the worker.
Florida: House committee hopes bill will strengthen risk management program - A Florida House committee unanimously passed legislation aimed at strengthening the state's risk management program and reducing workers' compensation costs.
Healthy Use of Coming and Going? - From the YBTJ vault of classics: Does the Coming and Going Rule apply for home health aide workers?
Liberty and Profits for All in the Middle Market (updated) - Liberty Mutual Middle Market trumpets its successes over the last year, since retiring the Wausau brand and marketing only through agents and brokers.
New York: Judge raises objections with 9/11 settlement - A federal judge put the brakes on a $657 million settlement between the more than 10,000 police, firefighters and construction workers who suffered injuries during rescue and recovery efforts at the World Trade Center and the City of New York and its contractors, citing confusing terms of the deal and high attorney's fees.
Ohio: Comp board reviews options for drug-free safety program - The Ohio Bureau of Workers' Compensation is reviewing proposed rules for a new program aimed at preventing workplace injuries attributed to the use and abuse of drugs.
To Self-Insure or Not: Part II - In part two of this series, we cover additional alternative risk-financing options and come up with the same conclusion: Loss control comes first.
Trucking company's '100 percent healed' policy causes controversy - Employers that implement 100 percent healed policies precluding any individuals with injuries or illness from working may be committing a per se violation of the ADA.
WORKERSCOMP ForumTM Update: May 6, 2010 -
Insurance industry braces for liability hit from oil spill (MarketWatch) - The insurance trade press has been bandying around a $1 billion to $1.5 billion figure for the hit expected from the Deepwater Horizon oil rig mess. But let's also factor in environmental liability. According to this article, Transocean has $700 million in environmental limits, while Cameron (which designed the blowout preventer) has $500 million. Experts suggest total cleanup costs could reach $7 billion, while Congress is passing a bill that could raise the liability bar to $10 billion.
On defensive, BP readies dome to contain spill (New York Times) - As BP tries to mitigate the damage--environmental and reputational--from the exploded oil rig in the Gulf, accusations of liability are starting to fly. Dig deeper into this New York Times article to find, for instance, that perhaps the rig was digging thousands of feet deeper than its permit allowed. Transocean (the rig's owner) and Halliburton (a contractor on-site) are in deep too.
Editor's Choice Stories: May 4, 2010 -
New Product Announcements: May 4, 2010 -
People on the Move: Brokers -
People on the Move: Insurance -
People on the Move: Law -
R&I One®: May 4, 2010 -
The RIMS International - More than 1,000 attendees from other countries attended this year's RIMS, adding an international flavor to the crowd of 9,000+ at the show.
The RIMS Perspective From Swiss Re's Top Perch - How does one company get prime real estate on the RIMS showroom floor? How concerned about fire risk are conference organizers? Why can the convention take place at only a handful of cities? These questions and more answered here.
'Anti-Stacking' Given Due Deference - A Washington court upholds the anti-stacking clause in a commercial policy, enforcing the definition of occurrence and policy limits.
'OSHA Listens' to Recommendations on Health, Safety Matters - OSHA officials recently solicited comments and suggestions from the public on key workplace health and safety issues during "OSHA Listens."
AG: Workers comp claimant caught as exotic dancer (6abc.com) - As if you needed more proof that workers' comp insurers are persistent when it comes to fraud investigation, check out this story from Quakertown, Pa. A woman who slipped and fell at work as a waitress claimed she could not return to work ... yet was uncovered (with the help of a tip) working as a stripper.
AG: Workers' comp claimant caught as exotic dancer (6abc.com) - As if you needed more proof that workers' comp insurers are persistent when it comes to fraud investigation, check out this story from Quakertown, Pa. A woman who slipped and fell at work as a waitress claimed she could not return to work ... yet was uncovered (with the help of a tip) working at a gentlemen's club.
Berkshire insurance whiz Jain "cannot be replaced" (MarketBeat Blog) - Is Warren Buffett changing his stand on the old risk management process vs. capabilities debate? Or was his view misconstrued previously? If you remember a couple months back, Buffett heavily plugged Ajit Jain, the head of his reinsurance operations. Now, he took a step back and intimated that possibly the organization would survive Jain's departure, given its great "culture."
Nashville flooding: Twitter and YouTube tell the story (Mashable) - Nashville and other parts of Tennessee got hit with their most-ever rainfall over this past weekend, and parts of the Music City's downtown are submerged. As has been the case with many recent news events, some of the best eye-witness accounts (here, photo and video) can be found via social networking sites.
New York will always be a target for terrorism, warn leaders (Guardian) - While the police focus on a possible suspect for Saturday's attempted bombing in Times Square--a white man in his 40s caught on a surveillance camera--the public is reminded of something that political leaders, police, risk managers and insurance companies have known since 9/11: New York is still a prime, if not THE prime, target for terrorists.
Louisiana Bucket Brigade creates map of Gulf of Mexico oil spill impacts (New Orleans Times-Picayune) - New Orleans and the state of Louisiana are mobilizing to prepare for the Gulf of Mexico oil spill. One group has created an "Oil Spill Crisis Map," which tracks the effects of the spill, from fishermen out of work, endangered wildlife, oil on shore, to oil sheens.
California: Trucking industry resulted in costs of $480 million over 8-year period - The trucking industry in California accounted for more than $480 million in workers' compensation medical and indemnity payments from accident year 2000 to 2008, according to a recent analysis.
Colorado: State WC insurer increases its bid for separation - Colorado's state-chartered, but independently run and funded workers' compensation insurance firm is upping its offer to government officials in a bid to break free from the state's control.
OSHA chief testifies on safety legislation - The head of the Occupational Safety and Health Administration said the agency supports legislation to strengthen penalties and increase protections for employees, but it has concerns about the increased financial and workload burdens the bill presents.
One city seeks reimbursement from another for firefighter's injuries - In Connecticut, a paid firefighter who is responding to an on-duty mutual aid call is not "offering his services" to another city's fire department. The other city is not liable for workers' compensation benefits nor is it required to reimburse the firefighter's city for compensation paid.
Panel of surgeons OK'd despite previous change in physician - Alabama's workers' compensation law differentiates between physicians and surgeons. Just because an employer has already provided a worker with a panel of four physicians does not preclude it from being obligated to provide a panel of four surgeons, especially after surgery failed.
The 2010 Vermont Report - 2009 was one of the best in the new millennium for the Vermont captive insurance industry. There were 39 new captive formations last year. Why?
'Mark' My Words - Mark Rothert, the incoming president of the AAMGA for the 2010-2011 term, believes in UFOs.
A 60/40/20 History - The RIMS organization hits 60 but its trade show hits 40. The last time the show was held in Boston was 20 years ago.
A Broker's Chronicle - From the birth of the notion of "cost of risk" to the unwelcome Black Swan, the role of the broker soars in scope and importance.
A Desert of Depravity - Here we are, deep into conference season, which now appears to last 12 months. RIMS is the biggie, but every line has its bash, as do most companies, associations, and Web sites.
A Most Compelling Study - The Louisiana Workers' Compensation Corp. had the vision some time ago to ally itself with a team of medical practitioners and researchers affiliated with Johns Hopkins University.
A Window Reopens for Trade Credit Insurers - With banks still tight on their lending, trade credit carriers see renewed opportunities to make gains in the U.S. market.
BLS: Insurance Job Outlook - The Bureau of Labor Statistics says that between 2008 and 2018, wages in the insurance biz will increase on average 3 percent, versus 11 percent in the economy overall. And the outlook for job creation isn't particularly rosy either.
Bucking Tradition - Microsoft Corp.'s Lori Jorgensen finds herself working in the technology sector's top risk management ranks, at a company that shuns traditional insurance.
Buying Spree Proves Marsh Is Serious about Targeting The Middle Market - Regional broker Rutherfoord the latest in a string of progressively more expensive purchases. At last, it looks as if Marsh & McLennan Agency LLC is serious about the middle-market business.
Camera Ready? - Advances in technology are making it more affordable for organizations to use surveillance cameras on employees in an effort to increase productivity. But do the benefits of such a system outweigh the costs?
Changes Rock Wayne's World--and Ellen's and Janice's - Leading risk managers talk candidly about changes in their profession.
Converging to the Surface - Microsoft's Lori Jorgensen prepares for new risks coming down the pike.
Coping With Orders of Magnitude - The technological revolution--in terms of speed and quantity--has had a dramatic impact on risk management over the past 30 years.
Credit Insurance - Trade credit insurance has a big market in the European Union, but in the United States ... not so much. We talk with the three biggest carriers in the U.S. market to gauge how optimistic they are this will change.
Deconstructing the Head-Hunting Algorithm - The core ingredients corporations are looking for in a risk manager have remained unchanged, even as the scope and scale of risks have broadened beyond what anyone imagined.
Defending the Dome During March Madness - A snapshot of the behind-the-scenes emergency planning for the 2010 NCAA Men's Division 1 Regional Basketball Tournament at Syracuse University.
Dislodged--But Not for Long - Thanks in part to efficient claims processing, a Florida resort is back in business less than 12 months after a fire destroys the property.
Doing Away with 'Dingers' - The old-fashioned way of looking at athletic brain injuries just isn't going to cut it anymore.
Double Bubble? - If we agree moral hazard is driven by the presence of distorted incentives, curbing its threat begins with the incentives that are reinflating the bubble.
Educating the Directors - The expectations placed on the members of healthcare boards of directors are ever-expanding. Organizations that expect to thrive will focus on education and good governance.
Focusing on the New Horizon of ERM - The shape of post-financial crisis enterprise risk management is emerging on the horizon, and it involves better use of number-crunching tools as well as skill sets that have nothing to do with math.
Giving Credit to the Survivors of the Financial Crisis - The president of Atradius Credit Insurance Inc. weighs in on trade credit market trends.
Global Credit Insurance Resources - The International Credit Insurance & Surety Association (ICISA) is the online resource to learn more about the credit insurance market. The ICISA Web site provides excellent answers about the nature of credit risk, what risks can be insured against and which cannot be insured.
HHS/AHLA Article on Healthcare Governance - Developed in collaboration between the American Health Lawyers Association (AHLA) and the Office of the Inspector General (OIG) of the United States Department of Health and Human Services (HHS), "Health Care Director's Compliance Duties" helps to illuminate the correlation between quality measurements and corporate governance in healthcare organizations.
Happy 60th, RIMS! -
How to Manage Being No. 1 - The Vermont captive insurance industry is as booming as ever. Here's why, according to some of the top captive managers in the domicile.
I, Witness - A first-person account of the big changes in enterprise risk management (ERM), and how a more personalized approach is contributing to ERM's breakthrough in popularity.
Imagining the Unimaginable Risks of Being a Director or Officer - Directors and officers often get thrown under the proverbial bus when regulators come investigating wrongdoing at their companies. That's when D&O insurance comes to their rescue, right? Perhaps wrong.
Join the Incident Reporting Revolution - Web-based smart forms capture more detailed, timely incident data, helping risk managers to comply with regulations, save resources and promote loss prevention.
Latest Research on Healthcare Governance - To start digging into the latest research on governance at healthcare organizations, be sure to check out Grant Thornton's surveys in healthcare high performance and the work done by the AHA's Center for Healthcare Governance, particularly the Blue Ribbon Panel on Health Care Governance.
Law of Increasing Costs for Legal Malpractice Claims - The rewards appear to be getting bigger for anyone who can press a successful lawsuit over legal malpractice.
Legal Risk - In this series, we take a look at what issues are affecting the professional liability market for attorneys. Lawyers are often the authors of complaints against defendants. Now, though, they are finding themselves the target of such complaints, in part because the plaintiffs hope to collect on attorneys' professional liability coverage.
Legal Risks In-Depth Series (Part 1): Turning on Attorneys and Realtors - Real estate investors refuse to shoulder the blame in the wake of the burst bubble, so they go after the real estate attorneys' professional liability policies.
Making Claims on Green Buildings - How will green buildings and the insurance policies that cover them perform? Some claims data is coming in with answers.
Modeling Risk and Managing Exposure - High-performance computing (HPC) solutions give carriers the ability to more accurately gauge assessments of risk.
News & Notes -
One Hell of a Ride - The evolution of the Risk and Insurance Management Society Inc. from an insurance purchasing organization to the world's most powerful organization representing the interest of risk management wasn't without its ups and downs.
Opinion: Prisoners of Models of Our Own Design - Catastrophe risk models are ubiquitous in the (re)insurance industry, so much so that insurers have to rely on them even when they know these software tools are not entirely accurate, says one of the founders of the business.
Predictive Modeling Success Requires an Enterprisewide Effort - Predictive modeling is becoming common practice for commercial insurers. Here's how they've been able to properly apply the technology and score better loss ratios and favorable price changes.
Putting Sin City on a Wellness Program - In her latest public risk management feat, Las Vegas' colorful insurance manager, Vicki Robinson, has helped the city win it big with the costs of healthcare for its employees.
RMIS More Than Ever - One of the striking things about the evolution of risk management information systems (RMIS) is that it's been driven only in part by advances in technology.
Reflections by Outgoing AAMGA President Curtis Anderson - Anderson leaves the presidency of the leading MGA association with fond memories, a debt of gratitude ... and a huge potential deal with Lloyd's.
Restock Your Understanding of Transit Risk - Stock throughput insurance goes further than simple property coverage
Revealing the Public Face of Coface - Coface North America CEO Mike Ferrante sees a new opportunity for the trade credit industry to pick up market-share gains as banks make lending more difficult by imposing tougher collateral requirements on borrowers.
Risk Management @ 60 - The 60th anniversary of RIMS prompted us to do a broad examination of how far the whole risk management profession has come in that time, with looks at the pioneers, risk associations, ERM, CROs, technology and more. Access all of the stories here.
Risk Manager: A Future Secure (With a Little Self-Promotion) - Should your CEO start talking risk managementese, be sure to volunteer your services.
Risk Manager: A Title in Search of a Role - Pressed from above and from below, risk management is being squeezed into oblivion.
Some Who Mattered Most - Those who shaped risk management over the past 60 years include former insurance commissioners, alternative risk experts, Fortune 500 risk managers and academics.
Sports Franchises - Sports franchises not only have to hope that their fans' loyalties are stronger than the recessionary urges to stay home on the couch. They are more than ever needing to react to growing concerns about their players' well-being. Click above to read more on the industry, or view the industry risk table to see the major players, their brokers and risk management strategies.
Sports Franchises Industry Risk Report Table 2010 - A listing of some of the nation's top sports-related companies, their risk managers, brokers, captives and risk management programs.
Sports and Concussions Research - Started by former pro wrestler Chris Nowinski, posts research the Sports Legacy Institute from its partner the Boston University School of Medicine and other sources.
Talk of the Credit Trade - A trade-credit insurance executive revels the inside scoop about new opportunities for trade-credit carriers and the upside of the current recession.
The Best Laid Plans - The first annual joint survey of risk managers conducted by Risk & Insurance® and Ernst & Young finds that the insurance claims process is daunting. Focused planning, effective communication and a defined approach drive claims to successful resolution.
The Calculus of Permanence - Controlling costs on long-term permanent disability claims often simply means doing a bit of research.
The Claim and the Insurer: Perception Does Not Always Equal Reality - More than half of the survey respondents had not been through a property or business interruption claim greater than $1 million.
The Deep ERM Dive - Credit ratings agencies have taken it on the chin in the last year with all the failures among financial institutions, whose ratings may not have reflected their true financial strength or vulnerability to risk.
The Front Man - Dan Towle, director of financial services for the state of Vermont, has been a mainstay of the Vermont captive insurance industry for the last dozen years, representing the No. 1 U.S. domicile around the world.
The Latest Disability Data - The NCCI Web site houses some of the top, and easy-to-access, research for the disability management and workers' comp field. Some of their latest reports include research on Medicare and cost containment, claims for senior workers and narcotics in workers' comp.
The Maturing Role of the CRO - Chief risk officers receive new scrutiny in the aftermath of the meltdown. Did CROs not stand up and speak out against reckless behavior, or did companies not take CROs at their word when they warned of danger?
The Rise of the Independents - While at RIMS this year, you might be hearing more about a group of intermediaries called the Independents. This is because the role of independent, nimble brokers will only grow in the future as risk management partners become increasingly more important.
The State of the Stock Throughput Market - Stock throughput insurance can provide a supply chain solution beyond what standard property or marine coverages can provide. Here's a quick review of the market for this unique line.
The Universe of Risk Management Associations - Professional risk associations abound as they experience a new era of growth. How are they all differentiated, and how does RIMS fit into the mix?
Trade Credit Insurance Market Share - The world's credit insurance market is dominated by the big three players: Coface, Euler Hermes and Atradius. Just how much so? This graphical depiction of 2008 credit insurance market share can give a great sense.
Trend Spotting - A soft market has carriers turning up in unusual numbers at the annual Target Markets conference, notes program business veteran Nancy D. Glennon.
Vermont Captive Data: Formations by Industry - We have the latest captive insurance data coming out of the Vermont domicile. Here are Vermont's captive formations in 2009 by industry.
Vermont Captive Data: Formations by Type & Premium - We have the latest captive insurance data coming out of the Vermont domicile. Here are Vermont's captive formations by captive type and premium written.
Vermont Captive Data: New Formations - We have the latest captive insurance data coming out of the Vermont domicile. Here are Vermont's new captive formations in 2009.
When to Retain and When to Destroy Insurance Policies - It might be wise for risk managers to follow a policy on when they should retain and when they can destroy their insurance policies. Hint: Some should be kept for virtually forever.
World-Class Fleet Safety - Driver, vehicle or journey-based interventions in the interest of driver safety won't work without management buy-in.
Aon, Magic Johnson Enterprises Commit to One-Year Deal - MJE is the latest partner to join the Aon Cornerstone unit and is seen as giving the broker a leg up on the competition.
Florida: Amendment for self-insured employers takes effect - The Division of Workers' Compensation amended Rule Chapter 69L-5, Rules for Self-Insurers Under the Workers' Compensation Act.
Healthcare Reforming Workers' Comp? - The Obama healthcare reform could benefit the workers' comp system, but it could also result in unintended consequences.
Integrated care can cut chronic back pain work disability by 4 months - An integrated care program directed at the employee and workplace can help individuals with chronic low back pain return to work an average of four months earlier than those receiving usual care, according to a study.
Michigan: Legislation would ensure WC benefits for illegal aliens - Undocumented workers in Michigan who are injured on the job would have access to workers' compensation benefits under recently proposed legislation.
Spinal surgery denial remanded to account for changes to law - In California, where a doctor recommends spinal surgery, the employer is not relieved of the obligation to provide the surgery if the employee fails to object to a denial of treatment by the employer's utilization review. The employer has to request a second opinion after a denial.
WORKERSCOMP ForumTM Update: April 29, 2010 -
Business Intelligence Comes of Age: How Risk Managers with Henkel and Turner Construction Are Enhancing Reporting and Analytics Capabilities - A successful risk management strategy requires an array of smart, effective strategies, though some may be more critical than others. Data is one of those critical success factors, and it is arguably the most critical in today's complex world.
Industry Remains Split Over Commissions - Insurance buyers at RIMS and brokers remain apart on volume-based commission in the wake of regulatory approval.
Listening for Property to Pop - The property insurance market is a catastrophe for carriers these days, as it's anybody's guess when the market will harden and rates make underwriting profitability possible.
Editor's Choice Stories: April 27, 2010 -
Goldman Again - It was a relatively small piece of business that cost Goldman Sachs billions in market cap, revealing a crucial lesson in reputation risk management.
It Will Come - The hard insurance market is out there, waiting and watching.
New Product Announcements: April 27, 2010 -
People on the Move: Brokers -
People on the Move: Insurance -
People on the Move: Insurance, Regional -
R&I One®: April 27, 2010 -
The Volcano and Your RIMS - Will RIMS attendance be down because of the lingering effects of the Icelandic volcano? Is insurance's face-to-face business model a thing of the past?
California: Division proposes to switch physician fee schedules - The Division of Workers' Compensation proposed changes to physician fee schedules and treating physician forms.
Conditions of employment to determine status of worker's claim - In Vermont, under the positional risk doctrine an employee's injury arises out of his employment if the conditions and obligations of his employment place him in the position where he was injured. Even when an injury occurs away from the workplace, its cause can be distinct in time and place.
GAO reports nuclear workers face long delays on illness claims - Government nuclear employees who suffer from work-related medical conditions face long delays in settling claims, according to an audit by the Government Accountability Office.
Illinois: Study finds medical costs per claim high, but growth slowing - Medical costs per workers' compensation claim in Illinois were among the highest of 15 study states one year after the implementation of its first medical fee schedule in 2006. However, the Workers Compensation Research Institute found that growth in medical costs per claim slowed to 5 percent in 2007 claims evaluated in 2008 after double-digit growth rates before the fee schedule.
Lack of Paid Sick Days Allowed H1N1 to Spread, Group Says - Ill employees who chose to stay at work because of a lack of paid sick days contributed to the spread of the H1N1 pandemic in the workplace, according to a study.
RIMS: Demand More of Your Brokers and TPAs - With 30 million new lives entering the health insurance system thanks to Obama's healthcare reforms, costs will rise, and its high time benefits buyers know who is getting paid what.
Risk Managers Accept Contingent Commissions? - A new survey by Towers Watson, that is ongoing at the RIMS convention in Boston, has surprising findings about what fees and commissions risk managers are willing to accept.
Washington: DLI bypasses hearing on personal protective equipment - The Washington State Department of Labor and Industries announced changes to WAC 296-56 (safety standards for Longshore, Stevedore and waterfront-related operation), WAC 296-304 (safety standards for ship repairing, shipbuilding and ship breaking), and WAC 296-800 (safety and health core rules) via expedited rulemaking.
Winning Risk Managers' Minds on Climate Change - Climate change is a genuine insurance opportunity, but the public and political debate is far from over.
Best Buy-outs for Everyone? - Two firms near the top in their respective fields get bought--Sedgwick and GRC--and everyone appears to be pretty pleased.
Best Buy-outs for Everyone? - Two firms near the top in their respective fields get bought--Sedgwick and GRC--and everyone appears to be pretty pleased.
Raiding the Pot - Pennsylvania healthcare givers fight to keep politicians' mitts off of their med-mal CAT fund.
Ecological risk grows as Deepwater Horizon oil rig sinks in Gulf (Christian Science Monitor) - Up to 7,400 barrels of crude oil a day could be spewing into the Gulf of Mexico from the Transocean Deepwater Horizon rig, which exploded and sunk on Thursday. Can anyone say environmental liability insurance?
The fall of AIG: The untold story (Institutional Investor) - If you have the time, read all 14 pages of this cover story from Institutional Investor. It gets to the heart of the story of whether Hank Greenberg is to blame for AIG's fall from grace, or whether his side of the story is the accurate one.
N.Y. insurer balks at coverage for laptop suit (Philadelphia Inquirer) - Perhaps you've heard of the school district in the Philadelphia area that was accused of spying on students through laptop cameras, and the subsequent lawsuit from students and parents? Now, the school's liability insurer, Graphic Arts Mutual Insurance Co., claims that the $1 million policy does not cover this case.
Blowing Smoke, or Disabled? - Trapped in a 15-by-15-foot room with smokers for two years, a man then claims disability? You be the judge of this classic case.
Multinationals Face an Unhealthy Contradiction - Global companies are feeling the burden of so-called "lifestyle diseases," but only 26 percent of multinationals have a global health strategy in place.
Volcano Will Likely Affect Aircraft Hull and Aviation Liability Renewals - Insureds will have to wait until year-end to gauge impact of ash plume on their prices.
11th Circuit upholds convictions in nationwide comp fraud conspiracy - Workers' compensation carriers must be "admitted" to operate in a state. Holding oneself out as a representative and convincing companies to pay for coverage from a known unadmitted carrier is an element of fraud.
Spitzer documentarian Alex Gibney: 'He wants to talk about it' (New York Magazine) - The new documentary on Eliot Spitzer will be shown at the Tribeca Film Festival this Saturday. Not to give away any surprises, but Spitzer actually participated in the film. Here, New York Magazine interviews the director, Alex Gibney, and asks how he got Spitzer's involvement and about his impressions on Spitzer's sense of guilt, career future and hypocrisy.
Does Termination Erase TTD Eligibility? - In an oldie but goody YBTJ, religious discrimination, an accommodation, an arbitrator and the court room are all mixed together. Guess how it turned out.
Minnesota tops list of best performing WC systems - Minnesota boasts the top performing workers' compensation system in the country, according a report by the Work Loss Data Institute.
Oregon: Division seeks comments on changes - The Workers' Compensation Division proposed changes to OAR 436, affecting medical billing and payment, including a fee schedule and procedures for interpreters who assist medical examinations.
Researchers say osteoarthritis carries high costs in missed workdays - Work absences due to osteoarthritis cost U.S. employers more than $10 billion per year, according to a recent study.
Risk Management: A Racecar or a Cross-Over? - Read Part 2 of David Wong's online-exclusive Strategy column, where he asks: Is risk management more process or capability?
Seeking Third-Party Biller Detente - The question claims-payers should ask prospective PBMs is: How well do you work with third-party prescription drug billers?
WORKERSCOMP ForumTM Update: April 22, 2010 -
Worker not prevented from filing SIF claim based on bilateral injuries - According to Iowa law, the bilateral nature of a first injury does not automatically preclude recovery from the SIF for a bilateral second injury.
Last legal mile may be hardest for Greenberg (DealBook Blog) - It's looking like former AIG boss Hank Greenberg will need to appeal the decision in the New York State Supreme Court. Justice Charles E. Ramos called what had gone on at AIG "a criminal enterprise" -- referring to Eliot Spitzer's accusations of misleading and "bogus" transactions.
Rethinking risk management (Forbes) - With financial regulatory reform in the works in Washington, risk management is all the rage on Wall Street. This writer looks for lessons from other industries to teach the financial world how to manage its risk, including tips from fire-fighting, agribusiness and nuclear power.
Cutting the Tail on Existing Claims - For self-insured organizations, loss portfolio transfers can deliver financial flexibility, a cleaner balance sheet and the reduction of long-tail claims payment, all with low frictional costs.
Identifying and Managing the Hidden Costs of Chronic Pain in Workers' Compensation Claims - In the world of workers' compensation claims, it's critical to use all available tools--from predictive modeling to early alerts to direct intervention by key experts--to bring about the best possible outcomes for injured employees and their employers.
Keeping Score: Progressive Annual Drug Spend Analysis Delivers Data to Help Clients - From year to year, the workers compensation landscape changes. But one thing remains constant: Payers are challenged to balance cost reduction with the best care for injured workers.
Process Vs. Capabilities: Part 2 - What can a race between a racecar and a cross-over tell you about how well designed your risk management program is? It depends ... what sort of race track are you on?
New site allows you to rate coworkers (Marketplace) - A new Web site, GetUnvarnished.com, allows employees to discuss and rate their colleagues anonymously. This sounds like the definition of social media risk.
The convergence of intellectual property and media liability insurance? (Betterley Report Blog) - Betterley recaps their recent report and discusses the intellectual property and patent infringement coverage, as well as new products that meld media liability and IP protection.
AIG eyes action on Goldman deals (Financial Times) - The SEC is filing civil fraud charges against Goldman Sachs, and now AIG is purportedly considering going after the bank as well for the $6 billion in losses from mortgage-back security insurance deals.
AmWINS: No Wholesale Flexing - The newly formed AmWINS Group Inc. will be bigger, but not meaner. Its Colemont purchase brings international and reinsurance expertise to the wholesaler.
ERM Symposium Closes With Focus on Big Picture - Financial risk management ninjas at the 2010 ERM Symposium consider "mega-ERM" steps to reduce the danger of systematic risk and of future financial-system crises.
Editor's Choice Stories: April 20, 2010 -
Employee Protections for Medical Marijuana Go up in Smoke - The Oregon Supreme Court hands employers a victory in the fight to maintain drug-testing policies.
R&I One®: April 20, 2010 -
Risk of Katla: Could 2nd Icelandic volcano eruption follow? (Huffington Post ) - Disaster scenarios are fun to consider in theory, or at least from a distance. But this Islandic volcano episode is causing pain for companies and individuals across the world. How many insurance professionals are stranded at an airport now because of the volcano? But the pain could only grow if this current eruption leads to the much bigger explosion of neabry Mt. Katla.
The risk/reward of social media in insurance and reinsurance (Reinsurance Girl's Blog) - There is a growing insurance universe on social media sites like Twitter and LinkedIn. Are you a part of it? If not actively, you might be a passive participant and not even know about it. Reinsurance Girl gives five simple steps to managing the risk of your social media participation.
Allocation of benefits excludes nonresident spouse - In Iowa, when a worker dies leaving two spouses, the spouse living in the U.S. receives the compensation to the exclusion of the other spouse who otherwise might have been eligible for benefits. However, the benefits will be equitably apportioned between the resident spouse and the dependent children.
California: More than 4 percent of comp payments go to restaurant workers - Restaurant workers in California accounted for slightly more than 4 percent of the state's overall workers' compensation benefit payments from 2000-08, according to a study.
Feds, States Cracking Down on Misclassification of Workers - Federal and state officials are concerned that employers may be misclassifying employees as independent contractors to avoid paying for workers' compensation coverage, overtime, and other taxes. Due to the economy, experts anticipate that the problem will increase in the coming years.
Florida: Coalition pushes for public sector to meet OSHA standards - A coalition of Florida organizations is relaunching an effort to improve occupational safety and health protections for the state's public sector employees.
Independent contractor or employee? - According to the Internal Revenue Service, employers must weigh several factors when determining whether an individual is an employee or independent contractor.
Lessons in Specialization Learned - A new insurance designation for program leaders reflects a more specialized world.
Oregon: Division seeks input on vocational assistance rule - The Workers' Compensation Division issued a request for rules issues and recommendations to all interested parties regarding OAR 436-120, Vocational Assistance to Injured Workers.
Health insurers' fast food holdings raise flag (CBS News) - A new study in the American Journal of Public Health has stirred the healthcare debate pot a little more. Some disability insurers, like Pru, are getting pulled into the mess too. The crux: These insurers have significant investments in fast food companies. Ironic? Sound investing? An evil plot? Or actually counterproductive for insurers that will have to pay claims when people get obese and sick from poor eating?
Pa. ordered to return millions to malpractice funds (AP) - In 2003, Pennsylvania set up a fund to help healthcare providers pay for med-mal claims that exceed their insurance limits. The money comes from an assessment on all providers, so it's not the state's money to do as it pleases. At least that's what a court just found, after the Keystone State last year tried to divert some $808 million from the fund to help balance its balky books.
Aide's injuries on way to client's house don't meet exceptions - In Pennsylvania, an injured employee may be eligible for benefits if she is injured travelling to or from work if she meets four requirements.
Gunshop a Disability Killer? - A YBTJ classic: A gun enthusiast sets up shop in his garage. Do his activities warrant cutting off his PTD benefits?
Massachusetts: Attorney general to challenge hike in comp premiums - The attorney general of Massachusetts is objecting to a proposed 4.5 percent increase in workers' compensation premiums.
Ohio: Association pushes for bill to prevent violence against nurses - The Ohio Nurses Association is urging lawmakers to pass legislation aimed at preventing violence in the workplace.
WORKERSCOMP ForumTM Update: April 15, 2010 -
Worker's surgery ends period of 'unreasonable refusal' - Under Michigan law, reinstatement of disability benefits is required when an employee ends a period of unreasonable refusal of work.
XL Capital seen as possible acquisition target (MarketWatch) - The soft reinsurance market could prompt Munich Re to gobble up XL Capital, according to MarketWatch, citing rumors spread by analysts and investors. Why XL? Its shares recently traded at 70 percent book value and the company, still stung by the 2008 global financial debacle, might be having trouble attracting new big deals and investors.
Cloud Computing Can Wait - More than 45 percent of IT pros say risks of cloud computing outweigh benefits, a survey finds. Does this new IT model hold more benefits for vendors than clients?
Give and You Shall Receive (on Facebook) - Experts at the midyear meeting of the TMPAA think insurance professionals will be rocked out of any social media networking recalcitrance by great results.
Real-Time PBM Technology Solutions Produce Real Savings Results - When it comes to technology in today's workers' compensation world, "real time" often can have more than a single meaning, but only one really works. And while technology has evolved to where it is a fairly common service offered by many PBM's and ancillary medical services providers, the difference between how "real time" is applied becomes the primary variable to determine the ultimate benefit and value of these tools. Many new Web portals may offer a slick interface, but not all of them have the power "under the skin" to provide what payers need to maximize program savings and overcome the key challenges associated with managing these types of services.
Tomorrow's Generation Tackles Tomorrow's Risks - The Delaware Valley chapter of RIMS held a competition for the Philadelphia area's top risk management students, with the finalists identifying key emerging risks.
Cuomo says ex-AIG CEO Greenberg denial 'incredible, irrelevant' (Bloomberg) - Maurice "Hank" Greenberg filed again to get dismissed the lawsuit stemming from the 2005 Gen Re lawsuit brought by then-New York Attorney General Eliot Spitzer. Greenberg said he had no role. "Greenberg, whose autocratic style and attention to detail were legendary, cannot seriously contend that he approved a $500 million reinsurance transaction--the largest ever done by AIG--without discussing with Ferguson and Milton the very essence of the deal," according to a court filing by Cuomo's office cited by Bloomberg.
Editor's Choice Stories: April 13, 2010 -
New Product Announcements: April 13, 2010 -
People on the Move: Brokers -
People on the Move: Insurance -
People on the Move: Technology -
R&I One®: April 13, 2010 -
Six alarm bells for corporate board members (BusinessWeek) - One of the six alarm bells for directors is where there is an apparent disconnect between strategy and risk, according to Ken Daly, who serves as president of the National Association of Corporate Directors. Then Daly goes on to explain what directors should do if they sound the alarm bell for that or other reasons.
Expect insurance chaos if hurricane hits hard (Orlando Sentinel) - Of 70 Florida-based insurers, 50 lost money last year, according to the author of this commentary, who asks: What will happen to these weak insurers when a stormy season occurs? Good question. Legislation in Florida is seeking to fix the house of cards that Gov. Crist built--for instance, by allowing carriers to charge actuarially sound rates--but Crist has promised to veto it.
Despite release, worker wins fees for medical services dispute - In Oregon, a worker may be awarded attorney's fees in a medical services dispute even if a claim disposition agreement includes a release of the worker's right to attorney's fees.
High court detours negligence suit back to WC commission - The Workers' Compensation Commission must decide whether a person is immune as an employer under the WCA.
OSHA booklet helps employers comply with hexavalent chromium standards - The Occupational Safety and Health Administration recently published a booklet to help employers comply with requirements of the agency's hexavalent chromium standards.
Small Businesses Can Use 8 Tips to Gain Control of Comp-Related Costs - The economic recession has affected small business owners. According to a recent survey by EMPLOYERS, a provider of workers' compensation coverage and other services, nearly half of small business decision-makers said it would take more than a year to get their firms to pre-recession levels.
Steel Making Safety - U.S. Steel Corp. reports some sharp safety improvements in its 2009 annual report. But just how closely do the numbers represent actual workplace injuries in U.S. operations?
Tennessee: Reforms lowered costs in specific areas of comp system - Legislative reforms have lowered costs in specific areas of Tennessee's workers' compensation system, according to a report.
Hurricane season forecast above average: Can we trust it? (Discovery News) - You got to love when somebody questions the value of early hurricane forecasting from the likes of Colorado State University. Forecasting a hurricane season this early is tricky business--and usually an inaccurate business--the reason why NOAA waits until late May to do it. (The season starts in June.) As this author asks, "Is it a good idea for all of us to become accustomed to discounting the credibility of warnings about impending hurricanes?"
City Hall to track worker injury claims more closely (Chicago Tribune) - The city government is still trying to clean up the way it does workers' comp, following a 2006 federal investigation into possible corruption. The city is now taking steps such as making each department report monthly on injured workers and assign a manager for return-to-work. One of the goals is to get "able-bodied" workers back to work as soon as possible, said a city official.
After shorting subprime, Eisman says short AIG (MarketWatch) - A couple weeks ago, we posted an article here that said how AIG was a hot stock. Now, supposedly, blood is in the water and the shorting sharks are circling. According to hedge funder Steve Eisman's calculations, even with the strength of its P/C units, "AIG has no common shareholder equity remaining on its balance sheet" and would be "insolvent" without government cash.
Bill Aims to Untangling Medicare Secondary Payer Act Confusion - New legislation targets problems with the reporting requirements, conditional payments and recovery issues association with implementation of the Medicare Secondary Payer Act.
Coming and Going, or Compensated? - Three workers got injured in an auto accident while on a training assignment. The employer says they were coming and going. Or were they in the "zone of employment"?
Injured employee must show adverse action to support discrimination claim - An employee asserting a claim under the ADA or related laws must be able to show that he qualifies as disabled at the time of an alleged adverse action, regardless of whether he met the definition of disability at another time.
Injury of the Traveling Body Parts - By implementing a medical functional restoration program, we can stop one of the biggest cost drivers in workers' compensation, the dreaded Traveling Body Parts injury.
Kentucky: Governor urges comp insurer to return surplus to small businesses - Kentucky Gov. Steve Beshear is calling on the state's largest workers' compensation insurer to return a portion of its $147 million surplus to help small businesses create and maintain jobs during the recession.
Marsh and Its Insurer-Monitoring Wizard - Marsh unveils a new analytical service that promises to offer clients a more complete view of their insurance carriers.
Oregon: State-chartered WC insurer approves $100 million in dividends - Oregon's nonprofit, state-chartered workers' compensation insurer recently announced that it approved a $100 million dividend for more than 44,000 employers.
Report links industrial cleaner to increased risk of Parkinson's disease - A chemical widely used to clean metal such as auto parts may place workers at a significantly higher risk of developing Parkinson's disease.
The Hartford: All Systems 'Go to Market' - The Hartford is ditching the product-segment approach in hopes of capturing more middle-market business.
To Twitter or Not to Twitter - Our Loss Control columnist Steve Hernandez asks risk managers if they're prepared for a Courtney Love or Kim Kardashian on their hands.
Unauthorized purchases with company credit card nix further benefits - In Florida, where an employer presents credible evidence that a worker was terminated for cause and JCC finds a worker's denial of wrongdoing was false and made for the purpose of continuing workers' compensation benefits, the worker will be barred from receiving further benefits.
WORKERSCOMP ForumTM Update: April 8, 2010 -
How to connect mining disasters and climate change (How the World Works) - In one post on his blog at Salon, using the Massey mine disaster as an example, Andrew Leonard tackles three big ways you can fail at corporate risk management: a culture that doesn't respect safety; terrible crisis management skills; and the perils of allowing executives to Twitter uncontrollably.
A Penny for Your Tweets - Information posted on social networking sites can get employees--and their employers--in hot water much faster than traditional media. Here's a loss-control policy no matter who you follow or friend.
Healthcare Solutions Announces Program That Reduces Pharmacy Costs - When it comes to compounded prescription drugs, it's a fairly good bet that payers in the workers' compensation market are paying more than they should. In fact, according to pharmacy experts at Healthcare Solutions, the parent company of pharmacy benefit manager Cypress Care, compounded drugs are an area in which payers are often in the dark in terms of what is being billed as part of a workers' compensation claim.
Case will test NFL teams' liability in dementia (New York Times) - The California workers' comp system has attracted many former NFL football players and other former athletes, all looking to collect on injures they say they sustained during their careers. It matters not what team they played for, as long as they played just one game in California. The latest case is for dementia-sufferer Ralph Wenzel, an resulted from the repeated head trauma he experienced as a player.
People still reluctant to buy quake insurance (San Diego Union-Tribune) - "Monday seemed like the perfect time to sell earthquake insurance," starts this article. You think? Yet the Magnitude 7.2 quake that struck on Sunday South of the Border does not have the phones ringing off the hook at insurance agents in Southern California, where most people are counting on Air Force 1 to deliver reconstruction money it seems.
Editor's Choice Stories: April 6, 2010 -
Highmark Versus Ario - A nonprofit health insurer challenges a regulator's right to examine it.
New Product Announcements: April 6, 2010 -
Own Your e-Problems - The cyberwar rages on, putting business and national security at risk, and yet companies often relegate security to an overburdened and underfunded IT department. It's time for C-level executives to own the problem.
People on the Move: Brokers -
People on the Move: Insurance -
People on the Move: Insurance-International -
R&I One®: April 6, 2010 -
Will the Worst CAT 1Q Impact Primary Property Renewals? - The reinsurance industry took serious losses with the spate of recent catastrophes. Will the losses trickle down to primary property insurance buyers during spring and summer renewals?
Underwriting medical marijuana (Marijuana Business Reporter) - Medical marijuana is big, legal business in the United States now. Here's an enlightening Q&A with the national director of the medical marijuana specialty division for California-based Statewide Insurance Services. They've been providing liability and growers coverage for about a year-and-a-half and have seen zero claims.
Seeking a single risk manager credential (FINS) - The financial services career blog from the Wall St. Journal delves into the many risk management credentials available, as well as how certain risk organizations, like PRMIA and GARP, are pushing for standardized testing or certifications. Only question with FINS' list is, isn't it leaving out some important risk designations?
Global broker sees upside in firm's 'middle space' niche (Roanoke Times) - The global broker in question here is Marsh, the local firm is Rutherfoord (yes, two o's). Marsh & McLennan Agency acquired Rutherfoord in mid-March to get access to its middle-market and small-market strengths. Follow the link for a nice story about why Rutherfoord held off a sale for years, and why they finally chose MMA.
California: 2 hearings scheduled on billing standards - The Division of Workers' Compensation issued a notice of rulemaking and announced public hearings for the adoption of provisions requiring standardized paper billing forms and electronic billing standards.
Employment Attorneys Express Concerns Over Proposed ADA Amendment Regs - Employment attorneys fear the proposed Americans with Disabilities Act Amendments Act regulations will lead to systemwide abuse and increased litigation. They are also concerned that the Equal Employment Opportunity Commission does not sufficiently define the key terms and criteria that are used to make disability determinations.
Intent to provide dual insurance coverage needs clarification - Massachusetts law provides a carve-out provision to the workers' compensation exclusivity bar. Under the carve-out provision, the bar does not apply to underinsured motorist or other coverage that the employer purchased to provide employees with additional protection for damages caused by underinsured drivers.
Migrant worker required to live on premises awarded benefits - In South Carolina, where the nature of the work requires an employee to live on the employer's premises and the employee is injured while making reasonable use of the premises, the injury may arise out of and in the course of employment.
Vermont: State cuts WC loss costs for fourth consecutive year - Workers' compensation costs for most employers in Vermont will fall for the fourth consecutive year beginning April 1.
Workers without insurance more in need of treatment options, study finds - An estimated 3 million full-time workers in the U.S. without health insurance needed substance use treatment in the past year, according to a national survey conducted by the Substance Abuse and Mental Health Services Administration. However, many of these individuals aren't getting the help they need to overcome their addictions.
An Analytics Tour de Force - Who can argue with Aon's $54 billion worth of premium flow data? Definitely not clients who want to benchmark during commercial insurance renewals.
myMatrixx launches innovative Web solution for DME and Ancillary Services - Shopping on the web these days is a snap. You click on the bookmark for your favorite search engine or e-tailer, type in the product by generic name, model name or brand, and voila! Within seconds, you have choices, both for price and variety.
After foiled attempt to deny benefits, Wal-Mart entitled to subrogation credit - According to Kentucky law, an injured worker can pursue a simultaneous civil action against a third party and a workers' compensation claim against his employer, but the employer has a right to subrogation against the proceeds recovered in the civil action that duplicate the workers' compensation benefits.
Agriculture - Agricultural risk is what it is because of the very fluidity of the product being insured. Genetically modified seeds can sprout and grow and bloom, sending their spores to another field where they very well might not be welcome. Same goes for the shrimp, salmon and tilapia now being farmed in our oceans and bays. It's a slippery product and a very slippery risk. Click above to read more on the industry, or view the industry risk table to see the major players, their brokers and risk management strategies.
Agriculture Industry Risk Report Table - A listing of some of the nation's top agribusinesses, their risk managers, brokers, captives and risk management programs.
An Interview With a Regulator - Our correspondent has a Q&A with the controversial OSHA appointee, Dr. David Michaels, about OSHA's tougher penalties, whether stricter enforcement leads to higher costs to employers, the new emphasis on MSDs and more.
Aquaculture Resources - The Food and Agriculture Department of the United Nations provides a global glimpse of the state of the aquaculture industry. The FAO also has a wealth of reports on the topic of aquaculture here.
Claims - Whether you're a self-insured employer or an insurance carrier, getting a handle on your claims through the right technology is an urgent imperative.
Claims Management at RIMS 2010 - It's always a good time for a refresher on claims management, especially this year given all that's happened with the economy in the past 18 months.
Claims Mgmt. In-Depth Series (Part 3): The Future of the TPA--Here to Stay - With the M&A landscape involving large national TPAs fairly stable, expansion and contraction in the industry is expected to come mainly from the small, independent shops.
Considering the New Capital Requirements for Bermuda Commercial Insurers - The BMA has outlined its plans to introduce a 3-tiered, Basel II-based capital system for certain classes of Bermuda general business insurers. Here's how to make sense of it.
Controlling Health Care Costs by Keeping Employees Healthy - Wellness takes center stage as a way for corporations to slash health costs and improve employee productivity.
Diagnosing What Works in Radiology - The use of advanced radiology is growing about 18 percent to 20 percent annually, so it pays to pick the brain of Kent Spafford, whose company handles 40 percent of all workers' comp-related diagnostic tests--about technology, data and cost savings.
E-Discovery Encounters of the Third-Party Kind - When it comes to e-discovery, insurers need to worry as well about documents from third parties, like TPAs and agents. If you can get a document, your opponents in court probably can too.
ERM @ RIMS - At RIMS 2010, there will be at least 19 sessions on enterprise risk management. Simply select "Enterprise Risk Management" in the Category scroll-down menu and click on "Search" to see all of the options. Check those out and the entire schedule of events in Boston at the RIMS Web site.
ERM: Risk Management's Breakthrough - ERM has become a global phenomenon. Get onboard or be relegated to the lot of mediocre companies.
ERM: Risk Management's Dream State - ERM is way too unwieldy to ever work properly. The last 18 months have told us so.
Ergonomics: The Next Battleground - At issue between OSHA and employers is the possible increase in the scope of compensable injuries in workers' compensation.
Food Contamination Cases, and Regulation, Growing? - New federal laws could stiffen FDA regulation of agribusiness, threatening to put ever-more companies in the harsh media spotlight after a recall. Plus, the USDA RMA tries to clamp down on taxpayers' money to crop insurers and agents.
How Will Healthcare Reform Impact Workers' Comp? - Leading workers' comp experts discuss the positive and negative effects that the Obama healthcare reforms could have upon the workers' comp industry.
In Favor of Drug Testing - Jim applies for a local delivery job. The company sends him for a urine drug test. Negative results; he's hired.
Latest Data From the National Highway Traffic Safety Administration - Overall traffic fatalities for 2009 were at the lowest level since 1954, declining for the 15th consecutive quarter. View the preliminary fatality statistics at the NHTSA site.
Lessons From a Workers' Comp Award Winner - The risk management team at Aramark shares the secrets and best practices that turned around its workers' comp program in only a matter of a few years.
Letters to the Editor -
Life at Risk, Now at Rest -
Movin' On Up, But Not Out - Change is taking place in the Bermuda (re)insurance market as the senior executive corps ages and hands over to a younger crowd. Here's a quick look at who's moving up and out, and what some wizened leaders are doing in their "retirement."
North: Trends Impacting the Impactful Claims Business - Sedgwick's David North reflects on the current state of the TPA industry--from consolidation to specialization--and discusses what powerful trends are affecting an important segment of the insurance industry.
OSHA Changes Could Hurt - The Democrats are picking up something that the Republicans put down.
OSHA's Deeper Bite - The Obama administration injects new power into the occupational safety agency as employers find themselves on the defensive. Critics hit new director as "junk science" advocate.
Offshoring up the Bottom Line - Brokerages spread tasks around the globe as farmed-out functions grow in complexity.
Olympian Qualifications - As I write this column, my country, Canada, is hosting the 2010 Winter Olympics games in British Columbia, home to the beautiful Canadian Coastal Mountains.
Researchers say back pain care not consistent with clinical guidelines - General practitioners who treat individuals for low back pain often do so in a manner that isn't consistent with clinical guidelines, according to Australian researchers.
Risk and Performance - Traditional risk management often relates risks to the prevention and/or control of bad things and their consequences.
Risks of the Great Indoors - Remember the tech bubble, a decade ago? At its heart was the notion that the Internet would change the way we live.
Setting ERM Straight - Decision-making, not governance, risk and compliance (GRC), underlies the true value of enterprise risk management.
Soft Serve - In these challenging economic times, companies are looking for anything that can save them a few dollars--and that is one of the reasons that software as a service is generating a lot of buzz.
TPA Leader Prepares Firm for Another Challenging Year - Scott Hudson, the recently hired chief of Gallagher Bassett, prepares his troops for another tough year in the insurance claims business.
The GAO's Report on Injury Reporting - Here's the landmark GAO report from Oct. 2009 regarding worker injury reporting. The occupational health practitioners interviewed for the report noted worker fear for reporting an injury or illness, pressure by employers to provide insufficient treatment to workers and pressure to downplay the injury so that it would not be reported to OSHA.
The Power of Now - Monitoring claims performance for continuous improvement depends on information that is current, relevant and clear.
The Protecting America Workers Act - The Protecting America Workers Act would give OSHA more tools to fight underreporting of injuries and illnesses by employers. Want to know how? Check out the bill itself at the wonderful congressional resource, Thomas.
The Road Back - An accident highlights best practices for managing workers' compensation claims as the victim returns to work within seven months of the accident.
The Road to Global Regulatory Harmonization for Insurers - Perhaps at no other time in recent history has greater focus been placed on the idea of harmonizing the oversight of financial services firms. For insurance companies, the IAIS is making a biggest push for innovative standards.
The Rosy View from Leadenhall Street - Lloyd's is safe once more after several years of financial hardship, and the London market's finance director doesn't believe that a serious rival will emerge, at least for the time being.
The SEC Rules - Maybe the SEC will rule in its latest attempt to drive ERM into the C-suites.
Tipping the Oceanic Scales - The global aquaculture industry will continue to expand, but so will its environmental and financial risks.
To Self-Insure or Not: Part I - The first in a two-part series, we cover the advantages and disadvantages of self-insurance, including the low-down for smaller employers.
Vendor Directories - Research technology, workers' comp, claims, captive and other vendors in our exclusive vendor directories.
Volunteer police officer fails to show he is city employee - Under Texas law, a person is not an employee and not entitled to workers' compensation if he is in the service of a political subdivision and is paid on a piecework basis or on a basis other than by the hour, day, week, month or year.
WORKERSCOMP ForumTM Update: April 1, 2010 -
Washington: DLI changes concrete, masonry construction standards - The Washington State Department of Labor and Industries announced changes to WAC 296-155 Part O, via expedited rule.
Wyoming: Senate nixes bill to increase penalties for safety violations - The Wyoming Senate voted down legislation to increase penalties for employers who violate health and safety regulations.
Risk management: Help wanted (US Banker) - Good news for risk managers who specialize in the financial services sector. Wall St. is on the hunt for talent. According to one financial services job board, January¿s job postings grew 15 percent year-over-year, February's 19 percent. Top-flight risk managers could earn as much as $200,000 a year in their new post.
Competing catastrophes: What's the bigger menace, an asteroid impact or climate change? (Scientific American) - This article in part delves into an obscure debate among scientists on how to calculate how many people could die from extreme events. But on the other hand, it also poses an interesting question on how to figure out which long-tail catastrophes you should plan for, considering your finite resources--those wild Hollywood-type disaster that might never happen in a million years, or the gradual, subtle, less glamorous but extremely costly developments that are happening right under our noses.
The 2010 Teddy Award Judges - The Teddy Awards are judged by a panel of experts in workers' compensation and disability management, including some past winners. In 2010, they are:
Willis' Redundancies and Greg Case's 5 Points - In case you missed it, here's this week's R&I One® e-newsletter, featuring: Willis wields the ax; Greg Case's five points to keeping risk simple; the unlucky 13 of storm surge exposure; energy market gushing capacity; and more.
Following up on the 'noble' business of claims adjusting and educational experience for adjusters (Property Insurance Coverage Law Blog) - Avid claims blogger Chip Merlin posted the day before about the state of the claims profession job market, and mentioned something about adjusters being "noble." E-mail responses in disagreement commenced. And so here Merlin explains what level of ethics the CPCU designation holds adjusters too, and other reasons why claims folks are essentially good people.
A Surge in Focus on Hurricane Flooding - New report highlights coastal vulnerabilities to hurricane storm surge before what could be a very active tropical cyclone season.
Editor's Choice Stories: March 30, 2010 -
Energy Sector Pricing: A Gusher of Capacity - The energy insurance market is ripe with capacity for risk managers, according to a recent report from a leading broker. New actuarial models have an emerging role in managing energy risks.
R&I One®: March 30, 2010 -
Workers' comp for illegal immigrants may end (Dayton Daily News) - If Republican State Sen. Bill Seitz has his way, Ohio will join Wyoming, Michigan, Idaho and Florida in banning workers' comp benefits for undocumented workers. This article explains the opposition to Seitz's pending bill, as well as provides more details about the bill itself, including how it would allow an injured undocumented worker to sue his employer for injuries if that worker can prove that the employer hired him knowing he was undocumented.
DPS: Scam cost $57M (Detroit Free Press) - The 2005 PRIMA risk manager of the year, Stephen Hill, is in big trouble. The former risk manager for the Detroit Public Schools is being investigated by the FBI for swindling his former employer out of $57 million, by funneling fraudulent, or at least questionable, contracts to insurance vendors while himself receiving kickbacks. Brokers Marsh and Arthur J. Gallagher are involved in the mess.
New computer model could help power companies better prepare for hurricane aftermath (Palm Beach Daily News) - Researchers at Johns Hopkins and Texas A&M have teamed up to create a new type of catastrophe model. This one could help utilities predict, ahead of an approaching hurricane, where potential power outages will occur. This could help the energy companies to preplan how many repair crews they will need, and where to predeploy them.
Association Seeks to Raise Awareness About Eye Injuries, Strain - Whether sitting in front of a computer or operating machinery, employees are exposed to eye-related risks on a daily basis.
Five Points to Keep Risk Simple - Aon's Greg Case, ACE's Brian Dowd and other insurance leaders sketch the big picture during Philly I-Day.
Injury, illness records released under new 'open government' policy - Employers now have access to more than a decade's worth of workplace injury and illness data under the Obama administration's "open government" policy.
Lifting restriction doesn't support ADA, Rehab Act claims - A simple lifting restriction that prevents an employee from performing some of his duties but does not preclude him from working a broad range of jobs does not create a disability under the ADA or Rehabilitation Act.
Stress the importance of eye health - While it's important to practice good eye health habits at work, it is also important to visit a doctor of optometry on a regular basis for comprehensive eye exams to help ensure healthy vision.
Toolkit, hotline to help employers achieve better return-to-work results - Liberty Mutual has introduced resources to help employers achieve better results from their return-to-work programs.
Washington: Changes on discretion for incurred losses to take effect - The Department of Labor and Industries amended WAC 296-17-871, director's discretion for incurred losses on claims with vocational plans.
Willis set to make redundancies, according to market sources (Insurance Age) - The next round of "redundancies" has started at Willis, with some lay-offs already going down in the global brokerage's casualty unit. Supposedly, pink slips will be handed out across the board.
Colorado: Bill would limit comp insurers' ability to use video surveillance - The use of video surveillance to target fraudulent activity would be limited under legislation recently passed by the Colorado House of Representatives.
Commission can't recoup $84K in special fund payments - In Arizona, when a worker is paid compensation benefits from the special fund, the Arizona Industrial Commission must file the award with the clerk of the superior court if it decides to execute a lien on the employer's property.
Florida: Quarterly compliance reports subject of hearing - The Division of Workers' Compensation will hold a workshop on the notice of proposed rule development for Administrative Rule 69L-6.026, Periodic Reports.
If the Dead Could Talk - Did a worker give his mortuary boss notice after he injured his back moving a corpse? You be the judge.
More flexibility in workplace may lead to better health - Companies can improve the health of their employees by giving them more flexibility over their work schedules, a recent study suggests.
WORKERSCOMP ForumTM Update: March 25, 2010 -
Worker fails to link denial of WC benefits to disability - To state a valid discrimination claim under the Americans with Disabilities Act or the Rehabilitation Act, an applicant who was denied workers' compensation benefits must establish his disability was the reason for the denial.
Workers' Comp on the Hook Under HITECH Act - Employers and workers' compensation insurers must make sure they understand their new duties regarding medical privacy compliance under the new HITECH Act.
The death of workers' comp: Have we seen the beginning? (J&L Blog) - Here come the calls that the recently signed healthcare reform bill will lead to the end of workers' comp. This blogger goes so far as to recommend workers' comp professionals to "remain very flexible over the next 10 years" when it comes to career changes.
Symantec's Norton rates cities for cybercrime risk (InformationWeek) - Amazingly, Seattle is the riskiest city in the United States for cybercrime, according to this report. You would think not, considering its proximity to Microsoft's home base. The other top-10 risky cities are: Boston, Washington, D.C., San Francisco, Raleigh, Atlanta, Minneapolis, Denver, Austin and Portland, Ore.
Key insurance aspects of Chairman Dodd's revised financial regulatory reform bill (Sonnenschein Client Alerts) - Here are some lawyers earning their fees! A look at the revised draft released last week by Senate Banking Committee Chairman Chris Dodd (D-Conn.) with a specific focus on sections involving the insurance business, including clauses on the Office of National Insurance, surplus lines and the Financial Stability Oversight Council.
Editor's Choice Stories: March 23, 2010 -
Healthcare Rights Make Wrong - With healthcare reform now a reality, our guest columnist explores the potential implications of legally recognizing a right to healthcare and the potential for a litigation explosion.
New Product Announcements: March 23, 2010 -
Paying ERM More Than Just Lip Service - ERM report highlights continued challenges at financial services firms, and offers lessons about risk management "friction."
People on the Move: Brokers -
People on the Move: Claims -
People on the Move: Insurance -
R&I One®: March 23, 2010 -
Health reform goes to president (Health Reform Talk) - If you want a concise summary of the healthcare reform bill probably on its way to President Obama's desk this week, then check out this blog post. It breaks down the reform's parts--about employer and individual responsibilities, health benefit exchanges, etc.--without the usual partisan nastiness that seems to be the norm when discussing healthcare reform.
A Sierra Divide - Two bills in the California legislature targeting snowboarders and skiers could increase ski resorts' liability to "unprecedented levels."
California: Costs increase as medical losses jump for public self-insureds - Rising claim severity, spurred by continued growth in medical costs, are driving up workers' compensation costs for cities, counties, and other public agencies in California.
California: Division decides to cancel examination - The Division of Workers' Compensation Medical Unit announced it will not conduct the qualified medical evaluator examination scheduled for April 24.
Chairwoman Has Ambitious Plans for CICA Docket - Full-court press is on to reach new members and push for the interests of captives and alternative risk in Washington.
Employer not responsible for dental benefits for fainting employee - In Michigan, an employer does not have an obligation under the workers' compensation statute to provide medical care for nonwork-related ailments.
Failure to deny employee status does not admit employment relationship - In Pennsylvania, an employer's failure to specifically deny the existence of an employment relationship does not automatically admit an employment relationship existed.
Groups urge commitment to workplace safety in congressional jobs bill - A coalition of workplace safety organizations is urging lawmakers to consider the health of employees in a proposed congressional jobs bill.
High court reinstates TTD despite termination for misconduct - When an employee who is receiving workers' compensation benefits is terminated for conduct unrelated to the injury, the employer's obligation to pay TTD benefits continues until the employee's medical condition has stabilized and he has reached maximum medical improvement.
Poultry industry sees major declines in musculoskeletal disorders - The poultry industry is making significant strides in reducing work-related musculoskeletal disorders, according to a study.
Proposed Budget Would Allow Agency to Increase Enforcement Activities - Employers who violate health and safety regulations stand a greater chance of being cited after the Occupational Safety and Health Administration announced plans to increase enforcement activities.
Should cabbies be entitled to workers' comp? (Philadelphia Inquirer) - Driving a cab is one of most dangerous occupations in the country, with more fatalities than firefighters and cops. Yet when they get into a car accident or get robbed and shot, drivers, as independent contractors, have no workers' comp safety net to catch them. A fight is brewing in Philly over whether or not they are actually employees--for whom their employers should purchase comp--as in other cities.
Dangers Ahead! Disability Tsunami and Double-Billing - Check out this week's WORKERSCOMP ForumTM e-newsletter including: CMS delays, OSHA demands; beer-goggling for benefits; Maddy marvels at injury prevention success; RTW despite chronic pain; and more.
A Rocky Consignment for a Philadelphia Museum - The Philadelphia Museum of Art consigns two American masters but never sees the proceeds from their sale. Is AXA Art Insurance on the hook? The courts will decide.
Actual notice arguments insufficient to overcome benefits reversal - In North Carolina, an employee who fails to give her employer written notice of an accident within 30 days can still receive compensation if she proves there was a reasonable excuse and her employer was not prejudiced by the delay.
Age, not exposure, responsible for increased hearing loss - In Kentucky, to reopen a workers' compensation case based on increased hearing loss, the worker must establish that his condition worsened because of exposure to the original work-related noise.
Comp patients get 'no added benefit' from back surgery, study finds - Employees on workers' compensation who undergo surgery for back pain don't experience better outcomes than individuals who receive nonsurgical treatment, according to a study.
Disabusing Your Self-Funded Program of Double Billing - A study finds that 4 percent of workers' comp claims have duplicate medical billing sent to group health plans. To detect the problem, integrating disparate workers' comp and group health data is crucial.
Medical costs, accountability among key challenges identified for '10 - Controlling medical costs, improving accountability, and strengthening professional education are among the key challenges facing the workers' compensation claims industry in 2010, according to a survey.
Only YOU Can Prevent Injuries: Part 2 - Maddy's second part to her column on injury prevention, including how Costco and Fairmont Hotels have succeeded against the disability tsunami where others fail.
Oregon: Hearing will discuss disability rating standards - The Workers' Compensation Division will hold a public hearing on March 22 at 2 p.m. regarding proposed amendments to OAR 436-035 (disability rating standards).
WORKERSCOMP ForumTM Update: March 18, 2010 -
Bill to combat prescription abuse really will harm patients in pain (Seattle Times) - How should we deal with employees who abuse pain prescriptions? The state of Washington is trying to come up with answers in its legislature. One of the key facets of a new bill, which sits on the governor's desk, calls for doctors to get consultation from a pain specialist before prescribing opioids. The authors of this editorial, all pain specialists, disagree, strongly.
How Chris Dodd's FinReg proposal solves the problem of information, but not of regulators (Washington Post) - Ezra Klein tackles the Chris Dodd financial regulation proposals and asks whether they would have prevented the current financial calamity, or future ones. The answer appears to be no, mostly because the proposed new system, like the old, current one, would still require regulators to be superhuman to carry out the enforcement necessary to keep the industry in line.
Windpool: Coast insurer loses a boost (Clarion-Ledger) - From the self-declared No. 1 Web site in Mississippi, this editorial makes a good point about Gov. Barbour's recent veto of a law that would have given permission to the state to continue subsidizing the state Wind Pool Insurance. Now, the author says, windstorm insurance rates can be raised to make the pool sound. Not sure home owners and small business owners will agree, however.
Mankind Not Doomed: Official - Our at-large reporter and self-confessed egomaniac Roger Crombie reports, sort of, on Day Two of the World Insurance Forum 2010 in Bermuda and says a little more about his ascent to TV superstardom.
Risk Management: Process or Capability? - Read our online-exclusive Strategy columnist, David Wong, who asks the question: Is risk management more process or capability?
Berkowitz invests in AIG, 'still a good company' (Bloomberg) - The man named as Morningstar's domestic stock mutual fund manager of the decade told Bloomberg that he's bought more than 13 million shares of AIG and millions of its debt. The reason, he explained, was that AIG, holding company for Chartis and Lexington, is still a solid company. That helps explain how the AIG stock has shot up this year, about 14 percent up in fact.
CEOs Open up on Taxes, ERM at World Insurance Forum 2010 - Our able columnist Roger Crombie, our "official nut job," devotes some of his last days on Bermuda to reporting from the World Insurance Forum, a CEO panel fest.
Editor's Choice Stories: March 16, 2010 -
New Product Announcements: March 16, 2010 -
People on the Move: Brokers -
People on the Move: Insurance -
People on the Move: Risk Management -
Process Vs. Capabilities: Part 1 - Maybe the distinction between risk management process and capabilities is obvious to some, but most risk professionals probably do not understand that one is just as good as the other, or perhaps better.
R&I One®: March 16, 2010 -
Insurance causes flap in New Baltimore (The Daily Mail) - It's a wonder that insurance brokers want to deal with certain municipalities at all, considering the infighting and politics that go into every renewal. (For other cities, surely the process is much, should we say, smoother.) Anyway, this is the story of New Baltimore, a town in the Hudson-Catskill area of New York. The town council there spent a good part of its March 8 meeting bickering over which broker and carrier the town ought to renew with. Eventually, the incumbent was chosen, after agreeing to cut price.
CICA Highlights - As usual, the annual international conference of the Captive Insurance Companies Association featured some captivating content.
California study: Low-wage workers in L.A. rarely use comp system - An alarming number of low-wage workers in Los Angeles County (Calif.) are subject to "wage theft" and other labor violations, researchers said.
Despite treatment, depressed workers have higher short-term disability costs - Employees with depression have higher costs related to short-term disability and absenteeism even after receiving antidepressant therapy, according to a recent study.
Experts Offer Strategies to Curb Incidents of Workplace Violence - On Feb. 12, a professor at the University of Alabama-Huntsville went on a shooting rampage which left three employees dead and three injured. Health and safety experts said the tragedy is a reminder that violence in the workplace continues to be a significant problem across the country.
Nurses say violence is part of the job - Three-quarters of nurses providing private and public care experienced workplace violence, according to a recent study. However, only one in six incidents was formally reported.
Oklahoma: House, Senate committees approve six WC reform bills - Lawmakers in the Oklahoma House of Representatives and Senate recently approved several measures to reform the workers' compensation system.
TPAs Talk About Their Industry - Read the second part of our Claims Management In-Depth series for insight from top TPAs about what their prospective clients should look for in a third-party administrator.
Trucker awarded benefits for original injury despite intervening employment - In Georgia, the original employer may be liable for benefits where there is evidence that the initial job-related injury is the sole reason an employee is unable to work.
UPS retaliatory discharge case will go to jury - In Kansas, an employer cannot defeat a worker's retaliation claim by merely alleging the worker's poor job performance precludes him from establishing a causal connection.
Undocumented alien satisfactorily reports income to IRS - Under Florida law, the reporting requirement for wages is satisfied when the employee files a tax return informing the IRS of wages he earned with the employer he was working for when he was injured.
At war with workers' comp (FOX13) - Florida workers' comp laws were in part reformed to prevent doctor shopping, allowing an injured worker to change doctors just once. But now a new law is afoot to change that, to create a two-tier system that would allow catastrophically injured workers to see more doctors. Here's the story behind this new law.
Ground zero workers reach deal over claims (New York Times) - The W.T.C. Captive Insurance company set up to handle workers' comp claims coming out of post-Sept. 11 work has now settled in the U.S. District Court for the Southern District of New York, to the tune of up to $657.5 million with as many as 10,000 plaintiffs. It's an amazing turnaround after the hard-ball tactics the city of New York originally took with workers exposed to dangerous conditions at the ground zero site.
Chilean Aftershocks to Global Catastrophe Insurance Programs - As many as nine aftershocks struck Chile on March 11, some as strong as magnitude 6.9, perhaps stretching property insurance programs and claims resources to their limits.
Press Coverage Cited as a Risk in Goldman Sachs Filings - Goldman's 18-carat reputation was tarnished in the wake of revelations of bundling CDOs insured by AIG. Its media risk is a real exposure with possible serious repercussions.
What did we learn from the Cyber Shockwave ... March Madness can cripple our infrastructure (Forrester) - A couple weeks back, a cyberattack simulation was run called Cyber Shockwave. The storyline was that millions of people install an app on their smart phones thinking it's for March Madness, when in reality it turns out to be malware. The IT and telecom infrastructure crashes, terrorists attack with bombs, power goes out in major U.S. cities. It's up there with the worst-case flu pandemic scenarios. But is it possible in real life?
Inability to perform tasks affects assistant manager's claim - A manager or supervisor at a small business may be called upon to perform all of the duties necessary to conduct the business. If he cannot perform many of the duties because of a disability or injury, he may not be qualified for the position under the ADA and related laws.
Indiana: Take-out program offers carriers credits - The Indiana Compensation Rating Bureau posted Circular 2010-01 regarding the Indiana Pool Take-Out Credit Program for calendar year 2009. The program encourages carriers to remove, or take out, employers from the residual market.
Inflation volatility cited as significant planning concern for insurers - Inflation and inflation volatility should be significant concerns for property casualty insurers in the coming years, according to a recent study.
Massaging Your Premium - Many employers might be paying more for their workers' comp insurance than they should be and not even know it. Here's why.
Missouri: Lawmakers seek to keep Second Injury Fund solvent - The Missouri House of Representatives is considering legislation aimed at keeping the Second Injury Fund from going insolvent. However, critics of the bill said the move will lead to higher workers' compensation premiums for employers.
OSHA proposes requiring employers to track MSDs - Despite objections from the business community, OSHA recently unveiled its proposal to restore a column on the OSHA 300 Injury and Illness Log that would require employers to list work-related musculoskeletal disorders separately.
Returning to Work With a Pain in the Wherever - Chronic pain is not only debilitating for sufferers, it can drive presenteeism, absenteeism and higher disability costs for employers. The right RTW strategy can end the headache.
Safety supervisor fails to get intoxication verdict thrown out - Under Texas law, an insurance carrier is not liable for compensation if the injury occurred while the employee was in a state of intoxication.
Surviving, and Thriving, During an Audit - An audit can feel like an attack upon your skills and hard work. Don't let it be. Instead, make the audit a positive learning experience for all involved.
WORKERSCOMP ForumTM Update: March 11, 2010 -
Washington: DLI seeks comments on classifications - The Washington State Department of Labor and Industries issued a preproposal statement of inquiry for revising its classifications under WAC 296-17A (classifications for workers' compensation insurance).
FBI nab cyber-extortionist who sought $3 million from NY insurance firm (ZDNet) - Wow, here we were thinking that cybercriminals were super sophisticated, high-tech masterminds. Then along comes this fella with a scheme to extort hundreds of thousands of dollars from a New York (unnamed) insurance company. Check out the highlights of his "ransom" note, with such lines as, "My demand is now for $198,303.88. This amount is NOT negotiable, you had your chance to make me an offer, now I call the shots."
Can aging nuclear reactors be safe? (Scientific American) - Nuke power is in. New nuclear power plants are in the works, and existing facilities are now being allowed to run past their previous license periods ... sometimes 20 years past it. The author here wonders if this is a good thing, considering some recent mishaps at U.S. nuclear plants.
Captive Owners Cite Collateral Issues as Top Concern for 2010 - Collateral issues made No. 1 concern in CICA's survey, as insurers try to avoid being overexposed to certain banks. Chartis tops the list of fronting carriers.
Even If Data Is Integrated, It Still Needs To Be Successfully Managed - Integrating data into a single system is critical for lowering disability insurance claim costs. No matter what type of disability, occupational or non-occupational, centralizing data into a single system so it's readily available and accessible is ideal.
Editor's Choice Stories: March 9, 2010 -
New Product Announcements: March 9, 2010 -
People on the Move: Brokers -
People on the Move: Insurance -
People on the Move: Regional Brokers -
R&I One®: March 9, 2010 -
AIG "jewel' took 91 years to build, week to dismantle: Timeline (Bloomberg) - AIG has sold its major international life insurance units to Pru and now MetLife in the last week. These are the operations Hank Greenberg referred to as the "crown jewel" of AIG. Here, Bloomberg adds an interesting timeline to the story, starting from 1919, when Cornelius Vander Starr founded American Asiatic Underwriters in Shanghai, through the March 8 MetLife announcement about Alico.
Novato's Fireman's Fund selects the riskiest films of the year (Marin Independent Journal) - Fireman's Fund is one of the biggest insurers in Hollywood. Every year, around this Oscar time, the firm releases its list of the riskiest movies of the past year. This year's "winners" are 2012, Inglorious Basterds, Nine and Crazy Heart, to name a few.
Recent high profits for insurers attracting new underwriters (Space News) - Like most any commercial insurance niches out there, the space insurance market is soft ... perhaps dangerously so. Underwriters have increased capacity for satellite launches and lowered rates. The business is also attracting new entrants, underwriters who perhaps know less about what they're doing and write even cheaper rates. You know what happens next, right?
Adapting to the Real "Alternative" Insurance Market - Demographic changes in store for the United States give new meaning to the expression "alternative markets" when it comes to how the industry must recruit, train and market.
CMS delays implementing reporting requirements until 2011 - Facing mounting pressure from the insurance industry, the Centers for Medicare and Medicaid Services said it will delay the April 1 implementation date for the Medicare Secondary Payer reporting requirements until Jan. 1, 2011.
Comp Claim Costs, Economy Will Challenge Industry in '10 - Last year will go down in history as one of the most tumultuous on record for the property and casualty insurance industry. However, some analysts are hopeful that 2010 will see improvements in the world of workers' compensation.
Headaches may linger for 9/11 workers exposed to dust, fumes - Workers who were exposed to dust and fumes caused by the collapse of the World Trade Center frequently reported headaches years after 9/11, according to a report.
Insurance programs will be used in health care - According to the report by Avizent, innovative programs traditionally focused on the property and casualty market will be used in 2010 to control escalating costs in the health care arena.
Liberty Mutual 4Q Net Income Edges Up - Fewer CAT-related payouts and robust revenues from international operations help boost profits, despite intense price battles in commercial lines.
Minnesota: Study finds comp costs per claim are low - Workers' compensation costs per claim for injured workers in Minnesota were among the lowest of 15 states examined in a recent Workers Compensation Research Institute study.
Oregon: Division issues Spanish-language forms - The Workers' Compensation Division issued Bulletin No. 310 (Rev.) on Feb. 8, regarding Spanish-language forms 801S, Report of Job Injury or Illness, and 3283S, A Guide for Workers Recently Hurt on the Job, to meet the needs of injured workers whose primary language is Spanish.
Special needs trust fails to protect WC benefits - Unless and until an injured worker is deemed disabled by the Social Security Administration, she cannot exempt her workers' compensation benefits from counting as income through a special needs trust.
Washington: Department clarifies term 'hospitalization' - The Washington State Department of Labor and Industries announced changes to WAC 296-800-320 via expedited rule.
Weeklong concurrent employment does not void entire TTD award - In Ohio, TTD benefits cannot be paid for any period the employee is working. However, he may retain previously paid TTD benefits for periods after the conflicting employment has ended.
Hudson Steady as He Goes - A few weeks into the job, Scott Hudson likes what he sees at Gallagher Bassett and is confident he can move the TPA forward.
Saint Joseph's Tackles Risk (updated) - A Philadelphia-area university launches an ambitious risk management and insurance program housed in a rapidly growing business school.
From power to prison: The Tom Noe interview (13abc) - You don't have to be from Ohio to remember the Coingate scandal, when Tom Noe helped to lose millions upon millions of dollars in investments for the Ohio Bureau of Workers' Compensationdue through dubious investments in rare coins. Now Noe is behind bars for 18 years, but pleading his innocence during a TV interview with a local Toledo channel.
Caught on tape: Wave crashes into cruise ship (CBS News) - Somebody had a camera rolling when the Louis Majesty, a Mediterranean cruiseship with 1,350 passengers on board, was hit by a series of 30-foot waves. Two people were killed, 14 injured. The ship was off of Marseilles, France, when the rogue waves struck.
Book on Spitzer's downfall sets off angry replies (New York Times) - The New York Times received an advanced copy of the first book about Eliot Spitzer's governorship, Lloyd Constantine's "Journal of the Plague Year" (which is due in bookstores next week). Constantine was a senior advisor to Spitzer and long-time friend. The book's already got people in an uproar, including Spitzer himself and New York AG Andrew Cuomo, whose "Troopergate" investigation Constantine criticizes.
ASSE urges OSHA to finalize hazard communication rule - The American Society of Safety Engineers is urging the OSHA to finalize a regulation that would ensure that the hazards of all chemicals produced or imported are evaluated and communicated to employers and employees.
California: Benefit notices - The Division of Workers' Compensation scheduled a stakeholder meeting for Feb. 4 to discuss revisions to the benefit notice regulations and issues related to advising injured workers who do not have permanent disability that their claims have been closed.
California: Medical fee schedule - The Division of Workers' Compensation posted an order adjusting the durable medical equipment, prosthetics, orthotics and supplies section of the official medical fees schedule to conform to changes in the Medicare payment system as required by Labor Code Section 5307.1.
Carrier must authorize treatment for preexisting diabetes - In Florida, a carrier must provide treatment for a condition that may not be related to the work accident if treatment or stabilization of the condition is necessary to assist the employee in recovering from the compensable injury.
Choosing a TPA: Part III - Columnist Mark Noonan explores the importance of TPA data and network capabilities, and the difficulties of using more than one TPA.
Colorado: Governor examines possible sale of state WC insurer - Officials are considering selling Colorado's interest in Pinnacol Assurance, the state-chartered but independently run and funded workers' compensation insurance firm.
Employer can't unilaterally stop benefits but can avoid penalty - In Nebraska, employers are prohibited from unilaterally modifying a workers' compensation award. An award remains in full force and effect until an agreement is made between the employer and employee which is approved by the Nebraska workers' compensation court.
Fate of Colorado's Workers' Comp Agency in the Balance - Lawmakers and the governor face a mile-high hurdle in overcoming the state budget deficit. For the governor, selling the state-chartered comp insurer could be key to overcoming it.
Nevada: Mileage reimbursements - The Workers' Compensation Section announced that effective Jan. 1, the standard mileage reimbursement rate for transportation costs incurred using a private vehicle to travel on official state business had been decreased from 55 cents to 50 cents per mile.
Not What He Was Signing up For - While applying for a construction job on-site, a man gets hit by a falling tree and dies. Was he an employee in the eyes of the law?
Survey finds layout, office environment design can motivate employees - An ergonomically designed office environment not only can reduce the likelihood of musculoskeletal disorders, it can also help employees reach optimum productivity.
WORKERSCOMP ForumTM Update: March 4, 2010 -
Earthquake a major blow to Chile's wine industry (Miami Herald) - Between the massive magnitude 8.8 quake, the resulting local tsunami and the continued effects of infrastructure damage, the human suffering and economic costs of the Chilean catastrophe are immense. There will be plenty of individual stories and news angles coming out of Chile for weeks. Here's one, a look at one of the commercial sectors hit hardest: the Chilean wine business.
Mortal combat: Risk in the Winter Olympics (Religion Dispatches) - Here is one intriguing, good read about the nature of risk inherent in the recently ended Winter Olympics, and our understanding and appreciation as a society for those risks, and of risk in general. Essentially, the author argues that Americans love risky behavior but hate the consequences ... that we're risk-averse voyeurs but don't know it.
Editor's Choice Stories: March 2, 2010 -
European (Re)insurers Swing to Profitability in 4Q - Swiss Re and Allianz Group, citing a lack of catastrophe payouts and austerity programs, return to profitability.
Find the 2010 Power BrokerTM Winners - Follow this link to find the 2010 Power BrokerTM winners.
No Middle Ground for Middlemen Commissions (updated) - The New York Insurance Department's decision on contingent commissions does not heal the rift between broker and risk manager, nor does it really fix the original problem.
R&I One®: March 2, 2010 -
Winners and Losers in Water Risk Management - A few corporate leaders show peers how to mitigate and report their water risks, while the rest of the pack appears willing to wait until they are forced to do so.
Video of earthquake damage in chile (The Lede) - This New York Times' blog entry links to a collection of footage from Chile during and after this weekend's massive quake, as well as to resources and up-to-the-minute accounts online.