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To Settle or Not to Settle: That is the Question - A multitude of factors go into the decision to either settle or litigate.
The Doctor will Review you now - When doctors -- not nurses -- conduct utilization reviews, cases are handled more smoothly.
California: Division makes changes to conform to Medicare fee - The Division of Workers' Compensation adjusted the pathology and clinical laboratory portion and the durable medical equipment, prosthetics, orthotics, and supplies portion of the official medical fee schedules.
Executive's failure to log appointment nixes benefits for carjacking - In New Jersey, evidence that an employee was not engaged in work when he was assaulted by a carjacker will undermine his claim that the incident arose out of and in the course of his employment.
Workers' Comp Forum: January 26, 2012 -
Chiropractors successfully nullify IME law as unconstitutional - In Oklahoma, laws that exclude physicians other than medical doctors or doctors of osteopathy, including the definition of "qualified independent medical examiner" are unconstitutional.
Property/casualty executives doubtful about comp profitability in 2012 - Property/casualty CEOs and analysts have high hopes about 2012 except for the workers' comp line.
Updated inspection program targets most hazardous federal work sites - An inspection program focusing on federal agencies has been continued and updated. OSHA announced its new directive for the Federal Agency Targeting Inspection Program, continuing the program at least through FY 2012.
Child welfare worker wins benefits for injuries in workplace restroom - In Illinois, a worker's injuries arise out of her employment if her employment was a contributing factor in the accident.
Untreatable Tuberculosis Baffles Doctors - Public-health officials and insurers are trying to figure out how to handle the deadly virus.
People on the Move: Insurance -
People on the Move: Brokers -
Products: Jan. 24, 2012 -
How Many Injured Workers Die from Opioids? - Conventional claims operations have helped sweep the opioid issue under the rug.
R&I One: January 24, 2012 - In this issue: untreatable tuberculosis baffles doctors; federal flood insurance program gets extension; solar storm hits Earth; Obama rejects pipeline; new CEO at Swiss Re; BP may double oil spill pay-out; and more.
People on the Move: Specialists -
BP May Double Oil Spill Pay-Out (Financial Times) - BP may agree to pay up to $25 billion to settle all charges, including possible criminal charges, with the U.S. government over the devastating Gulf of Mexico spill, according to an analyst at Morgan Stanley, double the figure the company has set aside.
Safety Probe Clears Chevy Volt (Wall St. Journal) - In the wake of battery fires, GM will voluntarily repair existing and new vehicles.
Obama Rejects Pipeline from Canada to Texas (USA Today) - Although the issue may be far from over, President Obama rejected the Keystone XL pipeline.
Tipping Point: Cruise Ships Set Sail Close to the Edge - More than five times as high above the water line as it is below the water line, the Costa Concordia reveals how modern ship design push the boundaries of safety.
Strongest Solar Storm Since 2005 Hitting Earth (Yahoo! News) - The sun is bombarding Earth with radiation from the biggest solar storm in more than six years with more to come from the fast-moving eruption.
Editor's Choice Stories: January 24, 2012 -
Swiss Re Names Michel Lies CEO (Bloomberg Businessweek) - Swiss Re Ltd. the world¿s second-largest reinsurer, promoted Michel Lies to succeed Stefan Lippe as chief executive officer from next month.
Worker wins benefits after dog incident causes surgery failure - In Tennessee, a worker's reinjury is not compensable when it is the result of an independent, intervening cause attributable to the worker's conduct.
Depression after business failure doesn't warrant benefits - In New Hampshire, a mental injury for a business failure taken in good faith is not compensable.
Washington: Department explains stay-at-work rules - The Department of Labor and Industries proposed rules regarding the new stay-at-work program established by the legislature.
One year anniversary passes for Zadroga Act - The federal health program established to provide medical evaluation and treatment for eligible responders and survivors of the Sept. 11 terrorist attacks has been on the books for a year.
New members are on board for comp conference - Venditti believes employers and insurers would do themselves a favor by gaining an understanding of psychosocial issues affecting workers' comp claims.
Legislation would abrogate Missouri appeals court decision, sponsor says - Coworkers who are a party to workplace accidents would be protected from personal lawsuits under legislation introduced in the Missouri Senate. The reform legislation also would restore workers' comp as the exclusive remedy for workplace accidents.
Texas: Explanation of benefits gets rewrite - The Division of Workers' Compensation proposed amendments to rules regarding general medical provisions and preauthorization, concurrent utilization review, and voluntary certification of health care.
Oregon: Division updates administrative cost factor - The Workers' Compensation Division revised the administrative cost factor to 16.60 percent for 2012.
Washington: Medical provider network might be established - The Department of Labor and Industries issued a preproposal statement of inquiry regarding the establishment of a medical provider network to treat injured workers of employers insured with the department and of self-insured employers.
Labor Department finalizes rule for recreational vessel workers - More maritime workers are now excluded from coverage under the Longshore and Harbor Workers' Compensation Act. Regulations pertaining to workers in the recreational vessel industry take effect Jan. 30.
Instructions, deadline given to worker don't reveal employment relationship - In Ohio, a company setting a deadline for a worker does not suggest that the worker is an employee.
ACOEM updates distinguishing features of occupational hearing loss - Occupational noise induced hearing loss results from continuous or intermittent noise exposure and duration and develops slowly over several years.
Coach's concurrent employment increases average weekly wage - In Kentucky, if a worker's supervisor has knowledge of her concurrent employment, her AWW should include her wages from the second job.
Golf Ball to the Head Not Compensable - Is officer entitled to compensation for injury at charity golf tournament?
People on the Move: Brokers (Jan. 17, 2012) -
Editor's Choice Stories: January 17, 2012 -
New Product Announcements: Jan. 17, 2012 -
R&I One: January 17, 2012 - In this issue: insurance scammer finally seized; airlines see no rate turbulence; Excedrin, No-Doz and other popular brands recalled; Russian spacecraft crashes to Earth; Aon moves headquarters to London; natural disasters cost $435 billion in 2011; and more.
People on the Move: Specialists (Jan. 17, 2012) -
People on the Move: Insurance (Jan. 17, 2012) -
Airlines See No Rate Turbulence - While the industry struggles with bankruptcies and high fuel prices, its insurance outlook looks smooth.
Tolling shields claim for temporary disability from dismissal - In Virginia, the tolling mechanism operates twice in cases in which a worker works light-duty employment after receiving temporary disability payments and during and after receiving permanent partial disability payments.
Insurance Scammer Finally Seized - After defrauding an insurance company of millions then faking his own death in an attempt to evade authorities, a brazen insurance scammer is finally caught in Canada.
Novartis Recalls Excedrin, Gas-X and Other Popular Brands (Bloomberg Businessweek) - With stray tablets from other products appearing in the over-the-counter medicines, along with broken tablets, Novartis conducted a voluntary recall that could cost the company as much as $750 million.
Recalculation of prior impairment rating required to reconcile injuries - In Nevada, the rating physician must reconcile the different editions of the Guides to the Evaluation of Permanent Impairment by recalculating the previous impairment rating using the current edition and subtracting the recalculated percentage from the current level of impairment.
Fed Study Cites Woeful Medical Error Reporting - Six out of seven medical errors harming Medicare patients go unreported by hospital employees, according to a federal study released on January 6.
NIOSH promotes safety in auto repair industry - More than 1.3 million U.S. workers are employed in the automotive repair and maintenance services. Because of the serious health risks these workers face, federal agencies have developed safety goals for the industry.
Aon: Global Economies Face $435 Billion Natural Disaster Legacy from 2011 (PR Newswire) - With 253 seperate natural disaster events generating $435 billion in damage, 2011 was one of the worst years on record.
Zappos Hacked, Data for 24 Million Customers Exposed (CNN Money) - The massive security breach at the popular internet shoe store compromised customer names, email addresses, phone numbers and the last four digits of their credit cards.
Manson Insurance Officials Ordered to Pay $5.2 Million After Fraud Convictions (Wausau Daily Herald) - Former Manson CEO David Scholfield and former company Treasurer Susan Brockman were also sentenced to six months in prison in December.
Ohio: Bureau reviews rule on adjudicating committee - The Bureau of Workers' Compensation proposed to amend a rule regarding the bureau's adjudicating committee.
Russian Spacecraft Crashes to Earth (USA Today) - The $170 million craft was one of the heaviest and most toxic pieces of space junk ever to crash to Earth.
Therapist's expectation of worsening of injury blocks claim for bunions - In South Carolina, a worker is not entitled to benefits for the worsening of a preexisting condition if the worsening of the condition was not unexpected.
California governor appoints Baker as DIR director - California Gov. Edmund G. Brown has appointed Christine Baker to be director of the Department of Industrial Relations, which oversees the Division of Workers' Compensation.
Advisory board welcomes new members with comp experience - Conference planners are already at work developing the program for the 2012 National Workers' Compensation and Disability Conference® & Expo. As potential speakers submit requests for proposals, these are several of the new members of the Advisory Board.
Aon Moves Corporate Headquarters to London (Washington Post) - The company sites improved access to emerging markets, increased financial flexibility and proximity to Lloyds as reasons for the move.
Driver's preexisting heart disease, risk factors scuttle widow's claim - In Virginia, no presumption that a worker's death arose out of and in the course of employment exists when the worker suffers from preexisting heart disease and subsequently dies of cardiac arrest at work.
Complete cellphone ban while driving is unlikely, expert says - Chances of the National Transportation Safety Board's recommended ban on the use of portable electronic devices by drivers are probably slim to none. But the issue should serve as a wake-up call for employers interested in reducing their workers' comp costs, suggests an industry insider.
Louisiana: Costs per claim show fastest growth in 16-state WCRI study - Louisiana has the dubious distinction of having the fastest growing costs per workers' comp claim from 2007 to 2009 in a multistate study.
Workers' Comp Forum: January 12, 2012 - In this issue: work-related musculoskeletal disorders cost healthcare employees dearly; OSHA targets winter-storm related injuries; columnists offer a look back at the history of workers comp and offer predictions for 2012; California regulators encourage electronic filing; cost-per-claim rises in Louisiana; and more.
Fall due to low blood pressure is idiopathic, noncompensable - In Arizona, the effects of falls due to fainting spells are generally not compensable unless the employment places the worker in a position increasing the dangerous effects of such falls.
Illinois: Commission gives arbitrators guidelines for disability awards - The Workers' Compensation Commission issued guidance to arbitrators regarding the standard of determination for PPD awards.
Desire to relieve pain from work injury supports claim for overdose - In New York, a worker's death resulting from an accidental overdose taken to relieve a condition caused by a work-related accident can be compensable.
First Federal Insurance Chief Walks Fine Line - At the Joint Industry Forum in New York, Michael McRaith outlined his first six months as director of the Federal Insurance Office, sharing plans for the future.
How Can We Be Apple, Not IBM? - The role of talent and luck in achieving great success.
Thumbing Noses at Exposure - For at least one business owner, no amount of press coverage or exposure is worth the risk and the hassle of primary season.
People on the Move: Specialists (Jan. 10, 2012) -
New Product Announcements (Jan. 10, 2012) -
Editor's Choice Stories: January 10, 2012 -
People on the Move: Insurance (Jan. 10, 2012) -
The Small Claims Approach - A California woman's approach to suing Honda may not be novel, but it could be effective, according to a litigation expert.
People on the Move: Brokers (Jan. 10, 2012) -
R&I One: January 10, 2012 - In this issue: Honda sued in small claims court; new Chartis hire will mine AIG data; prescription pill addicts are a threat to pharmacists; drunken person kicks, punches and urinates on $40 million painting; Japan plans tougher tests and term limits for nuclear plants; and more.
New OSHA page targets winter storm-related injuries - About 70 percent of injuries during winter storms are caused by motor vehicle accidents, according OSHA. The rest result from being caught out in a storm.
Prescription Pill Addicts Pose Violence Risk to Pharmacies (New York Times) - "I just want to get out of here alive" said one pharmacist.
California regulators announce rule changes to encourage electronic filing - More claims administrators, representatives, lien claimants, and self-insured employers are now able to switch from paper to electronic filing.
Drunk Kicks, Punches and Urinates on $40 Million Painting (Daily Mail) - The 36-year-old woman damaged the Clyfford Still painting at a museum in Denver.
State's failure to file accident report extends filing deadline - In Kansas, if an employer has notice of a worker's work-related accident and fails to file an accident report, the time limitation for the worker to file a claim for compensation is extended beyond the usual deadline of 200 days.
Oddly Mild Winter Leaves Much of U.S. on Thin Ice (Laredo Sun) - The mild weather has hurt business for ski resorts while partially frozen lakes pose risks to hockey players and ice fisherman.
Washington: Department modifies base rates - The Department of Labor and Industries amended the tables of classification base premium rates, experience rating plan parameters, experience modification factor calculation limitations, and retrospective rating plan size groupings for the workers' compensation insurance program for 2012.
Varied duties undermine compensability for shoulder injury - In Iowa, evidence that a worker did not engage in repetitive labor will undermine a claim for a cumulative injury.
Study: Aches cost health care employers hundreds per month, per employee - Work-related musculoskeletal disorders may be costing health care employees a bundle in lost productivity, a new study concludes. Interventions to prevent or help workers better manage MSDs may help save money in increased presenteeism.
Exclusive remedy doesn't bar worker's claim after hospitalization - In New Hampshire, a worker can bring a claim for wrongful termination either under the workers' compensation law or some other law but may not bring a claim under both.
Japan Plans Age Limits, Tougher Tests for Nuclear Plants (Wall Street Journal) - After the Fukushima disaster, Japan plans much more stringent tests for nuclear plants.
New Hire Will Mine AIG Data (Wall Street Journal) - Chartis' new chief science officer Murli Buluswar hope to improve loss forecasts, reduce costs and devise more accurate pricing for insurance policies.
Watch for TBI symptoms to prevent unnecessary disability - Early diagnosis and treatment of traumatic brain injuries offer the best opportunity for recovery, according to researchers at Paradigm Management Services.
Maine: Deadline for comments on 14-day rule approaching quickly - The Workers' Compensation Board proposed amendments to the 14-day rule.
Michigan governor signs workers' comp reform legislation - The first overhaul of Michigan's workers' comp system in more than two decades is in effect, thanks to passage of reform legislation. H.B. 5002 was signed into law by Gov. Rick Snyder.
Employer not entitled to ex parte communications with physician - In Georgia, an injured worker is not required to authorize her physician to conduct ex parte communications with her employer's attorney in exchange for continued benefits.
Understanding, addressing traumatic brain injuries leads to better outcomes, experts say - Traumatic brain injuries don't happen often. But one TBI can wipe out the entire finances of a small company -- in addition to destroying lives.
Worker fails to prove necessity for in-ground pool - In Florida, an examining psychiatrist's opinions regarding the psychiatric necessity for a pool at a worker's residence will hold little weight where no psychiatrist diagnosed him with a psychiatric condition.
WCRI studies show recessionary impacts on state comp systems - Injured workers have been staying out of work longer in many states recently. That's one of the findings of a new analysis series from the Workers Compensation Research Institute.
Washington: Department seeks to clarify missed appointments - The Department of Labor and Industries proposed a rule to clarify under what circumstances a provider can charge an injured worker for "no show" or "missed appointments" related to the industrial injury on an approved claim.
Workers' Comp Forum: January 5, 2012 - In this issue: recessionary impacts on state comp systems; workers' comp reform legislation signed in Michigan; medical best practices lead to fewer lost work days, lower costs; company can't dodge liability for spinal injury; and more.
Is a hairdresser considered an employee of a nursing home? - A hairdresser works as an independent contractor with a nursing home. When she's injured, does the nursing home have to pay workers' comp?
Alaska: Medical services payments get second look - The Workers' Compensation Board proposed changes to rules dealing with payments for medical fees and services and proceedings before the board.
People on the Move: Specialists -
Editor's Choice Stories: Jan. 4, 2012 -
The Year in Workers' Comp - Another interesting year in workers' comp has passed. So what's ahead for workers' comp in 2012? The experts have plenty of opinions.
Products -
R&I One: January 4, 2012 - In this issue: cyber threats gaining attention; record catastrophe losses lead to double digit rate hikes; Honda sued in small claims court; ex-NFL players sue over head injuries; airplane deaths hit record low; and more.
People on the Move: Insurance -
Police Line-of-Duty Deaths Up 13 Percent (Sarasota Herald-Tribune) - Law enforcement deaths in the line of duty are up 13 percent this year. For the first time since 1997, more officers died in shootings than in traffic accidents.
Cyber Threats Gaining Attention - If vendors and risk consultants are right, 2012 could be a dreadful year for cyber attacks.
Airplane Deaths Hit Record Low (Huffington Post) - With two deaths for every 100 million passengers, flying commercial has never been safer.
Record 2011 Catastrophe Losses Lead To Double-Digit Premium Hikes - Commercial property rates are up significantly during this renewal season, after an unusually rough year.
BP Still Wants Halliburton to Pay for Whole Gulf Oil Spill Cleanup (CNN) - BP and Halliburton remain at odds over which company is responsible for the Gulf oil spill.
Mental Health Stigma Recedes - More than a decade after Sept. 11, employers are willing to tackle risks associated with mental health.
Ex-NFL Players Sue Over Concussions (ESPN) - Twenty-three ex-pros have sued the National Football League over severe and permanent brain damage they may have suffered as players.
Woman Sues Honda in Unlikely Place: Small Claims Court (Associated Press) - Rather than going for a class-action lawsuit, a woman sued the automaker in small claims. A win could set off a firestorm of small claims cases.
People on the Move: Brokers -
Read What Happened at the Workers' Comp Conference® - At yesterday's sessions of the Workers' Comp Forum conference in Las Vegas,
Study: Medical best practices equal fewer lost work days, lower costs - "Financial incentives, coupled with care management support, can improve outcomes, prevent disability, and reduce costs for patients receiving occupational health care," concludes a new report.
Ohio: Outpatient medication formulary may restrict some drugs - The Bureau of Workers' Compensation proposed to revise a rule regarding the outpatient medication formulary by adding restrictions and limitations on the reimbursement of certain drugs.
Wrist surgery, scar justify benefits for arm injury - In Tennessee, when there is a close connection between two scheduled members, an injury should be attributed to "the greater."
Workers' Comp Forum: December 22, 2011 - In this issue: industries losing the most productivity due to occupational illness and injuries; restaurant safety program targets young workers; predictions for 2012; are we ready for the aging workforce?; and more.
Predictions and Wishes for 2012 - As we wrap up 2011 and look forward to 2012, here are my thoughts about what I expect to happen in the workers' compensation industry and what I hope we can achieve.
Company can't dodge liability for spine injury - In Idaho, to prove a worker's employability, an employer must show that there is an actual job within a reasonable distance from the worker's home that he has a reasonable opportunity of being hired to perform.
New York: Permanent impairment guidelines ready to take effect - The Workers' Compensation Board developed the 2012 guidelines for determining permanent impairment and loss of wage-earning capacity for use by medical professionals, carriers, attorneys, and the board in the evaluation of permanent disabilities.
Report encourages returning injured employees to work to save money - The challenging economy is leading to longer disability durations, adding to employers' workers' comp costs, but by focusing on systems that enhance return to work and avoiding those that create barriers, workers' comp participants can minimize the impact, according to a new report.
Transportation Board Recommends Full Ban on Cell Phone Use While Driving (CNN) - The National Transportation Safety Board recommends a nationwide ban after nearly 3,100 people died from distracted driving last year.
Closing the Hospital Terrorism Gap - A Lloyd's syndicate thinks it has identified a gap in the market: bespoke hospital terrorism insurance.
Products: December 20, 2011 -
People on the Move: Brokers -
Risks of Reality TV - Reducing risks for everyday people who do stunts and dangerous activities on reality TV can be tricky.
People on the Move: Insurance -
Disaster Losses Hit Record Level in 2011(Wall Street Journal) - Japan's tsunami and insuing nuclear disaster, earthquakes in New Zealand, floods in Thailand and a series of severe tornadoes in the U.S. all contributed to $350 billion in disaster losses.
R&I One: December 20, 2011 - In this issue: reducing the risks of reality TV; insuring against hospital terrorism; EPA report fuels fracking debate; risk of identity theft up for business travelers; digital healthcare records brings risks; and more.
Editor's Choice: December 20, 2011 -
People on the Move: Specialists -
Digital Healthcare Data Raises Risk of Breaches (New York Times) - While many are hoping that electronic healthcare data can help doctors make diagnoses and find cures quicker, it could lead to more security concerns.
Settlement Reached in Chinese Drywall Case (Reuters) - The settlement, which could range from $800 million to $1 billion, serves as a cautionary tale to American builders.
After Thai Floods, Companies Reconsider Risk (Forbes) - In the wake of Thailand flooding, technology companies are reassessing how they handle catastrophes.
Opioids in workers' comp take center stage at conference - One of the biggest issues emerging in workers' comp discussions of late is the use, misuse, and abuse of narcotics by injured workers, specifically -- opioids.
Days away from work data highlights health care risks - While the rate of occupational injuries and illnesses requiring days away from work has remained generally steady over the past year, some industry sectors have seen increases. Most notable among them was health care, according to the latest figures from the Bureau of Labor Statistics.
Travel during rush hour for early meeting not compensable - In New Jersey, the fact that an employer directed a worker to arrive early for a business meeting does not provide a basis for compensability for an injury that occurred while traveling to work.
EPA Fracking Report Adds Potential Layer of New Exposure - For the first time, the U.S. government finds compounds used in natural gas drilling in drinking water.
New protocols seek to control pain management - Nevada will soon implement new procedures to address two issues that are creating angst in the workers' comp system throughout the nation: chronic pain and the use of opioids.
Young workers targeted in OSHA alliance - Almost one-third of the 11.6 million employees in eating and drinking businesses are under 20 years of age. With that in mind, a new partnership focused on enhancing restaurant safety takes a specific look at young workers.
Oregon: Division sets premium assessment rate - The Workers' Compensation Division determined that an assessment rate of 6.2 percent of direct earned premium will be applied to insurers for all premium earned on or after Jan. 1, 2012.
Principal eligible for benefits but denied fees and penalties - In Louisiana, an injured worker's request for penalties and attorney's fees for her employer's termination of her benefits can be denied when a doctor opines that she could return to work without restrictions and she exaggerated her symptoms.
Company's failure to pay premium results in liability for worker's injury - In South Carolina, a carrier is authorized to exercise its discretion as to when a premium endorsement is necessary.
Did a laborer's fall from bridge arise out of his employment? - A worker with marajuana and cocaine in his system fell from a bridge while on the job. Is he entitled to benefits?
Experts compare erionite to asbestos, warn about health effects - Little is known about the health effects of erionite. Nevertheless, "airborne occupational erionite fiber exposures should be considered at least as hazardous as asbestos fiber exposures," according to the National Institute for Occupational Safety and Health.
Delaware: Industrial accident meeting leads to changes in rules - The Industrial Accident Board and the Office of Workers' Compensation held a public meeting regarding comprehensive changes to the board's rules.
Pressman not required to secure interviews with prospective employers - In Georgia, an injured worker is not required to show that he secured interviews and visited prospective employers in person to establish that he diligently conducted a search for suitable employment.
Comp doesn't cover worker's collision with tree in employer's parking lot - In Illinois, an employee is not entitled to benefits if his activities did not expose him to an increased risk of injury.
CWCI: Latest network provider study suggests 'continuing maturation' - California workers' comp payers may have shifted their focus to directing injured workers to provider networks from the beginning of their claims, according to a new study. The report shows the trend toward the increasing use of network providers in the workers' comp system is continuing.
Workers' Comp Forum: December 15, 2011 - In this issue: useful lessons in workers' comp's 100th year; lax fee schedules equal higher medical costs; OSHA's top workplace violations of 2011; tackling coexisting conditions can decrease workers' comp costs; new bill may give workers' comp a boost; and more.
Drivers claim 'extrahazardous' activities despite retailer's business - In Wyoming, an employer's primary business dictates its workers' compensation classification, not the activities of its employees.
Risk of Identity Theft Goes Up For Business Travelers (USA Today) - Experts say data theft goes through the roof on the road.
LoriAnn Lowery-Biggers - President, Field Operations Navigators LoriAnn Lowery-Biggers, field operations president of Navigators Management Co., has made a point to say publicly that, despite the name, Navigators isn't just a marine underwriter. It's much bigger than that, as they say in Texas where Lowery-Biggers returned a couple of years ago to take the senior executive position Navigators created for her. The firm also offers a variety of property and casualty lines and specialty coverages such as customs bonds. With the former Lloyd's North American president cast in a leading role, the company recently set sail for expanding markets to the south, and is building a Latin American reinsurance arm. Macquarie Securities analyst Ryan Byrnes said he expects some growth in that sector in 2012. Still, Navigators remains one of the largest ocean marine underwriters, and Byrnes said the marine energy field in particular should see some rate increases because of recent losses connected to the Deepwater Horizon oil spill.
R&I One: December 13, 2011 - In this issue: 12 insurance executives to watch in 2012; winds rock Southern California; Tiger Woods as a model for reputational risk; Ford recalls 129,000 cars; Canada exits climate talks; and more.
Peter J. Eastwood - President and CEO Lexington Insurance Co. Peter J. Eastwood, president and CEO of Lexington Insurance Co., is a protégé of Kevin Kelley, perhaps the most respected surplus lines underwriting executive working in the world today. Still relatively young, but already with 20 years of experience at AIG under his belt, Eastwood earlier this year was given the additional title of president and CEO of Chartis U.S. as part of AIG's reorganization of its crown jewel in commercial property/casualty. If AIG is prepared to bestow additional responsibilities onto Eastwood, it's a measure of the high regard in which AIG's brass holds its young, up-and-coming leader. With Lexington already the No. 1 U.S. surplus lines underwriter, and the surplus lines marketplace having reached a growth plateau, Eastwood is in a position to deploy his considerable talents helping to rebuild Chartis. That's why the industry needs to keep tabs on Eastwood.
Lori Dickerson Fouché - CEO Fireman's Fund Insurance Lori Dickerson Fouché, formerly president of the Fireman's Fund commercial insurance business, in July was promoted to the top job -- the fifth CEO for the Novato, Calif., insurer in six years. With Fouché still honing her corporate strategy, it's worth watching what unfolds at Fireman's in 2012. Look for this Princeton and Harvard-educated executive to put her imprint on operations. Brian O'Larte, a senior financial analyst at A.M. Best Co., doesn't think there will be a change in the near-term strategy of focusing on small to middle-market commercial lines and specialized niches, such as entertainment and personal lines for high-net worth individuals. Expect Fireman's, which is owned by Germany's Allianz SE, to put to good use Fouché's heavy marketing background at the company and previously at Specialty Insurance in New York, N.Y. "The company wants to strengthen its relationship with independent agents and I think Lori is more than qualified to do that," O'Larte said. "Just talking to the CEO is a big thing for some agents. Lori has got that kind of personality and so communication should improve."
Mario Vitale - President, U.S. Insurance Aspen Insurance Holdings Ltd. Mario Vitale enjoys building, and that's what appealed to him this year when he was offered the job to build the U.S. insurance operation for Bermuda's Aspen Insurance Holdings Ltd. Vitale, 55, hit the ground running as president, laying the foundation for Aspen to grow. The soft insurance market, notwithstanding, he thinks the marketplace has shifted into a self-correcting phase that creates opportunities for smaller, specialty insurers to flourish with a strategy that doesn't rely solely on pricing. Aspen has secured licenses to sell policies in 47 states, and has opened field offices in New York and San Francisco. He expects to open more offices soon in Chicago and Houston. Aspen targets risks Vitale refers to as "niches within niches." Aspen will have plenty of rivals as it attempts to establish itself next year as a formidable player. With Vitale's resume including the former CEO of Zurich in North America's global corporate business, and a senior executive with broker Willis, it's worth watching him steer Aspen in 2012.
Winds Whip Risks - Wind speeds top 140 mph in Southern California, as utilities argue for rate increases to cover wildfire risks.
WaMu Ex-Officials Settle FDIC Lawsuit (Wall St. Journal) - Three former executives agreed to settle a civil lawsuit stemming from the biggest-ever U.S. bank failure for less than 10 percent of the $900 million that was sought by federal regulators.
Peter D. Hancock - CEO Chartis Even if AIG isn't as big, as rich or as powerful as it used to be, the company casts such a shadow over the entire property/casualty universe that everyone takes notice of what happens at the insurance giant. Peter D. Hancock, a former vice chairman of KeyCorp and senior manager at J.P. Morgan, joined AIG in February 2010. He was appointed CEO of Chartis in March, part of a reorganization of Chartis into a more streamlined structure consisting of two major global groups, commercial and consumer insurance. Despite the near collapse of AIG three years ago, Chartis has retained 92 percent of its clients, and its property/casualty carrier's management bench remains loaded with talent. In September, Hancock said Chartis was going to emphasize "value over volume." Its goal is not to become the biggest but the most valuable property/casualty company in the world. Hancock will be expected to boost profitability at Chartis and thereby help enhance the equity value of AIG. It's a bold promise and a formidable challenge, and why he bears watching in 2012, particularly in light of heavy catastrophe losses reported in the third quarter.
William R. Berkley - Chairman and CEO W.R. Berkley Corp. William R. Berkley has been in the insurance business ever since he launched his company with $2,500 out of Harvard's business school in 1967. That means he's been playing the property/casualty coverage game for nearly 45 years. He loves the niches, having built a small empire on insuring NFL teams, cooperative apartment buildings, tanning salons and scuba-diving operations risks that mainstream carriers just won't touch. This year, the company bearing his name formed Berkley Re UK Ltd. and Berkley Techology Underwriters. Last year, the company formed Verus Underwriting Managers. In 2009, Berkley launched underwriting units in professional services, agribusiness, transportation, and the oil and gas sectors. It set up a Lloyd's syndicate. Just how long Berkley, 67, is going to keep working is exactly what some industry watchers are curious about. His son, William Berkley Jr., is being groomed to take over the business once his father steps aside. Will that be next year? No one knows, but you can bet people will be watching.
Evan G. Greenberg - Chairman and CEO ACE Ltd. Evan G. Greenberg, who once worked in the shadow of his famous father Hank Greenberg at AIG, has made a name for himself in commercial insurance as chairman and CEO of ACE Ltd. Some would argue that the younger Greenberg, 56, now should be regarded among the industry's titans for growing ACE into a major force in the global insurance marketplace. To that end, the prestigious St. John's University School of Risk Management will recognize him in January in New York City as its 2011 Insurance Leader of the Year. During the stressful economy, Greenberg positioned a strong ACE to take advantage of opportunities to expand in the United States and Asia. Securities analysts have called him astute for putting together a diverse mix of insurance risks around the world, making ACE less exposed to soft pricing in America. Recent acquisitions he's orchestrated in Malaysia and South Korea, and the insurer's bigger foray into U.S. crop insurance have lifted company profits and its stock price this year. Greenberg expects to keep expanding ACE's market reach next year. Watch him to see where he leads ACE in 2012.
John Nelson - Chairman Lloyd's of London John Nelson, a former investment banker for three decades, in October replaced the big shoes of retiring Lloyd's of London Chairman Lord Peter Levene. Hit hard by a wave of catastrophes in 2011, a protracted soft pricing market and impending Solvency II regulation, Nelson steps in at a crucial juncture for venerable Lloyd's. He's only the second outsider at the top of Lloyd's in its 323 years. Chris Waterman, managing director and head of EMEA Insurance at Fitch Ratings, said his agency will be closely watching whether Lloyd's premiums will rise in 2012, "the only lever available to improve profitability." Expect Nelson to sound the alarm over potential excessive regulation. In April, he told The Daily Telegraph he plans on heavily lobbying the U.K. government on the threat that would be imposed on the insurance industry "were regulation to be ramped up much more."
Canada Exits Climate Change Summit (New York Times) - The fraying agreement took a big hit as Canada withdrew from the 1997 accord to reduce greenhouse gases around the world.
Ford Recalls 129,000 Cars, Wheels Might Fall Off (Pocono Record) - A tough year for the automotive industry just keeps getting toughter, as Ford announced it will recall Ford Fusions and Mercury Milans because of deficient wheels.
Kevin Kelley - CEO Ironshore Kevin Kelley, CEO of Ironshore, is an underwriter's underwriter. As former CEO of Lexington Insurance Co., the No. 1 U.S. surplus lines underwriter, Kelley knows this marketplace better than anyone else. Not only has Kelley mentored rising stars like Peter Eastwood, Lexington's current president and CEO, and Roxanne Mitchell, who's running the excess and surplus lines group at XL Insurance, but he has turned in some impressive numbers. Ironshore wrote $520.6 million in U.S. surplus lines business last year, according to A.M. Best, a 66 percent increase over the 2009 figure. In terms of percentage growth, no company in A.M. Best's ranking of the top 25 U.S. surplus lines writers came even close. Sure, Kelley has a ways to go to catch his alma mater, Lexington, which wrote $5.34 billion in U.S. surplus lines business in 2010. But watch out. Who do you think got Lexington there in the first place? Under his guidance, specialty insurer Ironshore has consistently extended its reach in the United States, Canada, Bermuda, United Kingdom and Ireland. That's why Kelley bears watching to see if he can keep Ironshore on its torrid growth pace.
Blurring the Line Between Working and Working Out - Office employees injured at their treadmill desks pose workers' comp risks.
John Bender - President Allied World Reinsurance When your corporate parent, Allied World Assurance Co., calls off a $2.94 billion merger with another reinsurance company, as it did with Transatlantic Holdings over the summer, it's time to pull out the monocle to keep an eye on Allied World's U.S. reinsurance operations head John Bender. Bender is president of Allied World Reinsurance, the U.S. reinsurance arm of the Swiss-based insurance holding company. After joining the company in the fall of 2007, Bender added a casualty presence to his U.S. growth strategy, targeting regional and middle-market clients that do not have easy access to the Bermuda marketplace. General casualty makes up 32 percent of Allied World Reinsurance's global product mix. In 2009, he added property reinsurance to focus on small- and medium-account regional carriers. He launched specialty marine, aviation and satellite reinsurance, as well as crop and hail coverage. With well-placed mentors like Allied World Assurance's director James Duffy, Bender is one to watch in 2012, particularly if Allied World reveals itself on the hunt for another target.
Lessons from Tiger - Can Tiger Woods' first victory in two years help his reputation and reduce the risk for possible endorsement deals?
Patrick Ryan - CEO Ryan Specialty Group Patrick G. Ryan, who turned Aon Corp. into the largest brokerage in the world, is no stranger to having "skin in the game." He re-entered the fray more than a year ago by investing $300 million of his own money into Ryan Specialty Group, a wholesale brokerage and underwriting company with which he hopes to make a big impact in 2012 and beyond by insuring complex, specialty risks around the world. The company is acquiring businesses and talent at a fervid pace. A recent acquisition includes Lloyd's specialty insurer Jubilee Group Holdings. Ryan Specialty is also taking aim at insuring developing or expanding industries, such as renewable energy, life science and construction. Ryan, an industry titan, is hitting his stride again. Keep an eye on where he goes in 2012.
Swiss Re CEO to Retire (Bloomberg) - Chief Executive Officer Stefan Lippe has decided to step down next year. A successor has not yet been named.
Lousiana Policyholders Leave $270 Million Unclaimed (The Times-Picayune) - The state imposed assessments after Hurricanes Katrina and Rita to help pay off bonds issued by the state-run insurer of last resort -- but policyholders have left $270 million unclaimed.
Editor's Choice Stories -
David Long - CEO Liberty Mutual Liberty Mutual CEO David Long, an Englishman, took over this year for Irishman Edmund G. "Ted" Kelly, at a time when Liberty Mutual's top and bottom lines look cheery. Still, the workers' compensation market will test Long's leadership skills. His insurance industry peers and Wall Streets analysts will be looking closely at his stewardship of one of the industry's most respected brands. The workers' comp line represents more than 50 percent of the company's commercial markets business and net written premiums have slipped. Liberty, like many companies, seems to be trying to pick up the difference in the plump employee benefits arena. With workers' comp comprising so much of its commercial business, some question whether the company is overexposed to the line, particularly when the market appears headed for a rough couple of years.
OSHA announces top workplace violations for FY 2011 - Once again the scaffolding and fall protection standards in construction were the most cited violations during OSHA inspections of U.S. work sites.
Washington: Vocational training amendments to take effect - The Department of Labor and Industries amended rules regarding vocational training for injured workers.
WCRI exec looks at medical, other comp costs in light of economic climate - Fee schedules are having a significant impact on medical prices in the workers' comp system, according to a new study. A review of 25 jurisdictions shows six of the eight states with the highest medical prices in the workers' comp system had no fee schedules.
Retailer's failure to rehire laborer leads to benefits - In Delaware, an employer's failure to rehire an injured worker is strong evidence that he is a displaced worker.
New Mexico: Comp agency may raise anesthesia payment rate - The Workers' Compensation Administration proposed changes to rules regarding payments for health care services.
Hospital scores reimbursement for entire bill of $4 million - In Arkansas, the total reimbursement allowed under the inpatient hospital fee schedule is determined by first performing the per diem method calculation and then the stop-loss method calculation. These figures are added for the total reimbursement allowed under the fee schedule, and the 150 percent multiplier is applied.
Out-of-town worker can't prove injury occurred in course of employment - In Michigan, an injury that occurs while in the pursuit of an activity the major purpose of which is social or recreational is not covered under workers' compensation.
House approves reform legislation for federal program - The U.S. House of Representatives has given the federal workers' comp system its first major boost in nearly 40 years, according to supporters of legislation that would reform the system.
California: Division changes data reporting rules - The Division of Workers' Compensation adopted rules regarding electronic data reporting.
Florida: Affiliated self-insurer may be redefined - The Division of Workers' Compensation proposed amendments to a rule regarding the definition of an affiliated self-insurer.
Ignoring coexisting conditions can have nightmarish ramifications, expert warns - Getting a handle on skyrocketing costs in the workers' comp system could be as simple as setting up a weight loss program for your employees. Excess weight is one of the factors that can turn a seemingly uncomplicated claim into a significant outlier case, according to a workers' comp insurance executive.
Reduction in overtime counts in benefits calculation - n Maryland, the term "wage-earning capacity" includes the capacity of a worker to earn overtime compensation.
Can a mechanic's dyslexia toll the statute of limitations for his claim? - How can dyslexia be measured in the workers' comp arena?
Workers' Comp Forum: December, 8, 2011 - In this issue: minimizing risks to lab employees; complying with Medicare requirements continues to be a challenge; seven-year lapse undermines relation to chronic pain; courts hope to change fee schedules; and more.
Representative falls short of proving compensability while making coffee - In Missouri, an injury arises out of and in the course of employment if the accident is the prevailing factor in causing the injury.
Worker not penalized for failure to use safety equipment - In Kentucky, even where a safety rule exists, if the employer fails to enforce the rule, a worker cannot be penalized for failing to follow it.
Washington: Department seeks to amend rules on safety violations - The Department of Labor and Industries proposed amendments to rules regarding the abatement of serious safety and health violations.
Products (Dec. 6, 2011) -
People on the Move: Specialists (Dec. 6, 2011) -
Reflecting on Conference Month - When it comes to conferences, November was a month to remember.
Editor's Choice Stories: December 6, 2011 -
R&I One: December 6, 2011 - In this issue: fatal monorail crash leads to safety changes at Disney World; new leak at Japan nuclear site; high winds tear through California; carbon emissions show biggest jump ever recorded; security breach a concern for nuclear plants; and more.
Report: Disney Monorail Crash Operator's Fault, Led to Changes - The fatal crash at Walt Disney World resort in 2009 led to sweeping safety changes.
People on the Move: Brokers (Dec. 6, 2011) -
People on the Move: Insurance (Dec. 6, 2011) -
Extreme Weather to Worsen With Climate Change (Forbes) - The economic impact of climate change could be vast as extreme weather continues.
Washington: Department eyes safety when handling hazardous drugs - The Department of Labor and Industries proposed new rules regarding the safe handling of hazardous drugs.
High Winds Tear Through California (Bloomberg Businessweek) - Causing plenty of damage to property and businesses, the suprising 100 mph winds left many people without power.
Carbon Emissions Show Biggest Jump Ever Recorded (New York Times) - Emissions rose 5.9 percent in 2010, the most recent numbers recorded, even though some expected numbers to decrease because of the recession.
Determine whether a set-aside is needed - An injured worker who is, or soon may become a Medicare beneficiary may need to have a Medicare set-aside created to assure Medicare's interests are taken into account. But not every workers' comp settlement requires a set-aside.
When Service Providers Leave Retailers Holding the Bag - Computer network extortionists and cybercriminals, delighted with strong holiday sales, stand ready to exploit the weak links in computer networks and in liability coverage.
Greenpeace Raid A Sign of Low Security at Nuclear Sites? (Wall Street Journal blog) - Concerns about security at nuclear facilities came to the forefront after Greenpeace activists broke into a French plant and even climbed to the top of the reactor.
Factory worker fails to assemble compensable claim for skin cancer - In Illinois, a claimant's doctor must testify within a reasonable degree of medical certainty that the claimant's chemical exposure at work caused her condition.
Nebraska: Court looks to change certain fee schedules - The Workers' Compensation Court proposed amendments to rules regarding the schedule of fees for medical, surgical, and hospital services and the first report of alleged occupational injury or illness.
D&O Coverage Tightens for Group of Chinese Firms Listed on U.S. Stock Exchanges - Reverse mergers enabled these companies to go public faster and cheaper than a traditional initial public stock offering. Many face suits alleging securities fraud.
Oklahoma: Two hearings coming up on court changes - The Workers' Compensation Court proposed changes to its court rules.
Florida: Rate hike approved pending amendments - Looks like Florida's workers' comp rates will be heading up next year. Insurance Commissioner Kevin McCarty technically disapproved NCCI's proposed 8.9 percent rate hike but said he would allow the increase if certain conditions were met.
Medicare set-asides: Attorney outlines changes, reviews challenges - Complying with the requirements of the Medicare Secondary Payer Act continues to be a challenge for many in the workers' comp system.
New Leak at Japan Nuclear Site (The Japan Times) - A new leak has erupted at the decimated Fukushima nuclear plant in Japan. After finding 12,000 gallons of contaminated water, officials fear that radiation has oozed into the Pacific Ocean.
New information seeks to minimize risks to lab employees - Fires, explosions, and equipment have caused a number of laboratory incidents over the last few years, leading to debilitating illnesses and even death. Now lab managers have new resources available to reduce or even eliminate the hazards.
7-year lapse undermines relation to chronic pain - In Ohio, a long lag time between an injury and the appearance of depression can undermine a showing that the depression was caused by an injured worker's chronic pain.
Bridging Liability - A federal lawsuit raises questions over whether Cornell University should manage the safety of a bridge it doesn't own.
Workers' Comp Forum: December 1, 2011 - In this issue: high rates of illness and injuries for healthcare and social assistance workers; restrictions for low back pain patients often ignore medical science; collecting data does not necessarily equal reduced costs; economy still making return-to-work challenging; carpel tunnel syndrome a conundrum in workers' comp; and more.
ERM Alive and Well - As I write this, I'm flying home from two intensely satisfying days at the inaugural RIMS Enterprise Risk Management Conference subtitled, "Where risk meets innovation." As the name would imply, I needed to be there.
Report reveals startling increase in painkiller overdose deaths - Deaths from overdoses of opioid pain relievers now exceed fatalities from heroin and cocaine combined, the government reports.
Consumed With Risk - At the 20th Annual National Workers' Compensation and Disability Conference® & Expo in Las Vegas last month, workers' comp experts were consumed by just how addicted workers have become to prescription painkillers.
Utilities - After the Japan meltdown, political pressures intensify in some countries to abandon nukes. Utilities face shutdown risks even as underwriting remains profitable for insurers.
Workers' Compensation - In this three part series we look at issues of a safer workplace, how employee benefits affect the employer and future trends and their effect on employers.
POINT: 2012: A Bang-Up Year for Risk Managers - In an election year, rates will continue to drop and the status quo is a given.
Divided Over the College Price Tag - Is tuition experiencing a bubble and threatening the pillars of higher education? Or is that talk premature, particularly with increased government aid to students.
Parking lot wipeout is a covered accident - In New York, even where some members of the public could encounter a dangerous condition, if the general public would not be exposed to that condition, the condition may still be deemed a special hazard.
California: Inpatient hospital fees now reflect Medicare system - The Division of Workers' Compensation updated medical fee schedule regulations.
Running Hot and Cold - After the Japan meltdown, political pressures intensify in some countries to abandon nukes. Utilities face shutdown risks even as underwriting remains profitable for insurers.
Brownfields Yield Green Dollars - Sites with environmental challenges pose big risks and sometimes bigger rewards.
Workers' Compensation (Part 3): Pushing the Market Forward - What will the next quarter century look like in workers' compensation?
Return-to-Work Challenges - As the economy recovers from recession, employers may still face challenges in their return-to-work programs.
Can a Colorado-based worker collect benefits in Ohio for an accident in Cincinnati? - Does traveling to a different state for work mean you can file a workers' comp claim there?
Stay Informed and Mind the Gap - Companies face Internet marketing-related legal claims that their commercial general liability insurance policies no longer cover.
Taking Control of Claims - Occupational health nurse used a variety of measures, including teamwork and collaboration, to upgrade claims management at Big Lots on-site clinics.
Just Enough Information - A Boeing 767 airliner carrying 231 passengers from Newark, N.J., made an emergency landing on its belly at the Warsaw, Poland, airport in November after an unprecedented landing gear failure.
COUNTERPOINT: 2012: Another Challenging Year for Risk Managers - From workplace risks to global finance, 2012 is going to be another tough year for risk managers.
Do You Know How Your Vendors Plan to Protect Your Data? - Data breaches can be costly, but vigorous vendor due diligence can alleviate many problems.
Penn State Sex Scandal Can Change How Institutions Manage Risk - The scandal may lead to new reporting laws and new ways to manage risks.
Decommissioning Nuke Plants - Nuclear energy offers an impressive but divisive power source.
Oregon: Notice of claim acceptance changes - The Workers' Compensation Division revised its Notice to Worker form, which provides an injured worker with notice of acceptance of a claim.
Fighting Cyber Risks - Risks to computer networks are rising and the losses incurred by companies are mounting. There are steps risk managers can take to defend themselves.
Voluntary retirement doesn't stop claim for ongoing disability benefits - In Delaware, a worker who voluntarily retires can still collect partial disability benefits stemming from a pre-retirement work-related injury if he does not intend to remove himself from the job market.
A Network Liability Puzzle - Are insurers facing a losing battle on the cyberinsurance front? In the last year, hackers scored some big victories, pulling off a number of high-profile attacks. Think Sony, Epsilon, Citibank, the Pentagon, Lockheed Martin and RSA just to name a few.
Jolted by Joe Biden, our Veep - Joe Biden has been messing with me. Yes, that Joe Biden, the hair-plugged vice president of those there United States. This is a Christmas story for all those insurance people who will fly home for the holidays, or who fly anywhere, ever.
12 Executives to Watch in 2012 - We picked this list of executives to watch from among U.S. commercial insurance and reinsurance companies. Brokerage, risk management, third-party administrator, pharmacy benefit management and insurance trade group executives were not considered. These 12 execs were chosen mainly because we know they face crucial challenges and decisions in 2012 and their moves and strategies likely will be closely watched by others in the commercial insurance industry. See the list here.
Claims -
Learning from History - I devoted most of my columns in 2011 to finding useful lessons inside workers' comp's hundredth year. Hopefully, I'll be more clear-headed for it. Names of visionaries, past and present, emerged as I read about contributions by individuals, professions and governments to reduce injury risks.
Workers' Comp Terrain Hardens for Ski Resorts - With safety, prevention and lower liabilities in mind, ski resorts develop a style of their own as insurance carriers report an increase in claims severity from terrain parks even as general liability claims against ski resorts decline.
Starr and a consortium of carriers are providing up to $50 million in capacity with 'Deal Secure,' a new Representations and Warranties policy - It is common knowledge that mergers and acquisition deals can be riddled with pitfalls for both buyer and seller. However, Thomson Reuters reported earlier this year that merger & acquisition activity in the U.S. alone in 2010 had grown 22.9 percent from the previous year, and several projections for 2011 indicate continued M & A growth as the economy recovers.
The Power of Change and the Change of Power - In the new world where everyone has options, success rests in your ability to adapt to change and attract the brightest employees, the best policyholders and the most reliable carriers.
Products: Nov. 29, 2011 -
Editor's Choice: November 29, 2011 -
People on the Move: Brokers Nov. 29, 2011 -
R&I One®: November 29, 2011 - IN THIS ISSUE: Merck to pay $950 million in Vioxx case; climate talks complicate as Kyoto agreement set to expire; narcotic pain relievers kill more than heroin and cocaine combined; whistle-blower claims hit professional lines market; excess tax sharing angst alive and kicking; and more.
People on the Move: Insurance. Nov. 29, 2011 -
People on the Move: Specialists. Nov. 29, 2011 -
Health care, social assistance report high rates of injuries and illnesses - The rate of injuries and illnesses declined slightly last year. But Labor Secretary Hilda L. Solis says there are still areas of concern following a report from the Bureau of Labor Statistics.
Comp prevents birth defects suit for worker's son - In Texas, the exclusivity provision bars a suit claiming that injuries to a worker's child were caused by the worker's exposure to toxic substances in the workplace.
GM to Offer Free Loaner Cars to Volt Owners During Safety Probe (Chicago Tribune) - With multiple batteries catching fire after crash tests, GM will offer loaner cars to Volt owners, however the company still insists the high mpg car is safe.
Degenerative condition scuttles worker's coverage for knee surgery - In Mississippi, a treating physician's opinion that a worker can return to regular duty with no impairment rating can undermine benefits.
Oklahoma Gets String of Mild Earthquakes (New York Times) - With nine small earthquakes in less than a week, residents and city risk managers are startled.
Colorado: Division seeks to amend chronic pain guidelines - The Division of Workers' Compensation proposed amendments to the complex regional pain syndrome/reflex sympathetic dystrophy and chronic pain disorder medical treatment guidelines.
States struggle over carpal tunnel claims in workers' comp system - Carpel tunnel syndrome is something of a conundrum for the workers' comp community. While some maintain it rarely -- if ever -- is caused by work activities, it's been identified as one of the fastest growing occupational illnesses in the last decade.
California: Self-insured insurance regs change - The Office of Self-Insurance Plans amended regulations governing self-insured employers and their workers' compensation coverage.
Merck Pleads Guilty, Agrees to Pay $950 Million in Vioxx Case (Forbes) - Accused of bad promotion of the drug and not issuing misstatements about its cardiovascular safety, Merck agreed to a plea deal.
EU Demand for Road Map to Climate Treaty Complicates Talks (Bloomberg Businessweek) - With the Kyoto Protocol expiring next year, new talks attempt to deal with climate change and global emissions.
Supreme Court to Decide Whether Lawsuits Require Harm (Yahoo! News) - Must a person show specific harm in order to sue a company for wrongdoing? In First American Financial Corp. v. Edwards, the Supreme Court will decide.
Ohio companies granted dollars to reduce injuries, illnesses - Ten Ohio businesses have received state money for safety interventions. The $217,000 is funding everything from a robot to a gnocchi machine.
NY regulators seek input on proposed carpal tunnel guidelines - The New York Workers' Compensation Board is reviewing proposed medical treatment guidelines for carpel tunnel syndrome.
Worker's goose call sideline doesn't block benefits - In Louisiana, an employer asserting that a worker committed fraud by working while collecting benefits must show the worker was earning money and was capable of performing work.
Volt Jolt: Is Chevy Fire a Sign of Higher Electric Car Risk? - When two Chevy Volts caught fire after a routine crash tests damaged their batteries, federal regulators and environmentalists took notice. Risk managers should as well.
Passing a Painful Threshold - Narcotic pain relievers killed more people in the United States than heroin and cocaine combined, a new study finds. Drug overdose deaths in 2008 were almost as high as motor vehicle deaths.
Whistles Rattling Professional Lines - A slew of whistle-blower claims are heading right at the professional lines insurance market.
People on the Move: Insurance -
Products: Nov. 22, 2011 -
People on the Move: Specialists -
People on the Move: Brokers -
R&I One: Nov. 22, 2011 - In this issue: brokers show hefty profit growth after purchasing employee benefits firms; food allergy awareness gains steam; deadly storms tear through South; states can seek punitive damages from Gulf oil spill; the risks of studying abroad; and more.
Mobile app negates need for Internet during emergencies - Employers looking to implement emergency preparedness plans may want to check out a new program in San Francisco.
Workers' Health Premiums Rose 63 Percent in Seven Years (Bloomberg Businessweek) - U.S. workers' health insurance premiums rose 63 percent from 2003 to 2010 as employers shifted more of the burden of rising medical costs to individuals and families, a study showed.
Worker's hire by authorized employee doesn't block temporary benefits - In North Carolina, a worker may be considered an employee of an employer even if the individual who hired the worker was not authorized to do so.
Deadly Storms Tear Through South (New York Times) - A severe weather front that ripped through the Southeast, killing at least six people and injuring plenty of others, marked the beginning of a fall storm season that's likely to bring more trouble to a region that has barely recovered from an unusually deadly string of spring tornadoes.
Reimbursement for truck used only for work not included in AWW - In Kansas, the monetary value of the use of a company truck is not included in a worker's average weekly wage if it was only used for work and he only received reimbursement for work-related expenses for the truck.
A Doctor's Perspective - Effective relationships between physicians and insurers are key to producing better disability outcomes for claimants and employers.
Restrictions for low back pain patients often ignore medical science, expert says - Restricting activities of injured workers with low back pain not only hampers return-to-work efforts, it may actually fly in the face of academic and scientific evidence, according to a medical/legal workers' comp expert.
Return to work focus of updated book from AMA - Physicians trying to determine whether, when, and how to return injured workers to their places of employment are the focus of an updated publication from the American Medical Association.
New York: Fee schedule rule about to expire - The Workers' Compensation Board adopted an emergency rule regarding pharmacy and durable medical equipment fee schedules, the process for payment of pharmacy bills, and the requirements for designated pharmacies.
Benefits in Numbers - Insurance brokers' bottom lines begin to show hefty profit growth from purchases of employee benefits firms.
Michigan reform legislation heads to Senate despite party-line split - What's being called the first significant reform legislation to the workers' comp system in a quarter of a century is halfway through the Michigan Legislature. The House passed H.B. 5002 on a vote of 59-49, largely along party lines.
The FCPA and Insurance: Am I Covered or Should I Be? - Are costs associated with Foreign Corrupt Practices Act investigations covered by insurance?
Lack of money, knowledge leading to shortage of health, safety professionals - Looking for a new career? Try the health and safety field. A new national survey says the demand for occupational safety and health professionals is outpacing the supply.
Louisiana, Alabama Can Seek Punitive Oil Spill Damages (New Orleans CityBusiness) - A federal judge has ruled that Alabama and Louisiana can pursue punitive damages against BP and other companies involved in the 2010 Deepwater Horizon disaster that killed 11 people and spewed millions of gallons of oil into the Gulf of Mexico.
U.S. Sued for $25 Billion Over AIG Takeover (Reuters) - Claiming that the government takeover of AIG was unconstitutional, former Chief Executive Maurice R. "Hank" Greenberg has launched a legal assault.
Conflicts in testimony stomp out custodian's claim for ant bites - In Louisiana, a worker's testimony alone may be sufficient to prove the occurrence of an unwitnessed incident if the testimony is corroborated by the circumstances after the alleged incident.
Editor's Choice Stories: Nov. 22, 2011 -
Cancer Fallout from Japan Nuclear Disaster May be Hard to Detect (The Globe and Mail) - The ordinary rate of cancer is so high, and our understanding of the effects of radiation exposure is so limited, that any increase in cases from the Fukushima nuclear plant disaster may be undetectable, say experts.
Workers' Comp Forum: Nov. 17, 2011 - In this issue: agencies issue annual precautions for workplaces; fewer claims for companies inspected by state OSHA; higher rates in third quarter; targeting high cost claimants; winning benefits for neck injury despite past job as bull rider; and more;
Materials explain rights, responsibilities, and protection strategies - Employers looking for clarification on their options following a federal OSHA inspection may want to visit the agency's website. OSHA has issued new and revised information to give employers and employees better insight into their rights and responsibilities, as well as maintaining a safe workplace.
Safety in Numbers - Demand for occupational safety and health jobs is predicted to far outstrip supply, according to a recent study. The findings suggest a need for more collaboration between employers and educational groups.
Past recreational horseback riding reveals personal mission - In Tennessee, evidence showing that a worker was injured while in the course of a personal mission will block benefits for the worker.
Worker fails to connect injuries to coworker altercation - In Alaska, a preexisting back condition and a lack of complaints or evidence of home treatment will support a conclusion that a worker's pain was not caused by a work-related incident.
Texas: Deadline for comments on income benefits fast approaching - The Division of Workers' Compensation proposed amendments to rules relating to the procedures insurance carriers and injured workers must follow when resolving an overpayment or underpayment of income benefits.
Florida lawmakers to consider cap on physician-dispensed drugs - Fresh on the heels of a call for the state Legislature to target costs associated with physician-dispensed repackaged drugs, two lawmakers have proposed a cap.
Collecting data does not necessarily equal reduced costs, expert says - Many workers' comp-related companies collect data these days. But few get useful value from it, according to the head of an Internet-based workers' comp medical analytics company.
Turkey's Deadly Aftershock Explained - Seismologists try to make sense of the 7.1 magnitude aftershock that devastated part of Turkey.
Fighting for Control - Is it best for the owner or for the contractor to control the insurance program?
Medication plans offer a wider path to improved care, lower costs in workers' compensation - It is common knowledge today that managing prescription medication costs in the workers' compensation market includes making sure any medications involved in an injured worker's claim are actually related to the injury.
Learning Moments in Workers' Comp - What seem like small, chance encounters can change careers.
People on the Move: Insurance -
People on the Move: Specialists -
The Right to Maximize Property Insurance Coverage - Frequently, two or more coverages with specific, differing limits or sublimits will overlap and apply to a single property loss. Insurance companies seek to cap their obligations by confining the loss to the coverage with the lowest limit. Policyholders, however, have the right to order their insurance claim to maximize their recovery.
People on the Move: Brokers -
Products: Nov. 15, 2011 -
Serving Notice to Restaurants - Laws requiring eateries to display food allergy awareness posters and provide allergy training for servers may be gaining steam.
R&I One: Nov. 15, 2011 - In this issue:
NCCI data sheds more light on narcotics trends in comp system - Narcotics use among injured workers is concentrated to a small percentage of claimants. High initial narcotic use is indicative of future use. Those are two of the more startling findings in the latest research from NCCI.
Agencies issue annual precautions for workplaces - While specific strains for the 2011-12 flu season have not been identified, the Centers for Disease Control and Prevention says there are precautions that should be taken.
Maximum medical improvement does not foreclose benefits - In Colorado, a worker who did not challenge a determination that she reached MMI of her work-related injury in an open case may be able to obtain TTD benefits when she experienced a worsening of her original injury.
Don't Treat Employees Like 'The Help' - Your company culture and that of Jackson, Miss., in 1960 (depicted in the film 'The Help') may be closer than you want to believe.
Washington: Study points to fewer claims for companies inspected by state OSHA - A study of claims data in Washington shows companies that were inspected by the state's OSHA program had a decline in compensable claims rates. Those that were issued citations had even more dramatic decreases.
Failure to notify employer, doctors of work-related fall topples benefits - In Mississippi, a worker is not entitled to benefits if the employer testifies that it never received notice of an injury and the worker initially failed to inform her medical providers of her work-related injury.
Study: Many Hair Straighteners Have More Formaldehyde Than Claimed (Los Angeles Times) - Salons and distributors beware -- hair products may have health risks.
U.S. Sending Extra Security to London Olympics (The Guardian) - The U.S. plans to send 500 FBI agents to protect athletes and others, as event organizers admit underestimating the amount of security needed.
Pro Skier Dies in Utah Avalanche (Grind TV) - In a situation that highlights the risks for ski resorts, professional skiier Jamie Pierre, 38, died in an avalanche.
Study shows big differences in medical care for minor vs. serious injuries - "Large claims have a substantially different mix of medical services from that for small claims," concludes a new NCCI study. "Knowing the service composition of different size claims could be useful in forecasting cost trends for different claim size groups."
Checking on dogs, jumping fence not in course of employment - In Arizona, an injury arising out of personal comfort must still be connected to the employment.
Never Ending Asbestos Quagmire (The National Law Journal) - Expert: To control out-of-control litigation, policymakers should mandate greater claims transparency from the asbestos bankruptcy trusts.
All Grown Up With Places to Go - From Hiltons to Hyatts, from Chicago to Las Vegas, the National Workers' Compensation and Disability Conference® & Expo thrives through markets hard and soft.
No Roundhouses Thrown at This Roundtable - Thirteen industry veterans cover co-morbidities and narcotics in a spirited but civil session, and point to the importance of educating doctors and workers.
Peering Through a Microscope - A variety of measures, from creating grass roots provider networks to focusing on return to work, takes center stage.
Lessons from the Big Leagues - Professional sports has plenty to teach risk managers about workers' comp and disability management.
Benefits increased for newly promoted manager - In Nevada, if a worker changed jobs when she was injured and no 12-week or four-week history of earnings is available for the new job, a finding of her primary job at the time of the accident is needed to calculate her average monthly wage.
No Reason to Exclude Vets - Dealing with post-traumatic stress syndrome correctly can help employers keep talented veterans.
Survey: Pressure on workers' comp pushes rates higher in 3rd quarter - While pricing overall in the property/casualty market remained generally unchanged in the third quarter, workers' comp saw modest gains, according to a survey of agents and brokers.
Can an out-of-state worker bring a claim in her home state? - After a work-related injury, which state will allow a workers comp claim?
California: Employer advocates look toward full-on comp reform next year - California Gov. Jerry Brown is getting kudos from pro-business factions for his signing and vetoing of workers' comp legislation. But they warn of escalating costs unless broad-based reforms are forthcoming.
Technician proves compensability of altercation with coworker - In New York, altercations between coworkers generally are considered compensable, regardless of fault, if the injury arises out of a clash over work-related differences.
Workers' Comp Forum: Nov. 10, 2011 - In this issue: sobering report on workers' comp system; preventing and mitigating chronic pain; California state fund cutting 25 percent of workforce; cell phone distraction accident leads to benefits; social media helps claims handling; and more.
Injuries from repossession of vehicle at work parking lot not compensable - In Florida, injuries are not compensable if the risk giving rise to the injury is personal in nature.
Are Medical Foods the Answer? - Honey and cinnamon have been found to reduce symptoms of arthritis, but more studies are needed.
California Fights Narcotics Abuse in Workers' Comp - Early intervention holds the key to preventing the abuse of and addiction to prescription medications to treat workers' comp injuries.
Pain Points Hold Back Workers' Comp Future - On the 100th anniversary of workers' comp, Joseph Paduda takes on physician dispensing, opioid use, and transparency of third-party administrators.
Indiana: Bureau proposes new rates for upcoming year - The Compensation Rating Bureau proposed an increase of 2.3 percent to the loss costs, 2.6 percent in the overall premium level, and 2.6 percent in the overall rate level that will go into effect on Jan. 1, 2012.
Tough Market: The Best Time To Improve Workers Compensation Programs - Focusing on Claims Management and Safety is Key to Lowering Total Cost of Risk
Show Daily Coverage - Read what the experts are saying on Day Three of the 20th Annual National Workers' Compensation and Disability Conference® & Expo in Las Vegas. Click here and here for earlier editions.
Crop Losses Mounting - Widespread storm damage bedevils growers and underscores food risks.
Editor's Choice Stories: November 08, 2011 -
Despite Record Catastrophe Losses, a Hard Market Remains Elusive - Sustained large underwriting losses, a material decline in surplus and capacity, a tight reinsurance market, and renewed pricing discipline will harden the insurance market. But all of those have yet to occur with enough severity and at the same time.
People on the Move: Insurance -
Products: Nov. 8, 2011 -
People on the Move: Specialists -
R&I One: Nov. 8, 2011 - In this issue: widespread storm damage bedevils growers; slight firming of rates in 3Q; MF Global drew regulator attention back in March; legal fight over Deepwater Horizon spill heating up; AIG pays government back $972 billion; an oil pipeline in the Midwest?; and more.
New York: Temporary insurance rule in effect - The Insurance Department adopted an emergency rule.
Arrest for assault, drugs not enough to end benefits - In Louisiana, an employer has a duty to fully investigate a worker's medical status before terminating benefits.
Foreman's aggressive actions block claim for injuries sustained in assault - In Illinois, a worker injured in an altercation at work is not entitled to benefits if he was the aggressor in the altercation.
Idaho: Commission proposes security for compensation rule - The Industrial Commission proposed rules regarding security for compensation for self-insured employers.
Program targets high-cost claimants lost in 'maze' of comp system - Claims organizations looking for new approaches to some of their long-term cases may want to check out a new service. Maze-Masters takes a nonmedical approach to helping injured workers get their lives back on track.
Police chief wins benefits for neck injury despite past job as bull rider - In Missouri, where the work nexus is clear, the worker is not required to show that he would have been equally exposed to the risk in everyday life.
Oregon: Division increases temporary total disability benefits - The Workers' Compensation Division announced that on or after Oct. 1, temporary total disability benefits paid to all workers injured before July 1, 1973, have increased.
Privacy Takes Center Stage - Insurers need to watch out for emerging privacy risks and tailor different privacy practices to different nations.
OSHA seeks best practices to prevent occupational hearing loss - With approximately 30 million U.S. workers exposed to hazardous noise each year and up to 25,000 suffering preventable hearing loss, OSHA is looking for input from experts.
Technology Increases Effectiveness for Self-administered Organizations - In today's environment, four major cost containment pain points challenge organizations that self-administer claims-- maintaining high quality data, effective claims administration, managing rising medical costs, and litigation management.
Find out how to prevent, mitigate chronic pain - The rise of OxyContin to the top of the list for service year 2009 underscores the extent of what many say is the most pressing problem in the workers' comp space: how to effectively help injured workers suffering with chronic pain.
Training, frequency of robberies undermine posttraumatic claim - In Pennsylvania, when a worker alleges a psychic injury, he must prove that he was exposed to abnormal working conditions and that his psychological problems are not a subjective reaction to normal working conditions.
Physical therapy causes new tear in rotator cuff - In Arkansas, a reinjury that is a continuation of the original compensable injury is compensable.
MF Global's Repo Transactions Drew Regulator Attention in March (Bloomberg Businessweek) - U.S. regulators questioned MF Global Inc.'s use of so-called repo-to-maturity transactions as early as March, concerns that eventually led them to demand the brokerage come up with more capital.
AIG Makes $972 Billion TARP Repayment (Reuters) - The Treasury Department received a $972 million repayment from AIG, funded by proceeds from the sale of AIG'S American Life Insurance Co. subsidiary last November, the Treasury said.
Gallup poll: Unhealthy lifestyles costing businesses $153 billion annually - A new survey makes a case for wellness programs among U.S. businesses. The report from Gallup translates self-reported comorbidities into actual dollars and cents.
Executive Summit speakers weigh in on comp challenges, solutions - A dozen high-powered workers' comp executives will discuss and debate key topics during the 2nd annual National Workers' Compensation Conference Executive Summit.
Nurse secures comp for accident caused by cell phone distraction - In Virginia, a worker injured while trying to answer a call on a cell phone can receive compensation if the injury can be traced to the employment as a contributing cause.
Study: Fracking Likely Cause of Earthquakes in England (The Globe and Mail) - An independent study has found that the controversial natural gas drilling practice likely triggered two minor quakes in Britain in April and May.
California state fund to cut staff by 25 percent - Calling it part of a move to improve operational efficiency, the California State Compensation Insurance Fund announced it will cut 25 percent of its staff in the second quarter of 2012.
Legal Fight Over Deepwater Horizon Fault Heating Up (Wall Street Journal) - The Deepwater Horizon oil spill ended in the summer of 2010, but the legal fight over who will pay for the cleanup is only now heating up.
Apportionment not appropriate for hazardous noise exposure - In Kentucky, the employer with whom an employee was last injuriously exposed to hazardous noise is exclusively liable for benefits.
Workplace Violence: Reduce the Risk - Homicide is the fourth-leading cause of fatal occupational injury in the United States, according to the Bureau of Labor Statistics. What steps can be taken to help reduce the risk?
A.M. Best: Another sobering report on WC system, but glimmer of hope - The latest assessment of the workers' comp line paints yet another mostly negative picture. However, the report from A.M. Best indicates there is some reason to be hopeful -- at least, for the long term.
Washington: Medical aid rules seek comments - The Department of Labor and Industries announced a preproposal statement of inquiry regarding rules that are in conflict with the health technology clinical committee's coverage determinations.
The Workforce is Aging. Are We Ready? - While an aging workforce brings specific challenges, it can also make a workforce more experienced and less prone to turnover.
A little social media goes a long way in claims handling, attorney advises - Attorney Tricia G. Bellich has a number of tales where social media has come into play and completely changed the scenario, which she will share during her session. She plans to provide attendees with the tools to obtain similar results.
Lighter Headwinds Buffet Brokers in Third Quarter - Executives said they see slight firming of rates in some lines and in some states, and their brokerages deliver small gains in organic growth.
Obama Will Decide Whether to Approve Pipeline (USA Today) - President Obama says he will make the final call on a 1,700-mile oil pipeline through the Midwest, a decision that puts him between environmentalists and constituents who are worried about jobs and energy development.
Workers Comp Forum: Nov. 3, 2011 - In this issue: workers comp rates trending upward; simple accommodations can reduce high cost of depression; OSHA targets construction accidents; shot by co-worker but not in course of employment; and more.
Attorney incorporates social media into claims handling - Claims managers, adjusters, and others involved in the workers' comp system may find unexpected help through social media -- even if they are not especially comfortable with it yet.
NIOSH report touts smoking cessation programs to improve workers' health - Employers looking to cut their workers' comp and overall health care costs may want to consider smoking cessation programs. A new study indicates nearly one-fifth of U.S. workers are smokers.
Target Markets Survey Shines Light on Programs Coverage - Rate adequacy and program profitability are two of the most important criteria for determining whether carriers will accept a program of niche risks.
POINT: Workers' Comp: 100 Years of Efficient Protection - For millions of workers, the employer-funded insurance program has offered them a basic level of security.
Testing Free Speech Bounds - Employees have been blowing off steam about their jobs, probably since the beginning of time. In days gone by, people could go to the local watering hole, or gather around the water cooler to air their grievances. But these days, employees are often turning to Facebook or Twitter to complain.
Batch Clauses and the Fine Print of Products Liability - Two attorneys examine the finer print of the intersection between policy deductibles and the number of claims or occurrences, and the impact on insurance coverage.
Disability - The 20th Annual National Workers' Compensation and Disability Conference® & Expo takes place Nov. 9 - 11 in Las Vegas.
Renewing an Alternative - Tennessee upgrades its captive law, providing new choices for insureds looking for a domicile in the Southeast. The changes in the Volunteer State are for real, insiders said.
COUNTERPOINT: Workers' Comp: 100 Years of a Fraying Quilt - The system has left us with a creaky patchwork of different laws and regulations, all of them rife with abuse.
Excess Tax Sharing Angst Alive, Kicking - New federal law says only home state gets premium payment but compact squabbles pose new "friction cost" broker risk.
The Show Must Go On - The 20th Annual National Workers' Compensation and Disability Conference® & Expo takes place Nov. 9 - 11 in Las Vegas.
Patent Litigation and Advertising Injury Coverage - Landmark cases making the distinction between patent infringement and advertising injury.
New Injury Prevention Award Debuts - "The PreVent" National Employee Injury Prevention Award recognizes an organization that develops and implements programs to prevent workplace injuries, and provides a safer work environment for a company's greatest asset: its people.
Tech Overhaul for Public Sector - In the cash-strapped world of public-sector workers' comp claims processing and return-to-work procedures, adding technology can provide plenty of return on investment.
How Technology Can Upgrade a Return-to-Work Program - Analytics, early intervention and outsourcing helped Jacksonville, Fla., turn around its workers' comp and disability management program.
Musings of an Ink-Stained Wretch - Write about what you know. So, I'm going to write about the business of writing about business. Creative people, of which I am almost but not quite one, must also be salespeople. You could be the greatest writer in the known world and remain unknown unless you can find someone to buy what you're selling.
People on the Move: Specialists -
Tests Could Stress Carriers - Recently, I questioned the origin of the word bankruptcy. It was the "bank" portion of the word that triggered my curiosity. I learned that the word is derived from the Latin bancus, meaning bench, and ruptus, meaning broken. Centuries ago, the first bankers set up shop on bench-like tables in open air markets. When they failed their customers or if their banks were found to be unsound in any way, their table was symbolically broken and the insolvent banker was cast off. The bank was broken.
Workers' Compensation (Part 2): How Grand the Bargain? - After 100 years of workers' comp, workers are better off because of the safety net. The real question is how well off are employers?
R&I One : Nov. 1, 2011 - In this issue: Wildfire litigation still burns in California; Salmon virus may be linked to fish farms; sugar prices make Halloween sour for candy makers; survey: shift in fraudster habits; Japan plant will take 30 years to close; and more
People on the Move: Insurance -
Editor's Choice Stories: November 1, 2011 -
Farms Could be Cause of Pacific Northwest Salmon Virus - With reports of a salmon virus, the aquaculture industry in the Northwest braces itself for the worst.
The Risk and Liability of Studying Abroad - Traveling abroad can be dangerous, but the experience in terms of broadening a college student's education and fostering an interest in the world outside the United States is well worth the risk.
Trust the Worker and the Worker Will Teach You - Honda Manufacturing of Indiana takes home the first PreVent Award in recognition of its stellar safety and injury-prevention efforts.
Construction - Insurers value the track record of European-based highway builders and operators, and are welcoming this business.
Driving Care Even if it's not at the Bedside - A former nurse turns into a disability manager and fights to make sure that care is right and prices are fair -- all leading to an effective loss-control program.
Recalling the Crisis of 1991 - The late 1980s and early 1990s saw an upheaval in workers' compensation with losses rising rapidly. In some states the private sector markets for workers' compensation insurance came close to collapsing. Legislative reforms and redirections in employer and claims payer practices ensued. Even today, the forces unleashed in those years are still making their impact known in our markets.
A Changing of the Guard - Just as enterprise risk management may be perceived as being on its last legs, in comes risk and performance management. I think of risk and performance management, or RPM, as the correct way in which we should consider risk as it relates to mission accomplishment. I think it is the most natural next step in risk management.
Opening the Door to Risk Reduction - When an executive throws down the injury-reduction gauntlet, the JELD-WEN risk management team rises to the challenge.
Culture Change in Finnegan's Wake - The town of Islip, N.Y., on Long Island's south shore, hires a workers' comp manager who cracks down on fraud and abuse. For his efforts, the town receives a coveted national workers' compensation award.
Honoring Worker Safety and Injury Prevention - November means it's the time of the year that we recognize some of the best workers' compensation and disability management programs in place at U.S. companies and government workplaces.
How Grand the Bargain? - After 100 years of workers' comp, workers are better off because of the safety net. The real question is how well off are employers?
Insuring Public-Private Construction - Insurers value the track record of European-based highway builders and operators, and are welcoming this business.
Going to Battle Against Work Comp Claims - The Army reforms its workers' compensation program and makes a dent in claims frequency and the number of days lost to injury over the past five years.
Tech Overhaul for Public Sector - In the cash-strapped world of public-sector workers' comp claims processing and return-to-work procedures, adding technology can provide plenty of return on investment.
Professional Liability on the Line - Will it become easier for underwriters to turn a profit in the professional lines market?
Reworking the Terms of the Contract - A major risk in the construction industry today is understaffing and underbidding, as contractors are tempted to do more with less and underbid to win the work.
Ex-Security Chief at Mine Convicted of Impeding Investigation into Blast that Killed 29 (Washington Post) - A former mine security chief was found guilty of lying and destroying thousands of documents following an explosion that killed 29 men in 2010.
Understand psychosocial issues to mitigate chronic pain claims - Workers' comp participants often roll their eyes at the mention of psychosocial issues affecting a claim. "Here's yet one more person who's claiming they are depressed about their job, their pain, whatever," said Mark Walls, assistant vice president for St. Louis-based Safety National. "Because of this there's always been this tendency to ignore these issues, to resist them."
Gunshot wound from coworker assault not within course of employment - In Maryland, in the case of an injury inflicted by a third party, the injured worker must show that the willful act was directed at him in the course of his employment.
Halloween Horror as Sugar Prices Sour for Candy Makers - Smaller manufacturers suddenly get a taste for price hedging as sugar prices climb.
Permanent partial disability percentage, 520-week limitations entitled to same exclusions - In Oklahoma, the sum of all permanent partial disability awards is limited to a total of 100 percent or 520 weeks for any individual, excluding awards against the multiple injury trust funds or for amputations and surgeries.
OSHA guidances take aim at deadliest hazards in construction industry - "An unprotected trench is an early grave," according to OSHA. The federal agency has issued several new documents to educate employers on how to prevent trenching accidents.
Experts: 30 Years to Close Japan Nuclear Plant (Associated Press) - A Japanese government panel says it will take decades to close the Fukushima Dai-ichi plant although they say the site is relatively stable.
Clinicians, employers examine psychosocial issues - Achieving better outcomes for injured workers and employers may be done by identifying and addressing psychosocial issues in a claim.
Wildfire Litigation Still Burning - Litigation over the Southern California wildfires of 2007 continues with cellular telephone companies dragged into the legal limelight.
Positive drug screen for marijuana fails to wipe out operator's benefits - In Louisiana, in order for an intoxication defense to apply, a positive drug test must be verified or confirmed by gas chromatography, gas chromatography-mass spectroscopy, or another comparably reliable analytical method.
Miracle Tornado Survivor Finally Granted Workers Comp (Associated Press) - Social workers Mark Lindquist nearly gave his life trying to save developmentally disabled adults from the Joplin tornado. When he was originally denied workers compensation, it caused an uproar.
Study: Simple accommodations may reduce depression-related costs - Depression and anxiety cost U.S. employers an estimated $44 billion annually. Accommodating workers who are suffering from a depressive episode or are returning to work after such an illness may help reduce some of those costs.
BP Gets OK to Drill New, Deeper Well in Gulf (Houston Chronicle) - A year and a half after the lethal blowout of the Macondo well, the federal government has given BP approval to dig a deeper well in the Gulf of Mexico.
U.S. Weighs Waiting on AIG Share Sale (Wall Street Journal) - Unfavorable market conditions could cause the Treasury Department to put off its second sale of shares in AIG.
NCCI: Latest rate filings largely reflective of frequency, economy - Workers' comp rates are headed up in at least eight states next year, with at least 11 others considering increases. While each state's workers' comp system has its unique characteristics, several themes are emerging throughout the country.
Effective communication is key to mitigating workplace violence - Nearly 2 million American workers report being victims of workplace violence each year. Homicide is the fourth-leading cause of fatal occupational injuries in the United States and the leading cause of death for women in the workplace.
Halloween Treat - The Scary Tale of Tricks and Haunted Hollow-Perceptions.
Survey: Shift in Fraudster Habits - Year-over-year incidence of fraud is down 13 percentage points, but Kroll reports a shift from fraud involving physical assets and information to fraud involving internal financial documents and corruption.
Victims Compensation Fund opens for business - A workers' comp-style program established to compensate workers injured following the Sept. 11 terrorist attacks is now up and running.
Recovery from employer, third party in suit bars claim for benefits - In South Carolina, if an injured worker simultaneously pursues a third-party action and a workers' compensation claim, he must give the employer notice of the suit.
Workers' Comp Forum Update: Oct. 27, 2011 -
Mesothelioma suit allowed to continue in court - In Missouri, the workers' compensation exclusivity provision does not apply to occupational disease claims.
Revised hazard alert warns of formaldehyde dangers - A couple of hair smoothing and straightening products have caught the attention of several government agencies. Recent findings from their investigations have prompted OSHA to issue a revised hazard alert to hair salon owners about potential formaldehyde exposure.
Subrogee's claim saved by 6-year deadline for liability created by statute - In Ohio, a claim brought by a statutory subrogee to recover its subrogation interest is subject to a six-year statute of limitations.
Is a Worker's Suit Blocked by the Exclusive Remedy Provision? - When a construction worker gets hurt while working with a subcontractor, how does that affect workers' comp?
Economy, frequency cited as drivers of Oregon rate hike - Most Oregon employers will see their first increase in workers' comp rates in more than 20 years. Regulators say higher medical costs and a flattening of frequency are to blame.
An Unlevel Playing Field - Should competitive state funds be the dominant workers' compensation carrier in a state?
Investigator fails to show confrontation caused compensable anxiety - In New York, a claim for work-related stress will not succeed without showing that the stress experienced by the worker was greater than that which other similarly situated workers experience in the normal work environment.
With its new Virtual Card, InsurCard closes the electronic payment loop - When InsurCard transformed the workers compensation indemnity payment process by introducing the first-ever prepaid Visa® debit card for injured workers in 2010, its innovative approach broke new ground.
Editor's Choice Stories: October 25, 2011 -
R&I One: Oct. 25, 2011 - In this issue: Football death highlights risks of high school contact sports; storms hurt bottom lines at Chubb and Travelers; CEO: deep staff cuts to California's State Compensation Insurance Fund; EPA to set standards for fracking waste water; dust storms rock the South; Honda wins PreVent award for worker safety; and more.
High School Football Death Highlights Sports Risk - Deaths from head trauma or heat exhaustion are big risks in high school football.
Chubb and Travelers Take a Hit to Net Income in Wake of Hurricane, Storms - Net written premium volumes increase in commercial and personal lines segments as rates harden slightly.
Housing, utilities, car allowance considered remuneration - In California, determining whether fuel, lodging, and meals are remuneration requires an analysis of whether they were provided in exchange for services, whether they are an advantage to the worker, and whether they are provided to the worker only while he is performing employment duties.
New York: Comments on recording hearings being accepted - The Workers' Compensation Board proposed amendments to rules regarding hearings before the board.
Officer wins benefits for injuries sustained while confronting shoplifter - In Florida, a worker's injuries are not the result of an intentional exposure to a risk that was certain to cause injury when the worker previously engaged in the behavior that resulted in the injury without incident.
Learn strategies to reduce medical costs - With so many tools available to help companies reduce their workers' comp-related medical costs, why aren't more of them seeing substantial savings? It's a question Denise Gillen-Algire intends to answer.
IAIABC, ACOEM target state workers' comp agencies with opioid message - "The growing issue of prescription opioid abuse in the United States . . . has the potential to seriously impact the health and well being of our national workforce," says a letter sent to workers' comp agencies in all U.S. jurisdictions. It talks of an epidemic of prescription opioid abuse and urges recipients to become engaged in efforts to address the problem.
Michigan reform legislation seeks to incorporate advancements - Calling the state's Workers' Comp Act "severely out of date," a Republican state lawmaker has introduced legislation he says would be a "win-win for Michigan businesses and workers." However, not all parties agree.
Tennessee: Registration fee on the table at hearing - The Division of Business Services proposed to amend a rule on workers' compensation exemption registration.
New guidance focuses on needless nail gun injuries - Some 37,000 nail gun injuries end up as emergency room visits each year and can even result in death. But many of these incidents can be prevented, according to a pair of federal agencies.
EPA to Set Standards on Fracking Waste Water (Wall Street Journal) - The Environmental Protection Agency said it would develop standards for disposing of waste water in natural-gas drilling. There are widespread concerns that hydraulic fracturing may contaminate drinking water.
Study: No Cellphone-Cancer Link (New York Times) - A large study found no link between cellphone usage and brain tumors, but left open the possibility of a link with long-term, heavy usage.
Chubb Third-Quarter Profit Plunges 48 Percent on Catastrophe Claims (Bloomberg Business Week) - Quarterly profit fell 48 percent at Chubb on costs from catastrophes including Hurricane Irene. Third-quarter net income declined to $298 million, or $1.04 a share, from $572 million, or $1.80, a year earlier.
Study: No Cellphone-Cancer Link - A large study found no link between cellphone use and brain cancer, but left the door open that heavy, long-term use could increase risk.
Chubb Third-Quarter Profit Plunges 48 Percent on Catastrophe Claims - Quarterly profit fell 48 percent at Chubb on costs from catastrophes including Hurricane Irene. Third-quarter net income declined to $298 million, or $1.04 a share, from $572 million, or $1.80, a year earlier.
Dust Storms Bedevil the South (Wall Street Journal) - Dust storms have increased in ferocity and frequency over the past few years.
Infectious Salmon Could Hurt Aquaculture Industry (New York Times) - A lethal and contagious virus in salmon in the Pacific Northwest could hurt the aquaculture industry.
Infectious Salmon Could Crush Aquaculture Industry - The aquaculture industry braces itself after the detection of a contagious and lethal virus in Pacific Northwest salmon.
Washington: Six premium rate hearings scheduled - The Department of Labor and Industries proposed a 2.5 percent average increase to workers' compensation premium rates.
Surveillance video, exaggeration of symptoms fails to demonstrate fraud - In Louisiana, video surveillance of a worker performing activities he claimed he was unable to does not trigger a forfeiture of benefits because the worker's doctor was aware he performed the activities.
South Carolina: Commission eyeballs reg change for fee schedule - The Workers' Compensation Commission proposed to amend a regulation regarding the physician's fee schedule.
Study: On-site rehab helps reduce lost work days in health care field - An internal health program that provides early access to physical medicine and rehabilitation provided by athletic trainers may help injured employees return to their jobs sooner. That was the finding suggested by a new study.
Oregon: Medical fees subject of proposed amendments, meeting - The Workers' Compensation Division proposed amendments to rules regarding medical fee and payment, medical services, managed care organizations, and claim closure and reconsideration.
Is a Worker Entitled to Benefits for Injury While Entering Vehicle? - An employee slips getting into a work-issued vehicle. Is he covered for workers' comp even though he wasn't transporting himself to or from work at the time?
OSHA extends comment period for recordkeeping requirements - If you have opinions on proposed changes to OSHA's recordkeeping and reporting requirements for work-related injuries and illnesses, you still have time to express them. OSHA announced it is allowing comments through Oct. 28.
Guarding the Health and Safety of Hospital Patients - One goal of a public-private partnership of healthcare leaders and state and federal officials is to reduce preventable hospital-acquired conditions by 40 percent by year-end 2013. That would save about 60,000 lives and mean 1.8 million fewer injuries to patients.
Insurer's contractual right shows it is not creditor - In Idaho, a medical insurer is a subrogee and is entitled to its right of subrogation against compensation the worker received from a third party.
Deep Staff Cuts Loom - California's public workers' comp insurer readjusting after thorough analysis of operations and the state's changing workforce.
Workers' Comp Forum Update: Oct. 20, 2011 -
Abuse, Dependence and Diversion of Prescription Drugs - Pain medications, including narcotic opioids, account for over 60% of the drugs prescribed to treat injured workers. Is your PBM identifying and responding to drug-related risks?
PBBI offers P&C carriers a five-step approach to gaining a competitive edge - When Hurricane Katrina devastated the Gulf Coast of the United States six years ago, it left more than $81 billion in total estimated property damage. Katrina also represents one of the top five deadliest hurricanes in U.S. history, with more than 1,800 deaths caused by the disaster and subsequent flooding.
Products: Oct. 18, 2011 -
People on the Move: Specialists -
Editor's Choice Stories: October 18, 2011 -
World Series Throws Risk Managers a Curve - The Fall Classic has its own unique set of risks. In the 2008 series, rain paused a game in the sixth inning. In 1989, an earthquake caused a 10-day delay.
People on the Move: Insurance -
People on the Move: Brokers -
Consider the expert physician model for better comp outcomes - There's been a sea of change in the workers' comp system. Instead of focusing on discount medical providers, many experts are looking at improved outcomes -- both to help the injured worker recover faster and to save money for the employer.
Panelists delve deep into expert physician model - Lowering medical costs on high-risk workers' comp claims may be achievable by using the expert physician model.
Supreme Court to hear maximum compensation rate dispute - A case that could affect the maximum rate of workers' comp payments under the Longshore Act is heading to the U.S. Supreme Court. The High Court agreed to decide a case involving when compensation should be awarded.
Shared control of worker, benefit from his work reveal joint employment - In Massachusetts, separate entities can constitute joint employers if they share control of a worker and the benefits of his work.
Texas: Division seeks to outline payment of income benefits - The Division of Workers' Compensation informally proposed rules to establish a procedure by which an insurance carrier can recoup an overpayment of income benefits from future payments or pay an underpayment of income benefits.
Moody's: Latest frequency figures 'credit negative for P&C insurers' - The National Council on Compensation Insurance's most recent report on claims frequency does not bode well for the workers' comp system.
Worker's half-hearted job search may not preclude temporary total disability - In North Carolina, a worker who substantially complies with vocational rehabilitation services and does not significantly interfere with efforts to assist her in returning to suitable employment may be entitled to continued benefits.
Coordinator can't prove causation showing permanent total disability - In Kansas, a worker has the burden of showing a causal connection between her chemical sensitivity and her employment.
Balancing 'Quants' with 'Qualts' - I like quants, but they often narrow their focus to only numbers, when more insight is needed from other methods. There has been much written since the financial crisis of 2008 about the over reliance on all the risk models that were supposed to have revealed how much risk firms were taking and to somehow enable them to manage their risk appetite more successfully. That mindset about risk modeling and measurement has taken much heat because so many lost so much: investments, pensions, jobs, houses--even lives.
A Dysfunctional Model - PwC has issued a report saying that the shares of nine in 10 listed reinsurers are undervalued. It would hardly have been less surprising had PwC concluded that the Pope is Catholic. PwC said its conclusions point to a lack of confidence in reinsurers' business models, despite their financial strength.
POINT: Rates are Adequate - Carriers are right to take a go-slow approach to underwriting the risk from hydraulic fracturing.
Interview with Lloyd's CEO Richard Ward - MONTE CARLO, Monaco -- At the Reinsurance Rendez-Vous gathering in Monte Carlo in September, Risk & Insurance writer Graham Buck caught up with Richard Ward, the chief executive at Lloyd's of London to discuss rates and catastrophes in the following Q&A.
Reflections of a Risk Leader - Maurice "Hank" Greenberg combined business intelligence, adaptability and strong leadership to build AIG's savvy risk management culture.
Bringing Broadband to Rural America - In most parts of the United States, Internet access is so common, it's taken for granted. But in the most rural parts of the country, it is a very different story.
Workers' Compensation (Part 1): The Triumph and Failure of Worker Safety - One of the most dangerous jobs in America, undeground coal mining, has become much safer. But workers exposed to asbestos decades ago are still dying from cancer.
Raising the Risk - Building information modeling technology eases the interaction between the owner, the design team and the general contractor, and that can raise the risk of higher professional liability exposures.
Energy - U.S. report faults BP and its subcontractors for the Deepwater Horizon disaster, despite the companies' well-documented safety and prevention procedures.
Revelations of a Risk Executive - Excerpts of a recent interview with Maurice "Hank" Greenberg, chairman and CEO of Starr Companies and former chairman and CEO of AIG.
As the Risk Management World Turns - Some of the industry's risk management consultants have been in the business for three or four generations, but whether their children will succeed them is anybody's guess.
Flagging the Shortcomings - Risk models are growing in sophistication but still have major limitations, as delegates at this year's Monte Carlo Reinsurance Rendez-Vous were reminded.
20 Years of Claims Management - Future claims management success demands redefining flexibility and responsiveness across a multiplicity of platforms.
The Rise of Agnosticism - Future claims management success demands redefining flexibility and responsiveness across a multiplicity of platforms.
Perils and Promises of the Cloud Providers - Cloud computing raises a host of liability and insurance issues, even as regulation and privacy rulings continue to shift.
Time to Raise Rates - Gas companies aren't paying nearly enough to cover the risks of extraction from shale deposits.
Report Regarding The Causes Of The April 20, 2010 Macondo Well Blowout - Blame for the Deepwater Horizon disaster is ultimately pinned on BP, according to the Report Regarding the Causes of the April 20, 2010 Macondo Well Blowout by the Bureau of Ocean Energy Management, Regulation and Enforcement.Click here to read the report.
School of Hard Knocks - When you're family, it often makes it tougher as prior generations set higher expectations.
Not Buying It - Not a day goes by without some kind of data security breach, according to the Open Security Foundation.
A Searing Indictment - U.S. report faults BP and its subcontractors for the Deepwater Horizon disaster, despite the companies' well-documented safety and prevention procedures.
Teller-Tale Signs of Greater Exposures - Plaintiffs have a legitimate claim, if a bank is in noncompliance with the Bank Protection Act with regard to their ATMs.
The "Key" to Safety and the Robbery Tool Kit - Teller machines are best used during the day, and banks should inspect their machines regularly.
Assessing OSHA's Effectiveness - In the presence of labor, business and Congressional leaders, President Richard Nixon signed into law the Occupational Safety and Health Act on Dec. 30, 1970.
Macondo Disaster Leads to Pricing and Capacity Issues - Underwriters lend new scrutiny to deep-water drilling liability and pollution coverage.
Breach Coverage Proves Tricky - If there is a lesson to be learned from Zurich's litigation over data breach claims submitted by Sony earlier this year it is this: If you think you have coverage for data breaches under your commercial general liability policy, think again.
Focus on the Known Risks - "There are 'known knowns.' There are things we know that we know. There are known unknowns. That is to say there are things that we now know we don't know. But there are also unknown unknowns. There are things we do not know we don't know." --Donald Rumsfeld, former United States Secretary of Defense, June 6, 2002
Obama Pulls Plug on Part of Healthcare Overhaul (Associated Press) - A new long-term care insurance plan has been dropped because it's financially unfixable. It would have been a voluntary insurance plan for working adults regardless of age or health.
Starr Specialty Lines & Starr Technical Risks: Long-term success fueled by expertise and innovation - The past couple of years have been extremely challenging for the Property & Casualty insurance market, with earthquakes, floods, hurricanes, tornadoes, oil spills and more causing havoc around the globe.
Runner Died During Chicago Marathon (Washington Post) - A firefighter running the Chicago Marathon died during the race. He, and the 53 others taken to the hospital this year, show that there are plenty of risks associated with these events.
One of Longest Insider Trading Sentences Handed Down (Washington Post) - Hedge fund billionaire Raj Rajaratnam received an 11-year sentence for insider trading, one of the longest sentences in history.
Lingering Effects of Listeria Cantaloupe Outbreak (Associated Press) - After killing 23 and making 116 sick, the listeria outbreak in cantaloupe has wreaked havoc on California farmers.
Workers Comp' Insurance Fund to Lay Off Up To 1,800 (Los Angeles Times) - The California State Compensation Insurance Fund plans to lay off 25 percent of its workforce -- between 1,500 and 1,800 employees.
Workers' Comp Forum Update: Oct. 13, 2011 -
Oklahoma: Comp court changes benefits rates - The Workers' Compensation Court announced a change in the compensation rate.
Contract for hire not formed over phone sinks jurisdiction - In Kentucky, a contract for hire is not made until the last act necessary for its formation is complete, and the contract is formed at the place where that act is performed.
Worker can't connect assault, robbery to employment - In Virginia, a worker is not entitled to benefits for injuries occurring during an assault while he was on duty if there is no causal connection between the assault and his employment.
Washington: Proposed rate hike is smaller than anticipated - Calling it a "small step toward rebuilding the state's workers' comp reserves," the Washington State Department of Labor & Industries proposed its lowest workers' comp rate increase in five years.
Was a Valid Claim Timely Enough? - After a court finds that a worker got sick because of workplace conditions, one question remains: Was the claim brought in a timely fashion.
California: Study points to continued increases in costs despite reforms - Yet another research report indicates reforms adopted in California in the early 2000s are no longer effective in holding down medical costs. The latest study was issued by the California Workers' Compensation Institute.
Board should not have considered director's management of funds - In Delaware, the board cannot consider evidence that is highly prejudicial and of little probative value in determining whether a worker was in the course and scope of his employment when he was injured.
Florida: Division changes proposed rules for reimbursement manuals - The Division of Workers' Compensation revised proposed rules regarding the workers' compensation health care provider reimbursement manual and the reimbursement manual for ambulatory surgical care centers.
Leading the Surplus Lines Leaders - Experts: Developing talent and leadership is crucial to success in today's business environment.
Will Self-Insured Firms Drop Healthcare Coverage? - Businesses may cease to offer health insurance altogether as costs keep rising.
You've Come a Long Way, Baby! - The changing marketplace is hard on relationships between carriers and agencies.
R&I One : Oct. 11, 2011 - In this issue: Are players covered during the NBA lockout?; Company where workers lost legs had no workers' comp; Apple may be less risky without Steve Jobs; Survey: 35 percent of drivers text; Higher health premiums on the way; and more.
Editor's Choice Stories: October 11, 2011 -
A Grim Reminder - After two serious injuries, an Oklahoma grain company refuses to pay a $750 fine for not having workers' compensation insurance.
Landscaper wins benefits after altercation with supervisor - In New York, an employer is not liable for an injury that was caused by an injured worker's "willful intention" to cause injury to another. An injury resulting from an impulsive act, however, may be compensable.
Employers need not get smoked by medical marijuana issues, risk manager advises - Turning a blind eye to the growing issue of medical marijuana is a poor strategy, advises a risk control executive. Whether doing business in a state with a law on the books or not, there are steps employers can take to protect themselves, their businesses, and their employees.
Risk control executive offers nonlegal anti-pot advice - Whether your company is in a state with legalized medical marijuana or not, you should become educated on the topic to avoid legal trouble, says Bill Nagel.
Association liable for insolvent insurer's obligation - In Connecticut, the insurance guarantee association may be liable for an insolvent last insurer's obligations to pay benefits to an injured worker when there is no overlapping coverage.
Oregon: Division offers guidance on employer-paid reimbursement claims - The Workers' Compensation Division issued a bulletin telling insurers how to apply employer-paid medical reimbursement claim costs for individual claims for unit statistical reporting purposes.
The Insurance Puzzle of the NBA Lockout - With no end in sight to the NBA lockout, coverage questions loom.
Discontinuation of permanent disability OK based on retirement presumption - In Minnesota, the retirement presumption, which states that permanent total disability ceases to exist at age 67 because a worker is presumed to be retired, applies unless the worker rebuts the presumption or proves a knowing and intentional waiver by the employer.
Doctor's opinion that degeneration not related to work curbs benefits - In Nebraska, a doctor's opinion that a worker experienced degeneration and arthritis that was not work-related can lead to a denial of compensation.
DOL, IRS deal takes misclassification issues 'to a new level' - Employers that improperly label workers as independent contractors or nonemployees may face fines from federal as well as state agencies. That's one of the upshots of a new agreement between the Department of Labor and the Internal Revenue Service.
NIOSH: Musculoskeletal disorder prevention takes hands-on approach - Practical, hands-on demonstrations may be key to reducing musculoskeletal injuries in the workplace. That's the thinking behind a new training publication from the National Institute on Occupational Safety and Health.
Driver Survey Shows Heavy Cellphone Use (Washington Post) - During the last month, 35 percent of drivers admit they've read or sent a text message or email while on the road; 67 percent said they talked on the phone while driving.
Disasters Wallop Industry Earnings in First Half - Net income plunges as insured losses surge due to tornadoes, floods and hurricanes.
New Aon Hewitt Survey Projects Higher Employee Health Premiums (New York Times) - As companies struggle to control costs in a tough economy, the 2012 annual employee premiums are expected to jump on average 10.6 percent, to $2,306. That figure has doubled since 2005, when workers at larger companies paid on average $1,192 annually per employee and paid about 17 percent of the company's costs, according to Aon Hewitt data.
Legislative intent topples accountant's argument over retroactive benefits - In California, cost-of-living increases for total permanent disability benefits are calculated prospectively commencing on the Jan. 1 following the date on which the injured worker first receives total permanent disability benefits.
Vocational reports bulk up laborer's entitlement to TTD benefits - In Connecticut, a worker's refusal to undergo a second surgery after an unsuccessful first surgery should not be considered in determining his entitlement to TTD benefits.
Lack of witnesses to incident shows notice of injury wasn't timely - In Pennsylvania, notice of an injury must be given to the employer within 120 days after the occurrence of the injury or no compensation is allowed, unless the employer has knowledge of the occurrence of the injury.
Oregon: State agency addresses confined spaces in construction - The Oregon Occupational Safety and Health Division proposed to adopt a new rule on confined spaces to include the construction industry.
One-on-One with Lloyd's of London Chief Executive Richard Ward - MONTE CARLO, Monaco -- At the Reinsurance Rendez-Vous gathering in Monte Carlo in September, Risk & Insurance writer Graham Buck talked at length with Richard Ward, the CEO of Lloyd's of London.
Workers' Comp Forum Update: Oct. 6, 2011 -
NCCI: Physician dispensing on the rise in most states - Prescription medication costs continue to increase in the workers' comp system, according to the latest research from the National Council on Compensation Insurance. The Florida-based organization's latest assessment of the situation points to utilization as a major cost driver.
Editor's Choice Stories: October 06, 2011 -
Vermont: Numerous workers' comp forms might change - The Department of Labor proposed changes to forms.
Oklahoma rate decrease approved; commissioner seeks more reforms - Oklahoma employers will likely see their workers' comp rates drop in January. Insurance Commissioner John Doak announced approval of NCCI's proposed 1.7 percent reduction in the lost costs ratio.
Florida: Division clarifies loss data reporting - The Division of Workers' Compensation proposed to amend a rule clarifying that former self-insurers must report loss data for the final period of authorization only once.
Workers' Comp Forum Update: Oct. 06, 2011 -
Riskonnect offers a game-changing business collaboration platform to transform, improve the risk management discipline - Riskonnect Inc. has brought a solution for the "discoverability" issue to the world of risk management, but that's only one part of how Chatter, a new, award-winning collaborative capability is helping Riskonnect and its clients succeed at the business of risk management.
Appellate court outlines rebuttable parameters - California's 1st District Court of Appeal recently upheld a permanently injured worker's right to rebut scheduled disability benefits.
New York: New travel reimbursement rate issued - The Workers' Compensation Board revised the mileage rate for reimbursement to claimants for travel by automobile to 55.5 cents per mile.
Escrow account doesn't save worker's settlement from reduction - In Indiana, an injured worker who settles with a third party for substantially less than the damages value of his claim without the consent of his employer or the workers' compensation carrier can reduce his lien by attorney's fees and costs.
Don't ignore ICD-10 conversation, IAIABC cautions - Workers' comp stakeholders who ignore the upcoming change to ICD-10 diagnosis and institutional procedure codes may do so at their peril. Continuing with the ICD-9 codes could have "severe consequences for workers' compensation," according to the International Association of Industrial Accident Boards and Commissions.
Vermont Shooting Underscores Risk of Delivering Bad News - A co-op grocery store worker shooting his supervisor over a bad performance review was a reminder of the dangers sometimes surrounding employee evaluations.
Connecticut legislation to clean piping called first of its kind in the nation - An explosion that killed six workers at a Connecticut construction site was "entirely preventable," according to the head of the U.S. Chemical Safety Board. In response to the tragedy, Connecticut has adopted legislation banning a common practice to clean piping.
Oregon: Premium rates hearing scheduled - The Department of Consumer and Business Services proposed a rule adopting the premium assessment rates that will be in effect from Jan. 1, 2012, through Dec. 31, 2012.
Detox program, morphine pump reasonable and necessary for chronic pain - In Kentucky, an injured worker's desire to not undergo the implantation of a morphine pump will not prevent a finding that the surgery is reasonable and necessary.
Latest Ogilvie decision causes new uncertainties in permanent disability - An appeals court's recent decision in a controversial California case has called into question the method for determining benefits to permanently disabled workers. It also raises concerns about a payment system for permanent disabilities that is fair to injured workers, their employers, and the workers' comp system as a whole.
Ditching the Legacy - XL Insurance made the transformation to a single web-based platform for managing claims after going through mergers and acquisitions, which left the company with as many as five major legacy claims systems.
Shifting the Risk Paradigm - If all the risks to your business were known, easily ignored, or cheaply transferred, would you feel better? Unfortunately, such a world does not exist.
NAPSLO REPORT: A Different Dawn - The National Association of Professional Surplus Lines Offices Ltd. has a full slate as the organization introduces its new executive director, and meets for the first time following passage of reinsurance reform.
Arbitrating Work Disputes - The use of arbitration is increasingly under attack by the Obama administration, but it remains an attractive tool for employers.
Obesity and Healthcare - People suffering from obesity are undertreated.
A Captive Geared for Profit - Subaru of America Inc. skillfully uses its captive to cover property/casualty risks, and benefits risks as well, while turning a tidy profit with a little help from the sale of warranties.
Educated Consent is Key to Patient Safety - Even if patients give consent for procedures, there are still plenty of risks, as some don't know expected outcomes, which could lead to medical malpractice claims.
Best Practices in Patient Communication Reduce Liability - When performed properly, a communication time-out enables medical providers to identify and minimize potential patient risk factors.
Insurer Offers Benefits to Help with Informed Consent Risks -
First Bitter, Now Poor - I find, with great bitterness, that I have lived my life by the wrong rules. My parents taught me their belief in the importance of hard work and self-discipline: how wrong they were. Without always achieving those goals, I have tried to make them a hallmark of my time on the planet. The reward?
Business as Usual Off the Table - Insurers have held on to their legacy core systems for just about as long as possible. Many of the core systems that handle policy administration, underwriting and claims have been around since the 1990s, and in some cases the early part of that decade.
Merits of a Risk Committee - In the wake of corporate scandals, and financial crises Part I and now Part II, it is no surprise that we are seeing corporations increase their focus on risks that threaten their long-term health and wealth. It is also no surprise that we are seeing re-examinations of what really constitutes a board's fiduciary obligation. We have been reassessing what should be a board's overall responsibility and how a board should be structured to best achieve its objectives.
Back Injuries Become Epidemic - In the past 100 years, expansion of the concept of work injury or disease comes in surges that extend over roughly 15 to 20 years, mobilizing advocates among medicine, law and safety. A spotlight shines upon a troublesome health condition. New safety and medical interventions promise to ameliorate the problem.
Progressive Investigators March Forth - This new wave of claims management and return-to-work specialists are compassionate investigators, seeking to fix systems and processes, and not to assign blame.
Lessons from Irene - Hurricane Irene stormed up the East Coast in late August, but we were ready for her. She did not take us by surprise, except perhaps for those of us living in Vermont.
Thomas on Transparency - Third-party administrators will continue to thrive, but sharing revenue with vendors without telling clients remains a sore spot.
Claims Management (Part 3) - In the United States, companies rely on networks of providers who treat work-related injuries under contracts that control the cost of medical claims, but abroad you simply pay the bill.
Answer to problems of an aging workforce: Maximize productivity, minimize risk - The workforce is aging. But that undisputable fact need not be synonymous with increased workers' comp costs, according to a medical expert.
Apportionment profoundly impacting comp system, says medical expert - Determining causation in the workers' comp system can be challenging, especially when the injured worker is older and/or has preexisting conditions.
Bold Test of Employer Liability - The owner of a Utah-based electrical contracting company walks right into a sexual-harassment lawsuit.
OSHA launches Web page, issues directive to address violence - Nearly 2 million American workers report having been victims of workplace violence each year. With a reported 506 incidents in 2010, homicides ranked as the fourth leading cause of fatal occupational injuries in the U.S. and the top cause of death for women in the workplace.
Late payments, denial of treatment entitle worker to attorney's fees - In Louisiana, an employer can avoid penalties for late payments or a lapse in paying benefits if it can show the claim for payment of indemnity benefits was reasonably controverted or that the nonpayment resulted from conditions over which it had no control.
Specialist's trip to Africa, unwillingness to pursue employment block benefits - In North Carolina, a worker's failure to show she made a reasonable effort to seek employment will undermine a claim for disability benefits.
Reinsurance Stagnant in Middle East and North Africa - Premiums drop in the region, putting underwriting pressure on reinsurers.
Post-claim layoff nets $665k for director - In Texas, an employee who is targeted for a layoff because he filed a workers' comp claim states a claim of retaliation.
Safety week hopes to reduce distractions while driving - Nearly half a million people were injured in motor vehicle crashes involving distracted drivers in 2009. An estimated one in four crashes -- 1.6 million annually -- involves a driver talking or texting on a cell phone.
Maryland: Commission amends procedure for settlement - The Workers' Compensation Commission proposed to amend regulations regarding the procedure for agreements for a final compromise and settlement.
Statement made weeks before termination moves claim forward - In Kansas, negative statements by human resources staff about an employee's profitability after they learn of her need for surgery may support an ADA discrimination claim.
Clock doesn't run on claim until doctor reveals source of pain - In Delaware, the limitations period for filing a workers' compensation claim begins when the worker should have been aware of the nature, seriousness, and compensability of her injury.
Maine: New rule would wipe out existing fee, reimbursement requirements - The Workers' Compensation Board proposed a rule that repeals and replaces the existing rule on medical fees, reimbursement level, and reporting requirements.
Washington: Hearings to focus on cranes in construction work - The Department of Labor and Industries proposed changes to rules addressing the requirements that employers must follow with regard to inspection, maintenance, and operation of cranes used in the construction industry.
Can a technician prove employee status based on degree of supervisory control? - Is a cable television and Internet technician an employee or independent contractor?
Psychosocial issues are key to insurer's new modeling tool - Employee motivation and comorbidities are key factors in identifying potentially high-cost claims, according to Liberty Mutual. The workers' comp insurance giant says it is incorporating data on those issues to ramp up its predictive modeling capability.
Manager's workplace injury does not equal automatic ADA protection - Evidence of an injury is not the same as evidence of a disability. To be disabled under the ADA of 1990, a plaintiff must show he has a physical or mental impairment that substantially limits one or more major life activities.
Workers' Comp Forum Update: Sept. 29, 2011 -
California proposal would point out arbitration agreement - Terms of workers' comp policies would be more transparent, according to supporters of legislation before Gov. Jerry Brown. It would require insurance carriers to ensure employers are on board with policy language for resolving disputes.
Alaska: Amendments would tweak medical benefits rules - The Department of Labor and Workforce Development and the Workers' Compensation Board proposed amendments to rules dealing with compensation, medical benefits, and proceedings before the board.
Musculoskeletal Disorders: Chart Topper - These disorders remain the leading cause of workplace injury and illness in the United States. What steps can companies take to prevent this costly disability?
There's Insurance for Everything (SmartMoney) - It's already been quite a year. So far we've endured wars, riots, nuclear meltdowns, crazy weather, a bipolar stock market and a failed apocalypse. Is it any wonder that one of the few bright lights in this asthmatic economy is insurance.
General contractor's provision of coverage blocks suit - In Texas, a contractor that provides workers' compensation insurance to employees of a subcontractor is entitled to the exclusive remedy defense in a suit brought by an injured worker of the subcontractor.
People on the Move: Specialists -
Washington: Retrospective rating among the proposed changes - The Department of Labor and Industries issued a preproposal statement of inquiry on changes to the retrospective rating for workers' compensation insurance.
Texas: Providers required to use electronic medical bills - The Division of Workers' Compensation reminded designated doctors that all health care providers, including those who participate in certified workers' compensation health care networks, are subject to rules regarding electronic medical bill processing.
Products: Sept. 27, 2011 -
ASSE seeks to mesh occupational safety, health with wellness programs - Combining health protection and health promotion activities could lead to significant savings on workers' comp costs, according to a recent study. With that idea in mind, the American Society of Safety Engineers has announced a new group focused on improving employee safety and health.
Kentucky employers to see another decline - Most employers in Kentucky will likely see their workers' comp rates drop in October. The approved 7.5 percent decrease represents the sixth straight reduction in loss costs.
Workers can't rebut scheduled rating by factoring in education, illiteracy - In California, an injured worker can challenge the presumptive scheduled percentage of permanent disability by showing a factual error in the calculation, the omission of medical complications aggravating the disability, or the employee is not amenable to rehabilitation.
Medical opinions support permanent total disability award for manager - In Tennessee, a worker may be entitled to permanent total disability benefits if his doctors initially opine that he was partially disabled but later conclude that he was totally disabled.
Predictive Analytics in Workers' Comp Arrives - The system enables insurers and employers to identify and react quickly to high-risk claims.
The Dangers of Going Rogue - When a rogue trader loses billions, risk management is called into question.
Insurers Assessing Air Race Tragedy - The Reno air race losses could shatter the event's insurance limits and possibly result in its cancellation.
People on the Move: Insurance -
R&I One : Sept. 27, 2011 -
Get the skinny on whether to approve medical foods - Workers' comp payers may be unknowingly footing the bill for medical foods. Claims adjusters may see a medical food expense but not know if it's appropriate for a particular claimant.
Virginia: Commission seeks comments before hearing - The State Corporation Commission received proposed advisory loss costs and revised assigned risk rates and rating values from the National Council on Compensation Insurance Inc.
Editor's Choice Stories: September 27, 2011 -
Examples of medical foods - A 2010 study by the California Workers' Compensation Institute brought to light the issue and possible extent of medical foods on that state's workers' comp system. Since then, their use has spread to other areas of the country.
People on the Move: Brokers -
Food flavorings focus of NIOSH exposure recommendations - The food flavorings diacetyl and 2,3-pentanedione have been associated with certain lung ailments, some of them life-threatening. The National Institute for Occupational Safety and Health has issued draft recommendations to reduce employee exposures.
Insurance Can Play a Greater Role in Climate Change Adaptation - With temperatures projected to rise 4 degrees centigrade by 2050, experts no longer talk of reversing climate change, but of adjusting to it.
A Matter of Opinion - RMS' new Version 11.0 catastrophe model has been the talk of the modeling world this year. And what a year to release a new catastrophe model ... what with catastrophe losses in the first six months being the most expensive in the history of the industry. What better time, then, to offer two different opinions about the RMS 11 model.
U.S. Hurricane Modeling - Can We Afford to Ignore the Science? - In spite of intense review, acceptance and adoption of the RMS 11.0 model has been progressing steadily.
U.S. Ill-Equipped to Deal with Japan-like Nuclear Meltdown (Newark Star-Ledger) - There's plenty of disagreement over whether U.S. nuclear power plants are ready to face disasters and run responsibly. The industry says they are, while critics maintain some plants are just like the ones in Japan that melted down and they are poorly monitored to boot.
Workers' Comp Forum Update: Sept. 22, 2011 -
Healthcare Reform Drives Demand for Risk Management and Patient Safety Innovation - When the Patient Protection and Affordable Care Act (PPACA) became the law of the land in March 2010, it caused quite a stir to say the least. After all, many consider it the most sweeping change to U.S. healthcare since the advent of Medicare in 1966. Among other things, healthcare reform is expected to significantly increase demand for services. Due to provisions within the law, it is also likely to cause movement away from reimbursement for volume-based care to value-based care. In other words, the PPACA's intention is to have providers deliver quality healthcare in the most cost effective manner possible.
Hockey Team Plane Crash Highlights Sports Travel Risks - With all 44 members of a Russian professional hockey team killed in a recent plane crash, risk management in sports has come to the forefront.
People on the Move: Insurance -
R&I One : Sept. 20, 2011 -
This Week's R&I One® edition - In case you missed it, this week's R&I One®, features: Sports travel risk highlighted by Russian hockey team plane crash; Drillers try to understand coverage for natural gas fracking; Reinsurers at Monte Carlo gathering talked about higher rates; BP's poor decisions blamed for oil spill; Rogue trader exposes risk management failures; and more.
People on the Move: Specialists -
Editor's Choice Stories: September 20, 2011 -
Products: Sept. 20, 2011 -
Liability, Claims Issues Surfacing - Carriers, gas drillers and explorers now trying to determine where coverage in natural gas hydrofracking cases may lie.
NIOSH seeks updated approach to carcinogens in the workplace - Occupational exposures to hazards associated with cancer are the target of a new effort by the government. The National Institute for Occupational Safety and Health is seeking public input as it revises its approach to classifying carcinogens and establishing recommended exposure limits.
Study suggests significant cost saving through holistic medical management - Employers trying to reduce their medical and pharmacy costs may want to take a close look at the overall health of their employees. A new study suggests companies may be able to control some of the hidden costs of absenteeism and presenteeism.
Worker wedged into lunch booth proves claim - In Indiana, in determining whether an injury is compensable, the issue is not whether the injury resulted from an everyday activity but whether the injury was unexpected.
California: Hearing scheduled on public disability accommodations - The Division of Workers' Compensation proposed regulations to implement the provisions of the Americans with Disabilities Act and state laws governing the accommodations process for members of the public participating in the division's activities, services, and programs.
Aggravation of assistant's preexisting condition leads to benefits - In Tennessee, a medical impairment rating registry physician can give an opinion as to the cause of a worker's injury.
More health risks equal presenteeism - People with at least five health risks are more likely to have higher incidence of presenteeism, according to a study by the Integrated Benefits Institute.
Washington: Department seeks to align vocational rehab with statute - The Department of Labor and Industries proposed amendments to a rule regarding vocational rehabilitation services to injured workers to be consistent with a new statute.
Website offers help to develop employee, business protection plans - While some companies may have dodged a bullet with a recent hurricane in the Northeast, Irene can serve as a reminder to be prepared. Various government agencies have developed tools to help businesses be ready for emergencies.
Companies with same owner, different purposes are not 'alter egos' - In Mississippi, two companies owned by the same owner are not "alter egos" of each other if they have distinct business purposes, separate insurance, different names, and different areas of expertise.
Oklahoma lawmakers studying workers' comp opt-out idea - An interim study approved by the Oklahoma State Senate could be the first step to allowing employers to bypass the state's workers' comp system.
Wolf Horejsh to take over reins at IAIABC - Leveraging technology while preserving institutional knowledge is vital to the future of the workers' comp system, according to the incoming head of the International Association of Industrial Accident Boards and Commissions. Jennifer Wolf Horejsh says it's one of several areas she'll focus on in the coming years.
Pirates Hijack a Fuel Tanker off West Africa (New York Times) - While hijackings in the region still pale in comparison with the piracy scourge off Somalia, on the other side of the continent, the attacks have alarmed shippers and insurers. Last month, Lloyd's Market Association, a group of insurers in London, added the coastal waters off Benin and part of Nigeria to a high-risk category that also includes Somalia's coast.
Reality Checks at Monte Carlo - Reinsurers talk of higher rates, while brokers argue prices likely to move sideways or soften.
Make the Right Debt Your Friend - The warning alarms sounded loudly in Washington. We watched the exhausting political posturing for two torturous weeks. In the end, we saw the U.S. debt limit raised. We did not default on our obligations. We still paid our bills. Soon after, we saw rating agencies showing new muscle and teeth with the first ever AAA downgrade in the U.S. suggesting a slightly higher risk of debt repayment. We saw market behavior that took us on a nauseating rollercoaster ride. And now we sit confused and frustrated as to what this all really means.
Bob Morrell - CEO Riskonnect Inc. From the In-Box to the Chatter Box Chatter's most interesting feature is that it can replace all email within a risk management or claims department. When Bob Morrell began talking to clients about an exciting new collaboration and communication platform his company would soon be offering, he considered using comparisons to some of the popular mainstream social networking apps. Instead, said Morrell, CEO at Riskonnect, the risk management information system provider based in Marietta, Ga., his company chose "business collaboration" to describe its latest client innovation. Why? Because even though the new tool, known as Chatter, has a strong social networking aspect to it, that's not what makes it so powerful. Also, Morrell didn't want clients to think the platform was just another pretty face, you might say. So what gives Riskonnect's Chatter, or enterprise business collaboration platform, its true punch, and what makes it innovative? Morrell believes the Chatter technology is much more than just a networking platform, as it delivers a solution for the very critical issue of discoverability to the world of risk management. Morrell, whose original vision helped turn Chatter into reality, said it's all about communication, collaboration and control. Chatter's most interesting feature is that it literally can replace all email within a risk management or claims department. In doing so, Chatter provides the "context" often missing from email discussions, and easily allows others who are involved, or who should be involved, to follow a discussion and contribute. "For risk management, the question of discoverability (of a claim) is a critical issue, especially around email because email is discoverable," Morrell said. "But with email, the communication is done in a vacuum and if the right people are not copied or are part of the discussion, problems can and often do arise." Morrell explains that with Chatter, discussions are an open book, and can be viewed by others who are following a specific claim or issue. As such, the natural inclination to self-monitor in front of others keeps users in check with their messaging. Things that should not be part of the record can quickly be changed, and senior management can follow along. "Concerns about internal communication around claims dissolve with Chatter, as greater visibility and transparency becomes a part of the culture," he said.
OSHA issues hazard alert for specific circuit breakers - Electrical shock, burns, and fires are among the potential risks of using incorrectly refurbished circuit breakers. OSHA has issued a hazard alert, telling employers to cease using certain Eaton/Cutler-Hammer molded-case circuit breakers.
Responsibility Leader® -
Education - The largest for-profit colleges have D&O programs with $75 million to $100 million in limits over deductibles of $1 million to $5 million. Even if insurers shy away from writing primary layers, the market is competitive.
Construction -
Retail / Wholesale -
Technology -
Transportation -
Financial Services -
Higher Education -
Insurance -
Kurt Leisure - Vice President, Risk Services The Cheesecake Factory Risk Manager Walks the Walk Instead of ordering a new claims-allocation system, Kurt Leisure taught his managers to think about claims, and instill in them that safety and claims can be controlled. Kurt Leisure has been in the restaurant business for 25 years, the last 12 at The Cheesecake Factory, where he is vice president, risk services. If you ask him for evidence of his success, he's liable to talk to you about shoes. To be specific, the company's slip-resistant shoe program is part of a unique claims-allocation program developed and implemented by Leisure. It has led to a 78 percent drop in the cost of risk over a seven-year period. Other elements of the program include a nurse triage program, highly customized safety training, and reporting claims within 24 hours. Most significantly, Leisure has involved employees at every level in learning about and adopting the program, and creating a system of rewards for participation. The success of this program was significant for Leisure: "That's telling me that we found a good solution and we have buy-off from everyone from the dishwasher up to the management." Leisure also has supporters throughout the restaurant industry, including Patrick Sterling, director of risk and administration at Texas Roadhouse. Sterling met Leisure through his involvement in industry groups. "I quickly realized he's a leader. You could tell the way folks respect him. I thought, 'I gotta get to know this guy'; I sought him out," Sterling said. Leisure has become a mentor to him, generous with guidance and advice, and his claims-allocation program has been a model for Sterling's own. Sterling admires Leisure's grasp of how the industry works. "He understands the business very well and knows how to get programs in place. Restaurant operators are very entrepreneurial. Part of being a smart and successful risk manager is knowing your culture. You can't necessarily flip a switch--sometimes it takes two to three years to change culture. Kurt gets that very well." Leisure has taken a step-by-step approach to implementing new safety programs, making sure to have companywide support. "Risk management was new to when I came into the organization twelve years ago. Some risk managers take a machine gun approach,'' he said. "I'd be a complete failure if I didn't have buy-off in my operations teams in the programs I push down to them. I'm careful what I do push down and I make sure it works. Our program is complicated and has a lot of moving pieces. Most off-the-shelf things don't work in our operations." Leisure's long-term goal was to instill a new mindset that safety and claims are not just a cost of business, and that claims can be prevented and costs controlled. Rather than jumping in with a new claims-allocation system, he started by teaching a new way to think about claims. "First here's how to prevent claims from happening. Next, here's how to mitigate when it happens. I set them up for success," he said. Leisure stresses what's distinct about The Cheesecake Factory. "If you look at the culture of our restaurant, our differentiator is service. You expect something and we deliver way over and beyond,'' he said. "If you drop a fork, we present you with a new one on a silver platter and you think, 'Wow, Is this the Ritz Carlton?' '' The emphasis on excellent service was applied to the claims process.
When Global Turns into Local - By the time you read this, I'll probably be in jail. Like every other prisoner in the world, I will argue nonstop that I've done nothing wrong. That's the truth, but it won't make any difference. I just hope I look good in stripes.
Counterpoint - Innovation: Think Big, Take Risks, Be Bold - Only by bold action and innovation can carriers provide true coverage for risks in a rapidly changing world.
Workers' Comp Forum Update: Sept. 15, 2011 -
Paul Budde - Senior Managing Director of Product Development Aon Benfield
Creativity and Execution - This annual special issue showcases some of the best the risk management field has to offer.
Simplifying Claims Process - Bringing the rigor of risk management to the market was the true innovation, said Juan C. Salcedo, marine director at Liberty Colombia. "In effect he has created a new channel. We can guess and write business on unknown risks, just based on our experience, or we can use this process and write to a risk we understand." Owners and underwriters say that absolute losses have declined, as the measurement and tracking bring perils into focus. The claims process also has been simplified because there is a data trail. Insurance companies say they like the application for underwriting in particular. "The process is very fast because of the large data base," Salcedo said. "It has also made our negotiations with the client very easy. The client gets a rapid response with a quote. Before we would have to study and consider each quote. Then the client would argue. Now we say here are the statistics for that commodity on that route, so this is the premium. We have done more business with our same clients, and we have brought in new clients." The biggest prize may be yet to come: with the flowering of free-trade agreements around the region, it is expected that there will be both an increase in freight traffic, but also an increase in companies from the U.S. and Europe wanting to invest in the region. That investment can't happen unless freight companies, and their brokers and insurance firms can measure the cargo transportation risk. If global coverage stops at the wharf, development does, too. There is also a great deal of local pride in the fact that this approach was developed using the knowledge of regional operators and input from brokers and underwriters already in the market. -- Gregory DL Morris
Jose A. Ricuarte - Manager Vertice Seguros Adjusting the Premium to the Risk In Latin America, current methods that insurers use to measure the risk of domestic transport makes it almost impossible to know the real risk. The singer Shakira is no longer the most flexible, powerful, and desirable innovation to come out of Colombia: rather the nod goes to AsisCarga, the first risk simulator based on marine insurance programs in Latin America that can support the companies that are investing and using land transportation in the continent. Jose A. Ricuarte, a manager with Vertice Seguros in Bogota, Colombia, designed the simulator to measure the risk prior to delivery, and to adjust the premium based on the level of risk. Although Latin America is one of the fastest growing regions in the world, owners, underwriters, and brokers in the region acknowledge that the current methods that insurers use to measure the risk of domestic transport makes it impossible to know the real risks. In response, Ricuarte developed AsisCarga, using his own model. "We have a lot of experience with the Latin America roads, but we also have a mathematical risk model that we run each time that a truck starts a trip. We define the risk level of each shipment based on statistical information,'' Ricuarte said. "The model is fed every day, depending on the status of the roads. We are talking not only in terms of security. Remember that for the last year, the catastrophic risk like floods, landslides, in general the risks of nature caused millions in losses. The cargo risks transport in Latin America are so dynamic, change all the time.'' "The major brokers who operate in the region focus on the big picture, but I don't think they have the time to focus on new things," said Claudia Vargas, vice president at Chubb Colombia. "Jose Antonio saw what was happening on the ground, what the shippers needed, and developed this answer himself. He has worked with freight forwarders and truck companies who needed something like this." There are almost a quarter of a million freight forwarders in Colombia, Ecuador, and Peru, according to sources in the region. "We track the risk factors," Ricuarte said. "We use six initially to measure the level of risk. The first is the customer or the owner of the goods, because not all companies/corporations have the same way to manage the cargo risks. Some merchandise is more exposed than others, even carrying the same goods by the same route. That varies with the owner, and we always try to identify them to use special strategies.'' "This has been a hugely helpful program," said one manager at a freight forwarder. "It was very difficult to understand the risk of land transport. This program allows me to compile all the risks and better know how to mitigate them. I have shown the program to colleagues in places like China and in Southeast Asia because I think they face the same kinds of problems." Setting political correctness aside, Ricuarte's starting points were the unique challenges faced by regional freight operators, including the poor condition of some roads, traffic congestion, the absence of any meaningful tracking system, the difficulty in checking references or safety records for drivers, high rates of theft in some areas, and a lack of standardized security or operating procedures. Ricuarte's innovation was to address those conditions as risks that could be quantified or at least evaluated, and that unique risk management processing could be brought to bear. "Jose Antonio's idea was to have a marine open policy with all the solutions available at the same time," Vargas said. "This did not seem possible with so many freight forwarders, and commodity categories."
Kristi Wilts - Managing Director Aon Benfield Mapping the Impact of Risk The team of Paul Budde and Kristi Wilts is a force nature has to reckon with. Rationalization always holds the risk of running a race to the bottom, or at least settling for the lowest common denominator as two systems or organizations are integrated. Paul Budde, senior managing director for product development with Aon Benfield, was given the task of leading a small team to integrate the exposure management systems of Aon and Benfield, when Aon decided to purchase Benfield, a well-known analytics shop in the reinsurance marketplace. The end result was to be called ImpactOnDemand. "Benfield had Exposure View, which has strong mapping functions, and Aon had Cat Portal, which was a data warehouse, heavy on business intelligence," Budde said. "Both tried to do similar things from different perspectives. The Eureka moment for us was taking the strengths of both and not just sticking them together but using those strengths as the basis for a complete, integrated redesign." That initiative took a bit of courage, because it drove against the tendency common in behavioral psychology called the persistence of interim solutions. "There was some pressure to just stick the two things together," Budde said. "It would have been quicker, and there were plenty of other things we could have been working on. But once we decided that a complete redesign was best in the long run, we got very good support up to the corporate level." "Paul's expertise in actuarial mathematics and modeling enabled him to see an opportunity to turn the project into an underwriting tool," said Dan Dick, executive managing director, at Aon Benfield, "and then Kristi working in the field saw a role for it as a claims management tool." Budde realized early that current mapping speed and performance capabilities were not sufficient. Clients wanted faster, more flexible, more powerful applications than were commercially available. Working with in-house software designers and code writers, Budde developed first a mapping and tiling operation. The tool is integrated with the National Oceanic and Atmospheric Administration (NOAA) for live tornado, hail and thunderstorm activity, as well as with EuroTempest to provide in-depth analysis of European windstorms. Insurers can upload their most current portfolios for viewing and analysis at any time, and are able to plot as many as a million risk locations. "All other programs require the broker to upload the data," Dick said. "That is fine under ordinary circumstances, but what if a hurricane is bearing down? ImpactOnDemand allows clients to load their own data. We saw the value of this in the tornadoes in Joplin, Mo. This was a totally new way of thinking about data access and display. It has already been a very rough year for tornadoes and hail, but we have been able to overhaul our claims and underwriting capabilities on the fly with this." Once the original initiative started to take on a life of its own, its development gathered momentum, Budde's team realized the tool would have to have a flexible but rigorous permissions system with tiered access and authority. One hallmark of innovation is not just the original thinking and execution that goes into the initiative, but how much further innovation it engenders in others. Once the tiered hierarchy structure was in place, it also enabled a theoretical function. Users can take projected storm paths and run potential damage scenarios safely isolated from actual loss information.
Ed Katersky - Principal Consultant, Katersky Consulting Former Assistant Vice President of Risk Management, BJ's Wholesale Club Inc. Katersky Assumes Responsibility Risk manager helps BJ's Wholesale Club take control of its claims. Adding members and then retaining them is the principal goal of BJ's Wholesale Club Inc., which operates 185 membership warehouse stores in 15 states. Responding to a companywide membership retention challenge, Ed Katersky, former assistant vice president of risk management at BJ's Wholesale Club Inc. in Natick, Mass., successfully put in place a two-stage plan of action over the past 10 years. First, after several years of increasing general liability costs, Katersky and his risk management staff convinced management in 2001 to bring its general liability claims administration program in-house and discontinue using its prior third-party administrator. Katersky led the risk management team in shifting its thinking about BJ's liability claims. Shoppers involved in in-store incidents at BJ's are not merely claimants, he reminded his team, but rather loyal club members who pay for the privilege to shop there. Because of this paid membership relationship, he said, BJ's chooses to accept a higher degree of responsibility to its shoppers than regular retail stores. In bringing its general liability claims business in-house, "we did cost analysis and hiring two or three adjusters was far cheaper than third-party administrator fees, so it proved its worth cost-wise and met our goal of customer retention," said Katersky, who has moved on to become the principal consultant at Katersky Consulting. "Using the third-party administrator involved a lot of activity by lawyers costing legal fees that were very, very high." To accelerate the response to member concerns, club store managers now submit incident reports electronically to corporate risk management on the day of the incident, and the details of the incident are confirmed within 24 hours. Using a triage model, a dedicated BJ's claims adjuster makes contact with every shopper involved in an incident within 24 hours. Instead of a confrontational argument regarding negligence, the adjuster works to reach a fast and positive resolution with the member before the incident spirals into a claim. With widespread support in the organization, nearly 80 percent of incidents are now settled quickly and efficiently. This program has reduced BJ's average claim value by 67 percent. These results were achieved despite new store openings, membership growth and increasing medical costs.
Tim Benson - Senior Vice President ACE Multinational Client Group Weaving a Complete View of Your World Worldview gives risk managers a new appreciation for their risks with a Web-based system offering instant access to their multinational insurance programs. Naturally, having a central online tool that gives risk managers easy access to key data on every insurance program out there is a risk professional's dream. It's not too far-fetched then to call Wilmington, Del.-based Tim Benson and his team, within the ACE multinational client group, dream weavers. With Benson, senior vice president of ACE's multinational client group, in the lead role, ACE created Worldview. It is a web-based application that gives risk managers and their brokers the ability to see daily program updates, obtain copies of local policies and certificates, and access the ACE Insurance Directory, the proprietary country risk and regulatory information resource tool that ACE underwriters and legal staff use daily. Other Worldview features include access to program contacts, multinational standards, claims bulletins, and Global Risk Advantage®, ACE's loss-information system. "Worldview is unique because it gives risk managers and their brokers complete access to information on their multinational insurance programs," Benson said. Typically, he said, multinational insurance carriers can only provide loss-information data through online systems. Other information is filtered and not available in a timely fashion. Through Worldview, risk managers get immediate access to policy documentation that might take weeks or even months for other insurers to assemble, if at all, Benson said. "Worldview completes the package for supporting ACE clients in managing their global risk programs with a level of confidence that has not been possible previously," Benson said, adding that managing multinational insurance programs is a huge challenge for even the most sophisticated risk managers in the most successful, competent corporations. "There are already challenges around language, culture, time zones, systems, etc. Insurance-related concerns--including compliance issues and the value and role of insurance in each country--add to the complexity," he said. Benson won't get any argument from Laurie Solomon, director, risk management, for the Coca-Cola Co. "I would say Worldview is innovative from the standpoint that I don't see it anywhere else," Solomon said. "It's not magical, but the ease of use and simplicity, and the time ACE took to compile it all in a front-end, user-friendly database, is excellent." Solomon said that a product like Worldview was ideal for Coca Cola, with its massive global footprint and numerous international insurance programs. "The ability to see what is happening on the local level is terrific," Solomon said. "It makes life much easier for us, and that really is what innovation is all about. The output may not be rocket science, but it was not accessible before Worldview."
Dan Zahlis - Founder/Product Architect Active Agenda LLC Sourcing a New Agenda in the Open Dan Zahlis creates his own risk management software to reduce workplace risk, joins the open-source community, and then gives his code away. Eight years ago, Dan Zahlis was a practicing risk manager for a very large and recognizable ice cream company, responsible for managing operational risk across the country. He had to manage multiple facilities in multiple states with multiple functional departments--a very frustrating experience, as he recalled it. "They were all attempting to manage risk using disparate systems and isolated information," he said. "I wanted a system that would allow our organization to streamline risk management using single systems to manage all types of risk across our global enterprise." First, he turned to the insurance brokerage industry for solutions to the problem (the company was self-insured), but came up empty handed. So he did something drastic: He decided to create his own risk management software. That was back in 2003, and by 2006 after money collected via what Zahlis called the "Three F's" (family, friends and fools) method, he thought he could find an investor to help him take his technology to the marketplace. Well, it didn't quite work out. Investors got greedy, he said. So Zahlis turned to open source, a development method for software that "harnesses the power of distributed peer review and transparency of process," as he defined it. Today, Zahlis' open source efforts are going strong, and he offers his risk management system solution for free. (The code is at sourceforge.net/projects/activeagenda.) "Open source's promise is better quality, higher reliability, more flexibility, lower cost and an end to predatory vendor lock-in," Zahlis said. "Our project mission is to reduce workplace risk through global collaborative development and free distribution of open technologies and ideas," he said. "Our software consists of more than 100 integrated risk-control modules." As Zahlis explained it, by being an open source solution, his source code is implemented any way a user chooses to implement it. In most cases, the code is implemented by organizations on their local servers. In some cases, the application is implemented as a hosted service by independent service providers (Active Agenda, based in Clovis, Calif., will do it for a fee). "We implement development by posting our work to a source code management system on the Internet," he said. "Anyone in the world can download our code. The only condition we place on using it is that improvements must be shared with the global community." "I am very proud to have thoroughly evaluated and even been able to raise points of interest to Dan's app, which is everything I have been complaining we didn't have already when working for major brokers," said Nicolas Schnuderl, future manager, Croci Caraibes, and formerly an international account executive for both Aon France and Gras Savoye in France. "Active Agenda is scalable, highly customizable and benefits from decades of experience in the field."
A Who's Who of Users - Zahlis said the only true measurement he has of the impact of the firm's innovation is the number of people downloading the source code, which amounts to about 5,000 downloads so far; organizations like banks, municipalities, wineries, hospitals and universities, visiting the project website; and the people contacting Active Agenda for support or to provide feedback. "Our web logs register visitors from around the globe and include a virtual who's who of businesses, not-for-profits, and government entities," he said. The source code is being used "in ways we will never know," he said. One user, a winery in Australia, would not mention it by name in a recent magazine article because the winery considers the code a competitive advantage. Right now, Zahlis is trying to convince brokers and carriers how smart it would be to provide sponsorships for his open source project, but it's been tough sledding. "I tried the proprietary route and ran into the problems of people trying to lock it down and control it," he said. "But the idea of open source is you are going to release it and it gets built by people really interested in solving the problem." Zahlis said his larger project agenda is to change the "culture" of the risk management industry by illustrating the power of open source principles to shed light upon problems that can result in loss. "Making this enterprise risk management tool available to the world for free eliminates many of the financial, political, and territorial barriers to organizations trying to manage risk," he said. -- Tom Starner
New Solar Warranty Program - PowerGuard's insurers have paid losses on wind turbine business. "The turbine warranty world is fraught with peril," McMullen said, noting that wind farms can be in locations where winds gust from zero to 200 mph fairly quickly, and that changing the gearbox on one turbine can cost $600,000. "You really need to know your equipment." The solar warranty program is in its infancy, though, and loss experience is still to be determined. "We're only two to three years into this deal. We only have 23 years to figure out whether we're making money or not," he said, joking. Tough underwriting should help. McMullen and his team spent months examining Upsolar's business before binding its coverage, Dalbey said, looking at its design and manufacturing processes and examining its financials. "They have to do more than just kick our tires," he said. "They're very thorough, and they have to be." Meanwhile, PowerGuard recently expanded its offerings with PowerWrap, a performance guarantee policy for solar projects underwritten by a unit of Hannover Re Group. PowerWrap guarantees the design and installation of a system, warranties its hardware and covers losses of revenue, solar energy tax credits and other costs from non-performing or underperforming systems. The new product is an indication of the hard work McMullen puts into protecting his alternative energy clients, the clients say. "I don't know many people who put their nose to the grindstone the way I do. And he does," Dalbey said. -- Douglas McLeod
Tracking Injury Claims - Under the program, schools are permitted to buy stepladders, salt kits to de-ice stairs and walkways in the winter, rubberized carpets to place at entrances to deal with wet floors, and digital cameras, so that school personnel can document conditions at the scene of accidents going forward. All simple steps, but in some cases steps that were not being taken. "We just want to make the schools safer; that's the bottom line," Graff said. About 40 percent of the pool's members participated in the grant program last year, and Graff said he's hoping for 65 percent to 70 percent participation this year. To measure progress, Graff and Cambridge-Sedgwick collected baseline loss data and are tracking claims at participating versus non-participating schools, benchmarking against current and previous payrolls to normalize the results. To this point, it's looking good, they say. "From what we've seen so far, all of the (participating) schools have shown an improvement," Michels said. Graff estimated a 15 percent to 25 percent reduction in slip-and-fall claims at the participating schools for 2010, though he cautioned that it may be too early to draw conclusions. The program will continue for the 2011-2012 school year, and then Graff said he expects SELF's board to look at the results and decide whether to continue. "We're going to be watching pretty closely," he said. -- Douglas McLeod
Responsibility Leader®: Rick Shaw - Red Flags of Foresight Rick Shaw remembers the horrific events at Virginia Tech so vividly. It was April 16, 2007, the day 23-year-old English major Seung-Hui Cho stalked, shot and eventually killed 32 students and faculty, himself included, and wounded 25 others. "My first reaction was, 'How big is it? How bad is it? This is horrible,' " Shaw said. "With my safety and prevention on the brain, my next thought was, 'Was this preventable?' " The question for Shaw wasn't one of second-guessing the killer's actions; it was already too late for that. For Shaw, the question was how the tragedy could have been prevented. In hindsight, he said, there are often "a lot of red flags," leading up to an incident, but hindsight isn't good enough. It's always too late. No victim was ever saved by the shield of hindsight. That's where his Threat Assessment, Incident Management and Prevention Services (TIPS) Web-based software, designed to flag warning signs before an individual explodes, comes in. Shaw is a Responsibility Leader® because he created a system to make campuses safer in a time when we desperately need them to be; his is an innovation clearly motivated by a desire to save lives.
Quantifying Risk - Hagen reiterates that to quantify risk using his approach also helps risk managers to decide "whether to act or not on any particular exposure. Once you have the numbers, you can decide how to adjust your mitigation." In one pilot program, a process manufacturing company was ready to cease making one of its materials, because the supply-chain costs were too high. "We used that as a test case, because we knew the answer," a company official said. "After running the calculations for two or three weeks, the answer came back that we should continue to manufacture. We were even able to get hard data on the most economical supply-chain alternatives." Risk managers said another benefit of Hagen's approach is that it enables their side of the house to speak the same language as their finance and management colleagues. That is especially important for companies when the risk management group is part of the treasury department reporting to a chief financial officer. "Having the data makes our conclusions and recommendations much more credible," Seaback said. That said, Hagen has not created a soulless machine to replace human intellect. "He engenders trust," one risk manager said. "He came in and showed people the process and got answers from people that I had worked with for years and never gotten so much input from." -- Gregory DL Morris
Investing in Improvements - In terms of efficiency, Parkin said that the new system, which went into planning at the end of May 2010 and was rolled out in late June, had great results in 85 percent of cases. In the remaining 15 percent of cases, Aon was not able to use the 3G technology and had to redo its work, going offline and then uploading survey information. "If you have a great 3G connection everything is fine and you have no issues or concerns, which was the case in most instances," Parkin said. Parkin said that Aon continues to invest money in improving the 3G program. "One of the things that we have done is create a global committee that's spread across all of Aon's regions, Europe, the Middle East, Asia Pacific, to look at ways we can to improve the GPS system," she said. She worked closely with Aon's information technology development team to create the Aon GPS, a web-enabled database that could be used with an iPad. She also credited Aon Global Risk Consulting team members Mike Panfil, managing director of property risk control¿U.S., Marcel Hanssen, director of risk control¿Netherlands, and Brian Parker, head of risk control and engineering¿Pacific Rim, who helped ensure a consistent global approach to GPS as well as the related iPad application. Deadlines were tight and the GPS product was released about six weeks after the Abu Dhabi contract was awarded. "I'm a risk control person, but I've become a lot more of an information technology person as a result of doing this," Parkin said. The return on investment for the Abu Dhabi project was 24 to1. For every $1 invested in Aon GPS, the broker received $24 worth in new client revenue. Since the use of the iPad technology in Abu Dhabi, Aon has also utilized the system for clients in North America. Aon Global Risk Consulting's innovation committee approved the use of the funds to purchase the iPads and invest in related information technology development. Based on Aon Global Risk Consulting's success with the iPads, other areas of Aon have looked at ways to use them. Aon is now moving toward using iPads and iPhones for access to email and SharePoint sites. -- Steve Yahn
Premium deductions from installer's paycheck secures coverage - In South Carolina, if an employer withdraws workers' compensation premiums from a worker's paycheck, the employer must cover the worker's work-related injuries.
Little Protection for When the Whistle Blows - At least 27 whistleblower suits had been filed against for-profit colleges as of the end of 2009, and the government declined to intervene in nearly all of these cases.
Innovating From Within Manufacturing and Financial Services Companies - Risk managers adopt enterprise risk management to help move their companies forward.
People: Weak Security Link - He started his own security company, CorpNet Security, in 1998, providing "white hat hacking" services to clients looking to spot weaknesses in their systems. Throughout, he said, he came to realize that "people are the weakest link" in any security system, and that there were few tools available to deal with threats from an institution's own employees or from its students. He founded Awareity in 2002, and the first product the company launched was a software platform called Managed Ongoing Awareness and Trust, or MOAT. MOAT offers web-based employee training and documentation for compliance with an institution's own policies and with laws like the Health Insurance Portability and Accountability Act and the Family Educational Rights and Privacy Act. From there, Shaw developed TIPS. About a dozen schools have adopted the system so far, he said, though its applicability extends beyond campuses. A handful of healthcare companies and banks also have implemented it, he said. TIPS may prove especially useful for banks, he said, in preventing liabilities that could arise from the whistleblower provisions of the Dodd-Frank financial reform law. -- Douglas McLeod
Ratings, Risk and Ostriches - The seven days of stock market trading after the Standard & Poor's downgrade of the United State's credit rating was made public was the most volatile in years. After weeks if not months of doomsday predictions of the downgrade's effect, it appears to be one with short-term impact. Or is it?
Innovating From Within the Manufacturing and Financial Services Enterprise - Risk managers adopt enterprise risk management to help move their companies forward.
Peter Taffae - Managing Director Executive Perils Inc. The Fixer Peter Taffae loves to fix things, and tinker with insurance policies. Call him the Steve Wozniak of risk coverage. Peter Taffae has made a career out of crafting innovative fixes. He devised a directors' and officers' (D&O) and an errors and omissions (E&O) liability products protection policy for food and drug manufacturers after the Tylenol tampering and poisoning incident, and developed a super continuity contingency plan for clients insured by American International Group Inc. during the financial crisis, and created Trilateral Coverage® for acquiring companies in merger deals to cover tails of the selling companies' D&O policies. Taffae said the goal always has been to find a solution that works for both his clients and the insurer. "Everything we've ever done is really a solution to a problem; these innovative ideas come because we were in between a rock and a hard place," said Taffae, formerly an underwriter for The Chubb Corp. and now managing director of Executive Perils Inc. in Los Angeles. "We want the insured to win, but we also want the underwriter to win, so we have to figure out something in the middle," Taffae said. "We want to make everybody happy." After the 1982 Tylenol incident, Taffae, then a Chubb underwriter, realized that food and drug manufacturers much like Johnson & Johnson Services Inc. were lacking an insurance product that would indemnify for their expenses, if they had to recall damaged products, rebuild tarnished reputations and pay for claims. Consequently, Taffae convinced Chubb's management to create a new D&O/E&O products protection policy for two clients in that sector--a large chocolate manufacturer and a national diet food manufacturer. Less then 90 days after the Tylenol incident was reported in the media, Chubb had its first insured on this newly written policy. In the summer of 2008, Taffae realized that he needed to come up with a "worst case" contingency plan for Executive Perils' clients coming up for renewal on their D&O policies with AIG, XL Group, The Hartford Financial Services Group Inc., and other insurers with heavy exposure to the mortgage sector. Taffae developed a super continuity plan, which would allow the insureds to remain with their incumbent carrier, but have a "back up" should their carrier earn an unacceptable credit rating. Taffae negotiated a separate standalone D&O program and paid a small fee to keep the quote open for 365 days, versus the industry's traditional 30 days. The contingency program was only available if A.M. Best downgraded the current primary carrier and/or its subsidiaries to an A- or lower.
Expanding the Program - Based on the success of the initial U.S. phase of the program, the company is discussing rolling out the system internationally, the risk manager said. The intent is to implement the program globally. "Any of the individuals that we provide the service were potentially avoiding their discomfort from escalating to the point that they filed a workers' comp claim," the risk manager said. "For us, this is a proactive approach to get ahead of the muscular-skeletal repetitive-motion disorders before they became more serious in nature." Hilgen and his team now operate the ergonomics program for four of the firm's clients as well as for its parent, Marsh and McLennan Cos. So far in 2011, more than 99 percent of intake calls for all five clients were resolved telephonically and did not escalate into onsite visits or workers' comp claims. Melissa Yee, assistant risk manager for Marsh & McLennan, said utilizing the program from April 2010 to April 2011 has resulted in a 50 percent reduction in the number of reported losses in repetitive injuries in workers' comp claims, compared with the same 12-month period the previous year. "Employees have been very happy with the results that in most cases, it hasn't progressed to onsite evaluations," Yee said. Moreover, the program has also helped reduce the costs of purchasing new equipment, she said. Unsolicited feedback about the program from employees of the participating clients has been tremendo us, particularly about the personal interaction with Marsh's ergonomics experts, Hilgen said. "To be such a consultant requires a lot of unique attributes--good at ergonomics, but also good at resolving issues, and being extremely patient with people who are in pain," he said. "They are also very good problem solvers and they have very good people skills. They are genuinely concerned about helping these people.'' -- Katie Kuehner-Hebert
Rick Shaw - CEO and President Awareity Tipped off by the Importance of Foresight Software designed to help colleges and other institutions identify troubled students or employees before they act is often a matter of life and death. Anyone following the news has heard terrible stories of school and workplace violence, from the 2007 Virginia Tech massacre to cyberbullying incidents that have in some instances led to suicide. Rick Shaw, CEO and president of Awareity in Lincoln, Neb., is finding ways to stop such incidents from occurring. Shaw has developed TIPS--for Threat Assessment, Incident Management and Prevention Services--software designed to help colleges and other institutions identify troubled students or employees, and to intervene before they harm themselves or others. TIPS aims to counter a common security problem at schools, which is that the vast majority of incidents, ranging from threats to bullying to sexual assault, go unreported. "You can't prevent situations you don't know about," Shaw said. The system starts by making reporting easier, adding a button to an institution's own website that allows anyone to file an anonymous report. The reporting form features a drop-down list of various types of incidents--cyberbullying, for example--and asks for the date and time of the incident, the identities of the person being reported and any victims, and a description of the incident. A school may designate teams of people to be automatically notified of certain types of reports, and the system allows team members to create a record of recommendations and actions taken, keeping track of which members view and add to the record and notifying members of new information. TIPS also allows teams to upload material from outside sources, such as Facebook pages, and can be set to alert members for follow-up on individual cases. "When you forget to follow up with an at-risk individual, bad things can happen," Shaw said. Threat assessment team members can include not only a school's counselors and safety officers but also its lawyers and local police, he said. Including legal counsel can protect sensitive information under attorney-client privilege, while the involvement of law enforcement may shield data from Freedom of Information Act requests, Shaw said. The web-based TIPS system is remotely accessible by laptop or smartphone, meaning that team members can stay in touch wherever they are, said Claire Good, associate vice president and dean of students at Eastern Kentucky University in Richmond, Ky., which has been using TIPS since February. "The system made it so simple, so easy" to track individual cases, she said. Awareity also responded quickly to requests to customize the system, Good said. Eastern Kentucky wanted, for instance, to combine incident reports with information from the company's Campus Aggression Protection System to show changes in the level of subjects' aggressive behavior. "They didn't discourage anything I had to say," Good said. "They implemented it right away." Shaw came to his new work with long experience in computer systems and computer network security, including stints as a manager at Electronic Data Systems--now part of Hewlett Packard Co.--and as a data specialist at MCI Inc., since acquired by Verizon Inc.
Arizona follows OSHA's standard on fall protection - The Industrial Commission adopted a federal Occupational Safety and Health Administration directive on fall protection.
Dr. Susan Heller - Corporate Medical Director Southern California Edison Turning Red Flags into Green Energy utility program cuts injury rates to employees in the first year on the job. When two of a large power company's most critical business units express concerns about a high incidence of injuries occurring during employees' first year on the job, it sets off risk management red flags. For Dr. Susan Heller, the corporate medical director of Southern California Edison (SCE) in Rosemead, Calif., those red flags turned to green in the form of cost savings (as well as safer employees), as Heller put together an innovative and successful solution to reduce on-the-job injuries. Heller began by meeting with business unit partners, and it was quickly decided that any solution would have to achieve several goals, including supporting safety on the job, reducing workers' compensation claims, reducing occupational injuries or illnesses that require medical treatment more than simple first aid which are recorded by the Occupational Safety & Health Administration (OSHA). Complicating matters was the fact that SCE was about to launch its biggest capital expenditure initiative in the company's 140-year history, involving replacement and/or upgrading of 50-year- old transmission lines and facilities, as well as the investment in new "green'' technology. The result was expanded growth for the company and the hiring of hundreds of new employees. "In this environment, it was critical to ensure the hiring of healthy and productive workers in order to meet SCE's future needs," Heller said. Heller and the cross-functional team she led designed the injury-reduction program for new employees as a three-step process consisting of: -- A post-offer medical history used to ensure a candidate's safe ability to participate in the job they were hired for, but that was not used in candidate selection. If a medical issue is identified, the candidate is asked to provide a medical authorization/release from his or her physician in order to continue with step two of the assessment. -- A post-job offer physical examination used to ensure that the candidate is able to safely participate in job-specific testing. If a medical issue is identified, the candidate is asked to provide a medical authorization/release from his or her physician in order to continue with step three of the assessment. -- Job-specific testing designed to establish the employee's capability to safely perform the essential job duties. Testing results are used to determine "capable" or "not capable." If a candidate is not capable of physically performing the essential job functions, he or she does not meet the requirements of the job, and the job offer can be withdrawn. The candidate can reapply again once they meet the capability job requirements. At first, Heller thought post-employment testing could be done in-house. But after more research, SCE partnered with a vendor that could customize a program to meet the company's unique and specific needs.
Point - Innovation: Think Small, Stay Steady, Hang Back - Risk managers and their insurance partners should put their trust in the art of incremental improvement.
Announcing the 2011 Risk InnovatorTMWinners - We recognize 19 risk professionals from a variety of industries for their creativity and execution of innovative risk management. Read about each winner's innovation here.
This Week's R&I One® edition - In case you missed it, this week's R&I One®, features: Soft talk on hard prices in Monte Carlo; is risk rising along with tuition prices?; space junk causing atmospheric risk; budget cuts making it tough on public schools; Lloyd's sues Saudi Arabia; Northeast undone by massive flooding; and more.
Welcome to the 'Big Data' Era - Vast amounts of data are created every day, resulting in a massive stockpile of valuable business intelligence that businesses would love nothing more than to be able to mine.
Creativity and Execution on Display - Risk innovators deliver results with breadth and depth.
Brian Hagen - Managing Director Decision Empowerment Institute Innovating to the Hagen Algorithm Case studies are the prevalent way of mitigating risk holistically, but Hagen's approach offers root cause analysis. One piece of folk wisdom cautions that "it's not what you know you don't know that gets you into trouble, it's what you know for sure that just ain't so." Enter Brian Hagen, managing director of the Decision Empowerment Institute in Spotsylvania, Va., who brings engineering and economics to risk management. Hagen's innovation is a method that allows expenditures on resolving problems, mitigating risks, or capturing opportunities to be completely comparable based on the best life cycle value for an organization. "Everyone is looking for the best price to fix risk," said Michael Breggar, vice president of life sciences for the consulting firm Business & Decision. "That usually means changing a process or component, or laying off risk. But Hagen's magic tool box allows you to know how much it would cost not to fix the risk. And maybe that is an acceptable cost." In short, Hagen asks, "Or else what?" The question seems like a juvenile taunt, but it is actually the leading edge of quantifying risk mitigation. Hagen's inspiration was to realize that few organizations are as rigorous in determining the value-added or the return-on-investment in risk mitigation, as they are in the same calculations for capital allocation, or marketing and sales expenditures. From that revelation, he developed the mathematics and algorithms, then created a software application to enable its quick and efficient use in organizations. Evaluating the full range of costs for problems, risks, and opportunities--from doing nothing through complete elimination--the algorithms generate an "investment productivity curve" which then builds a business case for risk-management decisions. "Any boardroom can take it from there," Breggar said. The prevalent method for holistic risk mitigation is to use case studies, but people familiar with Hagen's approach note that case studies can only provide snapshots, not root cause analysis. "Risk management is done, but not with enough rigor," Hagen said. "Boards want to know what they get in return for their risk-management costs. They think in terms of return on investment. This gives risk managers the tools to present to their executives and board in language those people understand." "You can't begin to mitigate risk without understanding the root causes," said client Paul Seaback, vice president of supply chain for Medicis Pharmaceutical Co. "You have to go back upstream. Especially in areas like quality risk." That means comparing the cost of changing suppliers or investing in new equipment or buying insurance to cover a bad batch and its consequences. Another common approach is to use a regulatory template, such as those provided by the Sarbanes-Oxley Act. That is often the technique used in companies in which the risk management function is housed in the legal department. "Hagen's methods include regulatory costs and consequences," Breggar said, "but also the human resources and full-cycle costs of risk mitigation beyond any compliance issues." "The whole industry has been struggling for years, and continues to struggle with how to quantify risk holistically," Seaback said. "At the end of the day, the decisions are still mostly qualified, not quantified. We can compare one premium to another or the cost of upgrading equipment, but everything else usually just comes down to a gut feeling. Even when you try to run the numbers, you don't know if you have generated a relevant set of figures."
Global Mapping Capability - ImpactOnDemand is a web-based application, which means that users can access their data globally through a secure connection with a proprietary public and private key encryption scheme. The platform requires no installation or local storage capacity. With that flexibility, Managing Director Krisi Wilts took the system into the field for training and testing. "She quickly came back with a next-generation idea for smart-phone applications that could be used by adjusters live in the field," Dick said. There is no limit on the number of locations that can be uploaded, viewed and analyzed with ImpactOnDemand. Users can view and track exposures worldwide via its global mapping capabilities and portfolio analysis tools, and receive real-time information on catastrophes including earthquakes, hurricanes, wildfires, tornado and hail events, and even volcanic eruptions. The tool is integrated with pre- and post-event identification of exposures by CRESTA zone for named storms, as well as identification of exposures by CRESTA zone using the EuroTempest live five-day, peak-gust speed forecasts and recorded observational data. It is also integrated with Tropical Storm Risk for live tropical cyclone event analysis. Colleagues say Budde and Wilts are an ideal inside-outside complement. He holds a doctorate in mathematics from the University of California at Berkeley, and was a 2008 Reinsurance Power Broker®. She has field experience in both marketing and claims adjusting, as well as training. Based on input from the field, the next generation after the next generation could be moving out into other types of coverage beyond property and casualty. "The ability to visualize data is the key," said Patrick Sheridan, responsible for corporate risk management at the Westfield Group. "With the business analytics in place, there is likely a great deal of capability beyond current lines." -- Gregory DL Morris
Claims Management (Part 2): At the Other End of the Table - In the international arena, risk managers must learn to adapt, as they deal remotely with claims adjusting and other customer services issues they are used to handling more closely stateside.
Ponder the Differences - Coverage terms of priceless treasures take very different turns depending on which side of the pond they reside.
Responsibility Leader®: Dr. Susan Heller - This Doctor is Always In Dr. Susan Heller, corporate medical director with Southern California Edison, implemented post-employment testing at her company's corporate headquarters to determine whether employees were physically able to perform the job that they had been hired to do. Her goals were to reduce workers' comp claims and support the overall health and productivity of the workforce. This task was especially important because Southern California Edison was about to embark on a massive upgrade of its transmission lines and an investment in green technology. Heller assembled a corporate team that developed a three-step program that included a post-job offer medical history review, physical examination and job-specific testing. Her program was innovative because it complied with the Americans with Disabilities Act since it was implemented post-job offer. It's a simple distinction, but it had big ramifications: $96,000 in testing expenses quickly resulted in $800,000 in savings. Heller was named a Responsibility Leader® this year because her work has resulted not just in bottom-line savings, but in an increase in the ability of workers to do their jobs safely, and without fear of injury.
Oklahoma official credits legislation for decrease proposal - Bipartisan legislation passed earlier in the year "is beginning to reap rewards for Oklahoma," according to Insurance Commissioner John Doak. He made the statement in announcing a proposed 1.7 percent decrease in workers' comp rates.
Jim Graff - Pool Administrator Arthur J. Gallagher & Co. The Claims Custodian Matching grants of up to $1,000 from a school insurance pool's surplus funds allows schools to buy safety equipment. Jim Graff, Chicago-based manager of a workers' compensation self-insurance pool for schools, is hoping that sweating the small things pays big dividends for his school district members. Graff, a pool administrator with Arthur J. Gallagher & Co., manages the School Employees Loss Fund (SELF), provider of work comp coverage to about 80 northern Illinois school districts. When he and his team began looking into a series of injury claims plaguing the pool, they soon pinpointed a handful of causes, among them teachers falling off chairs and desks while trying to reach high shelves or put up classroom material. Graff's deceptively simple response: A grant program that has allowed schools to buy the kind of safety equipment--including stepladders--that can be found at the local hardware store. "He's very creative and just wonderful to work with," said Ann Michels, an account manager with Cambridge-Sedgwick CMS in Chicago, the pool's third-party administrator. Graff cites the fact that workers' comp "is a very process-driven line of insurance" where loss control depends on analyzing data and the facts and circumstances of accidents. "The beautiful thing about having a 25-year-old program is that you have a lot of data," he said. SELF got started with Gallagher's help during the liability insurance crisis of the mid-1980s, when Illinois school districts suddenly had a tough time finding affordable workers' comp coverage. The pool has grown from about 36 original members, and now provides statutory coverage with a $750,000 per-occurrence retention and specific excess coverage above that amount, Graff said. The size of the fund has varied with membership, but now amounts to about $10.5 million in annual member loss contributions, he said. A couple of years ago, a series of expensive claims from trip-and-fall incidents caught Graff's attention. In one case, a teacher fell and broke a shin. In others, a teacher and a custodian hyperextended knees. The custodian injured himself when he fell from a space heater where he'd been standing to wash windows. In all, the accidents cost the pool around $250,000, he said. When Graff dug into the pool's claims data, he found a spike in claims around August each year, as teachers were getting classrooms ready for the beginning of the school year. With a little more work, he found that many injuries were caused by school employees standing on chairs and tables for added reach. Other clusters of claims came in winter months, with falls on stairs. After talking the problem over at Gallagher and with pool members, Graff proposed a new program: matching grants of up to $1,000 from the pool's surplus funds to allow schools to buy safety equipment.
John Toczek - Manager, Decision Support and Analytics, Global Risk Management Division ARAMARK Corp. A Big Thinker with Intellect to Spare For John Toczek, the statistics are the easy part. Turning the data into digestible, presentable information for clients is where the innovation lies. John Toczek manages the five-person decision support and analytics team, part of the global risk management division at ARAMARK Corp. It's a small team but it has companywide impact. "Our goal is to enable other departments to make data-driven decisions," he said. Although Toczek brings a statistics background to his job, he realizes that one stumbling block is the discomfort many people have with data. "In general, people don't like to look at a lot of data," he said. "They want something they can interact with." This understanding, that the crucial information provided by the data needs to be conveyed in a more interactive and easy-to-grasp manner, led to the development of Interactive Risk Simulators (IRS). The simulators are tools that visually portray statistical relationships between business metrics like employee tenure, employee engagement, a trained workforce and account tenure, and risk management metrics such as Occupational Safety & Health Administration (OSHA) incident rates, workers' compensation rates and customer injuries. The simulators use gauges and interactive sliders to answer questions such as how more employee engagement tends to lower the OSHA incident rates. "Once you understand the links, you can control your risk better because you know which actions are going to be most effective at mitigating that risk," he said. Toczek said the risk simulators meet the challenge of making complicated material accessible for a lay audience. The work that led to the creation of the simulators began a few years ago during a discussion with Andrew Pelcin, director of decision support for global risk management, about the relationship between actions taken by front-line managers, food-service directors, district managers, and general managers in the field, and the effect of their decisions on ARAMARK's risk metrics. "There's a lot of collaboration where we'll sit in front of the whiteboard and say 'What could we do with this information we have, and how do we deliver it to the people who are going to consume it?' " Pelcin said. Pelcin said Toczek excels at translating complicated statistical information into easy-to-understand material. "He's phenomenal at delivering this information. It's one thing to make a statistical model, but the challenge is making it so the information can be consumed by anyone at any level almost without an explanation. You can't have an innovative solution if it can't get accepted as well." Ken Bowman, vice president of safety risk and control at ARAMARK, raves about Toczek's abilities. "He's one of the smartest people I ever worked with. He's really interested in the next big challenge, in figuring out what the business problem is,'' Bowman said "He really likes to have things to think about and to solve problems. He is extremely customer focused and a good listener. He's resonated very much with our field population and been able to really use their feedback to enhance tools they've developed."
Responsibility Leader®: Kurt Leisure - Turning up the Heat For Kurt Leisure, vice president, risk services, for The Cheesecake Factory Inc., the expression "cost of doing business'' is a loaded term, a safety and prevention euphemism if not for complacency, then for not doing nearly enough. Leisure's favorite ingredient for the cost of doing business is one called "Zero.'' Every claim, he said, can be prevented, every workers' comp cost controlled as carefully as oven temperatures. Despite his employer's safety and prevention programs on paper, operations managers need to adhere to them. Leisure's never above infusing a little competition and financial incentive to ensure that operations professionals are driven to adhere to his claims-allocation program. The restaurant chain's loss rate has dropped from $4.13 per $100 of payroll to $1.41 per $100 of payroll, since he implemented his claims- allocation program. Leisure is a Responsibility Leader® because he displayed the initiative to take a hard look at a program that other companies might have considered state of the art, and he had the courage to change it.
Responsibility Leader®: John Toczek - Communicating Through the Statistics ARAMARK was faced with the challenge of determining the statistical relationship between business metrics, employee tenure, employee engagement, and risk metrics such as workers' compensation injury rate and rate of customer injuries. What John Toczek came up with was Interactive Risk Simulators, a system that would allow managers to make theoretical adjustments in business metrics and watch how those changes would affect risk metrics. ARAMARK's global risk management team surveyed more than 200 of the company's managers on the new system. This ability to communicate and execute complex risk concepts to a wider audience, including line managers, food service directors, district managers and general managers, has helped to bridge the risk communication gap in ARAMARK's various departments. Toczek is a Responsibility Leader® because the accessibility and the simplicity of his innovation will allow it to be duplicated in other companies and industries. As Toczek's process is duplicated and/or licensed, workers with other companies will be much more comfortable in assessing the connection between risk management and the business processes. This should result in safer workplaces and greater efficiency.
Anne Parkin - Lead Consultant Aon Global Risk Consulting On the Go and in One Go with iPads Consultants leap into 3G technology and turn around site surveys in record time. When a management company in Abu Dhabi wanted surveys of 750 of its buildings done in six months, standard assessment processes wouldn't come close to delivering results on such a tight schedule. "Generally when you do a property survey on various facilities you go out and do the survey and then you can spend as much as 10 to 20 days doing various reviews and preparing a report," said Anne Parkin, lead consultant at Aon Global Risk Consulting. But the prospective Abu Dhabi client made it clear it couldn't afford to wait that long. Enter the Apple iPad 3G technology, which had just come onto the market. Parkin eyed the iPad and saw it as a godsend. "The iPad had just come out and everybody was talking about it, it was everywhere, and I thought it would be great to utilize this technology," she said. "What happened was that I was brainstorming with our account executive and I said to him it would be great if we could go out and do this work onsite with iPads, and then basically as soon as we finished doing the surveys onsite we would be able to send the report through to the client," Parkin said. The account executive bought into the idea and soon so did the client, who wanted detailed information to help plan improvements to buildings for the next 10 to 20 years. "The client was very excited about being on the cutting edge of technology," Parkin said. "The unique thing we were doing in the Middle East was gathering basic information so we didn't need to do the formal reviews we normally had to prepare," she said. "So basically we were able to provide the client with the information as soon as we left the site, which is really a unique thing when you're doing risk-control reports." This process was saving money as well as time because Aon didn't have to write down the information twice--"we didn't have to write it down in a notebook and then go back and write it down on a computer," Parkin said. "You can get it done on one go. That was the main reason the client selected us, because we were forward-thinking enough to use new technology to save time and money."
A Deserving Six - We had many highly qualified applicants vying for the Risk InnovatorTM award this year so we decided to cite a few of the best who weren't selected for the award. The following six people deserve to be recognized for their diligent risk management work.
Brief Life of Federal Standards - Washington once turned a spotlight on the state workers' compensation systems. A fragile coalition pushed for extensive state reforms, with some success. Yet within a few years the coalition collapsed, bringing an early end to federal intervention.
Damage to structure of back proves compensability - In Kansas, in determining when an injury arose out of the employment, the focus should be on whether the activity that resulted in the injury was connected to the performance of the job.
Worker fails to land benefits after driving golf cart over ramp - A worker's injuries resulting from premeditated and deliberately planned horseplay do not arise out of and in the course of his employment.
An Innovative Atmosphere - Development of the risk simulator progressed slowly at first. The decision support team also works with other departments within the company, including claims, safety and risk control, and quality assurance. Those are its primary internal clients, and they support the needs of the field and other departments within ARAMARK. Work on the risk simulator project continued during spare time, in a company atmosphere where innovation was encouraged. "Leadership here understands the value in innovation, so they make sure the employees have time to create those kinds of things," Toczek said. Once the risk simulator was ready for testing, it went to what Toczek describes as "200 beta-testers we keep on hand to try things out.'' The product went out across the organization, up to regional vice presidents and down to front-line managers for feedback, Bowman said. The product was then tweaked and finally unveiled. The risk simulator is available to all the lines of business, but not to every individual. Rollout continues, and preliminary feedback is positive, Pelcin said. Pelcin praised Toczek's accomplishment: "It's that simple solution that you explain to someone and they say 'Why didn't we think of that five years ago?' When I slide the part-time employee ratio and they see that this affects your OSHA rate and how, they get it. "Everyone understands how risk management plays into the greater organization and how their business directions are going to affect the larger mix. The fact it's visual really helps people understand. "There are probably a million people in the world who could do the statistics, but to figure out a way to display it so simply and yet get all the points across, that's the beauty of this," Pelcin said. -- By Lynn Rosen
Data in Real-Time - Scott Borup, director of corporate risk management for Johnson & Johnson, said that with J&J's three main business entities--pharmaceuticals/biological sciences, medical devices and consumer healthcare--the risk management landscape can get very complex. For example, J&J conducts clinical trials around the world, a risk management landmine if not done properly. "You can imagine keeping your arms around everything is a daunting task, and something like Worldview is a great innovation and help," Borup said. "We have hundreds of operating companies worldwide, and ACE issues close to 200 policies for us. We are a very compliance- focused company, so we need to have every piece of information at our fingertips. Having a clinical trial delayed is not an option for us." Borup said that Worldview has been a great step forward for the J&J risk management process, as the tool allows J&J to accomplish and track all sorts of activities, including the issuance of policies, certificates of insurance, and claims. "It very unlike the past, where we had a file room full of shelves of huge binders," he said. "Now we have live, real-time access to the critical data. Worldview may not be transformational in terms of insurance, but it certainly is enhancing the risk management process." Benson led the ACE Global Services improvement effort for multinational accounts, and as the Worldview concept began to take shape, Benson's role expanded to include multinational technology initiatives, including Worldview. Benson and the ACE Global Services team launched the pilot in the spring 2010 with about 25 multinational programs. The main rollout began during late summer 2010. Since the launch, more than 560 clients and brokers representing 172 multinational programs have signed up to use Worldview, with about 100 new users each month. "Client feedback has been very positive," Benson said. "Several risk managers, in fact, have cited Worldview as a key reason for moving their multinational programs to ACE." -- Tom Starner
The Pillbox Defense - How to reduce information technology risk with a pharmacy benefit manager's modern technology toolkit.
The Double-Edge Sword of the New Healthcare Landscape - As the healthcare and insurance sectors prepare for big changes in healthcare laws, experts say more transparency might also lead to unwarranted malpractice claims.
Implementing Copper Guard - Marking the copper materials and HVAC units is only the first step of implementing Copper Guard, Turbyfill said. His clients alert their local law enforcement about the markings. Not only that, their legal departments have been advised to send letters to area salvage yards, placing them on notice about the marking program and to notify authorities if someone tries to sell them marked materials. The letters include a clear warning that the salvage yards could potentially be considered accessories to the crimes for failure to act. "As with any security measure, the overall effectiveness will depend on implementation and follow-up to ensure that law enforcement is engaged in the process, thereby increasing the potential threat to those involved in the commission of copper theft crimes and subsequent cash conversion of stolen materials," Turbyfill said. "When combined with more traditional security measures, property owners and managers have the greatest opportunity to deter criminal activity on their premises." The cost to implement Copper Guard is about $250 per building, depending on the size of the stencil, Turbyfill said. HUB is positioning the program as an investment that clients should strongly consider and is now including information about the program in marketing materials to attract additional commercial property owner clients. So far, several new clients have been drawn to HUB's Dallas office because of Copper Guard, Turbyfill said. "This is a situation that's driven by the current state of our economy; it's a leading-edge issue," he said. -- Katie Kuehner-Hebert
James Noble - Line of Business Director Zurich Financial Services Painting a Fuller Driver Portrait Telematics reporting tools track driver behavior and develop a preventative approach, not a punitive one, to lower claims frequency and severity. James Noble had an idea he'd been mulling since the early 1990s. Three years ago, he decided the time was right to bring his idea to the table. "From a risk management point of view, we've always looked in the rearview mirror, looking at accidents and violations as measures of performance," Noble said. "You were using failure to gain a view on failure." The updated method he proposed melded new telematics technology with a range of other data, including motor vehicle record data and the customer's own internal records to create a preventative approach. "Telematics allows a real-time look, which combined with historical data, creates a fuller portrait." Noble, who is a line of business director at Zurich Financial Services and has been with the company for 10 years, shared the idea with his colleagues and it soon created a lot of excitement within the organization. An 18-month development process ensued. Colleagues and outside experts joined in a rigorous creative process that generated numerous drafts. "It got to be a bigger product than we thought it was going to be initially because there is so much data that we could gather,'' Noble said. "Every time we turned the page we found something new. Part of that whole process was sifting through what was real and what wasn't from a telematics capability standpoint." The process resulted in the 2010 soft launch of Zurich Fleet Intelligence (ZFI), a system that combines vehicle telematics systems with extensive reporting tools to turn raw data into insights that help customers with a variety of tasks. Those tasks include reducing fleet operating costs, frequency and severity of vehicle crashes, and carbon footprints, along with increased fuel economy and insurance costs and improved employee driving skills.
Giving Drivers Feedback - Following this soft launch of ZFI, Noble and colleagues talked about the product with risk and insurance managers and at conventions, and let customers know it was coming. The product received its official launch earlier this year with announcements, advertising, and promotion through distribution channels. Zurich is rolling out the product to its customers around the world. "There are several telematics offerings in the insurance business, and motor fleet insurance in the future will be built around some of the matrices that come out of telematics,'' Noble said. "It's going to be very widespread. But no one is doing this as a total risk package. "What I was stressing in the development process was that we wanted to do this, not to skim the surface, but to dig down into what the customer was doing,'' Noble said. "That's part of what we do and what sets you apart." Noble said that the effect ZFI will have on how people drive for a living will be dramatic, as it "does completely change the playing field.'' "We know that telematics is a solid and a very effective tool for both reducing the frequency of accidents and reducing overall operating expenses," said Jim Breitkreitz, vice president of corporate client services in risk engineering. "The secret to making it work is that you've got to have management involvement. That is one of the things that separates what we do with telematics as to the way it is sometimes implemented.'' Though not a "silver bullet,'' fleet managers who use the tool for "continuous improvement,'' and companies in which management is engaged and giving drivers feedback will see this telematics innovation have an effect on lowering accident claims, Breitkreitz said. "It's not there to be used in punitive ways, and you need to explain this to employees,'' he said. "When employees see that the reason this monitoring is taking place is that the company is concerned about their safety, then their attitude changes.'' "It's very gratifying to see it out there, to see it working, and to understand that it has the potential to change the insurance industry and how we do things and change people's lives and how safely they operate their vehicle,'' Noble said. "When I think about my role in that, it's a very gratifying feeling." -- Lynn Rosen
Responsibility Leader®: Ed Katersky - Bestowing the Simple Gift of Engagement In his approach to liability claims stemming from the wholesale club's in-store operations, Ed Katersky, former assistant vice president for risk management with B.J.'s Wholesale Club Inc., took the concept of the early offer and advanced it. For a company that had taken its general liability claims administration in-house years ago, Katersky advanced his former employer's claims management and customer service goals by creating a system that called for almost immediate, personal responses to in-store injuries incurred by the club's membership shoppers. His response involved the creation of an electronic reporting system that confirmed the details of an incident within 24 hours. That was followed by rapid personal engagement with the injured party, which diffused the mistrust and miscommunication that can often lead to a claim. When Katersky felt the program had reached a plateau, he took it a step further by offering gift cards to wholesale club members involved in an incident. Claims costs declined yet again. Katersky is a Responsibility Leader® because he took the initiative in making good customer relations even better, when he felt there was room for improvement.
Responsibility Leader®: Jim Graff - A Contributor to Safer Schools Jim Graff, pool administrator for Arthur J. Gallagher & Co., has done his part to contribute to public education. At a time when school budgets are facing deep cuts, Graff found a way to contribute to the common good. He did so by examining the claims data, and then starting a matching grant program using the self-insured risk pool's surplus funds to pay for school equipment to make it safer for teachers and students. He succeeded on two fronts. For starters, the money was paid out of surplus and used to pay for step ladders to help prevent teachers from climbing on chairs and falling while reaching for books and reference materials stored high above their heads in classroom cubbies. The grant program also generated funds to buy floor mats and salt kits, which further reduced slip-and-fall injuries during frigid Midwestern winters. Graff's strategy was designed to reduce exposures to falls, and cut claims frequency. Within months, schools participating in the grant program saw reductions of between 15 percent and 55 percent in their slip-and-fall incidents. Graff was chosen as a Responsibility Leader® because he overcame budgetary restrictions to create safer working conditions in public schools.
Responsibility Leader®: Mike McMullen - Seeing the Light One of the major issues affecting the financing of solar projects has been the 25-year warranty provided by solar panel manufacturers. The warranties traditionally offered decreasing amounts of production through the life of the warranty. Without some sort of third-party warranty program, important solar and wind energy projects would not get built. But how do you develop a product that augments a 25-year warranty? Providing noncancellable, investment-grade insurance capacity for this sort of risk was something that had never been done before. Mike McMullen and his company assembled a world-class group of energy experts, underwriters and insurance program architects to create the only non-cancellable 25-year solar panel warranty. For McMullen, the innovation was about breaking new ground to cover new risks. McMullen is a Responsibility Leader® because the work he has done will benefit the entire wind and solar energy value chain, including original equipment manufacturers, project developers, maintenance and equipment contractors. And his work will help in lessening U.S. dependence on foreign oil, building a greener energy industry and economy.
Tom Hilgen - Senior Vice President Marsh Risk Consulting Dialing into the Touch Tone Companies utilize software programs to assess employee worksite problems, but it's the personal touch of the ergonomics professionals that make this program innovative. A global financial services company asked its key broker, Marsh Risk Consulting's Tom Hilgen, to help solve a problem: restructure its onsite ergonomics program to both lower its cost, and the escalation of workers' compensation claims for the company's leading recurring injury, muscular-skeletal repetitive-motion disorders. Hilgen's solution: a telephonic program manned by Marsh's ergonomics professionals to briefly interview affected employees about their workstation, equipment and habits. The experts then utilize a software program developed by Hilgen and his team to determine the root problem and corresponding solution. Any required equipment changes are purchased centrally with contract pricing, from a list approved by Marsh's team. While many companies utilize software programs to assess employee worksite problems, it's the personal touch of ergonomics professionals that make this program truly innovative, said Hilgen, a Marsh senior vice president. "Associates have a comfort level with this person, they know that this person knows their company, knows the work station and the equipment they are using, and they know that our consultants have experience in resolving issues," he said. "You get a lot more information about the associates' situation using a live person than just a computer program." The new system of early intervention has been extremely successful for the company. In the first half of 2011, the call intake system has processed more than 400 employee requests. In their initial complaints, employees reported an average discomfort of 6.7 on the scale of 1 through 10; after their evaluation and follow-up, these employees reported an average discomfort of just 1.5. Out of those 400 employee requests, only one required an additional onsite visit, and none resulted in a workers' comp claim. To date, the financial services company's return on investment has been almost 10 to 1, and employees are reporting that they are happier, more productive and more energetic, the company's risk manager said.
Getting Staff Feedback - A key element of Leisure's innovative approach and of his success is a keen understanding of human psychology. "This approach is measuring people's emotions," he said. Leisure wanted to make sure that, when injuries did occur, injured employees were attended to. "I was thinking there's a good percentage of our staff who are injured and we're thinking they'll be fine but no one is checking on them, and they're home thinking someone will reach out to them. If we didn't interact, they might run to an attorney. "It's building a bridge to make sure the staff member is OK, and we know how the accident happened so we can prevent future ones,'' he said. "We're pulling in all the people who matter: manager, claims adjuster, medical person. A lot of people have not had a positive experience with a claims experience--they think they're going to be a claim number." Instead, they now get personalized attention. "As a result, we have virtually no litigation against us," he said. With such dramatic results, what's next? "The low hanging fruit is gone," Leisure said. "I'm really focused on training. That's where we can take it to next level." His future plans include looking at "every piece of business," from purchasing to cyber risk, as well as training and the use of technology. All in all, this is a man who is proud of his successes, but not resting on his laurels. "I'm very passionate about what I do,'' he said. "I've been doing it a long time, and I still get excited every morning trying to figure out what I'm going to do next." -- Lynn Rosen
California bill would make baby sitters eligible for workers' comp - What happens if your baby sitter injures herself while carrying your child? In California, she would be entitled to workers' comp benefits under a proposal before the state Senate.
Giving Gift Cards - The second major advance achieved by Katersky and his staff was a novel notion, indeed. They recommended to senior management that BJ's gift cards be distributed, as part of the general liability resolution process to generate additional goodwill during a potentially frustrating time. "The gift card was seen as a victory by the member and it was a victory for us because there was no cash outlay like in a claim," Katersky said. "And we knew that when people got a gift card they would come back to the store, so now we're hitting customer retention." Katersky said that because people shop at the same BJ's club most of the time, he and his team didn't want to create a bad feeling between local management and the member, so they took the process away from the club. "That way the club didn't have to get into a fight with the member," Katersky said. "The club was not good at investigations, they were better at running stores. We would tell them when things were resolved and to please look for the member at the member's next visit." Another key ingredient in the gift card program, he said, was that a letter was sent with each gift card. "We did not ask for a release because then it became a claim and people would hire a lawyer to review the release and before you know it you would have more lawyers in this thing, which we didn't want," Katersky said. "So we took a position that these are relatively small dollar matters and we would try it without the release to see what would happen. And nothing ever happened, so it was great." Of some 400 events that occurred last year, 320 to 350 of them were resolved without incident. "Ed Katersky is an awesome risk professional," said Joanne Heslin, vice president of Willis of Massachusetts. "He's very bright. He likes to try new things. He's ahead of his time in many of the things he does. He's very good at forming partnerships. He very successfully trains people. We call him the professor." -- Steve Yahn
Tracking High-Profile Claims - Chatter automatically pushes the status of important projects, claims, incidents, legal matters and other topics out to risk management staff in real-time. They can comment on a claim, an incident, an occurrence or any other object in the system. Users choose which information to follow and which conversations to engage in. For example, users can follow a specific claim, which triggers automatic updates any time new information or new comments are added on that claim record. They can also choose to follow a dashboard or document attached to Chatter. If that dashboard is refreshed, or if a new version of the document is posted, they are alerted. System administrators also have controls over Chatter to limit access by certain people or groups, and users have controls to set up private groups among departments or teams. Jeff Rose, business project manager, risk management, for the state of Utah, said that as his department has implemented Chatter it has been able to find multiple ways to boost effectiveness and transparency, while reducing paperwork and work hours. For example, Rose said his department uses Chatter to track high-profile claims. Should a difficult claim arise, no longer does an adjuster need to gather the management team together for discussions, which might take one to two days depending on schedules. With Chatter, they send out a comment on what they have done or are going to do, and anywhere management might be with Web access, they can immediately follow the discussion. It amounts to a very accurate, and transparent, record. "The adjuster can work the claim and if there is a problem or something a particular manager needs to address, they direct the message through Chatter to the right person," Rose said. "It's actually speeding up how fast claims can be settled." Morrell also has developed a way that loss control can upload a document or picture via Chatter directly into the claim process, so a client gets instant knowledge on specific issues. "Unlike with email, you have the direct Chatter-generated data going into the claim file, creating a permanent record immediately," Rose said. "We have been using the system for only two months, but we've found Chatter to be a critical component to speeding up the claim system, loss control function and the overall efficiency of risk management for the state of Utah," he said. "That's why it's truly innovative. It is easy to use, and really makes us all more effective." -- Tom Starner
Job-Specific Approach - With Heller's guidance, SCE chose the WorkSTEPS program, which had a post-job offer testing approach designed to be job specific by matching workers' functional capabilities with the essential job functions. Among other things, WorkSTEPS also would certify SCE's in-house medical staff to be able to perform testing at corporate headquarters. As a success gauge, SCE used the metric of reduced and/or avoided injury costs. Since the pilot program launched in 2009, approximately 550 post-offer candidates have been tested (nine job candidates did not stay with the company as a result of testing). And while pilot expenses were approximately $96,000, the estimated savings relating specifically to reduced workers' compensation and/or disability claims and wage-replacement benefits totaled $800,000. "The thing that is important is Heller works in a highly regulated industry," said John Koval, an account executive with Sedgwick CMS, who works directly with Heller. "With that as the context, every program Heller tries to implement has to have oversight and approval. She not only has to sell it internally, but to regulators as well. That's a real challenge." Koval said that Heller's innovative nature, vision and willingness to take the risk associated with implementing a new program actually not only has saved the company money, but also has served to lower risk by supporting safety on the job. "Most of all, she recognizes that an employee's ability to safely perform the job is as much a job requirement as technical expertise," Koval said. -- Tom Starner
Trilateral Endorsement - Then, this year a Taffae client, Southwest Airlines, made a deal to buy AirTran Airlines, and hence had to provide the seller's outgoing directors and officers a six-year tail that was at least favorable to their existing coverage. Taffae found a second insurance carrier that underwrote a tail that was far more favorable than AirTran's existing policy. Then he created the first part of Trilateral Coverage®: an endorsement that was added to the second carrier's policy that stated that in no event would its policy be less favorable then the AirTran's existing policy by its first carrier. The endorsement also stated that the most favorable provision of the two carriers' will be utilized to determine coverage in case of a claim. Taffae then went a step further and included Southwest's carrier to that language, thus reducing the risk that Southwest would be named a co-defendant in any future claims. "Peter stepped outside the box and got the carrier to make a policy broad enough to cover both languages" of the existing policies, said Chris Thorn, Southwest's risk manager. "From a client perspective, the fact that an insurance company was willing to listen to Peter and actually explore this rather than just flat out denying it--that did it for me. Now I'm looking forward to doing more business with that carrier." Dan Bailey, a partner at Bailey Cavalieri LLC in Columbus, Ohio, who represents insurers in claims and policy negotiations, said that Taffae has always done a very good job representing insured companies, but in an "even-handed way." "Some brokers are hell-bent on getting everything they can for the client, but Peter sees the bigger picture, how it affects all parties of the transaction," Bailey said. -- Katie Kuehner-Hebert
Telecommuting: Changing Workers' Comp Terrain - With continued advancements in technology, telecommuting poses a viable and more widely accepted option for companies but at what cost to their workers' compensation programs?
Fight For Your Rights - Make sure your insurance companies don't profit from unfounded claims of fraud.
Did Worker Prove Entitlement to a Home Spa Pool? - Should the purchase of a spa pool be a covered treatment option?
Editor's Choice Stories: Sept. 13, 2011 -
People on the Move: Brokers -
R&I One : Sept. 13, 2011 -
People on the Move: Specialists -
Products: Sept. 13, 2011 -
People on the Move: Carriers -
Ohio may offer lower workers' comp premiums to encourage jobs - Employers considering expanding or relocation may want to look at Ohio. The Bureau of Workers' Compensation is mulling a plan to cut workers' comp costs in exchange for creating jobs.
CWCI: Temporary disability benefits exceeding pre-2004 reforms - The average amount of temporary disability benefits paid two years after the first payment exceeds the levels before legislative reforms were implemented. That's one of the findings of a report from the California Workers' Compensation Institute.
Commander fails to secure benefits for post-termination fainting - In Illinois, the stress of being laid off is a stress to which all workers are occasionally subjected. A worker's injuries resulting from such stress do not arise out of her employment.
Monte Carlo: Is the Industry Falling Off the Cycle? - Bankers crowd into the Rendez Vous and any talk of price increases is decidedly subdued.
OSHA announces 'DOL enforcement data 2.0' - Want to know what OSHA's up to these days? Check out the updated online enforcement database. It's part of the agency's commitment to open, transparent enforcement.
Company's knowledge of injury triggers liability for surgery costs - In Kansas, the designation of an accident date due to a repetitive use injury is not a factual determination of the precise moment at which the worker suffered the injury.
EEOC: Voluntarism central to ADA, GINA wellness program provisions - Employers offering financial incentives to increase participation in wellness programs should make sure such programs are voluntary, according to an Equal Employment Opportunity Commission expert.
Reading, Writing and the Risks of Slipping Through the Cracks - More rules and less money raise the risk for schools.
The Tuition Bubble - Are skyrocketing tuition rates a risk? Not judging by the academic construction market, which was soft at the end of 2010, but now gathers new momentum.
Running Out of Space - Pollution in space is a serious problem, leading to risk for satellite owners.
Business Impact Analysis Prepares College Campuses for Times of Crisis - Risk managers attest to its effectiveness
Comp court can't apply out-of-state laws to determine validity of contract - In Minnesota, the Workers' Compensation Court of Appeals has jurisdiction to determine whether an insurance contract provides Minnesota workers' compensation coverage under Minnesota law.
Mental Health Disorders and Injured Workers - Some medical professionals insist that occupational physicians are perfectly capable of screening for psychological disorders.
NCCI: Frequency increase drives need for higher rates in Florida - Employers could see their workers' comp rates increase by 8.9 percent in January. But representatives of the National Council on Compensation Insurance say it could have been much higher.
Scientist's stress can't be attributed to personnel decision - In New York, mental injuries that stem from an employer's lawful and good-faith personnel decisions involving a disciplinary action or work evaluation are not compensable.
Study: Low-cost screening test may lead to fewer fatigue-related crashes - More than 5,000 people are killed and another 100,000 injured annually in the U.S. in accidents involving large trucks and buses. Nearly one-third of the accidents are attributable to fatigue.
Successful surgery allows floater to change physicians - In North Carolina, an injured worker can change his authorized treating physician if he completed all of the conservative treatment ordered by the first doctor and the second doctor's treatment was beneficial in reducing his pain and lessening his impairment.
Contractor who provided equipment, lacked set schedule not an employee - In Arizona, in determining whether a worker is an employee, the totality of the circumstances is examined.
Colorado: Division touches up language for procedures - The Division of Workers' Compensation proposed revisions to rules of procedure.
This Week's R&I One® edition - In case you missed it, this week's R&I One®, features: Remembering 9/11; bird flu takes off; U.S. nuclear operators told to reassess quake risks; the God clause and the reinsurance industry; a broker agency reality check; why insurers are watching the YouTube copyright infringement case; and more.
Employers' costs for workers' comp is lowest in decades, NASI reports - The recession's impact on the workers' comp system is dramatically evident in the latest report from the National Academy of Social Insurance.
Smartphone app protects outdoor workers - Wondering what the heat index is for your employees working outside? A new mobile phone application has removed the guesswork.
California advisory board suggests rates remain generally unchanged - The California Department of Insurance is holding a hearing this month to consider the insurance rating bureau's recommended pure premium rate filing for January 2012. Despite upward pressure on costs, the Workers' Compensation Insurance Rating Bureau is suggesting rates stay where they are.
Top Court strikes down ban on rehab benefits for older workers - In Montana, workers eligible for Social Security retirement benefits may be able to receive rehabilitation benefits.
Breaking New Ground in Safety and Prevention - Ground Zero offers experts a unique opportunity to test new ideas and procedures in keeping workers safe.
Experts reflect on the workers' comp system on 10th anniversary of Sept. 11 - It's been a decade since 19 hijackers wreaked havoc with their terrorist plot to take down American lives, buildings, and airplanes. The Sept. 11, 2001, tragedy was and remains the worst terrorist attack on record, in terms of lives and insured property losses.
Essential functions defeat nurse's involuntary leave claims - An employer may place a worker on involuntary continuous FMLA leave so long as she has a serious health condition that prevents her from performing an essential function of her position.
Teacher strikes out on claim for benefits for softball game injury - In Illinois, an accidental injury occurring during a voluntary athletic event does not arise out of and in the course of employment.
Get a Broker Agency Reality Check - For every insured business and individual there are unlimited options. The future will be client defined and client driven -- not product and producer driven as it is today.
Insurance Coverages for Companies to Protect Against Hurricanes and Other Natural Disasters - Since we are in the teeth of the Atlantic storm season, risk managers should check their property and business interruption policies.
Marine - The concentration of cargo on tomorrow's huge container ships is rewriting the rules of ocean-marine transport. Click above to read more on this sector.
Furloughed worker denied wage losses, can't show connection - In Virginia, an injured worker who is furloughed must show a causal relationship between his incapacity and wage loss in order to be entitled to wage loss benefits.
Sea Changes Wash Over Marine Underwriting Corps - Cyclical and noncyclical changes promise to turn the marine market inside out--and generally for the better.
BERMUDA CLASS OF 2001 - The big five stand-alone survivors
Darkness at Noon - A heinous act plunges New York's financial district into chaos.
Heady Discussion Items - Tohoku quake, risk model change will weigh heavily in Monte Carlo discussions, but will they cause prices to spike?
Bermuda to the Rescue - The island nation redefined for the world in 2001 what it means to raise new capital in a crunch.
Cutting Edge Mixed With History - As Lloyd's of London nears 25 years of operating in its new building, the insurance market works to marry tradition with innovation.
Touring Sacred Ground - Reconstruction of the 16-acre site for the World Trade Center is well under way, and expects to open next year.
Fire-related fatalities doubled in 2010, according to BLS annual census - The number of work-related fatalities resulting from fires increased by 106 percent in 2010. According to the Bureau of Labor Statistics, the 109 fire-related fatalities among workers were the highest recorded since 2003.
Up From the Trenches - John Bender is poised to make Allied World Reinsurance a bigger player than ever and the growth is being built with discipline, dedication and good deeds.
Liberty Mutual vows to press on with anti-AIG settlement effort - An appeals court's denial of Liberty Mutual's latest attempt to prevent a $450 million settlement agreement between American International Group and other insurers is not deterring the Boston-based insurance company.
Finally Going Mobile - Mobile technology is a hot topic for the insurance industry these days, but most of the industry's focus so far has been on how to use it to reach consumers. Insurers have gotten on board with social media, setting up Facebook pages and Twitter accounts, and some have even created apps that allow customers to pay bills or file a claim from their smartphone.
Requisite Risk Knowledge - You don't hear a lot about innovation in risk management education or training because there doesn't seem to be all that much different being offered, or so some think. Before I address that fallacy, let's consider the importance of this issue.
Divided Over the Cause of the Clause - The U.S. Department of Justice has singled out "most favored nation" clauses as a potential roadblock to competition, but payers argue that these are a way to control costs.
Heave That Apprenticeship Model Overboard - Wrenching changes in the marine market are good for the industry.
Fine art coverage lessons from Ground Zero - The tenth anniversary of Ground Zero serves as a stark reminder to the fine art world of risk management lessons learned by that terrible tragedy in New York City.
Eurocrats Are Not the Answer - The main reason to have a European Union, we were told, was to cut down on the chances of another world war breaking out. So destructive has the European experiment proven, however, that World War III might have been preferable. At least someone usually wins wars.
Rendez-Vous With Horror Recalled - Monte Carlo participants look back at the Sept. 11, 2001 tragedy, a moment when reinsurance took a back seat to fear for colleagues.
Selling Carriers on Rebuilding Ground Zero - A risk manager makes it her mission to secure the insurance capacity necessary for reconstruction, leaving her mark on the most important reconstruction project in the United States.
Speaking the Language of Global Claims -
Texas: Amendments align health care rules - The Division of Workers' Compensation proposed amendments to rules regarding general medical provisions, pre-authorization, concurrent utilization review, and voluntary certification of health care.
Washington: Department seeks comments on new program - The Department of Labor and Industries is creating a stay at work program.
Darkness at Noon - A heinous act plunges New York's financial district into chaos.
The Mind-Body Connection - Psychology and the attitude of workers toward pain and their employment in general remain the great untested waters in workers' compensation.
Surplus of Marine Capacity Defies Rational Explanation - Why do insurers continue to enter the marketplace and battle for business they can't earn profit from?
The Man With Two Bodies - Ken Wilkinson was injured while working at Ground Zero on the cleanup. He was one of tens of thousands of workers at Ground Zero and other sites in lower Manhattan eligible for a cascade of medical and cash benefits. His story shows what can happen when America supersizes its response to disaster.
Disaster Losses Bring Bermuda Market's Importance to the Fore -
Judging Corporate Policies - Is there such a thing as a stupid policy? We have all been there, listening to customer service representatives citing frustrating corporate policies that do not address our consumer concerns or, ironically, do not solve any of their concerns either.
Claims Management (Part 1): Speaking the Language of Global Claims - Following a 12-hour flight to South Africa, the business traveler unlocked the door of the rented corporate apartment, headed to the bathroom and started filling the tub.
OSHA restructures antiretaliation program, updates manual - Employees who report workplace safety violations should feel confident they won't face retaliation. OSHA announced new measures to improve its Whistleblower Protection Program.
Rubber snake prank causes compensable neck injury - In Florida, an injury sustained by a victim of a prank may be covered if it occurred in the course and scope of her employment.
NIOSH announces community-based anti-needlestick campaign - An estimated 385,000 sharps-related injuries occur annually among health care workers in hospitals alone, exposing them to bloodborne pathogens. A new initiative focuses on raising awareness of the risks and trying to persuade workers to make changes necessary to reduce sharps injuries.
Undocumented workers is a hotbed issue for employers - Whether your state has laws specifically addressing injured undocumented workers or not, it behooves you to be aware of the issues, according to a legal expert.
Worker with schizophrenia can't show causal connection - In Mississippi, a worker claiming a mental injury stemming from a mental stimulus must show the injury was caused by something more than the ordinary incidents of employment.
The High Cost of Healthcare Reform - The healthcare reform law is placing added pressures on employers, as it adds direct and indirect costs to providing healthcare benefits to workers. "Employers need to look for creative solutions, because rising costs are not going to go away ... . If you want to continue providing healthcare benefits, you need to think outside the traditional box," an expert says.
Risk Managers with a Disaster Plan Best Prepared for Irene Onslaught - As many as 30 percent of small businesses have been shut down for at least 24 hours in the past three years because of natural catastrophes.
New York: Board applies new rates for detoxification care - The Workers' Compensation Board recently revised the reimbursement rates.
Nebraska: Vocational rehabilitation plan forms are revised - The Workers' Compensation Court revised the vocational rehabilitation plan form and the student instruction forms for job placement and formal training.
Technician not barred from asserting aggravation causation theory - In Ohio, an aggravation of a preexisting medical condition is a type of causation, so it is not a separate condition or distinct injury. Therefore, a worker can present evidence of this theory of causation on appeal even if it was not addressed administratively.
Driver's refusal of job offer curbs disability benefits - In North Carolina, an employer can show a worker is not entitled to disability benefits if he unjustifiably refuses suitable employment.
California: Pathology and clinical laboratory fee schedule change - The Division of Workers' Compensation adopted changes to the pathology and clinical laboratory fee schedule to conform to changes to the Medicare payment system.
Washington: Department issues inquiry on settlement agreements - The Department of Labor and Industries issued a preproposal statement of inquiry on the implementation of claim resolution structured settlement agreements.
Nurse's earning ability can't be based on snapshot of wages at one time - In Wyoming, to determine an injured worker's ability to earn a living, the worker's preinjury wages and work schedule, the nature of her injury and the resulting physical limitations, her postinjury employment history, and her postinjury employment prospects should be considered.
Tweet Smartly and Be Wary - I remember when I first started to hear the term tweet. It was early 2008 during the presidential race. I asked myself what in heaven's name is this Twitter everyone is talking about?
A Broken Model - It sat in the window of a Manhattan Goodwill store on 79th Street, near Broadway. Its original box was positioned at such an angle that you couldn't quite make out the contents, but I knew I had to buy it.
A Series of Fortunate Formations - Series captives are a newer structure, particularly suitable for smaller and midsize enterprises looking for an alternative risk transfer mechanism, without the costs of more traditional captive formations.
Hobgoblins of Risk - With banks hobbling around on one foot, insurers are taking far smaller pieces of each financial institution's risk.
Oregon: Workers' rights to choose health care providers - The Workers' Compensation Division created a rulemaking advisory committee to consider proposing rules on workers' rights to choose health care providers.
Work absence due to positive drug test isn't compensable - In Pennsylvania, a worker's absence that is unrelated to his work-related injury is not compensable.
Partial hand amputees benefit from i-LIMB technology - Technology that enables an amputee with a prosthetic hand to move individual digits is also being used for those who've lost individual fingers.
New York: Rates to increase 9.1 percent - Employers in New York will see their workers' comp rates increase as of Oct. 1.
Bionic hand becoming more acceptable in workers' comp system - An injured worker in Florida will be the beneficiary of new technology that is increasingly being seen in the workers' comp arena. The ruling should put employers and insurers on notice that they may soon see claims for the i-LIMB.
California: Medical mileage rate increases - The Division of Workers' Compensation announces that the mileage rate for medical and medical-legal travel expenses has increased.
Liability Questions Linger in Fatal Indiana Fair Stage Collapse - Who bears responsibility for the "freakish" weather condition that caused the collapse of a stage at the Indiana State Fair that left five people dead and dozens injured?
Efforts to reduce hearing loss nets award for researchers - Six researchers from the University of Washington have received an award for their efforts to reduce hearing problems among construction workers.
Driving taxi doesn't nix manager's status - In South Carolina, the primary consideration in determining when an employer-employee relationship exists is whether the employer has the right to control the employee in the performance on the work and the manner in which it is done.
West Virginia: Insurance official ponders rate drop - Employers in West Virginia may see their workers' comp rates decrease an average 8.1 percent in November.
Worker's termination doesn't prevent modification in benefits - In Kansas, a worker can be entitled to a modification of permanent partial disability benefits due to a wage loss without application of an abilities test.
OSHA directive seeks to eliminate underwater hazards - OSHA has revised its guidance aimed at reducing injuries, illnesses, and deaths among workers involved in diving and related support operations in the general, construction, and maritime industries.
Framer's illegal status doesn't defeat his claim for benefits - In Florida, an employer cannot use a worker's illegal status as a defense to avoid liability for disability benefits when the employer knew or should have known of the worker's illegal status.
Hospital's failure to provide care permits assistant to change doctors - In Virginia, an insurer's improper denial of further benefits constitutes a failure to provide medical care, which entitles a worker to seek out another doctor.
Commission member's receipt of workers' compensation derails suit - In California, a trip to attend a meeting may be considered travel on an employer's business and an exception to the going and coming rule, placing an accident during the travel inside the realm of workers' compensation.
Revitalized Victims Compensation Fund gears up to accept new claims - Workers previously compensated for injuries they suffered after the 9/11 tragedy may be eligible for additional payments. Draft rules for the new Victims Compensation Fund also expand the geographic area of workers covered.
Oregon: Division to work toward permanent rate for orthotic services - The Workers' Compensation Division issued temporary rules returning payment criteria for orthotic and prosthetic services to their pre-April 1 status.
This Week's WorkersComp Forum Update - Check out this week's WorkersComp Forum e-newsletter including: Cocaine use doesn't block death benefits for driver killed in fire; State roundup of rates, premiums and benefits; Florida construction industry codes get facelift; Using stewardship programs for best outcomes; and more.
Making out on a Breach - Insurance companies play during a claim like they hold all trumps. Here's how to recover all of your company's contract damages from an insurance company's breach.
Consider stewardship program to evaluate your claims and get best outcomes - Improving your workers' comp program for best outcomes should involve more than just looking at your claims each year, according to several experts. Companies that truly want to raise the bar need to make an honest, open appraisal of their programs -- warts and all. The best way to do it? An annual stewardship program.
State Roundup: Rates, premiums, and benefits - Illinois, Montana
Rhode Island: Charges for hospital services change - The Division of Workers' Compensation announces rate adjustments.
Peplowski officially named medical director for California state fund - After serving six months in an interim position, Dr. Bernyce M. Peplowski has been appointed the medical director for the California State Compensation Insurance Fund. The state fund's board of directors confirmed the appointment last month.
Employer must provide worker with i-LIMB hand prosthesis - In Florida, the i-LIMB hand prosthesis can be medically necessary to improve and aid in a worker's recovery.
Devising the Trilateral Solution - This groundbreaking D&O liability insurance solution made the Southwest Airlines and AirTran Holdings merger possible.
Cocaine use doesn't block death benefits for driver killed in fire - In Texas, nonexpert witnesses can testify as to whether a worker appeared to be intoxicated or impaired before his accident.
In India, an Appetite for Risk - When it comes to taking risk, India consumers are likely to take more risk than peers in other developing regional economies.
Florida: Construction industry codes get facelift - The Division of Workers' Compensation proposed revisions to a rule regarding construction industry classification codes, descriptions, and operations scope of exemption.
Groomer's failure to show need for care nixes depression coverage - In Arizona, if the medical testimony shows that a work injury aggravated a preexisting condition, the worker still must show that her preexisting condition was not medically stationary and that continued treatment would improve her aggravated condition.
Captives Post Higher Profits, Outlook 'Stable' - Experts point to tighter underwriting guidelines as a reason for outperforming traditional markets.
Toe transplant results in scheduled loss award for saw operator - In Ohio, a worker can receive benefits for the loss of two fingers and a toe after a surgical amputation and reattachment to her thumb because she was missing the digits after reattachment and recovery.
WorkersComp Forum Update: Aug. 11, 2011 - In this issue: Cancer still not covered for World Trade Center responders; OSHA considers measures to protect against infectious diseases; technician's lack of fraudulent intent creates liability for business; Illinois reforms could push outcome-oriented PPO networks into mainstream; study looks at use of pain medications by injured workers.
Legislative reforms are a 'step in the right direction,' attorney says - With the goal of combating rising workers' comp costs, six states have adopted legislative reforms. A workers' comp attorney says only time will tell whether additional reforms will be necessary.
Safety board blasts Florida's 'inaction' to protect public workers - Florida's failure to adopt a recommendation from a national chemical board is an "unacceptable response," said the U.S. Chemical Safety Board. The board said it is the first time a CSB recommendation issued to a state and its legislature has been closed for that reason.
Alaska: Reemployment benefits regulations take effect - The Division of Workers' Compensation repealed, readopted, and amended regulations concerning reemployment benefits.
Casino must rehire injured manager despite loss of gaming license - In New Mexico, employers who retaliate against workers for seeking workers' compensation benefits must rehire the workers.
Rep can't show blood donation at work caused fainting episode - In New York, if the claimant faints while giving blood or immediately thereafter or can show that her fainting was causally related to her donating blood, then her resulting injuries are compensable.
R&I One® Aug. 9, 2011 -
Editors Choice Stories: Aug. 9, 2011 -
A National Disaster Commission - The U.S. Senate again eyes a national commission on natural catastrophes.
People on the Move: Insurance -
New Product Announcements: Aug. 9, 2011 -
Thinking Outside the "SOX" Box - Report outlines ways for risk managers to tackle Sarbanes-Oxley requirements with more efficiency.
People on the Move: Brokers -
People on the Move: Specialists -
Technician's lack of fraudulent intent creates liability for business - In Wisconsin, an employer's refusal to rehire a worker because of the worker's alleged fraudulent scheme can be overcome by the worker's lack of intent to propose a fraudulent scheme.
WCRI study shows wide variations in narcotics prescribing patterns - Workers' comp participants may want to take a close look at a new report on the use of pain medications by injured workers. The lack of consistency among states reveals the knowledge gap in treating patients with chronic pain.
California: Hearing to cover regs regarding medical evaluators - The Division of Workers' Compensation proposed revisions to regulations regarding qualified medical evaluators.
WCRI narcotics study points up need for additional research - A study comparing narcotics prescribing patterns for injured workers in 17 states shows dramatic differences and signals the need for further study, according to the authors.
Cancer still not covered for World Trade Center responders - A National Institute for Occupational Safety and Health report says there is not enough evidence to link the collapse of the World Trade Center towers and the occurrence of cancer in responders and survivors.
Nebraska: Rules of procedure on interpreters could be amended - The Workers' Compensation Court proposed amendments to the rules of procedure.
Big Brokers Beat Expectations in Second Quarter - Foreign markets boost sales, but margins remain flat.
OSHA considers measures to protect against infectious diseases - Should OSHA develop a program standard to control worker exposures to infectious agents? It's a question the agency is considering as it reviews input from hundreds of stakeholders.
Summit to include top experts discussing top trends in comp field - The 2nd annual National Workers' Compensation Conference Executive Summit will discuss the hottest issues in the industry. This year's panelists are new to the summit.
CMS' delay doesn't justify penalties, attorney's fees for worker - In Louisiana, a worker cannot receive penalties and attorney's fees for a delay in payment that is completely out of the employer's control.
Do Higher Standards from a Supervisor Translate to a Successful Claim? - Facing stricter supervision at work and some nasty scuttlebutt sent a county employee off on medical leave.
Summer Break - Perhaps rest is the best way to create innovation.
An Attitude Problem - "Bad" attitudes can result in positive institutional change
Advance in benefits paid for hardship don't count toward 78-week limit - In Georgia, a lump-sum payment of future income benefits to prevent extreme hardship is not subject to conversion into weekly income benefits paid to compensate for lost income in calculating the statute of limitation on reimbursement.
Blanket attendance policies could cost employers millions - Employers that don't take reasonable accommodations issues under consideration in their attendance policies may find themselves facing expensive legal consequences.
Doctors' opinions of task loss supports benefits award - In Kansas, to establish task loss, a physician must opine that the injured worker lost the ability to perform a percentage of work tasks performed in the 15 years before the accident.
Connection between quadriplegia, heat stroke allows benefits - In South Carolina, every natural consequence flowing from a work-related compensable injury is also compensable unless the consequence is the result of an independent, intervening cause sufficient to break the chain of causation.
Oklahoma governor takes comp reforms to Illinois to attract businesses - It's not unusual for a governor to pitch businesses on expanding their facilities in a particular state. But it's not often a governor goes to another state to do so.
Liberty Mutual weighs actions after preliminary approval of AIG settlement - While AIG expressed optimism, Liberty Mutual was considering its next steps in the case against the insurer.
R&I One® Aug. 2, 2011 -
Editors Choice Stories: Aug. 2, 2011 -
People on the Move: Brokers -
New Product Announcements: Aug. 2, 2011 -
People on the Move: Consultants -
Lessons from Norway - Engagement with unidentified camp visitors is one of the first steps in a solid summer camp risk management plan. Holding regular drills is another.
New Jersey blood clot case raises questions for comp community - Should a worker with multiple health risks who died of a blood clot after sitting for many hours be awarded workers' comp benefits? Yes, according to a court in New Jersey.
Enlarging Property Insurance Appetite to XL or Beyond - XL Insurance is one carrier looking to increase its position in the primary property insurance marketplace, hopefully just in time for the start of the hard market.
Telecommuters pose added risks for employers - The case of the New Jersey employee who died after working in her home raises questions about off-site workers. The court awarded workers' comp death benefits to the spouse of a worker who suffered a pulmonary embolism after sitting at her desk for hours despite other health risk factors.
Eyewitnesses to Tohoku Earthquake Aftermath - Three insurance professionals recount their on-the-ground remembrances of the March 11 Japanese Tohoku earthquake.
Hard Times? - Massive first-half losses spark thoughts of reinsurance market firming.
Safety council warns of overexertion injuries - Employers spend an estimated $13.4 billion on 3.5 million overexertion injuries each year, according to the National Safety Council. The organization identifies it as the third leading cause of injury in the U.S. in its Injury Facts 2011 publication.
The Osborne Identity - A Scotsman jumps headlong -- and by "absolute accident" -- into the captive insurance business, turning the study of alternative risk into a thriving career.
Embrace Your CAT Models - Catastrophe models may only scratch the surface, but they're as close as any of us will ever get to the real thing.
A Carrier Draws a Line in the Sand - Zurich attempts to draw a line in the sand about where GGL policies end and network security risk policies begin.
Competing Where They Can - Smaller reinsurance brokers still thrive in an intermediary market dominated by the Big Three.
Technology In-Depth Series (Part 3): Making the Leap - Risk managers skilled at using risk management information systems are going to be able to ditch the mantel of safety expert/insurance buyer and transform themselves into a strategic member of the management team.
Fact or Fiction: The Greening of Insurance - Does climate change represent a risk or opportunity for property/casualty insurance? Is the "greening" of the economy fact or fiction? The answer to both questions is ¿ probably.
The Rewards of Precision - Three examples explain how managers can go beyond automation to apply precision to underwriting and policy management.
It's Monday Morning. Do You Know Where Your Workforce Is? - How to manage absences, save money and increase productivity.
The Dawn of Supply Chain Insurance - Japan's quake and tsunami are casting more scrutiny on supply chain exposures than ever.
Limited Supply - Supply chain coverage exists but at the moment there isn't enough capacity for major corporate risk managers.
An Urge to Eat a Modeler - Modelers have too much power over insurers these days and feed off it with more costly software updates.
Florida: Division sets assessment rates for 2012 - The Division of Workers' Compensation set the assessment rate for the workers' compensation administration trust fund for the calendar year of 2012.
Surveying Crewmembers of a Shrinking Ship - With a business community joined at the hip a hiccup in one market can influence the world economy.
Critical Facets of the New Hedge Fund D&O - Players still in the business face stiffer regulations and less friendly courts. But they also can enjoy a competitive insurance market with better terms and conditions.
Facing the 'Dark Side' of Captives Regulation? - A recent New York Times article called into question the regulation of captive insurance vehicles in onshore domiciles. We give a chance to these regulators to defend against these accusations about the dark side of captives, and discuss why changes are made to how they oversee the industry.
Managing Customer Data Breaches - Data breaches are not a matter of if, but when, for enterprises. To step up to the challenge, organizations will need to implement a risk management plan that employs more than the usual IT fixes.
How Many Ways to List the Benefits of Telework? - Flexible work arrangements are the future of business, according to proponents such as The Hartford, especially when it helps disabled employees return to work faster and more effectively.
Delay in treatment did not show store fraudulently concealed injury - In California, an exception to workers' compensation exclusivity exists where an employer fraudulently conceals the existence of the injury and its connection with the employment.
Massachusetts: Department spells out chronic pain treatment - The Department of Industrial Accidents proposed revised chronic pain treatment guidelines.
After Japan: The Causation Dilemma For CBI Coverage - Complex causation issues abound in contingent business interruption claims following a natural disaster, and many insureds may be surprised to learn the difficulties they face in proving that a covered peril caused their supply chain losses following Japan.
Alaska: Change of physicians regulation readopted - The Division of Workers' Compensation repealed and readopted a regulation regarding changes in physician.
Extremely hot weather prompts statement from Labor Secretary - Labor Secretary Hilda L. Solis issued a warning as a record heat wave swept much of the nation last month.
New Model Leaves Insurers Black and Blue - The true impact of a new hurricane model was a shock to the property insurance world, or was it?
Dialing up Success With Telework - Allowing flexible work arrangements for disabled workers offers employers plenty of benefits, including ways to update and improve their disability management and return-to-work programs.
Dialing Into Captive Profits - Corporations look to extended warranties and live to extend peace of mind to buyers because the premium collected is often way out of whack with the risk.
Beware of the Spike - Talk of a hard market is premature, even after $134 billion in insured catastrophe losses over the past 16 months. Welcome instead to the transitioning market where even property insurers might not be able to profit.
Out-of-state comp claim doesn't bar in-state liability suit - In Washington, a worker injured in another state can file a third-party claim in Washington if the suit does not require re-litigating issues already decided in a final determination.
They Told Us So - Long before a discipline called risk management, before anyone had figured out there was profit to be made from safety and prevention, prior generations warned us with clues.
Serial Deal Sealed? - Questions hinge around the understanding of a series captive model and the efforts at regulating it.
Teeing It up - USA Risk Group Inc. President Gary H. Osborne likes to tee it up with colleagues, but sometimes gets teed off as well when friends outmuscle him on the golf course.
Too Hot to Mention - Risk managers should review the service interruption clauses in their policies as the nation bakes under record temperatures and enters the season of rolling blackouts and brownouts.
The Hack Attack Worsens - Major Internet hacking cases have been grabbing headlines over the past few months, bringing the issue of computer network security front and center again and raising questions about just how vulnerable our computer networks really are.
Visionary Larson and the Law - Arthur Larson had a huge influence over workers' compensation during the second half of the 20th century.
The CATs Came Back in the Second Quarter - Analysts: Losses overshadowing premium growth
Are you ready for ETCOR? - Practitioners have been using the Total Cost of Risk as a key metric in the discipline for some time.
Financial Services Risk Report Table 2011 - A listing of some of the nation's top publicly traded financial services companies, their risk managers, brokers, captives and risk management programs.
Award Nominations -
Industry Events -
The 2012 Teddy Awards - The 2012 Theodore Roosevelt Workers' Compensation and Disability Management Award is looking for best programs.
Reinsurance: Casualty -
Financial Institutions - Financial-sector risk management has been tossed and shaken. Carriers no longer want large chunks of this business on their own and there is plenty of unease on the part of regional banks with a weak underlying economy and regulators breathing down their necks. Click above to read more on this sector, or view the industry risk table to see more information about the major players' exposures, brokers and risk management programs.
Reinsurance: Facultative -
Reinsurance: Analytics -
Reinsurance: Property -
Texas: Division might amend pharmacy fee guideline - The Division of Workers' Compensation is considering amending rules regarding the pharmacy fee guideline and pharmaceutical expenses incurred by the injured worker.
Washington: Wheels in motion to set rates for industrial insurance - The Department of Labor and Industries issued a preproposal statement of inquiry regarding industrial insurance premium rates.
California: Workers' comp saw underwriting loss of $1.6 billion in 2010 - California's 2010 calendar year direct earned premium totaled $9.7 billion, compared to $9.1 billion in 2009, according to the California Workers' Compensation Insurance Rating Bureau. Incurred losses and expenses were $11.2 billion.
Termination after injury, before filing for comp allows worker to sue - In Ohio, an injured worker can sue his employer for wrongful discharge in violation of public policy if the worker was terminated after he was injured on the job but before he filed a workers' compensation claim.
OSHA proposes changes to tracking, reporting requirements - Nearly 200,000 establishments would be added to the list of those required to record occupational injuries and illnesses under revisions to OSHA's recordkeeping and reporting rules. That's one of the changes on which the agency is seeking public comment.
Accident in personal vehicle, outside parking lot doesn't foil benefits - In Louisiana, a worker injured while not on the employer's premises while traveling to or from work can receive benefits if he shows a distinctive travel risk exists and the risk is immediately adjacent to his workplace.
Worker can't claim comp for wipeout on bicycle while avoiding rabbit - In Illinois, where a worker fails to prove that his risk of injury is not any greater than that faced by the general public, his injury is not compensable.
Joint declarations aimed at protecting Guatemalan, Nicaraguan workers - Labor Secretary Hilda L. Solis said joint declarations will help protect the rights of Guatemalan and Nicaraguan citizens who work in the U.S. Solis signed the declarations along with the Guatemalan and Nicaraguan ambassadors.
25 Points on Your Claims System: Part 2 - Here's how to ensure you meet all of the system business requirements for your next claims solution, in 15 additional steps.
Announcing the 2011 Reinsurance Power Broker® Winners - We've done it again this year: recognized the top reinsurance intermediaries, both teams and individuals. Check out all four categories of winners here.
Voluntary work not related to business curbs claim against neighbor - In Tennessee, evidence that a worker was performing voluntary work as a personal favor that was not business-related shows that the worker was a casual employee not entitled to workers' compensation.
Advice from a workers' comp attorney - A summary judgment issued in the District Court of Arizona effectively suspended Medicare's ability to issue Final Demand Letters seeking reimbursement from the proceeds of settlements under the Medicare Secondary Payer provisions. As Medicare revises the language in the letters, litigants are left wondering how to proceed.
Trip on raised door threshold during break gets 2nd look - In Virginia, in applying the actual risk test, the commission should determine whether a worker's risk of injury was peculiar to her job and not one which the general public was equally exposed.
Medical evidence doesn't support obesity as part of work injury - In Pennsylvania, unequivocal medical testimony is necessary to establish a causal connection between an injury and a work-related cause.
Wholesalers Battered from All Sides - Mergers among wholesalers, shrinking excess and surplus lines premium volume and a new stringency by retailers make for some tougher times in the wholesale brokerage business.
Case, Congressional Hearing May Shape Future of Medicare Secondary Payer Act - Workers' comp payers are getting a slight break thanks to a recent court ruling in a Medicare Secondary Payer case. At the same time, a congressional panel heard industry representatives testify in favor of a proposal many say will help streamline the process.
Goodman Swings, Holiday Sings - A legendary jazz collection could end up having much more value once copyright laws are satisfied and the recordings can gain wider release.
Florida: Division seeks to update manual, certification requirements - The Division of Workers' Compensation proposed to adopt the 2010 version of the workers' compensation reimbursement manuals for health care providers and ambulatory surgical centers.
Another State, Wisconsin, Considers Adding High-Deductible Health Plans to the Menu - More than 20 states offer such plans to employees, and in 2010 more than 70 percent of Indiana's 30,000 state workers chose high-deductible plans linked to health savings accounts.
Massachusetts: Department defines use of massage therapy - The Department of Industrial Accidents clarified the use of massage therapy in the treatment of injured workers in hospital settings as well as outpatient settings.
Oregon: Deadline for comments is fast approaching - The Workers' Compensation Division proposed changes to rules that would require workers' compensation insurers and self-insured employers to report to the director e-mail addresses for their organizations and any service companies, such as third-party administrators, that service their claims.
NCCI: 2010 was good for workers' comp residual market administration - The residual market share of the total workers' comp insurance market is 3.5 percent in National Council on Compensation Insurance states. The Florida-based rating agency says that's the lowest level since 2000.
Alaska: Board might extend fee schedule - The Workers' Compensation Board is considering extending the medical fee schedule.
Federal government seeks to take workers' comp off 'autopilot' - As many state legislatures are looking at ways to revamp their workers' comp systems, a similar move is afoot at the federal level. Earlier this month a congressional committee passed legislation to overhaul the federal workers' comp program -- the first such action in nearly 40 years.
Third-party administrator's 1-day delay entitles worker to incapacity benefits - In Maine, an employer has 14 days to file a notice of controversy of a worker's claim even if the worker did not suffer an actual loss of earnings from the injury.
OSHA website takes the guesswork out of recordkeeping rule - If you've ever wondered whether a particular injury or illness needs to be recorded or which provisions of the OSHA regulations apply, you'll appreciate a new website. OSHA's interactive tool is aimed at helping employers better understand and comply with federal recordkeeping and reporting requirements.
Positive drug test doesn't block benefits for 'freak accident' - In Louisiana, a worker who is intoxicated at the time of his accident can recover benefits if the accident was a "freak accident," the worker did not appear intoxicated at the time, and he could not have prevented the accident.
Risk of work environment existed when decorator tripped over dog - In Oregon, in order for an injury to arise out of employment, it must result from a risk connected with the nature of the work or the work environment.
WCRI study highlights variations in narcotics use among comp systems - Many physicians who prescribe narcotics for injured workers have not followed medical treatment guidelines for monitoring their patients, according to a new study.
Seeing a Comp Claim to Its Rightful End - An employee contends a work-related eye injury led to total loss of vision. But did he lose enough vision to receive such compensation?
When the Birds Bring Down the Planes - Will a garbage-transfer station under construction in Queens add to the number of bird strikes at LaGuardia Airport, airport of origin for the "Miracle on the Hudson"?
Immunity Bites ... for Shark Victims - Barring gross negligence, municipalities are likely to win if victims of shark attacks sue local authorities for an attack off their shores.
Benefits blown away for worker on smoke break - In Arkansas, a worker injured during her break must show that she was advancing the interests of her employer at the time of her injury in order to receive benefits.
Temporal connection fails to connect chemical exposure, symptoms - In Idaho, a temporal connection between a worker's symptoms and a chemical exposure at work alone does not establish causation.
Illinois, Washington, Pennsylvania governors sign workers' comp laws - Saying it would help Illinois' employers reduce their workers' comp premiums by a "huge amount," Gov. Pat Quinn signed H.B. 1698. The legislation is aimed at reducing one of the nation's most expensive workers' comp systems.
Florida: Drug strike force battles 'prescription drug pipeline' - Florida's notoriety as the nation's pill mill capital may end soon. At least, that's what state officials are hoping as they implement measures in accordance with recently adopted legislation.
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
Top Five Spectator-Related Risks at Professional Ballparks - The death of Shannon Stone at Texas Stadium represents the worst case facing sports industry risk managers, but these other spectator exposures keep them busy every game.
Longtime Workers' Comp Practitioner to Discuss Industry's Hot Topics - One of the most respected--and controversial--voices in workers' comp these days is that of Joe Paduda. A principal of Health Strategy Associates, Paduda has 20 years of experience in managed care and insurance.
Mr. Clean - Bank of America promotes its cleanser of the Countrywide Financial Corp. subprime portfolio to chief risk officer. The question is: Can one man, or department, handle the risks of a large financial services firm?
Lack of return to work release from physician fails to prove disability - In North Carolina, a finding that a physician never released an injured worker to return to work is insufficient to establish disability.
Study shows need for compliance with pesticide drift regulations - Hundreds of workers may unnecessarily suffer from exposure to pesticide drift, according to a new study. The findings suggest the need for employers to use proper prevention measures and comply with pesticide regulations.
Declare Independence - Have chief audit and risk executives declared independence from their enterprises? And if they have, can other employees do the same?
Florida: Rule would clarify mandatory reporting - The Division of Workers' Compensation proposed a rule regarding mandatory carrier reporting.
Oregon: Change in average weekly wage affects benefits - The Workers' Compensation Division announced that the state's average weekly wage is $842.52, effective July 1.
Lack of causation opinion from doctor blocks claims - In North Carolina, without a doctor's opinion that a worker's injury was causally related to a work incident, it will be difficult for a worker to show he is entitled to compensation.
Musculoskeletal disorders column still on OSHA's agenda - OSHA reopened the rulemaking record to allow comments regarding the recordkeeping regulations on musculoskeletal disorders.
General partnership not immune from worker's suit - In New Jersey, a worker can sue a general partnership after receiving workers' compensation benefits from her employer, a partner in the partnership.
Washington: Department questions classifications for comp insurance - The Department of Labor and Industries issued a preproposal statement of inquiry regarding amendments to general reporting rules and classifications for workers' compensation insurance.
New York: Loss cost calculation in the works - The Insurance Department is considering the application of the Compensation Insurance Rating Board for a workers' compensation loss cost increase of 10.4 percent.