Risk & Insurance articles from August 2008

Risk & Insurance archives from August 2008

Sox, coso fall short.(LETTERS TO THE EDITOR)(Letter to the editor)
August 1, 2008... Dear Editor, I applaud your candor and accurate depiction of the travesties that one must endure in the industry sector as a result of these infrequent catastrophic, albeit not cataclysmic, failures (Risk & Insurance [R], Roger on Risk...

People, not guns, at issue.(LETTERS TO THE EDITOR)(Letter to the editor)
August 1, 2008... Dear Editor, In answer to all the examples you gave (Risk & Insurance[R], Counterpoint, May 2008, Page 42), if an armed citizen had been present at the time of those tragedies, none would have been as bad. If the people had not had...

Meeting the Provost.
August 1, 2008... Cyril Tuohy MANAGING EDITOR David F. Provost, the new, lowkey and understated deputy insuranee commissioner for captive insurance in the Vermont Department of Banking, Insurance, Securities & Health Care Administration, won't have to yell...

Integrating vendor services to keep employees healthier and on the job.(IN-DEPTH SERIES)
August 1, 2008... An employee at a large company is enrolled in a disease management program to help control her diabetes. But when her condition worsens suddenly, the employee is hospitalized and requires acute services that are beyond the health education and...

Drugs and numbers.(IN-DEPTH SERIES)
August 1, 2008... A recent report's most striking revelation is that state legislatures that are passing laws mandating the use of generic medications over brand-name medications are fooling themselves if they think they are going to reduce pharmacy costs with...

Best practices with PBM vendors.(IN-DEPTH SERIES)
August 1, 2008... Risk Managers may achieve greater control over costs and administration by internally staffing claims, depending on their scale and scope of operations. When it comes to pharmacy benefits management, the cost disadvantage may outweigh the...

The ways of the SMB wise.(SMB)
August 1, 2008... From tailoring existing products to developing new ones from scratch, from tailoring an approach commonly used with larger commercial customers to adopting a quasiretail mindset, from adapting existing databases to converting that data to...

Creating a culture of wellness.(HEALTHCARE)
August 1, 2008... While helping people become healthier can produce a big payoff, many companies don't recognize the important role they can play in creating a culture of wellness in the workplace. Having a wellorganized effort is essential, as piecemeal...

Wall Street freeze out: class-action suits mount in the wake of a spring freeze on auction-rate securities.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
August 1, 2008... April showers ended up watering not just the usual May flowers but a jungle of class-action lawsuits alleging malfeasance in the selling of auction-rate securities. No fewer than eight such suits were filed in May alone, according to the...

2009: a bummer? P/C executives say plenty to worry about.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
August 1, 2008... In the wake of a historically profitable 2006, another good year ensued, though a long-anticipated and significant downturn in pricing began to develop by midyear 2007. It's a slide that continues and is likely to continue for some time. ...

Quote of the month.(UPFRONT: News Update and Other Emerging Strategies from Around the World)
August 1, 2008... "There is an awful lot of knowledge that is contained in the brains of long-time claims people that is probably just as effetive as some computer programs." --JOE PADUDA, A MADISON, CONN.-BASED HEALTHCARE CONSULTANT

Retail blindness: retailers are lagging other sectors in their weather risk vision.(UPFRONT)
August 1, 2008... "Corporate America has a new, keen focus on risk management. Unfortunately, it also suffers from a blind spot," said Jarvis Cromwell, chief marketing officer of Storm Exchange Inc. [ILLUSTRATION OMITTED] Cromwell was presenting...

Adjusting to the new model of risk-based exams: carriers are in for big changes in the way regulators review their internal controls as examiners shift from rules to risk.(UPFRONT)
August 1, 2008... [ILLUSTRATION OMITTED] Out with the old... and in with the new, at last. The next couple of years are bringing some big changes in the way examiners are going to look over the books of insurance carriers as regulators move from a...

Playing hardball in a soft market: brokerage CEOs chime in on how to negotiate commissions with their carriers during a tough market.(BROKERS: People, Ideas and Trends shaping the Brokerage Community)
August 1, 2008... At the Standard & Poor's annual insurance conference in New York three brokerage executives swapped thoughts on the state of the market, negotiating higher rates and compensation commissions. The three, all CEOs, were John Howard, Crump Group;...

Quote of the month.(BROKERS: People, Ideas and Trends shaping the Brokerage Community)
August 1, 2008... "We're relentless at negotiating." --MARTIN HUGHES, CEO, HUB INTERNATIONAL, ON OBTAINING HIGHER COMMISSION RATES FROM CARRIERS DURING A SOFT MARKET

Willis Nabs HRH.(BROKER NEWS & NOTES)
August 1, 2008... In one of the brokerage world's biggest moves in recent years Willis Group Holdings Ltd. announced plans to purchase Hilb Rogal & Hobbs Co. for $2.1 billion by the end of the fourth quarter. Willis hopes to see significant increases in its...

CIAB in Sin City.(BROKER NEWS & NOTES)
August 1, 2008... For the first time in 85 years, the Council of Insurance Agents & Brokers will hold its Insurance Leadership Forum in a location other than the Greenbrier resort in White Sulphur Springs, W.Va. Due to prolonged labor problems at the Greenbrier,...

Gallagher buys benefits firms.(BROKER NEWS & NOTES)
August 1, 2008... Arthur J. Gallagher & Co. has recently acquired two employee benefits brokerage firms: The Lance Group LLC of Marlton, N.J., and Voluntary Benefits Solutions LLC of Troy, Mich. While both firms were established in 2002 and offer employee...

Brown gets bigger.(BROKER NEWS & NOTES)
August 1, 2008... Brown & Brown Inc. has acquired Alpha Benefits Group Inc. of Plymouth Meeting, Pa. The employee benefits broker has annualized revenues of approximately $5 million and primarily offers individual and group employee benefits insurance products...

Marsh acquires claims services.(BROKER NEWS & NOTES)
August 1, 2008... Marsh has acquired the claims and dispute resolution business from consulting firm Nielsen-Wurster. The acquisition is designed to enhance Marsh's construction dispute and advisory capabilities with the firm's Forensic Accounting and Claims...

The insurance entrepreneur.(WORKERS' COMP)
August 1, 2008... "Everyone who believes in the normal distribution of risk will be destroyed if she or he lives long enough," so a property/casualty actuary told me recently. Readers, take heed. We are in a balmy season of the market where it is difficult...

The whacky world of Wiki.(ROGER ON RISK)
August 1, 2008... Wakipedia is an online resource, written by drunks and public relations people. It purportedly covers all subjects, as an encyclopedia would, but the only thing Wakipedia has in common with proper works of reference is its consistency:...

A federation of angst.(BROKERAGE)
August 1, 2008... The decades-long debate over whether the insuranee business should be regulated by the states, the U.S. government or both seems at long last to be coming to a head and moving inevitably in the direction of some federal role in the industry's...

Built to perfection.(RISK MANAGEMENT)
August 1, 2008... Picture that vulnerable moment, sitting helplessly strapped in our chairs. We wait. The drink cart has made its final round, the cabin has been cleared and signals are turned on, and we wait. We wait for this 100-ton bird to coast to the...

Court pro business? Not so fast.(THE LAW)
August 1, 2008... A highly watched Supreme Court case has added uncertainty to the finality of insurer-administrators' employee benefits denials. Ending its 2007-2008 term, a divided high court ruled that an insurer that both decides and pays benefits has a...

When less means more: middle market corporate risk managers face a soft market quandary: cover new exposures or bank the savings. Higher limits and better terms are also on the table.(INDUSTRY RISK REPORT: MIDDLE MARKET)
August 1, 2008... [ILLUSTRATION OMITTED] For risk managers of middle market companies, softening insurance pricing may seem like the one bright spot in a generally gloomy economic muddle. Much like politicians two decades ago debated what to do with the...

Pinning down principles: this year, CICA unveiled first-ever captive best practices after consulting regulators, owners, operators and experts. More of a process than a document, CICA has opted for more informal guidelines rather than the codifications offered by formal standards such as ISO 9000.(SPECIAL REPORT: CAPTIVES)
August 1, 2008... [ILLUSTRATION OMITTED] The most important thing to know about the Captive Best Practices Guidelines from the Minneapolis-based Captive Insurance Companies Association is that they are not a checklist. They are not rules or oversight. It...

The comp profilers: predictive modeling helps workers' comp carriers improve care quality and contain costs, but questions linger on efficacy.(Cover story)
August 1, 2008... First in a Three-Part Series The science of predictive modeling holds promise for workers' comp carriers and employers as a way to stem the soaring medical costs of injured workers. Predicting which claims are likely to develop into...

Doing mental healthcare right the first time: employers are paying more attention to the impact mental illness can have on the bottom line, but determining the causes of many such illnesses merits a more muscular approach.(HEALTHCARE)
August 1, 2008... [ILLUSTRATION OMITTED] Employee mental health affects the bottom line and the culprits are many. Stress disability rates have been growing and mental health is also the leading cause of prolonged disability in people with a physical...

Acting big but thinking small: big carriers, geared toward larger companies, may discover they are out of their element when seeking opportunities in the small business marketplace.(INSURANCE)
August 1, 2008... [ILLUSTRATION OMITTED] Is small business a logical market extension for major commercial insurance carriers or a different space where few of their strengths apply? That critical question is increasingly surfacing as commercial carriers...

The flattening world of front and back: while the front office technology list remains the same, policyholder profiles, buying habits and expectations are changing. A pair of writers challenges the industry to execute the right technology decisions.(TECHNOLOGY)
August 1, 2008... [ILLUSTRATION OMITTED] With the expanding role of the Internet and self-service, the differentiation between the insuranee front and back offices is becoming muddled. Along with the blurring of the insurance process lines comes the...

Directory: captive/self-insurance.(Directory)
August 1, 2008... CAPTIVE/SELF-INSURANCE Below are paid listings of service providers to the captive and self-insurance industry. This guide is not intended to be a complete directory. Service providers themselves have provided this data. To obtain more...

Upcoming events.(Calendar)
August 1, 2008... AUGUST 10-13 DMEC Conference The Disability Management Employer Coalition has focused its annual conference around the theme "Scaling New Heights: Reviewing the Past, Discussing the Present, Defining the Future." This event is...

American International Group Inc.(EXECUTIVE MOVES)
August 1, 2008... American International Group Inc. has named Chairman ROBERT B. WILLUMSTAD to the additional position of CEO, effective immediately following the ousting of Martin J. Sullivan, a 37-year veteran of the company. Willumstad has been chairman of...

AIG.(EXECUTIVE MOVES)
August 1, 2008... AIG recently named RICHARD H. BOOTH to the new position of senior vice president and chief administrative officer. Booth will have responsibility for AIG's Global Operations and Systems, Corporate Administration, Research and Development,...

ACE Global Markets.(EXECUTIVE MOVES)
August 1, 2008... ACE Global Markets has named MATTHEW SHAW chief underwriting officer. Shaw was also named chairman of ACE Tempest Re Europe, where he was previously managing director. ANDREAS LEWIN was named Shaw's successor as managing director at ACE Tempest...

Willis International Holdings.(EXECUTIVE MOVES)
August 1, 2008... Willis International Holdings appointed MARGO BLACK as the chief executive officer for their reinsurance operations in Brazil. Black joins from Allianz Brazil where she was the main board director responsible for the insurer's Global and...

Broadspire.(EXECUTIVE MOVES)
August 1, 2008... Broadspire has announced that KENNETH F. MARTINO JR., who has been president since 2007, assumes the additional responsibilities of chief executive officer. DENNIS REPLOGLE, currently chief executive officer, has become chairman. In addition,...

Sedgwick Claims Management Services Inc.(EXECUTIVE MOVES)
August 1, 2008... Sedgwick Claims Management Services Inc. appointed TRACIE WEICKENAND as national utilization review director. After first joining the company in 2003, she most recently served as manager of Sedgwick CMS's central utilization review unit in...

GAB Robins North America Inc.(EXECUTIVE MOVES)
August 1, 2008... GAB Robins North America Inc. has hired PAULA MAYERS STYLES as director of learning and organizational development for North American operations. Mayors Styles comes from Horizon Blue Cross Blue Shield of New Jersey, where she served as a...

Dempsey Partners.(EXECUTIVE MOVES)
August 1, 2008... JILL DALTON has joined Dempsey Partners as managing director of the firm's New York office which provides insurance claims preparation and forensic accounting services. Dalton worked at Marsh since 1985 and most recently served as managing...

Travelers Cos. Inc.(EXECUTIVE MOVES)
August 1, 2008... The Travelers Cos. Inc. has promoted Chief Operating Officer BRIAN W. MACLEAN from executive vice president to president. As president and COO, MacLean continues overseeing the company's business units. [ILLUSTRATION OMITTED]

U.S. Risk Insurance Group Inc.(EXECUTIVE MOVES)
August 1, 2008... U.S. Risk Insurance Group Inc. has named MARK J. SICELOFF senior broker of U.S. Risk Brokers. Most recently, Siceloff was the property practice leader with Energy Risk Associates Inc. in Dallas. [ILLUSTRATION OMITTED]

Hartford Financial Services Group Inc.(EXECUTIVE MOVES)
August 1, 2008... The Hartford Financial Services Group Inc. has appointed SEAN M. FITZPATRICK to senior vice president of its middle market insurance segment. Fitzpatrick joined The Hartford in 2007 as senior vice president of strategic business development....

Reinsurance: a risk transfer weapon of tomorrow: for primary carriers, reinsurance is a secure, efficient way to transfer risk that has no equal in financial services.(POINT)
August 1, 2008... Arguing that reinsurance companies are obsolete and that their importance to the world's primary insurance markets can be discounted is a little bit like arguing that most major league rosters would be better off without that 35-year-old...

Reinsurance: mired in the past and ripe for reform: a traditionalist's tool, reinsurance doesn't offer much new in a world exploding with ART mechanisms.(COUNTERPOINT)
August 1, 2008... The way reinsurers do business is in need of reform. I mean, really, do hush-hush reinsurance discussions held behind locked-door meetings in hotels with grandiose names located in postage-stamp nations brimming with tax weasels and choking on...

New order aglow with promise: reinsurance brokers these days, while still placing a premium on maintaining good relationships, are managing ever more sophisticated analytical machinery.(2008 REINSURANCE POWER BROKER)
August 1, 2008... [ILLUSTRATION OMITTED] Successful reinsurance brokers in the 21st century will not be those who just sip champagne or drink cup after cup of espresso entertaining dozens of clients at the Card de Paris in Monte Carlo at the annual fall...