Risk & Insurance articles from December 2003

Risk & Insurance archives from December 2003

Expansionist NRRA butts heads with NAIC.(up front)
December 1, 2003... After nearly 20 years of successful operation, it's time for risk retention groups to flex their muscles and move on to the next level. That's the consensus among members of the National Risk Retention Association, which convened in Washington,...

Starring: the risk manager.(up front)
December 1, 2003... [ILLUSTRATION OMITTED] Caption: Actor Gordon Little interviews a real-life risk manager in one of the current commercials airing for Campbell's "Soup at Hand."

Worth repeating ...(up front)
December 1, 2003... "Nothing ruins a good opinion like the facts." Attorney Skip Myers of Morris Manning & Martin, general counsel of NRRA. "I wouldn't say it's fun-and-games time in the aviation industry." Rick Price, risk manager, Delta...

Outrage-of-the-month: felonious assault.(up front)
December 1, 2003... John Pruchnicki, a $36.46-an-hour foreman for the City of Chicago's Bureau of Electricity, had been on disability leave for three months because he claimed he suffered "hand injuries" on the job that made him unable to work. Reportedly, he had...

From the editor.(up front)
December 1, 2003... At an October Conference Board program on enterprise risk management, it was clear that the best thing that has happened to the risk management profession was the corporate scandals of a few years ago. In the wake of those scandals, Congress...

Energy industry foibles divide Europeans.(up front)
December 1, 2003... A bitter international row flared in October after a catastrophic power failure that plunged Italy into darkness, left France, Switzerland and Austria blaming one another for a blackout that extended from Sicily to the Alps and affected 57...

FERMA 2003: social responsibility joins the risk menu.(up front)
December 1, 2003... European risk management is ready to tackle the issue of corporate social responsibility. But how many of Europe's risk managers are prepared to confront it? This was a leading question at October's biannual Forum in Rome of the Federation...

Alliant Resources Group Inc. has completed a $160 million senior credit facility, the firm has announced.(News and Notes ...)
December 1, 2003... [check] Alliant Resources Group Inc. has completed a $160 million senior credit facility, the firm has announced. Participating lenders are GE Capital as administrative agent, Credit Lyonnais and Madison Capital Funding LLC as joint lead...

Willis Group Holdings Ltd. has bought the assets of River City agency LLC, an insurance agency located in St. Paul, Minn.(News and Notes ...)
December 1, 2003... [check] Willis Group Holdings Ltd. has bought the assets of River City Agency LLC, an insurance agency located in St. Paul, Minn. River City Agency is a specialized insurance broker dedicated to serving the needs of the local construction...

Kemper Services has unveiled its new name and corporate identity: Broadspire.(News and Notes ...)
December 1, 2003... [check] Kemper Services has unveiled its new name and corporate identity: Broadspire. The name Broadspire was chosen to reflect the company's defining characteristics: the company's heritage as an industry leader in service quality, the breadth...

The U.S. property/casualty industry's net income after taxes rose to $14.5 billion in first-half 2003 from $4.4 billion in first-half 2002, as both underwriting and investment results improved.(News and Notes ...)
December 1, 2003... [check] The U.S. property/casualty industry's net income after taxes rose to $14.5 billion in first-half 2003 from $4.4 billion in first-half 2002, as both underwriting and investment results improved. Reflecting the industry's income and...

The Maine Software Developers Association has named Allenbrook Inc. Company of the Year at this year's Maine Technology Awards Gala.(News and Notes ...)
December 1, 2003... [check] The Maine Software Developers Association has named Allenbrook Inc. Company of the Year at this year's Maine Technology Awards Gala. The award honors Maine companies that exhibit long-term growth, have a positive impact on the software...

Liberty Mutual UK has expanded its operations in Europe by establishing a new office in Cologne, Germany and expanding its office in Paris, France.(News and Notes ...)
December 1, 2003... Liberty Mutual UK has expanded its operations in Europe by establishing a new office in Cologne, Germany and expanding its office in Paris, France. The company recruited former Gerling D&O executive Hansjurgen Fakler to head its German...

A.M. Best Co. has downgraded the financial strength ratings to A+ (Superior) from A++ (Superior) of Swiss Re, Switzerland, and its core subsidiaries, the agency has announced.(News and Notes ...)
December 1, 2003... A.M. Best Co. has downgraded the financial strength ratings to A+ (Superior) from A++ (Superior) of Swiss Re, Switzerland, and its core subsidiaries, the agency has announced. At the same time, A.M. Best has also downgraded the ratings on all...

NCCI Holdings Inc. captured the Pinnacle Award at the recent South Florida Technology Awards sponsored by The South Florida Business Journal.(News and Notes ...)
December 1, 2003... [check] NCCI Holdings Inc. captured the Pinnacle Award at the recent South Florida Technology Awards sponsored by The South Florida Business Journal. The Pinnacle Award recognizes products and services that have demonstrated enduring value....

Simpler isn't always better.(Property)
December 1, 2003... Insurers introduced simplified commercial lines forms about 15 years ago, and business income coverage has been giving risk managers headaches ever since. The problem is that cleaning up the forms made them harder to understand. Addressing...

Real reform will take more than muscle in California.(Workers' Comp)
December 1, 2003... To understand the workers' cutup problems of California, keep an eye on three things: the real, native exposures in worker disability, the escalation of insurance costs to deal with them and the cash worries of the leading insurer. Know the...

Cleaning up the binder confusion.(The Law)
December 1, 2003... Even though it has been more than two years since the Sept. 11 tragedy, we are just seeing the early ramifications of the lawsuits spawned by the World Trade Center devastation. One of the earliest and most visible disputes involved...

Holiday wish list.(RMIS/Technology)
December 1, 2003... The diversity of RMIS needs is more obvious than ever because of the growing and widespread attention to risk management issues. Sarbanes-Oxley and other examinations of the correctness of data, controls and compliance have made risk management...

Risk stalks U.S. campuses: university risk managers are uncovering all sorts of liabilities--risk they didn't know they had. As a result, college administrators are dusting off crisis management plans in a hurry.(Cover Story)
December 1, 2003... Remember the good old days on college campuses, when panty raids and questionable fraternity hazing rituals were the administration's biggest problems? Risk management was probably not even part of the business school's curriculum, let alone an...

Awash in uncertainly: two years after Sept. 11, a confusing array of legislation and regulation has been implemented by various government agencies to address cargo security. While the results have been largely positive, many issues still need to be sorted out.(Special Report: Marine/Aviation)
December 1, 2003... The United States maritime transportation system includes more than 300 ports with more than 3,700 cargo and passenger terminals, according to Congressional statistics. The top 25 ports nationwide account for 98 percent of the more than 6...

Views mixed on aviation capacity: whether rates hold at present levels, says Pete Fahrenthold, Continental Airline's risk management chief, depends on additional capacity coming into the market.(Special Report: Marine/Aviation)
December 1, 2003... An aviation insurance market in transition is what a consensus of corporate buyers, brokers and underwriters see for the final quarter of 2003. They forecast a conservative market, one that is gradually softening, and one whose capacity is...

Industry risk report: the Life Sciences; industry consolidation, a challenging global economy, increasing federal regulations and fear of terrorism are creating new exposures for the pharmaceutical industry. How they address these exposures will have a significant impact on their bottom line.(Risk & Insurance)
December 1, 2003... The pharmaceutical industry presents one of the most volatile risk management challenges in the world of business today. Widespread counterfeiting of prescription drugs, ongoing industry consolidation, a lengthy and costly approval process for...

Lloyd's: stepping off the cycle: the venerable London institution is still proclaiming its radical reforms, but also preaching its radical reforms, but also preaching against the market's boom-and-bust culture.(Special Report: Marine/Aviation)
December 1, 2003... It's no secret that the winds of change have been blowing through Lloyd's of London in the past few years. In fact, you could be excused for imagining that a Wizard of Ozstyle twister has been pulling apart and reassembling the venerable...

Seeing green: the best example of how environmental insurance has helped Brownfield programs gain traction lies in the fact that four states--Massachusetts, California, New York and Wisconsin--have embraced and incorporated environmental insurance incentives into their Brownfield programs.(environmental)
December 1, 2003... Environmental protection, particularly the redevelopment of Brownfields, is an ever-growing concern among federal and state legislators. The new mantras of environmental protection uttered by politicians across the country are: "Environmental...

Stress test 2004; in addition to the standbys like divorce and a weak economy, phone rage and desk rage--terms virtually unknown until recent years--are becoming commonplace as sources of workplace malaise.(workers' comp)
December 1, 2003... Stress is a fact of life and always has been. The caveman in an earlier age more than likely stressed over finding food for his next meal or over the prospect of running into his bigger and meaner neighbor living in the cave nearby. But in...

Schwarzenegger pumped for reform; California's new governor blasts away at runaway system that costs taxpayers $80 million--more than double the national average--in workers' comp costs annually for every 100,000 workers.(workers' comp)
December 1, 2003... California's next governor promises to make the state's ailing workers' compensation system one of his top priorities during his first 100 days in office. Arnold Schwarzenegger, sworn in last month, said legislation signed by former Gay. Gray...

Modeling trends for 2004: insurers, reinsurers and risk managers in growing numbers are turning to risk modeling--dynamic financial analysis or DFA--applications that can help determine the best possible pricing or risk management strategies.(technology)
December 1, 2003... Insurers, reinsurers and risk managers in growing numbers are turning to risk modeling--complex computer applications that can help determine the best possible pricing or risk management strategies. Modeling can certainly help insurers and...

TPAs.(Buyers' Guide)
December 1, 2003... BUYERS' GUIDE TPAs Below is the 13th annual guide to third-party administrators (TPAs) according to the types of claims they handle: health care; disability; workers' comp; managed care automation; software automation; pensions/...

States encroach on self-insured employers; a dozen states are thinking about levying--or have already done so--a tax on stop-loss clauses to fund high-risk pools, and that's unfair.(point/counterpoint)
December 1, 2003... Since the Self-Insurance Institute of America was fanned in 1981, our mission has been to protect and promote the ability of U.S. employers to self-insure corporate risk and employee benefits exposure with the least amount of government...

States have a duty to protect the insured: despite recent court decisions, states have been aggressive in protecting consumers from fraud and abuse.(point/counterpoint)
December 1, 2003... The states have been aggressive in establishing and enforcing patient protection laws for consumers in fully insured plans under the states' authority to regulate the business of insurance. Many states have already completed extensive work to...