Risk & Insurance articles from February 2006

Risk & Insurance archives from February 2006

Many thanks.
February 1, 2006... The Power Brokers has been an enormous project, but worth the effort. In addition to myself, Associate Editors Matthew Brodsky and Michelle Kerr called and talked with dozens of risk managers and brokers during the course of the project....

NAIC salaries released.(NEWS & NOTES)
February 1, 2006... Salaries for the highest-paid executives of the National Association of Insurance Commissioners ranged from $188,657 to $331,390 in 2005. NAIC Executive Vice President Catherine J. Weatherford was paid $331,390 last year--up 8 percent from...

Damage estimates upped.(NEWS & NOTES)
February 1, 2006... Reinsurer Goshawk Insurance Holdings PLC in January raised its estimates of claims from U.S. hurricanes this year by a further $25 million and warned that further reserve charges for other exposure might follow, causing its shares to tumble....

Aetna chief to retire.(NEWS & NOTES)
February 1, 2006... Aetna Inc. Chairman and Chief Executive John W. Rowe plans to retire by the end of 2006, and President Ronald A. Williams has been named chief executive officer, effective Feb. 14. Rowe, 61, has been chairman since 2001 and chief executive...

Windfall for towns.(NEWS & NOTES)
February 1, 2006... More than 20 Connecticut municipalities, corporations and individuals will receive more money than they anticipated under Aon Corp.'s $190 million contingent-commissions settlement after the Chicago-based brokerage rectified mistakes made in...

Insurer expands data.(NEWS & NOTES)
February 1, 2006... Cigna Inc. is expanding its online pricing data for consumers to include services provided by hospitals, surgical and radiological facilities, and physicians as part of its push to involve consumers more in health-care decision-making, the...

Litigation survey.(NEWS & NOTES)
February 1, 2006... A new survey by Fulbright & Jaworski finds that 90 percent of U.S. companies are engaged in some form of litigation. For the 2005 Litigation Trends Survey, the firm polled 354 corporate attorneys, drawing from samplings of in-house counsel in...

Upcoming events.(Calendar)
February 1, 2006... FEBRUARY-MARCH 2.28-3.2 SIIA Legislative Conference As the newly elected 110th Congress convenes in the nation's capital in 2006, the Self-Insurance Institute of America's Annual Legislative and Regulatory Conference is your...

The 'hard' facts of the U.K. liability market: the U.K. liability market was easy on buyers in 2005, but signs point to a harder future ahead.(UP FRONT: News, Updates and Other Emerging Strategies from Around the World)
February 1, 2006... It was a buyer's market for liability coverage in 2005 in the United Kingdom, according to the Marsh country report on the topic. The price of 1 million [euro] of coverage dropped 17 percent on average from 2004. Clients had more say over...

Don't count your bird flu before it's hatched: recent survey shows many employers are holding their breath for avian flu.(UP FRONT: News, Updates and Other Emerging Strategies from Around the World)
February 1, 2006... The Centers for Disease Control and Prevention has released a checklist of activities that businesses can do now to prepare for a future avian flu pandemic. According to a survey conducted by the Disability Management Employer Coalition, the...

Dealing in discrimination.(UP FRONT)
February 1, 2006... The U.S. Equal Employment Opportunity Commission released the number of discrimination charges, by type of discrimination, that it received in FY 2004, along with the monetary benefits recovered for charging parties and other aggrieved...

Working where armies don't dare: new risk management tool makes investing in bad places less perilous.(UP FRONT)
February 1, 2006... Just because a country is broken doesn't give multinational corporations the freedom to violate international laws within its borders, indulge in bribery or exploit the local people and resources, says the Paris-based Organization for Economic...

Lloyd's gets loud: Lloyd's chief targets collateral.(UP FRONT)
February 1, 2006... Lloyd's of London chairman Lord Levene of Portsoken began the new year with a trip to the Big Apple and used the visit to launch a broadside against U.S. reinsurance rules. He has been pressing for reform for several years, but with...

China: handle with care? Take down these walls, say Western insurance companies.(UP FRONT)
February 1, 2006... Law firm Norton Rose reports China's insurance market to be worth an estimated $1.2 trillion in written premiums. Western insurers and reinsurers are naturally keen for a piece of the action. Four local insurance giants, however, are defending...

Blinded by 'green' lights.(ROGER ON RISK)
February 1, 2006... No one familiar with the Cayman Islands would describe the atmosphere there as "frantic". Compared to almost anywhere else, Cayman is a relaxed and laid-back place, where gentility remains the order of the day. In the financial services arena,...

Conversant in the flat future.(WORKER'S COMP)(Interview)
February 1, 2006... Editor's note: Fast-forward to 2020. China is the world's dominant economic power. Columnist Peter Rousmaniere is granted an interview with Finn Halogen, a Finnish grad-school dropout recently hired to run the claims operation of a Chinese...

Shock jocks' poor taste.(BROKERAGE)
February 1, 2006... It's no news to insurance producers that their reputation, and that of the industry they represent, historically occupies the dark, dank basement of American business. Like it or not, you're down there with used car salesmen and hawkers of...

So, you want a piece of me?(RISK MANAGEMENT)
February 1, 2006... Few things can bring an efficient, well-managed risk management department to a grinding halt like the dreaded broker-selection process. Some unique law of physics seems to turn this process into a black hole of productivity, and it can consume...

Medicare's 'D' for Clarity.(BENEFITS)
February 1, 2006... If you spent any time last year helping a senior struggle through an application for the new Medicare Part D prescription drug benefits--or figuring out how to apply for the employer's subsidy for prescription drug benefits under your retiree...

The Power Brokers: Why stellar brokers shine: one year on since the salutary wind of transparency has blown through the brokerage nebula, and genuine stars still shine. The extinguished rogues, meanwhile, having imploded under the weight of hubris and greed, leave behind only a tarnished legacy.(RISK & INSURANCE[R]: POWER BROKERS)
February 1, 2006... Finding the right mix that makes the perfect insurance broker is an art, not just a science or a spreadsheet. But when artistry, science and accounting blossom to create a superstar producer, business starts to boil over. Brokers make a...

Making the cut: what it took to appear on these pages.(RISK & INSURANCE[R]: POWER BROKERS)
February 1, 2006... The Power Broker project began more than eight months ago when the brokerage community was in a state of turmoil. The largest firms had entered into agreements with law enforcement and regulatory officials about paying restitution on contingent...

Ingredients of a Top Broker.(RISK & INSURANCE[R]: POWER BROKERS)
February 1, 2006... Ken Crerar, president of the Council of Insurance Agents & Brokers, reveals the qualities of a top broker in today's marketplace. Here's a hint: If you want to survive, you need to know a lot more than you did 10 years ago. Mere order-takers,...

Cracking the tech sector: brokers skilled and patient enough to work their way into the inner circles of buyers in the technology sector must be specialists. In this market you'd better get it right the first time, writes Bob Ditmore, because sloppiness rarely begets a second chance.(RISK & INSURANCE[R]: POWER BROKERS)
February 1, 2006... As industries evolve, so do their insurance needs. The technology industry is no exception. Rapidly advancing technology is one of the best examples of the fact that nothing is as constant as change itself. For brokers looking to excel at...

Buyers to Integro: prove yourself first, then we'll talk.(RISK & INSURANCE[R]: POWER BROKERS)
February 1, 2006... With some ballyhoo last spring, the startup of Integro was announced by three former top Marsh brokerage executives. The new firm, with the backing of more than $300 million in equity capital, began an aggressive effort to recruit and hire some...

Power brokers: automotive: it's been a year of big changes in the auto industry, what with restructurings, layoffs and disappointing earnings, thanks in part to pension costs. The best brokers help lighten that burden, and they've got their work cut out for them. Things won't be getting any easier in the coming year.
February 1, 2006... Anthony DeFelice, CPCU The top risk executive at one of the country's largest auto manufacturers didn't skip a beat when asked who he thinks are the best brokers serving the auto industry. "Tony DeFelice. There's no question. He's really...

Power brokers: computer hardware: superstar middlemen of the computer hardware field come hard-wired with memory and speed. They may not be able to compute as fast as a 2-gigahertz chip or store as much memory as a 100-megabyte hard drive. But what they lack in memory storage and speed, say risk managers, they make up for with vision and creativity.
February 1, 2006... Michael D. Rice II Michael D. Rice II, managing director at Aon Risk Services in Denver, is recognized as a man who knows the technology industry very well and who works very hard for his clients. He also has won respect for his ability to...

Power brokers: computer software: the effects of convergence, outsourcing, information security, patent infringement and just keeping pace with rapidly developing risk profiles means plenty of homework for brokers--if they want to be the best.
February 1, 2006... Brenda A. Shelly Brenda Shelly, executive vice president at Willis Group, has been dedicated to serving the needs of technology clients since the early 1990s. In director's and officer's, Shelly is well-respected for her knowledge. "She...

Power brokers: construction design: the three pillars that top brokers in this sector deliver are speed, urgency and flexibility. Brokers who can't anchor their business in those footings, risk managers suggest, are headed for collapse even in the boom times of the hot real estate market.
February 1, 2006... Steve Davis, CPCU, ARM Steve Davis, senior vice president and director of risk construction services for Birmingham, Ala..-based McGriff, Seibels and Williams, doesn't like to toot his own horn. But that's just fine, because plenty of...

Power brokers: education: the risk-related challenges at colleges and universities are daunting. They range from the flood of liabilities from student drinking to a bevy of property risks, increasing exposures at medical centers and significant workers' compensation and employment liability issues.
February 1, 2006... Jean Demchak, CIU Risk managers say Jean Demchak earned her title at Marsh of "Leader of Global Higher Education Practice" many times over. To wit, she's currently focused on an evaluation of what universities have learned from the...

Power brokers: benefits/financial svcs: because of the big year-to-year increases in benefits, workers' comp, medical and retiree benefits, for example, good brokers in this sector come at a premium.
February 1, 2006... E. Dow Walker Jr., CPCU, ARM, ARe Health insurance is a critical part of any benefits package. The risks for those who provide these services are enormous, be they health insurers or providers. Dow Walker, who until recently headed Willis'...

Power brokers: energy: it's crunch time for buyers in the energy sector, given the hurricane havoc of 2005. But that's just the kind of environment that will force brokers to look for creative solutions to their clients' needs. Finding extra capacity at a fair price in tough times always separates the best brokers from the merely diligent.
February 1, 2006... Richard M. Blades, CPCU Based in the energy capital of the country, Houston, Blades takes an active role in managing his team, placement negotiations and account services. "I would have to rank him very highly," says one senior...

Power brokers: entertainment: now you see them, now you don't. Delivering services to meet the needs of commercial buyers in the changing landscape of the media industry belongs to brokers who are swift and shrewd. In the industry of illusion and fantasy, there's no telling where new risks are going to pop up, or disappear.
February 1, 2006... LeConte Moore Last year, broker LeConte Moore made the big jump from heading up Marsh's Entertainment and Media practice to joining Dewitt Stern, which had been a stately, long-established firm with its roots in insuring New York theater....

Power brokers: environmental: mediocre brokers should come with the following label: 'agreeing to a bad environmental insurance policy can seriously damage your health.' From securing coverage for Brownfields redevelopment to Anthrax-laced U.S. Post Offices, buyers in this segment value good brokers like patients value good doctors.
February 1, 2006... Peter Breitstone Breitstone & Co. isn't one of the big-time firms that are on everyone's list--except if you have an environmental issue. They represent huge companies and much smaller contractors and for many they're the place to go for...

Power brokers: financial institutions: power brokers who advise their clients well in the area of operational risk management are worth their weight in gold. That's because regulators have gotten much tougher, and leaders of financial institutions who ignore compliance dictates and the requirements of risk-based capital allocations can go to jail.
February 1, 2006... Lou Ann Layton Lou Ann Layton is known as someone with top-notch connections and outstanding relationships in the marketplace. Layton, a managing director at Marsh Inc., is "one of the best," according to one risk manager. "She knows...

Power brokers: fine arts: the best brokers have honed their craft down to, you guessed it, a fine art. Risk managers will tell you that their favorite representatives have the gifted touch when it comes to pricing and protecting differences in a sculpture by the Swiss sculptor Alberto Giacometti and Romanian sculptor Constantin Bancusi.
February 1, 2006... Robert F. Salmon, ACII Certain brokers are particularly notable for the enthusiastic response they invoke from the community they serve. Robert Salmon is one of those brokers. As one ebullient risk executive summed it up: "He's truly...

Power brokers: gaming: quick: what does a broker tell a buyer at renewal time? "Let the games begin." The games these days have to do with retention, in the wake of last year's Gulf Coast storms. Odds are that the brokers listed below and their clients come out winners.
February 1, 2006... John J. Bullock Willis' gaming and hospitality practice has a great reputation among risk managers. The casino business, in particular, confronts a huge array of risk from catastrophes to giant workers' compensation liabilities. Bullock's...

Power brokers: health care: health care is a tough business. The risk needs are as diverse as the sector, which encompasses huge provider networks and hospital systems to neighborhood health centers and clinical labs.
February 1, 2006... E. Dow Walker Jr., CPCU, ARM, ARe Consideration for a client's needs--as well as, of course, knowledge of the industry in general, a client's business in particular--seems to be a theme with Willis, in large part thanks to Dow Walker. ...

Power brokers: marine: according to commercial insurance buyers, this 'Marine' corps of the brokerage industry is always faithful. The 2005 hurricane season will put these Marines to the test.
February 1, 2006... James R. Pierce Jr. Jim Pierce had only been back on the job for a few weeks at Marsh where he was named the managing director and chairman of the broker's Global Marine and Energy practice. Pierce previously spent five years in Marsh's...

Power brokers: pharmaceuticals: one insurance executive early this year, reacting to Merck's legal proceedings, said that pharmaceutical companies were "almost uninsurable." That's exactly why insurance buyers need brokers: to help them find coverage at a decent price. Brokers listed below do just that.
February 1, 2006... Bruce C. Belzak Bruce Belzak has spent the past 35 years building a solid foundation with Marsh and McLennan Companies. But despite his experience and reputation, he's not one content to rest on his laurels. He continues to stretch himself...

Power brokers: real estate: there's nothing like a brutal hurricane season to test the ability of brokers to find capacity at a good price for their clients. With terrorism truly a "wild card," given the expansion of TRIA for only two years, insurance brokers who serve this sector are in for some tough bargaining.
February 1, 2006... Steven W. Sachs, ARM Steven Sachs began his career as an underwriter with Hartford Insurance Group back in 1969, and then found his way to a risk management position with Rouse Insurance. A few acquisitions and tweaks in his title later,...

Power brokers: retailing/wholesaling: large retailers have widespread exposures that run the gamut from parking lot potholes to protecting the security of consumer credit card data. Retail Power Brokers know how to cover all the bases.
February 1, 2006... Gary W. Bull, ARM Gary Bull, managing director of Marsh's retail practice group, is probably the dean of brokers that serve large retailing clients. "There's nobody who can match Gary for the depth and breadth of his knowledge of the...

Power brokers: technology: some of the best brokers in this sector know less about the specific details of technology than they do about bringing order from chaos. They know how to summarize and prioritize for buyers the risks that are most likely to affect their companies. For this, they are masters of their buyers' universe.
February 1, 2006... Norman Jacobi Norm Jacobi, managing director of the technology and telecommunications practice for Marsh, has won wide respect for his dedication to clients. He's "someone who is client-focused and very responsive 24-7," as one Silicon...

Power brokers: telecommunications: what with telecommunications industry scandals never far from the front pages, or so it seems, brokers in this segment have to be experts on D&O and E&O policies if they are going to provide the service they promise to their clients.
February 1, 2006... Alfred P. Tobin When commercial insurance buyers from behemoths like AT&T want a live voice at the other end of the line, they call A.P.T., or Alfred P. Tobin. Tobin likes to think of himself as devoted to his clients, and his...

Power brokers: transportation: let's face it, there's little glamour in insuring trains and trucks. But when you consider how many people and how much freight travel by road and rail, protecting the inland marine industry from losses is important.
February 1, 2006... Scott C. Richards Scott C. Richards leads Marsh's National Center of Excellence for Transportation and is a senior client executive, responsible for managing accounts for more than 20 major U.S. motor carriers. Richards and the NCOE team...

Power brokers: utilities: when it comes to the phrase "Power Broker," no one can match the buyer representatives working in this sector. They broker the protection of the nation's energy.
February 1, 2006... Freeman "Mac" Wade "A very strong energy broker" says one utility executive. Clients have their favorite brokers, and some long-serving risk managers know several of the leading brokerage lights, but almost everyone it seems knows Mac...

Warming up to a model: small and midsize insurers like what they see in technology models known as ASPs.(TECHNOLOGY)
February 1, 2006... When it comes to processing medical bills associated with workers' compensation and other property/casualty commercial medical claims, Web technology arrived on the scene relatively late. But, as the people responsible for managing payment...

Facing an Internal Affair: proper sleuthing can dig up a wealth of inefficiencies in a workers' compensation program. Here is a guide for what to look for.(WORKERS' COMP)
February 1, 2006... As companies reposition themselves to be more competitive in today's marketplace, they strive to eliminate unnecessary costs. And--surprise!--workers' compensation is fertile ground for cutting yet more costs. By thoroughly assessing your...

Straight talk on commercial lines in 2006: the 2006 outlook for commercial lines includes premiums up 3.5 percent, a combined ratio of 104, an underwriting gain of $1 billion and return on equity of 12 percent to 13 percent.(INSURANCE)
February 1, 2006... Editor's note: The following is an edited transcript of a panel discussion titled "View From the Outside Looking in," held during the Insurance Information Institute 's Joint Industry Forum on Jan. 10, 2005. Panelists included V.J. Dowling,...

Instilling a code of conduct: elevating compliance from an exercise of the legal commonplace to a code of ethical conduct requires a culture anchored in integrity and principle.(COMPLIANCE)
February 1, 2006... There is scarcely a reader who does not recognize that insurance companies, among others, are under intense scrutiny these days from a financial, operational and compliance perspective. Against this backdrop, compliance has emerged as one of...

Delving into shades of gray: a writer explores the gray relationship between work-related and unrelated workers' comp injuries, and uncovers an unlikely source of cost increases in pharmacy benefits.(BENEFITS)
February 1, 2006... This much we know: Rising prescription-drug costs in workers' compensation cases have become alarming. The prescription-drug share of total medical costs by accident year increased from 6.5 percent in 1997 to 9.6 percent in 2001, according to...

Liability.(INSURANCE)
February 1, 2006... Pittsburgh-based National Union Fire Insurance Co., has unveiled its Hedge Fund Protector, a new insurance policy tailored to protect hedge fund managers, directors and officers against liability exposures and potential litigation, the firm has...

Property/casualty.(INSURANCE)
February 1, 2006... The Chubb Group of Ins. Cos. has selected Risk Control Strategies to support its new Signature Suite offering of luxury personal risk management services, Chubb has announced. Risk Control Strategies will provide Chubb's high-net-worth and...

Excess casualty.(INSURANCE)
February 1, 2006... AIG Excess Casualty has launched xsInResponse for risks previously covered by an insurance carrier that is now insolvent, the excess and surplus insurance carrier has announced. The product is available as an endorsement to its Umbrella Prime...

Environmental.(INSURANCE)
February 1, 2006... ACE has launched ACE Environmental Risk to help European organizations better manage their environmental liabilities and risks in light of increasing European Union regulation, ACE has announced. ACE Environmental Risk is modeled on the firm's...

Health care.(INSURANCE)
February 1, 2006... UnitedHealthcare is expanding opportunities for small businesses to offer health benefits to their employees through a new consumer-driven health product, the insurer has announced. The new product features a Health Reimbursement Account for...

Reference.(INSURANCE)
February 1, 2006... Broker Willis Group has unveiled a new publication, "The Willis Worldwide Directory of Directors' and Officers' Liability," the firm has announced. The guide details the potential personal liabilities of directors in 51 countries in Africa,...

Policy administration.(SOFTWARE)
February 1, 2006... Fiserv Insurance Solutions has launched version 1.10 of its Policy STAR system for policy administration, the firm has announced. The addition includes support for boiler/machinery, commercial output and dwelling fire lines of...

Process management.(SOFTWARE)
February 1, 2006... FileNet Corp., a provider of enterprise content and business process management software, has released its new FileNet Business Activity Monitoring solution, the firm has announced. The technology provides insurance companies with real-time...

Fraud prevention.(SOFTWARE)
February 1, 2006... White-Collar Crime 101 LLC, developers of the employee fraud awareness training course called FraudAware, has announced the release of the course's latest version, FraudAware/Insurance CS, the company has announced. The program provides...

Property valuation.(SOFTWARE)
February 1, 2006... The American Association of Insurance Services, which develops policy forms and rating information, has announced that insurers using its Farmowners or Farm Properties programs will have access to a Web-based farm property valuation service....

Workers' compensation.(SOFTWARE)
February 1, 2006... Nebraska regulators have approved the use of Workers' Compensation Information Services software for electronic proof-of-coverage filings, the Insurance Services Office has announced. The approval means that ISO's workers' compensation...

Catastrophe.(SOFTWARE)
February 1, 2006... EQECAT Inc., a risk modeling firm based in Oakland, Calif., has announced that Benfield Inc. has signed a licensing agreement to use its U.S. wildfire model. The model is part of EQECAT's WORI,DCAT catastrophe management software suite....

Broker management.(SOFTWARE)
February 1, 2006... Zywave Inc., a provider of technology products and services for insurance brokers, has released BrokerageBuilder 3.0, the latest version of its agency management application, the vendor has announced. New enhancements include HIPAA security...

Financial reporting.(SOFTWARE)
February 1, 2006... Eagle Technology Management, a provider of advanced annual and quarterly statement systems for the insurance industry, has released version 3.0 of its WINGS Financial Reporting System, featuring the new EO2 (Excel/Outlook2) interface. The EO2...

Document management.(SOFTWARE)
February 1, 2006... InSystems, specialists in complex document and compliance automation for insurance and financial services organizations, has introduced its InSystems Tracker 6.3, the firm has announced. The software boosts speed-to-market of new insurance...

Regulation.(SOFTWARE)
February 1, 2006... Pegasystems Inc., a provider of business process management software, has released its new Control and Compliance Solutions framework, the firm has announced. The product is designed to help companies meet the requirements of the Sarbanes-Oxley...

Subrogation.(SOFTWARE)
February 1, 2006... Intermountain Health Care has licensed MY SOCRATES software for their in-house subrogation platform, the vendor Socrates Inc. has announced. Intermountain is a Utah-based nonprofit health-care system that includes hospitals, clinics, health...

Property/casualty.(ALLIANCES)
February 1, 2006... Clients of McNeil & Co.'s Ambulance Services Insurance Program who use DriveCam are eligible for a discount of up to S percent per DriveCam-equipped vehicle, DriveCam Inc. has announced. In addition, DriveCam will offer a 5 percent volume...

TRI(E)A: be thankful.(POINT)
February 1, 2006... If one sentence of truth has ever come from President George W. Bush's mouth, it's his warning that al-Qaida wants to get us again. Listen to any terrorism expert--from those criticizing the administration to those serving it--and they'll tell...

TRI(E)A: nuke it.(COUNTERPOINT)
February 1, 2006... Let's scrap the Terrorism Risk Insurance Extension Act. Scrap it now, posthaste. Send TRIEA to one of those shredders in the Washington, D.C., paper mill. Now, before you dismiss the previous sentence as the gassy pronouncements of another...