Risk & Insurance articles from June 2006

Risk & Insurance archives from June 2006

Dumb and dumber.
June 1, 2006... Terri Majcher, risk manager for Bausch & Lomb, deserves induction into the Risk Management Hall of Fame on the basis of the following statement: "How dumb do they think we are?" That's what she was quoted as telling a panel of insurance and...

Regulator suspended.(NEWS & NOTES)
June 1, 2006... New Mexico Insurance Superintendent Eric Serna has been put on administrative leave at the recommendation of the state attorney general, who is investigating his office, officials said. Deputy Superintendent Tom Rushton will take over the...

Unisys to end DB plans.(NEWS & NOTES)
June 1, 2006... Unisys Corp. is phasing out its defined-benefit pension plan while sweetening its 401(k) plan. Current employees will not earn new benefits in the pension plan after Dec. 31, 2006. Starting on Jan. 1, 2007, new and current employees will earn...

Former execs Settle.(NEWS & NOTES)
June 1, 2006... The U.S. Securities and Exchange Commission has accused three former officers of the New England Financial unit of MetLife Inc. of fraud for scheming to hide more than $100 million of expenses, and said two agreed to settle. In a lawsuit filed...

Reinsurance upgraded.(NEWS & NOTES)
June 1, 2006... Standard & Poor's Corp. has revised its outlook on the global reinsurance industry to stable from negative. The agency said that reinsurers were in a strong financial position despite the hurricane losses in 2005. At Jan. 1, 2006, renewals,...

Correction.(NEWS & NOTES)(Correction notice)
June 1, 2006... The listings for the annual meeting of the Risk and Insurance Management Society Inc. in the April issues of the magazine were incorrect. The meeting was held from April 23 to April 27. Risk & Insurance[R] regrets the error.

Fraud still robust.(NEWS & NOTES)
June 1, 2006... A new survey by Pricewater-houseCoopers finds that corporate fraud remains a problem for most companies. According to PwC's Global Economic Crime Survey 2005, 45 percent of the 3,634 companies polled around the world said they were affected by...

Model will spark hikes.(NEWS & NOTES)
June 1, 2006... The newest catastrophe models from Risk Management Solutions Inc., based on increased storm frequency, should result in premium hikes of 40 percent to 50 percent, said John Kapitan, RMS consulting vice president. The model changes were released...

Upcoming events.(NEWS & NOTES)(Calendar)
June 1, 2006... JUNE 4-6 Insurance 2006: Rethinking Risk Standard & Poor's Insurance 2006 Conference will focus on the strategies industry leaders are developing and implementing to deal with risks and capitalize on opportunities currently...

A display in contrasts: ERM's successes and failures cited as reasons for firms winning, losing.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
June 1, 2006... There was a stunning contrast in messages between two keynote speeches at this spring's RIMS conference in Honolulu. The first was a warning shot to all risk managers from former Enron executive Lynn Brewer about how risk management can...

Property/casualty clients less than satisfied. new study: property/casualty carriers have significant room for improvement.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
June 1, 2006... Ask any insurance carrier, and they'll tell you that performance measurement is a high priority. But exactly what are they measuring? Due to the lack of an industry standard for performance measurement, insurers too often use arbitrary numbers...

On the topic of cancer: it's no. 1 in long-term disability claims--again.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
June 1, 2006... In 2004, cancer cost the U.S. economy and employers as much as four Katrinas--a total of $209.9 billion. The National Institutes of Health estimates that $74 billion of that resulted from direct medical costs, $118.4 billion by lost...

Healthy self-insurance: managing catastrophic medical claims.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
June 1, 2006... When it comes to self-insured employers caring for employees after a catastrophic injury, it's the little things that matter, such as having someone from the company show up at the hospital to spend some time with the patient. "These are...

RIMS hot topics: pandemics and hurricanes: managers ponder a course of action for a flu outbreak, but are forced to react to conditions in the property catastrophe market.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
June 1, 2006... While the risk of an avian flu pandemic is flying on radar screens, only a small percentage of companies have taken steps toward building pandemic preparedness plans, according to risk executives. Yet some in the retail industry are already...

Worth repeating.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
June 1, 2006... "Who knows, it may not be all that long before every state in the union has a captive law." Jeff Kehler, program manger, Alternative Risk Transfer Services, South Carolina Dept, of Insurance "I'm a zealot. I'm a zealot because I want...

U.K. broker establishes U.S. foothold: firm targets companies with sales of between $10 million and $500 million and sets a growth target of at least $100 million in revenues the old-fashioned way, through traditional commissions and fees.(BROKERS: People Ideas and Trends shaping the Brokerage Community)
June 1, 2006... Cyril Tuohy: Will you focus on particular lines or particular sectors for the midlevel companies? Brian Daly: We'll be looking to specialize in a broad sense in property/casualty insurance. We're not planning at this point to be in the...

Ruling stands.(BROKER NEWS & NOTES)
June 1, 2006... A U.S. appeals court has refused to overturn a ruling striking down Puerto Rico's countersignature law that required nonresident commercial insurance brokers to have the countersignature of a Puerto Rico resident agent before they could do...

Premiums fall.(BROKER NEWS & NOTES)
June 1, 2006... Net premiums written in 2005 by leading U.S. reinsurers fell by 13 percent, according to the most recent report from Benfield's Industry Analysis and Research Team. Reserving deficiencies and hurricane losses were the primary reasons for a 66...

Charter opposed.(BROKER NEWS & NOTES)
June 1, 2006... The Independent Insurance Agents & Brokers has opposed a Senate bill proposing an optional federal charter because the public is better served through local insurance regulations. The bill, known as the National Insurance Act of 2006, was...

Partners added.(BROKER NEWS & NOTES)
June 1, 2006... Adding to its international base, Assurex Global has announced the addition of new partners in Australia, Switzerland and Austria. OAMPS Insurance Brokers Ltd. in Australia; GWP Insurance Brokers in Switzerland; and Assurance Partners...

Cheers and jeers.(BROKER NEWS & NOTES)
June 1, 2006... A cheer went up from the handsome, green Integro booth when it was announced that the newly minted firm had won an award for the best booth during the annual conference of the Risk and Insurance Management Society Inc. in Honolulu in April. But...

Hawaiian 'punch'.(BROKER NEWS & NOTES)
June 1, 2006... At a panel session during the annual convention of the Risk and Insurance Management Society Inc., where the CEOs of the largest insurers and brokers answered questions from RIMS leaders, the real story was how adept the panelists seemed to be...

A.J.G. buys broker.(BROKER NEWS & NOTES)
June 1, 2006... Arthur J. Gallagher & Co. has bought Sobieski & Bradley Inc. of Salt Lake City, A.J.G. has announced. Terms of the transaction were not disclosed. Formed in 1987, Sobieski & Bradley Inc. is a wholesale insurance broker and managing general...

Willis issues report.(BROKER NEWS & NOTES)
June 1, 2006... Directors' and officers' liability insurance rates in the London market were largely unaffected by insurance industry losses following hurricanes Katrina, Rita and Wilma, according to the latest Willis Index for this coverage area for the first...

Don Mango.(BROKER MOVES)
June 1, 2006... DON MANGO has joined Guy Carpenter & Co.'s Instrat quantitative analysis unit as senior vice president, the firm has announced. Mango will report to John Tedeschi, managing director, and work with clients, using quantitative analysis to help...

Willis Group.(BROKER MOVES)
June 1, 2006... AYESHA NAVARRO, MURRAY KAMMER, CHARLES FOGDEN, MATTHEW COOK and DOUGLAS BUNDOCK have been appointed to help run the Canada operations of Willis Group, the broker has announced. They will work out of the company's Toronto offices. Navarro and...

JBL&K.(BROKER MOVES)
June 1, 2006... JBL&K, a Beecher Carlson company, announced today that it has added two new professionals in its Portland office. ACOTT MOSS joins as vice president, account executive, and CYNTHIA HILTON will also serve as vice president, account executive....

Behind Beacon's fall from Grace.(WORKERS' COMP)
June 1, 2006... Rudolph Giuliani's consulting firm delivered in mid-April a report on the state of affairs at the board and senior executive levels of Beacon Mutual, the workers' compensation state fund in Rhode Island. You can interpret its findings on...

Homer, Virgil, Sappho--Roger?(ROGER ON RISK)
June 1, 2006... The title of this column, once labeled "Alternative Risk," has changed, as you may have noticed. In the process, I have become simply Roger. Many great artists go by a single name. One thinks of Ovid, Sibelius, and Cher. Since we will be...

Will it never end?(BROKERAGE)
June 1, 2006... It'd give an inveterate states rightist like Thomas Jefferson a splitting headache, chasing him up the mountainside to Monticello, there to hide his head under the blankets, this endless chatter over whether the states or the reds or both or...

Judge not, lest ye be judged.(THE LAW)
June 1, 2006... In the past few years, it has become popular sport in certain circles to attack our nation's sitting judges. Unpopular judicial decisions are denounced as "outrageous," and individual judges described as "activists running amok." And, believe...

Watercraft liability risks.(RISK PRIMER)
June 1, 2006... Generally speaking, Insurance Services Office (ISO) Commercial General Liability policies do not cover owned watercraft unless they are ashore on premises you own or rent. Nor do they cover nonowned watercraft unless they are less than 26 feet...

Facing a tough situation: employers hiring workers who live in the United States illegally risk fines and civil lawsuits. In addition, the huge size of the illegal work force is causing the workers' compensation system in some states to deteriorate.(RISK MANAGEMENT)
June 1, 2006... The last time the United States tried to reform its immigration laws was in 1986. Now the economic stakes are a lot higher, and vastly more employers are at legal risk. Twenty years ago, illegal workers were mainly in agriculture. Because...

How docile a jostle for domiciles? Seeking a niche, onshore captive domiciles jockey for position behind Vermont. Competing for second place is tougher than it used to be.(RISK RETENTION)
June 1, 2006... With good cheer, captive industry leaders and regulators will tell you that they are in a "friendly race" to attract captive insurance companies. And indeed, judging by the banter at trade shows, there's no reason to suspect much beyond a...

Coloring by (exposure) numbers: mapping technology doesn't just paint pretty maps. Mapping is omnipresent with carriers and reinsurers, and gaining ground with corporate risk managers and brokers--all because it helps them think for themselves.(TECHNOLOGY)
June 1, 2006... Call it geographic information system technology, GIS, location intelligence technology, modeling-lite or whatever other terms are out there. We'll call it mapping technology, for simplicity's sake. Mapping technology isn't simple stuff,...

Measure for measure: a powerful cost-management tool comes of age, allowing employers to see the big picture of how their absence and productivity management programs stack up against that of their peers. Now's the time to get on board.(DISABILITY MANAGEMENT)
June 1, 2006... At the annual National Workers' Compensation and Disability Conference & Expo in Chicago this past November, Marybeth Stevens stood up and made an intimate confession before a gathering of 60 of her peers. "I'm a zealot," said Stevens,...

Breaking free from the price cycle: workers' compensation, like most other lines of business, lives a cyclical life that is often the bane of employers' existences. But rather than stand by as passive victims of the cycle, employers can take steps to cut costs in markets hard, soft or anywhere in between.(WORKERS' COMP)
June 1, 2006... With few exceptions, workers' compensation insurance rates are in decline across the country. Although rates are certainly an important component of workers' comp insurance costs, there are other considerations companies must address during a...

Serving by accident: for Jim Bradshaw, being in the right place at the right time has led to a fulfilling career in public risk management. His experience and insights have helped the city in which he works to meet many milestones.(PROFILE)
June 1, 2006... Jim Bradshaw doesn't eschew small-town life. He relishes it. After all, he could have tried his luck in larger markets in Texas to the west after graduating from college more than 20 years ago. Or, perhaps he might have even boarded a bus bound...

Back in the green: crop insurers find profit in their public-private partnership after the shakeout of four years ago.(INDUSTRY RISK REPORT: AGRIBUSINESS)
June 1, 2006... Crop insurers are back in the green since the shakeout in 2002-2003 that led to consolidations and to the insolvency of one long-time player. Today, 16 private companies hold Standard Reinsurance Agreements with the U.S. Department of...

March off the zombies: Yeomen of silicon armies, 'Bots' soldier forth helped in their quest to decimate computer networks into data wastelands by the interdependence of systems and the lower cost of fast Internet connections.(SPECIAL REPORT: CYBER RISK)
June 1, 2006... Thousands of companies operate in a network-dependent business environment. To thrive they rely more and more on Internet service providers, application services providers and partners. By doing so, corporations have become more efficient....

FBI fights the bandwidth brigands: the latest chapter in the history of extortion now means doing battle with evil "Bots." In the 21st century, they come with ransom demands attached.(SPECIAL REPORT: CYBER RISK)
June 1, 2006... Mark Greisiger: Do you think cyberextortion is something businesses should be concerned about and take seriously? Thomas X. Grasso Jr.: Absolutely, they should be concerned, especially if they have a Webcentric business model and depend on...

Directory: investigative services.(Directory)
June 1, 2006... Below are paid listings by vendors offering investigative services. This guide is not intended to be a complete directory but it an overview of some of the packages available. Suppliers themselves have provided this data. To obtain more...

Under 40? Get lost: no commercial insurance buyer should do business with a broker under age 40. Period. No exceptions.(POINT)
June 1, 2006... Watch out for the young whippersnapper broker under the age of 40. They're all young, almost always bright. They're usually men, often handsome, always looking "tight." Sometimes they're women, always poised and elegant. Many come from modest...

Over 40? Go retire: do business with veterans and buyers risk getting fleeced. Step aside, old guard. Hit the links for good.(COUNTERPOINT)
June 1, 2006... Never, ever trust a broker over the age of 40. The shameful display of arrogance, the wanton disregard for the interests of clients, the magnitude of the irresponsibility committed on behalf of senior executives in the price-fixing scandals...