Risk & Insurance articles from May 2007

Risk & Insurance archives from May 2007

He should know.(LETTERS TO THE EDITOR)(Letter to the editor)
May 1, 2007... Dear Editor, I happened upon the article "One Long, Long Mission," (Risk and Insurance[R], March 2007, p. 36) by James Schacht and Lynne Hepler. I have a few comments. I was chief counsel and a special deputy insurance commissioner for the...

Hank Greenberg: never sell him short.
May 1, 2007... AIG didn't suddenly change its culture that day its former chairman and CEO Maurice "Hank" Greenberg was pushed out the door. But now, two years after his departure, it's certainly a story yet-to-be told about his legacy--the AIG culture and...

Sucking you dry.
May 1, 2007... As we look toward the 2008 election season, it's time to dust off one of the most memorable phrases uttered by any former presidential candidate, in this ease H. Ross Perot. It was he who said the North American Free Trade Agreement would...

Captive growth prospects: offshore: the captive industry is primed for growth, but the greatest opportunities lie abroad.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
May 1, 2007... Prospects for growth in the captive insurance industry are bright, and those opportunities will be plentiful abroad, according to Ernst Csiszar, the former head of the National Association of Insurance Commissioners. "In this segment of...

More captives shell out for fronting, reinsurance fees: survey finds a big jump in the percentage of captives paying more.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
May 1, 2007... Captive managers are always welcome to use a fronting carrier or a reinsurer to underwrite risks, but those services don't come cheap, according to a recent survey. The 2007 Fronting Survey by the Captive Insurance Companies Association...

Workplace class actions cost more: report: workplace suits emerged in 2006 as top legal risk.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
May 1, 2007... Sure, shareholder and securities class-action filings seem to be down, but another type of class action is registering on employers' radars. Workplace-related suits are becoming the No. 1 driver of corporate legal budgets, according to a report...

Coingate Phase II: managed care organizations: task force takes aim at its newest target in the workers' comp investigation.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
May 1, 2007... There is no end in sight for the two-year-old investigation into the investment practices of the Ohio Bureau of Workers' Compensation--probably because new mini-scandals are regularly being added to the mix. The three most recent cases to...

Not a minor labor law violation: child labor laws a problem point for employers, says study.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
May 1, 2007... Employers appear to be guilty of widespread violation of federal child labor laws, requiring minors to perform unlawful or unsafe tasks or work late on school nights, according to a survey by the University of North Carolina Injury Prevention...

Producing fresh produce: new FDA guidelines for handling and processing fresh produce significant for the entire food chain.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
May 1, 2007... Spinach made nearly as many headlines as Britney Spears last year. And unlike the case for pop divas, any publicity was not good publicity for companies associated with the leafy greens that infected folks with E. coli bacteria--from the...

Worth repeating.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
May 1, 2007... "Good morning, fellow captives. I'm honored to be here, and I confess I know nothing about your business." Helen Thomas, author and former White House bureau chief, in introductory remarks at the 35th annual Captive Insurance Companies...

Keeping kids safe: N.J.-based brokerage marks 60 years of providing student accident insurance.(BROKERS: People, Ideas and Trends shaping the Brokerage Community)
May 1, 2007... Summer is upon us, and while parents are planning their children's summer activities, school administrators are planning for their school's coming financial year--including renewals for student accident insurance. Few can help these...

Beecher Carlson.(BROKER MOVES)
May 1, 2007... Beecher Carlson expanded its executive liability team in Atlanta with the addition of MICHELE G. CENTENO as managing director, SOUWEI BRUNE as senior vice president and CAMERON MARTIN as assistant vice president. The team consists of all former...

Lockton Cos.(BROKER MOVES)
May 1, 2007... Lockton Cos. expanded its New York team with the addition of RAY BEEGLE as senior vice president and property practice leader. Before joining Lockton, Beegle was an executive vice president and Northeast regional marketing officer for Willis...

Hilb Rogal & Hobbs Co.(BROKER MOVES)
May 1, 2007... Hilb Rogal & Hobbs Co. appointed BRAD SICKINGER as senior vice president of its property/casualty practice in Milwaukee. Sickinger spent the past seven years as a property practice leader and senior vice president at Marsh.

Van Gilder Insurance Corp.(BROKER MOVES)
May 1, 2007... Van Gilder Insurance Corp., the largest privately owned insurance brokerage firm based in Denver, has named JOHN CASPER president and chief operating officer. Casper comes to Van Gilder from Travelers, where he served as regional president...

Marsh Inc.(BROKER MOVES)
May 1, 2007... Marsh Inc. has announced the appointment of chief operating officers for three of its core business sectors. PATRICIA HAGEMANN has been named chief operating officer of the Americas; DAVID LESSING, chief operating officer of the U.S. middle...

Willis Re.(BROKER MOVES)
May 1, 2007... Willis Re, the reinsurance arm of global insurance broker Willis Group Holdings, has opened a new branch in Seattle. The office will be managed by DOUG MAY, who has been appointed as executive vice president. Prior to joining Willis, May served...

Aon Corp.(BROKER MOVES)
May 1, 2007... Aon Consulting, the human capital consulting organization of Aon Corp., has announced two new hires in its Atlanta office. JULIE NORVILLE is a senior vice president in the health and benefits practice. She most recently was a disability...

A grassroots movement.(WORKERS' COMP)
May 1, 2007... A coalition of advocates to transform workers' compensation and disability management is sprouting up across the country. It is now active in 10 states. If you seriously want workers' comp to serve employee and employer better, check this out....

The constant battle.(ROGER ON RISK)
May 1, 2007... My first real experience of insurance happened in my early 20s. I drove a car--attempted, I should say, to drive a car--from London to southern Greece and back. It was a tiny sports ear, there was a blonde, and she brought a giant teddy bear...

Let sleeping dogs lie.(BROKERAGE)
May 1, 2007... The Washington Post's renowned satirical columnist Art Buchwald passed away in January. He was 81. A Pulitzer Prize winner, he regularly took humorous jabs at politicians and assorted other targets, including the insurance business. He was...

Selling your genius.(RISK MANAGEMENT)
May 1, 2007... In the 20th century, mankind became enamored of technical solutions to life's problems. Many of the advances that improve our work and personal lives--telephones, computers, suspension bridges and medicines, and even improved processes such as...

You're fired!(THE LAW)
May 1, 2007... Your local chief federal prosecutor--known as a United States attorney--is a man or woman with enormous power over the lives of Americans. Normally, these high ranking federal lawyers operate below the radar level and out of the news. The...

Greenberg: musings on the buy side: Maurice "Hank" Greenberg, former CEO of AIG, says that for risk managers who just remain insurance buyers, the future is bleak. But for those who grow into real professionals, the opportunities are boundless.(Cover story)
May 1, 2007... On April 3, Risk & Insurance[R] editors Jack Roberts and Cyril Tuohy traveled to New York to interview Maurice "Hank" Greenberg at the Park Avenue offices of his company, C.V. Starr & Co. Inc. In a spacious, sunlit corner of the 17th...

Untangling the mysteries of employee performance: the eventual goal of catching employees before their breaking point is on hiatus while disability managers grapple with the ever-changing field of behavioral risk management.(IN-DEPTH RISK & INSURANCE: Second in a Three-Part Series)
May 1, 2007... Summary * Disability managers are fully occupied with returning employees to work and aren't able to intervene before an employee currently at work "flips." * A "coach" can be helpful to mitigate an employee's anxiety as a...

Taken for granted: asking a lot of "what-ifs" can hurt one's head, but that's all in a day's work for risk managers. Or should be.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Most of us, not just the risk management junkies in our midst, understand the mental calculus necessary to evaluate how much risk will yield a given amount of reward. Take going to war, for instance. It doesn't require a genius to figure out...

Shredding apart high-value targets: a Northeast hurricane could drown New York City and parts of New England, and sink a few insurance and reinsurance carriers as well, with losses as high as $100 billion.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Summary * A Northeast hurricane is one of the most overlooked risks because people have a short memory of past storms, and fail to appreciate the possibility and impact of a future event. * When it comes to Northeast hurricanes, the...

Unaccustomed to foreign customs: globalization means more companies are doing business abroad, but it also thrusts upon a risk manager a world to which she is unfamiliar.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Summary * Traveling abroad constitutes an overlooked risk for a corporation because of an ever-present dangerous international climate, lack of security planning and differences in insurance coverage. * A gift might be perceived as a...

Stiffed--by an everyday breeze: a few nails make a world of difference in keeping a roof secure and avoiding catastrophe-like property losses in average winds.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Summary * Winds are one of the most overlooked risks for commercial property owners because shoddy workmanship makes property losses appear unavoidable, even in a stiff breeze. * Because the problem is not with the building codes...

Think twice before striking back; discrimination suits aren't likely to take an employer under, but retaliation against complaining employees is a risk that's often overlooked.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Summary * Retaliation is one of the most overlooked risks because courts have broadened the definition of retaliating actions, and jurors tend to side with the disgruntled employee. * Employers should pay much closer attention to...

122 Ninth Wards? A recent report on levees suggests 122 across the country are in disrepair. And flood risk was already overlooked enough.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Summary * Flood risk is one of the most overlooked risks because many commercial property owners misunderstand its likelihood and impact. * A recent Army Corps of Engineers survey revealed that 122 levees across the country are in poor...

Short circuits of the network: internet crimes are really just another form of old-fashioned theft. But the stakes are higher as data has become a commodity to be traded to the highest bidder.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Summary * Despite the news of data theft, cyberrisks remain among the most overlooked because of access to the quantity of information out there and the ease with which companies can be taken offline. * In the past, IT has successfully...

Rain on your parade? Yes, please: sprinklers may be a fixture in U.S. building codes, but companies are overlooking the best defense against fire losses in their newly acquired overseas locations.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Summary * Unsprinklered locations are one of the most overlooked risks because North American companies simply aren't aware of the exponential increase in exposures that result from operating a building overseas without sprinklers. *...

Stewardship betrayed: the most overlooked risk in America is when the very managers entrusted with the stewardship of the government or a corporation, whether by hubris or intent, come up short.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Summary * "Risk management risk" is a contender as one of the most overlooked risks as those entrusted with the stewardship of institutions can't always be counted on to execute their responsibilities. * Even the most trusted and...

Odorless vapors: an insidious intruder: the foul smell of vapor intrusion is wafting through the environmental insurance world. Federal regulators say the problem affects 439,000 sites nationwide.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Summary * Vapor intrusion is one of the most overlooked risks because experts now know that the previous conceptions on environmental spills are wrong--less of a chemical can be more toxic, spread farther and cause more of a problem. ...

The invisible contingency: the most insidious risk isn't one lurking in the company's backyard, but is instead an invisible disruptive ripple across town or over the horizon. That makes contingent business interruption one of the most frequently overlooked risks.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Summary * Contingent business interruption is one of the most overlooked risks as businesses fail to plan for every contingency or have enough coverage. * Business interruption provides coverage only if a peril that disrupted a...

Risk oddities: the likelihood that any of these risks would come to pass is remote enough for even the most obscure of Lloyd's underwriters to venture a pass.(SPECIAL REPORT: OVERLOOKED RISKS)
May 1, 2007... Summary * Standouts of the oddball risks in the manmade world: Democrats * Standouts of the oddball risks in the natural world: massive lightning strikes ********** Perhaps we can forgive the insurance industry for at times...

You can always go brown-town: brownfields could play a role in the revitalization of New Orleans, and not for the reasons you think.(ENVIRONMENTAL)
May 1, 2007... New Orleans has more potential brownfields than ever before, and the redevelopment of these underutilized environmental question marks could play an important role in how that city is reborn. But not for the reasons you might think. No,...

Hot topic: the climate changes (for capital): climate change is no longer a what-if question for insurers.(RIMS 2007)
May 1, 2007... In early February of this year, the International Panel on Climate Change, in the process of completing its Fourth Assessment Report, or the 4AR, released its finalized Working Group 1 Report on climate change. The complete 4AR report will be...

ERM sustaining the advantage: on tap: risk managers from Cisco Systems, Becton Dickinson and Coca-Cola reveal how to manage risk in a value-added way.(RIMS 2007)
May 1, 2007... A key topic at RIMS 2007 will be the value of enterprise risk management. Session 304 promises a lineup of industry leaders who will tackle this challenging topic. Like all business activities, ERM must demonstrate that it has value to the...

Loss control: leadership vs. disasters: plan, recruit, communicate and use positive reinforcement to ensure your crisis management plan works.(RIMS 2007)
May 1, 2007... The best crisis plan in the world is useless if it sits on a shelf. Your people must be ready to put it into action on a moment's notice. That takes communication and leadership. Leadership in crisis management starts with the CEO and...

Scrap the checklist: the "checklist" approach to validating a risk management program is not enough, Managers need instead to turn to enterprise risk management techniques to improve their risk management programs.(RISK MANAGEMENT)
May 1, 2007... Summary * A "checklist" approach to risk management has no value. Scrap it. * The more efficient enterprise risk management approach allows risk managers to define strengths and weaknesses of a company's practices. * Risk...

Due diligence makes the leap: silos to ERM: the mergers-and-acquisitions market is at historic heights of activity, but that also means more is on the line if an M&A fails. Enterprise risk management can come to the rescue during the due-diligence process to protect success.(RISK MANAGEMENT)
May 1, 2007... Summary * Mergers-and-acquisitions due diligence is often disjointed and siloed. * Enterprise risk management principles could revolutionize the M&A due-diligence process and protect capital, returns and long-term success. * In...

Surviving the end of world: for insurers, one lesson of recent catastrophes is to respect the return periods. But should low-probability, high-severity disasters that might never happen really concern risk management? The true lesson could be to lay off the probabilities altogether.(CATASTROPHE)
May 1, 2007... Summary * Insurers had been trained to worry about the 100- and 250-year catastrophes. Now ratings agencies require they know their full exposure to more improbable disasters. * Insurers appear to be up to the task, although some...

Smart catches up with thin and rich: proponents of so-called "smart client" applications claim they're more efficient because they bring the objectives of claims and risk management closer.(TECHNOLOGY)
May 1, 2007... Summary * "Rich client" or "fat client" applications, though robust and secure, were difficult and expensive to deploy. * "Thin client" applications, usually browser-based, were prone to security flaws and lacked the ability to provide...

A Cypriot game: risk mgmt. and shifting cargo: for liability coverage to third parties, shipping manager Arthur R.T. McWhinnie turns to the P&I clubs, the remote descendants of the small hull insurance clubs created by British shipowners in the 18th century.(PROFILE)
May 1, 2007... As a top executive of a Cyprus-based shipping company that manages or owns hundreds of vessels that constantly crisscross the globe carrying everything from volatile gas to toys, Arthur R.T. McWhinnie knows something about managing global...

Everybody into the pool: supporters of pooling mechanisms to buy insurance say they've been one of the insurance industry's big success stories.(INDUSTRY RISK REPORT: POOLS)
May 1, 2007... Summary * Pools come in different shapes, sizes and concepts, but all offer a method for spreading the members' risk. * In New York, a risk-sharing pool made up of public colleges and universities is closely following new workers' comp...

Sedgwick Claims Management Services Inc.(EXECUTIVE MOVES)
May 1, 2007... Sedgwick Claims Management Services Inc. announced the appointment of PATRICK L. FUNCK as executive vice president, chief information officer, of the North American claims and productivity management services organization. Previously, he was...

Sedgwick.(EXECUTIVE MOVES)
May 1, 2007... Sedgwick also appointed TIM C. OVER as senior vice president and director of its newly formed national healthcare professional-liability claims services practice, Sedgwick Caronia. Over was previously at Cambridge Integrated Services Group...

Max Re Capital Ltd.(EXECUTIVE MOVES)
May 1, 2007... Max Re Capital Ltd. has announced the promotion of JOE ROBERTS, former senior vice president and controller, Joe Roberts to executive vice president and chief financial officer. Roberts succeeds KEITH S. HYNES, who retired as CFO effective...

Max Re.(EXECUTIVE MOVES)
May 1, 2007... Max Re has also announced the appointment of N. JAMES TEES, previously the company's senior vice president, treasurer and secretary, to executive vice president and chief risk officer. The company's former senior vice president and general...

The National League of Cities' Mutual Insurance Corp.(EXECUTIVE MOVES)
May 1, 2007... The National League of Cities' Mutual Insurance Corp., a member-owned reinsurance company supporting individual state risk insurance pools for municipal governments, has appointed WILLIAM B. HEBERTON JR. as president and CEO. Heberton was...

The Property Casualty Insurers Association of America.(EXECUTIVE MOVES)
May 1, 2007... The Property Casualty Insurers Association of America has appointed CLISTON BROWN as director of federal public affairs. Brown spent the last three years as director of public affairs for the Independent Insurance Agents and Brokers of America....

The Farmers Insurance Group of Cos.(EXECUTIVE MOVES)
May 1, 2007... The Farmers Insurance Group of Cos. has announced a number of senior appointments within the companies. F. ROBERT WOUDSTRA has been appointed president and chief operating officer of Farmers Group Inc. KEITHA T. SCHOFIELD, executive vice...

AIR Worldwide Corp.(EXECUTIVE MOVES)
May 1, 2007... Risk modeling company AIR Worldwide Corp. appointed JOHN W. ROLLINS to the position of vice president. Rollins will provide catastrophe-risk-related actuarial consulting services to AIRs clients. He is the former chief actuary and director of...

Health Care.(TECHNOLOGY)
May 1, 2007... Premier Healthcare Exchange Inc. announced the upcoming launch of its Xpert Connect, a fully integrated suite of in-house tools and services for health-care cost containment. Xpert Connect can analyze more than 90 percent of all claims...

Nanotechnology.(TECHNOLOGY)
May 1, 2007... The Innovation Society Ltd. of St. Gallen, Switzerland, and TUV SLID of Munich, Germany, have developed a system to manage nanotechnology risks that could be available for use later this year. Called the Cenarios system, it could ensure that...

Modeling.(TECHNOLOGY)
May 1, 2007... Modeling firm Eqecat Inc. has unveiled its Offshore Energy Model to help insurers manage and quantify their exposure in the offshore energy market. The model is expected to be released in the second quarter of 2007. It covers a range of risk in...

Redevelopment.(INSURANCE)
May 1, 2007... Lexington Insurance Co., a member company of American International Group Inc., released its historic rehabilitation tax credit insurance, a new coverage meant to protect owners and developers of commercial properties who qualify for federal...

D&O.(INSURANCE)
May 1, 2007... XL Insurance Ltd. announced that it is enhancing its existing directors' and officers' insurance policy tailored for U.S. publicly traded companies with worldwide exposures. The revised policy is called A PLUS D&O Advantage, and provides...

Tow trucks.(INSURANCE)
May 1, 2007... Swiss Re's Commercial Insurance and BISYS have launched an insurance program for tow-truck operators. The policies will be underwritten by Westport Insurance Corp., a Swiss Re company, and designed for professional towers, including those with...

Catastrophe.(INSURANCE)
May 1, 2007... Guy Carpenter & Co. LLC, part of the Marsh & McLennan Cos., released its SelectCat product. Index-based, the product could provide reinsurers with capacity, flexibility and rational pricing to manage property catastrophe risks. Similar in...

Municipalities.(INSURANCE)
May 1, 2007... The Hartford Steam Boiler Inspection and Insurance Co. released its new tax interruption coverage that could help towns, school districts and other municipalities recover tax revenue lost when an insured accident causes physical damage to...

Upcoming events.(Calendar)
May 1, 2007... 14-16 Self-Insured Workers' Comp The Self-Insurance Institute of Americas' ninth annual Self-Insured Worker's Compensation Executive Forum will focus on topics such as excess insurance and risk management strategies for workers' comp...

Small is bountiful ... and well received: perhaps one of Vermont's best-kept secrets is that it's home to a lot more captives writing less than $1 million in annual premium than it is to those writing more than $500 million in premium.(Interview)(Cover story)
May 1, 2007... Summary * Vermont is home to 150 captives writing less than $1 million in annual premium. * AIG and its related companies are No. 1 when it comes to fronting, * More and more independent captive managers are responsible for...