Risk & Insurance articles from May 2008

Risk & Insurance archives from May 2008

Risks not transferred.
May 1, 2008... From the consumer-directed health plan vendors came the rosy surveys fast and furious: CDHPs were the most promising cost-control measures since the advent of health maintenance organizations in the early 1990s. Proponents--OK, let's call...

Accounting for all outcomes.(REINSURANCE)
May 1, 2008... It is no longer enough just to assess and manage the risks of an enterprise's strategic endeavors. Managers must also take into account the range of outcomes: the knowns, known unknowns and unknown unknowns. Changes at the very top of...

How to hire.(IN-DEPTH SERIES)
May 1, 2008... The right risk and insurance degree from a top national university can help a green professional land his or her first big job at an insurance company. But it is not enough, employers say. Insurers are looking for a variety of qualities in...

Campus recruiting 101.(IN-DEPTH SERIES)
May 1, 2008... Some insurance industry employers say they are getting out to college campuses to recruit, forming relationships with the college risk management programs, and expanding their summer internship and early career development programs. To...

ESI trends report.(E-DISCOVERY)
May 1, 2008... Electronically stored information is at the heart of corporations' e-discovery danger if and when they become embroiled in litigation, regulatory investigations or any other such proceeding. The issue could be too big for in-house counsel to...

Red mornings, sailor's warning.(PRIVATE EQUITY)
May 1, 2008... Talk with professionals who have knowledge of the world of private-equity insurance, and there is a dynamic to their talk that resembles a dialogue with manners. To read the rest of this piece, please visit us on the Web at www....

PCI and security standards.(RETAIL INDUSTRY)
May 1, 2008... As you will see in our Industry Risk Report on retail, the payment card industry, or PCI, has a lot to say about how the retail sector manages its information-technology and consumer-privacy exposures. At the heart of this effort is the PCI...

Soft market accelerates.(NEWS & NOTES)
May 1, 2008... The first quarter of 2008 saw the largest quarterly drop in commercial-lines insurance premiums since 2005, according to the RIMS Benchmark Survey, produced by Advisen. It found D&O premium fell the most in the first quarter, 19 percent....

IRM certificate launched.(NEWS & NOTES)
May 1, 2008... London-based industry education organization, the Institute of Risk Management, has launched its new international certificate in risk management as of April 1. The work for the new designation was designed to be widely accessible, and the IRM...

AIG reorganizes.(NEWS & NOTES)
May 1, 2008... AIG has renamed its Domestic General Insurance operations the MG Property Casualty Group, as part of a reorganization. The group will include the MG Domestic Brokerage Group companies, which will now be known as AIG Commercial Insurance Group,...

Brazil opens up.(NEWS & NOTES)
May 1, 2008... XL Re, the reinsurance unit of Bermuda-based XL Capital Ltd., has announced plans to serve the Brazil market as both a local and admitted reinsurer. Subject to regulatory approval, XL Re's operations will be based in Rio de Janeiro with an...

ERM reaches India.(NEWS & NOTES)
May 1, 2008... Indian firms are in the very early stages of enterprise risk management, according to research from The Conference Board Governance Center. The New York-based Conference Board, which operates an office in New Delhi, examined risk management...

Hull claims costs up.(NEWS & NOTES)
May 1, 2008... The average cost of hull claims has risen 86 percent in the last five years to $386,000 in 2007, and a marine insurance association is urging insurers to address the implementation of risk management tools with shipowners. Large claims in...

RIMS backs OFC.(NEWS & NOTES)
May 1, 2008... RIMS, a long-time supporter of an optional federal charter for insurers, has renewed OFC backing in the wake of the U.S. Treasury Department's call for financial services reform. --Compiled by staff from news and wire reports.

Quote of the month.(UPFRONT)
May 1, 2008... "We've seen reputations rise and fall on mistakes made in litigation when it comes to discovering e-mail.--MICHELE LANG, DIRECTOR OF LEGAL TECHNOLOGIS, KROLL ONTRACK

Dirty deeds done dirt cheap: disgruntled employees looking to take a "cheap" shot at a corporate or governmental enemy have plenty of opportunity.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
May 1, 2008... [ILLUSTRATION OMITTED] Launching a botnet attack from a foreign country is cheap and in many cases you can almost get away with it, according to cyberattack expert. Take the April 26, 2007, attack that crippled Internet access in the...

ERM programs lacking in clarity: simplifying risk reporting a major challenge for chief risk officers, survey finds.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
May 1, 2008... Risks facing U.S. insurance carriers have always been difficult to assess. Now comes word that enterprise risk management, the framework used by chief risk officers to understand those exposures, leaves many a board member confused. ...

Quote of the month.(BROKERS: People, Ideas and Trends shaping the Brokerage Community)
May 1, 2008... "What you end up doing is solve problems, not seel insurance.--VERONICA BENZINGER, SENIOR VICE PRESIDENT IN AON'S ENVIRONMENTAL SERVICES GROUP

Seagoing goddess: Aon environmental broker Veronica Benzinger spends her spare time helping to save the Earth's troubled ecosystems.(BROKERS: People, Ideas and Trends shaping the Brokerage Community)
May 1, 2008... Veronica Benzinger has always been near the water. Her father was a scuba diver and restored sailboats while raising his family on Long Island, N.Y. She turned to those fond childhood memories when the events of Sept. 11, 2001, forced her...

Truth in advertising?(WORKERS' COMP)
May 1, 2008... It's time for truth in advertising about how insurers recruit doctors into provider networks. Last October CIGNA, the health insurer, signed a settlement agreement with Andrew Cuomo, New York state's attorney general, about how CIGNA ranked...

Marveling at losing a billion.(ROGER ON RISK)
May 1, 2008... Watching Security Capital Associates self-destruct earlier this year was an object lesson. In ease you missed it, here's the story. At the end of 2006, the company had $1.366 billion of shareholders' equity. A year later, 97 percent of it was...

Duperreault to the rescue.(BROKERAGE)
May 1, 2008... As the agent-broker world well knows, veteran insurance executive Brian Duperreault is the new CEO at the helm of the troubled Marsh & McLennan Companies, to the delight of analysts who were critical of his predecessor, Michael Cherkasky, who...

Killing the 'rational man'.(RISK MANAGEMENT)
May 1, 2008... When trying to untangle the eases of past disasters, have you ever noticed that somewhere in the chain of events, someone made an irrational decision? Most risk managers will attest that people make bad, silly and crazy decisions from time to...

The Sheriffs trail.(THE LAW)
May 1, 2008... What was Eliot Spitzer thinking? How could he think he could get away with it? I'm not talking about whatever he was doing in his hotel room. They say people get away with that all the time. I'm talking about the money. How could the "Sheriff...

Master Sleuths: litigators and consultants now search through gigabytes of data instead of boxes of paper files. Finding, collecting and reviewing all that digital information, however, is a very costly endeavor.(Cover story)
May 1, 2008... SUMMARY * Brokers and carders are offering more electronic discovery services to clients, a role traditionally done by lawyers. * Discovery can sometimes eat up as much as 90 percent of total litigation costs. * Insurance carders...

Replenishing the talent pool: an expected brain drain in risk management and interest in the field outside of financial services have forced carriers and schools to beef up the talent pipeline.(IN-DEPTH)(Company overview)
May 1, 2008... [ILLUSTRATION OMITTED] Summary * The job market for insurance and risk management graduates is wide open. * Carriers are more aggressive at recruiting candidates because of the expected talent drain due to the retirement of baby...

Slide rules: prices are sliding in reinsurance, though the trend varies by class and by location.(SPECIAL REPORT: ALTERNATIVE RISK)
May 1, 2008... Summary * Reinsurers in 2007 improved the strength of their balance sheets. * U.S.-backed reinsurers are being relatively aggressive in their underwriting standards, while U.K.-based reinsurers are more likely to pass on the business...

Private equity risks emerge in sharper detail: more class-action lawsuits in the financial sector are expanding the risks to carriers in the business of underwriting directors' and officers' in the world of private equity. So far, insurers are still finding this market a worthwhile gamble.(SPECIAL REPORT: ALTERNATIVE RISK)
May 1, 2008... Summary * Historically, private-equity directors' and officers' insurance has been very profitable for insurers because their clients tend to be financially sophisticated with a high risk tolerance. * More and more carders are getting...

Meaning to intrude: thieves break into the computer networks of online retailers and abscond with thousands of credit card numbers. Carriers respond by choosing to cover only the parts of networks that comply with security standards.(INDUSTRY RISK REPORT: RETAIL)
May 1, 2008... Summary * Data breaches have exposed online retailers to tens of millions of dollars in liability. * Carriers are responding by choosing to cover only parts of networks that comply with security standards. * Data theft from...

Industry risk report: Internet retail.
May 1, 2008... INDUSTRY RISK REPORT INTERNET RETAIL The ages-old challenge of mitigating risks to the supply chain remains paramount for retailers, whether they rely on the Internet-only channel or whether they are traditional brick-and-mortar...

Directory: risk management and employee benefits software.(Directory)
May 1, 2008... DIRECTORY RISK MANAGEMENT AND EMPLOYEE BENEFITS SOFTWARE Below are paid listings of third-parry administrators (TPAs) according to the types of claims they handle: health care; disability; workers' comp; managed care automation;...

Strategic Risk Solutions (Cayman) Ltd.(EXECUTIVE MOVES)
May 1, 2008... SEAMUS TIVNAN was named director, Strategic Risk Solutions (Cayman) Ltd. SRS, a provider of captive management and consulting services, hired Tivnan to lead the Cayman office along with co-directors Wayne Cowan and Ron Sulisz. Prior to joining...

XL Capital Ltd.(EXECUTIVE MOVES)
May 1, 2008... [ILLUSTRATION OMITTED] MICHAEL S. MCGAVICK was named CEO of XL Capital Ltd. McGavick will replace Brian O'Hara, who announced his retirement after having been CEO for the past 13 years. O'Hara is currently acting chairman of the board of...

Kroll Inc.(EXECUTIVE MOVES)
May 1, 2008... [ILLUSTRATION OMITTED] BEN ALLEN was named president and CEO of Kroll Inc., the risk consulting and technology group of Marsh & McLennan Cos. Allen had been chief operating officer of Kroll in 2007 and president of Kroll Ontrack, its legal...

Zurich North America Commercial.(EXECUTIVE MOVES)
May 1, 2008... [ILLUSTRATION OMITTED] VINCENT TIZZIO was appointed president of the new business unit of Zurich North America Commercial that will focus on solutions for commercial customers who find themselves between the traditional categories of small...

Applied Systems Inc.(EXECUTIVE MOVES)
May 1, 2008... [ILLUSTRATION OMITTED] MARK LAYDEN was appointed chief operating officer at technology firm Applied Systems Inc., which develops and supports management systems for insurance brokers and agents. Layden will oversee the firm's technology...

Fund Insurance Co.(EXECUTIVE MOVES)
May 1, 2008... [ILLUSTRATION OMITTED] MICHAEL LAROCCO was named president and CEO of Fireman's Fund Insurance Co. He reports to Chuck Kavitsky, president and CEO of Allianz of America, parent of Fireman's Fund. LaRocco last served as president and chief...

The Council of Insurance Agents & Brokers.(EXECUTIVE MOVES)
May 1, 2008... [ILLUSTRATION OMITTED] GEORGE A. STEADMAN 3RD was named the 2008 chairman of The Council of Insurance Agents & Brokers. He is the president and COO of Rutherfoord, a commercial insurance broker he joined in 1986. Steadman was elected...

Hiscox USA.(EXECUTIVE MOVES)
May 1, 2008... Hiscox USA named LISA ZANOTELLI and DEREK ROGERS as two new kidnap and ransom insurance experts to offer the coverage to U.S. customers. They will also serve as liaisons with Control Risks, an exclusive Hiseox partner that specializes in risk...

Aon Consulting Worldwide.(EXECUTIVE MOVES)
May 1, 2008... [ILLUSTRATION OMITTED] Aon Consulting Worldwide announced the addition of USA CALDWELL as chief operations officer for its U.S. division. In the new position, Caldwell will be responsible for overseeing major U.S. corporate initiatives and...

Allied North America: Alejandra Evans.(EXECUTIVE MOVES)
May 1, 2008... ALEJANDRA EVANS was appointed executive vice president of business development for Allied North America, the independent insurance and surety brokerage firm that serves the construction industry. Evans will be responsible for growing the firm's...

Baloise.(EXECUTIVE MOVES)
May 1, 2008... MARTIN STROBEL was named the new CEO of Swiss insurance company Baloise. Strobel currently leads Baloise Switzerland, but was promoted to help guide the company during the expected difficulties resulting from a failed merger with German mutual...

Allied North America: Thomas Schmidt.(EXECUTIVE MOVES)
May 1, 2008... [ILLUSTRATION OMITTED] THOMAS SCHMIDT was appointed vice president of emerging technologies for Allied North America. Schmidt has more than 20 years experience as a software product developer across consumer, medical and military...

Upcoming events.(Calendar)
May 1, 2008... MAY 12-14 Self-Insured Worker's Comp The Self-Insurance Institute of America's 10th annual Self-Insured Workers' Compensation Executive Forum will be held at the Newport Beach Marriott Hotel and Spa in Newport Beach, Ca. For...

Okla. gun law: keep it: people carry guns with them every day for sound economic reasons.(POINT)
May 1, 2008... It's amazing sometimes the lengths we will go to in this culture to wrestle over points that in themselves really aren't the point. Take for example the wrangling that is going on over the state of Oklahoma's law banning employers from...

Okla. gun law is not OK: state laws usurp private corporations' responsibilities to provide a safe workplace.(COUNTERPOINT)
May 1, 2008... Amendments to Oklahoma's 1971 gun law represent a slug to the gut of corporations whose duty it is to provide a safe place to work under occupational safety and health rules. What that feels like, only the victims * of workplace violence know...