Risk & Insurance articles from May 2009

Risk & Insurance archives from May 2009

Calif. asbestos ruling.(NEWS & NOTES)
May 1, 2009... The California Court of Appeals has shot down the notion that manufacturers bear the legal burden to issue warnings about materials made by third parties that contain asbestos. In Taylor v. Crane, a plaintiff sought remuneration from a...

Hong Kong as a domicile.(NEWS & NOTES)
May 1, 2009... The Self-Insurance Institute of America is hosting an upcoming Tour of China to explore the possibilities of Hong Kong as a captive domicile. According to a recent study by the Business Federation of Hong Kong, Hong Kong could prove to be...

Break dance.(NEWS & NOTES)
May 1, 2009... With the spring thaw now melting the icy winter that envelopes the beauty of Vermont every year, it's worth taking a peek under the cloud cover of the Green Mountain state. This year, there's plenty of money moving around. Tucked away in...

Ironhealth drops down.(HEALTHCARE)
May 1, 2009... It's only been a year or so since Ironhealth, the division of Bermuda-based Ironshore, was formed, but executives with the company say they are already finding interest in a suite of niche dropdown coverages in the highly competitive healthcare...

When outsourcing Healthcare claims editing is called for.(HEALTHCARE)
May 1, 2009... Claims editing is an important and extensive process that involves checking healthcare claims for up-coding, bundling and unbundling of codes, and duplicate entries. To read the rest of this piece, please visit us on the Web at www....

The Battle of PBM analytics (Part 2).(HEALTHCARE)
May 1, 2009... With difficult economic times upon us, benefits plan sponsors and plan members have become strange bedfellows in their desire to cut pharmacy benefits costs without sacrificing coverage. The good news is that there are dollars to save, hidden...

Use it or lose it: end-to-end encryption.(TECHNOLOGY)
May 1, 2009... Robert Carr, the CEO of Heartland Payment Systems, has a message for corporate leaders concerned about data breaches: The time is now for the widespread adoption of end-to-end encryption as the next line of defense. To read the rest of this...

Damage control: covering your real estate assets (Part 2).(CLAIMS)
May 1, 2009... Has the commercial real estate industry learned its lesson regarding property insurance and insurable value? If not, policyholders could be at a disadvantage come claims time. To read the rest of this piece from Deloitte, please visit us on...

Are you a risk innovator?(RISK INNOVATOR)
May 1, 2009... The Risk Innovator Award recognizes excellence in risk management. We will identify key individuals who see risk differently and resolve risk-related problems in a unique or innovative way. Qualifying individuals view risk not only as a threat,...

Airlines to pay more: carriers to increase prices for hull and liability coverage this year, according to Aon report.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
May 1, 2009... According to an annual aviation market report issued by London-based Aon Aviation & Aerospace, carriers that underwrote airline risks in 2007 and 2008 lost money and will have to increase premiums in 2009. Average hull and liability premiums...

Catastrophes cost insurers worldwide $52.7b in 2008: rising price trends for catastrophe coverage expected to affect other lines.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
May 1, 2009... [ILLUSTRATION OMITTED] Last year was an expensive year for insurers, who paid out an estimated $52.7 billion in property claims for natural and man-made disasters, according to a new report. Natural disasters cost the industry $44.7...

Stick to your knitting: banks used to do what they do well. There is no reason why they can't remember how to do that.(BROKERS: People, Ideas and Trends shaping the Brokerage Community)
May 1, 2009... [ILLUSTRATION OMITTED] There are times, from an underwriting perspective, when a company might want to blend into the woodwork. In the financial sector at least, this is definitely not one of those times. That's just some of the wisdom...

Marsh Inc.(BROKER MOVES)
May 1, 2009... [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] Marsh Inc. announced three executive moves within its U.S. operations. JACK BUTCHER, recently named CEO of Marsh & McLennan Agency, was appointed U.S. sales and...

Children's Hospital.(BROKER MOVES)
May 1, 2009... WILLIAM N. LINDSAY III was named to the board of directors of the Children's Hospital in Denver, effective Apr. 1. Lindsay is president of Lockton Benefits Group and leads the benefits consulting practice of the brokerage's Denver office. He is...

Fort Wayne, Ind.(BROKER MOVES)
May 1, 2009... CLAY JENNINGS was appointed to the position of president of the Fort Wayne, Ind., office of private brokerage firm Hylant Group. Under his leadership, the office is expected to pursue growth in employee benefits, wealth management and personal...

Glencairn Energy.(BROKER MOVES)
May 1, 2009... TONY PICKERING joined Glencairn Energy, part of the wholesale broker Faber & Dumas. His new role will be as deputy chairman, effective immediately. Picketing co-founded Jenner Fenton Slate Ltd., an insurance and reinsurance intermediary...

Willis Facultative.(BROKER MOVES)
May 1, 2009... MATTHEW KEEPING will lead the new Willis Facultative unit as chief financial officer. The new unit is a global consolidation of individual facultative insurance units within Willis and Willis Re.

Willis Facultative International.(BROKER MOVES)
May 1, 2009... GIANMARCO TOSTI will report to Keeping as the new managing director of Willis Facultative International and will be responsible for business development outside of the United States. Also joining the team will be RICH MACRANE, as managing...

Avon.(BROKER MOVES)
May 1, 2009... Avon, Conn.-based managing general agent Target Insurance Services announced that SCOTT UMSTOT joined the company as senior production underwriter. Umstot comes to Target by way of Darwin Professional Underwriters, where he handled the...

It's 'the insurance,' stupid.(ROGER ON RISK)
May 1, 2009... I rented a ear in London a couple of weeks ago, at the second attempt. My initial efforts saw me ejected from the rental office without a vehicle. I didn't know that, to rent a ear in Britain, you must present all the usual documents, plus...

A brutal interpretation.(WORKERS' COMP)
May 1, 2009... Saad Taha came into this world on Nov. 2, 1951. Born in Iraq, he married in 1990 and fathered a son. With the equivalent of a high school degree, Taha held down a relatively good job as a chauffeur. Then the Americans invaded the country in...

Diffusing balance sheet bombs.(TECHNOLOGY)
May 1, 2009... Ever since the ancient mariners set sail on the wine dark seas, we've tried to make sense out of information that could give us an advance warning of impending storms or other danger. Without the technology we have today, people often had...

Hitchhiker's guide to the planet.(RISK MANAGEMENT)
May 1, 2009... In the early nineties, I found myself second-in-command at the Environmental Management Training Centre in Poland. The U.S. Environmental Protection Agency sponsored this institute and it was spearheaded by none other than former Vice President...

Accountability and ERM.(RISK INNOVATION)
May 1, 2009... The debate rages on about who should own enterprise risk management (ERM). Well I'd like to suggest that this obsessive focus misses the point and risks failure of any plan to manage risk well in any enterprise. Simply put, ownership should...

Hard market in hiding: the slump affecting the property/casualty cycle has experts wondering when and where the rate hikes will show up in the industry's top and bottom lines.
May 1, 2009... [ILLUSTRATION OMITTED] summary * Rising rates and declining exposures may not turn up in the bottom lines, * Reserve releases are not going to be able to keep combined ratios low. * The hard market will hit the industry in...

All for one, one for all: Aon's eSolutions unit successfully crosses over into related markets and stakes its future on being a one-stop shop.(TECHNOLOGY)
May 1, 2009... [ILLUSTRATION OMITTED] summary * Aon's eSolutions unit in 2008 finished integrating Valley Oak Systems. * eSolutions is an example of a company that has branched out into other markets. * The idea is to build a one-stop shop...

Rate climbs: for commercial trucking fleet risk managers looking to renew this year, many are likely to see the soft market turn into modest price increases.(FLEET)
May 1, 2009... [ILLUSTRATION OMITTED] summary * Buyers in the trucking sector can expect slight rate increases this year. * Insurance carriers can't raise rates too much due to the recessionary pinch. * Buyers insured by opportunistic...

Healthcare fixes and fixations: the latest debate on reform is more reasoned, but with far more at stake.
May 1, 2009... [ILLUSTRATION OMITTED] Fear of the unknown was among the factors that sank healthcare reform in the 1990s and ushered in the era of managed care. Fifteen years later, the motivating factor is fear of the known. Companies, hit by...

Bonding with a reliable market: could the catastrophe bond market be on the verge of something big, now that it survived the financial crisis and the property-catastrophe reinsurance market is tight?(SPECIAL REPORT: ALTERNATIVE RISK)
May 1, 2009... [ILLUSTRATION OMITTED] summary * Four catastrophe bonds ran into trouble with the bankruptcy of counterparty Lehman Brothers. * With catastrophe bonds now priced higher, issuances may be smaller and fewer in 2009. * Still,...

Sealing the envelope: catastrophe modeling companies now hire armies of actuaries, statisticians and software engineers to help clients predict the scale of potential losses.(SPECIAL REPORT: ALTERNATIVE RISK)
May 1, 2009... [ILLUSTRATION OMITTED] There was a time when catastrophe losses were derived from simple back-of-the envelope calculations. There was a time when insurance companies relied solely on 19th century Sanborn maps to assess values. ...

Engineering an end to classic risk analysis: seeking the consultation of structural engineers is in vogue for corporate risk managers who want to assess catastrophe exposure at key properties.(SPECIAL REPORT: ALTERNATIVE RISK)
May 1, 2009... [ILLUSTRATION OMITTED] A corporation is eyeing a project in the Gulf of Mexico. It's a large project, and sensitive, so we'll let you guess which industry is involved and imagine the zeroes cramming in behind the dollar sign. With an...

Price hike for surplus lines: loss ratios to blame, expert says, as carriers look to boost revenue from the underwriting side of the ledger.(INDUSTRY RISK REPORT: MIDDLE MARKET)(Interview)(Financial report)
May 1, 2009... summary * MGA expert sees an opportunity for carriers to return to "more proper pricing" in surplus lines. * The London market is looking to achieve more technological consistency with the United States. * With Jan. 1, 2009,...

Directory.(Technology)(Directory)
May 1, 2009... Below are paid listings of specialty software packages for the insurance companies, risk managers and brokers. This guide is not intended to be a complete directory but is an overview of some of the packages available. Suppliers themselves have...

AIG Bonuses: circumstances justify breaching contracts: contracts were made to be broken, and insurance companies know this very well.(Point)
May 1, 2009... There was much grinding of teeth and yelling out of open windows into the streets in March when executives with AIG said that one of the reasons they intended to pay $165 million in retention payments to members of their financial products...

AIG Bonuses: breaching contracts is dangerous: it would be foolish for AIG executives to return bonuses that were legally and fairly awarded to them.(COUNTERPOINT)
May 1, 2009... AIG executives who take it upon themselves to return their bonuses, rightfully earned or not, would be setting a dangerous precedent. Don't get me wrong, I'm as steamed as the next guy about these fellows, particularly as one London-based AIG...